PERSONS AND FAMILY RELATIONS

Juridical capacity

Kinds of persons
1. Natural – Human beings and have physical existence
2. Juridical – Artificial persons and product of legal fiction

Juridical capacity v. Capacity to act

BASIS
JURIDICAL
Juridical capacity Capacity to act
Fitness to be the subject of Power to do acts with legal
legal relations effect (Art. 37).
(Art. 37).
Definition

Acquisition Inherent (co-exists with the Through the fulfillment of

natural person). specific legal activities.

Loss Only through death. Through death and other

causes.

In relation to the other Can exist without capacity to Cannot exist w/o juridical
act. capacity.

None. Art. 38 (restriction)

Limitation Art. 39
(modification/
limitation),
among others.

CAPACITY
NOTE: A person is presumed to have capacity to act (Standard Oil Co. v. Arenas, et al., G.R.
No. L-5921, December 15, 1908).CA

Status
The status of a person is the legal condition or class to which one belongs in a society. (1
del Viso 32, 2 Sanchez Roman 110)

Civil personality It is merely the external manifestation of either juridical capacity or

capacity to act. Consequently, it may be defined as the aptitude of being the subject of
rights and obligations (2 Sanchez Roman 114-147).PACITY TO ACT
Why marriage is a special contract
A special contract of permanent union between a man and a woman entered into in
accordance with law for the establishment of conjugal and family life. It is the foundation of
the family and an inviolable social institution whose nature, consequences, and incidents
are governed by law and not subject to stipulation, except that marriage settlements may
fix the property relations during the marriage within the limits provided by the Family
Code (Family Code,
Art. 1).

NATURE OF MARRIAGE
Marriage as an inviolable social institution

Under the Constitution, “marriage, as an inviolable social institution, is the foundation of

the family and shall be protected by the State” (1987 Constitution, Art. XV, Sec.
2).Marriage is an institution in which the community is deeply interested. The State has
surrounded it with safeguards to maintain its purity, continuity and permanence. The
security and stability of the State are largely dependent on it. It is in the interest and duty of
each member of the community to prevent the bringing about of a condition that would
shake its foundation and lead to its destruction. The incidents of the status are governed by
law, not by will of the parties (Beso v. Daguman, A.M. No. MTJ-99-1211, January 28,
2000).

Marriage as a status
As a status, the principle in contracts that the parties may, by mutual agreement, put an end
to it, cannot certainly apply, for the consequences of the marriage as a rule are fixed by law
(Paras, 2016).
FORMAL REQUISITES OF A VALID MARRIAGE
Formal Requisites of a Valid Marriage, 2009 Bar)
1. Marriage Ceremony
2. Authority of the solemnizing officer
3. Valid marriage License, except in a marriage of exceptional character (FC, Art. 3).

Essential Requisites of a Valid Marriage, 2009 Bar)

1. Legal capacity of the contracting parties who must be a male and a female;
2. Consent freely given in the presence of the solemnizing officer (FC, Art. 2).

LEGAL SUPPORT

Requisites to be considered as beneficiary (FC, Art

156)
1. They must be among the relationships enumerated in Art. 154 of the Family Code;
2. They live in the FH; and
3. They are dependent for legal support upon the head of the family.
Q: On March 30, 2000, Mariano died intestate and was survived by his wife,
Leonora and children, Danilo and Carlito. One of the properties he left was a
piece of land in Alabang where he built his residential house. After his
burial, Leonora and Mariano’s children extra-judicially settled his estate.
Thereafter, Leonora and Danilo advised Carlito of their intention to
partition the property. Carlito opposed invoking Art. 159 of the Family Code.
Carlito alleged that since his minor child Lucasstill resides in the
premises, the family home continues until the minor beneficiary becomes of
age. Is the contention of Carlito tenable? (2014 Bar)

A: NO. To qualify as beneficiary of the FH the person mustbe among those mentioned
under Art. 154 of the Family Code, he/she must be actually living in the FH and must be
dependent for legal support upon the head of the family (Patricio v. Darion, G.R. No.
170829, November 20, 2006). While Lucas satisfies the first and second requisites, he
cannot, however, directly claim legal support from his grandmother, Leonora because the
person primarily obliged to give him support is his father

Carlito. Thus, the partition may be successfully claimed by Leonora and Danilo. Occupancy
of the FH either by the owner thereof or by “any of its beneficiaries” must be actual. That
which is “actual” is somethi ng real, or actually existing, as opposed to something merely
possible, or to something which is presumptive and constructive. Actual occupancy,
however, need not be by the owner of the house. Rather, the property may be occupied by
the “beneficiaries” enumerated by Art. 154 of the Family
Code (Manacop v. CA, G.R. No. 97898, August 11, 1997).
---
NOTE: This enumeration may include the in-laws where the FH is constituted jointly by the
husband and wife. But the law definitely excludes maids and
overseers.

FOR OTHER SUPPORT DISCUSSION CITE GOLDEN NOTES START AT PAGE 98 

Modes of extinguishment of an obligation

Principal modes(PaLoCo3N)
1. Payment or performance;
2. Loss of the thing due;
3. Condonation or remission of debt;
4. Confusion or merger;
5. Compensation;
6. Novation (NCC, Art. 1231).

7. Annulment;
8. Rescission;
9. Fulfillment of a resolutory condition;
10. Prescription (NCC, Art. 1231).

NOTE: The enumeration is not exclusive.

Other causes not expressly mentioned (Rabuya,

2017)
11. Death – in obligations which are of purely personal character;
12. Arrival of resolutory period;
13. Mutual dissent;
14. Change of civil status;
15. Happening of unforseen events.

Mutual desistance as another mode of extinguishing obligations

It is a concept derived from the principle that since mutual agreement can create a
contract, mutual disagreement by the parties can likewise cause its extinguishment (Saura
v. Development Bank of the Phils., G.R.No. 24968, April 27, 1972).

KINDS OF CONTRACT

According to perfection or formation:

1. Consensual contracts which are perfected by the mere meeting of the minds of the
parties (NCC, Art. 1305). (2005 Bar) e.g. Sale, lease.
2. Real contracts are those which require for their perfection both the consent of the
parties and the delivery of the object by one party to the other. e.g. Creation of real rights
over immovable property must be written, deposit and pledge.
3. Solemn contracts – Contracts which must appear in writing, such as:
a. Donations of real estate or of movables if the value exceeds P5,000;
b. Partnership to which immovables are contributed;
c. Contract of antichresis – requires the amount of principal and interest be specified;
d. Sale of piece of land or interest therein is through an agent;
e. Stipulation to charge interest;
f. Stipulation limiting common carrier's duty of extraordinary diligence to ordinary
diligence;
g. Chattel mortgage; or
h. Transfer of large cattle (Act No. 1147, Sec.
2; NCC, Art. 1581).

According to the degree of dependence:

1. Principal – That which can exist independently of ther contracts; e. g. Contract of loan.
2. Accessory – That which cannot exist without a valid principal contract; e. g. Guaranty,
surety, pledge, mortgage.
3. Preparatory – That which is not an end by itself but only a means for the execution of
another contract. e. g. Contract of agency as agency does not stop with the agency
because the purpose is to enter into other contracts (Rabuya, 2017).
According to their relation to other contracts:
1. Preparatory Contracts – Are those which have for their object the establishment of a
condition in law which is necessary as a preliminary step towards the celebration of
another subsequent contract. e.g. Partnership, agency.
2. Principal Contracts – Are those which can subsist independently from other contracts.
e.g. Sale, lease.
3. Accessory Contracts – those which can exist only as a consequence of, or in relation
with, another prior contract. e.g. Pledge, Mortgage.

According to their form:

1. Common or Informal Contracts – are those which require no particular form. e.g.
Loan.
2. Special or Formal Contracts – are those which require a particular form. e.g.
Donations, chattel mortgage.

According to their purpose:

1. Transfer of Ownership e.g. Sale.
2. Conveyance of Use e.g. Usufruct, commodatum.
3. Rendition of Services e.g. Agency.

According to the nature of the vinculum which they produce:

1. Unilateral Contracts – Are those which give rise to an obligation only to one of the
parties. e.g. Commodatum.
2. Bilateral Contracts –Are those which give rise to reciprocal obligations for both parties.
e.g. Sale.
According to their cause:
1. Onerous e. g. Sale.
2. Gratuitous e. g. Commodatum
3. Remuneratory

According to the risks involved:

1. Commutative Contracts – Are those where each of the parties acquire an equivalent of
his prestation and such equivalent is pecuniarily appreciable and already determined from
the moment of the perfection of the contract. e.g. Lease.
2. Aleatory Contracts – Are those which are dependent upon the happening of an uncertain
event, thus, charging the parties with the risk of loss or gain. e.g. Insurance.

According to their names or norms regulating them:

1. Nominate Contracts – Are those which have their own name and individuality, and are
regulated by provisions of law.
e.g. Sale (2003 Bar).
2. Innominate Contracts – Are those which lack name or individuality, and are not
regulated by special provisions of law.
CHARACTERISTICS OF A CONTRACT
The following are the characteristics of a contract
(AMOR):
1. Autonomy (NCC, Art. 1306);
2. Mutuality (NCC, Art. 1308);
3. Obligatoriness and consensuality (NCC, Art. 1315);and
4. Relativity (NCC, Art. 1311)

Principle of relativity or Principle of limited effectivity of contracts

(2011 Bar)

GR: Contracts take effect only between the parties or their assigns and heirs.

Res inter alios acta aliis neque nocet prodest (a thing done between others does not
harm or benefit others) – a contract can only obligate the parties who entered into it, or
their successors who assumed their personalities, and that, concomitantly, a contract can
neither favor nor prejudice third persons (Vitug, 2006).

NOTE: With respect to the heir, he shall not be liable beyond the value of the property he
received from the decedent (NCC, Art. 1311).

XPNs:
1. Rights and obligations that are not transmissible by their nature, or by the stipulation or
by provisions of law (NCC,
Art. 1311);
2. Stipulation pour autrui (stipulation in favor of a third person) – Benefits clearly and
deliberately conferred by parties to a contract upon third persons (NCC, Art. 1311) and
which stipulation is merely part of a contract entered into by the parties, neither of whom
acted as agents of the third person and which favor can be demanded by the third person if
duly accepted by him before it could be revoked;

Requisites of stipulation pour atrui:

a. Stipulation in favor of a third person;
b. Stipulation is just part and not the whole obligations of the contract;
c. Contracting parties must have clearly and deliberately conferred a favor upon third
person;
d. Third person must have communicated his acceptance; and
e. Neither of the contracting parties bears the legal representation of the third person
(Young v. Court of Appeals, G.R. No. 79518, January 13, 1989).

NOTE: The fairest test to determine whether the interest of third person in a contract is a
stipulation pour autrui or merely an incidental interest, is to rely upon th intention of the
parties as disclosed by their contract. In applying this test, it matters not whether the
stipulation is in the nature of a gift or whether there is an obligation owing from the
promise to the third person (Rabuya, 2017).

3. Third persons coming into possession of the object of the contract creating real rights
subject to the provisions of Mortgage Law and the Land Registration Law (NCC, Art.
1312);
4. Contracts entered into in fraud of creditors; (NCC, Art. 1313);and
5. When a third person induces a party to violate the contract (NCC, Art. 1314). (1991,
1998 Bar)

NOTE: This tort or wrongful conduct is known as “interference with contractual relations.”

Requisites:
a. Existence of a valid contract;
b. Third person has knowledge of such contract;
c. Third person interferes withoutjustification (De Leon, 2010). Thus, third person is liable
for damages. The basis of his liability is Quasi-delict.

NOTE: A third person can be held liable for tort intereference even if he does not know the
identity of one of the contracting parties. The interference with lawful contracts by
strangers thereto gives rise to an action for damage in favor of the injured person. The law
does not require that the responsible person shall have known the identity of the injured
person (Rabuya, 2017).

Q: Following the principle of autonomy of contracts, may the parties to a

contract of commodatum validly stipulate that the liability of the bailees
shall be joint?
A: NO. Article 1245 of the New Civil Code expressly provides that in a contract of
commodatum, when there are two or more bailees to whom a thing is loaned in the same
contract, they are liable solidarily. It constitutes as an exception to the general rule of “joint
obligations” where there are two or more debtors, who concur in one and same obligation
under Articles 1207 and 1208. Solidarity is provided to safeguard effectively the rights of
the bailor over the thing loaned.

AUTONOMY OF CONTRACTS / LIBERTY OF CONTRACTS

It is the freedom of the parties to contract and to stipulate provided the stipulations are not
contrary to law, morals, good customs, public order or public policy (NCC, Art. 1306).

NOTE: Courts cannot make for the parties better or more equitable agreements than they
themselves have been satisfied to make, or rewrite contracts because they operate harshly
or inequitably as to one of the parties, or alter them for the benefit of one party and to the
detriment of the other, or by construction, relieve one of the parties from terms
which he voluntarily consented to, or impose on him those which he did not (Angel
Bautista v. Court of Appeals, G.R. No. 123655, January 19, 2000).TONOMY O

Q. PCGG filed a complaint for reconveyance, reversion, accounting,

restitution and damages before the SandiganBayan against Benedicto and
Africa, both of whom are cronies of Ferdinand Marcos. Consequently, Benedicto
entered into a Compromise Agreement with the government that the former will
cede the properties involved in the action. Will the Compromise Agreement
between the PCGG and Benedicto extinguish the liability of Africa considering
that the accused are both solidarily liable against the government?

A: NO. A stipulation pour autrui to be appreciated, it is indispensable that there be a

stipulation deliberately conferring a benefit or favor to a third person.The requisites of a
stipulation pour autrui are the following:
1. There is a stipulation in favor of a third person;
2. The stipulation is a part, not the whole, of thecontract;
3. The contracting parties clearly and deliberatelyconferred a favor to the third person —
the favor is not an incidental benefit;
4. The favor is unconditional and uncompensated;
5. The third person communicated his or her acceptance of the favor before its revocation;
and
6. The contracting parties do not represent, or are not authorized by, the third party.

The Compromise Agreement executed between Benedicto and PCGG do not contain any
express stipulation that confers the benefit of absolute immunity to Africa. Absent any
express stipulation in favor of a third person, the rule on relativity of contract must be
applied i.e., that the contract only takes effect between the parties, their assigns or heirs
(Republic of the Philippines v. Legal Heirs of Jose. Africa, G.R. No. 205722, August 19,
2015).F CON

CLASSIFICATION OF PARTNERSHIP

1. Object

a. Universal partnership
i. Of all present property (NCC, Art. 1778) – The partners contribute all the
property which actually belongs to them to a common fund, with the intention of dividing
the same among themselves, as well as all profits they may acquire therewith. The
following become the common fund of all the partners:
Property which belonged to each of the partners at the time of the
constitution of the partnership
Profits which they may acquire from all property contributed
 ii. Of all profits (NCC, Art. 1780) – Comprises all that the partners may acquire by
their industry or work during the existence of the partnership

b. Particular partnership – It is one which has for its object, determinate things, their use
and fruits, or a specific undertaking or the exercise of a profession or a vocation (NCC, Art.
1783).

2. Liability of partners
a. General partnership – One where all partners are general partners who are liable even
with respect to their individual properties, after the assets of the partnership have been
exhausted (Paras, 1969).
b. Limited partnership – One formed by two or more persons having as members one or
more general partners and one or more limited partners, the latter not being personally
liable for the obligations
of the partnership (NCC, Art. 1843).

3. Duration
a. Partnership at will – Partnership for a particular undertaking or venture which may be
terminated anytime by mutual agreement; one for a fixed term or particular undertaking
which is continued by the partners after the termination of such term or particular
undertaking without express agreement.
b. Partnership with a fixed period – The term for which the partnership is to exist is fixed
or agreed upon or one formed for a particular undertaking.

NOTE: The presence of a period, duration or statement of a particular purpose for its
creation may not prevent the dissolution of any partnership by an act or will of a partner.
The “mutual agency” and the “doctrine of delectus personae” allows them to dissolve the
partnership. However, an unjustified dissolution by a partner can subject him to a possible
action for damages.

4. Legality of existence
a. De jure partnership – One which has complied with all the requirements for its
establishment.
b. De facto partnership – One which has failed to comply with all the legal requirements
for its establishment.

5. Representation to others
a. Ordinary or real partnership – One which actually exists among the partners and also as
to third person.
b. Ostensible or partnership by estoppel – When two or more persons attempt to create a
partnership but fail to comply with the legal personalities essential for juridical personality,
the law considers them as partners, and the association is a partnership insofar as it is
favorable to third persons, by reason of the equitable principle of estoppel (MacDonald et.
al.v. Nat’l. City Bank of New York, G.R. No. L- 7991, May 21, 1956)./ LIBERTY OF
6. Publicity
a. Secret partnership – Partnership that is not known to many but only as to its partners.
b. Notorious or open partnership – It is known not only to the partners, but to the public as
well.
7. Purpose
a. Commercial or trading – One formed for the transaction of business.
b. Professional or non-trading – One formed for the exercise of a profession (De Leon,
2014).

UNIVERSAL VS PARTICULAR

Presumption of universal partnership of profits

When the Articles of Universal Partnership fail to specify whether it is one of all present
property or of profits, it only constitutes a universal partnership of profits (NCC, Art.
1781), because it imposes lesser obligations on the partners since they preserve the
ownership of their separate property.

Persons disqualified from entering into universal partnership

a. Legally married spouses (Family Code, Art. 87). However they can enter into particular
partnership. (Commissioner of Internal Revenue vs. Suter, 27 SCRA 152)
b. Common law spouses.
c. Parties guilty of adultery or concubinage.
d. Criminals convicted for the same offense in consideration of the same [NCC, Art. 739 (2)].
e. A person and a public officer (or his wife, ascendant or descendants) by reason of his
office
[NCC, Art. 739 (3)].

Contribution of future properties

As a general rule, future properties cannot be contributed. The very essence of the contract
of partnership that the properties contributed be included in the partnership requires the
contribution of things determinate (De Leon, 2010).

Particular partnership
It is one which has for its object determinate things, their use or fruits, or a specific
undertaking, or the exercise of a profession or vocation (NCC, Art.
1783).

The fundamental difference between a universal partnership and a particular partnership

lies in the scope of their subject matter or object. In the former, the object is vague and
indefinite, contemplating a general business with some degree of continuity, while in the
latter, it is limited and well-defined, being confined to an undertaking of a single,
temporary, or ad hoc nature (De Leon, 2010).

Q: J, P and B formed a limited partnership called Suter Co., with P as the

general partner and J and B as limited partners. J and B contributed Php
18,000 and Php 20,000 respectively. Later, J and B got married and P sold his
share of the partnership to the spouses which was recorded in the SEC. Has
the limited
partnership been dissolved by reason of the marriage between the limited
partners?

A: NO. The partnership is not a universal but a particular one. A universal partnership
requires either that the object of the association must be all present property of the
partners as contributed by them to a common fund, or all else that the partners may
acquire by their industry or work. Here, the contributions were fixed sums of money
and neither one of them were industrial partners. Thus, the firm is not a partnership which
the spouses are forbidden to enter into. The subsequent marriage cannot operate to
dissolve it because it is not one of the causes provided by law. The capital contributions
were owned separately by them before their marriage and shall remain to be separate
under the Spanish Civil Code. Their individual interest did not become common property
after their marriage (Commissioner of Internal Revenue v. Suter, G.R. No. L-25532,
February 28, 1969).

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).

KINDS OF LOAN

1. Commodatum – where the bailor (lender) delivers to the bailee (borrower) a

nonconsumable thing so that the latter may use it for a given time and return the same
thing (i.e. identical thing); and

2. Mutuum or Simple Loan – where the lender delivers to the borrower money or other
consumable thing upon the condition that the latter shall pay same amount of the same
kind and quality.

Commodatum is a loan of use (because there is atransfer of the use of the thing borrowed)
while mutuum is a loan of consumption (because there is a transfer of the ownership of the
thing, which is generaly received for consumption).

Commodatum

It is a contract where one of the parties (bailor) delivers to another (bailee) something not
consumable so that the latter may use the same for a certain time and thereafter returns
the identical thing.

Kinds of commodatum
1. Ordinary commodatum – The bailor cannot just demand the return of the thing at will,
because there is a period agreed upon by the parties.
2. Precarium – One whereby the bailor may demand the thing loaned at will in the
following cases:
a. If the duration of the contract had not been stipulated;
b. If the use to which the thing loaned should be devoted had not been stipulated; or
c. If the use of the thing is merely by tolerance of the owner (NCC, Art. 1947).

NOTE: The word “owner” in Art. 1947(2) is not proper because the bailor need not be
the owner of the thing (Pineda, 2006; NCC, Art. 1938).

Reason of the law: The contract of commodatumdoes not transfer ownership.

Characteristics of a contract of commodatum

1. Real contract – The delivery of the thing loaned is necessary for the perfection of the
contract;
2. Unilateral contract – once subject matter is delivered, it creates obligations on the part of
only one of the parties (the borrower);
3. Essentially gratuitous; otherwise, contract of lease;
4. Purpose is to transfer the temporary use of the thing loaned;
5. Principal contract;
6. Purely personal contract (because of the trust) (NCC, Art. 1939)(2006, 2007 Bar);
and
7. It contemplates use by the borrower of the subject matter and its return in specie
(Rabuya, 2017).

Consequence of purely personal character of commodatum

1. As to death of a party
GR: Commodatum is purely personal in character hence death of either bailor or bailee
extinguishes the contract (NCC, Art. 1939) (Bar).
XPN: By stipulation, the commodatum is transmitted to the heirs of either or both party.

2. As to Lease of the thing subject of commodatum

GR: The bailee can neither lend nor lease the object of the contract to a third person.
XPN: Members of the bailee’s household may make use of the thing loaned because
members of the bailee’s household are not considered as third persons.

NOTE: Household members are those permanently living or residing within the same
residence including the household helpers.
XPN to the XPN: Contrary stipulation; or when the
nature of the thing forbids such use.

3. As to right of retention
GR: The bailee cannot exercise the right of retention against the bailor.
XPN: However, he can exercise the right of retention on the account of damages suffered
bythe bailee because of flaws that the bailor knew of but did not disclose to the bailee.

Use of fruits of the property by the bailee

The bailee in commodatumacquires only the use of the thing loaned but not its fruits
(NCC, Art. 1935) (Bar).

A stipulation that the bailee may make use of the fruits of the thing loaned is valid. It is
understood that the enjoyment of the fruits must only be incidental to the use of the thing.
It should not be the main cause; otherwise, the contract is not a commodatum but a
usufruct (NCC, Art. 1940) (Bar).

The stipulation that the bailee may make use of the fruits of the thing loaned will not impair
the essence of commodatum because the actual cause or consideration therefore is still the
liberality of the bailor or lender.

Elements of commodatum
1. There must be a bailor and bailee;
2. The bailee acquires the use of the thing; and
3. It must be gratuitous.

CONTRACT TO SELL
A bilateral contract whereby the prospective seller, while expressly reserving the
ownership of the subject property despite delivery thereof to the prospective buyer, binds
himself to sell the said property exclusively to the prospective buyer upon fulfillment of the
condition agreed upon, that is, full payment of the purchase price (Coronel v. CA, G.R. No.
103577, October 7,1996).

NOTE: Here, payment of the price is a positive suspensive condition. Failure of which is not
a breach but an event that prevents the obligation of the vendor to convey title from
becoming effective (Rabuya,2017).

BASIS CONTRACT OF SALE CONTRACT TO SELL

As regards Ownership is transferre to
transfer of the buyer upon delivery of
ownership the object to him.
NOTE: Vendor has lost and
cannot recover ownership
until and unless the contract
is resolved or rescinded.
As to There is only one contract
numbers of executed
Ownership is transferred
upon full
payment of the purchase
price.
NOTE: Prior to full payment,
ownership is retained by the
seller.
There are two contracts:
1. The contract to sell; and
contracts between the seller and the
involved buyer. NOTE:
Preparatory sale

2. The deed of Absolute sale.

NOTE: The principal

Payment as Non-payment of the price is
to condition a resolutory condition.
Vendor loses ownership
over the property and
cannot recover it until and
unless the contract is
resolved or rescinded.
contract is executed after full
payment
of the purchase price.
Full payment of the price is a
positive
Suspensive condition.
NOTE: Failure to fully pay
the price is not a breach but
an event that prevents the
obligation of the vendor to
convey title from becoming
effective.

Remedies available Specific Performance; Rescission; or Damages

Rescission; or
Damages

Property
It refers to 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.

Modes of acquiring ownership (OLD TIPS) (2007

Bar)
1. Occupation;
2. Law;
3. Donation;
4. Tradition;
5. Intellectual creation;
6. Prescription;or
7. Succession;
Classification of modes of acquiring ownership
1. Original – Those which do not arise or depend upon any pre-existing right or title of
another person:
a. Occupation (NCC, Art. 713);
b. Intellectual Creation (NCC, Art. 721); and
c. Acquisitive Prescription (NCC, Art. 1106).

2. Derivative – Are those which arise or depend upon a pre-existing or preceding right or
title of another person:
a. Law; e.g. hidden treasure (NCC, Art. 438), improvements on the land of another (NCC,
Art. 445), alluvium (NCC, Art. 447), abandoned river beds (NCC, Art. 461), falling fruits
into the tenement of another (NCC, Art. 681)
b. Donation (Art. 725)
c. Succession mortis causa (NCC, Art. 774); and
d. “Tradition (delivery) as a consequence of certain contracts” like sale, agency,
partnership, mutuum, assignment barter. Pure tradition does not transfer ownership
such as in deposit or commodatum (Pineda, 2009).

CLASSES OF POSSESSION

1. According to the name used as to its existence

a. In one’s own name – possessor claims the thing for himself (NCC, Art. 524).
b. In the name of another – held by the possessor for another; agent, subject to authority
and ratification; if not authorized,
negotiorum gestio (NCC, Art. 524).
i. Voluntary – by virtue of an agreement; e.g.possession of an agent.
ii. Legal – by virtue of law; e.g. possession in behalf of incapacitated.

2. According to the concept of possession

a. In the concept of an owner (en concepto de dueno) – possessor, by his actions, is
believed by others as the owner, whether he is in good or bad faith. (NCC, Art. 525). Such
possessor is presumed to possess just title (NCC, Art. 540);
b. In the concept of a holder – possessor holds it merely to keep or enjoy it, the ownership
pertaining to another; e.g. usufructuary with respect to the thing itself (NCC, Art.525

NOTE: None of these holders may assert a claim of ownership for himself over the thing but
they may be considered as possessors in the concept of an owner, or under a claim of
ownership, with respect to the right they respectively exercise over the thing. There can be
possession in concept of both owner and holder or in either.

3. According to the condition of the mind(2008 Bar)

a. Possession in good faith – possessor is not aware that there is in his title or mode of
acquisition a defect that invalidates it (NCC, Art. 526); and
b. Possession In bad faith – possessor is aware of the invalidating defect in his own
title(NCC, Art. 526).

NOTE: Only personal knowledge of the flaw in one’s title or mode of acquisition can make
him possessor in bad faith. It is not transmissible even to an heir. Possession in good faith
ceases from the moment defects in his title are made known to the possessor.

4. According to extent of possession

a. Actual possession – occupancy in fact of the whole or at least substantially the whole
property; and
b. Constructive possession – occupancy of part, in the name of the whole, under such
circumstances that the law extends the occupancy to the possession of the whole.

Modes of acquiring possession

1. By Material occupation (detention) of a thing or the exercise of a right (quasi possession);
This includes:
a. Constitutum possessorium – when the possessor who is the owner of the property
continues his possession no longer under a title of ownership but under a title less than
ownership, i.e. lessee, depositary, etc.
b. Traditio brevi manu – when the possessor who is possessing the thing by a title other
than ownership, continues to possess it under a new title, now of ownership.

2. By Subjection of the thing/right to our will which does not require actual physical
detention or seizure; and
This includes:
a. Traditio longa manu – delivery by consent or mere pointing.
b. Traditio simbolica – delivery of a mere symbol (e.g.key) placing the thing under the
control of the transferee.
3. By constructive possession or proper Acts and legal Formalities established by law such
as succession, donation, execution of public instruments (NCC, Art. 531).

ACCESSION
The right pertaining to the owner of a thing over everything which is produced thereby, or
which is incorporated or attached thereto, either naturally or artificially (NCC, Art. 440).

Right of accession
It is that right of ownership of which an owner of a thing has over the products of said thing
(accession discreta), as well as to all things inseparably attached or incorporated thereto
whether naturally or artificially (accession continua) (Pineda, 2009).

AVULSION
It is the deposit of known (identifiable) portion of land detached from the property of
another which is attached to the property of another as a result of the effect of the current
of a river, creek or torrent (2001 Bar).
Whenever the current of a river, creek, or torrent segregates from an estate on its banks a
known portion of land and transfers it to another estate, the owner of the land to which the
segregated portion belonged retains the ownership of it, provided that he removes the
same within 2 years (NCC, Art. 459)(2001 Bar).

Alluvium v. Avulsion (2001 Bar)

Alluvium Avulsion
Gradual and imperceptible. Sudden or abrupt process.
Soil cannot be identified Identifiable and verifiable.
Belongs to the owner of the property to Belongs to the owner from whose property
which it is attached. it was detached.
Merely an attachment. Detachment followed by attachment.

Requisites of avulsion (CAI)

1. Transfer is caused by the Current of a river, creek, or torrent;
2. Transfer is sudden or Abrupt; and
3. The portion of the land transported is known or Identifiable.

NOTE: By analogy, land transferred from one tenement to another by forces of nature other
than the river current can still be considered as an avulsion.

Rule on acquisition of titles over an avulsion

GR: Original owner retains title.

XPNs: The owner must remove (not merely claim) the transported portion within two
years to retain ownership, otherwise, the land not removed shall belong to the owner of
the land to which it has been adjudicated in case of:
1. Abandonment; or
2. Expiration of two years, whether the failure to remove be voluntary or involuntary, and
irrespective of the area of the portion known to have been transferred.

Rule on avulsion of uprooted trees

GR: The owner of the tree retains ownership.
XPN:
1. The owner must claim them within a period of six months; and

NOTE: The claim does not require actualrecovery. It can be recovered on the basis of
prescriptive period for acquiring movables which is four years.
2. If uprooted trees have been transplanted by the owner of the land which the trees may
have been cast and said trees have taken root in said land, the owner of the trees, upon
making the claim, is required to refund the expenses incurred in gathering them or in
putting them in safe place, including the expenses incurred by the owner of the land for the
preservation of the trees (Rabuya, 2008).

Alluvium or alluvion (2001, 2003, 2008, 2009

BAR)
It is the gradual deposit of sediment by natural action of a current of fresh water (not sea
water), the original identity of the deposit being lost. Where it is by sea water, it belongs to
the State (Government of Philippine Islands v. Cabangis, G.R. No. L-28379, March 27,
1929).

NOTE: Art. 457 of NCC states “To the owners of the lands adjoining the banks of the rivers
belongs the accretion which they gradually receive from the effects of the current of the
waters.

Riparian owner
He is the owner of the land adjoining rivers.

Accretion v. Alluvium
Accretion is the process whereby the soil is deposited while alluvium is the soil deposited.
Requisites of accretion
1. Deposit be gradual and imperceptible;
2. Resulted from the effects of the current of
the water; and
3. The land where the accretion takes place is adjacent to the banks of a river

If all the requisites are present, the riparian owner is automatically entitled to the
accretion.

NOTE: The alluvion starts to become the property of the riparian owner from the time that
the deposit created by the current of water becomes manifest
(Heirs of Navarro v. IAC, G.R. No. 68166, February 12,
1997).

Man-made or artificial accretions to lands NOT included

The rule on alluvion does not apply to man-made or artificial accretions to lands that adjoin
canals or esteros or artificial drainage system (Ronquillo v. CA, G.R. No 43346, March 20,
1991).

NOTE: If the deposits accumulate, not through the effects of the current of the water, but
because of the constructions made by the owner purely for defensive purposes against the
damaging action of the water, the deposits are still deemed to be alluvion and will belong to
the riparian owner.

If the deposit is brought about by sea water

When the sea moves towards the estate and the tide invades it, the same becomes a
foreshore land which consequently becomes part of the public domain. Thus, it belongs to
the state.

Registration
Alluvial deposits must be registered. Though, automatically it is owned by the riparian
owner (Heirs of Navarro v. IAC, G.R. No. 68166, February 12,
1997), it is still subject to acquisitive prescription which may divest the riparian owner the
ownership over the accretion.

Failure to register
If the riparian owner fails to register the deposits within the prescriptive period of
acquiring real property (10 years if ordinary prescription or 30 years if extraordinary
prescription), it subjects said accretion to acquisition thru prescription by third
persons (Reynante v. CA, G.R. No. 95907, April 8,1992).

However, registration under the Torrens System does not protect the riparian owner
against the diminution of the area of his registered land through gradual changes in the
course of an adjoining stream.

Reasons for granting a riparian owner the right to alluvion deposited by a

river
1. To compensate him for:
a. Danger of loss that he suffers due to the location of his land; and
b. The encumbrances and other easements on his land

2.To promote the interests of agriculture as he is in the best position to utilize the
accretion.

The owners of estates adjoining ponds or lagoons do not acquire the land left dry by the
natural decrease of the waters, or lose that inundated by them in extraordinary floods
(NCC, Art. 458).

NOTE: This rule does not apply to lakes.

CHANGE IN THE COURSE OF THE RIVER

Whenever a river, changing its course by natural causes, opens a new bed through a private
estate, this bed shall become of public dominion (NCC, Art. 462).
Requisites (NAPA)
1. There must be a Natural change in the course of the waters of the river; otherwise, the
bed may be the subject of a State grant;
2. The change must be Abrupt or sudden;
3. The change must be Permanent; and

NOTE: The rule does not apply to temporary overflowing of the river.

4. There must be Abandonment by the owner of the bed.

NOTE: Abandonment pertains to the decision not to bring back the river to the old bed.

Effect when the river bed is abandoned

River beds which are abandoned through the natural change in the course of the waters
ipso facto belong to the owners whose lands are occupied by the new course in proportion
to the area lost. However, the owners of the lands adjoining the old bed shall have the right
to acquire the same by paying the value thereof, which value shall not exceed the value of
the area occupied by the new bed (NCC, Art. 461).

NOTE: The rule on abandoned river bed does not apply to cases where the river simply
dries up because there are no persons whose lands are occupied by the waters of the river.
Under the Water Code, the government or the riparian owner may return the river back to
the original bed (P.D. 1067, Art. 58).

RIGHT OF ACCRETION
Accretion is a right by virtue of which, when two or more persons are called to the same
inheritance, devise or legacy, the part assigned to the one who renounces or cannot receive
his share, or who died before the testator, is added or incorporated to that of his co-heir,
co- devisees, or co-legatees (NCC, Art. 1015).

Basis: Accretion is a right based on the presumed will of the deceased that he prefers to
give certain properties to certain individuals rather than to his legal heirs. Accretion is
preferred over intestacy.

Requisites of accretion

In order that the right of accretion may take place in a testamentary succession, it shall be
necessary:
1. That two or more persons be called to the same inheritance, or to the same portion
thereof, pro indiviso; and
2. That one of the persons thus called die before the testator, or renounce the inheritance,
or be incapacitated to receive it (NCC, Art. 1016).

In testamentary succession, accretion takes place

in case of:
1. Predecease;
2. Incapacity;
3. Renunciation;
4. Non-fulfillment of the suspensive condition imposed upon instituted heir; and
5. Ineffective testamentary disposition

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.
NOTE: Accretion takes place only if there is no representation. In renunciation, there is
always accretion.
Reason: No representation in renunciation