University of Santo Tomas

Faculty of Civil Law

CIVIL LAW
Pre-week Notes 2017
ACADEMICS COMMITTEE

SECRETARY GENERAL: CAMILLE ANGELICA B. GONZALES

EXECUTIVE COMMITTEE: EMNIE VALERIE B. DURAN, IRVIN L. PALANCA, MARIELLA A.
MARASIGAN, LARA NICOLE T. GONZALES

CIVIL LAW COMMITTEE

COMMITTEE HEAD: KATHERINE ROSE F. KAPUNAN

SUBJECT HEADS: ANNA FRANCHESCA D. DIZON, SHEEN JOSHUA B. BARRIETA, MARY LOUISE P.
LEONARDO, JANE MARIE BIANCA B. CARILLO, PRINCESS ABBIE GREN V. VIRTUSIO, MA. DENISE
JOLYN T. EISMA, JESSER CAPARAS, ALLEN MERCADO, NATASHA SARAH I. MURAD
MEMBERS: RHOSE AZCELLE L. MAGAOAY, ROLANDO S. BASCON, JR., JOHN AL-NAIR SIMONE L.
JUMAMIL, KIM ANGELI P. SOBREPENA, CHRISTINE KAREN L. BUMANLAG, ALYSSA ABIGAEL C. GOMEZ,
JONATHAN SANTOS, ARIANNA LAINE T. SARMIENTO, JOAN ROSS C. EVANGELISTA, ANNE LIZETH R.
VALLARIT, KARIZZA KAMILLE M. CRUZ, JESSAMYN M. DIMALIBOT, BION HENRIK A. PRIOLO

ATTY. KING JAMES CARLO C. HIZON

ATTY. KENNETH JAMES CARLO C. HIZON
ADVISERS
 UST LAW PRE-WEEK NOTES 2017
PART I – GENERAL PRINCIPLES
EFFECT AND APPLICATION OF LAWS
Effectivity of a law will depend on whether or not it has provided
a specific date for its effectivity:
If date is specified – Upon the lapse of the said period following
its complete publication.
If no date is specified – 15-day period, which may either be on the
15th or on the 16th day depending on the language used by the
Congress in fixing the effectivity date of the statute (Rabuya,
2009).
If the law provides for immediate effectivity or upon approval – It
is effective immediately after its complete publication and not
after signing by the President.
If the law is voluminious – Reckoning shall begin from the release
of the last of the series.
Publication is indispensable in every case, but the legislature
may in ‘its discretion provide that the usual fifteen-day period
shall be shortened or extended (Umali v. Estanislao, G.R. No.
104037, May 29, 1992; Tañada v. Tuvera, G.R. No. L-63915,
December 29, 1986).
Administrative rules and regulations must also be published if
their purpose is to enforce or implement existing laws pursuant
also to a valid delegation. Interpretative regulations and those
merely internal in nature, that is, regulating only the personnel
of the administrative agency and not the public, need not be
published (National Electrification Administration v. Gonzaga,
G.R. No. 158761, December 4, 2007).
Conflict of laws
Application of laws
1. Penal laws
GR: Territoriality rule - Penal laws and laws of public security
and safety shall be obligatory upon all who live or sojourn in the
Philippine territory (Art. 14).
XPNs: Philippine penal laws will not apply by virtue of:
a. Treaty stipulations
b. Principles of Public International Law
c. Laws of Preferential Application (e.g. Ambassadors,
Ministers)
d. International agencies enjoying diplomatic immunity
2. Status laws
GR: Nationality rule (Lex Nationali) - Laws relating to:
a. Family rights and duties
b. Status and condition
c. Legal capacity of persons are binding upon citizens of
the Philippines even though living abroad (Art. 15)
(1999, 2003, 2004, 2005, 2009)
XPNs:
a. In case of divorce obtained validly by an alien pursuant
to the rules that governs his country, the Filipino
spouse shall be considered also as divorced (Van Dorn
v. Romillo, Jr., G.R. No. L-68470, October 8, 1985). The
divorce decree must capacitate foreigner to remarry,
otherwise, the Filipino cannot remarry.
Once it is proven however that a party was no longer a
Filipino citizen when he obtained the divorce from his
Filipino spouse, the ruling in Van Dorn would also
apply. Thus, the validity of the divorce will be
determined based on the law of the country of which
he is a citizen at the time the valid divorce is obtained
(Rabuya, 2009).
1
b. Domiciliary rule applies to stateless persons
3. Real statutes – Laws on Property
GR: Lex Rei Sitae – Real property as well as personal property is
subject to the law of the country where it is situated (Art. 16).
(2001, 2002, 2004, 2007, 2009)
XPNS:
a. Succession as to order of succession, amount of
successional rights and intrinsic validity of the
testamentary provisions - governed by national law (in
Philippines) not lex situs
b. Contracts involving real property but do not deal with title
or real rights over the property, the issue being the
contractual rights and liabilities of parties - governed by the
proper law of the contract (lex loci voluntatis or lex loci
intentionis)
c. In contracts where real property is given as security by way
of mortgage to secure a principle contract (i.e. loan) - loan
is governed by the proper law of the contract while the
mortgage is governed by the lex situs
d. While the validity of the transfer of land must be
determined by the lex situs, the validity of the contract to
transfer is determined by the proper law of the contract
4. Law governing extrinsic validity of contracts, wills and
public instruments
GR: Lex loci celebrationis (Art. 17) – forms and solemnities of
contracts, wills and other public instruments shall be governed
by the laws of the country in which they are executed.
XPNs: Philippine law shall apply in the following cases even
though performed abroad:
a. Acts are executed before the diplomatic or consular officials
of the Philippines.
b. Prohibitory laws concerning persons, their acts or property,
and those which have for their object public order, public
policy and good customs (Art. 17).
HUMAN RELATIONS
Abuse of right (2006)
When a right is exercised in a manner which does not conform
to the norms enshrined in Art. 19 and results in damage to
another, a legal wrong is thereby committed for which the
wrongdoer must be held responsible.
Elements
1. There is a legal right or duty;
2. Such duty is exercised in bad faith;
3. It is for the sole intent of prejudicing or injuring another;
4. The absence of good faith is essential to abuse of right
(Elizabeth Diaz v. Georgina Encanto, G.R. No. 171303,
January 20, 2016).
Principle of Damnum Absque Injuria
One who merely exercises one’s rights does no actionable injury
and cannot be held liable for damages. This is premised on the
valid exercise of a right (Amonoy v. Guitierrez, G.R. No. 140420,
February 15, 2001).
The mere fact that the respondents suffered losses does not give
rise to a right to recover damages. To warrant the recovery of
damages, there must be both a right of action for a legal wrong
inflicted by the plaintiff, and damage resulting to the respondent
therefrom (The Orchard Golf & Country Club, Inc. v. Ernesto Yu,
G.R. No. 191033, January 11, 2016).
Article 19, 20 and 21 in the enforcement and sanctions of
abuse of right
 CIVIL LAW

While Art. 19 lays down the rule of conduct for the government
PART II– PERSONS AND FAMILY RELATIONS
of human relations, it does not provide a remedy. Generally, an
action for damages under either Art. 20 or Art. 21 would be
proper. Art. 21 deals with acts contra bonus mores or contrary PERSONS AND PERSONALITY (CIVIL CODE)
to good morals and presupposes loss or injury, material or
otherwise, which one may suffer as a result of such violation. Birth
Under Arts. 19 and 21, the act must be intentional (Rabuya,
2006). Birth determines personality, but the conceived child shall be
considered born for all purposes that are favorable to it,
Furthermore, Article 20 speaks of the general sanction for all provided, it is born later with the conditions specified in Art. 41
other provisions of law which do not especially provide for their (Art. 40). (1999, 2003, 2008)
own sanction. Article 21 on the other hand, speaks of act which
“Born later in accordance with law” (1995, 1999, 2008)
is legal but is contrary to morals, good custom, public order or
public policy and is done with intent to injure.
A foetus with an intra-uterine life of:
1. Less than 7 months – Must survive for at least 24 hours after
Sanction for abuse of right under Article 20 of the NCC
its complete delivery from the maternal womb.
2. At least 7 months – If born alive, it shall be considered born
Generally, laws provide for their own sanctions and methods of
even if it dies within 24 hours after complete delivery.
enforcement thereof. Article 20 applies only in cases where the
law does not provide for its own sanctions. Hence, every person
Death
who, contrary to law, wilfully or negligently causes damage to
another shall indemnify the latter for the same (Art. 20). Said
Rules to apply in case there is doubt as to who died first
article provides for a general sanction – indemnification for
damages (Pineda, 2009). (1996, 2006, 2009)
It depends on whether the parties are called to succeed each
other.
In view of the general sanction provided for under Art. 20, a
1. If successional rights are involved – Art. 43 of the NCC:
person however does not have an absolute right to be
Survivorship Rule, and Rule 131, Sec. 3(kk): Presumption of
indemnified, it is essential that some right of his be impaired.
simultaneous deaths between persons called to succeed
Without such, he is not entitled to indemnification (Pineda,
each other, apply.
2009).
2. If no successional rights are involved – Rule 131, Sec. 3 (jj) of
the Rules of Court applies. (Presumption of survivorship)
Sanctions for abuse of right under Article 21 of the NCC
MARRIAGE (FAMILY CODE)
Any person who willfully causes loss or injury to another in a
manner that is contrary to morals, good customs or public policy
Essential Requisites of Marriage (1996, 2009)
shall compensate the latter for the damage (Art. 21). It fills
countless gaps in the statutes, which leave so many victims of
1. Legal capacity of the contracting parties who must be a male
moral wrongs helpless, even though they suffered material and
and a female;
moral damages (Tolentino, 2013).
2. Consent freely given in the presence of the solemnizing
officer (Art. 2).
Elements of an action under Art. 21, NCC (Contra Bonus
Mores) (1996, 1998, 2006, 2009)
Legal capacity of the parties to marry (ASL)
1. There is an act which is legal;
1. Age – at least 18 years of age
2. Such act is contrary to morals, good customs, public order
2. Sex – between male and female
or policy;
3. Lack of legal impediment to marry (Art. 37 & 38)
3. It is done with intent to injure.
Formal Requisites of Marriage (CAL) (1996, 2009)
Accion In Rem Verso
1. Marriage Ceremony
It is the remedy for unjust enrichment. It is an action for recovery
of what has been paid or delivered without just cause or legal That which takes place with the:
ground. If a person acquires or comes into possession of a. Personal appearance of the contracting parties
something at the expense of another without just or legal ground before the solemnizing officer;
through an act or of performance by another or any other means
has the obligation to return the same (NCC, Art. 22). NOTE: There is no marriage ceremony if what
transpired was a mere private act of signing a marriage
Accion in rem verso can only be availed of if there is no other contract by the contracting parties, without the
presence of the solemnizing officer (Morigo v. People,
remedy to enforce it based on contract, quasi-contract, crime or
G.R. No. 145226, February 6, 2004)
quasi-delict.
b. Their personal declaration that they shall take each
Requisites (E-L-W-A) other as husband and wife; and
c. In the presence of not less than 2 witnesses of legal
1. The defendant has been Enriched; age.
2. The plaintiff has suffered a Loss;
3. The enrichment of the defendant is Without just or legal 2. Authority of the solemnizing officer
ground; and
4. The plaintiff has no other Action based on contract, quasi- Persons authorized to solemnize marriage:
contract, crime or quasi-delict.
1. Under ordinary circumstances:
Accion in rem verso v. Solutio Debiti a. Incumbent judiciary member – Provided, it is
solemnized in the place where the court exercises
In accion in rem verso, it is not necessary that there should have jurisdiction.
been mistake in the payment unlike in solution indebiti where
mistake is an essential element (Rabuya, 2006). NOTE: Where a judge solemnized a marriage
outside his court’s jurisdiction, this is a mere
irregularity in the formal requisite, which

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 UST LAW PRE-WEEK NOTES 2017
while it may not affect the validity of the
marriage, may subject the officiating
official to administrative liability (Rabuya,
2009).
b. Priest, rabbi, imam or minister of any
church/religious sect duly authorized – Provided at
least one of the parties belongs to such church or
religious sect.
c. Consul general, consul or vice-consul – Provided both
parties are Filipinos and marriage takes place abroad
in the country where the consul holds office.
d. Mayors (Arts. 444 and 445 of LGC) – including “Acting
Mayor”
NOTE: From the time of the effectivity of the Family
Code on August 3, 1988 up to the time of the effectivity
of the Local Government Code on January 1, 1992,
mayors do not have the authority to solemnize
marriage.
2. Marriages in articulo mortis:
a. Ship captain or airplane chief – provided the
marriage is performed:
i. During voyage, even during stopovers
ii. Between passengers or crew members
(Art.31)
NOTE: Such authority may be exercised not only
while the ship is at sea or the plane is in flight but
also during stop-overs at ports of call (Rabuya,
2009).
b. Military commander of a unit who is a
commissioned officer – provided the marriage is
performed:
i. In the absence of a chaplain;
ii. Within the zone of military operation;
iii. Between members of the armed forces or
civilians
3. Valid marriage License (Art. 3)
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 if the
contracting parties have not made use of it (Art. 20). If the parties
contracted the marriage after the lapse of 120 days from the
issuance of the marriage license, such marriage shall be
considered void for lack of marriage license.
Other requirements needed for the validity of such marriage
depending upon the age of the contracting party:
ADDITIONAL
AGE
REQUIREMENTS
18 to 21 years old Parental consent and
Marriage counseling
22 to 25 years old Parental advice and
Marriage counseling
Absence of the additional requirement of parental advice does
not make the marriage void or voidable. It only affects the
release of the marriage license to be postponed until (3) three
months from the complete publication of the application.
Effect of absence of requisities in the status of marriage
(1995, 1996, 1999, 2008)
1. Absence of any of the essential requisites - Void ab initio
(Art. 4)
2. Absence of any of the formal requisites – Void ab initio (Art.
4)
XPNs: Valid even in the absence of formal requisite:
a. Marriages exempt from license requirement;
3
b. Either or both parties believed in good faith that the
solemnizing officer had the proper authority (Art. 35
[2]).
3. Defect in essential requisites - Voidable
4. Irregularity in formal requisites - Valid, but the party
responsible for such irregularity shall be civilly, criminally
or administratively liable.
Marriages exempt from license requirement
1. Marriages among Muslims or members of ethnic cultural
communities – Provided they are solemnized in accordance
with their customs, rites or practices (Art. 33).
2. Marriages in Articulo mortis
3. Marriages in Remote places (Art. 28).
4. Marriages between parties Cohabiting for at least 5 years
(Art. 34)
5. Marriages solemnized Outside the Philippines where no
marriage license is required by the country where it was
solemnized
Requisites for the 5-year cohabitation as an exception to the
marriage license requirement (2002, 2008)
The requisites are: (5D PAS)
1. Living together as husband and wife at least 5 years before
the marriage.
The 5 year period must be characterized by:
a. Exclusivity – the partners must live together
exclusively, with no other partners, during the whole
5-year period.
b. Continuity – such cohabitation was unbroken.
NOTE: The period is counted from the date of celebration of
marriage. It should be the years immediately before the day
of the marriage.
2. No legal impediment to marry each other During the period
of cohabitation.
3. Fact of absence of legal impediment must be Present at the
time of the marriage.
4. Parties must execute an Affidavit that they are living
together as husband and wife for 5 years and that they do
not have any impediment to marry
5. Solemnizing officer must execute a Sworn statement that he
had ascertained the qualifications of the parties and found
no legal impediment to their marriage (Manzano v. Sanches,
.AM. No. MTJ-00-1329, March 8, 2001).
Rules governing the validity of marriage (2002, 2004, 2006,
2009, 2010 BAR)
1. As to its extrinsic validity – Lex loci celebrationis
NOTE: Locus regit actum (the act is governed by the law of
the place where it is done) - is adhered to here in the
Philippines as regards the extrinsic validity of marriage.
2. As to its intrinsic validity – Personal law
NOTE: Personal law may either be the national law or the
law of the place where the person is domiciled.
If the person involved is a stateless person, domiciliary rule
applies, otherwise, lex nationalii applies.
The 1st paragraph of Article 26 of the Family Code (FC)on the
validity of foreign marriages applies, however, only to Filipinos.
Foreign marriages of foreigners or of a Filipino and a foreigner
are governed by the Rules on Conflict of Laws (Sempio-Diy,
1995).
Marriages between Filipinos solemnized abroad in
accordance with the law in force in said country
 CIVIL LAW

GR: Marriages between Filipinos solemnized outside the 5) Such illness must be grave enough to bring about the
Philippines in accordance with the law of the foreign country disability of the party to assume the essential obligations of
where it is celebrated, if valid there, shall be valid here as such. marriage.
6) The essential marital obligations must be those embraced by
XPNs: It shall be void, even if it is valid in the foreign country Articles 68 up to 71 of the Family Code as regards the husband
and wife as well as Articles 220, 221, and 225 of the same Code
where the marriage was celebrated, if any of the following
in regard to parents and their children.
circumstances are present: 7) Interpretations given by the National Appellate
Matrimonial Tribunal of the Catholic Church in the
1. Lack of legal capacity even with parental consent (e.g. party Philippines, while not controlling or decisive, should be given
is below 18); great respect by our courts.
2. Incestuous;
3. Contracted through Mistake of one party as to the identity NOTE: The new Supreme Court Rule on Declaration of
of the other; absolute nullity of Void Marriages and annulment of
4. Contracted following the annulment or declaration of Voidable Marriages (A.M. No. 02-11-10-SC, effective
nullity of a previous marriage but Before partition, etc.; March 15, 2003 provide that the appearance of the
5. Bigamous or polygamous except as provided in Art. 41 FC prosecuting attorney or fiscal and the Solicitor-General
on terminable bigamous marriages; is no longer mandatory.
6. Void due to Psychological incapacity;
7. Void for reasons of Public policy. Incestous Marriages

Requirements to prove a foreign marriage 1. Between ascendants and descendants of any degree,
legitimate or illegitimate
1. The existence of the pertinent provision of the foreign 2. Between brothers and sisters, whether of the full or half
marriage law. blood, legitimate or illegitimate
2. The celebration or performance of the marriage in
accordance of said law. Void marriages by reason of public policy

1. Collateral blood relatives (legitimate or Illegitimate) up to

Requirements for the application of par. 2 of Art. 26 of the
the 4th civil degree;
Family Code 2. Step-parents & step-children;
3. Parents-in-law & children-in-law;
1. It must be a case of mixed marriage (one party is Filipino 4. Adopting parent & the adopted child;
and the other is an alien); 5. Surviving spouse of the adopting parent & the adopted
2. The divorce must be obtained by the alien spouse and not child;
by the Filipino spouse; and 6. Surviving spouse of the adopted child & the adopter;
3. The divorce obtained by the alien spouse must capacitate 7. Adopted child & legitimate child of the adopter;
him or her to remarry (Rabuya, 2009). 8. Adopted children of the same adopter;
9. Parties where one, with the intention to marry the other,
Void Marriages kills the latter’s spouse, or his/her spouse (Art. 38).
Q: What are void marriages? The prohibition under Nos. 2 and 3 applies even after the
termination of the marriage which is the very source of the
A: The following are void marriages: relationship by affinity, regardless of the cause of such
termination.
Article 35 (Void from the Beginning)
Article 36 (Psychological Incapacity) Subsequent marriage
Article 37 (Incestuous)
Article 38 (Against Public Policy) If a person contracts a subsequent marriage during the
Article 41 (Bigamous Marriages, Absentee Spouse and subsistence of a prior marriage, the subsequent marriage is:
Presumptive Death) (1992, 2005, 2008)
Article 44 (Present spouse who contracts
marriage in bad faith) GR: Void for being bigamous or polygamous, even if celebrated
abroad and valid there as such.
Q: What are the requisites for psychological incapacity
(1996, 1997, 2002, 2006) XPN: Valid if it is a terminable subsequent marriage.
A: In the case of Republic v. Molina (1997) the following rules in Elements:
declaring a marriage void due to psychological incapacity: a. Prior spouse has been absent for a period of 4 years, or in
1) The burden of proof to show the nullity of the marriage case there is danger of death, 2 years.
belongs to the plaintiff. b. There is well-founded belief that the absent spouse is dead
2) The root cause of the psychological incapacity must be: c. There is judicial declaration of presumptive death of the
(a) Medically or clinically identified, absentee spouse
(b) Alleged in the complaint,
(c) Sufficiently proven by the experts, Effects of Declaration of Nullity
(d) Clearly explained in the decision.
1. Status of the Children (1990, 2010)
NOTE: A.M. No. 02-11-10-SC, effective March 15, 2003 GR: Illegitimate
and Barcelona vs. CA (2003) provide that expert XPN: Legitimate if:
opinion is not a condition sine qua non for proof of i. If the marriage is void on the ground of psychological
psychological incapacity. The root cause may be incapacity of either or both parties; or
proven by the totality of evidence in actual trial. ii. If the marriage is void due to the non-compliance with
the requirements set forth under Article 52 of the
3) The incapacity must be proven to be existing at “the time of Family Code.
the celebration” of the marriage.
4) Such incapacity must also be shown to be medically or 2. Property Relations
clinically permanent or incurable. GR: Either Article 147 or 148 (Co-Ownership) will apply
XPN: If the subsequent marriage is void due to non-

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 UST LAW PRE-WEEK NOTES 2017

compliance with Article 40, the property relations of the admits paternity, will only have visitation rights.
void subsequent marriage will either be absolute
community or conjugal partnership of gains. XPN: If the marriage is declared void by the reason of
psychological incapacity of either or both of the parties, the
Q: Atty. Luna and his wife Eugenia agreed to live separately parental authority and the custody will be exercised by the
and to dissolve their conjugal property. On January 2, 1976, parent designated by the court.
Atty. Luna obtained a divorce decree of his marriage with
Eugenia from the Dominican Republic. On the same day, he Effects of Decree of Annulment
married Soledad. Atty. Luna later on died and left a 25%
share in a condominium, law books and other pieces of 1. Termination of the marital bond, as if it had never been
furniture from the law firm he organized with other lawyers entered into, but the effects thereof are not totally wiped
shortly after his second marriage. All the said properties out.
were taken over by his son from his first marriage, Gregorio. 2. Children conceived or born before the judgment of
Soledad, the second wife, then filed a complaint against the annulment has become final and executory are considered
heirs of Atty. Luna. According to her, the properties were legitimate.
acquired by Atty. Luna and her during their marriage, and 3. Absolute community property regime or the conjugal
because they had no children, 3/4 of the property became partnership property regime is terminated of dissolved and
hers, 1/2 being her share in the net estate, and the other half the same shall be liquidated in accordance with the
bequeathed to her in a last will and testament of Atty. Luna. provisions of Arts. 102 and 129.
Is Soledad entitled to the properties left by Atty. Luna? 4. The innocent spouse may revoke the designation of the
other spouse who acted in bad faith as beneficiary in the
A: NO. Atty. Luna’s marriage with Soledad was bigamous, and insurance policy whether or not the designation is
void from the very beginning, hence, their property relations is revocable.
governed by the rules on co-ownership. In such a situation, 5. The spouse who contracted the marriage in bad faith shall
whoever alleges co-ownership carried the burden of proof to be disqualified to inherit from the innocent spouse by
confirm such fact. To establish co-ownership, therefore, it testate and intestate succession
became imperative for the petitioner to offer proof of her actual 6. Donation propter nuptias
contributions in the acquisition of property. Her mere allegation GR: It shall remain valid
of co-ownership, without sufficient and competent evidence, XPN: If the donee spouse acted in bad faith, the donor may
would warrant no relief in her favor. SOLEDAD was not able to revoke the donation.
prove by preponderance of evidence that her own independent
funds were used to buy the law office condominium and the law Remarriage after declaration of nullity or annulment
books subject matter in contention in this case. (Soledad L.
Lavadia v. Heirs of Juan Luces, G.R. No. 171914, July 23, 2014) A person must comply with the requirements of Art. 52 before
he can remarry, viz, the recording and registration of:
3. Donations Propter Nuptias 1. Judgement of Annulment
GR: Donations propter nuptias are revocable at the instance 2. Partition
of the donor 3. Distribution of properties; and
XPN: 4. Delivery of presumptive legitime
i. If the donation propter nuptias is embodied in a
marriage settlement, the donation is void under Article Voidable Marriage
86 par. 1;
ii. If the subsequent marriage is judicially declared void A voidable marriage is considered valid and produces all its civil
by reason of Article 40, the donation remains valid. effects until it is set aside by final judgment of a competent court
XPN to the XPN: If the donee spouse contracted the in an action for annulment (Rabuya, 2006). Simply, a voidable
marriage in bad faith, all donations are revoked by marriage is valid until it is annulled (Paras, 2016).
operation by law.
iii. When both parties to a subsequent marriage Q: Under what conditions, respectively, may drug addiction
contracted in bad faith under Article 44, all donations be a ground, if at all, for the declaration of nullity of
propter nuptias are revoked by operation by law. marriage, annulment of marriage, and legal separation?
(1997 BAR)
4. Designation as Beneficiary in Insurance Policy
If the subsequent marriage is judicially declared void by A:
reason of Article 40, the innocent spouse may revoke such
designation if the beneficiary spouse acted in bad faith, even a. The drug addiction must
if such designation be stipulated as irrevocable. amount to psychological
incapacity to comply with the
Declaration of
5. Right to Inherit essential obligations of
Nullity of
a. Intestate Succession: The parties cannot inherit from marriage;
Marriage
each other by way of intestate succession since they b. It must be antecedent
are no longer considered as spouses (existing at the time of
b. Testate Succession: marriage), grave and
GR: Any testamentary provision by one in favour of the incurable (.)
other shall remain valid. a. The drug addiction must be
XPN: concealed;
1. If the subsequent marriage is rendered void by non- b. It must exist at the time of
compliance with Article 40 of the Family Code, the marriage;
Annulment of
spouse who contracted the subsequent marriage in c. There should be no
Marriage
bad faith is disqualified to inherit from the innocent cohabitation with full
spouse. knowledge of the drug
2. If the marriage is void by reason of the bad faith of addiction;
both parties under Article 41 of the Family Code, all d. The case is filed within five
testamentary dispositions made by one in favour of (5) years from discovery.
the other are revoked by operation of law. a. There should be no
Legal Separation
6. Parental Authority and Custody of Children condonation or consent to
GR: Since the children are considered as illegitimate, the the drug addiction;
parental authority and the custody of the children will be
exercised by their mother. The illegitimate father even if he

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 CIVIL LAW

b. The action must be filed The act of concealing

within five (5) years from The fact of being afflicted because it constitutes
the occurrence of the cause. fraud
c. Drug addiction arises during
the marriage and not at the Concealment
time of marriage.
Not necessarily Necessary
Vitiated consent as a ground for annulment of marriage
Nature of the Disease
There is vitiation of consent when:
Must be serious and Does not have to be
GR: Consent of either party was obtained by force, intimidation incurable serious and incurable
or undue influence.

XPN: However, if the same having disappeared or ceased, such
party thereafter freely cohabited with the other as husband and
wife.
A threat to enforce one's claim through competent authority
however, if the claim is just or legal, does not vitiate consent.
Impotence or physical incapacity
Impotence (impotentia copulandi) refers to lack of power of
copulation and not to mere sterility (impotentia genrandi) which
refers to ability to procreate. The test is not the capacity to
reproduce, but the capacity to copulate (Paras, 2008). Although
impotency carries with it sterility, a sterile person is not
necessarily impotent (Paras, 2016).
Requisites for impotence to be a ground for annulment of
marriage
1. Exists at the time of the Celebration of marriage;
2. Permanent (does not have to be absolute);
3. Incurable;
4. Unknown to the other spouse; and,
5. The other spouse must not also be Impotent.
Presumption of potency of one spouse
GR: Presumption is in favor of potency.
XPN: Doctrine of triennial cohabitation.
Doctrine Triennial cohabitation
If after 3 years of living together with her husband, the wife
remained a virgin, the husband is presumed to be impotent
(Rabuya, 2009). The husband will have to overcome this
presumption.
Relative impotency may now be invoked as a ground for
annulment. The Committee has decided to include relative
impotency of one party because there are cases where a person
is impotent with respect to his spouse but not with other men or
women (Sempio Diy, 1995).
Requisites of affliction of a SEXUALLY TRANSMITTED
DISEASE (STD) as a ground for annulment
LEGAL SEPARATION
Grounds (1997, 2002, 2003, 2006, 2007)
1. Repeated physical violence or grossly abusive conduct
against petitioner, common child, child of petitioner;
2. Attempt to corrupt or induce petitioner, common child,
child of petitioner to engage in prostitution, or connivance
in such corruption or inducement;
3. Attempt by respondent against life of petitioner;
4. Final judgment sentencing respondent to imprisonment of
more than 6 years, even if pardoned;
5. Drug addiction or habitual alcoholism of respondent which
must exist after celebration of marriage;
6. Physical violence or moral pressure to compel petitioner to
change religious or political affiliation;
7. Bigamous marriage subsequently contracted by
respondent in the Philippines or abroad
8. Sexual infidelity or perversion;
9. Lesbianism or homosexuality of respondent which must
exist after celebration of marriage;
10. Abandonment of petitioner by respondent without
justifiable cause for more than 1 year.
Abandonment as a ground for legal separation should be
done without justifiable cause for more than one year. It
shall not apply in a case where the spouse left the conjugal
dwelling due to the abusive conduct of her husband. Such
act does not constitute the abandonment contemplated in
the said provision. (Ong Eng Kiam v. CA, G.R. No. 153206,
October 23, 2006).
Condonation
It is the forgiveness, express or implied, after the commission of
the offense or act complained of and not before. There I implied
condonation when the offended spouse having full knowledge
and awareness of the offense, deliberately and wilfully cohabited
or had sexual intercourse with the offender. (Pineda, 2011, pp.
167)
Prescriptive Period for Legal Separation
An action for legal separation shall be filed within five (5) years
from the time of the occurrence of the cause. (Art. 57, Family
Code)

1. One of the parties is afflicted with STD; The point of reckoning is simply the date of the occurrence of the
2. STD must be: cause. If five (5) years had already lapsed from the occurrence of
a. Existing at the time the marriage is celebrated; the cause, the petition for legal separation shall be denied. It
b. Serious; must be stressed however that in certain acts like adultery, each
c. Apparently Incurable; adulterous act is a separate cause for legal separation.
3. The other spouse is not aware of the other’s affliction; and, Prescription will be based on the last act. (Pineda, 2011, p.172)
4. The injured party must be free from STD.
Filing of petition for legal separation
Art. 45 v. 46 of the FC on STD as ground for annulment
Who may file Husband or wife
ARTICLE 45 ARTICLE 46 When to file Within 5 years from the time of the
occurrence of the cause
Affliction Concealment Where to file Family Court of the province or city where
the petitioner or the respondent has been
Ground for Annulment residing for at least 6 months prior to the
date of filing or in case of a non-resident,
where he may be found in the Philippines,
at the election of the petitioner

6
 UST LAW PRE-WEEK NOTES 2017

owned by the property before

RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE spouses at the marriage
the time of and only the
Rights and obligations of the spouses (2010) marriage fruits and
become income of such
1. Essential marital obligations (LOR) (Art. 68): community properties
a. Live together, which includes consortium property become part of
(cohabitation) and copulation (sexual intercourse) the conjugal
b. Observe mutual love, respect, fidelity properties
c. Render mutual help and support during the
2. Fix the family domicile (Art. 69) marriage
3. Jointly support the family (Art. 70) (1995, 1998,
4. Manage the household (Art. 71) 2004, 2005,
5. Not to neglect duties, or commit acts which tend to bring 2008)
danger, dishonor, or injury to family (Art. 72) Effect of Separation In Fact
6. Either spouse may practice any legitimate
The separation in fact shall not
profession/business, even without the consent of the other.
affect the regime of ACP/CPG,
but:
PROPERTY RELATIONS OF THE SPOUSES
1. The spouse who leaves the
conjugal home or refuses
1. Absolute Community of Property (ACP)
to live therein, without just
2. Conjugal Partnership of Gains (CPG)
cause, shall not have the
3. Absolute Separation of Property (ASOP)
right to be supported;
4. Any other regime within limits provided by the FC
2. When consent of one
spouse to any transaction
Commencement of Property Regime
of the other is required by
law, judicial authorization
A property regime commences at the precise moment of the
shall be obtained in a
celebration of the marriage (i.e. actual time the marriage is
summary proceeding.
celebrated on a certain date). Any stipulation, express or implied,
3. In case of insufficiency of
for the commencement of the community regime at any other
community or conjugal
time shall be void (Art. 88).
partnership property,
separate property of both
Property regime governing the property relations of
spouses shall be solidarily
spouses in the absence of marriage settlement or when
liable for the support of the
regime agreed upon is void (1992, 1995, 2005)
family. Spouse present
shall, upon proper petition
GR: Absolute Community Property (Art. 75)
in a summary proceeding,
XPNs:
be given judicial authority
1. For marriages contracted prior to the effectivity of the FC
to administer or encumber
on August 3, 1988, conjugal partnership of gains shall
any specific separate
govern the property relations because Art. 119 of the NCC
property of the other
will apply. The provisions of the FC shall have no retroactive
spouse and use the fruits
effect because it shall impair vested rights.
or proceeds thereof to
2. Subsequent marriage contracted within one year from the
satisfy the latter’s share
death of the deceased spouse without liquidation of the
(Arts. 100 & 127, FC).
community property or conjugal partnership of gains,
either judicially or extrajudicially, as required under Arts. Effect of Dissolution
103 and 130 of the FC. In such case, a mandatory regime of Upon Upon
complete separation of property shall govern the dissolution dissolution of
subsequent marriage (Rabuya, 2009). and the
liquidation of partnership,
ACP CPG ASOP the the separate
When it applies community properties of
property, the spouses are
When 1. When the 1. When future spouses
what is returned and
spouses: future adopt it in a marriage
divided only the net
1. Adopt it spouses settlement;
equally profits of the
in a adopt it in a 2. ACP or CPG is
between the partnership are
marriage marriage dissolved;
spouses or divided equally
settlemen settlement; 3. Prior marriage is
their heirs is between the
t; 2. If the dissolved due to death
the net spouses of their
2. Do not marriage is of one spouse and
remainder of heirs.
choose celebrated surviving spouse
the
any under the failed to comply with
properties of
economic New Civil the requirements
the ACP.
system; or Code and under Art. 103
BASIS ART. 147 ART. 148
3. Adopted a they have not (judicial settlement
(1997, 2000, (1992, 1998, 2000,
different adopt any proceeding of the
2006, 2009, 2006, 2009)
property economic estate of deceased
2010)
regime system. spouse);
and the 4. By judicial order. Applicability 1. Parties With legal impediment
same is Judicial separation of without caused by:
void. property may either legal 1. Adulterous
be voluntary or for impediment relationships
sufficient cause. to marry; 2. Bigamous/polygamo
2. Void us marriages
Composition
marriage on
All the Each spouse the ground
properties retains his/her

7
 CIVIL LAW

of 3. Incestuous void 127358, March

psychologic marriages under Art. 31, 2005)
al 37 Forfeiture When only one If one of the parties is
incapacity. 4. Void marriages by of the parties to validly married to
reason of public a void marriage another, his/her share in
policy (Art. 38) is in good faith, the co-ownership shall
As to 1. The man 1. The man and the the share of the accrue to the ACP or CPG
requisites and the woman must be party in bad existing in the marriage.
woman incapacitated to faith in the co-
must be marry each other or ownership shall If the party who acted in
capacitated they do not live be forfeited in BF is not validly married
to marry exclusively with favor of: to another or if both
each other; each other as parties are in BF, such
2. live husband and wife; 1. their share be forfeited in
exclusively and common manner provided in the
with each 2. Their union is children last par. of Art. 147
other as without the benefit 2. in case of
husband of marriage or their default of or
and wife; marriage is void waiver by
and (Art. 148). any or all of
3. their union the common
is without children or
the benefit their
of marriage descendants
or their , each vacant
marriage is share shall
void belong to
(Mercado- the
Fehr v. respective
Fehr, 414 surviving
SCRA 288, descendants
2003; Salas, 3. In the
Jr. v. Aguila, absence of
G.R. No. descendants
202370, , such share
2013) shall belong
Salaries & Owned in equal Separately owned by the to the
wages shares parties. If any is married, innocent
his/her salary pertains to party.
the ACP/CPG of the Proof of Not necessary Necessary
legitimate marriage. actual
Property Belongs to such Belongs to such party contribution
exclusively party
acquired upon proof of THE FAMILY
acquisition
through Family relations include:
exclusive funds 1. Between husband and wife
Property Governed by Owned in common in 2. Between parents and children
acquired by rules of co- proportion to their 3. Among other ascendants and descendants
both through ownership respective contributions 4. Among brothers and sisters, whether of the full or half
their work or blood (Art. 150)
industry
Presumption Property No presumption of joint Rules governing family relations
acquired while acquisition.
living together Family relations are governed by law. No custom, practice or
presumed Actual joint contribution agreement destructive of the family shall be recognized or given
obtained by of money, property or effect (FC, Art. 149).
their joint industry shall be owned
efforts, work or by them in common NOTE: Even if not all forms of extra-marital relations are
industry and proportion. punishable under penal law, the sanctity of marriage is
owned by them constitutionally recognized and likewise affirmed by our
in equal shares. However, their statutes as a special contract of permanent union. Accordingly,
contributions are the Court has had little qualms with penalizing judicial
If one party did presumed equal, in the employees for their dalliances with married persons or for their
not participate absence if proof to the own betrayals of the marital vow of fidelity (Concerned Employee
in acquisition: contrary v. Mayor, A.M. No. P-02-1564, November 23, 2004).
presumed to
have Requisites before a suit between members of the same
contributed family may prosper
through care
and 1. Earnest efforts toward a compromise have been made;
maintenance of 2. Such efforts failed;
family and 3. The fact that earnest efforts toward a compromise have
household been made but the same have failed appears in the verified
(Buenaventura complaint or petition (Art. 151).
v.
Buenaventura,
G.R. No.

8
 UST LAW PRE-WEEK NOTES 2017

Family Home 1. The artificial insemination is made on the wife, not on

another woman;
It is the dwelling house where the husband and wife and their 2. The artificial insemination on the wife is done with the
family reside, and the land on which it is situated. It is sperm of the husband or of a donor, or both the husband
constituted jointly by the husband and the wife or by an and a donor;
unmarried head of a family (FC, Art. 152). 3. The artificial insemination has been authorized or ratified
by the spouse on a written instrument executed and signed
Constitution of Family Home (FH) by them before the birth of the child; and
4. The written instrument is recorded in the civil registry
The FH is deemed constituted on a house and lot from the time together with the birth certificate of the child (FC, Art. 164).
it is occupied as a family residence FC, (Art. 153).
Rights of legitimate children (FC, Art. 174)
Guidelines in the constitution of the Family Home
1. To bear the surname of the father and the mother;
1. FH is deemed constituted from the time of actual occupation 2. To receive support from their parents, their ascendants, and
as a family residence; in proper cases, their brothers and sisters;
2. Only 1 FH may be constituted; 3. To be entitled to the legitimate and other successional
3. Must be owned by the person constituting it; rights granted to them by Art. 174 of the Family Code.
4. Must be permanent;
5. Same rule applies to both valid and voidable marriages and Presumption of legitimacy (2006, 2008, 2010 BAR)
even to common law spouses; (FC, Arts. 147 and 148)
6. It continues despite death of one, both spouses, or an Article 164 of the Family Code provides that the children
unmarried head of the family for 10 years or as long as there conceived or born during the marriage of the parents are
is a minor beneficiary (FC, Art 159).
legitimate.
The heirs cannot partition the same unless the court finds
compelling reasons therefor. This rule shall apply regardless of The presumption of legitimacy of children does not only flow out
whoever owns the property or constituted the FH (FC, Art 159). from a declaration contained in the statute but is based on the
broad principles of natural justice and the supposed virtue of the
The FH must be part of the properties of the absolute community mother. The presumption is grounded in a policy to protect
or the conjugal partnership or the exclusive properties of either innocent offspring from the odium of illegitimacy (Liyao, Jr. v.
spouse, with the latter’s consent. It may also be constituted by Tanhoti-Liyao, G.R. 138961, March 7, 2002).
an unmarried head of a family on his or her own property (FC,
Art 156).
The presumption of legitimacy under Article 164 of the Family
NOTE: Property that is subject of a conditional sale on Code may be availed only upon convincing proof of the factual
instalment(s) where ownership is reserved by the vendor to basis therefor, i.e., that the child’s parents were legally married
guarantee payment of the purchase price may be constituted as and that his/her conception or birth occurred during the
a FH. subsistence of that marriage. Else, the presumption of law that
a child is legitimate does not arise (Angeles v. Maglaya, G.R. No.
Beneficiaries of a Family Home (FC, Art. 154) 153798, September 2, 2005).
1. Husband and wife, or
NOTE: The child by himself cannot choose his own filiation.
2. Unmarried head of the family,
3. Parents (may include parents-in-law), Neither can he elect the paternity of the husband of his mother
4. Ascendants, when the presumption of his legitimacy has been successfully
5. Descendants overthrown.
6. Brothers and sisters (legitimate or illegitimate) living in the
FH and dependent on the head of the family for support. Rule on status of child where the mother contracted another
marriage within 300 days after termination of the former
Requisites to be considered as beneficiary (FC, Art 156) (1999)
1. They must be among the relationships enumerated in Art. The child shall be considered as conceived during the:
154 of the Family Code;
2. They live in the FH; and
1. Former marriage– if child is born:
3. They are dependent for legal support upon the head of the
Before 180 days after the solemnization of the
family.
subsequent marriage, provided it is born within 300
PATERNITY AND FILIATION days after termination of former marriage
2. Subsequent marriage –if a child is born:
Legitimate children 180 days after the celebration of the subsequent
marriage, even though it be born within 300 days after
GR: One who is conceived OR born during the marriage of the the termination of the former marriage.
parents (FC, Art. 164).
ACTION TO IMPUGN LEGITIMACY V.
ACTION TO CLAIM LEGITIMACY
XPN: Born outside of a valid marriage (void marriages) but
considered as legitimate child:
BASIS ACTION TO ACTION TO
IMPUGN CLAIM
1. Children of marriages which are declared void under Art. LEGITIMACY LEGITIMACY
36; and
Remedy Action to impugn Action to claim
2. Children of marriages which are declared void under Art. 53
legitimacy or legitimacy
(Rabuya, 2009).
illegitimacy. (compulsory
recognition).
Requisites for a child conceived by artificial insemination to
Real party GR: Husband GR: Child
be considered legitimate (FC, Art. 166 no. 3) in interest XPNs: Heirs, in XPNs: Heirs of the
cases where: child, in cases where:

9
 CIVIL LAW

1. Husband died 1. Child died in state which case the marriage will be considered valid and the
before the of insanity children will be considered legitimate.
expiration of the 2. Child died during
period for minority Rights of an illegitimate child
bringing the
action; NOTE: Must be filed 1. They shall use the surname of the mother;
2. Husband died within 5 years. 2. They shall be under the parental authority of the mother;
after filing the 3. They shall be entitled to support in conformity with the FC;
complaint, 4. They shall be entitled to a legitime which shall consist of ½
without having of the legitime of a legitimate child (Art. 176).
desisted;
3. Child was born Legitimated Children
after the death
of husband. Children conceived and born outside of wedlock of parents
Prescription 1 year – husband GR: During the who, at the time of conception of the former, were not
resides in the same lifetime of the child disqualified by any impediment to marry each other, or were so
municipality or city XPN: Lifetime of the disqualified only because either or both of them were below
where birth took putative father eighteen (18) years of age, may be legitimated (Art. 177, FC as
place amended by R.A. 9858). (1990, 2004, 2008, 2009)
2 years – husband In cases where the
does NOT reside in action is for the ADOPTION
the same recognition of
municipality or city illegitimate child by Domestic Adoption Act of 1998 (RA 8552)
3 years – husband is “open and continuous
living abroad possession” of the Who can adopt
status.
1. Filipino citizens;
Legitimacy of the child may be impugned only on the 2. Aliens;
following grounds: 3. Guardians with respect to their ward but only after the
1. Physical impossibility for the husband to have sexual termination of guardianship and clearance of his financial
intercourse with his wife within the first 120 days of the accountabilities.
300 days which immediately preceded the birth of the child
because of: Qualifications of a Filipino who may adopt
a. Physical incapacity of the husband to have sexual
intercourse with his wife;
b. The fact that the husband and wife were living 1. Must be of legal age;
separately in such a way that sexual intercourse was not 2. In a position to support and care for his children;
possible; or 3. Good moral character;
c. Serious illness of the husband which absolutely 4. Full civil capacity and legal rights;
prevented intercourse. 5. has not been convicted of any crime involving moral
2. Proved that for biological or other scientific reasons, the turpitude;
child could not have been that of the husband, except in the 6. Emotionally and psychologically capable of caring for
case of children conceived through artificial insemination. children;
3. In case of children conceived through artificial insemination, 7. GR: At least 16 years older than adoptee
the written authorization or ratification of either parent XPN: When the:
was obtained through mistake, fraud, violence, intimidation a. Adopter is the biological parent of the adoptee,
or undue influence. b. Adopter is the spouse of adoptee’s parent.

Kinds of proof of filiation (1995, 1999, 2010) Qualifications of an alien who may adopt under R.A. 8552

1. Primary proof consists of the ff:
a. Record of birth appearing in civil registrar or final
judgment;
b. Admission of legitimate filiation in public document or
private handwritten instrument signed by parent
concerned.
2. Secondary consists of the ff:
a. Open and continuous possession of legitimacy;
b. Any means allowed by the Rules of Court and special
laws.
Illegitimate Children
1. Children conceived and born outside a valid marriage:
2. Children born of couples who are not legally married or of
common law marriages;
3. Children born of incestuous marriage;
4. Children born of bigamous marriage;
5. Children born of adulterous relations between parents;
6. Children born of marriages which are void for reasons of
public policy under Art. 38, FC;
7. Children born of couples below 18, whether they are married
(which marriage is valid) or not;
8. Children born of void marriages under art. 35, except where
the marriage is void for lack of authority on the part of the
solemnizing officer, but the parties or either of them believed
in good faith that the solemnizing officer had authority, in
1. Possesses same qualifications as those enumerated for
Filipino adopters;
2. His country has diplomatic relations with the Philippines;
3. His government allows the adoptee to enter his country as
his adopted child
4. He has been certified by his diplomatic or consular office or
any appropriate government agency that he has the legal
capacity to adopt in their country
5. GR: Has been living in the Philippines for at least 3
continuous years prior to the application for adoption and
maintains such residence until adoption decree has been
entered.
XPNs:
a. He is a former Filipino who seeks to adopt a relative
within the 4th civil degree of consanguinity or affinity,
b. He is married to a Filipino and seeks to adopt jointly
with his spouse a relative within the 4th degree of
consanguinity or affinity,
c. He is married to a Filipino and seeks to adopt the
legitimate or illegitimate child of his Filipino spouse.
Who may be adopted
1. Any person below eighteen (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;

10
 UST LAW PRE-WEEK NOTES 2017

3. An illegitimate son/daughter by a qualified adopter to responsibilities of parental authority;

improve his/her status to that of a legitimate; 4. Not been convicted of a crime involving moral turpitude;
4. A person of legal age if, prior to the adoption, said person 5. Eligible to adopt under his national law;
has been consistently considered and treated by the 6. In a position to provide for proper care and support and
adopter(s) as his/her own child since minority; give necessary moral values;
5. A child whose adoption has been previously rescinded; or 7. Agrees to uphold the basic rights of the child mandated by
6. A child whose biological or adoptive parent(s) has the UN convention of rights of Child and the Philippine
died: Provided, that no proceedings shall be initiated within Laws;
six (6) months from the time of death of said parent(s). (Sec. 8. Comes from a country with which the Philippines has
8, RA 8552). diplomatic relations and adoption is allowed under his
national law;
Rights of an Adopted Child 9. Possesses all the qualifications and none of the
disqualifications under the law or other applicable
1. Right to use the surname of the adopter Philippine laws.
2. Right to support
3. Right to succession SUPPORT

Instances when adoption may be rescinded It comprises everything indispensable for:

1. Sustenance
2. Dwelling
The adoption may be rescinded on any of the grounds committed
3. Clothing
by the adopter: 4. Medical attendance
5. Education – includes schooling or training for some
1. Repeated physical and verbal maltreatment by the profession, trade or vocation, even beyond the age of
adopter(s) despite having undergone couselling; majority
2. Attempt on the life of the adoptee; 6. Transportation – includes expenses going to and from
3. Sexual assault or violence; or school, or to from place of work
4. Abandonment and failure to comply with parental
Rules on support of illegitimate children of either spouse
obligations 1. ACP or CP- For the support of the following:
a. spouses;
Q: Who may file the action for rescission of domestic b. common children of the spouses; and
adoption? c. legitimate children of either spouse

A: The adoptee has the sole right to severe the legal ties created
by adoption and the one who will file the action for rescission.
However, if the adoptee is still a minor or above 18 years of age
but incapacitated, the Department of Social and Welfare
Development as the adoptee’s guardian or counsel may assist
the adoptee for rescinding the decree of adoption. The adopter
cannot seek the rescission of the adoption but he may disinherit
the adoptee.
NOTES:
1. Joint adoption is only allowed between husband and wife.
2. The use of the word “shall” in the above-quoted provision
means that joint adoption by the husband and the wife is
mandatory. This is in consonance with the concept of joint
parental authority over the child which is the ideal
situation. As the child to be adopted is elevated to the level
of a legitimate child, it is but natural to require the spouses
to adopt jointly. The rule also ensures harmony between the
spouses. The law is clear. There is no room for ambiguity.
Monina, having remarried at the time the petitions for
adoption were filed, must jointly adopt. Since the petitions
for adoption were filed only by Monina herself, without
joining her husband, Olario, the trial court was correct in
denying the petitions for adoption on this ground (In Re:
Petition for Adoption of Michelle P. Lim, In Re: Petition for
Adoption of Michael Jude P. Lim, Monina P. Lim, G.R. Nos.
168992-93, May 21, 2009).
Intercountry Adoption Act of 1995 (R.A 8043)
NOTE: If the community property or the conjugal
partnership is insufficient to cover them, the spouses shall
be solidarily liable for the unpaid balance with their
separate properties.
2. Separate property of person- For the support of the
following:
a. illegitimate children;
b. legitimate ascendants;
c. descendants, whether legitimate or illegitimate;
d. brothers and sisters, whether legitimately or
illegitimately related (Rabuya, 2009).
Persons obliged to support each other (2008)
1. Spouses;
2. Legitimate ascendants & descendants;
3. Parents and their legitimate children, and the legitimate
and illegitimate children of the latter;
4. Parents and their illegitimate children, and the legitimate
and illegitimate children of the latter;
5. Legitimate brothers and sisters whether full or half-blood
(Art. 195).
NOTE: Brothers and sisters not legitimately related are
likewise bound to support each other. However, when the
need for support of the brother or sister, being of age, is due
to a cause imputable to the claimant’s fault or negligence, in
this case, the illegitimate brother or sister has no right to be
supported (Rabuya, 2009).

Who can adopt: The liability to support should be observed in the following
order:
1. Any alien;
2. Filipino citizen, both permanently residing abroad. 1. Spouse
2. Descendants in the nearest degree
Qualifications needed for a Filipino or alien to adopt (Sec. 9) 3. Ascendants in the nearest degree
1. At least 27 years old and 16 years older than the child to be 4. Brothers and sisters
adopted at the time of the application unless:
a. adopter is the parent by nature of the child; PARENTAL AUTHORITY
b. adopter is the spouse of the parent by nature of the
child to be adopted 1. Caring for and rearing of such children for civic
2. If married, his spouse must jointly file for adoption; consciousness and efficiency;
3. Has the capacity to act or assume all rights and

11
 CIVIL LAW
2. Development of their moral, mental and physical character
and well-being. (Art. 209).
Exercise of parental authority
1. The father and the mother shall jointly exercise parental
authority over the persons of their common children. In
case of disagreement, the father’s decision shall prevail
unless there is a judicial order to the contrary.
2. If the child is illegitimate, parental authority is with the
mother. (Art. 211)
Parental preference rule
The natural parents, who are of good character and who can
reasonably provide for the child are ordinarily entitled to
custody as against all persons.
Exercise of parental authority in case of absence, death,
remarriage of either parent, or legal or de facto separation
of parents
1. Absence or death of either parent – parent present shall
continue exercising parental authority
2. Remarriage of either parent – it shall not affect the parental
authority over the children, unless the court appoints
another person to be the guardian of the person or property
of the children (Art. 213).
3. Legal or de facto separation of parents – the parent
designated by the court.
Tender-Age Presumption
GR: No child below 7 years of age shall be separated from the
mother because the law presumes that the mother is the best
custodian. (2006)
XPN: When the court finds compelling reasons to consider
otherwise
Order of substitute parental authority
1. Surviving Grandparent;
2. Oldest brother or sister, over 21 years unless unfit or
disqualified
3. Actual Custodian over 21 year unless unfit or disqualified
(Art. 216)
4. In case of foundlings, abandoned, neglected or abused
children similarly situated, parental authority shall be
entrusted in summary judicial proceedings to heads of
children’s homes, orphanages and similar institutions duly
accredited by the proper government agency (Art. 217).
Special Parental Authority (2003, 2004, 2005, 2010)
It is the parental authority granted by law to certain persons,
entities or institutions in view of their special relation to
children under their supervision instruction or custody. It is
denominated as special because it is limited and is present only
when the child is under their supervision instruction or custody.
It can also co-exists with the parents’ parental authority.
The scope of special parental authority and responsibility
applies to all authorized activities, whether inside or outside the
premises of the school, entity or institution.
The nature of the liability of persons having special parental
authority over said minors for their acts or omissions causing
damage to another is principal and solidary. The parents, judicial
guardians or the persons exercising substitute parental
authority over said minor shall be subsidiarily liable (NCC, Art.
219). (2003, 2010)
Persons who may exercise special parental authority
1. School
2. School administrators
3. School teachers
4. Individual, entity or institution engaged in child care
12
Q: Distinguish briefly but clearly between: Substitute
parental authority and special parental authority
A: In substitute parental authority, the parents lose their
parental authority in favor of the substitute who acquires it to
the exclusion of the parents. In special parental authority, the
parents or anyone exercising parental authority does not lose
parental authority. Those who are charged with special parental
authority exercise such authority only during the time that the
child is in their custody or supervision. Substitute parental
authority displaces parental authority while special parental
authority concurs with parental authority.
EMANCIPATION (Arts. 234 and 236, Family Code, as
amended by R.A No. 6809 which lowered the age of
majority)
Emancipation takes place by attainment of majority at the age of
(18) eighteen years (Art. 234, FC, as amended by RA 6809).
(2010)
Effects of emancipation
1. Parental authority over the person and property of the child
is terminated;
2. Child shall be qualified and responsible for all acts of civil
life, save exceptions established by existing laws;
3. Contracting marriage shall require parental consent until
the age of 21;
4. The responsibility of parents or guardians for children and
wards below 21 under the second and third paragraphs of
Art. 2180 of the NCC shall not be derogated.
RETROACTIVITY OF THE FAMILY CODE
The Family Code has retroactive effect insofar as it does not
prejudice or impair vested or acquired rights in accordance with
the Civil Code or other laws (Art. 256). (2005, 2010)
FUNERALS
General Guidelines:
1. Duty and right to make arrangements in funerals in
accordance with Art. 199, FC:
a. Spouse;
b. Descendants in the nearest degree;
c. Ascendants in the nearest degree;
d. Brothers and sisters.
NOTE: In case of descendants of the same degree, or of brothers
and sisters, the oldest shall be preferred.
In case of ascendants, the paternal shall have a better right (NCC,
Art. 305).
2. Funeral shall be:
a. In keeping with the social position of the
deceased;
b. In accordance with the expressed wishes of the
deceased;
c. In absence of the expressed wishes, his religious
beliefs or affiliation shall determine;
d. In case of doubt, the form of funeral is to be
decided upon by the person obliged to make
arrangements for the same, after consulting the
other members of the family (NCC, Art. 307).
3. Any person who:
a. Shows disrespect to the dead, or
b. Wrongfully interferes with a funeral shall be liable
to the family of the deceased for damages,
material and moral (NCC, Art. 309).
4. Funeral expenses are chargeable against the property
of the deceased. However, if the deceased is one of the
spouses, they are chargeable against the conjugal
partnership property (NCC, Art. 310).
USE OF SURNAMES
 UST LAW PRE-WEEK NOTES 2017
Valid grounds for change of name
1. One has continuously used and has been known since
childhood by a Filipino name and was unaware of alien
parentage;
2. The change results as a legal consequence, as in
legitimation;
3. There is a sincere desire to adopt a Filipino name to erase
signs of former alienage, all in good faith and without
prejudicing anyone;
4. The change will avoid confusion;
5. The name is:
a. Ridiculous,
b. Extremely difficult to write or pronounce,
c. Dishonorable.
ABSENCE
Kinds of absence
1. Physical Absence
2. Legal Absence
3 Stages of Absence
1. Provisional Absence – when a person disappears from his
domicile his whereabouts being unknown, without leaving
an agent to administer his property (Art. 381).
2. Declared Absence – when a person disappears from his
domicile and 2 years thereafter have elapsed without any
news about him or since the receipt of the last news, or 5
years have elapsed in case he left a person to administer his
property (Art. 384).
3. Presumptive Death – the absentee is presumed dead
(Jurado, 2011)
Presumption of Death
Kinds of presumed death
1. Ordinary presumption- disappears under normal conditions
without danger or idea of death.
2. Extraordinary presumption- disappearance with great
probability of death.
Rules in ordinary presumption of death
1. In case of disappearance upon or before reaching the age of
seventy five (75) years:
a. After an absence of seven (7) years -the absentee is
presumed dead for all purposes except, succession.
b. After an absence of ten (10) years - the absentee is
presumed dead for all purposes including succession.
2. Disappearance at the age of seventy six (76) years or older,
after an absence of five (5) years -the absentee is presumed
dead for all purposes including succession.
Presumption of death of absentee under an ordinary
presumption
Absentee is presumed to have died under an ordinary
presumption at the end of the 5, 7, or 10 year period, as the case
may be.
Presumption of death for all purposes
The following are presumed dead for all purposes including the
division of estate among heirs in case of extraordinary
presumption of death (Art. 391):
1. Person on board a vessel lost during a sea voyage, or an
airplane which is missing, who has not been heard of for
four (4) years since the loss of the vessel or airplane;
2. Person in the armed forces who has taken at in war, and has
been missing for four (4) years;
3. Person who has been in danger of death under other
circumstances and his existence has not been known for
four (4) years.
PART III – PROPERTY
CHARACTERISTICS
Property
13
All things which are or may be the object of appropriation
considered as either real or personal property (NCC, Art. 414).
It is an object or a right which is appropriated or susceptible of
appropriation by man, with capacity to satisfy human wants and
needs (Pineda, 1999).
NOTE: Property does not only cover material things because it
mentions of rights which could either be classified as real or
personal right.
CLASSIFICATION
Real or Immovable Property
1. Land, buildings, roads and constructions of all kinds
adhered to the soil;
2. Trees, plants, and growing fruits, while they are attached to
the land or form an integral part of an immovable;
3. Everything Attached to an immovable in a fixed manner, in
such a way that it cannot be separated therefrom without
breaking the material or deterioration of the object;
4. Statues, reliefs, paintings or other objects for use or
ornamentation, placed in buildings or on lands by the
owner of the immovable in such a manner that it reveals the
intention to attach them permanently to the tenements;
5. Machinery, receptacles, instruments or implements
intended by the owner of the tenement for an industry or
works which may be carried on in a building or on a piece
of land, and which tend directly to meet the needs of the said
industry or works;
6. Animal houses, pigeon-houses, beehives, fish ponds or
breeding places of similar nature, in case their owner has
placed them or preserves them with the intention to have
them permanently attached to the land, and forming a
permanent part of it; the animals in these places are
included;
7. Fertilizer actually used on a piece of land;
8. Mines, quarries, and slag dumps, while the matter thereof
forms part of the bed, and waters either running or
stagnant;
9. Docks and structures which, though floating, are intended
by their nature and object to remain at a fixed place on a
river, lake, or coast;
10. Contracts for public works, and servitudes and other real
rights over immovable property (Art. 415).
Categories of immovable property (NIDA)
1. Nature – Those which cannot be carried from place to place.
2. Incorporation – Those which are attached to an immovable
in a fixed manner and considered as an integral part thereof,
irrespective of its ownership.
3. Destination – Things placed in buildings or on lands by the
owner of the immovable or his agent in such a manner that
it reveals the intention to attach them permanently thereto.
4. Analogy – Classified by express provision of law.
Personal or movable property
1. Movables susceptible of appropriation which are not
included in Art. 415;
2. Real property which by any special provision of law
considers as personalty; e.g. growing crops under the
Chattel Mortgage Law.
3. Forces of nature which are brought under the control of
science;
4. In general, all things which can be transported from place
to place without impairment of the real property to which
they are fixed;
5. Obligations and actions which have for their object
movables or demandable sums; and
6. Shares of stock of agricultural, commercial and industrial
entities, although they have real estate (Art. 416).
OWNERSHIP
 CIVIL LAW

It is the juridical relation of a person over a thing by virtue of possession of the premises
which said person has the exclusive power or authority to until he was deprived thereof NOTE: The fact that
receive all the benefits and advantages arising from said thing, by the defendant. petitioners are in possession
save those restricted by law or the recognized rights of others. of the lot does not
automatically entitle them to
Q: What are the remedies to recover possession? remain in possession (Ganilla
v. CA, G.R. No. 150755, June 28,
A: 2005).
1. Personal property- Replevin As to when 1 year period is counted from
2. Real property 1 year period is generally 1 year period is counted from
a. Accion Interdictal counted from the date of the date of last demand or last
i. Forcible Entry actual entry of the land. letter of demand.
ii. Unlawful detainer
b. Accion Publiciana
Q: What are the requisites in an action to recover
c. Accion Reinvindicatoria
property?
Q: What are the distinctions between accion reivindicatoria,
1. Clearly identify the land he is claiming in accordance with
accion publiciana, accion interdictal?
the title/s on which he bases his right of ownership; and
A:
2. Prove that he has a better title than the defendant
a. Best proof is a Torrens certificate.
Accion interdictal
b. Tax receipts, tax declarations are only prima facie
It is a summary action to recover physical or material
evidence of ownership; it is rebuttable.
possession only and it must be brought within one year from
the time the cause of action arises. It may be:
Q: What is the principle of self-help?
1. Forcible Entry
2. Unlawful detainer
A: It authorizes an owner or lawful possessor of a property to
use reasonable counterforce to prevent or stop another person
Accion publiciana
from taking the former’s property. There must be no delay in the
It is an ordinary civil proceeding to recover the better right of
pursuit, otherwise, his recourse will be to go to the court for the
possession, except in cases of forcible entry and unlawful
recovery of property.
detainer. What is involved here is not possession de facto but
possession de jure.
ACCESSION
Accion reinvindicatoria
It may be defined as the right pertaining to the owner of a thing
It is an action to recover real property based on ownership.
over everything which is produced thereby, or which is
Here, the object is the recovery of the dominion over the
incorporated or attached thereto, either naturally or artificially
property as owner.
(Art. 440).
Where the facts averred in the complaint reveals that the action
He who receives the fruits has the obligation to pay the expenses
is neither one of forcible entry nor unlawful detainer but
made by a third person in their production, gathering and
essentially involves a boundary dispute, the same must be
preservation.
resolved in an accion reinvindicatoria (Sarmiento v. CA, G.R. No.
116192, November 16, 1995).
NOTE: Only such as are manifest or born are considered as
natural or industrial fruits. With respect to animals, it is
Q: What are the distinctions between forcible entry and
sufficient that they are in the womb of the mother, although
unlawful detainer?
unborn.
A:
Rule if the planter and owner of the land are different
Gathered Fruits
Forcible Entry Unlawful Detainer
Planter in GF Planter in BF
As to when possession became unlawful Planter Keeps fruits (Art. Reimbursed for
Possession of the defendant is Possession is inceptively 544 (1)) (2008 expenses for
unlawful from the beginning lawful but becomes illegal BAR) production,
as he acquired possession by from the time defendant gathering and
force, intimidation, strategy, unlawfully withholds preservation (Art.
threat or stealth (FISTS). possession after the 443)
expiration or termination of Owner No necessity to Owns fruits
his right thereto. reimburse the provided he pays
planter of expenses planter expenses
NOTE: The question of since the planter for production,
possession is primordial, retains the fruits gathering and
while the issue of ownership is (Art. 544(1)) preservation (Art.
generally unessential in 443)
unlawful detainer (Rosa Rica Standing Crops
Sales Center v. Sps. Ong, G.R. Planter in GF Planter in BF
132197, August 16, 2005). Planter Reimbursed for Loses what is built,
As to necessity of demand expenses, for planted or sown
No previous demand for the Demand is jurisdictional if the production, without right to
defendant to vacate is ground is non-payment of gathering and indemnity (Art
necessary. rentals or failure to comply preservation 449)
with the lease contract. (Art.443)
Entitled to
As to necessity of proof of prior physical possession reimbursement
Plaintiff must prove that he Plaintiff need not have been in for the necessary
was in prior physical prior physical possession. expenses of

14
 UST LAW PRE-WEEK NOTES 2017

preservation of 2. Sells the land,

the land (Art. 452) The parties shall agree Builder or Planter
Owner Owns fruits Owns fruits (Art. upon the terms of the lease cannot be obliged to
provided he pays 449) and in case of buy the land if its
planter expenses disagreement, the court value is considerably
for production, shall fix the terms thereof. more than that of the
gathering and building or trees.
preservation (Art.
443) In such case, he shall
pay reasonable rent.
Rule when the land owner is the builder, planter or sower
(1999 BAR) The parties shall
agree upon the
Land Owner and Builder, terms of the lease
Owner of Materials and in case of
Planter or Sower
Good Faith Good Faith disagreement, the
Acquire building etc. after 1. Receive indemnity for court shall fix the
paying indemnity for value of value of materials; or terms thereof (Art.
materials (Art. 447) 2. Remove materials if w/o 448). (1992, 1996,
injury to works, 1999, 2000, 2001
plantings or BAR)
constructions (Art. 447) Good Faith Bad Faith
Bad Faith Good Faith 1. The land owner can either: 1. Lose improvements
Acquire building etc. after 1. Be indemnified for value a. Acquire without right to be
paying value of materials of materials and improvements indemnified unless
AND indemnity for damages, damages; or without paying the latter sells the
subject to the right of the 2. Remove materials, w/ indemnity and land (Art. 449)
owner of materials to or w/o injury and be collect damages (1996, 2000 BAR)
remove (Art. 447) indemnified for (Art. 445 & 449) 2. Recover necessary
damages (Art, 447) b. Order the expenses for
Good Faith Bad Faith demolition of preservation of land
1. Acquire w/o paying 1. Lose materials w/o work or without the right to
indemnity and right to being indemnified and restoration to retain the thing
damages (Art 445 and pay damages (Art 445 former condition until the indemnity
449, by analogy) and 449, by analogy) and collect is paid (Art. 452 &
2. Pay necessary expenses 2. Recover necessary damages in both 546)
for preservation (Art. 452 expenses for cases (Art. 450) 3. Pay damages to
& 546) preservation of land c. Sell the land to land owner (Art.
without the right to builder and 451)
retain the thing until the planter or rent it
indemnity is paid (Art. to the sower, and
452 & 546) collect damages
Bad Faith Bad Faith in both cases (Art.
450) (2008 BAR)
As though both acted in good faith (in pari delicto) 2. Pay necessary expenses for
(Art. 453) (1999 BAR) preservation (Art. 452 &
546).
Rule when the land owner is NOT the builder, planter or Bad Faith Good Faith
sower Acquires improvements after 1. Receive indemnity
Builder, Planter, paying indemnity and damages for improvements
Land Owner Sower and Owner of to builder, planter, sower, and receive
Materials unless the latter decides to damages; or
Good Faith Good Faith remove (Art. 454, 447) 2. Remove them in
He can either: (Art. 448) If the Land Owner: any event and
(1992, 1996, 2000, 2001 1. Acquires the He cannot compel the builder receive damages
BAR) improvements after planter or sower to buy the (Art. 454 & 447).
1. Acquire improvements paying indemnity, land.
after paying indemnity for: Builder, Planter, or
a. Necessary Sower has the right The reason why said article (Art.
expenses, and to retain the thing 447) applies may be explained
b. Useful expenses (and cannot be as follows:
which could required to pay rent) That if the land owner
either be: until indemnity is knew that something
a. Original costs of paid (Art. 546) was being built,
improvements planted or sown on his
b. Increase in the If the useful land by another and he
value of the improvements can did not interpose any
whole (Art. 443 & be removed without objection thereto, it is
546) damage to the as if he was the one
principal thing, the building, planting or
2. Sell the land to builder and Builder, Planter or sowing in bad faith on
planter or collect rent from Sower may remove his own land with
sower unless the value of them, unless the materials belonging to
the land is considerably person who recovers another, using the
greater than the building the possession owner of the materials
etc., in which case, the exercises the other as his worker (Rabuya,
builder and planter shall (Art. 547 & 447) 2008).
pay rent. Bad Faith Bad Faith

15

As though both acted in good faith (in pari delicto)
(Art. 453)
Rule when the land owner, builder, planter, sower and owner of materials are different persons
Land Owner
Good Faith
He shall answer subsidiarily for their Pay value of materials to its owner (Art. 455).
value and only in the event that the one
who made use of them has no property and
with which to pay (Art. 455).
If the Land Owner:
and
1. Acquires the improvement, Builder,
He can either: (Art. 448)
1. Acquire improvements after paying
indemnity for:
a. Necessary expenses, and
b. Useful expenses which could
either be:
a. Original costs of improvements
b. Increase in the value of the
whole (Art. 546 & 443)
2. Sell the land to builder and planter or
collect rent from sower unless the
value of the land is considerably
greater than the building etc., in
which case, the builder and planter
shall pay rent.
The parties shall agree upon the
terms of the lease and in case of
disagreement, the court shall fix the
terms thereof.
Good Faith
Land Owner can either: (Art. 448)
1. Acquire improvements after paying 1.
indemnity for:
a. Necessary expenses, and
b. Useful expenses which could
either be:
a. Original costs of
improvements
b. Increase in the value of the
whole (Art. 546 & 443)
2. Sell the land to builder and planter
or collect rent from sower unless the
value of the land is considerably 2.
greater than the building etc., in
which case, the builder and planter
shall pay rent.
The parties shall agree upon the
terms of the lease and in case of
disagreement, the court shall fix the
terms thereof.
Without subsidiary liability for cost
of materials
Good Faith
1. Option to:
a. Acquire improvements without
paying indemnity and collect
damages (Art. 445 & 449)
b. Order the demolition of work or
restoration to former condition
and collect damages in both
cases (Art. 450)
c. Sell the land to builder and
planter or rent it to the sower,
CIVIL LAW
Builder, Planter, Sower Owner of Materials
Good Faith Good Faith
1. Collect value of materials primarily
from builder, planter, sower,
subsidiarily from land owner (Art.
455) or
2. Remove the materials only if w/o
injury to the work constructed, or
Planter, or Sower may demand from the without the plantings, constructions
landowner the value of the materials and or works being destroyed (Art. 447).
labor (Art 455).
NOTE: Landowner is subsidiarily
And he has the right to retain the thing liable only if he appropriates/acquires
(and cannot be required to pay rent) until the improvements.
indemnity is paid (Art. 546).
If the useful improvements can be
removed without damage to the principal
thing, the possessor in good faith may
remove them, unless the person who
recovers the possession exercises the
other (Art. 547 & 447)
2. Sells the land or rents it, Builder or Planter
cannot be obliged to buy the land if its
value is considerably more than that of the
building or trees.
In such case, he shall pay reasonable rent.
The parties shall agree upon the terms of
the lease and in case of disagreement, the
court shall fix the terms thereof (Art. 448).
Good Faith Bad Faith
If the Land Owner: 1. Loses materials without right to
indemnity (Art. 449)
Acquires the improvement, Builder, 2. Pays damages (Art. 451)
Planter, or Sower has the right to retain
the thing (and cannot be required to pay The builder, planter or sower would be
rent) until indemnity is paid (Art. 546). considered merely an agent of the owner of
materials.
If the useful improvements can be
removed without damage to the principal Therefore, the provisions of Article 449 of
thing, the possessor in good faith may the Civil Code will apply by analogy. He is
remove them, unless the person who even liable for damages (Rabuya, 2008).
recovers the possession exercises the
other (Art. 547).
Sells or rents it, Builder or Planter cannot
be obliged to buy the land if its value is
considerably more than that of the
building or trees.
In such case, he shall pay reasonable rent.
The parties shall agree upon the terms of
the lease and in case of disagreement, the
court shall fix the terms thereof (Art. 448).
Without indemnity to owner of materials
and collects damages from him.
Bad Faith Bad Faith
1. Lose improvements without right to be 1. Recover value from builder, planter,
indemnified unless the landowner sells the sower (in pari delicto)
land (Art. 449)
2. If builder, planter, sower acquired
2. Recover necessary expenses for improvements, remove the materials only if
preservation of land without the right to retain w/o injury to the work constructed, or
the thing until the indemnity is paid (Art. 452 without the plantings, constructions or
& 546) works being destroyed (Art. 447)
3. No action against land owner; and
16
 UST LAW PRE-WEEK NOTES 2017

and collect damages in both
cases (Art. 450)
2. Has right to demand damages from
both (Art. 451)
3. Pay necessary expenses for
preservation (Art. 452 & 546)
4. Not subsidiarily liable to the owner
of the materials because as to him,
the two acted in bad faith (De Leon,
2006)
Bad Faith
3. Pay the value of the materials to the
owner of the materials. 4. May be liable to the land owner for
damages (Art. 451)
Since both the owner of the materials and the
builder, etc. acted in bad faith, as between
them, they are treated as having both acted in
good faith (De Leon, 2006)
4. Pay damages to land owner (Art. 451).
Bad Faith Bad Faith

Same as though both acted in good faith (in pari delicto) (Art. 453)

Bad Faith Good Faith Good Faith

1. Acquires improvements after paying If he pays the owner of the materials, plants or 1. Collect value of materials primarily
indemnity and damages, unless the latter seeds: from builder, planter, sower, subsidiarily
decides to remove (Art. 454, 447 & 443). from land owner (Art. 455) or
i. He may demand from the landowner the
2. Cannot compel builder, planter and value of the materials and labor (Art 455) 2. Remove the materials in any event,
sower to buy land. and shall also be obliged to the reparation with a right to be indemnified for damages
of damages (Art. 447) or (Art. 447)
ii. Remove the materials in any event, with a
right to be indemnified for damages (Art.
454 & 447)
Bad Faith Bad Faith Good Faith
The owner of the land shall answer 1. Collect value of materials primarily
subsidiarily for their value and only in Pay value of materials to its owner (Art. 455) from builder, planter, sower, subsidiarily
the event that the one who made use of from land owner (Art. 455) or
them has no property with which to pay and
(Art. 455) 2. Remove the materials in any event,
If the Land Owner: with a right to be indemnified for damages
and (Art. 447)
1. Acquires the improvement, Builder,
Land Owner can either: (Art. 448) Planter, or Sower may demand from the
landowner the value of the materials and labor
1. Acquire improvements after paying (Art 455)
indemnity for:
a. Necessary expenses, and And he has the right to retain the thing (and
b. Useful expenses which could cannot be required to pay rent) until indemnity
either be: is paid (Art. 546).
i. Original costs of
improvements If the useful improvements can be removed
ii. Increase in the value of the without damage to the principal thing, the
whole (Art. 546 & 443) possessor in good faith may remove them,
unless the person who recovers the possession
2. Sell the land to builder and planter or exercises option 2. (Art. 547 & 447)
collect rent from sower unless the value
of the land is considerably greater than 2. Sells or rents it, Builder or Planter cannot
the building etc., in which case, the be obliged to buy the land if its value is
builder and planter shall pay rent. considerably more than that of the building or
trees.
The parties shall agree upon the terms of
the lease and in case of disagreement, the In such case, he shall pay reasonable rent.
court shall fix the terms thereof.
The parties shall agree upon the terms of the
lease and in case of disagreement, the court
shall fix the terms thereof (Art. 448).
Good Faith Bad Faith Good Faith
1. Option to: 1. Lose improvements without right to be 1. Collect value of materials primarily
a. Acquire improvements without indemnified unless the landowner sells the land from builder, planter, sower, subsidiarily
paying indemnity and collect (Art. 449) from land owner (Art. 455) or
damages (Art. 445 & 449).
b. Order the demolition of work or 2. Recover necessary expenses for 2. Remove materials in any event if
restoration to former condition preservation of land without the right to retain builder, planter, sower acquired materials.
and collect damages in both the thing until the indemnity is paid (Art. 452 &
cases (Art. 450). 546)
c. Sell the land to builder and
planter or rent it to the sower, 3. Pay value of materials to its owner plus
and collect damages in both damages (Art. 455)
cases (Art. 450).
2. Pay necessary expenses for 4. Pay damages to land owner (Art. 451)
preservation (Art. 452 & 546).

3. Subsidiarily liable to owner of

materials

Bad Faith Good Faith Bad Faith

17
 CIVIL LAW

1. Acquires improvements after paying If he pays the owner of the materials, plants or 1. Lose materials without right to
indemnity and damages, unless the seeds: indemnity (Art. 449)
builder, planter or sower decides to
remove (Art. 454, 447 & 443). i. He may demand from the landowner the 2. Pay damages (Art. 451)
value of the materials and labor (Art 455)
2. Cannot compel builder, planter and and shall also be obliged to the reparation The builder, planter or sower would be
sower to buy land. of damages (Art. 447) or considered merely an agent of the owner of
ii. Remove the materials in any event, with a materials.
right to be indemnified for damages (Art.
454 & 447) Therefore, the provisions of Article 449 of
the Civil Code will apply by analogy. He is
even liable for damages (Rabuya, 2008).

Rights of owners over the thing in adjunction

OWNER OF THE PRINCIPAL OWNER OF THE ACCESSORY
Good Faith Good Faith
1. Acquire accessory and pay owner of the accessory for its 1. Receive payment for value of accessory; or
value; or 2. GR: Demand separation provided the thing suffers no injury.
2. Demand separation provided the thing suffers no injury. XPN: If accessory is more precious than principal, he may
demand separation w/ or w/o injury to the thing.
Good Faith Bad Faith
Acquire accessory w/o paying the owner of accessory and Lose accessory and pay damages.
entitled to damages.
Bad Faith Good Faith
1. Pay value of accessory and pay damages; OR 1. Receive payment and damages; or
2. Have the things separated, even though there is injury to 2. Have accessory separated w/ or w/o injury to principal and
the principal and pay damages. receive damages.
Bad Faith Bad Faith
Same as though both acted in good faith.

Rules regarding mixtures

1st Owner 2nd Owner
By Will of Both Owners or by Accident
Good Faith Good Faith
1. Right is subject to stipulations; OR
2. Right is in proportion to the part belonging to him (Co-ownership arises)
By Will of Only 1 Owner/ By Chance
Good Faith Good Faith
1. Have the things separated provided the thing suffers no injury; OR
2. If cannot be separated w/o injury, acquire interest on mixture in proportion to his part (co-ownership)
Bad Faith
Good Faith
(caused the mixture)
1st owner will lose his part on the mixture and pay damages to the 2 nd 2nd owner will acquire entire mixture and entitled to
owner damages
Good Faith
Bad Faith
(caused the mixture)
As if both acted in GF, because the 2nd owner in GF was the one who As if both acted in GF, since the 1st owner is in BF and the
caused the ratification, because the 1st owner 2nd owner who caused the mixture in GF in a way ratifies
the BF of 1st owner.

As if both acted in GF, because the 2nd owner in GF was the one who As if both acted in GF, since the 1st owner is in BF and the
caused the ratification, because the 1st owner 2nd owner who caused the mixture in GF in a way ratifies
the BF of 1st owner.

Respective rights of the maker and the owner of the 1. Acquire the work and
materials in specification indemnify the maker for
Maker (M) Owner of Materials (OM) his labor; or
Good Faith Good Faith 2. Demand indemnity for the
material.
GR: Appropriate the thing Receive payment for value of
transformed and pay the materials.
owner of the materials for its
Good Faith Good Faith
value.
1. Receive payment for value 1. Appropriate new thing and
XPN: If the material is more of his work; or pay the maker for the work;
precious than the thing 2. Appropriate the new thing or
transformed, the owner of the and pay the owner of 2. Receive payment for value
materials has the option to: materials for its value. of materials.
Bad Faith Good Faith

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 UST LAW PRE-WEEK NOTES 2017

1. Lose the new thing and 1. Appropriate the new thing 5. To oppose to any act of alteration (Art. 491) even if
pay damages to owner of without paying and receive beneficial to the co-owners
the materials; or damages; or 6. To protect against acts of majority which are prejudicial to
2. Pay value of materials and the minority (Art. 492, (3))
damages to owner of the NOTE: Not available if 7. To exercise legal redemption
materials. the new thing is more 8. To ask for partition (Art. 494)
valuable than materials 9. Right to exempt himself from obligation of paying necessary
for scientific or artistic expenses and taxes by renouncing his share in the pro-
reasons. indiviso interest; but cannot be made if prejudicial to co-
ownership
2. Receive payment for the 10. Right to make repairs for preservation of things can be
value of materials and made at will of one co-owner; receive reimbursement
damages. therefrom; notice of necessity of such repairs must be given
to co-owners, if practicable
QUIETING OF TITLE TO OR INTEREST IN AND REMOVAL OR 11. Right to full ownership of his part and fruits
PREVENTION OF CLOUD OVER TITLE OT INTEREST IN REAL 12. Right to alienate, assign or mortgage own part; except
PROPERTY personal rights like right to use and habitation
13. Right of pre-emption
Q: What are the requisites for quieting of title? 14. Right to be adjudicated thing (subject to right of others to
be indemnified)
A: 15. Right to share in proceeds of sale of thing if thing is
1. Plaintiff must have a legal or equitable title to, or interest in indivisible and they cannot agree that it be allotted to one
the real property which is the subject matter of the action; of them.
2. There must be cloud in such title;
3. Such cloud must be due to some Duties/liabilities of co-owners
a. Instrument; 1. Share in charges proportional to respective interest;
b. Record; stipulation to contrary is void
c. Claim; 2. Pay necessary expenses and taxes – May be exercised by
d. Encumbrance; or only one co-owner
e. Proceeding which is apparently valid but is in truth 3. Pay useful and luxurious expenses – If determined by
invalid, ineffective, voidable or unenforceable, and is majority
prejudicial to the plaintiff’s title; and 4. Duty to obtain consent of all if thing is to be altered even if
4. Plaintiff must beneficial; resort to court if non-consent is manifestly
a. return to the defendant all benefits he may have prejudicial
received from the latter; or 5. Duty to obtain consent of majority with regards to
b. reimburse him for expenses that may have redounded administration and better enjoyment of the thing;
to his benefit. controlling interest; court intervention if prejudicial –
Appointment of administrator
Q: What is the difference between an action to quiet title and 6. No prescription to run in favor of a co-owner as long as he
action to remove cloud on title? recognizes co-ownership; requisites for acquisition through
prescription:
A: a. He has repudiated through unequivocal acts
b. Such act of repudiation is made known to other co-
owners
ACTION TO REMOVE c. Evidence must be clear and convincing
ACTION TO QUIET TITLE
CLOUD ON TITLE 7. Co-owners cannot ask for physical division if it would
To put an end to troublesome For the removal of a possible render thing unserviceable; but can terminate co-
litigation with respect to the foundation for a future ownership.
property involved hostile claim 8. After partition, duty to render mutual accounting of benefits
A remedial action A preventive action and reimbursements for expenses.
Involving a present adverse To prevent a future cloud on POSSESSION
claim the title
Q: What are the modes of acquiring possession (FAMS)
CO-OWNERSHIP 1. By Material occupation (detention) of a thing or the
exercise of a right (quasi-possession). Includes constitutum
General rights of each co-owner as to the thing owned in possessorium or traditio brevi manu.
common 2. By Subjection of the thing/right to our will which does not
require actual physical detention or seizure. Includes
1. To use the thing according to the purpose intended provided traditio longa manu and traditio simbolica..
that: 3. By constructive possession or proper Acts and legal
a. It is w/o prejudice to the interest of the co-ownership; Formalities such as succession, donation, execution of
and public instruments. (Art. 531)
b. w/o preventing the use of other co-owners (Art. 486).
Rights of a possessor
2. To share in the benefits in proportion to his interest,
provided the charges are borne in the same proportion (Art. GOOD FAITH BAD FAITH
485). As to fruits received
Entitled to the fruits Shall reimburse the fruits
NOTE: A contrary stipulation is void. Hence, benefits cannot received before the received and those which the
be stipulated upon by the co-owners. possession is legally legitimate possessor could
interrupted have received and shall have
3. Each co-owner may bring an action for ejectment (Art. 487). the a right only to necessary
expenses (Art. 546, par. 1) and
NOTE: Action for ejectment covers; forcible entry, expenses in the production,
unlawful detainer, accion publiciana, quieting of title, gathering and preservation of
accion reivindicatoria, replevin. such fruits (Art. 443)
4. To compel other co-owners to contribute to expenses for As to pending fruits
preservation of the thing (Art. 488)

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 CIVIL LAW

Liable with legitimate None Exercise acts of ownership by a usufructuary

possessor for expenses of
cultivation and shall share in GR: A usufructuary cannot exercise acts of ownership such as
the net harvest in proportion alienation or conveyance.
to the time of their XPNs: When what is to be alienated or conveyed is a: (CIA)
possession 1. Consumable property
As to expenses: 2. Property Intended for sale;
(Necessary expenses) 3. Property which has been Appraised when delivered.
Right of reimbursement and Right of reimbursement only
retention NOTE: If it has not yet been appraised or if it is not a consumable:
(Useful expenses) return the same quality (mutuum)
Right of reimbursement, None
retention and limited right of Rights of the usufructuary as to advances and damages
removal The right to be:
(Ornamental Expenses) 1. Reimbursed for indispensable extraordinary repairs made
Shall not be refunded but he Shall not be refunded but he by him in the amount equal to the increase in value of the
has a limited right of has a limited right of property (Art. 594)
removal, i.e. he may remove removal, i.e. he may remove 2. Reimbursed for taxes on the capital advanced by him (Art.
if the principal thing suffers if the principal thing suffers 597, (2))
no injury thereby, and if the no injury thereby, and if the 3. Indemnified for damages caused by usufructuary to the
lawful possessor does not lawful possessor does not naked owner (Art. 581)
prefer to refund the amount prefer to retain them by
expended paying its value at the time EASEMENTS
he enters into possession
There can be no easement over another easement because an
As to liability in case of deterioration or loss
easement may be constituted only on a corporeal immovable
No liability, unless due to his Always liable property. An easement, although it is a real right over an
fraudulent act or negligence immovable, is not a corporeal right. (1995 BAR)
Possession cannot be recognized in two different personalities
except in case of co-possession when there is no conflict. DOMINANT ESTATE SERVIENT ESTATE
Criteria in case there is a dispute of possession of two or Immovable in favor of That property or estate
more persons which, the easement is which is subject to the
established dominant estate
1. Present/actual possessor shall be preferred
2. If there are 2 possessors, the one longer in possession Upon which an obligation
3. If the dates of possession are the same, the one with a title Which the right belongs
rests.
If all of the above are equal, the fact of possession shall be
judicially determined, and in the meantime, the thing shall be Requisites for easement of right of way (1996, 2005, 2010
placed in judicial deposit (Art. 538). BAR)
1. The easement must be established at the point least
USUFRUCT prejudicial to the servient estate (Art. 649)
2. Claimant must be an owner of enclosed immovable or with
Rights of the usufructuary as to the thing and its fruits real right
3. There must be no adequate outlet to a public highway (Art.
1. To receive the fruits of the property in usufruct and half of 649, (1))
the hidden treasure he accidentally finds on the property 4. The right of way must be absolutely necessary not mere
(Arts. 566, 438) convenience
2. To enjoy any increase which the thing in usufruct may 5. The isolation must not be due to the claimant’s own act (Art.
acquire through accession (Art. 571) 649)
3. To personally enjoy the thing or lease it to another (Arts. 6. There must be payment of proper indemnity.
572-577) generally for the same or shorter period as the
usufruct Least prejudicial to the servient estate (1996, 2000, 2005,
4. To make such improvements or expenses on the property 2010 BAR)
he may deem proper and to remove the improvements “Least prejudicial” in determining the right of way means it is the
provided no damage is caused to the property (Art. 579) shortest way and the one which will cause the least damage to
5. To set-off the improvements he may have made on the the property to the servient estate in favor of the dominant
property against any damage to the same (Art. 580) estate.
6. To retain the thing until he is reimbursed for advances for
extraordinary expenses and taxes on the capital (Art. 612) Easements are extinguished by (MARINE-CREW) (2001,
7. To collect reimbursements from the owner for
2010 BAR)
indispensable extra ordinary repairs, taxes on the capital he
advanced, and damages caused to him
8. To remove improvements made by him if the same will not 1. Merger of ownership of the dominant and servient owner
injure the property
NOTE: The merger must be absolute and complete, not
Rights of the usufructuary as to the usufruct itself temporary. In the latter case, there is only suspension of
1. To alienate, pledge or mortgage the right of usufruct, even easement.
by gratuitous title (Art. 572)
2. In a usufruct to recover property/real right, to bring the 2. Annulment of the title to the servitude
action and to oblige the owner thereof to give him the 3. Redemption agreed upon
proper authority and the necessary proof to bring the 4. Permanent Impossibility to use the easement
action (Art. 578). 5. Non-user : 10 years
3. In a usufruct of part of a common property, to exercise all
the rights pertaining to the co-owner with respect to the Reckoning point:
administration and collection of fruits or interests.

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 UST LAW PRE-WEEK NOTES 2017
a. Discontinuous – counted from the day they ceased to
be used.
b. Continuous – counted from the day an act adverse to
the exercise takes place.
6. Expiration of the term or fulfilment of the resolutory
condition
7. Bad Condition – when either or both estates fall into such a
condition that the easement could not be used but this is a
mere suspension of easement since possibility of use
revives the easement.
8. Resolution of the right of grantor to create the easement (as
when the vendor a retro redeems the land)
9. Expropriation of the servient estate
10. Waiver by the dominant owner gathered from positive acts
(NCC, Art. 631).
NUISANCE
Any act, omission, establishment, business, condition of
property, or anything else which:
1. Injures or endangers the health or safety of others; or
2. Annoys or offends the senses; or
3. Shocks, defies or disregards decency or morality; or
4. Obstructs or interferes with the free passage of any public
highway or street, or any body of water; or
5. Hinders or impairs the use of property (Art. 694). (2005,
2006 BAR).
Q: What is the doctrine of attractive nuisance?
One who maintains on his premises dangerous instrumentalities
or appliances of a character likely to attract children in play, and
who fails to exercise ordinary care to prevent children from
playing therewith or resorting thereto, is liable to a child of
tender years who is injured thereby, even if the child is
technically a trespasser in the premises (Jarco Marketing Corp. v.
CA, G.R. No. 129792, December 21, 1999).
MODES OF ACQUIRING OWNERSHIP
1. Occupation
2. Law
3. Donation
4. Tradition
5. Intellectual creation
6. Prescription
7. Succession
DONATIONS
Requisites of donation (ACID)
1. Donor must have Capacity to make the donation
2. He must have donative Intent (animus donandi)
3. There must be Delivery in certain cases
4. Donee must Accept or consent to the donation during the
lifetime of the donor and of the donee in case of donation
inter vivos (Art. 746); whereas in case of donation mortis
causa, acceptance is made after donor’s death because they
partake of a will (Art. 728)
Reversion in donation
It is a condition established in the deed of donation which has for
its effect the restoration or return of the property donated to the
donor or his estate or in favor of other persons who must be
living at the time of the donation for any cause or circumstances
(Art. 757). If the reversion is in favor of other persons who are
not all living at the time of the donation, the reversion stipulated
shall be void, but the donation shall remain valid.
Limitations imposed by law in making donations inter vivos
1. Donor must reserve sufficient means for his support and for
his relatives who are entitled to be supported by him (Art.
750).
21
2. Donation cannot comprehend future property except
donations between future husband and wife (See Art. 84
FC).
3. No person may give by way of donation more than he may
give by will
Q: What are the formalities for donation of rel/personal
properties?
1. As regards movable property: (1998, 2000, 2007 BAR)
a. With simultaneous delivery of property donated:
i. For P 5,000 or less – May be oral/written
ii. For more than P 5,000 – Written in public or
private document
b. Without simultaneous delivery:
i. The donation and acceptance must be written in a
public or private instrument (Statute of Frauds),
regardless of value. Otherwise, donation is
unenforceable.
2. As regards immovable property: (1993, 2000, 2010 BAR)
a. Must be in a public instrument specifying
i. The property donated and
ii. The burdens assumed by the donee
b. Acceptance may be made:
i. In the same instrument or
ii. In another public instrument, notified to the
donor in authentic form, and noted in both deeds.
Otherwise, donation is void.
Donations prohibited by law (1990, 2000 BAR)
Donations made: (LAW SCRA POP)
1. By individuals, associations or corporations not permitted
by Law to make donations; (Art. 1027)
2. By persons guilty of Adultery or concubinage at the time of
donation; (Art. 739)
NOTE: The action for declaration of nullity may be brought
by the spouse of the donor or donee; and the guilt of the
donor and donee may be proved by preponderance of
evidence.
3. By a Ward to the guardian before the approval of accounts;
(Art. 1027)
4. By Spouses to each other during the marriage or to persons
of whom the other spouse is a presumptive heir. (Art. 87,
FC)
5. Between persons found guilty of the same Criminal offense,
in consideration thereof; (Art. 739)
6. To Relatives of such priest, etc. within the 4th degree, or to
the church to which such priest belongs; (Art. 1027)
7. To an Attesting witness to the execution of donation, if there
is any, or to the spouse, parents or children or anyone
claiming under them; (Art. 1027)
8. To the Priest who heard the confession of the donor during
the latter’s last illness, or the minister of the gospel who
extended spiritual aid to him during the same period; (Art.
1027)
9. To a public Officer or his/her spouse, descendants or
ascendants in consideration of his/her office; (Art. 739)
10. To a Physician, surgeon, nurse, health officer or druggist
who took care of the donor during his/her last illness; (Art.
1027)
NOTE: Any person who is forbidden from receiving any
donation under Art. 739 cannot be named beneficiary of a life
insurance policy by the person who cannot make any donation
to him (Art. 2012).
Grounds for revocation or reduction
1. Under Art. 760
a. Birth of a donor’s child or children (legitimate,
legitimated, or illegitimate) after the donation, even
though born after his death.
b. Appearance of a donor’s child who is missing and
thought to be dead by the donor.
c. Subsequent adoption by the donor of a minor child.
 CIVIL LAW

2. Under Art. 764 –When the donee fails to comply with any of When it is possessed through a
the conditions which the donor imposed upon the donee. crime such as robbery, theft, or
estafa.
3. Under Art. 765 – by reason of ingratitude (EXCLUSIVE)
a. If the donee should commit some offense against the NOTE: The person who cannot
person, the honor or the property of the donor, or of invoke the right of prescription is
his wife or children under his parental authority By Offender the offender or person who
b. If the donee imputes to the donor any criminal offense, committed the crime or offense,
or any act involving moral turpitude, even though he not a subsequent transferee who
should prove it, unless the crime or act has been did not participate in the crime or
committed against the donee himself, his wife or offense, unless the latter knew the
children under his authority criminal nature of the acquisition
c. If he unduly refuses him support when the donee is of the property by the transferor.
legally or morally bound to give support to the donor (NCC, Art. 1133, Pineda Succession
and Prescription, p. 651, 2009)
Revocation of perfected donations

Once a donation is perfected, it cannot be revoked without the

consent of the donee except on grounds provided by law (Arts.
1. An action to recover a
760, 764, 765).
registered land by the owner
2. Right to petition for the
Obligations of the donee upon the revocation or reduction
Registered issuance for the issuance of a
of donation
Lands (PD Writ of Possession filed by the
1529) applicant for registered land
1. Return the thing or the object of the donation
2. If the property had already been alienated and could not be
NOTE: Similarly, an action to
recovered anymore, its value shall be paid to the donor. The
recover possession of a registered
value shall be the price of the property estimated at the time
land never prescribes.
of the perfection of the donation
3. If the property had been mortgaged, the donor may pay the 1. Action legal
mortgaged obligations, subject to reimbursement by the Imprescriptible
to demand a
donee (Art. 762). right of way
2. To abate a
PRESCRIPTION nuisance
One acquires ownership and other real rights through the lapse
Action to
of time in the manner and under the conditions laid down by law.
quiet title if Imprescriptible
In the same way, rights and actions are lost by prescription (NCC,
plaintiff in
Art. 1106). possession
Acquisitive and extinctive prescription

1. Acquisitive prescription - the acquisition of right by the Applies to both action and
lapse of time under the conditions laid down by law (NCC, defense.
Article 1106, par. 1), which may be ordinary or extra-
ordinary. Void NOTE: However, an action to
a. Ordinary Acquisitive Prescription- requires possession contracts annul a voidable contract
of things in good faith and with just title for the time prescribes after 4 years
fixed by law which is 10 years.
b. Extraordinary Acquisitive Prescription- the acquisition Action to As long as the co‐ownership is
of ownership and other real rights without the need of demand recognized expressly or impliedly
title or of good faith or any other condition and would partition (NCC, Art. 494)
prescribe in 30 years (De Leon, 2011).
NOTE:
2. Extinctive prescription or limitation of actions- loss of Distinguished
property rights or actions through the possession by from laches
another of a thing for the period provided by law or failure
to bring the necessary action to enforce one’s right with in Right of reversion or
the period fixed by law. Rights and actions are lost by the reconveyance to the State of the
lapse of time (NCC, Arts. 1106 and 1139). public properties registered and
which are not capable of private
NOTE: It is also referred to as prescription of actions, appropriation or private
statute of limitations, and statute of repose. Property of acquisition does not prescribe
public
Instances when prescription is not allowed dominion Note: In contrast, where private
property is taken by the
NO PRESCRIPTION Government for public use
APPLICABLE without first acquiring title
thereto either through
expropriation or negotiated sale ,
the owner’s action to recover the
land or the value thereof does not
prescribe.

22
 UST LAW PRE-WEEK NOTES 2017

Prescription or limitation of actions Non-compliance From the non-

with any compliance with
4 years
ACTIONS PRESCRIPTIVE PERIOD condition the condition
Recover Movables 8 years (good faith)or 4 imposed
years (bad faith) from the From the time the
time the possession is lost donor had learned
(NCC, Art. 1140, Pineda of the donee’s act
Act of
Succession and 1 year of ingratitude,
ingratitude
Prescription, p. 666, 2009) provided it was
Recover Immovables 30 years (Recover possible for him
ownership) (NCC, Art. to file an action.
1141)
PART IV – OBLIGATIONS AND CONTRACTS
10 years (Recover real
right of possession) (NCC,
OBLIGATIONS
Art. 555 (4), Pineda
Succession and
Essential elements of an obligation:
Prescription, p. 667, 2009)
Mortgage Action 10 years from default of
1. Juridical tie or vinculum juris or efficient cause
mortgagor (NCC, Art. 1142)
2. Active subject [creditor (CR) or obligee]
Based on written 10 years 3. Passive subject [debtor (DR) or obligor]
contract 4. Object or prestation
Note: If contract is oral or
quasi, prescriptive period Q: Distinguish briefly but clearly between: Civil obligation
is 6 years (NCC, Art. 1145) and natural obligation. (2015, 2004, 1989 BAR)
Based on obligation 10 years from the time the
created by law right of action accrues A: Civil obligation is a juridical necessity to give, to do and not to
do. It gives the creditor the legal right to compel by an action in
10 years from the day court the performance of such obligation.
Based on judgment judgment became final and
executory (NCC, Art. 1144) A natural obligation is based on equity and natural law. There is
Based upon an injury to 4 years no legal right to compel performance thereof but if the debtor
the rights of plaintiff voluntarily pays it, he cannot recover what was paid.
Based on quasi‐delicts 4 years (NCC, Art. 1146)
SOURCES OF OBLIGATIONS
Forcible entry and 1 year
detainer Q: What are the sources of obligations?
Defamation 1 year (NCC, Art. 1147)
A: The sources of obligations are the following:
All other actions not 5 years (NCC, Art. 1149) (1) Law;
specified (2) Contracts;
(3) Quasi-contracts;
Period of prescription of action for revocation or reduction (4) Acts or omissions punished by law; and
of donation (5) Quasi-delicts. (Art. 1157, NCC)

BASIS PRESCIPTIVE RECKONING Q: What are obligations without an agreement”? Give five
PERIOD PERIOD examples of situations giving rise to this type of obligation.
From the birth of (2007 BAR)
Birth of child 4 years
the first child
From birth of the A: “Obligations without an agreement” are obligations that do not arise
legitimated child, from contract such as those arising from:
Legitimation 4 years not from the date (1) delicts;
of marriage of the (2) quasi-delicts;
parents (3) solution indebiti;
From the date the (4) negotiorum gestio; and
recognition of the (5) all other obligations arising from law.
Recognition of child by any
an illegitimate 4 years means 1. Obligation Ex Lege
child enumerated in
Article 712 of the Obligations derived from law are NOT presumed. Only those
Family Code expressly determined in the Code or in special laws are
From the date of demandable and shall be regulated by the precepts of the law
filing of the which establishes them and as to what has not been foreseen by
original petition the provisions of Book IV of NCC (Art. 1158).
Adoption 4 years for adoption,
provided a decree What are the characteristics of a legal obligation?
of adoption is
issued thereafter The following are the characteristics of a legal obligation:
From the date an 1. Does not need the consent of the obligor;
information was 2. Must be expressly set forth in the law creating it and not
Appearance of a received as to the merely presumed; and
child believed to 4 years existence or 3. In order that the law may be a source of obligation, it should
be dead survival of the be the creator of the obligation itself (NCC, Art. 1158).
child believed to
be dead 2. Obligation Ex Contractu

What are the requisites of a contractual obligation?

23
 CIVIL LAW
The following are the requisites of a contractual obligation:
1. It must contain all the essential requisites of a contract
(NCC, Art. 1318).
2. It must not be contrary to law, morals, good customs, public
order, and public policy (NCC, Art. 1306).
What rules govern the obligations arising from contracts?
GR: These obligations arising from contracts shall be governed
primarily by the stipulations, clauses, terms and conditions of
the parties’ agreements.
XPN: Contracts with prestations that are unconscionable or
unreasonable (Pineda, 2009).
What is the principle of autonomy of will?
It is that principle which states that obligations arising from
contracts have the force of law between the contracting parties
and should be complied with in good faith (NCC, Art. 1159).
Q: Can damages suffered by a party during the period of
negotiations be recovered, if the contract is not finally
perfected?
YES. This is a case of a “pre-contractual obligation”. The offer,
however, must be clear and definite, thus leading the offeree in
good faith to incur expenses in the expectation of entering into
the contract; and the withdrawal of the offer must be without
any legitimate cause.
3. Obligation Ex Quasi- Contractu
Q: What is a quasi-contract?
A: A quasi-contract is a juridical relation which arises from
certain lawful, voluntary, and unilateral acts, to the end that no
one may be unjustily enriched or benefited at the expense of
another. The act giving rise to quasi-contract must be lawful,
thereby distinguishing it from crime, in which the act or
omission is unlawful; it must be voluntary, thus differentiating it
from quasi-delict, which is based on fault or negligence or mere
lack of foresight; and it must be unilateral, to distinguish it from
contract in which there are two parties who come to an
agreement.
What are the characteristics of a quasi-contract?
1. It must be lawful
2. It must be voluntary
3. It must be unilateral (Pineda, 2000)
What does the concept of presumptive consent mean?
It means that since a quasi-contract is a unilateral contract
created by the sole act(s) of the gestor, there is no express
consent given by the other party. The consent needed in a
contract is provided by law through presumption (Pineda, 2000).
4. Obligations Ex Delicto
1. What is the extent of civil liability arising from crimes?
(IRR)Restitution
2. Reparation for damage caused
3. Indemnity for consequential damages (Art. 104, RPC)
Q: What amount of proof or evidence is required in order to
recover on civil liability arising from a crime?
A: IT DEPENDS. If the claim is made in a criminal case, then the
proof of the facts giving rise to the liability must be beyond
reasonbale doubt; this degree of proof is necessary for the
conviction of the accused, and unless there is a judgment of
conviction, there can be no pronouncement of civil liability in the
criminal case. But if the claim for indemnity is made in a civil
case, a mere preponderance of evidence is necessary.
24
Q: What is the effect of the acquittal of the accused in a
criminal case to his civil liability arising from said crime of
which he is charged?
A: When the accused in a criminal prosecution is acquitted on
the ground that his guilt has not been proven beyond reasonable
doubt, a civil action for damages for the same act or omission
may be instituted. Such action requires only preponderance of
evidence (NCC, Art. 29).
But where the judgment of acquittal contained a declaration that
no negligence can be attributed to the accused and that the fact
from whih the civil action might arie did not exist, such acquittal
in the criminal action carried with it extinction of civil
responsibility arising therefrom (Catillo v. CA, 176 SCRA 591).
5. Obligations Ex Quasi- Delicto
Q: What is a quasi-delict?
A: A quasi-delict is a separate legal institution under the Civil
Code entirely apart and independent from a delict or crime.
Whoever by act or omission causes damage to another, there
being fault or negligence, is obliged to pay for the damage done.
Such fault or negligence, if there is no pre-existing contractual
relation is called a quasi-delict.
What are the elements of a quasi-delict (DANC)
1. Negligent or wrongful act or omission;
2. Damage or injury caused to another;
3. Causal relation between such negligence or fault and
damage;
4. No pre-exisitng contractual relationship between the
parties (NCC, Art. 2176).
NATURE AND EFFECTS OF OBLIGATIONS
In obligations to give, what are the different rights which
are available to the creditor?
We must distinguish between the rights which are available to
the creditor when the obligation is determinate and those which
are available to him when the obligation is indeterminate or
generic.
If the obligation is determinate in the sense that the object
thereof is particularly designated or physically segregated from
all others of the same class, the rights of the creditor are:
1. To compel specific performance (NCC, Art. 1165, par.1)
2. To recover damages in case of breach of the obligation (NCC,
Art. 1170).
If the obligation is indeterminate or generic, the rights of the
creditor are:
1. To ask for performance of the obligation (NCC, Art. 1246)
2. To ask that the obligation be complied with at the expense
of the debtor (NCC, Art. 1165, par. 2)
3. To recover damages in case of breach of the obligation (NCC,
Art. 1170)
1. Delay (Mora)
What are the requisites of delay (mora)?
1. Obligation must be due, demandable and liquidated;
2. Debtor fails to perform his positive obligation on the date
agreed upon;
3. A judicial or extra-judicial demand made by the creditor
upon the debtor to fulfill, perform or comply with his
obligation; and
4. Failure of the debtor to comply with such demand.
2. Mora Solvendi
What are the requisites of mora solvendi?
The following are its requisites:
 UST LAW PRE-WEEK NOTES 2017

1. Obligation pertains to the debtor;

a. The obligation or the When different dates for
2. Obligation is determinate, due and demandable, and law expressly so the performance of
liquidated; dictates; obligation is fixed by the
3. Obligation has not been performed on its maturity date; parties.
4. There is judicial or extrajudicial demand by the creditor; b. Time is of the
(Pineda, 2009) essence;
When shall demand by the creditor be not necessary in
XPNs c. Demand would be
order that delay may exist?
useless, as debtor has
rendered it beyond his
In the following instances:
power to perform; or
1. When the obligation or the law expressly so declares; or
d. Debtor has
2. When from the nature and the circumstances of the
acknowledged that he
obligation it appears that the designation of time when the is in default.
thing is to be delivered or the service is to be rendered was
a controlling motive for the establishment of the contract;
or 5. Fraud
3. When demand would be useless, as when the obligor has
rendered it beyond his power to perform [Art. 1169 (2), What are the kinds of fraud under the Civil Code?
NCC].
The following are the kinds of fraud under the Civil Code.
What are the effects of mora solvendi?
Basis Fraud in the Fraud in the
The following are its effects: performance perfection
Time of It occurs after the It occurs before or
1. Debtor may be liable for damages or interests; occurrence valid execution of simultaneous with
2. When the obligation has for its object a determinate thing, the contract. It is the creation or
the debtor may bear the risk of loss of the thing even if the employed in the perfection of the
loss is due to fortuitous event; and performance of a obligation;
3. Rescission or resolution. pre-existing
obligation;
3. Mora Accipiendi Consent Consent is free Consent is vitiated
and not vitiated; by serious
What are the requisites of mora accipiendi? (CPR) deception or
misrepresentation;
The following are its requisites: Effect It is not a ground It is a ground for
1. Offer of Performance by a capacitated debtor; for annulment of annulment of the
2. Offer must be to Comply with the prestation as it should be the contract; contract;
performed; and Remedy Action for Action for
3. Refusal of the creditor without just cause. damages only. annulment with
damages.
What are the effects of mora accipiendi?
What are the different classes of fraud in the perfection?
The following are its effects:
1. Responsibility of debtor is limited to fraud and gross They are the following:
negligence
2. Debtor is exempted from risk of loss of thing; creditor bears Basis Dolo causante Dolo incidente
risk of loss Nature It is the efficient It is not the
3. Expenses by debtor for preservation of thing after delay is cause to the giving efficient cause for
chargeable to creditor of consent to the the giving of
4. If the obligation bears interest, debtor does not have to pay contract; consent to the
it from time of delay contract;
5. Creditor liable for damages
Effect It renders the It does not affect
6. Debtor may relieve himself of obligation by consigning the
contract voidable; the validity of the
thing
contract;
Remedy Annulment with Contract remains
4. Compensatio Morae
damages. valid. Remedy is
claim for damages
What are the rules on Compensatio Morae?
only.
The following are the rules on compensatio morae:
What are the remedies of the defrauded party?

Unilateral Reciprocal He may avail of the following remedies:

Obligations Obligations 1. Specific performance (NCC, Art. 1233)
2. Resolution of the contract (NCC, Art. 1191)
Default or delay begins Delay by the other party 3. Damages, in either case
from extrajudicial or begins from the moment
judicial demand – one of the parties fulfills 6. Fortuitous Event (2002, 2008 BAR)
Time of mere expiration of the his obligation.
delay period fixed is not What are the requisites in order that an event be considered
enough in order that fortuitous? (CODE)
debtor may incur
delay. The following are the requisites:
1. Cause of breach is independent of the will of the debtor;
2. The Event is unforeseeable or unavoidable;
3. Occurrence renders it absolutely impossible for the debtor
to fulfill his obligation in a normal manner - impossibility

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 CIVIL LAW
must be absolute not partial, otherwise not force majeure;
and
4. Debtor is free from any participation in the aggravation of
the injury to the creditor.
The fortuitous event must not only be the proximate cause but it
must also be the only and sole cause. Contributory negligence of
the debtor renders him liable despite the fortuitous event
(Pineda, 2000). If the negligence was the proximate cause, the
obligation is not extinguished. It is converted into a monetary
obligation for damages.
Q: Is there a liability for loss due to fortuitous event?
A:
GR: There is no liability for loss in case of fortuitous event.
XPNs:
1. Law
2. Nature of the obligation requires the assumption of risk
3. Stipulation
4. The debtor is guilty of dolo, malice or bad faith, has
promised the same thing to two or more persons who does
not have the same interest (NCC, Art. 1165)
5. The debtor contributed to the loss (Tan v. Inchausti & Co.,
G.R. No. L-6472, March 7, 1912)
6. The possessor is in bad faith (NCC, Art. 552)
7. The obligor is guilty of fraud, negligence or delay or if he
contravened the tenor of the obligation (Juan Nakpil v.
United Construction Co., Inc. v. CA, G.R. No. L-47851, April 15,
1988)
What are the effects of fortuitous events?
1. On determinate obligation – The obligation is extinguished
2. On generic obligation – The obligation is not extinguished
KINDS OF OBLIGATIONS
1. Pure and Conditional Obligations
Q: What is a pure obligation?
A: An obligation whose performance does not depend upon a
future or uncertain event, or upon a past event or upon a past
event unknown to the parties, demandable at once (NCC, Art.
1179).
Q: What is a conditional obligation?
A: An obligation subject to a condition and the effectivity of
which is subordinated to the fulfillment or non-fulfillment of a
future and uncertain event, or upon a past event unknown to the
parties (Pineda, 2009).
Q : What is a potestative Condition? (1997, 2000, 2003 BAR)
A: A condition which depends upon the will of one of the
contracting parties (NCC, Art. 1182).
What are the effects of fulfillment of the suspensive
condition? (1999 BAR)
The following are its effects in:
1. Real obligations
GR: Retroacts to the day of the constitution of the
obligation.
XPNs: There is no retroactive effect with respect to the
fruits and interest:
a. In reciprocal obligations, the fruits and interests shall
be deemed to have been mutually compensated;
b. In unilateral obligations, the debtor appropriates the
fruits and interest received before the fulfillment of the
condition unless from the nature and circumstances of
the obligation it should be inferred that the intention of
the person constituting the same was different (NCC,
Art. 1187)
26
2. Personal obligations- the court determines the retroactive
effect of the condition fulfilled (NCC, Art. 1187)
What are the effects of fulfillment of resolutory condition?
The following are its effects in:
1. Real obligations:
a. The parties shall return to each other what they have
received (mutual restitution).
b. Obligation is extinguished.
c. In case of loss, deterioration or improvement of the
thing, Art. 1189, with respect to the debtor, shall be
applied to the party who is bound to return (NCC, Art.
1190).
2. Personal obligations – the courts shall determine, in each
case, the retroactive effect of the condition that has been
complied with (NCC, Art. 1187; Art. 1190).
Q: Distinguish between the effects of suspensive and resolutory
conditions upon an obligation. (1988 Bar)
A: It is evident that a resolutory condition affects the obligation to which it
is attached in a manner which is diametrically opposed to that of a
suspensive condition. If the suspensive condition is fulfilled, the obligation
arises or becomes effective if the resolutory condition is fulfilled, the
obligation is extinguished. If the first is not fulfilled, the juridical relation is
created; if the second is not fulfilled, the juridical relation is consolidated.
In other words, in the first, rights are not yet acquired, but there is a hope
or expectancy that they will soon be acquired; in the second, rights are
already acquired, but subject to the threat of extinction (8 Manresa, 5th
Ed., Bk. 1, p. 311.)
2. Obligations With a Period
Q: What are the rules in an obligation with a period or a
term?
A: GR: Whenever in an obligation a period is designated, it is
presumed to have been established for the benefit of both the
creditor and the debtor
XPN: When it appears from the tenor of the period or other
circumstances that it was established for the benefit of one of the
parties (NCC, Art. 1196).
1. What are the effects of the term/period?When it is for the
benefit of the creditor – Creditor may demand the
performance of the obligation at any time but the debtor
cannot compel him to accept payment before the periode
expires (e.g. “on demand”)
2. When it is for the benefit of the debtor – Debtor may oppose
any premature demand on the part of the creditor for
performance of the obligation, or if he so desires, he may
renounce the benefit of the period by performing his
obligation in advance (Manresa).
Q: In what instances may the court fix the period for the
parties? (1991, 1997, 2003 BAR)
A: In the following instances:
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. (1997, 2003 BAR)
3. In case of reciprocal obligations, when there is a just cause
for fixing the period.
4. If the debtor binds himself when his means permit him to
do so.
NOTE: Once fixed by the courts, the period cannot be changed
by the parties.
3. Alternative Obligations
 UST LAW PRE-WEEK NOTES 2017

Q: Distinguish between facultative obligations and DUE TO FORTUITOUS DUE TO DEBTOR’S

alternative obligations. EVENT FAULT
Choice Belongs to Debtor
A: All are Debtor released Creditor shall have a
BASIS FACULTATIVE ALTERNATIVE lost from the obligation right to be indemnified
OBLIGATIONS OBLIGATIONS for damages based on
Number of Only one object is Several objects the value of the last
prestation due are due thing which
May be complied May be complied disappeared/ last
Manner of with by with by fulfilling service which became
compliance substitution of any of those impossible
one that is due alternately due Some but Debtor shall deliver Debtor shall deliver
GR: Choice not all that which he shall that which he shall
pertain to debtor are lost choose from among choose from among the
the remainder remainder without
Choice pertains
Right to choose XPN: Expressly damages
only to debtor
granted to Only one Deliver that which remains
creditor or third remains
person Choice Belongs to Creditor
Fortuitous loss of All are Debtor released Creditor may claim the
Fortuitous loss
Effect of all prestation will lost from the obligation price/value of any of
extinguishes the
fortuitous loss extinguish the them with indemnity
obligation
obligation for damages
Culpable loss Some but Creditor may choose Creditor may claim any
obliges the debtor not all from among the of those subsisting OR
Culpable loss of
to deliver are lost remainder or that he may choose any of
Effect of culpable any object due
substitute which remains if those were lost, but it is
loss will give rise to
prestation only one subsists the price/value of with
liability to debtor
without liability right to damages that
to debtor can be claimed
The creditor shall Only one Deliver that which remains. In case of fault of
have the right of remains debtor, creditor has a right to indemnity for
When indemnity for damages
substitution has damages when,
been made and through the fault 4. Joint and Solidary Obligations
communicated to of the debtor, all
the creditor, the the things which What are the consequences of a joint obligation?
Liability of the
obligor is liable are alternatively
debtor
for the loss of the the object of the The following are its consequences:
thing on account obligation have 1. Each debtor is liable only for a proportionate part of the
of delay, been lost or the entire debt
negligence or compliance of the 2. Each creditor, if there are several, is entitled only to a
fraud obligation has proportionate part of the credit
become 3. The demand made by one creditor upon one debtor,
impossible. produces effects of default only as between them
If one prestation 4. Interruption of prescription caused by the demand made by
If principal
is void, the others one creditor upon one debtor, will NOT benefit the co-
obligation is void,
that are free from creditors or the co-debtors
the creditor
Void prestation any vices of 5. Insolvency of a debtor will not increase the liability of his
cannot compel
consent preserve co-debtor
delivery of the
the validity of the 6. Vices of each obligation emanating from a particular debtor
substitute
obligation or creditor will not affect the others
If some 7. In indivisible or joint obligation, the defense of res judicata
If there is prestations are of one does not extend to the others.
impossibility to impossible to
deliver the perform except What are the rules in solidary obligations?
principal thing or one - this one
Impossibility of prestation, the must be The rules are the following:
prestation obligation is delivered. 1. Anyone of the solidary creditors may collect or demand
extinguished, If all prestations payment of the whole obligation; there is mutual agency
even if the are impossible to among solidary debtors (NCC, Arts. 1214, 1215).
substitute perform, the 2. Any of the solidary debtor may be required to pay the whole
obligation is valid obligation is obligation; there is mutual guaranty among solidary
extinguished debtors (NCC, Arts. 1216, 1217, 1222).
Loss of the Where the choice 3. Each one of solidary creditors may do whatever maybe
substitute before is given to the useful to the others, but not anything prejudicial to them
the substitution is creditor, the loss (NCC, Art. 1212); however, any novation, compensation,
made through the of the alternative confusion or remission of debt made by any solidary
Loss of substitute
fault of the debtor through the fault creditors or with any of the solidary debtors shall
doesn’t make him of the debtor extinguish the obligation without prejudice to that solidary
liable renders him liable creditor’s liability for the shares of other solidary creditors
for damages (NCC. Art. 1215; Art. 1219).

Q: What are the effects of loss of objects in alternative NOTE: Solidarity is never presumed. There is solidary liability
obligations? only when:

A: 1. The obligation expressly so states;

2. The law expressly provided for solidarity;

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 CIVIL LAW

3. The nature of the obligation requires solidarity (Art. 1207);

and The following persons:
4. A solidary responsibility is imposed by a final judgment 1. Debtor himself
upon several defendants (Tolentino, 2002). 2. His heirs and assigns
3. His agents and representatives
5. Divisible and Indivisible Obligations 4. Third persons who have a material interest in the fulfilment
of the obligation
Q: What is the test of divisibility of the obligation?
Q: What is the rule in case payment is made by third
A: The test is: whether or not the prestation is susceptible of persons?
partial performance, in the sense of the possibility of realizing
the purpose which the obligation seeks to obtain. If a thing could A: GR: The creditor is not bound to accept payment or
be divided into parts and as divided, its value is impaired performance by a third person.
disproportionately, that thing is indivisible (Pineda, 2009).
XPNs:
What are the Effects of illegality of a part of a contract? 1. When made by a third person who has interest in the
fulfillment of the obligation
1. Divisible contract – illegal part is void and unenforceable. 2. Contrary stipulation (NCC, Art. 1236)
Legal part is valid and enforceable (NCC, Art. 1420).
2. Indivisible contract – entire contract is indivisible and Q: What are the rights of a third person who made the
unenforceable. payment?

6. Obligations with a Penal Clause A: The following are his/her rights:

GR: The creditor cannot demand the fulfillment of the obligation
and the satisfaction of the penalty at the same time (NCC, Art.
1227).
XPNs:
1. When the right has been clearly granted to him;
2. If the creditor has decided to require the fulfillment of the
obligation, the performance thereof should become impossible
without his fault, the penalty may be enforced (NCC, Art. 1227).
1. If the payment was made with knowledge and consent of the
debtor:
a. Can recover entire amount paid (absolute
reimbursement)
b. Can be subrogated to all rights of the creditor.
2. If the payment was made with without knowledge or against
the will of the debtor – can recover only insofar as payment
has been beneficial to the debtor (right of conditional
reimbursement)

EXTINGUISHMENT OF OBLIGATIONS Q: To whom may payment be made?

Q: What are the Principal modes of extinguishment of A: Payment may be made to:
obligations? (PaLoCo3N) 1. The person in whose favor the obligation has been
constituted
A: They are the following: 2. His successor in interest, or
1. Payment or performance 3. Any person authorized to receive it (NCC, Art. 1240).
2. Loss of the thing due
3. Condonation or remission of debt Q: What is the rule is payment was made to an unauthorized
4. Confusion or merger person?
5. Compensation
6. Novation (Art. 1231) A: GR: Payment to an unauthorized person is not a valid
payment (NCC, Art. 1241).
Other Modes (PARF)
7. Annulment Payment made by the debtor to a wrong party does not
8. Rescission extinguish the obligation as to the creditor, if there is no fault or
9. Fulfillment of a resolutory condition negligence which can be imputed to the latter (Allied Banking
10. Prescription (Art. 1231) Corp. v. Wan, et al., G.R. No. 133179, March 27, 2008).

NOTE: The enumeration is not exclusive. XPNs:

1. Payment or Performance 1. Payment to an incapacitated person if:

Q: What is meant by payment?
A: Payment is the fulfilment of the prestation due, a fulfilment
that extinguishes the obligation by the realization of the
purposes for which it is constituted (Jurado, 2010). (1998, 2009
BAR) Payment may consist not only in the delivery of money but
also the giving of a thing (other than money), the doing of an act,
or not doing of an act (NCC, Art. 1232).
What are the requisites of a valid payment? (P3AD)
The following are its requisites:
1. Capacity of the Person who pays
2. Capacity of the Person to whom payment is made
3. Propriety of the time, place, and manner of payment
4. Acceptance of the payment by the creditor
5. Delivery of the full amount or the full performance of the
prestation
Who may effect payment and compel the creditor to accept
the payment?
a. He kept the thing delivered, or
b. It has been beneficial to him (Art. 1241)
2. Payment to a third person insofar as it redounded to the
benefit of the creditor
Benefit to the creditor need not be proved: (RRE)
a. If after the payment, the third person acquires the
creditor’s Rights (Assignment);
b. If the creditor Ratifies the payment to the third
person (Ratification);
c. If by the creditor’s conduct, the debtor has been led to
believe that the third person had authority to receive
the payment (Estoppel) (NCC, Art. 1241).
3. Payment in good faith to the possessor of credit (NCC, Art.
1242)
Payment made to the creditor by the debtor after the latter has
been judicially ordered to retain the debt shall not be valid (NCC,
Art. 1243).
Special Forms of Payment

28
 UST LAW PRE-WEEK NOTES 2017

Dation in Payment Q: What are the effects of partial loss?

Dacion en pago is the delivery and transmission of ownership
of a thing by the debtor to the creditor as an accepted 1. A: Due to the fault or negligence of the debtor – Creditor has
equivalent of the performance of an existing obligation. It is a the right to demand the rescission of the obligation or to
special mode of payment where the debtor offers another demand specific performance, plus damages, in either case.
thing to the creditor who accepts it as equivalent to the 2. Due to fortuitous event:
payment of an outstanding debt (Oscar Villarta v. Gaudioso a. Substantial loss – obligation is extinguished.
Talavera Jr., G.R. No. 208021, February 3, 2016). b. Unsubstantial loss – the creditor shall deliver the thing
Application of Payment promised in its impaired condition (Art. 1264).
Designation of the particular debt being paid by the debtor
who has two or more debts or obligations of the same kind in Q: What are the effects when the thing is lost in the
favor of the same creditor to whom the payment is made possession of the debtor?
(Pineda, 2009).
Payment by Cession A: GR: It is presumed that loss is due to debtor’s fault.
Debtor cedes his property to his creditors so the latter may
sell the same and the proceeds realized applied to the debts XPN: Presumption shall not apply in case loss is due to
of the debtor (Pineda, 2009). earthquake, flood, storm or other natural calamity (Art. 1262)
Tender of Payment
Voluntary act of the debtor whereby he offers to the creditor XPN to the XPN: Debtor still liable even if loss is due to
for acceptance the immediate performance of the former’s fortuitous event when:
obligation to the latter. It is an antecedent of the consignation, 1. Debtor incurred in delay; or
that is an act preparatory to the consignation (Pineda, 2009). 2. Debtor promised to deliver the thing to two or more
persons with different interests [NCC, Art. 1165 (3)]?
Consignation
Act of depositing the object of the obligation with the court or
3. Condonation and Remission of Debt (2000 BAR)
competent authority after the creditor has unjustifiably
refused to accept the same or is not in a position to accept it
Q: What are the requisites of condonation?
due to certain reasons or circumstances. It generally requires
a prior tender of payment (Pineda, 2009).
A: Its requisites are the following:
1. Renunciation of the debt is purely gratuitous;
2. Loss of the Things Due
2. Acceptance by the debtor;
3. Must not be inofficious;
Q: When is a thing is considered lost? (DOPE)
4. Formalities provided by law on donations must be complied
with if condonation is express; and
A: A thing is considered lost if:
5. An existing demandable debt.
1. It Disappears in such a way that its existence is unknown;
2. It goes Out of commerce;
Q: What is the effect of the remission of the principal debt
3. It Perishes; or
with respect to the accessory obligation and vice versa?
4. Its Existence is unknown or if known, it cannot be
recovered.
A: The renunciation of the principal debt shall extinguish the
accessory but the waiver of the latter shall leave the former in
Q: What are the effects of loss of the thing/object of the
force (NCC, Art. 1273).
obligation?
4. Confusion or Merger of Rights
A: If the obligation is a:
1. Determinate obligation to give:
Q: What are the requisites of confusion or merger of rights?
GR: The obligation is extinguished when the object of the
A: They are the following:
obligation is lost or destroyed (NCC, Art. 1262).
1. Merger in the same person of the characters of both a
XPNs: (LAS-CD-PCG)
creditor and debtor (Art. 1275);
a. Law provides otherwise (NCC, Art. 1262)
2. Must take place in the persons of a principal creditor and a
b. Nature of the obligation requires the Assumption of
principal debtor(Art. 1276); and
risk (Ibid)
3. Merger is definite and complete.
c. Stipulation to the contrary (Ibid)
d. Debtor Contributed to the loss (Ibid)
Q: What is the effect of confusion or merger of rights?
e. Loss the of the thing occurs after the debtor incurred in
Delay (Ibid)
A: The obligation is extinguished from the time the characters of
f. When debtor Promised to deliver the same thing to
creditor and debtor are merged in the same person (NCC, Art.
two or more persons who do not have the same
1275).
interest (Art. 1165)
g. When the debt of a certain and determinate thing
Q: What is the effect of confusion or merger in one debtor or
proceeds from a Criminal offense (NCC, Art. 1268)
creditor in a joint obligation?
h. When the obligation is Generic (NCC, Art. 1263)
A:
2. Generic obligation to give:
GR: Joint obligation is not extinguished since confusion is not
definite and complete with regard to the entire obligation. A part
GR: The obligation is not extinguished because a generic
of the obligation still remains outstanding.
thing never perishes (genus nun guam perit) (NCC, Art.
XPN: Obligation is extinguished with respect only to the share
1263).
corresponding to the DR or CR concerned. In effect, there is only
XPNs:
partial extinguishment of the entire obligation. (NCC, Art. 1277;
a. In case of generic obligations whose object is a
Pineda, 2000)
particular class or group with specific or determinate
qualities (delimited generic obligation)
Q: What is the effect of confusion or merger in one debtor or
b. In case the generic thing has already been segregated
creditor in a solidary obligation?
or set aside, in which case, it has become specific.
A: If a solidary debtor had paid the entire obligation, the
3. An obligation to do – the obligation is extinguished when the
obligation is totally extinguished without prejudice to the rights
prestation becomes legally or physically impossible without
of the solidary debtor who paid, to proceed against his solidary
the fault of the obligor (NCC, Art. 1266).

29
 CIVIL LAW
co- debtors for the latter’s individual contribution or liability
(Pineda, 2000).
Q: When is confusion or merger of rights revoked?
A: If the act which created the confusion is revoked for some
causes such as rescission of contracts, or nullity of the will or
contract, the confusion or merger is also revoked. The subject
obligation is revived in the same condition as it was before the
confusion.
NOTE: During such interregnum, the running of the period of
prescription of the obligation is suspended (Pineda, 2000).
5. Compensation
Q: What are the requisites of compensation (1998, 2002,
2008, 2009 BAR)
A: They are the following:
1. Each one of the obligors must be bound principally, and that
he be at the same time a principal creditor of the other
except guarantor who may set up compensation as regards
what the creditor may owe the principal (NCC, Art. 1279,
1280);
2. Both debts consist in sum of money, or if the things due are
consumable, they be of the same kind and also of the same
quality if the latter has been stated;
3. Both debts are due;
4. Both debts are liquidated and demandable;
5. Neither debt must be retained in a controversy commenced
by third person and communicated in due time to the
debtor (neither debt is garnished) (NCC, Art. 1279).
When all the requisites mentioned in Art. 1279 of the Civil Code
are present, compensation takes effect by operation of law, and
extinguishes both debts to the concurrent amount, even though
the creditors and debtors are not aware of the compensation
(NCC, Art. 1290).
6. Novation
Q: What are the requisites of novation?
A: They are the following:
1. Valid old obligation
2. Intent to extinguish or to modify the old obligation
3. Capacity and consent of all the parties to the new obligation
(except in case of expromission where the old debtor does
not participate)
4. Substantial difference of the old and new obligation – on
every point incompatible with each other (implied
novation)
5. Valid new obligation
Novation is never presumed, it must be proven as a fact
either by:
1. Explicit declaration – if it be so declared in unequivocal
terms; or
2. Material incompatibility – that the old and the new
obligations be on every point incompatible with each other
(Art. 1292).
CONTRACTS
1. Essential Requisites of A Contract (2005 BAR)
Q: What are the essential requisites of a contract?
A: They are the following:
1. Consent;
2. Object or subject matter; and
3. Cause or consideration.
Q: What are the characteristics of a contract ? (AMOR)
A: The following are its characteristics:
30
1. Autonomy (Art. 1306); (1996, 2004 BAR)
2. Mutuality (Art. 1308); (2001, 2004, 2008 BAR)
3. Obligatoriness and consensuality (Art. 1315);
4. Relativity (Art. 1311). (1991, 1996, 2002 BAR)
NOTE: The basic principle of relativity of contracts is that
contracts can only bind the parties who entered into it, and
cannot favor or prejudice a third person, even if he is aware of
such contract and has acted with knowledge thereof. Hence, one
who is not a party to a contract, and for whose benefit it was not
expressly made, cannot maintain an action on it (Juana Vda. De
Rojales v. Marcelino Dime, G.R. No. 194548, February 10, 2016).
CONSENT (2005 BAR)
Q: What are the elements of consent?
A: The following are its elements:
1. Legal capacity of the contracting parties;
2. Manifestation of the conformity of the contracting parties;
3. Parties’ conformity to the object, cause, terms and condition
of the contract must be intelligent, spontaneous and free
from all vices of consent; and
4. The conformity must be Real.
Q: What are the requisites of a valid consent?
A: For consent to be valid, the following requisites should be
present:
1. It must be Intelligent, or with an exact notion of the matter
to which it refers;
2. Free; and
3. Spontaneous.
Who are the persons incapacitated to give consent?
They are the following:
1. Deaf-mutes who do not know how to read and write
(illiterates)
2. Insane or demented persons, unless the contract was
entered into during a lucid interval
3. Minors (Art. 1327)
EXCEPT:
a. Contracts for necessaries (NCC, Art. 1489)
b. Contracts by guardians or legal representatives and
the court having jurisdiction had approved the same
c. When there is active misrepresentation on the part of
the minor (minor is estopped)
d. Contracts of deposit with the Postal Savings Bank
provided that the minor is over 7 years of age
e. Upon reaching age of majority – they ratify the same
What are the vices of consent?
1. Mistake
2. Intimidation
3. Violence
4. Undue influence
5. Fraud
KINDS OF CONTRACT
Q: Distinguish consensual from real contracts and name at
least four (4) kinds of real contracts under the present law.
(3%) (1998 Bar)
A: Consensual contracts are those which are perfected by mere
consent (NCC, Art. 1315). Real contracts are those which are
perfected by the delivery of the object of the obligation (NCC, Art.
1316).
Examples of real contracts are deposit, pledge, commodatum
and simple loan (mutuum).
OBJECTS, CAUSE, AND FORMS OF CONTRACTS
Object
Q: What are the requisites of an object? (DELiCT)
 UST LAW PRE-WEEK NOTES 2017
A:
1. Determinate as to kind (even if not determinate, provided it
is possible to determine the same without the need of a new
contract);
2. Existing or the potentiality to exist subsequent to the
contract;
3. Must be Licit;
4. Within the Commerce of man; and
5. Transmissible.
Cause
Q: What are the requisites of a cause? (LET)
A:
1. It must Exist;
2. Be True; and
3. Be Licit.
NOTE: Every contract is presumed to have a cause; and such
cause is lawful.
Formality
Q: What is the rule on formality of contracts?
A: GR: Form is not required in consensual contracts.
XPNs: When the law requires a contract be in writing for its:
1. Validity (formal contracts); or
2. Enforceability (under Statute of Frauds).
3. For the convenience of the parties
NOTE: The parties may compel each other to reduce the verbal
agreement into writing. (2006 BAR)
Formalities required in specific contracts
1. Donations
a. Personal property- if value exceeds 5,000, the donation
and acceptance must both be written (NCC, Art. 748).
b. Real property:
i. Donation must be in a public instrument,
specifying therein the property donated and
value of charges which donee must satisfy.
ii. Acceptance must be written, either in the same
deed of donation or in a separate instrument.
iii. If acceptance is in a separate instrument, the
donor shall be notified thereof in authentic form,
and this step shall be noted in both instruments
(NCC, Art. 749).
2. Partnership where real property contributed
a. There must be a public instrument regarding the
partnership;
b. The inventory of the realty must be made, signed by
the parties and attached to the public instrument
(NCC, Art. 1773)
3. Antichresis - the amount of the principal and interest must
be in writing (NCC, Art. 2134).
4. Agency to sell real property or an interest therein -
authority of the agent must be in writing (NCC, Art. 1874).
Stipulation to charge interest - interest must be
stipulated in writing (NCC, Art. 1956).
5. Stipulation limiting common carrier's duty of
extraordinary diligence to ordinary diligence:
a. must be in writing, signed by shipper or owner
b. supported by valuable consideration other than the
service rendered by the comon carrier
c. reasonable, just and not contrary to public policy (NCC,
Art. 1744).
6. Chattel mortgage - personal property must be recorded in
the Chattel Mortgage Register (NCC, Art. 2140).
Contracts which must appear in a public document:
31
1. Donation of real properties (NCC, Art. 719);
2. Partnership where immovable property or real rights are
contributed to the common fund (NCC, Arts. 1171 & 1773);
3. Acts and contracts which have for their object the creation,
transmission, modification or extinguishment of real rights
over immovable property; sale of real property or of an
interest therein is governed by Arts. 1403, No. 2, and 1405
[NCC, Art. 1358 (1)];
4. The cession, repudiation or renunciation of hereditary
rights or of those of the conjugal partnership of gains [Art.
1358 (2)];
5. The power to administer property or any other power
which has for its object an act appearing or which should
appear in a public document or should prejudice a third
person [Art. 1358 (3)];
The cession of actions or rights proceeding from an act
appearing in a public document [Art. 1358 (4)].
REFORMATION OF INSTRUMENTS
Q: What is reformation of instruments and what are its
requisites?
A: It is a remedy to conform to the real intention of the parties
due to mistake, fraud, inequitable conduct, accident (NCC, Art.
1359).
The following are its requisites:
1. Meeting of the minds to the contract
NOTE: When there is no meeting of the minds, the proper
remedy is annulment and not reformation (Pineda, 2000)
2. True intention is not expressed in the instrument
3. By reason of: Mistake, Accident, Relative simulation, Fraud,
or Inequitable conduct.
4. Clear and convincing proof of those abovementioned.
The fundamental distinction between reformation of an
instrument and annulment of a contract is that the first
presupposes a perfectly valid contract in which there has been a
valid meeting of the minds of the contracting parties while the
second is based on a defective contract in which there has been
no meeting of the minds because the consent is vitiated (Jurado,
2010).
Q: What is the prescriptive period in reformation of
instruments?
A: 10 years from the date of the execution of the instrument.
INTERPRETATION OF CONTRACTS
Q: What is the principle of effectiveness in contract
interpretation?
A: Pursuant to this principle, where two interpretations of the
same contract language are possible, one interpretation having
the effect of rendering the contract meaningless while the other
would give effect to the contract as a whole, the latter
interpretation must be adopted (PNB v. Utility Assurance &
Surety, Co., Inc., 177 SCRA 393, 1989).
Q: What is this complementary-contracts-construed-
together doctrine?
A: Under this doctrine, an accessory contract must be read in its
entirety and together with the principal agreement (Rabuya,
2017). Thus, a promissory note and a deed of chattel mortgage
must be contrued together (Rigor v. Consolidated Orix Leasing
and Finance Corp., 387 SCRA 270, 2002); and the surety contract,
being an accessory contract, must be interpreted with its
principal contract, for instance, a loan agreement (Rabuya,
2017).
 CIVIL LAW

RESCISSIBBLE, VOIDABLE, UNENFORCEABLE, AND VOID AND INEXISTENT CONTRACTS

Q: What are the kinds of defective contracts? Differentiate each other.

BASIS RESCISSIBLE VOIDABLE UNENFORCEABLE VOID/INEXISTENT

(2004 BAR) (2004 BAR)
Origin of the Economic damage or Incapacity of one of Entered without authority or in excess Illegality (void) or
defect lesion to either one of parties to give thereof; non-compliance with Statute of absence of any of
the parties or to 3rd consent or vitiated Frauds (2009 BAR); incapacity of both essential requisites of
persons; declaration consent parties to give consent a contract
by law (inexistent)
Necessity of Suffered by – either As to the other Not necessary Not necessary
Damage/ one of parties or 3rd contracting party -
prejudice person not necessary
Curable by Curable Curable Not curable Not Curable
Prescripiton
Legal effect Valid & legally Valid & legally Inoperative until ratified; not enforceable A void or inexistent
enforceable until enforceable until in court without proper ratification contract has no force
judicially rescinded judicially annulled and effect from the
very beginning. This
rule applies to
contracts that are
declared void by
positive provision of
law (Tomas Tan Jr. v.
Tomas Hosana, G.R.
No. 190846, February
3, 2016).

Remedy Rescission or Annulment of Only personal defense Declaration of nullity

rescissory action contract of contract
Nature of Must be a direct Direct action needed Indirect attack allowed Can be attacked
action action directly or indirectly
Who can file GR: Contracting Contracting party Contracting party 3rd persons cannot
the action party; file unless their
XPN: Defrauded interest are directly
Creditors affected
Susceptibility of Susceptible but not of Susceptible Susceptible Not Susceptible
ratification ratification proper
Susceptibility Action for rescission Action for annulment Action for recovery; specific performance Action for
prescription prescribes after 4 prescribes after 4 or damages prescribes declaration of nullity
years years (10 years if based on a written contract; 6 or putting of defense
years if unwritten) of nullity does not
prescribe

ESTOPPEL no notice or knowledge that the former would assert such rights
and whose condition has so changed that the latter cannot,
Q: What is the doctrine of estoppel and to whom is it without injury or prejudice, be restored to his former state (Jose
applied? Go et al., v. BSP, G.R. No. 202262, July 8, 2015) (Bersamin, J.).

A: The doctrine of estoppel is an admission or representation NATURAL OBLIGATIONS

rendered conclusive upon the person making it, and cannot be
denied or disproved as against the person relying thereon (Art.
1431, NCC).
The doctrine of estoppel is applied only to those who were
parties to the contract and their privies or successors‐in‐interest
(Mactan Cebu International Airport Authority v. Heirs of Ga Vina
Jordan, G.R. No. 173140, January 11, 2016).
Q: What are the different kinds of estoppel.
A: There are three kinds of estoppels, to wit: (1) estoppel in pais;
(2) estoppel by deed; and (3) estoppel by laches. Under the first
kind, a person is considered in estoppel if by his conduct,
representations, admissions or silence when he ought to speak
out, whether intentionally or through culpable negligence,
"causes another to believe certain facts to exist and such other
rightfully relies and acts on such belief, as a consequence of
which he would be prejudiced if the former is permitted to deny
the existence of such facts." Under estoppel by deed, a party to a
deed and his privies are precluded from denying any material
fact stated in the deed as against the other party and his privies.
Under estoppel by laches, an equitable estoppel, a person who
has failed or neglected to assert a right for an unreasonable and
unexplained length of time is presumed to have abandoned or
otherwise declined to assert such right and cannot later on seek
to enforce the same, to the prejudice of the other party, who has
Natural obligations, not being based on positive law but on
equity and natural law, do not grant a right of action to enforce
their performance, but after voluntary fulfillment by the obligor,
they authorize the retention of what has been delivered or
rendered by reason thereof (NCC, Art. 1423).
Q: Sara borrowed P50, 000.00 from Julia and orally
promised to pay it within six months. When Sara tried to pay
her debt on the 8th month, Julia demanded the payment of
interest of 12% per annum because of Sara's delay in
payment. Sara paid her debt and the interest claimed by
Julia. After rethinking, Sara demanded back from Julia the
amount she had paid as interest. Julia claims she has no
obligation to return the interest paid by Sara because it was
a natural obligation which Sara voluntarily performed and
can no longer recover. Do you agree? Explain (2015 BAR).
A: NO. The case is not one of a natural obligation because even if
the contract of loan is verbal, the delay of Julia made her liable
for interest upon demand by Sara. This is not a case of a natural
obligation but a civil obligation to pay interest by way of
damages by reason of delay (NCC, Articles 1956; 1169; 2209).
PART V – SALES

32
 UST LAW PRE-WEEK NOTES 2017
NATURE AND FORM OF CONTRACT
Elements of a Contract of Sale
1. Essential elements – for validity:
a. Consent
b. Determinate subject matter
c. Consideration
2. Natural elements – those which are inherent in the contract,
and which in the absence of any contrary provision, are
deemed to exist in the contract
a. Warranty against eviction
b. Warranty against hidden defects
3. Accidental elements – dependent on parties’ stipulations;
Examples:
a. Conditions
b. Interest
c. Time & Place of payment
d. Penalty
Perfection of Contract
The parties must agree on the thing which is the object of the
contract and the price, nothing can be left open for further
arrangement. So long as there is any uncertainty or
indefiniteness, or future negotiations or considerations to be
had between the parties, there is not a completed contract, and
in fact, there is no contract at all. (2002, 2006 BAR)
Q: A real estate mortgage was executed by Julian as a
security for loan they obtained from Pen. When the loans
have become due and demandable, Julian failed to pay
despite several demands which prompted Pen to institute
foreclosure proceedings. Julian now alleges that he was
required by Pen to sign an "undated, unfilled, and
unnotarized" Deed of Sale, containing no consideration for
the subject property. Julian offered to pay Pen the amount
of P150,000.00 but the latter refused to accept the offer and
demanded that he be paid the amount of P250,000.00. Upon
verification with the Registry of Deeds of Quezon City, he
was informed that the title to the mortgaged property had
already been registered in the name of Pen. Was there a
valid sale?
A: NO. In a sale, the contract is perfected at the moment when
the seller obligates herself to deliver and to transfer ownership
of a thing or right to the buyer for a price certain, as to which the
latter agrees. The absence of the consideration from Julian's
copy of the deed of sale was credible proof of the lack of an
essential requisite for the sale. In other words, the meeting of the
minds of the parties so vital in the perfection of the contract of
sale did not transpire. Even assuming that Julian’s leaving the
consideration blank implied the authority of Pen to fill in that
essential detail in the deed of sale upon Julian's default on the
loan, the deed of sale was a pactum commisorium (Sps. Pen v. Sps.
Julian, G.R. No. 160408, January 11, 2016) (Bersamin, J.).
Q: When is a contract presumed to be an equitable
mortgages instead of a contract of sale?
A:
1. Price unusually inadequate;
2. Possession retained by the seller as lessee or otherwise;
3. Period of redemption extended (or granted anew) upon or
after the expiration of the right to repurchase;
4. Part of the purchase price retained by the seller;
5. Payment of taxes on the thing sold borne by the seller;
6. Any other case where it may be fairly inferred that the Real
intention of the parties is for the transaction to secure a debt or
other obligation (Art. 1602, NCC).
NOTE: Equitable mortgage vis-à-vis contract of sales was
likewise asked in 1991 and 2005 Bar.
Consummation
33
Consummation stage in a contract of sale takes place by the
delivery of the thing together with the payment of the price.
Transfer of ownership
It is tradition or delivery, which is a consequence of the sale that
transfers ownership.
Effect of Delivery
GR: Title /ownership is transferred
XPN: When the contrary is stipulated as in the case of:
1. Pactum reservatii in domini – agreement that ownership will
remain with seller until full payment of price (Contract to
sell).
Contract to sell does not transfer ownership to the buyer.
The seller retains ownership at the time of the execution of
the contract to sell (Fabio Cahayag v. Commercial Credit
Corporation, G.R. No. 168078, January 13, 2016).
2. Sale on acceptance/approval
3. Sale on return
4. There is implied reservation of ownership
Delivery deemed effective
Delivery should be coupled with intention of delivering the
thing, and acceptance on the part of the buyer to give legal effect
of the act. Without such intention, there is no such tradition.
Delivery of incorporeal property
1. When sale is made through a public instrument (NCC, Art.
1498).
2. By placing the titles of ownership in the possession of the
buyer.
3. When buyer uses and enjoys the rights pertaining to the
incorporeal property with the consent of the seller (NCC,
Art. 1501).
When delivery does not transfer title
1. Sale on Trial, Approval, or Satisfaction
2. When there is an EXPRESS RESERVATION
a. If it was stipulated that ownership shall not pass to the
purchaser until he has fully paid the price (NCC, Art.
1478)
3. When there is an IMPLIED RESERVATION
a. When goods are shipped, but the bill of lading states
that goods are deliverable to the seller or his agent, or
to the order of the seller or his agent
b. When the bill of lading is retained by the seller or his
agent
c. when the seller of the goods draws on the buyer for the
price and transmits the bill of exchange and the bill of
lading to the buyer , and the latter does not honor the
bill of exchange by returning the bill of lading to the
seller
4. When sale is not VALID
5. GR: When the seller is not the owner of the goods
XPNs:
a. Estoppel: when the owner is precluded from denying
the sellers authority to sell
b. Registered land bought in good faith (Ratio: Buyer need
not go beyond the Torrens title)
c. Order of Courts in a Statutory Sale
When the goods are purchased in a Merchant’s store,
Fair or Market (NCC, Art. 1505)
6. GR: When goods are held by a third party
XPN: Third person acknowledges to the buyer that he holds
the goods in behalf of the buyer (NCC, Art. 1521)
7. On sale or return – The ownership passes to buyer upon
delivery, but he may revest ownership in the seller by
returning or tendering the goods within the time fixed in the
contract or within reasonable time (NCC, Art. 1502).
Q: What is the effect of execution of public instrument in a
contract of sale?
 CIVIL LAW

A: The execution of a public instrument gives rise only to a prima
facie presumption of delivery. Such presumption is destroyed
when the instrument itself expresses or implies that delivery
was not intended; or when by other means it is shown that such
delivery was not effected, because a third person was actually in
possession of the thing. In the latter case, the sale cannot be
considered consummated (Equatorial Realty v. Mayfair Theater,
G.R. No. 133879, November 21, 2001).
Price
NOTE: Art. 1544 of NCC contemplates a case of double or
multiple sales by a single vendor. It is necessary that the
conveyance must have been made by a party who has an existing
right in the thing and the power to dispose of it.
CAPACITY TO BUY OR SELL
GR: All persons, whether natural or juridical, who can bind
themselves, have legal capacity to buy and sell [NCC, Art. 1489
(1)].

XPNs:
OPTION MONEY EARNEST MONEY
1. Minors, insane and demented persons and deaf-mutes who
Money given as distinct Forms part of the purchase
do not know how to write
consideration for an price
2. Persons under a state of drunkenness or during hypnotic
option contract
spell
Applies to a sale not yet Given only when there is 3. Husband and wife - sale by and between spouses
perfected already a sale
Prospective buyer is not When given, the buyer is bound XPN to XPN:
required to buy. to pay the balance. 1. Where necessaries are sold and delivered to a minor or
If buyer does not decide If sale did not materialize, it other person without capacity to act, he must pay a
to buy, it cannot be must be returned. (Villanueva, reasonable price therefor.
recovered. 2014; Pineda, 2010) 2. In case of sale between spouses:
a. when separation of property was agreed upon in
Option Contract the marriage settlements; or
b. when there has been a judicial separation of
Q: Explain the nature of an option contract. (BAR 2002) property agreed upon between them

A: An option contract is one granting a privilege to buy or sell Absolute Incapacity

within an agreed time and at a determined price. It must be
supported by a consideration distinct from the price (Art. 1479
and 1482, NCC).
Effect of a simulated sale
Where the deed of sale states that the purchase price has been
paid but in fact has never been paid, the deed of sale is null and
void ab initio for lack of consideration. Article 1471 of the Civil
Code, provides that “if the price is simulated, the sale is void”
(Catindig v. Vda. de Meneses, Roxas v. Court of Appeals, G.R.
No. 165851 & G.R. No. 165851, February 2, 2011).
NOTE: Annulment of contract is not a remedy because only
voidable contracts may be annulled.
Persons who are absolutely incapacitated to enter into a
contract of sale
1. Unemancipated minors (NCC, Art. 1327);
2. Insane or demented persons, and deaf-mutes who do not
know how to write (NCC, Art. 1327).
Contracts entered into during intervals by insane or demented
persons are generally valid (NCC, Art. 1328); whereas, those
entered into in a state of drunkenness, or during hypnotic spell,
are merely voidable (NCC, Art.1328). Contracts entered into by
such legally incapacitated persons are not void, but merely
voidable, subject to annulment or ratification (NCC, Art. 1393).
Relative Incapacity

Right of First Refusal
Q: How do you distinguish right of first refusal from an
option contract?
A: A right of first refusal is a contractual grant, not of the sale of
a property, but of the first priority to buy the property in the
event the owner sells the same. As distinguished from an option
contract, in a right of first refusal, whole the object might be
made determinate, the exercise of the right of first refusal would
be dependent not only on the owner’s eventual intention to
enter into a binding juridical relation with another but also on
terms, including the price, that are yet to be firmed up (PUP v.
Golden Horizon Realty Corp., 615 SCRA 478, May 15, 2010).
Double sales
Rule governing sale of MOVABLES
Ownership shall be transferred to the person who may have first
taken possession in good faith.
Rule governing sale of IMMOVABLES
Ownership belongs to the person who:
1. In good faith first recorded the sale in the Registry of
Property; or
2. If there is no inscription of sale on the title, ownership
passes to the person who in good faith was first in
possession; or
3. In the absence thereof, to the person who presents the
oldest title, provided there is good faith.
Persons who are relatively incapacitated to enter into a
contract of sale
1. Spouses (NCC, Art. 1490)
2. Agents, Guardians, Executors and Administrators, Public
Officers and Employees, Court Officers and Employees, and
others specially disqualified by law (NCC, Art. 1491).
Lawyers are expressly prohibited from acquiring property or
rights that may be the object of any litigation in which they may
take part by virtue of their profession (NCC, Art. 1491(5); Peña v.
De los Santos, et al., G.R. No. 202223, March 2, 2016).
Special Disqualifications
Persons specially disqualified by law to enter into contracts
of sale (ALIEN-UnOS)
1. ALIENs who are disqualified to purchase private
agricultural lands (Art. XII Secs. 3 & 7, 1987 Constitution)
2. Unpaid seller having a right of lien or having stopped the
goods in transitu, is prohibited from buying the goods
either directly or indirectly in the resale of the same at
public/private sale which he may make (NCC, Art. 1533 [5];
Art. 1476 [4])
3. The Officer holding the execution or deputy cannot become
a purchaser or be interested directly or indirectly on any
purchase at an execution (Sec. 21 Rule 39, RRC)
4. In Sale by auction, seller cannot bid unless notice has been
given that such sale is subject to a right to bid in behalf of
the seller (NCC, Art. 1476).
Q: Which between Article 173 of the Civil Code and Article
124 of the Family Code should apply to the sale of the

34
 UST LAW PRE-WEEK NOTES 2017

conjugal property executed without the consent of the 6. Pay for the expenses of the deed of sale unless there is a
spouse? stipulation to the contrary.

A: Article 124, Family Code, applies to sale of conjugal properties
made after the effectivity of the Family Code. The sale of conjugal
property without the consent of the husband was not merely
voidable but void; hence it could not be ratified. The vendees
were not buyers in good faith because they did not exercise the
necessary prudence to inquire into the wife’s authority to sell.
In the absence of the other spouse’s consent, the transaction
should be construed as a continuing offer on the part of the
consenting spouse and the third person, and may be perfected
as a binding contract upon the acceptance by the other spouse
or upon authorization by the court before the offer is withdrawn
by either or both offerors (Aggabao v. Parulan Jr., G.R. No.
165803, September 1, 2010) (Bersamin, J.).
Q: What must buyers of conjugal property exercise?
A: The buyers of conjugal property must observe two kinds of
requisite diligence, namely: (a) the diligence in verifying the
validity of the title covering the property; and (b) the diligence
in inquiring into the authority of the transacting spouse to sell
conjugal property in behalf of the other spouse. The omission to
inquire indicated their not being buyers in good faith (Aggabao
v. Parulan Jr., G.R. No. 165803, September 1, 2010) (Bersamin, J.).
EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS
BEEN LOST
Risk of Loss
GR: It is understood that the thing is lost when it:
1. perishes, or
2. goes out of commerce, or
3. disappears in such a way that its existence is unknown or
cannot be recovered (Art. 1189 (2)).
XPN: In an obligation to deliver a generic thing, the loss or
destruction of anything of the same kind does not extinguish the
obligation (Art. 1263).
Person who bears the risk of loss or deterioration
BEFORE Res perit domino – Seller is the owner
PERFECTION so seller bears risk of loss (1999 BAR)
Res perit domino
AT Contract shall be without any effect –
PERFECTION the seller bears the loss since the buyer
is relieved of his obligation under the
contract
AFTER Seller;
PERFECTION Deterioration & fruits – Buyer bears
BUT loss (Tolentino)
BEFORE
DELIVERY
Buyer becomes the owner so buyer
bears risk of loss
AFTER
DELIVERY Delivery extinguish ownership vis-a-vis
the seller & creates a new one in favor
of the buyer
Obligations of the Buyer (PAE)
1. Payment of the price
GR: Seller is not bound to deliver unless the purchase price
is paid
XPN: A period of payment has been fixed
2. Accept delivery of thing sold
3. Bear expenses for the execution and registration of the sale
and putting the goods in a deliverable state, if such is the
stipulation.
Other Obligations of the Buyer
1. To take care of the goods without the obligation to return,
where the goods are delivered to the buyer and he rightfully
refuses to accept (NCC, Art. 1587);
NOTE: The goods in the buyer’s possession are at the seller’s
risk.
2. To be liable as a depositary if he voluntarily constituted
himself as such (NCC, Art. 1587);
3. To pay interest for the period between delivery of the thing
and the payment of the price in the following cases (NCC,
Art. 1589):
a. should it have been stipulated;
b. should the thing sold and delivered produces fruits
or income; or
c. should he be in default, from the time of judicial or
extra-judicial demand for the payment of the price.
BREACH OF CONTRACT
Maceda Law; Recto Law
Q: What are the so-called "Maceda" and "Recto" laws in
connection with sales on installments? Give the most
important features of each law? (BAR 1999, 2000)
SUGGESTED ANSWER:
The MACEDA LAW (R.A. 6552) is applicable to sales of
immovable property on installments.
The most important features are:
1. After having paid installments for at least two years, the
buyer is entitled to a mandatory grace period of one month
for every year of installment payments made, to pay the
unpaid installments without interest. If the contract is
cancelled, 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.
2. 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 rescission by notarial
act (Rillo v. CA, G.R. No. 125347, June 19, 1997).

OBLIGATIONS OF THE PARTIES The RECTO LAW (Art. 1484 of the NCC) refers to sale of
movables payable in installments and limiting the right of
Obligations of the seller (DDTWTP) seller, in case of default by the buyer, to one of three remedies:
a) demand exact fulfillment; b) cancel the sale if two or more
1. Deliver the thing sold (NCC, Arts. 1458&1459); installments have not been paid; c) foreclose the chattel
2. Deliver fruits & accessions/accessories accruing from mortgage on the things sold, also in case of default of two or
perfection of sale; more installments, with no further action against the purchaser.
3. Transfer the ownership;
4. Warranties; EXTINGUISHMENT OF SALE
5. Take care of the thing, pending delivery, with proper
diligence; Causes for extinguishment of sale

35
 CIVIL LAW
1. Same causes as how an obligation is extinguished, namely:
a. Payment or performance
b. Loss of the thing due
c. Condonation or remission of the debt
d. Confusion or merger of the rights of creditor and debtor
e. Compensation
f. Novation
g. Annulment
h. Rescission
i. Fulfillment of resolutory condition
j. Prescription
2. Conventional Redemption
3. Legal redemption
ASSIGNMENT OF CREDITS
Assignment is the process of transferring gratuitously or
onerously the right of the assignor to the assignee, who would
then be allowed to proceed against the debtor (Paras, 2008).
The assignment involves no transfer of ownership but merely
effects the transfer of rights which the assignor has at the time
to the assignee.
It is an agreement by virtue of which the owner of a credit,
known as the assignor, by a legal cause, such as sale, dacion en
pago, exchange or donation, and without the consent of the
debtor, transfers his credit and accessory rights to another,
known as the assignee, who acquires the power to enforce it to
the same extent as the assignor could enforce it against the
debtor (South City Homes, Inc. v. BA Finance Corp, G. R. No.
135462, December 7, 2001).
NOTE: In assignments, a consideration is not always a requisite,
unlike in sale. Thus, an assignee may maintain an action based
on his title and it is immaterial whether or not he paid any
consideration therefor. Furthermore, in an assignment, title is
transferred but possession need not be delivered.
PART VI – LEASE
Kinds of Lease according to subject matter
1. Lease of things – whether real or personal, involving an
obligation on the part of the lessor to deliver the thing
which is the object thereof and the correlative right of the
lessee to the peaceful and adequate enjoyment thereof for a
price certain (NCC, Art. 1654); or
2. Lease of work – which refers to a contract for a piece of
work, involving an obligation on the part of the contractor
(lessor) to execute a piece of work for the employer (lessee)
in consideration of a certain price or compensation (NCC,
Art. 1713);
NOTE: Duties of a contractor who furnishes work and
materials:
a. To deliver
b. To transfer ownership
c. To warrant eviction and hidden defects
3. Lease of service – involving an obligation on the part of the
housekeeper, laborer or employee, or common carrier to do
or perform a service for the head of a family, or master,
employer, or passenger or shipper of goods, respectively, in
consideration of compensation.
NOTE: Since lease is consensual and is not imposed by law, only
the lessor has the right to fix the rents. However, the increasing
of the rent is not an absolute right on the part of the lessor.
Implied new lease or a “tacita reconduccion”
An implied new lease or tacita reconduccion will set in when the
following requisites are found to exist: a) the term of the original
contract of lease has expired; b) the lessor has not given the
lessee a notice to vacate; and c) the lessee continued enjoying
36
the thing leased for fifteen days with the acquiescence of the
lessor (Samelo v. Manotok Services, G.R. No. 170509, June 27,
2012)
Q: What are the rights and obligations of parties in case of
rescission?
A: Rescission of the lease necessarily requires the return of the
thing to the lessor. Hence, the judgment granting rescission of
the contract should also order the lessee to vacate and return the
leased premises to the lessor. However, since the sublessee can
invoke no right superior to that of his sublessor, the moment the
sublessor is duly ousted from the premises, the sublessee has no
leg to stand on. The sublessee’s right, if any, is to demand
reparation for damages from his sublessor, should the latter be
at fault (Heirs of Sevilla v. CA, G.R. No. 49823, February 26, 1992).
Q: The Spouses Mamaril parked their 6 passenger jeepneys
inside the BSP compound for a monthly fee of P300.00 for
each unit and took the keys home with them. One day, one
of the vehicles was missing and was never recovered. Is BSP
liable for the loss of the vehicle?
A: NO. A lessor-lessee relationship indubitably existed between
them and BSP. Article 1664 of NCC provides that the lessor is not
obliged to answer for a mere act of trespass which a third person
may cause on the use of the thing leased; but the lessee shall have
a direct action against the intruder. In the case at bar, BSP was
not remiss in its obligation to provide Sps. Mamaril a suitable
parking space for their jeepneys as it even hired security guards
to secure the premises; hence, it should not be held liable for the
loss suffered by Sps. Mamaril (Sps. Mamaril v. BSP, G.R. No.
179382, January 14, 2013).
Q: Explain judicial ejectment of the lessee by the lessor and
how it is effected.
A: Article 1673 of NCC mandates the rescission of the contract of
lease and the judicial ejectment of the lessee. The judicial
rescission of a contract of lease is essentially governed by Article
1659 of NCC, grounded on the breach of the parties’ statutory
obligations: in the case of the lessee, for its failure to pay the rent
or to use the property under lease for the purpose it was
intended. Article 1673, read with Section 2, Rule 70 of the Rules,
does away with the need for an independent judicial action to
rescind prior to ejectment by combining these remedies in an
unlawful detainer action.
The law of contracts (essentially, Art. 1191 for judicial rescission
and Art. 1659 for the judicial rescission of lease agreements)
firmly establishes that the failure to pay or to comply with the
contractual term does not, by itself, give rise to a cause of action
for rescission. The cause of action only accrues after the lessee
has been in default for its failure to heed the demand to pay or
to comply. With the contract judicially rescinded, the demand to
vacate finds full legal basis (Cebu Automatic Motors v. General
Milling Corp., G.R. No. 151168, August 25, 2010).
Grounds for which lessor may judicially eject lessee (BAR
1994, 2004)
1. When the period agreed upon had expired;
2. Lack of payment of the price stipulated;
3. Violation of any condition agreed upon in the contract; and
4. Lessee devotes thing lease to any use or service not
stipulated which causes the deterioration thereof.
NOTE: When the grounds relied upon for ejectment are non-
payment of rentals or violation of the conditions of lease, notice
to vacate is crucial. A demand is pre-requisite to an action for
unlawful detainer (Arquelada v. Philippine Veterans Bank, G.R.
No. 139137, March 31, 2000).
Q: What are some instances where the purchaser of the
thing leased cannot terminate the lease?
A:
1. Where the lease is recorded in the Registry of Property;
 UST LAW PRE-WEEK NOTES 2017
2. Where there is a stipulation that purchaser shall respect the
lease;
3. Where the purchaser knows the existence of the lease;
4. Where sale is fictitious;
5. Where the sale is made with right of repurchase (Jurado
Reviewer, 2009).
PART VII – PARTNERSHIP
CONTRACT OF PARTNERSHIP
Essential elements of Partnership
1. Agreement to contribute money, property or industry to a
common fund (mutual contribution to a common stock);
and
2. Intention to divide the profits among the contracting parties
(joint interest in the profits) (Evangelista v. Collector of
Internal Revenue, G.R. No. L-9996, October 15, 1987).
Q: Jose conveyed his lots in favor of his four sons in order for
them to build their residences. His sons sold the lots since
they found the lots impractical for residential purposes
because of high costs of construction. They derived profits
from the sale and paid income tax. The sons were required
to pay corporate income tax and income tax deficiency, on
the theory that they formed an unregistered partnership or
joint venture taxable as a corporation. Did the siblings form
a partnership?
A: NO. The original purpose was to divide the lots for residential
purposes. If later, they found out that it is not feasible to build
their residences on the lots, they can dissolve the co-ownership
by reselling said lots. The division on the profit was merely
incidental to the dissolution of the co-ownership which was in the
nature of things a temporary state (Obillos, Jr. v. CIR, G.R. No. L-
68118, October 29, 1985).
Q: A and B are co-owners of an inherited property. They
agreed to use the said common properties and the income
derived therefrom as a common fund with the intention to
produce profits for them in proportion to their respective
shares in the inheritance as determined in a project of
partition. What is the effect of such agreement on the
existing co-ownership?
A: The co-ownership is automatically converted into a
partnership. From the moment of partition, A and B, as heirs, are
entitled already to their respective definite shares of the estate
and the income thereof, for each of them to manage and dispose
of as exclusively his own without the intervention of the other
heirs, and, accordingly, he becomes liable individually for all the
taxes in connection therewith.
If, after such partition, an heir allows his shares to be held in
common with his co-heirs under a single management to be used
with the intent of making profit thereby in proportion to his
share, there can be no doubt that, even if no document or
instrument were executed for the purpose, for tax purposes, at
least, an unregistered partnership is formed (Ona v.
Commissioner of Internal Revenue, G.R. No. L-19342, May 25,
1972).
RESPONSIBILITIES OF A PARTNERSHIP TO PARTNERS
1. Refund the amounts disbursed by partner in behalf of the
partnership plus corresponding interest from the time the
expenses are made, not from the date of demand. (e.g. loans
and advances made by a partner to the partnership aside
from capital contribution);
2. Answer for obligations the partner may have contracted in
good faith in the interest of the partnership business;
3. Answer for risks in consequence of its management (Art.
1796).
OBLIGATIONS OF PARTNERS AMONG THEMSELVES
37
1. Contribution of property (Art. 1786)
2. Contribution of money and money converted to personal
use (Art. 1788)
3. Prohibition in engaging in business for himself (Art. 1789)
4. Contribute additional capital (Art. 1791)
5. Managing partner who collects debt (Art. 1792)
6. Partner who receives share of partnership credit (Art. 1793)
7. Damages to partnership (Art. 1794)
8. Keep the partnership books (Art. 1805)
9. Render information (Art. 1806)
10. Accountable as fiduciary (Art. 1807)
RIGHTS OF PARTNERS AMONG THEMSELVES
1. Right to reimbursement for amounts advanced to the
partnership and to indemnification for risks in consequence
of management (Art. 1796);
2. Right on the distribution of profits and losses (Art. 1797).
3. Right to associate another person with him in his share
without the consent of the other partners (Art. 1804).
NOTE: Such partnership formed between a member of a
partnership and a third person for a division of the profits
coming to him from the partnership enterprise is termed
subpartnership. (De Leon, 2010)
4. Right to free access and to inspect and copy at any
reasonable hour the partnership books (Art. 1805).
5. Right to formal account as to partnership affairs:
a. If he is wrongfully excluded from the partnership
business or possession of its property by his co-
partners;
b. If the right exist under the terms of any agreement;
c. As provided by Art. 1807;
d. Whenever there are circumstances render it just and
reasonable.
5. Right to have the partnership dissolved.
6. Property rights of a partner (Art. 1810)
OBLIGATIONS OF PARTNERSHIP/PARTNERS TO THIRD
PERSONS
1. Every partnership shall operate under a firm name. Persons
who include their names in the partnership name even if
they are not members shall be liable as a partner (Art. 1815)
2. All partners shall be liable for contractual obligations of the
partnership with their property, after all partnership assets
have been exhausted:
a. Pro rata
b. Subsidiary (Art. 1816) (1993, 2010 BAR)
NOTE: Any stipulation against the liability laid down in
Art. 1816 shall be void except as among the partners.
(Art. 1817)
The subsidiary nature of the partners’ liability with the
partnership is one of the valid defenses against a
premature execution of judgment directed to a partner
(Michael Guy v. Atty. Glenn Gacott, G.R. No. 206147,
January 13, 2016).
3. Partner as an agent of the partnership (Art. 1818) (1994
BAR)
4. Conveyance of real property belonging to the partnership
(Art. 1819)
5. Admission or representation made by any partner
concerning partnership affairs within the scope of his
authority is evidence against the partnership (Art. 1820)
6. Notice to partner of any matter relating to partnership
affairs operates as notice to partnership except in case of
fraud:
a. Knowledge of partner acting in the particular matter
acquired while a partner
b. Knowledge of the partner acting in the particular
matter then present to his mind
c. Knowledge of any other partner who reasonably could
and should have communicated it to the acting partner
(Art. 1821)
 CIVIL LAW

7. Partners and the partnership are solidarily liable to 3rd e. The business of the partnership can only be carried on
persons for the partner's tort or breach of trust (Art. 1822- at a loss
24) f. Other circumstances render a dissolution equitable
8. Liability of incoming partner is limited to:
a. His share in the partnership property for existing Effects of dissolution (2010 BAR)
obligations
b. His separate property for subsequent obligations (Art. 1. Partnership is not terminated;
1826) 2. Partnership continues for a limited purpose;
9. Creditors of partnership are preferred in partnership 3. Transaction of new business is prohibited (De Leon, 2005).
property & may attach partner's share in partnership assets
(Art. 1827) Winding up of the partnership

DISSOLUTION AND WINDING UP It is during this time after dissolution that partnership business
or affairs are being settled (De Leon, 2005).
Dissolution, Winding-up, and Termination
Ways of winding up
Winding
Dissolution Termination
up The winding up of the dissolved partnership may be done either:

A change in the Settling the Point in time 1. Judicially, under the control and direction of the proper
relation of the partnership when all court upon cause shown by any partner, his legal
partners caused by business or partnership representative, or his assignee; or
any partner ceasing affairs after affairs are 2. Extrajudicially, by the partners themselves without
to be associated in dissolution. wound up or intervention of the court (De Leon, 2014).
carrying on the completed; the
business. end of the Action for liquidation
partnership life.
An action for the liquidation of a partnership is a personal one;
It is that point in It is the final It signifies the hence, it may be brought in the place of residence of either the
time when the step after end of the
plaintiff or the defendant (De Leon, 2014).
partners cease to dissolution partnership life.
carry on the in the It takes place
Persons authorized to wind up
business together. termination after both
It represents the of the dissolution and
demise of a partnership. winding up 1. Partners designated by the agreement;
partnership. Thus, have occurred. 2. In the absence of such, all partners who have not
any time a partner wrongfully dissolved the partnership; and,
leaves the business, 3. Legal representative of last surviving partner who is not
the partnership is insolvent (De Leon, 2014).
dissolved.
NOTE: The court may, in its discretion, after considering all the
Causes of dissolution (NCC, Art. 1830) facts and circumstances of the particular case, appoint a receiver
to wind up the partnership affairs where such step is shown to
be to the best interests of all persons concerned.
1. Without violating the agreement:
a. Termination of the definite term or specific
An insolvent partner does not have the right to wind up
undertaking
b. Express will of any partner in good faith, when there is partnership affairs (De Leon, 2014).
no definite term and no specified undertaking
c. Express will of all partners (except those who have LIMITED PARTNERSHIP
assigned their interests or suffered them to be charged
for their separate debts) either before or after the Characteristics
termination of any specified term or particular
undertaking 1. It is formed by compliance with the statutory requirements.
d. Expulsion of any partner in good faith of a member 2. One or more general partners control the business and are
2. Violating the agreement personally liable to creditors.
3. Unlawfulness of the business 3. One or more limited partners contribute to the capital and
4. Loss share in the profits but do not participate in the
a. Specific thing promised as contribution is lost or management of the business and are not personally liable
perished before delivery for partnership obligations beyond their capital
b. Loss of a specific thing contributed before or after contributions.
delivery, if only the use of such is contributed 4. The limited partners may ask for the return of their capital
contributions under conditions prescribed by law.
NOTE: The partnership shall not be dissolved by the 5. Partnership debts are paid out of common fund and the
loss of the thing when it occurs after the partnership individual properties of general partners
has acquired the ownership thereof.
RIGHTS AND OBLIGATIONS OF A LIMITED PARTNER
5. Death of any of the partners
6. Insolvency of any partner or of the partnership Rights of a limited partner
7. Civil interdiction of any partner
8. By decree of court under Art. 1831 1. To have partnership books kept at principal place of
a. A partner has been declared insane or of unsound mind business;
b. A partner becomes in any other way incapable of 2. To inspect/copy books at reasonable hours;
performing his part of the partnership contract 3. To have on demand true and full information of all things
c. A partner has been guilty of such conduct as tends to affecting partnership;
affect prejudicially the carrying on of the business 4. To have formal account of partnership affairs whenever
d. A partner wilfully or persistently commits a breach of circumstances render it just and reasonable;
the partnership agreement 5. To ask for dissolution and winding up by decree of court;

38
 UST LAW PRE-WEEK NOTES 2017

6. To receive share of profits/other compensation by way of Without or beyond scope of authority

income; and
Contract is unenforceable as against the principal but binds
7. To receive return of contributions, provided the
the agent to the third person
partnership assets are in excess of all its liabilities.
Binding on the principal when:
1. Ratified or
Liabilities of a limited partner
2. The principal allowed the agent to act as though he had
full powers
1. To the partnership
Since limited partners are not principals in the transaction Within the scope of authority but in the agent’s name
of a partnership, their liability as a rule, is to the 1. Not binding on the principal;
partnership, not to the creditors of the partnership. The 2. Principal has no cause of action against the 3rd parties
general partners cannot, however waive any liability of the and vice versa
limited partners to the prejudice of such creditors. Within the scope of the written power of attorney but
agent has actually exceeded his authority according to an
understanding between him and the principal
2. To the partnership creditors and other partners
a. A limited partner is liable for partnership obligations 1. Insofar as 3rd persons are concerned (not required to
when he contributed services instead of only money or inquire further than the terms of the written power),
property to the partnership agent acted within scope of his authority;
b. When he allows his surname to appear in the firm 2. Principal stopped
name With improper motives
c. When he fails to have a false statement in the certificate
Motive is immaterial; as long as within the scope of
corrected, knowing it to be false
authority, valid
d. When he takes part in the control of the business
e. When he receives partnership property as collateral With misrepresentations by the agent
security, payment, conveyance, or release in fraud of 1. Authorized – principal still liable
partnership creditors 2. Beyond the scope of the agent’s authority
f. When there is failure to substantially comply with the
legal requirements governing the formation of limited GR: Principal not liable
partnerships XPN: Principal takes advantage of a contract or receives
benefits made under false representation of his agent
PART VIII – AGENCY Mismanagement of the business by the agent
1. Principal still responsible for the acts contracted by the
Q: What is a Contract of agency (2000, 2003 BAR) agent with respect to 3rd persons;
2. Principal, however, may seek recourse from the agent
A: By the contract of agency, a person binds himself to render Tort committed by the agent
some service or to do something in representation or on behalf Principal civilly liable so long as the tort is committed by the
of another, with the consent or authority of the latter (NCC, Art. agent while performing his duties in furtherance of the
1868). principal’s business
NATURE, FORMS AND KINDS OF AGENCY Agent in good faith but prejudices 3rd parties
Principal is liable for damages
Essential elements of an agency
Express v. Implied Agency
1. Consent (express or implied) of the parties to establish the
relationship. BASIS EXPRESS AGENCY IMPLIED AGENCY
One where the One which is
NOTE: A person may express his consent: agent has been implied from the
a. by contract (NCC, Art. 1868), orally or in writing; actually acts of the
b. by conduct (NCC, Art. 1869); authorized by the principal.
c. by ratification (NCC, Art. 1910); or As to
principal, either
d. the consent may arise by presumption or operation of definition
orally or in
law (De Leon, 2010). writing.
2. The object is the execution of a juridical act in relation to
third persons.
3. The agent acts as a representative and not for himself. When it is directly When it is
4. The agent acts within the scope of his authority conferred by incidental to the
(De Leon, 2010). words. transaction or
reasonably
Appointment of an Agent necessary to
accomplish the
GR: There are no formal requirements governing the As to purpose of the
appointment of an agent. authority agency, and
therefore, the
XPN: When the law requires a specific form. i.e. – when sale of principal is
land or any interest therein is through an agent, the authority of deemed to have
the latter must be in writing; otherwise, the sale shall be void actually intended
(Art. 1874). (2010 BAR) the agent to
possess.
OBLIGATIONS OF THE AGENT
Apparent authority v. Authority by estoppel
Summary of rules; Acts of an agent
BASIS Apparent Authority by
In behalf of the principal, within the scope of authority Authority Estoppel
1. Binds principal; As to the That which is Arises when the
2. Agent not personally liable knowledge of though not principal, by his

39
 CIVIL LAW

the principal of actually granted, culpable negligence, objections to the venue of an action or to abandon a
the authority of the principal permits his agent to prescription already acquired.
the agent knowingly exercise powers not 14. Any other act of strict dominion.
permits the granted to him, even 15. To waive an obligation gratuitously (NCC, Art. 1878).
agent to exercise though the principal
or holds him out may have no notice OBLIGATIONS OF THE PRINCIPAL
as possessing. or knowledge of the
agent’s conduct. Obligations of the principal to the agent
Founded in Founded on the
As to the conscious principal’s To:
establishment permission of negligence in failing
of the authority acts beyond the properly to 1. Comply with all obligations which the agent may have
powers granted. supervise the affairs contracted within the scope of his authority [NCC, Art.
of the agent. 1910(1)].
2. Advance to the agent, should the latter so request, the sums
Implied agency v. Agency by estoppel necessary for the execution of the agency (NCC, Art. 1912).
3. Reimburse the agent for all advances made by him, even if
BASIS IMPLIED AGENCY BY the business or undertaking was not successful, provided
AGENCY ESTOPPEL the agent is free from fault (Ibid.).
Agent is a true If caused by the 4. Indemnify the agent for all damages which the execution of
As to agent, with rights “agent”, he is not the agency may have caused the latter without fault or
liability and duties of an considered a true negligence on his part (NCC, Art. 1913).
between agent. agent, hence, he 5. Pay the agent the compensation agreed upon, or if no
principal has no rights as compensation was specified, the reasonable value of the
and agent such. agent’s services (De Leon, 2014).

1. The principal is 1. If caused by the Irrevocable agency

always liable; principal, he is
2. The agent is liable, but only An agency is irrevocable
never if the 3rd
As to personally person acted 1. If a bilateral contract depends upon it.
liability to liable. on the 2. If it is the means of fulfilling an obligation already
third misrepresenta contracted.
persons tion; 3. If partner is appointed manager and his removal from the
2. If caused by the management is unjustifiable (NCC, Art 1927). (2001 BAR)
agent alone, 4. If it has been constituted in the common interest of the
only the agent principal and the agent (NCC, Art. 1930).
is liable. 5. Stipulation pour atrui (NCC, Art. 1311).

Agency by operation of law MODES OF EXTINGUISHMENT

Instances where an agency is created by operation of law 1. Expiration of the period

2. Death, civil interdiction, insanity or insolvency of principal
1. When the agent withdraws from the agency for a valid or of the agent
reason, he must continue to act until the principal has had a 3. Withdrawal by the agent
reasonable opportunity to take the necessary steps like the 4. Accomplishment of the object or the purpose of the agency
appointment of a new agent to remedy the situation caused 5. Revocation
by the withdrawal (Art. 1929). 6. Dissolution of the firm or corporation which entrusted or
2. In case a person declines an agency, he is bound to observe accepted the agency (NCC, Art. 1919).
the diligence of good father of the family in the custody and
preservation of the goods forwarded to him by the owner Q: Is the sale of the land by the agent after the death of the
until the latter should appoint an agent (Art. 1885). principal valid?

A special power of attorney is required (1992, 2004 BAR)
1. To create or convey real rights over immovable property.
2. To enter into any contract by which the ownership of an
immovable is transmitted or acquired either gratuitously or
for a valuable consideration.
3. To loan or borrow money, unless the latter act be urgent and
indispensable for the preservation of the things which are
under administration.
4. To lease any real property to another person for more than
one year.
5. To make such payments as are not usually considered as
acts of administration.
6. To obligate principal as guarantor or surety.
7. To bind the principal to render some service without
compensation.
8. To bind the principal in a contract of partnership.
9. To ratify obligations contracted before the agency.
10. To accept or repudiate an inheritance.
11. To effect novation which put an end to obligations already
in existence at the time the agency was constituted.
12. To make gifts, except customary ones for charity or those
made to employees in the business managed by the agent.
13. To compromise, to submit questions to arbitration, to
renounce the right to appeal from a judgment, to waive
A: Article 1931 provides that an act done by the agent after the
death of the principal is valid and effective if these two requisites
concur:
1. that the agent acted without the knowledge of the death of
the principal; and
2. that the third person who contracted with the agent himself
acted in good faith.
Good faith here means that the third person was not aware of the
death of the principal at the time that he contracted with said
agent (Rallos v. Felix Go Chan, G.R. No. L-24332, January 31, 1978).
PART IX – TRUST
It is the legal relationship between one person having an
equitable ownership in a certain property and another person
owning the legal title to such property (Jurado).
NOTE: Trust is founded in equity and can never result from acts
violative of law (Deluao vs Casteel, 26 SCRA 415, 1968 and 29
SCRA 350, 1969).

40
 UST LAW PRE-WEEK NOTES 2017

KINDS OF TRUST Conversion of Implied Trust to Express Trust

Express trust v. Implied trust An implied trust may converted to an express trust through
recognition by the implied trustee of the right to the property of
BASIS EXPRESS TRUST IMPLIED TRUST the owner (De Leon, 2014).
Created by the Come into being by
Definition intention of the operation of law. It
(NCC, Art. trustor or of the may be either PART X – CREDIT TRANSACTIONS
1441) parties. resulting or
constructive. LOAN
Created by the Those which,
direct and positive without being What is a Loan?
acts of the parties, expressed, are
by some writing or deducible from the It is a contract where one of the parties delivers to another,
Manner of deed or will or by nature of the either something not consumable so that the latter may use the
creation words evidencing transaction by same for a certain time and return it, in which case is called a
an intention to operation of law as commodatum; or money or other consumable things, upon the
create a trust. matters of equity, condition that the same amount of the same kind and quality
independently of shall be paid, in which case the contract is simply called a loan or
the particular mutuum (NCC, Art. 1933). (1993, 2004, 2005 BAR)
intention of the
parties. COMMODATUM
An express trust An implied trust
concerning an concerning an What are the kinds of Commodatum?
Parole immovable or any immovable or any 1. Ordinary commodatum – bailor cannot just demand the
evidence interest therein interest therein return of the thing at will, because there is a period agreed
cannot be proved may be proved by upon by the parties.
by parole evidence parole evidence 2. Precarium – one whereby the bailor may demand the thing
(NCC, Art. 1443). (NCC, Art. 1457). loaned at will in the following cases:
An action to An action to a. If the duration of the contract had not been stipulated;
enforce an express enforce an implied b. If the use to which the thing loaned should be devoted
trust, so long as trust, even when had not been stipulated; or
Laches or there is no express there is no express c. If the use of the thing is merely by tolerance of the
extinctive repudiation of the repudiation of the owner
prescription trust by the trustee trust by the trustee
and made known to and made known to NOTE: The word “owner” in Art. 1947 (2) is not proper because
the beneficiary, the beneficiary, the bailor need not be the owner of the thing (Pineda, 2006; Art.
cannot be barred may be barred by 1938).
by laches or laches or by
extinctive extinctive What are the elements of Commodatum?
prescription. prescription. 1. There must be a bailor and bailee;
2. the bailee acquires the use of the thing;
3. it must be gratuitous
Prescriptibility of actions to enforce trust under Art. 1456
Who are the parties in Commodatum?
An action for reconveyance of real property based upon a
1. Bailor/Comodatario/Commodans – The giver/ lender - The
constructive or implied trust, resulting from fraud, may be
party who delivers the possession or custody of the thing
barred by the statute of limitations. An action may be filed from
bailed.
the discovery of the fraud. In some cases, the discovery is
2. Bailee/Comodante/Commodatarius – The recipient/
deemed to have taken place when new certificates of title were
borrower - The party who receives the possession or
issued exclusively in the name of another person. (Gerona v. De
custody of the thing thus delivered.
Guzman, 11 SCRA 153, May 29, 1964)
MUTUUM
Period of prescription
What are the characteristics of Mutuum?
BASIS PRESCRIPTIVE PERIOD
Annulment of voidable Four (4) years from the 1. Borrower acquires ownership of the thing (Art 1953).
contract based on discovery of the fraud. 2. If the thing loaned is money, payment must be made in the
fraudulent registration of [Art. 1391 (4) Civil Code] currency which is legal tender in the Philippines and in case
the subject property. of extraordinary deflation or inflation, the basis of payment
Declaration of nullity or Imprescriptible. (Art. shall be the value of the currency at the time of the creation
inexistence of a void or 1410, Civil Code) of the obligation (Art 1249 and 1250).
inexistent contract based 3. If fungible thing was loaned, the borrower is obliged to pay
on fraudulent registration the lender another thing of the same kind, quality and
of the subject property. quantity even if it should change in value.
Based on fraudulent Ten (10) years from the
registration of the subject discovery of the fraud. Explain the rules on payment of loan
property but the action [Art. 1144 (2) Civil Code]
does not involve If the object of loan is
annulment of contract. 1. Money – Governed by Arts. 1249 and 1250
If the legitimate owner of An action to quiet title.
the subject property Therefore, GR: Payment shall be made in the currency stipulated.
which was fraudulently imprescriptible. (Caragay XPN: If not, that currency which is legal tender in the Philippines.
registered in the name of Layno v. Court of Appeals,
another had always been 133 SCRA 718) In case of extraordinary inflation – value of the currency at the
in possession thereof time of the creation of the obligation.

41
 CIVIL LAW

Loan of money can be payable in kind if there is an agreement 1. Central Bank Circular No. 799 – 6% per annum in cases
between the parties of:
a. Loans
2. Consumable or fungible thing – Debtor or borrower shall pay b. Forbearance of money, goods and credits
another thing of the same kind, quality and quantity even if c. Judgment involving such loan or forbearance
it should change in value. If cannot be done, the value of the 2. Art. 2209, NCC – 6% per annum in cases of:
thing at the time of its perfection (delivery) shall be the a. Other sources (i.e. sale)
basis of the payment of the loan (Art 1955). b. Damages arising from injury from person.
c. Loss of property which does not involve a loan.
Commodatum v. Mutuum (1996, 2004 BAR) 3. Interest accruing from unpaid interest (compound
interest) – There must first be a stipulation for payment
BASIS COMMODATUM MUTUUM of interest due and this shall earn interest from the
Non-consumable Money or time it is judicially demanded although the obligation
Object may be silent upon this point.
and Non- fungible consumable thing
Gratuitous, May or may not be
Cause otherwise it is a gratuitous DEPOSIT
lease
Use or temporary Consumption What is a deposit?
possession of the
thing loaned but Deposit is a contract whereby a person (depositor) delivers a
thing to another (depositary), for the principal purpose of
GR: not its fruit safekeeping it, with the obligation of returning it when
because the bailor demanded (Pineda, 2006)
remains the owner
What are the characteristics of a deposit?
Purpose 1. It is Real contract
XPNs:
use of the fruits is 2. The object of the contract must be a movable property
stipulated; XPN: Judicial deposit
enjoyment of the 3. The purpose is for the safekeeping of the thing deposited.
fruits is stipulated; 4. It is gratuitous, unless there is a:
or enjoyment of the a. Contrary agreement; or
fruits is incidental to b. The depositary is engaged in the business of storing
its use goods, like a warehouseman (Art. 1965).
Real or personal Only personal c. Where the property is saved from destruction without
property property knowledge of the owner, the latter is bound to pay the
other person just compensation (as in case
Generally non- ofinvoluntary deposit).
Subject consumable things 5. The depositary cannot use the thing deposited, unless:
Matter but may cover a. Permitted by the depositor; or
consumables if the b. Preservation of the thing requires its use, but only for
purpose of the said purpose.
contract is for
exhibition. Are fixed, savings and current deposits in banks governed
Ownership Retained by the Passes to the debtor by the rules on deposit?
of the bailor
thing Fixed, savings and current deposits in banks and other similar
Thing to Exact thing loaned Equal amount of the institutions are not true deposits but are considered simple
be same kind and loans because they earn interest (Art. 1980). Bank deposits are
returned quality in the nature of irregular deposit but they are really loans
Who bears Bailor Debtor governed by the law on loans (De Leon, 2010). (1997, 1998,
risk of loss 2009 BAR)
In case of urgent Only after the
need even before expiration of the What are the obligations of a depositary in voluntary
When to the expiration of term deposit?
return term (the contract is
in the meantime 1. To keep the thing safely and return it
suspended) 2. Exercise same diligence as he would exercise over his own
property
Contract of use Contract of
Contract 3. GR: Not to deposit the thing with a third person
consumption
XPNs:
a. When expressly authorized by stipulation; and
INTEREST AND THE SUSPENSION OF THE USURY LAW
b. When the preservation of the thing requires its use
(Art. 1977)
Explain the rules on interest
Depositary is liable for the loss if:
GR: No interest shall be due unless it is stipulated in writing (Art.
i. He deposits the thing to a third person without
1956) (2004 BAR).
authority, even though the loss is due to fortuitous
events
XPN: In case of interest on damages or indemnity for damages,
ii. Deposits the thing to a third person who is manifestly
it need not be in writing.
careless or unfit although there is authority.
4. If the thing should earn interest:
The rate of interest for the loan or forbearance of any money,
a. Collect interest as it falls due
goods or credits and the rate allowed in judgments, in the
b. Take steps to preserve the value and rights
absence of an express contract as to such rate of interest, shall
corresponding to it
be six percent (6%) per annum (BSP Circular No. 799, July 1,
5. Not to commingle things if so stipulated
2013).
6. GR: Not to make use of the thing deposited
XPNs:
Basis for the interest rate for compensatory interest
a. When preservation of thing deposited requires its use

42
 UST LAW PRE-WEEK NOTES 2017

b. When authorized by depositor GUARANTY SURETYSHIP

Collateral undertaking Surety is an original
GR: In such case, it is no longer a deposit but a contract promissory undertaking
of loan or commodatum, as the case may be. Guarantor-secondarily liable Surety-primarily liable

XPN: Principal reason for the contract is still Guarantor binds himself to Surety undertakes to pay if
safekeeping, it is still deposit. pay if the principal cannot principal
pay does not pay
7. When the thing deposited is delivered sealed and closed: Insurer of solvency of debtor Insurer of the debt
a. Return the thing in the same condition
b. Pay damages if seal be broken through his fault Guarantor can avail of the Surety cannot avail of the
c. Keep the secret of the deposit when seal is broken w/ benefit of excussion and benefit of excussion and
or w/o his fault division in case creditor division
proceeds against him
However, the depositary is authorized to open the seal
or lock when: EFFECTS OF GUARANTY: BENEFIT OF EXCUSSION
i. There is presumed authority (i.e. the key is delivered)
ii. Out of necessity What are the requisites for the exercise of the benefit of
excussion?
8. GR: Pay for any loss or damage that may arise due to his
fault 1. The guarantor must set up the right of excussion against the
XPN: Liability of loss through fortuitous event creditor upon the latter’s demand for payment from him;
and
XPNs to XPN Even in case of loss through fortuitous event, 2. He must point out to the creditor the available property of
still liable if: (Art. 1979) the debtor (not exempted from execution) found within the
a. Stipulated Philippine territory (Art. 2060).
b. He uses the thing without depositor’s permission
c. He delays its return When does benefit of excussion unvailable?
d. He allows others to use it (even if he himself is
authorized to use it) 1. Guarantor has expressly renounced it;
9. Return the thing deposited with all its fruits, accessions, and 2. Guarantor has bound himself solidarily with the Debtor;
accessories (Art. 1983) 3. Debtor is insolvent;
10. Pay interest on sums converted to personal use if the 4. Guarantor has absconded, or cannot be sued within the
deposit consists of money Philippines unless he left a manager or representative;
5. If it may be presumed that an execution on the property of
When is deposit considered as necessary deposit? the Debtor cannot satisfy the obligation (Art. 2059);
6. Guarantor does not invoke the benefit against Creditor
1. When it is in compliance with a legal obligation; upon demand to him for payment and he does not point out
2. It takes place on the occasion of any calamity, such as fire, available property of the Debtor within the Philippines
storm, flood, pillage, shipwreck, or other similar events (Art. sufficient to cover the obligation (Art. 2060).
1996). 7. Guarantor is a judicial bondsman or sub-surety (Art. 2084).
3. Made by passengers with common carriers; or 8. A pledge or mortgage of his own property has been given by
4. Made by travelers in hotels or inns (Art. 1998). Guarantor as special security.
9. Guarantor fails to interpose it as a defense before judgment
When are keepers of hotels or inns may be held liable? is rendered.
1. The keepers of hotels or inns shall be held responsible for loss The terms of a contract govern the parties’ rights and
of thing in case of deposit when both are present: obligations. When a party undertakes to be “jointly and
a. They have been previously informed by guest about severally” liable, it means that the obligation is solidary.
the effects the latter brought in, and Furthermore, even assuming that the party is liable only as a
b. The guest has taken precautions prescribed for their guarantor, he can be held immediately liable without the benefit
safekeeping. of excussion if the guarantor agreed that his liability is direct and
2. They are liable regardless of the degree of care exercised immediate (Orix Metro Leasing and Finance Corp., v. Cardline Inc,
when: G.R. No. 201417, January 13, 2016).
a. Loss or injury is caused by his employees or even by
strangers (Art. 2000); or EXTINGUISHMENT OF GUARANTY
b. Loss is caused by act of thief or robber when there is
no use of arms or irresistible force (Art. 2001). What are the grounds for the extinguishment of guaranty?
3. The keepers of hotels or inns are not liable for loss of thing in
case of deposit when: 1. Principal obligation is extinguished
a. Loss or injury is caused by force majeure; 2. Same causes as all other obligations
b. Loss due to the acts of guests, his family, his employees, or 3. If creditor voluntarily accepts immovable or other
visitors; and properties in payment of the debt (even if he should
c. Loss arises from the character of the goods (Art. 2002). afterwards lose the same through eviction or conveyance of
property) (Art. 2077)
When does judicial deposit takes place? 4. Release in favor of one of the guarantors, w/o consent of the
others, benefits all to the extent of the share of the
Judicial deposit (sequestration) take place when an attachment guarantor to whom it has been granted (Art. 2078)
or seizure of property in litigation is ordered by a court (Art. 5. Extension granted to debtor by creditor without consent of
2005). guarantor (Art. 2079)
6. When by some act of the creditor, the guarantors even
It is auxiliary to a case pending in court. The purpose is to though they are solidarily liable cannot be subrogated to the
maintain the status quo during the pendency of the litigation or rights, mortgages, and preferences of the former (Art. 2080)
to insure the right of the parties to the property in case of a
favorable judgment (De Leon, 2010). PACTUM COMMISSORIUM
(1999, 2001, 2004, 2009 BAR)
GUARANTY AND SURETYSHIP
(1992, 1997, 2010 BAR) Explain Pactum Commissorium

43
 CIVIL LAW
Pactum commisorium is a stipulation whereby the thing pledged
or mortgaged or subject of antichresis shall automatically
become the property of the creditor in the event of non-payment
of the debt within the term fixed. Such stipulation is null and void
(NCC, Art. 2085).
What are the elements of Pactum Commissorium?
1. That there should be a pledge or mortgage wherein
property is pledged or mortgaged by way of security for the
payment of the principal obligation; and
2. That there should be a stipulation for an automatic
appropriation by the creditor of the thing pledged or
mortgaged in the event of non-payment of the principal
obligation within the stipulated period (Spouses Roberto
Pen v. Spouses Santos, G.R. No. 160408, January 11, 2016).
PLEDGE
What are the requisites of a pledge? (1991, 1994, 1996,
1999, 2001 BAR)
1. Constituted to secure the fulfillment of a principal
obligation;
2. Pledgor is the absolute owner of the thing pledged;
3. Persons constituting the pledge have the free disposal of
their property, and in the absence thereof, that they be
legally authorized for the purpose (Art. 2085).
4. A contract of pledge is perfected when the thing pledged is
placed in the actual possession of or delivered to the
pledgee or a third person designated by the parties by
common consent (Art. 2093).
RIGHTS AND OBLIGATIONS
OF THE PLEDGOR AND THE PLEDGEE
What are the rights of a pledge?
1. Retain the thing until debt is paid (Art. 2098).
2. To be reimbursed for the expenses made for the
preservation of the thing pledged (Art. 2099).
3. Creditor may bring any action pertaining to the pledgor in
order to recover it from or defend it against a third person
(Legal Subrogation) (Art. 2103).
What are the obligations of a pledgee?
1. Take care of the thing pledged with the diligence of a good
father of a family (Art. 2099).
2. GR: Pledgee cannot deposit the thing pledged to a third
person.
XPN: Unless there is stipulation to the contract (Art. 2100).
3. Apply the fruits, income, dividends, or interests produced
or earned by the property, to interests or expenses first,
then to the principal (Art. 2102).
4. GR: Cannot use the thing pledged without authority (Art.
2104).
XPNs:
a. If the pledgor had given him authority or permission to
use it;
b. If the use of the thing is necessary for its preservation
but only for that purpose.
5. Return the thing pledged to the pledgor when the principal
obligation is fulfilled or satisfied it.
What are the rights of the pledgor?
1. Right to dispose the thing pledged, provided there is
consent of the pledgee (Art. 2097)
2. Right to ask that the thing pledged be deposited (Art.
2104 and Art. 2106)
3. Right to substitute thing pledged (Art. 2107)
REAL MORTGAGE
What are the requisites for a valid constitution of a real
mortgage? (1991, 1994, 1996, 1999, 2001 BAR)
44
1. It covers only immovable property and alienable real rights
imposed upon immovables
2. It must appear in a public instrument
3. Registration in the Registry of Property is necessary to bind
third persons
A juridical entity does not have the power to mortgage its
properties in order to secure loans of other persons. Parties
dealing with corporations cannot simply assume that their
transaction is within the corporate powers. The acts of a
corporation are still limited by its powers and purposes and
provided in the law and its articles of incorporation (University
of Mindanao, Inc. v. Bangko Sentral ng Pilipinas, G.R. No. 194964,
January 11, 2016).
What are the things that are deemed included in the
mortgage?
1. Natural accessions
2. Improvements
3. Growing fruits
4. Rents
5. Income
6. Insurance proceeds
7. Expropriation price (Art. 2127)
What is a Dragnet clause?
It is a mortgage provision which is specifically phrased to
subsume all debts of past or future origin. It is a valid and legal
undertaking, and the amounts specified as consideration in the
contracts do not limit the amount for which the pledge or
mortgage stands as security, if from the four corners of the
instrument, the intent to secure future and other indebtedness
can be gathered. A pledge or mortgage given to secure future
advancements is a continuing security and is not discharged by
the repayment of the amount named in the mortgage until the
full amount of all advancements shall have been paid (Premiere
Development Bank v. Central Surety & Insurance, Inc., G.R. No.
176246, February 13, 2009).
It is a clause which operates as a convenience and
accommodation to the borrowers as it makes available
additional funds without their having to execute additional
security documents, thereby saving time, travel, loan closing
costs, costs of extra legal services, recording fees etc.
Kinds of foreclosure
1. Judicial – Governed by Rule 68, Rules of Court
2. Extrajudicial – Mortgagee is given a SPA to sell the
mortgaged property (Act No. 3135)
Requisites for valid right of redemption
1. Must be made within one year from the time of the
registration of the sale.
2. Payment of the purchase price of the property plus 1%
interest per month together with the taxes thereon, if any,
paid by the purchaser with the same rate of interest
computed from the date of registration of the sale; and
3. Written notice of the redemption must be served on the
officer who made the sale and a duplicate filed with the
proper Register of Deeds (Rosales v. Yboa, G.R. No. L-42282,
February 28, 1983).
The redemptioner should make an actual tender in good faith of
the full amount of the purchase price as provided above, i.e., the
amount fixed by the court in the order of execution or the
amount due under the mortgage deed, as the case may be, with
interest thereon at the rate specified in the mortgage, and all the
costs, and judicial and other expenses incurred by the bank or
institution concerned by reason of the execution and sale and as
a result of the custody of said property less the income received
from the property (Heirs of Quisimbing v. PNB, G.R. No. 178242,
Jan. 20, 2009).
 UST LAW PRE-WEEK NOTES 2017
As instituted heirs only to a part of the free portion of Basilia’s
estate, the grandchildren are entitled to receive their share, if
any, only after payment of all debts, funeral charges, expenses of
administration, allowance to the widow and inheritance tax. The
disputed share was sold at a public auction to satisfy the
judgment claim of Benita as creditor. When it was redeemed by
Gepuela, no further redemption was made. Upon expiration of
the periods to redeem, Gepuela became entitled, as a matter of
right, to the consolidation of the ownership. The share no longer
formed part of the estate which can theoretically be distributed
to the grandchildren (Heirs of Jose Ma. Gepuela v. Bernita Menez-
Andres, G.R. No. 173636, January 13, 2016).
ANTICHRESIS
Wha are the form of a contract of antichresis and its
contents?
1. Covers only the Fruits of real property
2. Delivery of the property necessary so that CR may receive
the fruits therefrom
3. Amount of principal and interest must be specified in
writing, otherwise, the contract shall be void.
4. Express agreement that debtor will give Possession to the
CR and that CR will apply the fruits to the interest and then
to the principal.
The fruits of the immovable which is the object of the antichresis
must be appraised at their actual market value at the time of the
application (Art. 2138).The property delivered stands as a
security for the payment of the obligation of the debtor in
antichresis. Hence, the debtor cannot demand its return until the
debt is totally paid.
Who are the parties to an Antichresis?
1. Antichretic creditor – One who receives the fruits on the
immovable property of the debtor.
2. Antichretic debtor – One who pays his debt through the
application of the fruits of his immovable property.
What are the obligations of an antichretic creditor?
1. Pay the taxes and charges assessable against the property
like real estate taxes and others;
2. Bear the necessary expenses for the preservation of the
property;
3. Bear the expenses necessary for the repair of the property;
and
4. Apply the fruits received for payment of the outstanding
interests, if any, and thereafter of the principal.
CHATTEL MORTGAGE
Requisites
1. GR: It covers only movable property
XPN: When the parties treat as personalty that which is
according to its nature realty.
2. Registration with the Chattel Mortgage Register.
3. Description of the property.
Section 7 of the Chattel Mortgage Law does not demand specific
description of every chattel mortgaged in the deed of mortgage,
but only requires that the description of the mortgaged property
be such as to enable the parties to the mortgage or any other
person to identify the same after a reasonable investigation and
inquiry (Saldana v. Phil. Guaranty Co., Inc., G.R. No. L-13194,
January 29, 1960); otherwise, the mortgage is invalid.
4. Accompanied by an affidavit of good faith to bind third
persons.The absence of an affidavit of good faith does not
affect the validity of the contract.
Registration of the Chattel mortgage
45
It is tantamount to the symbolic delivery of the mortgage to the
mortgagee, which is equivalent to actual delivery (Meyers v.
Thein, G.R. No. 5577, February 21, 1910).
Registration period of the chattel mortgage
The law does not provide period within which the registration
should be made. Yet, the law is substantially and sufficiently
complied with where the registration is made by the mortgagee
before the mortgagor has complied with his principal obligation
and no right of innocent third persons is prejudiced.
Registration in Real Estate Mortgage and Registration in
Chattel Mortgage
The difference in registration of real mortgage and chattel
mortgage is that a deed of real estate mortgage is considered
registered once recorded in the entry book. However, chattel
mortgage must be registered not only in the entry book but also
in the Chattel Mortgage Register.
Procedure in foreclosure of a chattel mortgage
1. The mortgagee may, after thirty (30) days from the time of
the default or from the time the condition is violated, cause
the mortgaged property to be sold at public auction by a
public officer (Sec. 14, Act No. 1508).
2. The 30-day period to foreclose a chattel mortgage is the
minimum period after violation of the mortgage condition
for the mortgage
3. The creditor has at least ten (10) days notice served to the
mortgagor
4. The notice of time, place and purpose of such sale, is posted
5. After the sale of the chattel at public auction, the right of
redemption is no longer available to the mortgagor (Cabral
v. Evangelista, 28 L-26860, July 30, 1969).
QUASI-CONTRACTS
What is a Quasi-Contract?
Lawful, voluntary, and unilateral acts which generally require a
person to reimburse or compensate another in accordance with
the principle that no one shall be unjustly enriched at the
expense of another (Art. 2142).
What are the essential requisites of negostiorum gestio?
1. Taking charge of another’s business or property
2. The property or business must have been abandoned or
neglected
3. The officious manager (gestor) must not have been
expressly or implicitly authorized
4. The officious manager (gestor) must have voluntarily taken
charge
5. The officious manager or gestor must not be acting
erroneously on the belief that he is the owner of the
property or business.
What are the requisites for solutio indebiti?
1. Receipt of something.
2. There was no right to demand it
3. Undue delivery was because of mistake.
CONCURRENCE AND PREFERENCE OF CREDITS/ FRIA
SECTION 133
What is a liquidation Process?
The proceeding where claims are filed and the assets of the
insolvent debtor are disposed and the proceeds are divided
among the creditors.
What is a Liquidation Plan?
The Liquidation Plan shall, as a minimum enumerate all the
assets of the debtor and a schedule of liquidation of the assets
 CIVIL LAW

and payment of the claims, which within 3 months from the them in another sense can be gathered, and that can be
Liquidators assumption to his office must prepare and submit to ascertained (Art. 790).
the court (FRIA, Sec, 129). 2. Technical words are to be taken in their technical sense,
unless:
The Liquidation Plan and its Implementation shall ensure that a. The context clearly indicates a contrary intention; or
the concurrence and preference of credits as enumerated in the b. It satisfactorily appears that the will was drawn solely
Civil Code of the Philippines and other relevant laws shall be by the testator and that he was unacquainted with such
observed, unless a preferred creditor voluntarily waives his technical sense (Ibid.).
preferred right. For purposes of this chapter, credits for services 3. The invalidity of one of several dispositions contained in a
rendered by employees or laborers to the debtor shall enjoy first will does not result in the invalidity of the other dispositions
preference under Article 2244 of the Civil Code, unless the unless it is to be presumed that the testator would not have
claims constitute legal liens under Article 2241 and 2242 thereof made such other dispositions if the first invalid disposition
(FRIA, Sec. 133). had not been made (Art. 792).
4. Every devise or legacy shall cover all the interest which the
NOTE: The liquidator shall be deemed an officer of the court testator could devise or bequeath in the property disposed
with the principal duly of preserving and maximizing the value of, unless it clearly appears from the will that he intended
and recovering the assets of the debtor, with the end of to convey a less interest (Art. 794).
liquidating them and discharging to the extent possible all the
claims against the debtor (FRIA, Sec. 119) Law Governing the Validity of Wills
1. As to Extrinsic validity - refers to the forms and
What are the preferred credits on specific movables as solemnities required by law. It is governed by:
provided in Art. 2241? a. As to time - the law in force at the time of the making
of the will.
Summary: b. As to place - the will can be executed in accordance to
the formalities of the testator’s nationality, domicile,
1. Taxes residence or the place where the will was executed
2. Malversation by public officials depending on the place where it is executed and the
3. Vendor’s lien nationality of the testator.
4. Pledge, chattel mortgage 2. As to Intrinsic validity - refers to the legality of provisions
5. Mechanic’s lien in the will. It is governed by:
6. Laborer’s wages a. As to time - the law in force at the time of the
7. Salvage decedent’s death.
8. Tenancy b. As to place - the national law of the testator governs
9. Carrier’s lien the intrinsic validity of the will regardless of the place
10. Hotel’s lien of execution.
11. Crop loan
12. Rentals – one year Basis Place of Applicable Law
13. Deposit execution
In the foregoing cases, if the movables to which the lien or Philippines NCC
Testator
preference attaches have been wrongfully taken, the creditor
is a Foreign
may demand them from any possessor within thirty (30) days Law of the place of execution
Filipino country
from the unlawful seizures through accion subrogatoria.
Philippines NCC or National law
Whar are the preferred credits on specific immovables as
Testator 1. National law;
provided in Art. 2242?
is an Foreign 2. Law of the place of
Alien country residence;
Summary:
3. NCC
1. Taxes
Testamentary Capacity and Intent
2. Vendor’s lien
3. Contractor’s lien
Requisites of Testamentary Capacity
4. Lien of materialmen
1. All persons not expressly prohibited by law
5. Mortgage
6. Expenses of preservation
The ability as well as the power to make a will must be
7. Recorded attachments
present at the time of the execution of the will (2008
8. Warranty in partition
BAR).The capacity of a person to make a will shall be
9. Conditional donations
governed by his national law (Art. 15).
10. Premiums for 2 years – insurers
2. At least 18 years of age; and
PART XI – SUCCESSION 3. Of sound mind

GENERAL PROVISIONS To be of sound mind, it shall be sufficient if the testator was

able at the time of making the will to know the:
Requisites of succession (DATE) a. nature of the estate to be disposed of;
1. Death of decedent; b. proper objects of his bounty; and
2. Acceptance of the inheritance by the successor; c. character of the testamentary act.
3. Transmissible estate;
4. Existence and capacity of successor, designated by decedent Formal requirements common to both Notarial and
or law. Holographic wills

TESTAMENTARY SUCCESSION 1. Law governing extrinsic validity of wills;

2. In writing;
Rules on the Construction of Wills 3. In a language or dialect known to the testator.

1. The words of the will are to be taken in their ordinary and Formal Validity of Wills
grammatical sense unless there is a clear intention to use
It is the law of the country where the will was executed that
governs the form and solemnities of wills (Art. 17(1); Art. 815).

46
 UST LAW PRE-WEEK NOTES 2017
The will of an alien who is abroad produces effect in the
Philippines if made with the formalities prescribed by the law of
the place in which he resides, or according to the formalities
observed in his country, or in conformity with those which the
Civil Code prescribes (Art. 816). (1990, 1998, 2009 BAR)
Notarial Wills (1994, 2007, 2008 Bar)
Formalities in the Execution of a Notarial Will (LaW-SPA2N2)
1. In Writing;
2. Executed in a Language or dialect known to the testator;
3. Subscribed at the end thereof by the testator himself or by
the testator’s name written by some other person in his
presence, and by his express direction;
4. Attested and subscribed by three or more credible
witnesses in the presence of the testator and of one another;
5. The testator or the person requested by him to write his
name must also sign every page, except the last, on the left
margin in the presence of the witnesses;
a. Mandatory – the signing on every page in the
witnesses’ presence
b. Directory – the place of the signing (on the left
margin). The signature can be affixed anywhere on the
page (Balane 2010).
6. All the pages shall be Numbered correlatively in letters on
the upper part of each page;
a. Mandatory – pagination by means of a conventional
system purpose of which is to prevent insertion or
removal of pages.
b. Directory – pagination in letters on the upper part of
each page (Balane, 2010).
7. Must contain an Attestation clause which expressly states
the following:
1. The number of pages used upon which the will is
written;
2. The fact that the testator signed the will and every page
thereof, or caused some other person to write his
name, under his express direction, in the presence of
the instrumental witnesses;
3. The fact that the witnesses witnessed and signed the
will and all the pages thereof in the presence of the
testator and of one another.
8. Must be acknowledged before a Notary public by the
testator and the witnesses.
Special Rules for Handicapped Testators
Rules if the Testator is Deaf or Mute If the testator is able to
read, he must personally read the will; or If the testator is
unable to read, he must designate two persons to read it and
communicate to him, in some practicable manner, the contents
thereof (Art. 807, NCC).
Rules if the Testator is Blind (2008 BAR)
The will shall be read to him twice, once by one of the
subscribing witnesses, and another time by the notary public
before whom the will is acknowledged (Art. 808).
Art. 808 applies not ONLY to blind testators but also to those
who, for one reason or another, are incapable of reading their
wills, either because of poor or defective eye sight or because of
illiteracy.
Witnesses
Qualifications of witnesses (S18-ABCD)(2008 BAR)
1. Of Sound mind.
2. At least 18 years of age.
3. Able to read and write
4. Not Blind, deaf or dumb
NOTE: While a blind or deaf may not be a witness, he could
be a testator in a notarial will.
5. Not have been Convicted by final judgment of falsification
of a document, perjury or false testimony.
6. Domiciled in the Philippines – his habitual residence must
be in the Philippines (Art. 50).
47
Joint Wills (2000, 2008 Bar)
Joint wills are NOT allowed in the Philippines.
Two or more persons cannot make a will jointly, or in the same
instrument, either for their reciprocal benefit or for the benefit
of a third person (Art. 818).
Wills, prohibited by Art. 818, executed by Filipinos in a foreign
country shall not be valid in the Philippines, even though
authorized by the laws of the country where they may have been
executed (Art. 819). (2000 BAR)
Revocation of Wills (1997, 2003 Bar)
Governing Law in case of Revocation
1. If the revocation takes place in the Philippines, whether
the testator is domiciled in the Philippines or in some other
country – Philippine laws
2. If the revocation takes place outside the Philippines:
a. by a testator who is domiciled in the Philippines –
Philippine laws
b. by a testator who is not domiciled in this country –
i. Laws of the place where the will was made, or
ii. Laws of the place in which the testator had his
domicile at the time of revocation (Art. 829).
Allowance and Disallowance of Wills
Grounds for Disallowance of a Will (IF2 SUM)
1. The Formalities required by law have not been complied
with;
2. The testator was Insane or otherwise mentally incapable of
making a will, at the time of its execution;
3. The will was executed through Force or under duress, or
influence of fear or threats;
4. The will was procured by Undue and improper pressure
and influence, on the part of the beneficiary or some other
person;
5. The Signature of testator was procured by fraud.
6. The testator acted by Mistake or did not intend that the
instrument he signed should be his will at the time of
affixing his signature thereto (Art. 839).
Institution of Heirs
Conditions on the Prohibition to Marry
GR: An absolute condition not to contract a first or subsequent
marriage is not a valid condition and shall be considered as not
written (Art. 874). However, the validity of the disposition itself
shall not be affected.
XPN: If such condition was imposed on the widow or widower
by the deceased spouse or by the latter’s ascendants or
descendants, in which case, the condition is valid (Art. 874).
If the prohibition is relative with respect to persons, time or
place, such conditions is valid and must be complied with unless
the testator renders it impossible for the heir to marry at all.
Disposition Captatoria is any disposition made upon the
condition that the heir shall make some provision in his will in
favor of the testator or of any other person shall be void (Art.
875). Here, both the condition and the disposition are void but
the validity of the other provisions, including the will itself, shall
not be affected.
Rules for Casual and Mixed Conditions
GR: The condition may be fulfilled any time, either before or
after the testator’s death unless the testator provides otherwise.
XPN:
a. If the condition is fulfilled at any time before the death of
the testator, the condition is deemed fulfilled, unless the
testator provides otherwise.
b. If condition is already fulfilled at the time of the execution:
1. Testator is unaware - The condition is deemed
complied with or fulfilled.
2. Testator is aware -
 CIVIL LAW
i. If the condition can no longer be fulfilled again, it
is deemed fulfilled.
ii. If the condition can still be fulfilled, there is a need
to fulfill it again.
Effect of a Suspensive Condition
1. Heir, Devisee, or legatee acquires no rights until the
condition is fulfilled.
2. If he dies before the condition is fulfilled, he transmits no
rights to his heirs, even though he survived the testator.
Reason: Capacity to succeed by the conditional heir must
be determined both at the time of the death of the testator
and at the time of the fulfillment of the condition.
3. Once the condition is fulfilled, its effects retroact to the
moment of the death of the testator.
4. If the suspensive condition is not fulfilled, the estate will be
placed under administration until:
a. The condition is fulfilled, in which case the estate
should be given to the instituted heir;
b. It becomes obvious that it cannot be fulfilled, in which
case, the estate should be given to the intestate heirs.
Preterition
Requisites
1. There is a total omission in the inheritance;
2. The person omitted is a compulsory heir in the direct line;
3. The omitted compulsory heir must survive the testator, or
in case the compulsory heir predeceased the testator, there
is a right of representation;
4. Nothing must have been received by the heir by gratuitous
title.
A spouse CANNOT be preterited. While a spouse is a compulsory
heir, he/she is not in the direct line (ascending or
descending).The surviving spouse shall only be entitled to
recover his legitime but the institution of heirs shall not be
annulled.
Effects of Preterition
1. Preterition annuls the institution of heirs;
2. Devices and legacies are valid insofar as they are not
inofficious;
3. If the omitted compulsory heir dies before the testator, the
institution shall be effectual, without prejudice to the right
of representation.
Effect of Preterition on the Will Itself
GR: The effect of annulling the institution of heirs will be,
necessarily, the opening of a total intestacy except that proper
legacies and devises must be respected. Here, the will is not
abrogated.
XPN: If the will contains a universal institution of heirs to the
entire inheritance of the testator, the will is totally abrogated.
TABLE OF LEGITIMES
WHEN SURVIVING ALONE
½ of the hereditary estate (Free portion = ½)
Surviving spouse where the marriage was solemnized under articulo mortis
and the deceased died within 3 months from the time of marriage.
NOTE: The deceased was the spouse who was at the point of death at the time
of marriage (Tolentino, Civil Code, 1992 ed.)
Surviving spouse where the marriage was solemnized under articulo mortis
and the deceased died within 3 months from the time of marriage but the
parties have been living as husband and wife for more than 5 years prior
to the marriage.
48
Rights of the Preterited Heirs
They are entitled not only to their shares of the legitime but also
to those of the free portion which was not expressly disposed of
by the testator by way of devises and legacies.
NOTE: The preterition of a compulsory heir in the direct line will
result in total intestacy (Iris Morales v. Ana Maria Olondriz, G.R.
No. 198994, February 3, 2016).
Right of Representation
The right of representation is allowed in compulsory
succession with respect to the legitime in case the compulsory
heir in the descending line dies before the testator or becomes
incapacitated to succeed.
Heirs who repudiated their share MAY NOT be represented. A
voluntary heir MAY NOT also be represented.
Rules in case of representation
1. It shall take place in cases of:
a. Predecease
b. Incapacity
c. Disinheritance
2. Representation applies only to those acquired by virtue of
provision of the law (legitime, intestate share, in case of
reserva troncal);
3. No representation in cases of repudiation;
4. Representation only occurs in the direct descending line
and never in the ascending;
5. In the direct collateral line, the right of representation only
takes place in favour of children of brothers or sisters, full
or half-blood;
6. The representation obtains degree by degree, and no jump
is made.
Substitution of Heirs (2002 Bar)
Kinds of substitution
1. Simple/common (2002 BAR)–
2. Brief/compendious
3. Reciprocal
4. Fideicommissary Substitution
Elements of Fideicommissary Substitution
1. There must be a first heir or fiduciary who takes the
property upon the testator’s death;
2. An absolute obligation is imposed upon the fiduciary to
preserve and to transmit to a second heir the property at a
given time;
3. There is a second heir who takes the property subsequent
from the fiduciary and must be one degree from the first
heir;
4. The first and second heir must both be living and qualified
at the time of the death of the testator.
NOTE: It should be imposed on the free portion and not on the
legitime. Fideicommissary substitution can never burden the
legitime (Art 864).
1/3 of the hereditary estate (Free portion =2/3)
½ of the hereditary estate (Free portion = ½)
 UST LAW PRE-WEEK NOTES 2017

PRIMARY HEIRS CONCUR WITH CONCURRING COMPULSORY HEIRS

Legitimate child = ½ of the hereditary estate
One legitimate child and the surviving spouse Surviving spouse = ¼ of the hereditary estate
Free portion =¼
Legitimate children = ½ of the hereditary estate in equal portions
Surviving spouse = a share equal to that of each child
Two or more legitimate children and the surviving spouse
Free portion = whatever remains

Legitimate child = ½ of the hereditary estate (if there are several,

they shall divide the ½ share in equal portions)
Illegitimate children = ½ of the share of each legitimate child (if the
free portion is insufficient, the illegitimate children
One legitimate child and illegitimate children
shall divide the free portion equally among
themselves)
Free portion = whatever remains

Legitimate child = ½ of the hereditary estate

Surviving spouse = ¼ of the hereditary estate
Illegitimate children = ½ of the share of each legitimate child
Free portion = whatever remains
One legitimate child, the surviving spouse, and illegitimate
children
NOTE: The share of the surviving spouse shall have preference over
those of the illegitimate children whose share may suffer reduction pro
rata because there is no preference as among themselves.

Legitimate children = ½ of the hereditary estate in equal portions

Surviving spouse = a share equal to that of each legitimate child
Illegitimate children = ½ of the share of each legitimate child
Free portion = whatever remains
Two or more legitimate children, surviving spouse, and
NOTE: The share of the surviving spouse shall have preference over
illegitimate children
those of the illegitimate children whose share may suffer reduction pro
rata because there is no preference as among themselves.

SECONDARY HEIRS CONCUR WITH COMPULSORY HEIRS

Legitimate parents = ½ of the hereditary estate
Legitimate parents and surviving spouse (1999 BAR) Surviving spouse = ¼ of the hereditary estate
Free portion =¼
Legitimate parents = ½ of the hereditary estate
Legitimate parents and illegitimate children Illegitimate children = ¼ of the hereditary estate in equal shares
Free portion =¼
Legitimate parents = ½ of the hereditary estate
Legitimate parents, surviving spouse, and illegitimate Illegitimate children = ¼ of the hereditary estate in equal shares
children Surviving spouse = 1/8 of the hereditary estate
Free portion = 1/8
Parents = excluded
Children = ½ if legitimate and ½ of the share of each
Parents of the Illegitimate Decedent and children
legitimate child if illegitimate children
Free portion = whatever remains
Parents = ¼ of the hereditary estate
Parents of the Illegitimate Decedent and the surviving
Surviving spouse = ¼ of the hereditary estate
spouse
Free portion =½

CONCURRENCE AMONG CONCURRING COMPULSORY HEIRS

Surviving spouse = 1/3 of the hereditary estate
Surviving spouse and illegitimate children Illegitimate children = 1/3 of the hereditary estate (Rabuya, 2009).

Table of Intestate Shares

Legitimate children alone The whole estate divided equally

Legitimate children and Illegitimate children
Legitimate children and surviving spouse
Legitimate Children, surviving spouse and
illegitimate children
Legitimate parents alone
Legitimate ascendants (other than parents) alone
Legitimate parents and illegitimate children
Legitimate parents and surviving spouse
The whole estate, each illegitimate child getting ½ share of one legitimate
child
The whole estate, divided equally (the surviving spouse counted as one
legitimate child)
The whole estate, the surviving spouse being counted as one legitimate child
and each illegitimate child getting ½ share of one legitimate child
The whole estate, divided equally
The whole estate, observing in proper cases, the rule of division by line
Legitimate parents = ½ of the estate
Illegitimate children = ½ of the estate
Legitimate parents = ½ of the estate
Surviving spouse = ½ of the estate

49

Legitimate parents, surviving spouse and
illegitimate children
Illegitimate children alone
Illegitimate children and surviving spouse
Surviving spouse alone
Surviving spouse and illegitimate parents
Surviving spouse and legitimate brothers and
sisters, nephews and nieces
Surviving spouse and illegitimate brothers and
sisters, nephews and nieces
Illegitimate parents alone
Illegitimate parents and children of any kind
Legitimate brothers and sister alone
Legitimate brothers and sisters, nephews and nieces
Nephews and nieces with Uncles and aunts
Illegitimate brothers and sisters alone
Illegitimate brothers, sisters, nephews and nieces
Nephews and nieces alone
Other collaterals
State
Reserva Troncal
Requisites that must exist in order that a property may be
impressed with a reservable character
1. That the property was acquired by a descendant (called
“praepositus” or propositus) from an ascendant or from a
brother or sister by gratuitous title when the recipient
does not give anything in return;
2. That said descendant (praepositus) died without an issue;
3. That the same property (called “reserva”) is inherited by
another ascendant (called “reservista”) by operation of law
CIVIL LAW
Legitimate parents = ½ of the estate
Surviving spouse = ¼ of the estate
Illegitimate children = ¼ of the estate
The whole estate, divided equally
Illegitimate children = ½ of the estate
Surviving spouse = ½ of the estate
The whole estate
No article governing, but Art. 997 may be applied by analogy, thus:
Surviving spouse = ½ of the estate
Illegitimate parents = ½ of the estate
Surviving spouse = ½ of the estate
Legitimate brothers, sisters, nephews, nieces = ½ of the estate (the nephews
and nieces inheriting by representation in proper cases)
Surviving spouse = ½ of the estate
Illegitimate brothers, sisters, nephews and nieces = ½ of the estate (the
nephews and nieces inheriting by representation in proper cases)
NOTE: When the law speaks of brothers and sisters, nephews and nieces as
legal heirs of an illegitimate child, it refers to illegitimate brothers and sisters
as well as to the children, whether legitimate or illegitimate, of such brothers
and sisters (Manuel v. Ferrer, 247 SCRA 476)
The whole estate
Illegitimate parents = excluded
Children
a. Child alone (legitimate or illegitimate) = whole estate
b. Legitimate and illegitimate children = each illegitimate gets ½ share of one
legitimate child
The whole estate, with a brother/sister of the half-blood inheriting ½ the
share of a brother/sister of the full blood
The whole estate, observing the 2:1 proportion of full and half blood fraternity
and the nephews and nieces inheriting by representation in the proper cases
Uncles and Aunts = excluded
Nephews and nieces = whole estate per capita, but observing the 2:1
proportion for the full and half blood
The whole estate, observing the 2:1 proportion of full and half blood fraternity
No article governing, but Arts. 1005 and 1008 may be applied by analogy,
hence, they acquire the whole estate
The whole estate per capita, but observing the 2:1 proportion for the full and
half blood
The whole estate, per capita, the nearer in degree excluding the more remote
The whole estate
Assignment and disposition
1. If decedent was a resident of the Philippines at any time:
a. Personal property – to municipality of last residence
b. Real property – where situated
2. If decedent was never a resident of the Philippines
Personal and real property – where respectively situated
How property is to be used:
1. For the benefit of public educational and charitable institutions in the
respective municipalities/cities
2. Alternatively, at the instance of an interested party, or motu propio, court
may order creation of a permanent trust for the benefit of the institutions
concerned
(either through intestate or compulsory succession) from
the praepositus; and
4. That there are living relatives within the third degree
counted from the praepositus and belonging to the same line
from where the property originally came (called
“reservatarios”) (Art. 891; Chua v. CFI of Negros Occidental,
G.R. No. L-29901, August 31, 1977; Rabuya, 2009).
Three lines of transmission in reserva troncal
1. From the origin of the property (who must be an
ascendant/brother/sister of propositus) to propositus, and
the transmission must be thru gratuitous title;
50
 UST LAW PRE-WEEK NOTES 2017

2. From the propositus (who died without issue) to the 1. There are no compulsory heirs and the entire estate is
reservista (who must be an ascendant of the propositus) distributed by the testator as legacy/devise; or
and the transmission is thru inheritance by operation of 2. There are compulsory heirs but their legitimes have already
law; and been provided for by the testator and there are no
3. From reservista to the reservatario, who must be a third donations inter vivos.
degree relative by consanguinity of the propositus.
(Mendoza v. Delos Santos, G.R. No 176422, March 20, 2013) Order of preference Order of preference under
under Art. 911 Art. 950
Disinheritance
1. Legitime of compulsory 1. Remuneratory L/D;
heirs; 2. Preferential L/D;
Requisites 2. Donations inter vivos; 3. Legacy for support;
1. Made in a valid will 3. Preferential legacies or 4. Legacy for education;
2. Identity of the heir is clearly established devises; 5. L/D of a specific,
3. For a legal cause 4. All other legacies or determinate thing which
4. Expressly made devises pro rata forms a part of the estate;
5. Cause stated in the will 6. All others pro rata
6. Absolute or unconditional
7. Total
8. Cause must be true and if challenged by the heir, it must be NOTE: When the question of reduction is between and among
proved to be true. legatees and devisees themselves, Art. 950 governs; but when
there is a conflict between compulsory heirs and
Grounds for Disinheritance legatees/devisees, Art. 911 governs.
1. Common causes for disinheritance of children or descendants,
parents or ascendants, and spouse: Grounds for the Revocation of Legacy or Devise
a. When the heir has been found guilty of an attempt 1. Transformation of the thing in such a manner that it does
against the life of the testator, his/her descendants or not retain either the form or the denomination it had.
ascendants, and spouse, in case of children or parents. 2. Alienation of the thing bequeathed.
b. When the heir by fraud, violence, intimidation, or
undue influence causes the testator to make a will or to GR: The alienation of the property revokes the legacy or
change one already made. devise notwithstanding the nullity of the transaction.
c. When the heir has accused the testator of a crime for However, if the nullity is based on vitiated consent, the
which the law prescribes imprisonment of six years or legacy or devise is not revoked because there was no
more, if the accusation has been found groundless. intention to revoke (Fernandez v. Dimagiba, G.R. No. L-
d. Refusal without justifiable cause to support the 23638,October 12, 1967).
testator who disinherits such heir.
XPN: If the sale is pacto de retro and the testator reacquired
2. Peculiar Causes for Disinheritance it during his lifetime.
a. Children and Descendants:
i. Conviction of a crime which carries with it a penalty 3. Total loss of the thing bequeathedattributed to the heirs.
of civil interdiction 4. If the legacy is a credit against a third person or the
ii. Maltreatment of the testator by word or deed by the remission of a debt, and the testator, subsequent to the
children or descendant making of the will, brings an action against the debtor for
iii. When the children or descendant has been convicted payment.
of adultery or concubinage with the spouse of the
testator LEGAL OR INTESTATE SUCCESSION
iv. When the children or descendant leads a
dishonorable or disgraceful life Legal or Intestate succession takes place when:
b. Parents or Ascendants: 1. There is no will; the will is void, or the will is revoked;
i. When the parent or ascendant has been convicted of 2. The will does not dispose all the property of the testator
adultery or concubinage with the spouse of the (partial intestacy);
testator 3. The suspensive condition attached to the inheritance is not
ii. When the parents have abandoned their children or fulfilled;
induced their daughters to live a corrupt or immoral 4. The heir predeceased the testator or repudiates the
life, or attempted against their virtue inheritance and no substitution and no right of accretion
iii. Loss of parental authority for causes specified in the take place.
Code 5. The heir instituted is incapacitated to succeed.
iv. Attempt by one of the parents against the life of the
other, unless there has been reconciliation between NOTE: The enumeration is not exclusive; there are other causes
them for intestacy which are not included in the enumeration.
c. Spouse:
i. When the spouse has given cause for legal E.g.
separation
ii. When the spouse has given grounds for the loss of 1. Preterition;
parental authority 2. Arrival of the resolutory term or period;
3. Fulfillment of a resolutory condition attached to the
Legacies and Devises inheritance;
4. Non-compliance or impossibility of complying with the will
Order of Payment of Legacies and Devises of the testator.
1. Remuneratory legacies or devises
2. Legacies or devises declared by testator to be preferential Rules on Exclusion and Concurrence in Intestate Succession
3. Legacies for support 1. Legitimate children
4. Legacies for education a. Exclude parents, collaterals and State
5. Legacies or devises of a specific determinate thing which b. Concur with surviving spouse and illegitimate children
forms part of the estate c. Are excluded by no one
6. All others pro rata 2. Illegitimate children
a. Exclude illegitimate parents, collaterals and State
The order of preference abovementioned is applicable b. Concur with surviving spouse, legitimate children, and
when: legitimate parents
c. Are excluded by no one

51
 CIVIL LAW

3. Legitimate parents Persons who are absolutely incapacitated to succeed:

a. Exclude collaterals and the State
b. Concur with illegitimate children and surviving spouse 1. Those not living at the time of death of the testator
c. Are excluded by legitimate children 2. Those who cannot be identified (NCC, Art. 845).
4. Illegitimate parents 3. Those who are not permitted by law to inherit. (NCC, Art.
a. Exclude collaterals and State 1027)
b. Concur with surviving spouse
c. Are excluded by legitimate children and illegitimate Grounds for Relative Incapacity to Succeed (UMA)
children
5. Surviving spouse 1. Undue influence or interest (NCC, Art. 1027)
a. Excludes collaterals other than brothers, sister, 2. Morality or public policy (NCC, Art. 739)
nephews and nieces, and State 3. Acts of unworthiness (NCC, Art. 1032)
b. Concurs with legitimate children, illegitimate children,
legitimate parents, illegitimate parents, brothers, The following are incapacitated to succeed based on undue
sisters, nephews and nieces influence or interest (PRG-WPI)
c. Is excluded by no one
6. Brothers and Sister, nephews and nieces 1. The Priest who heard the confession of the testator during
a. Exclude all other collaterals and the State his last illness, or the minister of the gospel who extended
b. Concur with surviving spouse spiritual aid to him during the same period;
c. Are excluded by legitimate children, illegitimate 2. The Relatives of such priest or minister of the gospel within
children, legitimate parents and illegitimate parents the fourth degree, the church, order, chapter, community,
7. Other collaterals organization, or institution to which such priest or minister
a. Exclude collaterals in remoter degrees and the State may belong;
b. Concur with collaterals in the same degree 3. A Guardian with respect to testamentary dispositions given
c. Are excluded by legitimate children, illegitimate by a ward in his favor before the final accounts of the
children, legitimate parents, illegitimate parents, guardianship have been approved, even if the testator
surviving spouse, brothers and sisters, and nephews should die after the approval thereof; nevertheless, any
and nieces provision made by the ward in favor of the guardian when
8. State the latter is his ascendants, descendant, brother, sister, or
a. Excludes no one spouse, shall be valid;
b. Concurs with no one 4. Any attesting Witness to the execution of a will, the spouse,
c. Is excluded by everyone (Balane, 2010). parents, or children, or any one claiming under such
witness, spouse, parents, or children;
PROVISIONS COMMON TO TESTATE AND INTESTATE
SUCCESSION NOTE: Numbers 1 to 4 do not apply to legitimes.

Accretion 5. Any Physician, surgeon, nurse, health officer or druggist

who took care of the testator during his last illness;
Requisites of Accretion
NOTE: Number 5 is an absolute disqualification.
In order that the right of accretion may take place in a
testamentary succession, it shall be necessary: 6. Individuals, associations and corporations not permitted by
law to inherit (NCC, Art. 1027).
1. That two or more persons be called to the same inheritance,
or to the same portion thereof, pro indiviso; and The following are incapacitated to succeed based on
2. That one of the persons thus called die before the testator, or morality or public policy (ACO)
renounce the inheritance, or be incapacitated to receive it
(NCC, Art. 1016). 1. Persons guilty of Adultery or concubinage with the testator
at the time of the making of the will
In testamentary succession, accretion takes place in case of: 2. Persons guilty of the same Criminal offense, in
consideration thereof
1. Predecease ; 3. A public officer or his wife, descendants and ascendants, by
2. Incapacity ; reason of his Office (Art. 1028 in relation to Art. 739 of NCC).
3. Renunciation; (2000 BAR)
4. Non-fulfillment of the suspensive condition imposed upon
instituted heir ; and The following are incapacitated to succeed by reason of
5. Ineffective testamentary disposition unworthiness (P-CAV-AFP-F)

In intestate succession, accretion takes place in case of:
1. Predecease of legal heir;
2. Incapacity of legal heir ; and
3. Repudiation by legal heir
Determination of the Capacity to Succeed
GR: In order to judge the capacity of the heir, devisee, or legatee,
his qualification at the time of the death of the decedent shall be
the criterion.
XPN: If the institution, devise or legacy should be conditional
(suspensive condition), the capacity is to be determined not only
at the time of the death of the decedent but also at the time of the
fulfillment of the condition.
1. Parents who have abandoned their children or induced
their daughters to lead a corrupt or immoral life, or
attempted against their virtues
2. Persons Convicted of an attempt against the life of the
testator, his or her spouse, descendants or ascendants
3. Persons who Accused the testator of a crime for which the
law prescribes imprisonment for six years or more, if the
accusation has been found to be groundless
4. Heir of full age who, having knowledge of the Violent death
of the testator, should fail to report it to an officer of the law
within a month unless the authorities have already taken
action.
NOTE: This prohibition shall not apply to cases wherein,
according to law, there is no obligation to make an
accusation.

The governing law in determining the capacity to succeed of the 5. Person convicted of Adultery or concubinage with the
heir, devisee, legatee is the law of the nation of the decedent. spouse of the testator
(1998, 2004 BAR)

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 UST LAW PRE-WEEK NOTES 2017

6. Person who by Fraud, violence, intimidation, or undue The partition may be effected either:
influence should cause the testator to make a will or to
change one already made 1. By the decedent himself during his lifetime by an act
7. Person who by the same means Prevents another from 2. inter vivos or by will
making a will, or from revoking one already made, or who 3. By a third person designated by the decedent or by the heirs
supplants, conceals, or alters the latter's will themselves
8. Person who Falsifies or forges a supposed will of the 4. By a competent court in accordance with the New Rules of
decedent (NCC, Art. 1032). Court

NOTE: Grounds 1, 2, 3, 5 and 6 are the same grounds as in Partition may be demanded by:
disinheritance. Numbers 6, 7 and 8 cover six (6) acts which
relate to wills: 1. Compulsory heir
2. Voluntary heir
1. Causing the testator to make a will 3. Legatee or devisee
2. Causing the testator to change an existing will 4. Person who has acquired an interest in the estate
3. Preventing the decedent from making a will
4. Preventing the testator from revoking his will Partition cannot be demanded when: (PAPU)
5. Supplanting, concealing, or altering the testator's will.
6. Falsifying or forging a supposed will of the decedent. 1. Expressly Prohibited by testator for a period not more than
20 years
Principal characteristics of acceptance and repudiation 2. Co-heirs Agreed that estate not be divided for period not
more than 10 years, renewable for another 10 years
1. It is voluntary and free 3. Prohibited by law
2. It is retroactive 4. To partition estate would render it Unserviceable for use
3. Once made, it is irrevocable for which it was intended

Inheritance is deemed accepted:
1. When the heir sells, donates, or assigns his rights
2. When the heir renounces it for the benefit of one or more
heirs
3. When renunciation is in favor of all heirs indiscriminately
for consideration
4. Other tacit acts of acceptance:
a. Heir demands partition of the inheritance
b. Heir alienates some objects of the inheritance
c. Acts of preservation or administration if, through
such acts, the title or capacity of the heir has been
assumed
d. Under Art. 1057 of the NCC, failure to signify
acceptance or repudiation within 30 days after an
order of distribution by the probate court.
Ways by which the repudiation of the inheritance, legacy or
devise may be made
1. By means of a public instrument
2. By means of an authentic instrument
3. By means of a petition presented to the court having
jurisdiction over the testamentary or intestate
proceedings.
Effect of repudiation if an heir is both a testate and legal heir
If an heir is both a testate and legal heir and he repudiated the
inheritance as a testate heir, he is understood to have repudiated
in both capacities. However, should he repudiate as a legal heir,
without knowledge of being a testate heir, he may still accept the
inheritance as a testate heir.
Remedy if the heir repudiates the inheritance to the
prejudice of his creditors
If the heir repudiates the inheritance to the prejudice of his own
creditors, the latter may petition the court to authorize them to
accept it in the name of the heir.
Partition and Distribution of Estate
Partition, in general, is the separation, division and assignment
of a thing held in common among those to whom it may belong.
The thing itself may be divided or its value (NCC, Art. 1079).
Every act which is intended to put an end to indivision among
co-heirs and legatees or devisees is deemed to be a partition,
although it should purport to be a sale, an exchange, a
compromise, or any other transaction (NCC, Art. 1082).
An estate can be partitioned inter vivos. Such partition shall be
respected, insofar as it does not prejudice the legitime of
compulsory heirs. (See Art. 1080)
Effects of the Inclusion of an Intruder in Partition
1. Between a true heir and several mistaken heirs – partition is
void.
2. Between several true heirs and a mistaken heir –
transmission to mistaken heir is void.
3. Through the error or mistake; share of true heir is allotted to
mistaken heir – partition shall not be rescinded unless there
is bad faith or fraud on the part of the other persons
interested, but the latter shall be proportionately obliged to
pay the true heir of his share.
In the partition of the estate, equality shall be observed as far as
possible, dividing the property into lots, or assigning to each of
the co-heirs things of the same nature, quality and kind. (NCC,
Art. 1085)
Indivisible thing
Should a thing be indivisible, or would be much impaired by its
being divided, it may be adjudicated to one of the heirs, provided
he shall pay the others the excess in case.
Nevertheless, if any of the heirs should demand that the thing be
sold at public auction and that strangers be allowed to bid, this
must be done (NCC, Art. 1086).
Heir selling his hereditary rights to a stranger
Should any of the heirs sell his hereditary rights to a stranger
before the partition, any or all of the co-heirs may be subrogated
to the rights of the purchaser by reimbursing him for the price
of the sale, provided they do so within the period of one (1)
month from the time they were notified in writing of the sale by
the vendor (NCC, Art. 1088).
Rescission and Nullity of Partition
A partition may be rescinded or annulled for the same causes as
contracts (NCC, Art. 1097).
It may also be rescinded on account of lesion, when any one of
the co-heirs received things whose value is less, by at least 1/4,
than the share to which he is entitled, considering the value of
the things at the time they were adjudicated (NCC, Art. 1098).
Prescriptive Period

53
 CIVIL LAW
The action for rescission on account of lesion shall prescribe
after 4 years from the time the partition was made.
PART – XII – LAND TITLES AND DEEDS
TORRENS SYSTEM
Q: What is a Torrens system?
A: It is a system for registration of land under which, upon the
landowner’s application, the court may, after appropriate
proceedings, direct the Register of Deeds for the issuance of a
certificate of title.
The real purpose of Torrens System of land registration is to
quiet title to land and stop forever any question as to its legality.
Once a title is registered, the owner may rest secure without the
necessity of waiting in the portals of court to avoid the
possibility of losing his land.
Q: Is registration a mode of acquiring ownership?
A: NO. Registration of a piece of land under the Torrens System
does not create or vest title, because it is not a mode of acquiring
ownership. A certificate of title is merely an evidence of
ownership or title over the particular property described
therein. Thus, notwithstanding the indefeasibility of the Torrens
title, the registered owner may still be compelled to reconvey the
registered property to its true owners (Heirs of Tanyag vs.
Gabriel, et. al.; G.R. No. 175763, April 11, 2012).
Q: What are the modes of acquiring title over land?
A:
1. By possession of land since time immemorial
2. By possession of alienable and disposable public land
3. By sale, donation, and other modes of acquiring ownership
Q: Enumerate the ways to acquire land titles.
A: The acquisition of land titles can be made through the
following:
1. Public grant
2. Emancipation patent or grant
3. Reclamation
4. Adverse possession / acquisitive prescription
5. Private grant or voluntary transfer
6. Accretion
7. Involuntary alienation
8. Descent or devise
Q: What are the effects of the issuance of a Torrens title?
A:
1. The land is placed under the operation of torrens system;
2. Land is relieved from all claims except those noted thereon
and provided by law;
3. The land becomes incontrovertible and indefeasible;
4. Title to the land becomes non-prescriptible; and
5. The certificate of title is not subject to collateral attack.
Q: Eljay donated a parcel of land embodied in a Deed of
Donation to Kristoffer which is yet to be registered.
Kristoffer took possession of the land in the concept of an
owner. Two years thereafter, Eljay caused the registration
of the land and obtained a homestead patent. Upon Eljay’s
death, his heirs partitioned the lands and now claim that the
donated land to Kristoffer also belongs to them.
Interestingly, the land at the time it was donated was still
part of the inalienable public domain and the State only
ceded its rights over the land to Eljay two years from said
donation. Was the donation valid?
A: NO. The donation is void. At the time the Deed of Donation
was executed by Eljay the subject property was part of the
inalienable public domain. It was only almost after two years
54
later that the State ceded its right over the land in favor of Eljay
by granting their patent application and issuing an original
certificate of title in their favor. Prior to such conferment of title,
Eljay possessed no right to dispose of the land which, by all
intents and purposes, belongs to the State.
The classification of public lands is an exclusive prerogative of
the executive department of the government and not the Courts.
In the absence of such classification, the land remains as an
unclassified land until it is released therefrom and rendered
open to disposition. Hence, the donation of the subject property
is null and void from the very start (Heirs of Gozo v. PUMCO, G.R.
No. 195990, August 05, 2015).
Q: Explain the nature of “Indefeasibility and
incontrovertibility of certificates of title”
A: The certificate, once issued, becomes a conclusive evidence of
the title/ownership of the land referred to therein. What
appears on the face of the title is controlling on questions of
ownership of the property in favor of the person whose name
appears therein and such cannot be defeated by adverse, open,
and notorious possession; neither can it be defeated by
prescription.
One who deals with property registered under the Torrens
system need not go beyond the certificate of title, but only has to
rely in the certificate of title (Mae Flor Galido v. Nelson Magrare,
G.R. No. 208654, January 11, 2016).
Rules as regards the indefeasibility and incontrovertibility
of Torrens Title
1. The certificate of title serves as evidence of an indefeasible
title to the property in favor of the person whose name
appears therein.
2. After the expiration of the one (1) year period from the
issuance of the decree of registration upon which it is based,
it becomes incontrovertible.
3. Decree of registration and the certificate of title issued
pursuant thereto may be attacked on the ground of actual
fraud within one (1) year from the date of its entry and such
an attack must be direct and not by a collateral proceeding.
The validity of the certificate of title in this regard can be
threshed out only in an action expressly filed for the
purpose.
Q: Does the defense of indefeasibility of a Torrens title
extend to a transferee who took it with notice of a flaw in the
title of his transferor?
A: NO. To be effective, the inscription in the registry must have
been made in good faith. A holder in bad faith of a certificate of
title is not entitled to the protection of the law, for the law cannot
be used as a shield for fraud (Adoracion Rosales Rufloe, et al., v.
Leonarda Burgos et al., G.R. No. 143573, January 30, 2009).
REGALIAN DOCTRINE
Explain the concept of “Regalian Doctrine”
A time-honored constitutional precept that all lands of the public
domain belong to the State, and that the State is the source of any
asserted right to ownership in land, and charged with the
conservation of such patrimony.
Under the Regalian doctrine, land that has not been acquired
from the government, either by purchase, grant, or any other
mode recognized by law, belongs to the State as part of the public
domain. Thus, it is indispensable for a person claiming title to a
public land to show that his title was acquired through such
means. To prove that the subject property is alienable and
disposable land of the public domain, respondents presented the
Community Environment and Natural Resources Office
Certificate (CENRO). However, a CENRO or PENRO Certification
is not enough to certify that a land is alienable and disposable
(Republic v. San Mateo, et al., G.R. No. 203560, November 10,
2014).
 UST LAW PRE-WEEK NOTES 2017
The applicant for land registration must prove that the DENR
Secretary had approved the land classification and released the
land of the public domain as alienable and disposable, and that
the land subject of the application for registration falls within the
approved area per verification through survey by the PENRO or
CENRO. In addition, the applicant for land registration must
present a copy of the original classification approved by the
DENR Secretary and certified as a true copy by the legal
custodian of the official records.
Q: Rosario filed her application for land registration of a rice
land that she had inherited, owning and possessing it
openly, publicly, uninterruptedly, adversely against the
whole world, and in the concept of owner since then; that
the land had been declared in her name for taxation
purposes. An opposition was interposed in behalf of the
Government that whatever legal and possessory rights
Rosario had acquired by reason of any Spanish government
grants had been lost, abandoned or forfeited for failure to
occupy and possess the land for at least 30 years
immediately preceding the filing of the application; and that
the land applied for, being actually a portion of a river
control system that could not be subject of appropriation or
land registration and that the land was within an
unclassified region. Is the land subject of application for
registration susceptible of private acquisition?
A: NO. The land of the public domain, to be the subject of
appropriation, must be declared alienable and disposable either
by the President or the Secretary of the DENR. Unless public land
is shown to have been reclassified or alienated to a private
person by the State, it remains part of the inalienable public
domain. Indeed, "occupation thereof in the concept of owner, no
matter how long, cannot ripen into ownership and be registered
as a title." In this problem, Rosario did not present any evidence
of the land, albeit public, having been declared alienable and
disposable by the state. (Republic vs. De Joson, G.R. No. 163767,
March 10, 2014)
CITIZENSHIP REQUIREMENT
Q: Who are qualified to acquire private lands?
A:
1. Filipino citizens;
2. Filipino corporations and associations as defined in Sec. 2,
Article XII of the Constitution and by exception;
3. Aliens, but only by hereditary succession; and
4. A natural-born citizen of the Philippines who has lost
citizenship may be a transferee of private lands subject to
limitations provided by law.
NOTE: Filipino citizens can both acquire or otherwise hold lands
of public domain.
Q: May an alien acquire private lands?
A: GR: An alien cannot acquire private lands.
XPN: Acquisition by aliens is allowed when it is thru hereditary
succession.
Under R.A. No. 4726, foreign nationals can own Philippine real
estate through the purchase of condominium units or
townhouses. It expressly allows foreigners to acquire
condominium units and shares in condominium corporations up
to not more than 40% of the total and outstanding capital stock
of a Filipino owned or controlled corporation. The land is owned
by the condominium corporation and the unit owner is simply a
member in this condominium corporation.
ORIGINAL REGISTRATION
Q: Who are qualified for registration in ordinary
registration proceedings?
1. Those who by themselves or through their predecessors-in-
interest have been in open, continuous, exclusive, and
notorious possession and occupation of alienable and
55
disposable lands of public domain under a bona fide claim
of ownership since June 12, 1945 or earlier (OCENCO);
Q: In order that an alienable and disposable land of the
public domain may be registered under Section 14(1) of P.D.
1529, should the land be classified as alienable and
disposable as of June 12, 1945 or is it sufficient that such
classification occur at any time prior to the filing of the
applicant for registration provided that it is established that
the applicant has been in open, continuous, exclusive and
notorious possession of the land under a bona fide claim of
ownership since June 12, 1945 or earlier?
A: In the landmark case of Malabanan v. Republic, the Court en
banc reiterated that the law does not require that the land
subject of registration should have been alienable and
disposable DURING the entire period of possession, or since June
12, 1945. It is sufficient that the land is already declared as
alienable and disposable land AT THE TIME the application for
registration is filed so as to entitle the possessor to registration
(Malabanan v. Republic, G.R. No. 179987, April 29, 2009).
2. Those who have acquired ownership of private lands by
prescription under provisions of existing laws;
GR: Properties of public dominion cannot be acquired by
prescription.
There must be an express declaration by the State that the
public dominion property is no longer intended for public
service or the development of the national wealth or that
the property has been converted into patrimonial. Without
such express declaration, the property, even if classified as
alienable or disposable, remains property of the public
dominion, and thus incapable of acquisition by prescription
(Republic of the Philippines v. Andrea Tan, G.R. No. 199537,
February 10, 2016). It is only when such alienable and
disposable lands are expressly declared by the State to be
no longer intended for public service or for the
development of the national wealth that the period of
acquisitive prescription can begin to run. Such declaration
shall be in the form of a law duly enacted by Congress or a
Presidential Proclamation in cases where the President is
duly authorized by law.
XPN: Where the law itself so provides. Thus, patrimonial
property of the state may be the subject of acquisition
through prescription.
Under ordinary acquisitive prescription, a person acquires
ownership of a patrimonial property through possession
for at least 10 years, in good faith and with just title. Under
extraordinary acquisitive prescription, a person’s
uninterrupted adverse possession of patrimonial property
for at least 30 years, regardless of good faith or just title,
ripens into ownership.
NOTE: For one to invoke the provisions of Section 14(2)
and set up acquisitive prescription against the state, it is
primordial that the status of the property as patrimonial be
first established. Furthermore, the period of possession
preceding the classification of the property as patrimonial
cannot be considered in determining the completion of the
prescriptive period.
Adverse, continuous, open, public possession in the concept
of an owner is a conclusion of law and the burden to prove
it by clear, positive and convincing evidence is on the
applicant. A claim of ownership will not proper on the basis
of tax declarations if unaccompanied by proof of actual
possession.
The counting of the thirty (30)-year prescriptive period for
purposes of acquiring ownership of a public land under
section 14(2) can only start from the issuance of DARCO
conversion order. Before the property was declared
patrimonial by virtue of such conversion order, it cannot be
 CIVIL LAW
acquired by prescription (Jean Tan, et al. v. Republic of the
Philippines; G.R. No. 193443, April 16, 2012).
3. Those who have acquired ownership of private lands or
abandoned river beds by right of accession or accretion
under the existing laws.
4. Those who have acquired ownership of land by any other
manner provided for by law.
Requisites for the filing of an application under Sec. 14(1) of
PD. No. 1529
1. That the property is an agricultural land of public domain;
2. That it has been classified by a positive act of government
as alienable and disposable (A and D);
3. That the applicant, by himself or through his predecessors-
in-interest has been in open, continuous, exclusive and
notorious possession and occupation of the land in the
concept of owner (OCENCO); and
4. That such possession and occupation is under a bona fide
claim of ownership since June 12, 1945 or earlier.
Q: What are the instances when Register of Deeds may deny
registration?
A:
1. Where there are more than one copy of the owner’s
duplicate certificate of title and not all such copies are
presented in the Register of Deeds
2. Where the voluntary instrument bears on its face infirmity
3. Where the validity of the instrument sought to be registered
is in issue in a pending suit in court
4. When the document is not verified and notarized.
Q: Discuss the rule where two or more certificates cover the
same land.
A: The general rule is that where two certificates of title are
issued to different persons 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
one 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 second certificate (Director of Lands v. CA, G.R.
No. L-45168, January 27, 1981).
Q: Who is an innocent purchaser for value?
A: An innocent purchaser for value is one who buys the property
of another without notice that some other person has a right to
or interest in it, and who pays a full and fair price at the time of
the purchase or before receiving any notice of another person’s
claim (Locsin v. Hizon, et al., G.R. No. 204369, September 17, 2014).
Q: What is the remedy if the property has already passed
into the hands of an innocent purchaser for value?
A: The remedy is to file action for damages from the person who
allegedly registered the property from fraud, or if he had become
insolvent or if the action is barred by prescription, to file an
action for recovery against the Assurance fund within a period
of 6 years from the time the right to bring such action accrues.
Q: A parcel of land originally owned by Renato was
mortgaged and foreclosed by China Bank. As a result, TCT
was issued in favor of China Bank. China Bank later on sold
the said land in favor of CDC Corporation and another TCT
was issued in favor of the latter. CDC Corporation now
brought an action for unlawful detainer in the MeTC against
the Renato and the other occupants of the property. The
Renato counters that CDC acquired the property from China
Bank in bad faith as it had an actual knowledge of the
possession of the property by him and his siblings and that
CDC ignored the failure of China Bank to warrant its title. Is
Renato correct?
A: NO. One who deals with property registered under the
Torrens system need not go beyond the certificate of title, but
only has to rely on the certificate of title. He is charged with
56
notice only of such burdens and claims as are annotated on the
title. Considering that China Banks TCT was a clean title, that is, it
was free from any lien or encumbrance, CDC had the right to rely,
when it purchased the property, solely upon the face of the
certificate of title in the name of China Bank. The CAs ascribing
of bad faith to CDC based on its knowledge of the adverse
possession of the respondent’s siblings at the time it acquired
the property from China Bank was absolutely unfounded and
unwarranted. That possession did not translate to an adverse
claim of ownership that should have put CDC on actual notice of
a defect or flaw in the China Banks title. (Casimiro Development
Corporation v. Mateo, G.R. no. 175485, 27 July 2011)
SUBSEQUENT REGISTRATION
It is where incidental matters after original registration may be
brought before the land registration court by way of motion or
petition filed by the registered owner or a party in interest.
GR: Such deed, mortgage, lease, or other voluntary instrument
shall operate only as a contract between the parties and as
evidence of authority to the Register of Deeds to make
registration. It is the act of registration which shall operate to
convey or affect the land insofar as third persons are concerned,
and in all cases, the registration shall be made in the office of the
Register of Deeds for the province or city where the land lies. The
act of registration creates a constructive notice to the whole
world of such voluntary or involuntary instrument or court writ
or process (Sec. 52, PD 1529).
XPN: A will purporting to convey or affect registered land shall
take effect as a conveyance or bind the land, not merely as a
contract or evidence of authority of the RD to make registration
(Sec. 51, PD 1529).
VOLUNTARY DEALINGS
Q: Are voluntary dealings required to be registered?
A: Voluntary Dealings are not required to be registered.
Registration is not a requirement for validity of the contract as
between the parties. However, the act of registration shall be the
operative act to convey or affect the land insofar as third
parties are concerned.
Q: What are the requirements for registrability of deeds and
other voluntary acts of conveyance?
A:
1. Presentation of owner’s duplicate certificate whenever any
duly executed voluntary instrument is filed for registration;
2. Inclusion of one extra copy of any document of transfer or
alienation of real property, to be furnished to the city or
provincial assessor;
3. Payment of prescribed registration fees and requisite
documentary stamps; and
4. Evidence of full payment of real estate tax as may be due.
Q: Is non-registration of property after judicial foreclosure
and sale had the effect of invalidating the foreclosure
proceedings, such that ownership reverts to the original
owner?
A: NO. The effect of the failure of Apolinario Cruz to obtain the
judicial confirmation was only to prevent the title to the
property from being transferred to him. For sure, such failure
did not give rise to any right in favor of the mortgagor or the
respondents as his successors-in-interest to take back the
property already validly sold through public auction. Nor did
such failure invalidate the foreclosure proceedings. To maintain
otherwise would render nugatory the judicial foreclosure and
foreclosure sale, thus unduly disturbing judicial stability (Robles
v. Yapcinco, G.R. No. 169568, October 22, 2014).
INVOLUNTARY DEALINGS
Q: Is registration required in involuntary dealings?
 UST LAW PRE-WEEK NOTES 2017
A: YES. Involuntary dealings, unlike the voluntary dealings,
requires the registration. It is the act of registration which
creates a constructive notice to the whole world of such
instrument or court writ or process and is the operative act that
conveys ownership or affects the land insofar as third persons
are concerned.
Involuntary dealings that must be registered
1. Attachment
2. Adverse claim
3. Notice of lis pendens
Q: How is adverse claim registered?
A: An adverse claim is registered by filing with the Register of
Deeds a sworn petition stating the basis of the right claimed. The
duty of the Register of Deeds to record the same on the title is
ministerial. The notice of adverse claim is to apprise the third
person that there is controversy over the ownership of the land,
such that any transaction regarding the land is subject to the
outcome of the dispute (Ching v. Enrile, GR. No. 156076, Sept 17,
2008).
Q: What is a notice of lis pendens?
A: A notice of lis pendens is an announcement to the whole world
that a particular real property is in litigation, serving as a
warning that one who acquires an interest over the said
property does so at his own risk or that he gambles on the result
of the litigation of the said property Dela Merced v. GSIS, G.R. No.
125038, Nov. 16, 2001). Thus, one who buys land where there is
a pending notice of lis pendens cannot invoke the right of a
purchaser in good faith; neither can he have acquired better
rights than those of his predecessor in interest (Yu v. CA, G.R. No.
109078, Dec. 25, 1995).
Q: When may a notice of lis pendens be availed of?
A: The litigation must involve the title to, or the use or
occupration of, a specific property. It does not apply where the
object of the suit is money judgment, or proceedings for the
probate of will or administration of the estate of a deceased
person, levy on execution or preliminary attachments (MR
Holdings Ltd. V. Bajar, GR No. 153478, October 10, 2012). A notice
of lis pendens subject the interest of the transferee to the result
of pending suit.
NON-REGISTRABLE PROPERTIES
Q: What are non-registrable properties?
A:
1. Property of public domain or those intended for public use,
public service or development of the national wealth.
2. Forest or timber lands
3. Water sheds
4. Mangrove swamps
5. Mineral lands
6. Parks and plazas
7. Military or naval reservations
8. Foreshore lands
9. Reclaimed lands
10. Submerged areas
11. River banks
12. Lakes
13. Reservations for public and semi-public purposes
14. Other similar character.
DEALINGS WITH UNREGISTERED LANDS
Registration of instruments dealing with unregistered land
The system of registration under the Spanish Mortgage Law, by
express provision of Section 2 of the Property Registration
Decree, has been discontinued and all lands registered under
said system which are not yet covered by Torrens titles shall be
considered unregistered lands. However, all instruments
affecting lands originally registered under the Spanish Mortgage
57
Law may be recorded under Section 113 of the decree until the
land shall have been brought under the operation of the Torrens
system. The books of registration of the Revised Administrative
Code, as amended by Act No. 3344, shall continue to be in force,
provided that unregistered lands shall henceforth be registered
under Section 113 (Agcaoili, 2015).
Where registered land has been the subject of a transaction and
this was recorded under Act No. 3344, such recording does not
bind third persons since registration thereunder refers to
properties not registered under the Land Registration Act, and,
hence, not effective for purposes of Article 1544 of the Civil Code
on double sales. Registration of instruments, in order to affect
and bind the land, must be done in the proper registry (Soriano
v Magali, G.R No. L-15133, July 31, 1953).
PART XIII – TORTS AND DAMAGES
GENERAL PRINCIPLES
Q: What civil liabilities may arise due to an act or omission
of one, causing damage to another?
A:
1. Civil liability ex delicto
NOTE: Every person criminally liable for a felony is also
civilly liable (RPC, Art.100).
2. Independent civil liabilities, such as those:
a. Not arising from an act or omission complained of as a
felony, e.g., culpa contractual or obligations arising
from law under Article 31 of the New Civil Code (such
as breach of contract or tort), intentional torts under
Articles 32 and 34, and culpa aquiliana under Article
2176 of the New Civil Code.
b. Where the injured party is granted a right to file an
action independent and distinct from the criminal
action under Article 33 of the New Civil Code (in cases
of defamation, fraud and physical injuries).
Q: What are the elements of quasi-delict? (1993, 1997, 2006,
2007, 2010 BAR)
A:
1. Damage to the Plaintiff;
2. Negligence, by act or omission, of which defendant, or some
person for whose acts, must respond, was guilty; and
3. Connection of cause and effect between such negligence and
damage (FGU Insurance Corp. v. CA, G.R. No. 118889, March
23, 1998).
CLASSIFICATION OF TORTS
1. NEGLIGENT TORTS
Q: What is the test of negligence?
A: The test is would a prudent man, in the position of the
tortfeasor, foresee harm to the person injured as a reasonable
consequence of the course about to be pursued? If so, the law
imposes a duty on the actor to take precaution against its
mischievous results, and failure to do so constitutes negligence
(Picart v. Smith, G.R. No. L-12219, March 15, 1918).
Q: What is the doctrine of comparative negligence?
A: The negligence of both the plaintiff and the defendant are
compared for the purpose of reaching an equitable
apportionment of their respective liabilities for the damages
caused and suffered by the plaintiff (Pineda, 2009).
The relative degree of negligence of the parties is considered in
determining whether, and to what degree, either should be
responsible for his negligence (apportionment of damages).
 CIVIL LAW

2. INTENTIONAL TORTS c) place of birth;

d) physical defect; or
Q: What is intent from the point of view of torts? e) other personal condition (NCC, Art. 26).

A: It refers either to a person’s desire that certain consequences

INFLICTION OF EMOTIONAL DISTRESS
result from his actions or even his knowledge that those results
are substantially certain to occur as a result of his actions
(Garratt v. Dailey, 46 Wash 2d 197, 1955). Requisites (ICE-D)

A. INTENTIONAL PHYSICAL HARM The plaintiff must show that:

1. The conduct of the defendant was intentional or in reckless
ASSAULT (GRAVE THREAT) disregard of the plaintiff;
2. The conduct was extreme and outrageous;
3. There was a causal connection between the defendant’s
Elements (LICA3)
conduct and the plaintiff’s mental distress; and
4. The plaintiff’s mental distress was extreme and severe
1. That a person committed a voluntary Act;
(MVRS Publications Inc. v. Islamic Da’wah Council of the
2. That the person’s act created in another person an
Philippines, G.R. No. 135306, January 28, 2003).
Apprehension of immediate harmful or offensive contact
with the latter’s person;
NOTE: Even if there was no intentional infliction of emotional
3. That the person Intended to cause either a harmful or
distress in one case, the SC recognized the possibility that one
offensive contact or an apprehension of such a contact;
may be made liable for the tort of intentional infliction of
4. That there was a Causal connection between the attacker
emotional distress.
and the other person’s apprehension;
5. The victim Lacks consent.
VIOLATION OF PRIVACY
FALSE IMPRISONMENT (DIGNITARY TORT/ILLEGAL
Q: What are the zones of privacy under the NCC, RPC, Rules
DETENTION) of Court, and special laws?

Elements (CACAI) A:

1. An Act or omission on the part of defendant that confines or 1. That every person shall respect the dignity, personality,
restrains plaintiff; privacy and peace of mind of his neighbors and other
2. That plaintiff is confined or restrained to a bounded area; persons and any act of a person of meddling and prying into
3. Intent; the privacy of another is punishable as an actionable wrong;
4. Causation; and 2. That a public officer or employee or any private individual
5. Awareness of the defendant of the confinement that the shall be liable for damages for any violation of the rights and
defendant was actually harmed by it. liberties of another person, and recognizes the privacy of
letters and other private communications;
TRESPASS TO CHATTELS (TROVER) 3. The RPC makes a crime the:
a. Violation of secrets by an officer;
Elements (PAI) b. Revelation of trade and industrial secrets; and
c. Trespass to dwelling.
1. The defendant took a voluntary Act which interfered with 4. Invasion of privacy is likewise an offense in special laws
the plaintiff’s right of possession in the chattel. It could such as the:
either be dispossession (taking possession to the exclusion a. Anti-wiretapping law; and
of the owner) or intermeddling (touching or harming it b. Secrecy of bank deposits act; and
without removing it from the owner’s possession); 5. The Rules of Court provisions on privileged communication.
2. The defendant Intended the interference; and
3. The plaintiff either Possessed or had the immediate right to MALICIOUS PROSECUTION
possess the same.

NOTE: Damages must be proven if the act is intermeddling, Elements

but if the act is dispossession, actual damages need not be
proven. In criminal cases

B. INTENTIONAL NON-PHYSICAL HARMS
VIOLATION OF PERSONAL DIGNITY
Q: What is the rule with respect to the right of a person to
his dignity, personality, privacy and peace of mind?
1. The fact of the prosecution and the further fact that the
defendant was himself the prosecutor, and that the action
was terminated with an acquittal;
2. That in bringing the action, the prosecutor acted without
probable cause; and
3. The prosecutor was actuated or impelled by legal malice
(Yasoña v. Ramos, G.R. No. 156339, October 6, 2004).

A: Every person shall respect the dignity, personality, privacy
and peace of mind of his neighbors and other persons. The
following and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for damages,
prevention and other relief:
To constitute malicious prosecution, there must be proof that
the prosecution was prompted by a sinister design to vex and
humiliate a person, and that it was initiated deliberately,
knowing that the charges were false and groundless (Pineda,
2009).

1. Prying into the privacy of another's residence; In civil cases

2. Meddling with or disturbing the private life or family
relations of another; 1. The defendant filed a civil action against the plaintiff
3. Intriguing to cause another to be alienated from his friends; previously;
and 2. The action was dismissed for clear lack of merit or for being
4. Vexing or humiliating another on account of his: baseless, unfounded, and malicious;
3. The defendant who filed the previous complaint as plaintiff
a) religious beliefs; was motivated by ill-will or sinister design; and
b) lowly station in life;

58
 UST LAW PRE-WEEK NOTES 2017
4. The present plaintiff suffered injury or damage by reason of
the previous complaint filed against him (Pineda, 2009).
NOTE: A disbarment proceeding being judicial in character may
therefore be the basis for a subsequent action for malicious
prosecution (Ponce v. Legaspi, et al., G.R. No. 79184, May 6, 1992).
DEFAMATION
Requisites (DIP-M)
1. It must be Defamatory;
2. It must be Malicious;
3. It must be given Publicity; and
4. The victim must be Identifiable (Alonzo v. CA, G.R. No.
110088, February 1, 1995).
NOTE: “Publicity” is the communication of the defamatory
matter to some third person or persons.
Q: Is the defense of expressing one’s opinion or belief
tenable?
A: NO. Allegation that the offender merely expresses his opinion
or belief is not a defense in defamation cases. To escape criminal
responsibility, it is not enough for the offender to say that he
expresses therein no more than his opinion or belief. The
communication must be made in the performance of a “legal,
moral, or social duty.”
VIOLATION OF RIGHTS COMMITTED BY PUBLIC OFFICERS
Requisites
1. Defendant is a public officer charged with the performance
of a duty in favor of the plaintiff;
2. He refused or neglected without just cause to perform such
duty (ministerial);
3. Plaintiff sustained material or moral loss as consequence of
such non-performance; and
4. The amount of such damages, if material.
DEFENSES TO INTENTIONAL TORTS
Q: Can the consent of the injured party be considered as a
defense by the tortfeasor?
A: Typically, one cannot hold another liable in tort for actions to
which one has consented. This is frequently summarized by the
phrase "volenti non fit injuria" ("to a willing person, no injury is
done" or "no injury is done to a person who consents"). It
operates when the claimant either expressly or implicitly
consents to the risk of loss or damage.
NOTE: Consent is willingness in fact for the conduct to occur.
Q: Is consent a defense if the plaintiff or offended party is a
minor?
A: NO. For one to surrender the right to be free from intentional
interference by others, one must have the mental capacity to
consent. Defendant can be liable despite the fact that the plaintiff
was subjectively willing and communicated that willingness to
the defendant.
Q: Can self-defense be used as a defense to escape liability?
A: YES. An actor is privileged to defend himself against another
by force likely to cause death or serious bodily harm when he
reasonably believes that:
1. The other is about to inflict upon him an intentional contact
and
2. He is thereby put in peril of death or serious bodily harm
which can safely be prevented only by immediate use of
such force.
59
NOTE: Court requires objective and subjective belief
(reasonable person could have seen the situation as dangerous
and subject believed that he was in danger).
3. STRICT LIABILITY
There is no requirement to prove negligence or intent.
A. POSSESSOR AND USER OF AN ANIMAL
Q: What is the liability for damages caused by animals?
A: GR: The possessor or whoever makes use of the animal is
liable independent of fault.
XPN: When the damage is caused by force majeure or by the
person who suffered the damage.
B. NUISANCE
Q: What is the doctrine of Attractive Nuisance?
A: One who maintains on his premises dangerous
instrumentalities or appliances of a character likely to attract
children in play, and who fails to exercise ordinary care to
prevent them from playing therefrom is liable to a child of tender
years who is injured thereby, even if the child is a trespasser
(Hidalgo v. Balandan, G.R. No. L-3422, June 13, 1952).
THE TORTFEASOR
Q: What is the liability of tortfeasors?
A: The responsibility of two or more persons who are liable for
quasi-delict is solidary (NCC, Art. 2194). Each are liable as
principals, to the same extent and in the same manner as if they
had performed the wrongful act themselves (Ruks Konsult and
Construction v. Adworld Sign and Advertising Corp., G.R. No.
204866, January 21, 2015).
ACT OR OMISSION AND ITS MODALITIES
Q: What is the forseeability test?
It is the test to determine the existence of negligence is whether
a prudent man could foresee harm as a result of the course
actually pursued (Picart v. Smith, Jr., G.R. No. L-12219, March 15,
1918).
Q: When is negligence excused?
A: GR: Negligence is excused when events that transpired were
unforeseen or, which though foreseen, were inevitable (NCC, Art.
1174).
XPN:
1. In cases specified by law;
2. When declared by stipulation; or
3. When the nature of the obligation requires the assumption
of risk.
Q: What is the principle of vicarious liability or law on
imputed negligence? (2001-2006, 2009, 2010 BAR)
A: The obligation imposed by Article 2176 of the NCC for quasi-
delicts is demandable not only for one's own acts or omissions,
but also for those persons for whom one is responsible (NCC, Art.
2180).
NOTE: A person or juridical entity is made liable solidarily with
a tortfeasor simply by reason of his relationship with the latter.
Q: What is the nature of responsibility of a vicarious
obligor?
 CIVIL LAW
A: Primary and direct, not subsidiary. He is solidarily liable with
the tortfeasor. His responsibility is not conditioned upon the
insolvency of or prior recourse against the negligent tortfeasor
(De Leon Brokerage v. CA, G.R. 15247, February 28, 1962).
Q: What constitutes a common defense?
A: The vicarious liability shall cease when the defendants prove
that they observed all the diligence of a good father of a family to
prevent damage (NCC, Art. 2180; Cuadra v. Monfort, G.R. No. L-
24101 September 30, 1970).
Persons Vicariously Liable (F-GOES-T)
1. Father, or in case of death or incapacity, mother:
a. Damage caused by minor children
b. Living in their company
2. Guardians:
a. For minors or incapacitated persons
b. Under their authority
c. Living in their company
3. Owners and managers of establishments:
a. For their employees
b. In the service of the branches in which they are
employed, or;
c. On the occasion of their functions
4. Employers:
a. Damages caused by employees and household helpers
b. Acting within the scope of their assigned tasks
c. Even if the employer is not engaged in any business or
industry
When an injury is caused by the negligence of an employee
there instantly arises a presumption of the law that
there was negligence on the part of the employer either
in the selection of his employee or in the supervision
over him after such selection. The presumption, however,
may be rebutted by a clear showing on the part of the
employer that it had exercised the care and diligence of a
good father of a family in the selection and supervision of
his employee (Travel & Tours Advisers, Inc., v. Alberto Cruz,
et al., G.R. No. 199282, March 14, 2016).
5. 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:
a. Of arts and trades
b. For damages caused by their pupils and students or
apprentices
c. So long as they remain in their custody (Art. 2180).
Q: What is the rule on vicarious liability of owners and
managers of establishments under Article 2180(5)? (1991,
2001 BAR)
A: GR: It is required that the employee must be performing his
assigned task at the time that the injury is caused.
XPN: However, it is not necessary that the task performed by the
employee is his regular job or that which was expressly given to
him by the employer. It is enough that the task is indispensable
to the business or beneficial to the employer (Filamer Christian
Institute v. IAC, G.R. No. 75112, August 7, 1992).
NOTE: It is not required that the employer is engaged in some
kind of industry or work (Castilex Industrial Corporation v.
Vasquez, G.R. No. 132266 December 21, 1999).
Q: Who is a special agent?
A: A special agent is one who receives a definite and fixed order
or commission, foreign to the exercise of the duties of his office.
An employee who on his own responsibility performs functions
inherent in his office and naturally pertaining thereto is not a
special agent (Meritt v. Government of the Philippine Islands, G.R.
60
No. 11154, March 21, 1916).
NOTE: Where the government commissions a private individual
for a special governmental task, it is acting through a special
agent within the meaning of the provision (Largo, 2007).
VICARIOUS LIABILITY: TEACHERS AND HEADS OF
ESTABLISHMENTS OF ARTS AND TRADES
Q: Is the application of vicarious liability under Art. 2180 of
the NCC limited to schools of arts and trade?
A: The application of Article 2180 of the New Civil Code is not
limited to schools of arts and trades. There is really no
substantial distinction between the academic and the
non-academic schools insofar as torts committed by their
students are concerned. The same vigilance is expected from the
teacher over the students under his control and supervision,
whatever the nature of the school where he is teaching. There is
no reason why different degrees of vigilance should be exercised
by the school authorities on the basis only of the nature of their
respective schools (Amadora v. CA, G.R. No. L-47745, April 15,
1988).
PROXIMATE CAUSE
It is that cause, which, in natural and continuous sequence,
unbroken by any efficient intervening cause, produces the
injury, and without which the result would not have occurred.
When the plaintiff's own negligence was the immediate and
proximate cause of his injury, he cannot recover damages. But if
his negligence was only contributory, the immediate and
proximate cause of the injury being the defendant's lack of due
care, the plaintiff may recover damages, but the courts shall
mitigate the damages to be awarded (NCC, Art. 2179).
TORT CONCEPTS AND DOCTRINES
RES IPSA LOQUITUR
Q: Gerald was born with an imperforate anus. Two days
after his birth, he underwent colostomy, a surgical
procedure to bring one end of the large intestine out
through the abdominal wall, enabling him to excrete
through a colostomy bag attached to the side of his body.
Three years later, Gerald was admitted at the Ospital ng
Maynila for a pull-through operation. During the operation,
Gerald experienced bradycardia, and went into a coma. His
coma lasted for two weeks, but he regained consciousness
only after a month. He could no longer see, hear or move.
Agitated by her son’s helpless and unexpected condition,
Luz lodged a complaint against the physician, Dr. Solidum,
for reckless imprudence resulting in serious physical
injuries with the City Prosecutor’s Office of Manila. She
contends that the Dr. Solidum was negligent, applying the
doctrine of res ipsa loquitur. Will the suit prosper?
A: NO. For Res Ipsa Loquitur to apply, the following essential
requisites must first be satisfied, to wit: (1) the accident was of
a kind that does not ordinarily occur unless someone is
negligent; (2) the instrumentality or agency that caused the
injury was under the exclusive control of the person
charged; and (3) the injury suffered must not have been due
to any voluntary action or contribution of the person
injured.
The doctrine is inapplicable in this case. Although it should be
conceded without difficulty that the second and third elements
were present, the first element was undeniably wanting. Luz
delivered Gerald to the care, custody and control of his
physicians for a pull-through operation. Except for the
imperforate anus, Gerald was then of sound body and mind at
the time of his submission to the physicians. Yet, he experienced
bradycardia during the operation, causing loss of his senses and
rendering him immobile. Insufficiency of oxygen supply to the
brain that caused the slowing of the heart rate, scientifically
 UST LAW PRE-WEEK NOTES 2017
termed as bradycardia, would not ordinarily occur in the process
of a pull-through operation, or during the administration of
anesthesia to the patient, but such fact alone did not prove that
the negligence of any of his attending physicians had caused the
injury. There was really no firm and competent showing how the
injury to Gerald had been caused. That meant that the manner of
administration of the anesthesia by Dr. Solidum was not
necessarily the cause of the hypoxia that caused the bradycardia
experienced by Gerard (Solidum v. People, G.R. No. 19212, March
10, 2014). (Bersamin, J)
MEDICAL NEGLIGENCE
Q: What are the elements of medical negligence?
A:
1. Duty
2. Breach of duty
3. Injury
4. Proximate Causation
Q: What is the doctrine of captain of the ship?
A: The surgeon is likened to a ship captain who must not only be
responsible for the safety of the crew but also of the passengers
of the vessel. The head surgeon is made responsible for
everything that goes wrong within the four corners of the
operating room. It enunciates the liability of the surgeon not only
for the wrongful acts of those who are under his physical control
but also those wherein he has extension of control (Ramos v. CA,
G.R. No. 124354, December 29, 1999).
Q: What is the doctrine of informed consent?
A: A physician has a duty to disclose what a reasonably prudent
physician in the medical community in the exercise of
reasonable care would disclose to his patient as to whatever
grave risks of injury might be incurred from a proposed course
of treatment, so that a patient, exercising ordinary care for his
own welfare, and faced with a choice of undergoing the proposed
treatment, or alternative treatment, or none at all, may
intelligently exercise his judgment by reasonably balancing the
probable risks against the probable benefits (Li v. Sps. Soliman,
G.R. No. 165279, June 7, 2011).
Q: What is the liability of a tortfeasor in case a fortuitous
event and negligence concurs?
A: When act of God combines with the negligence of man which
results in injury, the defendant is liable for injury (Ilocos Norte
Electric Co. v. CA, G.R. No. L-53401, November 6, 1989).
DAMNUM ABSQUE INJURIA
(DAMAGE WITHOUT PREJUDICE)
A person who only exercises his legal rights does no injury. If
damages result from such exercise of legal rights, the
consequences must be borne by the injured person alone. The
law affords no remedy for damages resulting from an act which
does not amount to a legal injury or wrong (Heirs of Purisima
Nala v. Cabansag, G.R. No. 161188, June 13, 2008).
CONTRIBUTORY NEGLIGENCE
Q: What is the extent of recovery of damages in case of
contributory negligence?
A:
1. Recovery completely barred - When the plaintiff’s own
negligence was the immediate and proximate cause of his
injury, he cannot recover damages (NCC, Art. 2179).
2. Mitigated damages – If the plaintiff’s negligence was only
contributory, the immediate and proximate cause of the
injury being the defendants lack of due care, he may recover
damages, but the courts shall mitigate the damages to be
awarded (Ibid.).
61
VOLENTI NON FIT INJURIA
“to which a person assents is not deemed in law as injury”
It refers to self-inflicted injury or to the consent to injury which
precludes the recovery of damages by one who has knowingly
and voluntarily exposed himself to danger, even if he is not
negligent in doing so (Nikko Hotel Manila Garden, et al. v. Reyes,
G.R. No. 154259, February 28, 2005).
DOCTRINE OF LAST CLEAR CHANCE
(DOCTRINE OF DISCOVERED PERIL or DOCTRINE OF
SUPERVENING NEGLIGENCE)
Q: What is the doctrine of last clear chance?
A: This is also called as the “Humanitarian Negligence Doctrine.”
Where both parties are negligent 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 the prior negligence of the
other party (Picart v. Smith, G.R. No. L-12219, March 15, 1918).
The doctrine of last clear chance is a theory adopted to mitigate
the harshness of the contributory negligence of the plaintiff
(Phoenix Construction Inc. v. IAC, G.R. No. L-65295, March 10,
1987).
Requisites:
1. Plaintiff is placed in danger by his own negligent acts and he
is unable to get out from such situation by any means;
2. Defendant knows that the plaintiff is in danger and knows
or should have known that the plaintiff was unable to
extricate himself therefrom; and
3. Defendant had the last clear chance or opportunity to avoid
the accident through the exercise of ordinary care but failed
to do so, and the accident occurred as a proximate result of
such failure (Pineda, 2009).
DOUBLE RECOVERY
Q: What is the prohibition against double recovery? (2003,
2006 BAR)
A: Responsibility for fault or negligence under quasi-delict is
entirely separate and distinct from the civil liability arising from
negligence under the Penal Code. But the plaintiff cannot recover
damages twice for the same act or omission of the defendant
(NCC, Art. 2177).
NOTE: What is barred by law is the double recovery of damages,
not the availment double remedies.
LEGAL INJURY
Q: Differentiate injury, damage and damages
A:
Injury The illegal invasion of a legal right.
The loss, hurt, or harm which results
Damage
from the injury.
The recompense or compensation
Damages
awarded for the damage suffered.
Q: Can tort arise from breach of contract?
A: YES. A quasi-delict can be the cause for breaching a contract
that might thereby permit the application of principles
applicable to tort even when there is a pre-existing contract
between the plaintiff and the defendant.
Where, without a pre-existing contract between two parties, an
act or omission can nonetheless amount to an actionable tort by
itself, the fact that the parties are contractually bound is no bar
 CIVIL LAW

to the application of quasi-delict provisions to the case.

This rule can govern only where the act or omission complained
of would constitute an actionable tort independently of the
contract (Far East Bank and Trust Company v. CA, G.R. No.
108164, February 23, 1995).

NOTE: The act that breaks the contract may be also a tort (Air
France v. Carrascoso, G.R. No. L-21438, September 28, 1966).

DAMAGES

Q: What are damages?

A: In legal contemplation, the term “damages” is the sum of

money which the law awards or imposes as a pecuniary
compensation, a recompense or satisfaction for an injury done
or wrong sustained as a consequence either of a breach of a
contractual obligation or a tortious act (MEA Builders, Inc. v. CA,
G.R. No. 121484, January 31, 2005).

NOTE: A complaint for damages is personal in nature (personal

action).

Q: Can damages be paid in kind?

A: NO. Damages can only be paid with money and not “palay”
because “palay” is not a legal tender currency in the Philippines
(Vda. Simeon Borlado v. CA, G.R. No. 114118, August 28, 2001).

NOTE: In actions for damages, the courts should award an

amount to the winning party and not its equivalent in property
(Ibid.).

Kinds of damages (MENTAL)

1. Moral
2. Exemplary or corrective
3. Nominal
4. Temperate or moderate
5. Actual or compensatory
6. Liquidated

62