TABLE OF CONTENTS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
affected
Read Tanada v. Tuvera.
o It is not whether you read the publication or not. It not whether
you understand the law or not. As long as there is opportunity
PRELIMINARY TITLE
Publication
PRELIMINARY TITLE
PERSONS AND FAMILY RELATIONS
PROPERTY
SUCCESSION
OBLIGATIONS AND CONTRACTS
LAND TITLES
PRESCRIPTION
CREDIT TRANSACTIONS
SALES
PARTNERSHIP
AGENCY
COMPROMISE
LEASE
TORTS AND DAMAGES
the law is repealed, or a new law that is irreconcilable with the old law.
Prospectivity of laws
clause. (IMPT)
1. Procedural laws
2. Curative laws
3. Tax laws
4. Penal laws which benefit the accused (who is not a habitual
offender)
o 5. Substantive laws that do not impair vested rights
o 6. Interpretative laws
Liam Law v. Olympic Sawmill:
o Ineffectivity of usury law should retroact as to change the Rules
Judicial decisions
Considered as part of the law of the land. Stare decisis, however, only
applies to SC decisions.
It does not, however, become a law per se no need to publish.
De Roy v. CA:
o Judicial decisions need not be published first in the OG before
becoming effective and binding jurisprudence. A lawyer must
Waiver of rights
morals, or law
2. Prejudicial to third persons with right recognized by law
Ordinary contracts: you can define your terms any way you want
(example, a year can be 300 days) For laws, however, a year is 365
days.
o UNLESS, one specifically names the year
First day excluded, last day included.
For contracts, it does not matter if the last day falls on a weekend.
Contrast with Rules of Court, where it adjusts to the next business day.
o
o
WILLS
o
o
Principle of nationality
above.
When there is an alien within our country, we still apply their national
laws as regards family rights and duties, status and condition, and legal
capacity.
Nationality also governs successional rights of the decedent
laws which have for their object public order, public policy, or
good customs are not rendered ineffective by laws, judgments,
o
or conventions abroad.
EXCEPTION?
damages, in general.
4.
(Baksh case)
There was breach of promise to marry. The teacher became
Public officers
pregnant, and was dismissed from her job because she got
pregnant without a husband. Can she recover from the man loss
of income?
o Yes (old case).
o But now, you cannot be dismissed for this anymore, so its
moot.
Who is liable for hospital expenses?
o Shared expenses, since it takes two to get pregnant.
When are moral damages allowed?
o Criminal or moral seduction.
c.
ground
4. Plaintiff has no other action based on K, quasi-K,
crime, or quasi-delict
What is the difference between Art. 22 and solutio
indebiti?
i. In solution, mistake is an essential element. In accion
2.
3.
iv.
specific provisions.
Can a public officer invoke acting in public capacity as a defense?
o Aberca v. Ver
o No. Your official function does not include acting with injustice
o
o
Unjust enrichment
a. Garcia v. PAL: If a dismissed employee is reinstated, and then
b.
Articles 19-21 bind even public officers. Take note. Though there are
Violation of privacy
other, as to who died first, whoever alleges the death must prove it
o PRESUMPTION: died at the same time, so no transmission of
Juridical persons
Persons
Natural persons
Juridical
o
o
o
capacity
Passive subject the ability to be the subject of legal relations
UPON BIRTH
Exceptions: unborn fetus
(A) Beneficial
Ex. donation
obligations:
o Minority,
o insanity and imbecility,
o deaf-mutism,
o prodigality,
o civil interdiction
o [For juridical persons this is the issue of ultra vires acts]
Modifications, which affect a person depending on the type of
Birth
Birth and death: from when created by law or for ordinary corporations,
upon registration/dissolution
rights
CONTRA rule in Remedial Law/Evidence: Survivorship for those
who died due to calamity, wreck, battle, or conflagration
o Follow what rule?
Insurance
o Survivorship agreements
* Very little relevance in civil law now, but usually just for elections, etc.
Domicile place of habitual residence; based on intention and actual
connection
Residency based on actual facts
Domicile is acquired from moment of birth
o Legitimate child domicile of parents (correct the reviewer)
o Illegitimate of mother
o Legitimated of parents
o Foundling wherever found
One never loses a domicile under a new one is acquired.
It is possible to be without residence, but one always has a domicile
Domicile of juridical person
o Provided in charter
o If none, place of business or place of legal representation
o
o
MARRIAGE
Lack/absence void
Defect voidable
o Formal:
Lack/absence void
2. Permanent union
contracts?
As a general rule, ordinary contracts are subject to
Essential requirements:
o 1. Legal capacity
A) Age
B) Sex
C) Absence of legal impediments: (see full discussion
below)
celebration of marriage
Do you have to speak out your consent? No need
void.
Examples of defects in marriage license:
consent.
Formal requirements:
o 1. Authority of solemnizing officer
except for:
1. Both must personally appear before the
solemnizing officer
Other requirements:
o 1. Marriage certificate
Unlimited.
By blood:
by half-blood
Created by marriage:
2. Between step-parents and step-children
step-sister
3. Between parent-in-law and children-in-law
v. Domagtoy)
Can this decision apply to mayors? For instance,
the mayor of Makati solemnized a marriage in QC.
operations.
What about members of the judiciary? Within their
nationwide.
asked.
Hence the illegitimate children and adopted
Incumbent
No need to be convicted
Who can marry each other?
same person
5. Parties convicted of adultery or
concubinage
6. Adopted child of husband, adopted child of
for this.
Wiegel v. Sempio-Diy: Need to have prior judicial
office.
Within territorial jurisdiction
Who in particular? RTC, MTC, CA, CTA, SC,
Sandiganbayan, etc. Even if their jurisdiction is
limited, like the CTA. Contrast this to executive
wife
C) Prior existing marriage
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religion or church.
What if both are not members of that religion?
uncertain.
Who can they solemnize?
Who?
No need to be dying
Marriage license
vessel.
When and where can they solemnize?
has to be absent.
If he is present, then the chaplain must be
transportation laws?
No decision yet.
4) Military commander
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validity
If you lie about your age, and you are not yet 18?
If none, either:
Residence certificate
Death certificate
parents.
3. What about alien applicants?
o The diplomatic or consular officials will issue a certificate of
Father
Mother
Surviving parent
by face value.
What is the nature of a marriage license?
o It is a license to marry a specific person. You cannot use it to
marry another person. The impediments and capacities of
people are different.
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license is no good.
What is the validity of the ML?
o For 120 days, then automatically cancelled after
o In any part of the Philippines
o An expired license is NOT a mere irregularity but an absence of
lack of ML? The court held that the children have standing.
BUT this has been changed when the administrative rules
o
a requirement.
Marriages exempt from requirement of ML
place, the law requires that the solemnizing officer state the
marry.
Are marriages in articulo mortis exempt from requirement
came out. Ninal was decided before these rules came out.
What are the requisites:
the ML requirement.
still waived.
If the person miraculously survives, is the marriage valid?
Yes.
2. People who have been living together as husband and wife for at
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No. It doesnt matter, our law doesnt care. Their own national
both?
Filipino.
What are the exceptions to this rule?
o Art 35 (1, 4, 5, 6), Art 36, Art 37, Art 38
(1) under 18
(4) bigamous
celebrated.
What if two male people get married abroad?
o No settled rule yet.
What is the rule on divorces obtained abroad?
o If the alien obtained a divorce decree abroad allowing him to
o
to her
NOTE: both cases were decided before the Family
Time of marriage
Time of divorce
Effect
2 Fil
2 Fil
2 Fil
1 Alien, 1 Fil
2 Fil
2 Aliens
1 Alien 1 Fil
1 Alien 1 Fil
1 Alien 1 Fil
2 Aliens
X
Old view: not allowed to
circumvent the law through this
NOW: the Alien is not anymore
under our jurisdiction, so he can
obtain divorce. Then Art. 26
applies.
Amor-Catalan case: recognize as
being a divorce entered into by 2
aliens. Art. 26 does not apply
because there is no Filipino to
equalize.
Art. 26
Valid as well
Not allowed. The article only applies if the alien was the one
Code
Requisites?
o 1. Marriage between Alien and Filipino
o 2. Alien files for divorce
o 3. Divorce decree capacitated the alien to remarry
What if the Filipino obtains the divorce?
VOID
VOIDABLE
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collateral attack.
RULES ON STANDING re: nullity
o SC 02-11-10 only husband and wife have standing in a
direct action
collateral attack
(as in an heir)
In Carlos v. Sandoval, since the one questioning was the
A. by blood
B. by adoptive relationship
C. by marriage
D. by criminal intent
When is a marriage entered into without termination of a previous
marriage valid?
o When there is a declaration of presumptive death. Article 41 is
the only article which provides for a situation where there can
DEATH.
This takes the place of the usual requirement of death
certificate to allow the other spouse to remarry.
Art. 41
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reappears?
o If no one does anything, we have a situation where there are
o
o
o
o
say that the people havent seen her to prove that a person is
did not say how we should define it in the Philippines. Only value is that
affidavit of reappearance?
One that has a lot of cases. Members of the committee who drafted the
Psychological incapacity
16
decisions
3) it must exist at the time of the celebration of the marriage
4) the PI is incurable [from Santos case]
marital obligations
Domingo v. CA:
o Judicial declaration of nullity only needed for remarriage.
o Otherwise, no need for judicial declaration to establish nullity of
the marriage.
Tamano v. Ortiz:
o RTC has jurisdiction over all actions relating to marriage and
o
complaint said that the parties were married under the civil
code.
Ninal v. Bayadog:
o There must be no impediment or interruption in the five-year
relied upon is infidelity of the spouse, going out having drinks with
friends, falsifying signature all these were struck down by Paras
Marcos v. Marcos: You dont need to have a psychiatrist or psychologist
to examine the party. Absence of such is not fatal. What you need is
basis without being tied down by the Molina requirements. This came
out strong. Molina gave us a straitjacket and we dont want this.
Suazo v. Suazo: You dont have to be strictly bound by cases (open
case policy). We are not throwing away Molina but the court must be
marital relations.
Jurisdiction based on allegations of the plaintiff in the
Marbella-Bobis v. Bobis
o The question of nullity of a previous marriage not judicially
declared void is NOT a prejudicial question to a charge of
by the TC.
What is the end result of all this jurisprudence?
o It is still case-to-case. There is no set doctrine.
Declaration of nullity
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2.
dismissed.
Tenebro v. CA
o The subsequent declaration of nullity of the second marriage
under Art. 36 does not negate the criminal action for bigamy.
(The mere act of contracting a second marriage during the
firsts subsistence is punishable.) Article 36 marriages are not
means that there can be prosecution for bigamy.
Voidable marriages
d.
Grounds
1.
e.
f.
ii.
Insanity
a. When should insanity exist?
i. Time of marriage
b. When is there a presumption of insanity?
i. If the party was insane right before and after the
c.
i.
ii.
iii.
e.
3.
consent
UPON reaching 21, until 26 party whose parent or
Fraud
a.
Grounds:
i. Non-disclosure of a previous conviction by FJ of the
ii.
iii.
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iv.
e.
NOTE: the other party must not have known it during the
b.
c.
f.
marriage
What is the doctrine of triennial cohabitation?
i. If the wife is still a virgin after three years of living
d.
fraudulent?
i. No. It must be by FINAL judgment.
What if the crime was alleged in the same annulment
g.
case?
i. Cant apply because there must be previous
6.
e.
4.
b.
5.
b.
c.
grounded fear
What if intimidation has a legal basis?
i. It does not count. Ex. I will prosecute you for rape,
c.
d.
Ground
When
Ratification
Lack of parental
consent
Underaged party
Within 5 years
upon turning 21
Parent, guardian
who did not
consent
Sane party
Until child or
ward turns 21
Insanity
Insane party
Fraud
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Parent or
guardian,
relative of insane
party
Injured party
Within 5 years of
discovery of
insanity
Within 5 years of
lucid interval
Before death of
either party
5 years from
cessation of
Yes
Force,
intimidation,
undue influence
Impotence
Injured party
Serious and
incurable STD
Healthy party
Potent party
cause
5 years from
cessation of
cause
5 years from
marriage
5 years from
marriage
Yes
o
No
No
operation of law
3) designation of guilty spouse as beneficiary in life insurance:
may be revoked
State
o Take steps to:
Pendency of action:
o Follow written agreement between spouses
o 1. Court provides for support of spouses
o 2. Custody and support of common children
Procedure
Common children
mutual agreement
Who may ask for enforcement of judgment:
1. Children
2. Guardian
3. Trustee of property
Will not prejudice ultimate successional rights
delivered presumptive legitimes are deemed
Effects:
o 1) share of party in BF over net profits forfeited in favor of:
advances
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void
Which children are legitimate:
o Those born before annulment
o Those born before Art. 36 nullity
o Those born of subsequent marriage which doesnt comply with
o
than a year
Art. 53 (registration)
Also, those who were born before reappearance of
LEGAL SEPARATION
1. Condonation
o Forgiveness/pardon
o May be express or implied
o Sexual intercourse is implied condonation
was unsuccessful
Each sexual intercourse with another person is a separate act
of adultery. Forgiveness for the first does not extend to
Grounds:
Defenses:
Or connivance in such
o 4. Attempt against the life of spouse
Character stuff
o 5. Final judgment of more than 6 years in prison
Even if pardoned
o 6. Drug addiction or habitual alcoholism
o 7. Abandonment of spouse without justified cause for more
Violent stuff
o 1. Repeated physical violence or grossly abusive behavior v.
o
religious/political affiliation
3. Attempt to corrupt or induce to engage in prostitution:
subsequent acts
2. Consent
o Express or implied
o Prior to the act
o Agreement between spouses against law and morals may be
null and void, but it may be considered consent that would bar
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litigation.
3. Connivance
person
Same powers and duties as those of a
guardian
Support of spouses
filing of petition
Court must take steps towards reconciliation of the spouses, and satisfy
of the appeal
o Support and custody of children
B. Effect of death of a party:
o Action is dismissed
o Since action is purely personal between the spouses
o Lapuz v. Eufemio:
petition?
o Only try an action for LS after 6 months have elapsed since
stipulation of facts
6. Prescription
o Even if not alleged, court can take judicial notice
o If there are multiple acts, count from the last separate act
o From knowledge of the ground, not just from mere hearsay
Prescription for all: within 5 years of occurrence of cause
Procedure
A. Effects of Pendency:
o After filing petition:
Administration:
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provisions.
You dont do liquidation and partition in the same LS case
anymore when one party dies after entry of judgment. But the
decision of the LS case is already final and binding in the
(IMPT!!)
C. Effects of decree:
o 1. Spouses entitled to live separately
o 2. Dissolve ACP or CPG
Optional effects:
o 1. Innocent spouse may revoke his or her donations to
Procedure
o Joint manifestation under oath
o Signed by both
o Filed with court in same proceeding
Effects:
o If proceedings pending, terminate in whatever stage
o If final, set aside final decree
o What shall persist:
Separation of property
Forfeiture of shares
o UNLESS spouses agree to revive former property regime
Agreement to revive former property regime:
o Under oath
o Will specify:
located
Alienations, liens, encumbrances prior to recording
spouse
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Became important due to Molina doctrine (if you cannot perform these,
consequence?
o As a rule, they must live together. If they cannot, they go to
profession
When can a spouse object to profession?
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community property
Can ask for receivership, transfer of admin,
spouse, etc.
ONLY ground where there is no need for court approval: when
o
o
o
How governed
time.
Rule on donations?
o General rule: cannot donate to each other
o To third party: must be a joint act
In the ff order:
o 1. MS executed before the marriage
o 2. FC provisions
o 3. Local customs
rejoicing
What about making a donation to the children?
o As long as it is for education, etc.
o But it would need consent of the other spouse.
o Otherwise, still valid, but charged to the separate property of
Its void.
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contract.
If its 18-21, the parents must be part of the marriage
settlement.
When can there be a change of property regime?
o 1, separation of property
o 2. Legal separation
o 3. Ordinary dissolution
Is there need for judicial approval?
o No. Only need to register with the civil registrar
system to govern?
o Determine intent of the parties. If it cannot be ascertained,
then apply local custom. When there is no local custom, apply
Else, unenforceablee
o 2. Registered in civil registry to have effect on third parties
sufficient ground to do so
Third person will manage conjugal properties
All properties of the wife belong to the husband
N.B. Invalidity of some provisions will not nullify valid
co-ownership.
When can modifications in MS be done?
o Any modification in marriage settlements is valid only if made
o
What if the parties expressly rejected ACP but did not agree on any
properties: void
What are the Formal requisites for MS?
o 1. In writing
ones.
What properties are covered by the regime?
o When a regime is chosen, all properties are governed by that
regime. Cannot exclude particular properties from the regime.
Unenforceable
o
o
parties to the MS
3. Executed before the marriage
4. Those who need parental consent must make parents party
to the MS
Otherwise, MS is void
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to govern
What governs property relations between the spouses?
o Philippine laws, regardless of place of celebration of marriage
o
o
If future spouses agree upon regime other than ACP, cannot donate to
each other in MS more than 1/5 of present property.
o Excess: considered void
o Reason: in ACP, their properties will become part of AC
is void
Including donations between respective spouses contained
therein
Does NOT invalidate stipulations that do not depend on
properties in MS
What is the rule on property subject to encumbrances?
o Property subject to encumbrances can be donated.
o If foreclosed to secure an obligation:
Ordinary donations
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Prescriptive period:
Written 10 years
Oral 6 years
N.B. same as above the reason for termination is
operation of law
Prescriptive period?
fact
Donations during marriage between spouses: VOID
o EXCEPT: moderate gifts on family rejoicing
customs
Same prohibition applies to persons living as spouses without
valid marriage
inherits)
Who has standing to question:?
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marriage
o Cannot exclude specific properties from the community
What are excluded?
o 1. Property acquired during marriage by gratuitous title
(donation, succession)
question.
Donor is included in those with standing since there
can be a case where the weaker spouse is taken
advantage of by the stronger
time is VOID
Basic concept:
o Upon marriage, all properties brought into marriage and
o
Except jewelry
3. Property acquired before marriage of spouse with legitimate
the spouses
o Contra: in CPG, only the net profits are divided between them
Waiver of rights, interests, shares, and effects of ACP:
o DISALLOWED
o Except:
1. In a public instrument
2. Recorded in LCR
o Provided: creditors of waiving spouse may petition to the court
credits
What is included in AC?
29
partnership.
Apply same rules on:
o 1. Commencement: upon precise moment of marriage
o 2. No waiver of rights, shares, interest unless in JSP or
owner-spouse
2. May mortgage, encumber, alienate, or dispose separate
reimburse CP
exclusive property
2. incapacity to accept
can be reimbursed.
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fishing
Fruits of property
spouse
By presumption
donation)
On benefits, pensions, annuities, usufructs, etc.:
o General rule applies.
Gratuitous = exclusive;
Onerous = conjugal.
o Annuities:
Chance
partnership)
If both spouses are jointly insured in a single policy,
proceeds belong to the surviving spouse (obviously),
conjugal
Usufruct:
conjugal
What is the determining factor?
exclusive property
Pensions from that annuity (ex. P5K a month) is
gratuitous (exclusive)
If it is a pension, which is given for services rendered,
31
money
Interests falling during marriage is conjugal property
partnership
o
On tips:
o If it is beyond the service charge, which he is entitled to, then it
is separate (gratuitous)
On damages:
o If actual damages conjugal
property
Fruits from separate property net fruits (total fruits minus
ACP
CPG
Same
partnership?
property.
But there is no prohibition against early
reimbursement.
32
Same
Same
Same
N/A
unless:
that is needed?
(except for the last one, which has a special rule), then spouses are
benefit of family, support of IC, and liabilities for crimes will only be
another obligation?
o It is deemed as not redounding to the benefit of the AC/CP
CONJUGAL PROPERTY
is not enough.
What if the other spouse is not incapacitated or is not
33
consent
Exception:
rejoicing/distress
What may be disposed by will?
therein
EXCLUSIVE PROPERTY OF SPOUSES
1. Receivership
properties
administration
What if the other spouse is incompetent, has conflict of interest, or
them.
Compare to: mere separation in fact. This does not affect the property
regime, except that:
o 1. Spouse who leaves conjugal home without just cause loses
2. Nullity
3. Annulment
o Where marriage is not dissolved:
4. LS
34
too.
o
o
o
o
spouse in BF
If none, equally
children
Procedure for liquidation of CPG:
o 1. Inventory list community and exclusive properties
o 2. Credit CP for amounts advanced to cover spouses personal
o
of common children
VOID
What if there is subsequent marriage without liquidation?
marriage
Simultaneous liquidation of two marriages contracted before FC:
o Depending on agreement
o If none, determine the capital, fruits, income of each
o
35
would be simultaneous.
NOTE, however, that this will not happen under the
FC because if there is no liquidation of the first
marriage, the second marriage is under mandatory
regime of CSP.
For CPG support during liquidation:
o Taken from fruits and income pertaining to their shares in
o
declaration
Procedure for voluntary separation:
o 1. Spouses file verified joint petition to court
o 2. Petition lists all creditors
o 3. Creditors personally notified
2. Absentee returns
again
4. Parental authority restored
5. Abandoner returns
6. Separated-in-fact spouses resume common life
7. Agreement, after voluntarily dissolving regime
obligations
5. Administrator-spouse has abused privilege
CSP Regime
36
o Chosen through MS
What are the kinds of separation of property?
o Extent:
1. Total
1. Common children
of separate properties
What is the rule on liability to creditors?
o Liability is solidary [note!]
o
descendants
1. Gratuitous title
AC property
o As to kinds of property:
1. Present property
2. Future property
3. Both
What are the rules in administration and ownership?
o Each spouse administers and owns, disposes, encumbers, etc.
o
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marriage
If party in BF, forfeit shares to:
1. Common children
3. Innocent party
If both are in BF rules on forfeiture still apply. [Dean Del:
members?
o Prior earnest efforts to compromise
What are exceptional cases, because they cannot be
1. Non-payment of taxes
or after construction
4. Debts due to laborers who constructed or rendered
compromised?
o 1. Civil status of persons
o 2. Validity of marriage/LS
o 3. Ground for LS
o 4. Future support
o 5. Future legitime
o 6. Jurisdiction of courts
Who may constitute a FH?
o Jointly by spouses
o Unmarried head of family
minor beneficiary
o Heirs cannot partition it unless there is compelling reason for it
What if the FH increases in value beyond that allowed by law?
o If it is due to voluntary improvements introduced by the owners
or beneficiaries, then the FH can be executed.
38
Kinds of filiation
1. By nature
o Legitimate
o illegitimate
2. Adoption
A. Legitimate:
o 1. Conceived OR born during marriage of parents:
o 2. Children conceived through artificial insemination of wife
meeting)
B and G are college sweethearts in Manila. When they graduated,
G was 7 months pregnant. Unknown to G, B promised to marry his
childhood friend C in Cebu after graduation. 2 months before B
and C married, G gave birth to W. During B and Cs marriage, C
gave birth to X. Unbeknownst to C, whenever B has a business trip
in Manila, he still sees G and because of this, G gave birth to Y.
C. Legitimated
o Who can be legitimated?
inheritance by heirs
From five years from time their cause of action arises
descendants
Who can file an action to impugn legitimation?
children?
parents
Children by nature
each other
How are they legitimated?
39
case, its obvious that C was not the mother. Its more
hold water?
A. To claim filiation
o What are the methods to claim legitimate filiation?
Primary methods:
lifetime
H and W were married and during their marriage, children
A and B were born. X, in a notarized instrument,
of legitimate child
Or in state of insanity
dies
What are the methods to claim illegitimate filiation?
filiation
When must action to claim illegitimate filiation be filed?
intercourse with W
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intercourse with W
2. Proved through biological or scientific reasons, that
the child could not have been that of the H
conclusive determination
Blood tests can disestablish paternity
DNA tests A.M. No. 06-11-5-SC
o CONCLUSIVE of non-paternity
o If probability of paternity value is
o
terminated
Child belongs to the second marriage if:
solemnized
(Even if within 300 days after first marriage
terminated)
So the rule is: BOTH periods must concur for the first
marriage to have the child. Else, second marriage
wins.
N.B. these are mere presumptions. And regardless, the child
or ratification
will be legitimate
What about children born after 300 days (10 months) of
birth or recording
C. 3 years, if abroad
If birth concealed or unknown, when do you start
ADOPTION
RA 8552
41
children
5. Can provide care/support
capacity to adopt under his laws and that the country allows
o
o
Filipino spouse
5. At least 27 years old and 16 years older than adoptee at
time of application
Guardians, with respect to their wards:
o 1. After termination of guardianship
o 2. Clearance of liabilities
Who must adopt?
o By default, the husband and wife must jointly adopt
o Exceptions to this?
adopt. If one spouse is qualified but the other is not, then there
can be no adoption.
42
adopter
2. The adoptee becomes the LC of the adopter
(just them)
Who can rescind adoption?
o JUST the adopted child. Never the adopter.
Grounds to rescind?
o 1. Repeated physical or verbal abuse by adopter
o 2. Attempt on life of adoptee
o 3. Sexual assault or violence
o 4. Abandonment/failure to comply with obligations
Effects of rescission:
o 1. Restores parental authority of biological parents, if adoptee
o
o
is still a minor/incapacitated
2. The amended birth certificate is cancelled
3. Rights to succession are restored, but not as far as there are
o
o
o
o
o
o
o
o
o
o
o
Except:
family
What applies for judicial proceedings?
o Rules of Court
SUPPORT
43
illegitimate grandparents.
2. Collateral relatives: limited to brothers and sisters
3. Spouses
support.
Priority of support:
o 1. Spouse
Spouse
Children
Parents
Grandchildren
Grandparents
Etc.
spouse?
44
capacity to support.
PARENTAL AUTHORITY
Parents
they go to court
over child
o Defense: due diligence
The teacher exercising special parental
authority is SOLIDARILY AND PRIMARILY
liable. The parents and those with substitute
Legal guardianship
than P50,000
If more than P50,000: required to file a bond
and must be appointed by the court in a
summary proceeding
Even if you are granted authority by the
court, legal guardianship authorizes only
acts of administration; NOT acts of
criteria
Take note of tender years doctrine (in
reasons otherwise)
If parents are gone, substitute parental authority
ownership
There is separate approval if you want to sell the
childs properties
Rules on property of minor children:
45
capacity.
If LC joint admin by F and M; if
disagreement, M wins, but F can
the child
If there is excess, it can be used for
Funerals
of lasciviousness
3. Subjected child or allowed him to be subjected to sexual
abuse.
Deprivation of PA is permanent
pardon, or amenesty
2. Court, in action, finds that the parent:
legitime)
When is parental authority terminated?
o 1. Death of parents or death of child
o 2. Emancipation of child
o 3. Adoption of child
o 4. Appointment of general guardian
o 5. Judicial declaration of abandonment
Older is preferred
o Who has preference for ascendants?
Paternal side
Against what property are funeral expenses chargeable?
o Property of deceased
o If married, charge to conjugal property
Emancipation
46
SURNAMES
Purpose:
o 1. Interest of the State: because it seeks to prevent confusion
of identity
o 2. To prevent escaping from criminal liability
What is the legal name of a person?
o What appears in the birth certificate
To change: Rule 103 of ROC
was under that name. In renewal, she asked the DFA if she
can return to her maiden surname. But there is no annulment,
or whatever ground to revert. She claimed that she had the
o
Rules:
o
option.
HELD: Cannot do this.
ANNULMENT
o
o
no turning back
Options:
children)
surname
Married women:
o Not required to use surname of the husband. Can retain
maiden name
Retroactivity of the FC
document
47
surname
If innocent spouse, may retain husbands surname or
Nationality
Sex
Age
Status
o NOTE: name can only be changed once
When can there be change of name under Rule 103?
o N.B. you can change surnames through Rule 103
o 1. Name is ridiculous, tainted with dishonor, extremely difficult
o
to write or pronounce
2. Consequence of change of status, such as when child is
o
o
legitimated
3. Change is necessary to avoid confusion
4. To improve social standing, as long as in doing so, there is
2. Declaration of absence
o Two years from time of disappearance, unless administration
period of time
ABSENCE
of estate
Stages:
years
Procedure; prove that he has been missing/absent for a certain
1. Provisional absence
o An ad hoc stage, since there are certain things that have to be
o
PROPERTY
CLASSIFICATION OF PROPERTY
reasonable ground
48
o
o
land
Ornaments
Machines
Animal houses
Loading docks
parties.
As to third persons in GF, they are real property, consistent with
the code.
What is the controlling factor for immovable by destination?
o Intention of the owner of the property in question.
Give examples of immovable properties by destination.
o Statues, etc, used for embellishment.
If a painting is embedded into the cement wall of a house, thus
becoming part of the wall, what happens to it?
o The painting becomes immovable by incorporation. Because
o
real or personal?
o Real. It doesnt matter that who owns the land if by
property
Actually, the only one that is real property by its very nature is land.
Buildings, etc. only become immovable property because they are
Land
o 2. Immovable by incorporation
publicly sold, one must compl with conditions precedent for the
the material or the obect (this refers to the attached object, obviously,
49
Loading docks
o This covers, for instance, a floating platform made of wood
and metal where machinery of a petroleum corporation are
property.
If I hang the painting on the wall of Justitia (and I dont own
Justitia)?
o It does not become immovable by destination because it has to
found, and he intends that it be an embellishment.
Ateneo owns a St. Thomas More painting and hangs it in the walls
properties.
Is a mortgage on land movable or immovable?
personal.
Fertilizers
What are those by analogy?
o Contracts for public works, and real rights over immovable
property.
What are the tests to determine personal property?
o 1. Exclusion test
personal property
2. Description test
person.
Animal houses:
o If you intend to keep it there forever, then it and the animals
o
immovable property.
50
415
4. Considered as personal property by analogy
Radio frequencies
Shares of stock of ANY corporation, even if the
o
o
o
Public domain
Private land
o Civil Code: - for purposes of ownership
utility
Also includes those from first two
Jus possidendi
Jus fruendi
Jus utendi
Jus abutendi
o 2. Right to dispose of the property (Jus disponendi)
Eminent domain
Police power
Nuisance
Right of way
Art 431: use property the way you want it, but not in
encumbrance)
3. Cannot be acquired by prescription
4. Cannot be subject to attachment or execution
5. Cannot be burdened by voluntary easement
OWNERSHIP
quality
Consumable/non-consumable: based on nature
51
To whom does the property belong to, and what are the rules on
finders fee?
o Finder owns property 100%
o Finder and owner split 50/50
flooding
What are means to protect ones rights?
o Doctrine of self-help Art 429: can use reasonable force to repel
actual or imminent aggression
Elements?
possessor
3. Invasion/usurpation is unlawful
Accion publiciana
Accion reivindicatoria
Physical boundaries of property
o Horizontal aspect
o Vertical aspect
4. Discovery is by chance
Accession
52
Natural fruits
Industrial fruits
Civil fruits
2. Those attached or incorporated into ones property and
o
o
property.
In contrast, there is NEVER a situation where a sower can be
compelled to buy the property. You can only require him to pay
rents.
What is the rule as to expenses for planting and sowing? Who
pays for cost of the seeds, labor, gathering, preservation, etc.?
o In general, these are charged to the person who receives the
to sowing.
How does the rule differ?
o When someone plants something in ones property, there is a
split it proportionately.
What is the difference between natural and industrial fruits?
o Natural fruits spontaneous products of the soil; products and
animals.
Accession discreta
effort, cultivation
Spontaneous only qualifies soil products. No need
fruits.
And as a general rule, it is the owner who gets these. But
there are instances when the law gives these fruits away to
53
Movable property:
-ions
Accession industrial
o Building, planting, or sowing
o Building constructions, improvements using unnatural
o
principal
Know difference of Art. 443 and 449
o 449 you dont get reimbursement if its not yet harvested
necessary expenses
harvested or not
o
Accession continua
General rules in accession continua:
o 1. Owner receives the extension/increase
o 2. Accessory follows the principal
o 3. The things must be so united that they cannot be separated
o
1. The ideal scenario is the LO, BPS, and OM is just one person. There
is no problem here. Accessory follows the principal. The presumption
degree of permanence.
How many persons are involved in the B/P/S problems?
2 or 3
LO/BPS/OM scenarios
not punished
Accession continua those external in character, forming one single
object
o
o
o
materials
Does it matter whether the building construction is
to him.
When is the OM in GF here?
no industry involved
Alluvium
Avulsion
Formation of islands
to the LO+BPS.
FIRST THING TO DO: determine whether accession exists. If
the materials can be removed, then there is no problem. (Ex.
Light bulbs take them out and return them)
54
Note the basic rule: when two persons are involved and both
Building
o If necessary improvement
Measure of indemnity:
(amount of increase of
causes damage
property.
When is the BPS in GF here?
is accession.)
2. LO can compel the BPS to purchase the land.
into possession.
(Strange rule because it
gives the LO option to
value in land).
If luxurious improvement
Measure of indemnity:
actual costs.
If useful improvement
Measure of indemnity:
55
1. Receive indemnity
rents.
When is there right of removal by the LO against a
NECESSARY improvements.
MWSS case: for USEFUL expense can
first dibs.
BPS can:
1. Ask for removal. It doesnt matter whether
of charge.
2. LO can always compel the BPS to purchase the
56
LO
BPS
OM
of retention;
+ labor)
BPS.
There is no subsidiary
remedy against LO.
OM
LO chooses OPTION #1:
57
Cannot remove
what was
built/planted,
regardless of
whether there
would be damage
of not.
Right to receive
payment from
BPS. If BPS is
insolvent, can
subsidiarily go
No right of
retention in case of
non-payment
Right of removal comes
considerably more
expensive)
built or planted
both in GF).
OM (in BF)
Entitled to receive
for necessary
necessary
improvements. No
improvements.
right of retention.
[Since both in BF
becomes in GF as
regards BPS]
But no right to
subsidiarily go against
No subsidiary liability of
LO [since LO in GF]
LO.
BPS
OM (in BF)
of retention;
OM and BPS in BF
becomes in GF]
against LO.
materials
Can sell land (if not
considerably more
expensive)
LO
+ labor)
Loses everything
built or planted
58
3) OM is in good faith
What is the basic rule on BPS liability in favor of LO?
o BPS is always liable in favor of the LO, if the LO is in GF.
o [Or both BPS and LO are in BF becomes GF]
When is there right of removal?
If in BF regardless
What are the remedies of the LO-gf if the chooses to compel the
o
(Miranda v. Fadullan)
2. LO entitled to have improvement removed when the BPS-gf
property
For banks of inland waters (like lagoons), do not apply
including the portion upon which the BPS-gf built his house. The
Trial Court ordered the BPS-gf to vacate and pay monthly rental
Avulsion
LO chose option 2.
The TC mistakenly ordered the BPS to pay monthly rental,
because being in GF, he has the right of retention until the LO
water.
Prescription: two years to remove
o Or for uprooted trees carried by the current to another land: six
months to remove
What happens if you dont take it out after two years?
o Dean Del thinks if you dont remove it after two years, its gone.
alluvium
3. Deposit must be done on basis of natural current of the river
59
into
BUT some commentators dont think it will belong to the
person
What about trees?
provision is an exception.
Example, a river goes through As property. But it changed course to
Bs and Cs properties.
What happens?
o B and C, the ones who lost property, own the new dry land due
o
meters for C, so 1:2 ratio for B and C on the new dry land)
What is As right?
o He can choose to acquire the new dry land. Pay B and C what
is due, in proper proportion.
The government may choose to redirect the water.
Under the Water Code: the owners of the affected lands may undertake
Formation of islands
have to secure a permit from DPWH, and they must commence works
1. Adjunction
to return the river/stream to its old bed at their own expense; but they
attached to what
Third test: Based on volume
property.
60
But if the accessory is worth much more than the principal, owner of the
accessory can ask for separation, but he has to pay for the value of the
damage or not
Mixture
The two properties must lose their respective identities, so you cannot
3.
Specification
There is a thing, and it is turned into a finished product through the labor
of another
(Labor of one + material of another)
The labor is ALWAYS the principal, and the material, the accessory
valuation.
2.
choices:
regardless of value
What is the rule?
o Determine whether the worker is in GF or BF.
o If in GF, he gets the appropriate the thing, but indemnify the
o
Quieting of title
agreement.
61
materials
But if with GF no damages
o
o
property
2. There is cloud on such title
3. Cloud is due some instrument, record, claim, encumbrance,
plaintiff
Are tax declarations conclusive evidence of ownership?
o No. Its just an indicia of possession in concept of an owner at
table.
What are the limitations on the right to use the thing owned in
common?
o 1. It must be according to the purpose for which it was intended
o 2. It must not injure the interest of the co-ownership
o 3. It must not prevent other co-owners from using it according
Co-ownership
personality.
Co-ownership can be created by various ways (above), while
partnership must be based on agreement (since it is based on
4. By chance
to their rights
Does he have right to possession?
o Yes, over the whole thing.
o You cannot prevent other co-owners from using the thing.
o One co-owner can file for a suit for ejectment, no need to bring
in the others.
ownership?
o No. Because there has to be undivided, aliquot shares.
How is co-ownership created?
o 1. By law
co-owners.
If he loses the ejectment suit, what happens?
62
co-owner
What is ones right over ones aliquot share?
thing?
o No. He acquires only his own share, and he has right to get
disposition.
Do the co-owners have a right of first refusal?
o No. They do not have right of first refusal or preemptive right to
purchase ones share, under law.
o N.B. Of course if there is an agreement otherwise, respect that.
What is the right of redemption?
o Co-owners have right to redeem.
o Upon receipt of notice of sale.
o Ratio: the law does not like co-ownership. As long as there is a
owners)
Within 30 days from notice of sale
Can repurchase the thing from the buyer pay amount that
Properties
actually contributed
Can you agree over the proportionate interest of each? Or
should you fix it to the amount of contribution?
as determined by courts
Is there any preference among the remaining co-owners as to who
can exercise of redemption?
o Ex. There are 5 of us, 1 sold his 1/5 share. How do you divide
o
stipulate?
this?
Take the proportion among the remaining co-owners. So if the
other four have equal shares, each can purchase 1/20 of the
1/5th share.
63
alteration
What is the rule on lease?
consent.
If neither: it is an act of administration and just
the mortgage.
A built a concrete fence around the lot Not binding upon B
and C since expenses to improve the thing must be decided by
majority of the controlling interest.
C built a grotto in the garden Does not bind A and B, since
of the controlling interest.
A and C sold the land to X The sale does not bind Bs 1/3
administrator
If you want to get out of the co-ownership, what is the remedy?
o 1. Sell your undivided share.
o 2. Partition absolute right of any co-owner
owners
If you perform an act of ownership or administration, and you do
requires a majority.
A, B, C co-own a house and lot in equal shares. What is the status
64
TEN YEARS
Can extend again, but for another 10 year period. In the
Requisites:
Sell the entire thing, and then divide the proceeds among the
co-owners.
How does a co-ownership terminate?
o 1. Consolidation of ownership in one co-owner
o 2. Destruction of the thing
o 3. Prescription in favor of a third person or a co-owner
o 4. Partition
How do you terminate the co-ownership?
o Main way: by partition.
owners.
From the time of repudiation, count the period
necessary provided for by law for acquisitive
prescription. If completed without protest by the
the co-ownership.
E.g. If one lot is divided into three equal parts (30
behind 3 heirs. One of the heirs redeemed the property within the
one year period for redemption. Is she the sole owner or a co-
owner?
o Co-owner with her co-heirs. Redemption by one would benefit
the others.
What should the heir do to receive sole ownership?
o Wait for redemption period to expire, and then wait for the
mortgagee/purchaser to consolidate his title, and a new title is
65
Condominium Act
stories, and with different owners. There are common areas, too.)
o Art. 490: You only share on the expenses of the stairs that you
o
o
common (1 unit, and there are 20, you own 1/20 of the
o
areas.
How do you partition if there is direct co-ownership?
o If DIRECT co-ownership: It is not like ordinary co-ownership
where a partition can be for no reason. There has to be a
(see below)
How do you get around the restriction on land?
o Condominium Corporation: it is a corporate entity. As long as
can partition is to sell the entire project (the whole building, including
building). But the land is always part of the common area, since it is
66
o
o
renovation
4. Material part of the condominium was expropriated and the
Water Code
Waters are owned by the State (waters in their natural state not
commodity water)
Right to appropriate water based on beneficial use
o You have to ask for a water permit before you can draw water
drawings of water
For those who want to bathe/swim in the waters
POSSESSION
Requisites of possession:
o 1) modes of possession
o 2) intention to possess
o 3) own rights
How do you determine GF/BF?
o GF: 1) possessor acquired thing through title or mode of
Agent
Guardian
Attorney-in-fact
Etc.
An agents possession could never ripen into ownership,
Ex. Squatter
he is not aware of it
property?
67
Ex. A lessee
Generally, this does not and cannot ripen into
ownership.
in the title
succession
4) possession with just title and there is no flaw
Titulo verdadero
(see below)
Rules:
1. Present possessor
years (BF)
In case of conflict between 2 persons regarding possession of a
into ownership.
2) Possession with juridical title
(BF)
Immovables: 10 years (GF) 30
A) Just title
68
o
o
left
Once the line is broken, you have to start counting again.
On issue of ratio: you cannot take credit for BF possession
While Paras says you can use ratio (ex. Credit 1 year
of possession for 3 years of BF possession), Dean
Del Castillo disagrees. If the preceding possession is
in BF, your possession is already tainted.
Inheritance
69
Fruits
Civil fruits rents, profits, and other forms of compensation for use of
property during time when you were in possession
o When do you not give the civil fruits back?
70
1) Right of reimbursement
2) Right of retention
o Rights of possessor in BF:
No right of retention
What about for Useful improvements?
o Rights of possessor in GF:
1) Right of reimbursement
2) Right of retention
NONE.
What about for Luxurious improvements?
No liability
71
When can the owner of a movable who has lost it or who has been
unlawfully deprived thereof can no longer recover it?
o 1) Prescription
o 2) Possessor acquired thing from a person whose authority the
owner is estopped from denying
o 3) Possessor acquired the thing from a merchants store, fairs,
markets, etc.
o 4) Thing is a negotiable instrument and possessor is purchaser
in GF and for value
o 5) Possessor is owner of thing in accordance with finderskeepers principle in Art 719
Usufruct
Abnormal usufruct
o 2. Can alter the form of the thing, leading to a slightly
deteriorated form
Quasi usufruct
What is a abonormal usufruct?
o For consumable things. So when returned, there is some or all
o
of it consumed.
Instead, you have to pay the propertys value based on
appraisal (for movable properties)
72
Ex. Cars
You cannot really return the thing in the same form and
substance.
Instead, you return the object itself. As long as its normal wear
it.
NOTE: a usufruct is always a real right, and will follow the
usufruct?
o Yes.
o The usufructuary does not compete with the mortgagee as far
as fruits.
o There is no inconsistency.
If the mortgagor defaults in the principal obligation, what
happens?
o The mortgagee can foreclose the property. This is his right.
If you are the usufructuary, how do you stop the foreclosure?
obligation.
His right to usufruct continues. It is a real right and can be
possidendi]
Modes of extinguishing a usufruct?
o 1. Death of usufructuary, unless contrary intent appears
o 2. Expiration of period or fulfillment of resolutory condition
o 3. Merger of usufruct and ownership in one person
o 4. Renunciation of usufruct
o 5. Total loss of the thing
o 6. Termination of the right of the person constituting usufruct
o 7. Prescription
A sold a parcel of land to B. There were two buildings on the land.
There was a condition that 1/3 of the rents of the two buildings
should go to A. Subsequently, without Bs fault, the buildings were
needs to get are fruits. The usufructuary gets the rentals from
that property.
Requirements for usufruct?
o Form is not a matter of validity, just a matter of convenience.
o It is valid between the parties.
buildings.
But since the construction diminished the rights of the usufruct
over the land, he must be indemnified for the loss. In a case
73
the usufructuary.
Default provisions of usufruct
The other provisions in the Code: are those that apply by default, in the
fruits?
o Belongs to the owner
o Owner pays indemnification for expenses to plant, cultivate,
on fruits
Lease)?
o Yes. Here, it is mere possession that is transferred, the right of
marriage
4. Caucion juratoria
Obligations of the usufructary during the usufruct?
o 1. Take care of the property as a GFF
o 2. Make ordinary repairs
o 3. Inform owner for extraordinary repairs
o 4. Pay annual charges and taxes and those considered as lien
nothing
What happens if the period of the lease is longer than the period of
the usufruct?
o Rentals after termination of the usufruct belong to the owner.
o If the lease has become a real right, then the owner must
respect
74
usufruct
Obligations upon termination of the usufruct?
o 1. Deliver the thing to the owner
o 2. Right to retention for taxes and extraordinary expenses,
which must be reimbursed
Rights over necessary, useful, and luxurious expenses?
o Necessary expenses: right to demand reimbursement
o Useful and luxurious:
No reimbursement
property caused
May set-off these improvements against damage on the
property
Easements
immovables
No easement over another easement, for instance, even if the
benefit of:
Another immovable property belonging to someone else (Real
easement)
o Or a person or community (Personal easement)
Dominant estate is the one benefited.
Is there any difference between easement and servitudes?
o For purposes of the NCC, these are used interchangeably
o Servitude used in common law (personal and real
properties
Distinguish between positive and negative easements:
required to cut
Give examples of negative easement.
o Easement of light and view cannot block neighbors view
Distinguish from continuous and discontinuous.
o Discontinuous only used in intervals, and with intervention of
man
o Continuous constant, no need for intervention of man
Apparent from non-apparent.
o Non-apparent no external signs
o Apparent made known and with external signs
Why is the classification needed?
o Positive/negative determines rights
o Continuous/discontinuous and apparent/non-apparent
determines how to acquire
Or law
Prescription
75
it into writing
Otherwise, it is void
o If through succession, it must be through a will
What is the meaning of permanence as a characteristic of
easement?
o General use: non-use will not extinguish easement
o Although, non-user for ten years will also extinguish the right
water pass by you. You see the water and block it. It
registered encumbrance?
o The encumbrance exists
o But you are guilty for breach of warranty, and the buyer can sue
conveyance
Title is there a specific form?
76
Indivisibility
expense
anything.
Rights of the Dominant Estate
o To make all works necessary for the use and preservation of
the servitude
Obligations of the Dominant Estaete
o 1. Cant alter the easement (only for the benefit of the movable
convenient
How does an easement terminate?
o 1. Merger in the same person of ownership of both dominant
o
originally contemplated)
o
o
o
Legal easements
dominant estate
of the easement
Obligations of the Servient Estate
o Cannot impair in any manner the easement
o But if the easement becomes very inconvenient to the owner of
carried along
The lower estate cannot construct works that impede
the flow. The higher estate cannot construct works
77
Civil Code
So lower estates still obliged to receive
Requisites:
drainage
What is the legal easement of aqueduct?
Any person who may wish to use upon his own estate
of way
It is a one-time indemnity
Exception: Isolation on account of sale/transfer or donation
estates
4. Secure a water right from the National
pay
Donation: if you receive property through donation,
you can demand for right of way, but you have to pay,
because its too much to ask if you get it for free na
or descend
What is the nature of this easement?
inconvenient
2. Payment of proper indemnity
3. Isolation not due to acts of dominant estate
4. Right of way claimed is at the point least prejudicial
aqueduct by prescription
o Banks of rivers, etc. 3 m, etc. covered by Water code
2. Right of way
o Most common right of way: road right of way
78
damage caused
3. No indemnity for the two above situations:
vendor
Donation of land surrounding other estates of
the easement.
3. Party walls
o Rules on co-ownership can apply
o The party wall itself is the servient estate, and the estates are
estate
What is the implication of failure to follow minimum
adjoining tenement
Negative open window through wall of dominant
distances?
Distances:
be extinguished?
estate
the donor
When can the servient estate demand that the right of way
dominant
You cannot open a window on a party-wall
of windows in detail.
4. Light and view
79
estate
6. Trees extending over anothers property
o Who owns the fruit on the trees?
What is a nuisance?
o Any act, omission, establishment, business, condition of
o
o
o
o
itself and at all times it was just the venue for the illegal act.
What are the requisites before there can be summary abatement of
nuisance by a private person?
o 1. Specially injurious to him
o 2. No breach of the peace or unnecessary injury is done
o 3. Demand must first be made to owner/possessor
o 4. Demand was rejected
o 5. Abatement approved by district health officer and executed
Nuisance
1. Criminal prosecution
2. Civil action
3. Extrajudicial abatement
o Private nuisance only a person or small number of persons
1. Civil action
2. Extrajudicial abatement
X has a small house where he sells shabu and other drugs. X was
caught by the police. The police demolished the house for being a
80
(2) tradition
Occupation of animals
If the animal is wild a person becomes the
o
o
Donation
81
Requisites of donation:
o 1. Decrease or reduction in the patrimony of the donor
o 2. Increase of patrimony of the donee
o 3. Animus donandi or intent to make a donation
Classes of donation:
o 1. Donations inter vivos
Simple
pure liberality
Remunerative
A donation provides that it will take effect after the death of the
donor, that the donor will not dispose of it or take it away from the
donee, that he had beneficial ownership while he lived. Is it inter
Onerous
inter vivos. It is also clear that he parted with naked title, while
donation:
o In simple donation, considered not written
o In onerous donation, annul the donation (since governed by
indicates that the donor parted with ownership of the land prior
rules of contract)
Distinguish between inter vivos and mortis causa donations:
to his death.
Property is donated in a deed named donation inter vivos. It said
that the land donated shall be delivered immediately to X upon the
perfection of the donation, with all the fruits thereof, but title shall
Inter vivos
Mortis causa
only pass to the donee upon the donors death. What is this?
o Mortis causa: the fact that no title or ownership is conveyed
donors death
Title or ownership conveyed before
death of transferor
Generally irrevocable
Always revocable
82
his office
4. Those disqualified under wills apply as well:
descendant, or sibling
D. Physician, or other health officer who took
Oral
In same deed
consideration thereof
You dont have to be both principals
83
knowledge?
o Non-registration, although the donation of immovable is in a
o
o
of ratification. Effect?
o No effect. A void contract cannot be ratified. The contract is
settlement
o 3. No more than he may give or receive by will
ignoring claims of wife and children, except for a provision for their
84
fruits.
Once A dies, it is inofficious. It must be reduced to avoid
o 3. Inofficious donations
Revocation of donations:
o As a general rule, these are irrevocable. These cover
A. Birth
B. Adoption
C. Reappearance of child
2. Ingratitude:
o
o
event, etc.
3. Donee killed the donor
4. Donor died without knowing act
of ingratitude
5. Donor already instituted criminal
proceedings but died before filing
child
Cannot be renounced
Transmissible to LCs, ICs, or descendants
upon death of donor
died
2. Donor prevented from filing
action due to sickness, fortuitous
to ones heirs.
What are the exceptions to
intransmissibility?
o 1. Donor already brought action but
authority
2. Imputation of a crime involving moral turpitude
85
Prescription?
ownership.
What is transferred?
o The inheritance.
o Inheritance is defined in 776 as the transmissible rights and
o
complaint
Based on non-fulfillment of condition donee must return the
parents
Give an example of a transmissible obligation.
donor lives
SUCCESSION
General provisions
obligations of a person
Are there intransmissible rights and obligations?
Yes.
1. Purely personal;
2. Intransmissible by stipulation
No.
Yes.
itself is the mode. You do not need delivery of the thing to the
o
successors.
In due time, the successor acquires a right to possession of the
thing, which may be in the hands of someone else. But this is
86
division of estate.
So he can only sell his ideal or undivided share in the
Yes.
3. Heirs have a right to substitute their predecessor in an action
that survives.
Bonilla v. Barcena
Patrimonial right right to prosecute an action
Updates on the abovementioned jurisprudence:
o Lee v. RTC (423 SCRA 497)
An heir can sell his right/interest in property under
decedents heirs.
How to resolve: you can continue an action if you are
indisputably an heir.
What are the three kinds of succession?
o 1. Compulsory
o 2. Testamentary
o 3. Intestate
In absence or default of valid will
(781) is a WRONG provision. The heirs acquire rights to the
inheritance upon death. Any fruits/accruals after will indeed belong to
the heirs, but not through succession, but through accession discrete or
continua.
What is the importance of distinguishing between heirs and
legatees/devisees?
o This is an important distinction because of the rules on
preterition.
87
COMPULSORY SUCCESSION
Legitimes
(886) Legitime
o A part of the testators property
(Joaquin v. CA)
So he can gratuitously dispose?
Surviving spouse
Illegitimate children/descendants
What are the two principles?
o A) Exclusion and B) concurrence
o These two principles simultaneously operate to establish
o
of value.
Who are the compulsory heirs? (887)
o 1. LC and descendants
o 2. LPs and ascendants (in default of #1)
o 3. SS
o 4. ICs
Which are primary and which are secondary?
o Primary those who are never excluded
Legitimate children/descendants
o Secondary those who receive only in default of the primary
Legitimate parents/ascendants
Illegitimate parents
1 LC, 1 IC
1 LC, 2 IP
3 IC, 2 LP, SS
LC = ; IC =
LC =
LP = each; 3 IC = 1/12 each; SS =
2 IP; SS
2 AC; 1 LC; 1 IC
1 LC; 2 IC; SS
1/8
IP = 1/8 each; SS =
LC = 1/6 each; IC = 1/12
LC = ; SS = ; IC = 1/4 each, but
6 LC; 3 IC
5 IC; SS
1 AC; 2 LP; SS
3 LGP; SS
reduced to 1/8
LC = 1/12; IC = 1/24
SS = 1/3; IC = 1/15
AC = ; SS =1/4; LP = 0
1 LGP (one line) = ; 2 LGP (other
1 IC; SS
2 AC; 2 LP
3 LC; 2 IC; SS
line) = 1/8; SS =
IC = 1/3; SS =1/3
AC = each
LC = 1/6 each; IC = 1/12 each; SS =
2 AC; 1 LP; SS
1/6
AC = each; SS =
88
SS 1/3; IC 1/3
o
o
o
Now, she can concur, and is in fact always an heir. But her
mortis 1/3
SS 1/4; IP 1/4
They are the primary compulsory heir
The nearer exclude the more remote. So children exclude
o
o
grandchildren.
BUT the grandchildren can inherit if representation is proper
Predecease
Disinheritance
Incapacity/Unworthiness
N.B. If all the children renounce, then the grandchildren will all
position as a LC
biological parents?
intestate succession.
share is variable.
What kind of marriage is needed to become a SS?
Valid or voidable
What is the effect of legal separation?
1. SS inherits alone
upon marriage
Illegitimate Children or descendants
o
No more distinction between natural and spurious children.
o What if they concur with legitimate children?
LC.
What if they do not concur with legitimate children?
would only get usufructuary right over the property of the LC.
89
o
o
inheritance.
What is the mistake of the judge in Seangio?
preterited?
o Not always! [ex. there was no disposition in his favor]
X has two children, A and B. X made a will giving B of his estate,
and the other half to Ateneo. X did not give A anything by way of
2. legacy or devise
3. intestate succession
What is preterition?
o Total omission of a compulsory heir in the direct line from the
o
Does the fact that an heir is not mentioned in the will mean that he
is preterited?
o No, if the will does not dispose of the entire estate. (Seangio)
If someone dies intestate, can there be preterition?
o No.
Does the fact that an heir is mentioned in the will mean he is not
Preterition (854)
open to intestacy.
90
Disinheritance (915-923)
o
o
interdiction
What is the special requirement for the ground of refusal to give
maintenance
o See discussion below in unworthiness
Must there be conviction in Attempt against virtue?
o No.
What is giving cause for legal separation as ground to disinherit
a spouse imply?
o No need for decree of legal separation, because merely giving
ascendant
2. Adultery/concubinage with spouse of testator
3. Conviction of crime which carries with it penalty of civil
support?
o There must have been a prior demand, and the demand must
ground is enough
Contrast this with loss of parental authority as a ground
to disinherit a parent:
91
compulsory heirs)
No, if the disinherited heir is an ascendant.
N.B. representation does not apply to testamentary succession
Unworthiness (1032-1040)
(obviously).
What does representation cover?
there is need for final conviction for some, not for others, and one
requires exoneration.
First ground (actually three):
o 1. Abandonment of child
o 2. Inducement by parent for daughters to live a corrupt or
immoral life
o 3. Attempt against virtue of daughter
This article refers to unworthiness of compulsory heirs. Parents
who have abandoned their children. But what if the child is under
the authority of grandparents, will this apply?
o RFB thinks so. It should probably be ascendants who
any left.
Does it revive testamentary dispositions in a prior will?
abandon descendants.
Abandonment has no precise meaning. How do we understand it
here?
o
of fact.
What is the effect of reconciliation?
o It removes the disinheritance.
o Does he recover legitime?
abandonment?
92
No.
o What does attempt cover?
against chastity.
Are the grounds exclusive?
o Yup.
Do you need actual disinheritance?
o No. The law itself excludes the heir.
What is the extent of the disqualification?
o Total, like in disinheritance no compulsory, testamentary,
intestate
Is there representation here?
o Yes, in the same way as disinheritance.
How does one set aside unworthiness?
o 1. Written condonation
o 2. Execution by offended party of a will with knowledge of the
pardon.
When is capacity or incapacity determined?
o 1. In general, upon time of death of decedent
o 2. If institution is subject to a suspensive condition:
cause of unworthiness
Why is the code stricter in unworthiness than disinheritance?
o This is an inconsistency, because there are many grounds
disqualified heir
3. But for necessary expenses, regardless of GF or BF, there
received
What is the prescriptive period to declare incapacity and recover
property from the disqualified heir?
93
Cause for LS
D of child/des
D of parent/as
D of spouse
Unworthiness
Attempt against
Attempt against
Attempt against
Attempt against
life1
Accusation of
life
Accusation of
life
Accusation of
life
Accusation of
crime2
Adultery/conc.3
Force to change
crime
Adultery/conc.
Force to change
crime
crime
Adultery/conc.
Force to change
will
Refuse to
will
Refuse to
will
Refuse to
support
Maltreatment by
support
support
Force to change
Prevent from
making will or
revoking one
Falsification or
forgery of will
Representation
will
word/deed
Dishonorable life
Crime with civil
Definition of representation?
o Article 970.
o Comment on fiction of law?
interdiction
Abandoned,
Abandoned,
induced to
induced to
corrupt life,
corrupt life,
attempt v. virtue
Loss of P.A.
Attempt by one
attempt v. virtue
Loss of P.A.
parent against
life of other
all.
Comment on the term representation?
NEVER in ascending.
For intestacy
heirs?
representation.
What if there is renunciation by all collateral
adopted.
What is the rule on representation by illegitimate children? (iron
curtain)
o Illegitimate child of a legitimate child cannot represent the
latter.
o Illegitimate child of an illegitimate child can represent the latter.
o If the child is legitimate, he can always represent his parents.
What is the rule on shares of the succeeding representatives?
o Since they are only stepping into the shoes of the person
The rule changes when ALL, and not just some, of the
children renounce. The grandchildren will inherit per
capita.
What if all children predecease?
representation.
But if ALL of A, B, and C predecease (or are
Reserva troncal
95
2. Prepositus
3. Reservista
reservista. (Ex. F S M)
If same line (Ex. GF grandson F [same
line as grandfather, since he is the son of the
grandfather]), according to JBL, there is no
RT. According to Manresa and SanchezRoman, there is an RT.5
to be RT.
Solivio: there was just one transmission from the mother to the
son, by donation. When the son died, he had no ascendants at
all or descendants either. Because there was no other
ascendant, the second transmission could not happen. The
96
4. Reservatarios
o
o
condition
4. The right of expectancy is registrable
Dont these two rights of registration conflict with each
other?
97
to the origin.
This is not yet established by jurisprudence,
condition
4. The right of ownership is registrable
What is the right of the reservatarios? (Sienes)
o 1. Right of expectancy
o 2. Subject to a suspensive condition, that there will be
the property)?
benefited.
And then he may delegate to a third person: a) the
designation of persons, institutions, establishments
power.
What cannot be delegated?
reservistas?
o Reservista prepares inventory
o Right of reservatarios to annotate in case the reservista
non-textual)?
o 1. It must be in writing (textual requirement)
o 2. Executed in a language or dialect understood by the
subsequently
4. Total fortuitous loss of the property
5. Merger or confusion of rights
6. Prescription or adverse possession
testator(textual requirement)
Definitely.
TESTAMENTARY SUCCESSION
In general
98
evidence/evidence aliunde.
3. Testamentary capacity
1. Character of estate
infirm or ill.
o Is a cross allowed (Garcia v. Lacuesta)?
No, in general.
in the will
Must the signing always be at the left margin?
o No. It can be any margin.
o Why is there no requirement for marginal signing on the
last page?
mind
2. When the testator has been
end.
The testator must sign in the presence of the witnesses. The
witnesses must also sign in the presence of the testator and of one
testamentary capacity
When is there no presumption?
o 1. If the testator, 1 month or less
a will)
Who are the two classes of disqualified persons?
insanity
What is the presumption then?
99
No.
o What should the agent write?
It is not required.
Must the attestation clause be signed?
o Yes.
o By whom?
The witnesses.
o What about the testator?
dated anyway.
Who certifies?
publics impartiality.
What is the requirement if the testator is blind?
o Two readings by the notary public and by one of the attesting
o
witnesses.
Is this mandatory?
Yes.
number of witnesses.
But can a notary public be a witness?
witnesses.
Where should the witnesses sign the attestation?
o At the end of the attestation clause.
o Can they sign at the margin or elsewhere (beside)?
Why?
witnesses
3. That the witnesses signed the will and all the pages thereof
contents to him
Must the will or attestation clause mention compliance
with this mandatory requirement?
100
in the body.
Can you sign by a thumbmark, as in an attested will?
this.
813-4 dispositions after the signature
o Some commentators say that this implies that the signature
o
attestation clause, which needs three things (# of pages, fact that the
testator signed at the end in the presence of the witnesses, and that the
witnesses did the same in the presence of the testator and of one
another). How strict must this be in light of Art. 809?
o In the code itself, there is no clear rule about how liberal
o
internal contradiction.
Are joint wills allowed?
o No.
o But for aliens, if they execute their will abroad and their national
o
101
second will.
805?
o
o
o
o
o
o
will.
1. Of sound mind
2. At least 18 years old
3. Not blind, deaf, dumb
4. Able to read and write
5. Domiciled in the Philippines
6. Not convicted for falsification of document, perjury, or false
testimony
What do these qualifications establish?
Requisites?
The will is valid but the witness can succeed to the will
How many witnesses are needed for this provision to
voluminous
3. It must be clearly referred to in the will
4. It must be referred to in probate as that
document
So since it requires witnesses, can you not have
an incorporated document with holographic wills?
apply?
the Filipino.
What are the requisites to become a witness to a will executed in
signs.
Two modes of testamentary succession:
o 1. Institution of an heir
o 2. Institution of devisee or legatee
What is the permissible form of instituting a successor, whether
heir, devisee, or legatee?
102
the estate?
o Solidarily liable for loss or destruction of the thing devised or
shares.
This is different from intestacy, where whole, half, and
monetary equivalent.
B) If the testator wrongfully believed he owned the
thing, the disposition is void.
proportionately.
gratuitously or onerously.
C) If he knew he did not own it, but did not order for its
and devises, not compulsory heirs as 925 says. You cannot charge the
compulsory heir for the legacies and devises. Exception: indirect legacy
103
error
C) If the testator knew it did not belong to him, and the
or devise charged
Irrevocable
What is the rule on validity of generic legacies/devises?
o 1. Generic legacy valid even if no such movables exist in the
104
Irrevocable
Legacy of education, support, or periodical pension:
o A. Education
o
o
provides otherwise
Amount as fixed by the testator; secondarily, that
which the testator used to give when he was alive
in 911.
If the reason for reduction is something else, use Rule 950.
What other reasons could exist?
105
retro sale
3. Total loss before the testators death
Capacity to succeed:
o In fact, the basic rules are common to all kinds of succession
There is no exception here.)
Art 1025 The heir, legatee, or devisee must be living when the testator
dies. There is NO exception, contrary to what this provision suggests.
o Representation is not an exception because the representative
o
donations in 739
What if the disposition is for prayers and pious works for the
Substitutions (857-870)
dies.
1027 First 5 paragraphs are important because they enumerate
instances where one is incapacitated to succeed in testamentary
ministration
2. Relatives of priest/minister within 4th degree or his institution
3. Guardian, from ward before final accounts of guardianship
approved
106
1. Reciprocal
2. Compendious
It refers to relationship.
4. The first heir must have absolute obligation to preserve and
transmit
5. Both heirs are alive and capacitated at the death of the
o
o
o
testator
What is the tenure of the first heir?
o What is specified by the testator
o If not specified, it is the lifetime of the testator
Does the first heir have a right to alienate?
o NO. This rule is unlike the reserva troncal.
These all burdens in succession, especially since the testator has free
disposal of his property.
What are the types of conditions?
o Suspensive
o Resolutory
What are the special rules on suspensive conditions?
o An impossible condition (873) considered not imposed. The
o
o
corrupt.
When does a suspensive condition take effect?
o If both conditions exist: 1) the heir is alive when the testator
dies, 2) the heir is alive when the condition happens
What happens while waiting for the suspensive condition to
happen?
o Place the property under administration of
executor/administrator
What is the difference between a term and condition?
o A term is certain, a condition is not.
What are the two types of terms?
o Suspensive term
o Resolutory term
When does an institution based on a term vest?
o A disposition with a term vests upon the death of the testator,
unlike a conditional disposition (esp. suspensive) which only
vests upon the happening of the condition. Since a term is
certain to happen, it follows the general rule in 777 that it vests
upon death.
107
own successors.
What do you do as you wait for a suspensive term to arrive?
o Governed by 885. While you wait for the term to arrive, you
give it to the legal heirs (intestate heirs).
For resolutory terms?
After the testators death, you give it to the instituted heirs, and
when the term arrives, they turn it over to the legal heirs.
A condition suspends, but not obligates. A term obligates, but does not
suspend. A term does not delay the efficacy of the disposition, but it
places an obligation upon the instituted heir (even suspensive, since the
substitution?
o Substitution
In intestate disposition, what wins out, accretion or
representation?
o Representation, when proper
o So if the intestate decedent has three brothers (X, Y, and Z)
muciana
3. In case of a mode (882)
Accretion (1015-23)
earmarked.
2. One or more must predecease the testator, become
108
What are the three ways of revoking a will, whether total or partial?
o 1. By operation of law
beneficiary in a will)
Preterition
Where the testator disposes property that is given as
revoked)
2. Subsequent will/codicil
2. Testamentary capacity
subjective
2. It must be false
3. The testator must not know of its falsity
4. It must appear in the will that the testator is
the will
There is no substitute for probate.
Guevarra v. Guevarra, Seangio v. Reyes, Heirs of Lasam:
All lay down the rule that probate is mandatory.
109
of the will.
How does it become final?
o Just like any decision of court.
o Once it becomes final, it becomes res judicata it becomes
INTESTATE SUCCESSION
etc.
o 4. It is genuine and not forged
For probate of holographic wills, what must one remember?
o 1. You have to present the will itself (Gan v. Yap)
In general
Aranza)
2. If the holographic will is contested as probate, three
witnesses who can identify the will and attest to its validity must
be presented.
Is this mandatory?
Substantive validity?
o Time law as of time of death
o Place law of citizenship of decedent
Formal validity?
o There are always five choices:
o 1. Law of citizenship
o 2. Philippine law
o 3. Law of residence
o 4. Law of place of execution
o 5. Law of domicile
only directory
Godoy: Says that it is mandatory, although it
is criticized
When is it deemed contested?
If it is challenged as a forgery. If it is
110
And so on
Rule of preference of lines?
o Direct excludes collaterals
o As a general rule, descending excludes ascending
degree
2. In collateral relationships, full blood and half-blood
distinction
Siblings
3. Representation
See the combinations in the book.
Can the adopted succeed to his biological parents?
o This is the same problem as in compulsory succession so see
the discussion above.
Combinations 2 and 4 in the book are dangerous, so take note that
here (children and illegitimate children) each legitimate child gets
double what the illegitimate children will get. What is the usual
pitfall?
o If you observe the 2:1 ratio intestacy, remember that you still
illegitimate descendants
Is there representation in the direct line?
1. Preference of lines
111
approval.
What is the retroactivity rule?
o Acceptance as if the property passed at the moment of death
o
portion.
Give an example of the difference between total and partial
intestacy.
o Full intestacy:
Legitimes to LC, to SS
(Art 777)
Renunciation as if the renouncer never owned or possessed
the SS)
Partial intestacy: Ex. I gave 1/8 of my estate to Ateneo.
Note that the legitimes are to LC, to SS.
the SS.
Acceptance and repudiation are always free acts. A person may always
indiscriminately?
no acceptance
What about a gratuitous disposition to all co-heirs
but in different portions?
property to pay the creditors, the creditors can compel the heir
acceptance
112
inheritance?
o The right passes on to his heirs
What if a renouncing person is both a testamentary and interstate
heir?
o
o
1. Vitiated consent
o
o
goes to whom.
o The heirs co-own the mass of properties.
What are the three ways by which collation is understood?
o 1. Computation simple accounting process where value of
donation inter vivos is added to the available assets
2. Imputation donations inter vivos by decedent are charged
impractical to calculate)
What about expenses for professional,
vocational, or other career expenses of
the child, as given by the parents?
o Charged against the free portion,
legitimes
unless:
1. Provided otherwise
2. Inofficious
If imputable (the two above), deduct
what the parents would have spent
on the child had he stayed home
and loafed
113
the dispositions?
o Reduce testamentary dispositions
o First to be reduced are the non preferred testamentary
donated?
the donee.
What if the recipients of the donations are the
portion
What if the recipients of the donations are
strangers?
those donations?
1. Will
dispositions
After reducing them to zero, what if the legitimes are still
impaired?
o Reduce the donations to strangers or donations to compulsory
compulsory heirs?
If he died with a will and the free portion cannot accommodate all
114
disposition
What is partition to keep an enterprise intact?
property
Who can the decedent designate as a mandatary?
o One who is not a co-heir can be chosen. He is designated to
of partnership
2. Court finds compelling reasons
for partition
B. Co-heirs agree on indivision for period not
warranty
3. Supervening events causing loss or diminution in
exceeding 20 years
conditional heir.
What if an heir sells his undivided share prior to partition to a
value
5. Waiver
What are the causes to annul or rescind a partition?
o Same as causes for voidable and rescissible contracts
o N.B. the special provision on lesion in partition, however,
provides that it must be at least rather than the usual more
stranger?
o The other heirs may exercise right to redemption within one
than value.
When is the partition not subject to rescission due to
lesion?
himself, except:
115
Before: you enter into a K and the creditor can pursue all your
intent
What are the options of the co-heir who is sued for
rescission?
1. Have a re-partition
OBLIGATIONS
minimum wage.
Ex. Those that violate environmental considerations,
paid
5. Unity in modern legislation
o This is especially important in global commerce
o Ex. Bills of Lading, Trust Receipts, Intellectual Property, etc.
Etc.
4. Weakening of the principle that liability results from responsibility
o In general, under the law, you are only liable if you are
o
property
as to the money)
116
o 3. Object
o 4. Vinculum juris
For both the active and passive subject, what is required?
o They must be determined or determinable.
What are the types of determined/determinable subjects?
o 1. Obligations where subjects are completely and absolutely
prestation
NCC.
What are the requisites for the prestation?
1. Licit
117
Liberality.
What is the causa for a quasi-delict?
the obligation.
Sources of obligations
fide).
What is the general rule for obligations arising from delicts
(crimes)?
o If you commit a crime, you are liable both criminally and civilly,
offer here.
Ex. X left his important papers inside a cab. X
is a closed list.
But is it, really? Or should it, really?
o Many commentators believe it is not exclusive.
What are the other obligations?
o Public offer is a sixth source of obligation, for instance
118
There is some basis for this, because Art. 2176 says that the
circle of contract is always within the bigger circle of quasidelict). So if you sue under quasi-delict, you are disregarding
solidarily liable
Do you have to prove negligence when you sue under quasi-delict?
o Yes, you have to prove negligence of the bus driver. It is not
presumed.
Do you also have to prove the negligence of the bus company?
o Yes, in the selection and supervision of the bus driver. (Culpa
o
2180.
This is actually a wrong term because vicarious means you are
presumptions
In a situation where damage or injury is caused to a party, and
there is a contract between him and the person who caused the
119
accessory obligations?
o Primary obligations give what must be given
o Accessory obligations:
performance
Rules on improvement, deterioration, and loss
o When do these rules apply requisites?
another standard
If the thing is damaged, debtor is liable for
damages
2. Account and deliver to creditor the fruits of the thing
As against A, yes.
But as against C, no
because Bs right is merely
personal, not real. He can
Extinguish obligation
Pay damages
What are the rules on deterioration?
Creditor benefits
3. To deliver accessories
What are the creditors remedies for an obligation to give a
property
(580) he may set-off the
improvements he made against any
determinate thing?
o 1. Specific performance
o 2. Equivalent performance damages
120
1. Specific performance
2. Substitute performance
Damages, by itself
1. Substitute performance
2. Equivalent performance
What are the creditors remedies if the obligation is not to do?
o 1. Substitute performance
o 2. Equivalent performance
Exclusive or in addition
I. Culpable (1170)
1. Malice (fraud)
2. Negligence
3. Delay
o II. Non-culpable
o
o
SPECIFIC
EQUIVALENT
SUBSTITUTE
PERFORMANC
PERFORMANC
PERFORMANC
o
o
Yes
Yes
No
thing
Determinable
Yes
Yes
Yes
thing
To do
Yes.
Very personal
Not very
No
No
Yes
Yes
No
Yes
personal
Not to do
No
Yes
Yes
NEGLIGENCE:
Irregularity in performance
To give
Determinate
121
attendant circumstances.
What are the kinds of negligence?
Simple
prudent businessman.)
Is waiver of future negligence allowed?
1. Solvendi
Delay in performance
2. Accipiendi
to demand still.
2. Time is of the essence.
(particularly, consignation).
3. Compensatio morae
solvendi)
What is mora solvendi?
circumstances.
o 3. Demand is useless
N.B. under the law on partnership, a promise
to make contributions on a particular date,
and then failing to do so, would make the
122
Other provisions
o
o
avoid
3. Impossible for the debtor to fulfill his obligation in
paid
o N.B. these are rebuttable presumptions
What are the four types by which creditors can satisfy their
claims?
o 1. Levy and execution on debtors non-exempt property
o 2. Accion subrogatoria
above.
What is compensatio morae?
o If both sides are in delay, these cancel out.
o But when one party complies or is ready to comply with his
assumption of risk
o Ex. insurance
Are defective brakes, blown tires, and other similar
problems fortuitous events?
debtors debtor
Requisites?
negligence)
4. Insufficiency of assets of debtor to satisfy
creditors credit
123
Requisites?
persons
o
o
independent contractor)
3. Principal against subagent (skip agent)
4. Vendor-a-retro against transferee of
vendee (skip vendee)
Types of obligations
ORIGINAL impossibility.
Classes of obligations?
o Pure
o Conditional
124
potestative conditions.
Ex. X sells Y a lot, if Y builds a road from the lot to the
the effect?
o The condition is deemed to have arisen in year 2000.
o But not fruits.
2000.
What is the right of the creditor in the mean time?
rights.
retroactivity
Resolution in 1191 what is the effect?
o Mutual restitution. They are returned to status quo ante.
1191
o Compare rescission and resolution:
Rescission subsidiary
Elements:
o
o
usufruct
125
action
5. Effect: mutual restitution
o
o
interest
3. When the period is exclusively for the benefit of the creditor
4. When the debtor, aware that the period has not yet arrived,
insist on pre-payment
If it is for the benefit of the debtor:
effectively waived.
What if it was made out of mistake?
been intended
2. If the period entirely depends upon the will of the debtor
Two requisites for the application of this article?
1. Parties did not fix the period but from the nature of
the circumstances, it can be inferred that the period
was intended by them
recovered.
Who is entitled to the fruits received from the constitution of the
pays anyway
When is a term for the benefit of the debtor? For the creditor?
o Presumption: a term is beneficial for both
o What is the consequence of this?
arrived yet.
Exception: if a separate action for performance would be only
dilatory (i.e. whatever the period was, it already has passed)
126
Exceptions:
o
o
promised
3. By his own acts, he impaired said guarantees/securities, and
o
o
(involuntary servitude)
2. 1197, par. 2 (above): Period entirely depends on the will of
the debtor
3. 1191, par. 3
4. 1687
allow him to do so
it further?
o Yes, it is contractual freedom. It is a novation there has to be
127
for acceptance.
2. Because once the choice is
fortuitous event?
fault?
fault?
Obligation is extinguished
damages
If all lost due to fortuitous event?
Obligation extinguished
Obligation extinguished
What is a facultative obligation?
o There is only one obligation agreed upon, but the debtor has
creditors acts?
o
o
others.
In facultative, if the principal obligation is impossible
obligation?
Obligation is extinguished
Implications when creditor has right of choice?
o 1. Some lost
for damages.
What if the substitute prestation is lost due to the debtors
fault, and then before the due date, the main prestation is
lost due to fortuitous event?
128
debt
What is a solitary obligation? (or joint and several, in solidum, or
solidaria)
o Debtors can be held liable for the entire part of the debt
o Or the creditors can demand the entire part of the debt
o What does individually and jointly mean?
Solidary
o Where there are several debtors and the obligation
Solidary
What is the essential nature of jointness?
o Active joint (many creditors, one debtor) You have as many
amount
Commentary: if the debtor paid the share of the wrong creditor,
this is fine. The demanding creditor can still recover the whole
academic.
What is the conflict between 1212 and 1215?
o According to 1212, in the case of active solidarity, the solidary
o
debt
Ex. (A B and C) are soldiary creditors, X is the debtor. Can
B remit Xs debt?
129
shares.
A remits one of the solidary debtors shares.
o Can A go against one of the other debtors for the
remaining amount?
Yes.
Can A go against the debtor whose share he remitted for
anyway.
One of the other solidary debtors becomes insolvent. Will
the debtor whose share was remitted share in covering for
the insolvent debtors share?
as to him)
Person as to a co-debtor partial (ex. when the co-debtor
o
o
1. Subsidiary
130
demanded
2. Exclusive
demanded?
o 1. Express stipulation
o 2. Debtor refuses to pay the penalty
o 3. Debtor is guilty of fraud in the
o
o
o
o
malice)
Pamintuan: There was an obligation with a penalty clause.
PAYMENT
Extinguishment of obligations
5. Mutual desistance/dissent
Ex. partnership
7. Change of civil status
8. Rebus sic stantibus
9. [spaced out]
10. Judicial insolvency
131
I. As to prestation
Identity
Integrity
Indivisibility
II. As to parties
Payer
Payee
III. As to time/place
o Special forms of payment:
A. Dacion en pago
B. Imputacion
C. Cession
D. Consignation
Requisites of payment?
o For the prestation:
1. Identity
2. Integrity
3. Indivisibility
what is inferior.
What is the special rule on money debts?
o Made in the currency stipulated
o If not possible, whatever is legal tender in the Philippines
o There was a time when you cannot stipulate currency other
o
o
only provisional.
X issued a check to Y or order. Y endorsed it to Z. Z lets it go
again.
Rule on inflation or deflation?
o It must be extraordinary there must be a declaration from the
Bangko Sentral.
What are the exceptions to the requirement of identity?
o 1. Dacion en pago
o 2. Novation
What does integrity mean?
o One must deliver the whole prestation
o Exceptions to integrity?
performance
3. Cases when the law itself provides for divisibility:
in part (1248)
B. Joint divisible obligation (you have as
many obligations as creditors divided by
132
debtors)
C. Solidary obligation where the debtors are
left
E. Work is to be delivered partially
performance
o This is an equity measure
creditors rights
2. Creditor ratifies payment
to receive payment
5. Anyone in possession of the credit
o Ex. NIL
What if the debt has been garnished?
a donation.
What if it is without the debtors consent?
(ex. guarantor)
Who can the payor be with the payees consent?
Anyone.
What is effect of payment by a third person, if accepted?
1. Creditor/obligee
3. Agent
demand
133
substitute prestation
2. Imputacion (application of payment)
o What is it?
Designation of debt which is being paid by the debtor
who has several debts of the same kind to the creditor
o
o
who is paid
Give an example.
X owes Y four debts: 10k, 20k, 30k, 40k. They are all
due. X remits 100k to Y. No need to apply the rules
134
on imputacion.
X remits 90k to Y. In this case, this is less than what
Apply proportionally to all (5)
What makes imputacion a special form of payment?
payment
Requisites?
o
o
Yes.
Does ownership over the thing pass to the creditors?
transfers.
What is the extent of extinguishment of the debts?
extinguished.
Why is it a special form of payment?
Voluntary. It is extra-judicial.
Insolvency Law)
4. Consignation
o N.B. Tender of payment on consignation is not the correct
o
o
o
term
What is this?
refused
Or there exist circumstances that make a
parties
in place of payment
2. Creditor incapacitated during time of payment
3. When without just cause, he refuses to give a
receipt
collect
135
impossible.
What do all of these presuppose?
o That when the obligation was entered into, the obligation was
o
burden
Other view (Romanic view) Y still has to pay the money
burden
Exceptions:
o 1504 sales of goods: just look at the provisions
o 1655 destruction of the thing leased
o 1717 contract for a piece of work, where the contractor
furnishes the material
What is another mode of extinguishment hidden in the folds of this
provision?
o Rebus sic stantibus When the services become so difficult as
obligor is excused
Contracts which have stipulations on successive performances
begin with.
In a reciprocal obligation, one of the prestations is lost under
136
performance
You do not need to invoke rebus sic
stantibus
3. The event was not due to the act of any of the
parties
presumption above?
CONDONATION/REMISSION
MERGER/CONFUSION
What is this?
o Act of liberality wherein without receiving any equivalent, the
person
Requisites?
o 1. Takes place between the creditor and the principal debtor
o 2. The very same obligation is involved
What is the most common cause of merger?
o Intestate succession, where you inherit your own debt/credit.
X receives the credit, so there is confusion.
Y has a debt to X. The debt is guaranteed by Z. X assigns the debt
to Z. Did remission happen?
o No. Z is not the principal debtor, he was just a guarantor.
o The guaranty is extinguished, and Z can go after Y.
as to form
If it is an implied remission, and thus not governed by any form.
COMPENSATION/SET-OFF
What is this?
o When the debtor and the creditor in the obligation is the same
donation
What is the form?
o If it is express remission, it must follow the rules on donations
o
137
What is this?
o Concurrent amount of two persons who in their own right are
reciprocal debtors and creditors of each other
How similar is this to merger?
o There are at least two debts in both, but in merger, it is
concentrated in one person. In compensation, in two persons.
What are the kinds of compensation?
o 1. Legal compensation (1279)
In any other case, when both debts fall due, there is automatic
(READ 1287-8)
3. Conventional/contractual compensation
as principals
Correct?
credit 2?
o Yes, as long as credit 2 existed by
same kind/quality
assignment.
2. The assignment was with Ys knowledge, but
consumable
o 3. The two debts are due
o 4. They be liquidated and demandable
1. Deposit
138
2. Commodatum
3. Support
1288 one of the debts arises from civil liability from a crime
NOVATION
Includes voidable
o 2. Agreement by the parties to the new obligation
o 3. Extinguishment of the old obligation
Expromission
Delegacion
o 2. Objective/real novation
Yes.
Consequence?
139
are all required. The initiative comes from the old debtor.
Delegatario creditor
Yes.
Consequence?
No. Just the old creditor and the new creditor. The
notified.
When the principal obligation is extinguished, are the accessory
extinguished.
Exception?
CONTRACTS
pour autrui)
What is problem, as to subrogation?
and debtor
Definition of contract?
o Meeting of the minds between two or more parties
o Can one contract with oneself?
debtor
Assignment doesnt extinguish the old
obligation and create a new one; it is just a
140
1. Consent
2. Subject matter
3. Cause
B. Natural
automatically
fitness, etc.)
Ex. Right to resolve in reciprocal contracts
C. Accidental
contract
Classification of contracts?
o A. Degree of dependence
1. Preparatory
less diligence
G. According to risk
1. Commutative
2. Aleatory
Contract of risk/chance/hazard
o Ex. buying a lotto ticket
o H. According to name
1. Nominate
2. Innominate
agency)
2. Principal
Complete in themselves
3. Accessory
1. Consensual
2. Real
1. Transfer of ownership
2. Conveyance of use
3. Rendition of service
D. According to subject matter
1. Involving things
2. To render service
E. According to the nature of the obligation produced
1. Bilateral
2. Unilateral
Ex. commodatum
F. According to cause
1. Onerous
2. Gratuitous/lucrative
Implication?
property
o Ex. deposit, pledge, commodatum
3. Formal
141
want
This principle, however yields to various restrictions:
1. Law
2. Public policy
3. Public order
4. Morals
5. Good customs
What is the rule on usury?
o Its now not a crime anymore.
o The only limit is that it is not unconscionable
o When is it unconscionable?
7%/month is valid
Latest Macalinaw v. BPI: Interest rate of the credit
card is 3%/month (36%/annum). HELD: Any interest
of 3%/month and above is invalid, and will be reduced
to 1%.
What is mutuality of contracts?
o The K must bind both contracting parties. The legal tie must
o
2. Accion pauliana
3. Accion directa
4. Contracts involving real rights
o
o
be mutual.
What about contracts with escalation clause (adjustment
of interest)?
potestative)
What is relativity of contracts?
o Acts between two persons cannot affect, positively or
o
contract
What if the contract is transmissible?
assignees, or successors-in-interest
When do contracts affect third parties?
142
o
o
o
break it.
What if one enters into a contract in the name of another without
has no effect.
X made an offer in Davao on Feb 1, through mail to Y, who
received it Feb 5. Y accepted the offer Feb 5 through mail
Consent
If it is qualified, it is a counter-offer
prevails?
separate consideration.
Give an example.
143
period is done?
withdrawal?
o No. There is no separate option
Specific performance.
what is Bs remedy?
o Recover damages from S.
o He cannot sue for specific
performance because X is an
innocent purchaser.
Differentiate an option contract from the Right of First Refusal
(RFR):
o RFR is the right to have first opportunity to purchase, or the
estoppel.
2. Insane or demented persons, and illiterate deaf-mutes
lucid interval
What are the situations where there is vitiation of consent?
o 1. Mistake
of the contract
2. Conditions which principally moved either
or both parties to enter into the contract
144
consent
2. Threat is unjust and unlawful
o What if the threatened act is
No annulment.
Compare with dolo incidente?
pregnant?
When there is no
connection between the
merely damages
What about dolus bonus?
damages
(Usual exaggerations in trade, when the
2. Fraud
3. Violence
Requisites of violence?
Requisites?
you did).
3. Threat is real and serious
4. Threat produces a well-grounded fear that
145
guidance).
What is the effect of violence if perpetrated by a third person (Art.
1336)?
o It still makes it voidable. The contract is still voidable even if
agreement
contract?
Extinguishes the obligation
4. It must be determinate as to its kind and determinable as to
Causa
bound
What is the effect?
quantity
3. It must be possible
in potency
2. It must be licit
146
Form
which:
be registered
Can one party require the other to follow the correct form?
rescinded
When is it voidable?
o Defect in consent in one of the parties
When is it void?
o Lack of requisites
Defective contracts
writing
4. Partnership where real property is contributed
5. Interests in mutuum
Rescissible
147
What is rescission?
o
o
action pauliana
4. The object of the contract must not have passed to an
nothing to return
Voidable contract
Is there lesion?
o Yes.
can be no rescission.
2. Same, but for representatives of absentees
3. Disposition in favor of third person in fraud of creditors
148
purpose
heirs, or subsidiaries
What are the requisites of confirmation?
o 1. Contract is voidable
o 2. Confirmation made with knowledge of voidability
o 3. The cause for voidabilty has been removed
Becomes valid
3. Falling under the Statute of frauds
defective
When will action for annulment not prosper?
o 1. If it has been confirmed
o 2. Prescription
o 3. Loss of the thing due to fraud or fault of person with right to
institute proceedings
o 4. Estoppel
1400 and 1401 In a voidable contract, upon annulment, there
miscarriage of others
Are there any instances when the duty of mutual restitution is not
present?
o The thing is lost due to defendants fault or fraud
P500 or more
loss, interest
What if it is lost fortuitously?
Action is extinguished
What if it is lost fortuitously?
parol evidence
What are the rules re: Statute of frauds?
o 1. Only applies to actions which are for specific performance or
o
breach
2. Does not make void the contracts falling under the
enumeration if not in writing. It just bars action for specific
of goods
E. Agreement for leasing for period longer than 1 year
Unenforceable
performance or breach
3. Applies only to executory, and not executed contracts in
whole or in part
It becomes voidable
either side
149
Void
order
o 5. Right to set-up defense of nullity cannot be waived
What are the special instances of void contracts?
o 1490, 1491 ex. contract between husband and wife
What is the pari delicto rule (1411-2)?
o It literally means in equal fault.
If the act constitutes a criminal offense, its a void contract which
happens to constitute a criminal offense. If they are in pari delicto, there
What is it?
o No force and effect, as if never entered into
o Never validated, either by time or ratification
See enumeration in 1409
o See #3 it says those whose cause or object did not exist at
o
o
o
o
o
PO
2. Absolutely simulated
3. Cause or object could not exist at the time of the transaction
4. Object is outside commerce of men
5. Contemplates an impossible service
6. Intent of the parties relative to the principal object of the
o
o
o
o
ipso jure
paid
5. Payment of price beyond maximum price allowed by law for
a commodity
150
LAND TITLES
o
o
C. Existing:
registration.
o Such as?
1. Possession
2. Succession
3. Donation
4. Accretion
5. Sale
Of what?
decree of title
Can a counter-claim be considered a direct attack
on the title?
domain
What if the land is not alienable (ex. forest
or park reservation)?
o It cannot be registered. The
151
o
o
Private lands
No.
What is the relationship of A.D. registration with existing
property rights?
law
Who can register under RA 8371 (IPRA)?
o Individual members of IP communities, as to ancestral lands
agreement
Extractions must be used to facilitate
development and improvement of ancestral
community
Which lands are treated as alienable and
disposable agricultural lands?
survey.
Is this communal ownership the same as co-
domains
Can a corporation register public land?
o No. It can only lease public lands.
o But can a corporation acquire private land?
farming purposes
152
o
o
of an owner
If it is not held since June 12, 1945, then what is required
apart from adverse possession for the proper period?
PEA)
The general rule that the grant of patent or certificate of title
makes alienable land of the public domain automatically
become private land does not apply to government units and
o 1. Military reservations
o 2. Other reservations
o [previously titled]
o 1. Previously titled lands
What is the process of land registration?
o 1. Survey
YES.
o 2. File application for registration
Where?
What to identify?
1. Basis of ownership
2. Identity of Land
3. Adjacent owners
4. Occupants/tenants
5. Encumbrances
o 3. Set date of initial hearing
o 4. Publication/posting
When?
On or before hearing
6. Otherwise, court issues order of general default
153
What is checked?
1. Improvements
2. Lot owners
3. Adjacent owners
2. Proof of ownership
Rebuttal evidence
9. Decision
1. In favor of applicant
2. In favor of oppositor/s
o
o
What grounds?
o FAME
decision
B. When a decree has been issued
What grounds?
o Deprivation of dominical rights
ownership
10. Court issues order for Decree
11. Issuance of Decree
decree
Exception?
o When there is an innocent
154
certificate of title
2. Action for reconveyance
Ground?
breach of trust
Exception?
o When there is an IPV
o What is the remedy then?
4 years
When can it be filed?
o 1. Within 4 years of discovery of
fraudulent deed
2. Within 10 years from breach of
Torrens system
How many copies of the certificate?
decree?
Ejectment suit
What is a certificate of title?
o It is evidence of title, that the land is registered under the
o
persons claiming.
Those claiming are merely compelled to go to court to make a
Official Gazette
express trust
3. Action for damages
deprived
o 3. Reconveyance is not possible
o 4. Action filed within 4 years
What is the effect of a final decision with publication?
o It binds all parties in rem (binds the whole world)
o How can oppositors and squatters who entered before the
155
bulletin board
Copy sent to mayor, barangay captain, and
Sanggunian
Persons claiming interest inform the geodetic
Publication
Mailing
Posting
4. Answer to petition filed by claimant
1. Identity of claimant
1. Judgment of ownership
o Usual remedies allowed
o If no appeal performed, court orders
titles?
the true owner, still has his TCT copy. Does Z have a right
through the mortgage?
1. Amendments of CT
o When can amendment be done summarily?
passes?
156
that property
What is specially required in the notice?
was acquired
When is a notice of adverse claim effective?
appropriation
Chain of title
pays fees
Example of voluntary transactions?
Can the buyer have title even if the seller does not?
o Yes, on certain situations. This is an exception to the civil law
doctrine that the stream cannot be higher than the source.
In general, what is the effect of a forged deed?
o It is a nullity and cannot serve as just title.
Situation 1: X is the registered owner of TCT 12345. X goes to the
Yes.
o X returns from the US and learns of the sale. Can X
one.
How long is the life of an adverse claim?
recover from Z?
No.
What is Xs remedy?
157
mortgage.
Situation 2: X is the registered owner of TCT 12345. Y
misrepresents to Z that he is X and sells the land to Z. Z gets title
perfection
What are the kinds of Loan?
o 1. Commodatum (hiram)
TCT 12345.
o Does Z have a valid title?
Z.
Situation 3: Y forges the deed of sale but does not register it to get
a new title. Y shows it to Z, and Z buys. Y makes deed of title in
favor of Z.
o Can X recover the property from Z?
CREDIT TRANSACTIONS
Commodatum
Mutuum
SM is non-consumable
Ownership retained by bailor
Essentially gratuitous
Return same thing
SM is consumable
Ownership transferred to bailee
Gratuitous or onerous
Pay same amount or same
kind/quality
Personal property only
Loan for consumption
possession
Right to demand return of the thing
expiration of term
Loss shouldered by bailor
Loan Contracts
158
Commodatum
Lease
Real contract
Consensual contract
SM is non-consumable thing
SM can be even work or service
Essentially gratuitous
Onerous
Usufruct
By law or by contract
succession, or prescription
Real right to the fruits of anothers
anothers property
Essentially gratuitous
Real contract
Bailee only acquires use of thing, but
property
May be onerous
Consensual contract
Usufructuary acquires right to both
not fruits
Consumable goods may be the SM
money
Its a lease.
o 2. Purpose: temporary use of the thing loaned
inherited.
Cf. for usufruct, this is not the rule because
usufruct is a real right over the property. It
vest?
interest
6. Personal contract
mere exhibition
for consumption.
5. Bailor need not be the owner, as long as he has possessory
attaches.
7. Bailee cannot lend or lease the SM of the contract to a third
person
prevails.
3. Use is limited to the thing, but not the fruits
Exception?
If stipulated otherwise
4. SM is generally non-consumables unless the purpose of the
No.
159
stipulated
3. Thing was delivered with appraisal of its
value
o Unless stipulated otherwise
4. Balee lent the thing to a third person
thing loaned
Contrary stipulation
4. Pay damages to bailee for known hidden flaws in the thing
loaned
What are the characteristics of mutuum?
o 1. Borrower acquires ownership of the thing and can dispose of
o
it
2. If the thing loaned is money, it must be in legal tender and in
case of extraordinary inflation or deflation, basis of payment
returned?
commodatum
2. Precarium:
o A. Duration not stipulated
o B. Use or purpose not stipulated
o C. Use of thing merely tolerated by
same kind/quality
Distinguish between mutuum and lease:
Mutuum
Lease
Anything
Ownership is retained by lessor
Relationship is landlord-tenant or
lessor-lessee
the bailor
160
stipulation of interest
2. Interest due shall earned interest from the
interest)
2. Usury Law has been suspended
profits, etc.
But it becomes 12% from the time when
demand
But when the demand is established with
reasonable certainty, the interest begins to
run from when judicial or extrajudicial claim
contracts.
Can a debtor be made liable for both stipulated monthly
Yes.
Can there be compounding of the penalty or
Deposit
Exceptions?
1. Contrary stipulation
U)
6%/month (72% per annum) is E and U
3%/month (36% per annum) reduced to 1%/month
161
compensate depositary)
Distinguish deposit from mutuum.
Deposit
Mutuum
Purpose is safekeeping
Depositor can demand return at will
SM is movables (extra-judicial) and
Purpose is consumption of SM
Lender must wait for period to expire
SM is money or consumable thing
immovables (judicial)
Deposit
Commodatum
Purpose is safekeeping
May be gratuitous
Judicial
By order of court
SM may be immovable or movables
Purpose is to secure or protect
Essentially gratuitous
Return upon demand by depositor
owners right
Always onerous
Thing delivered only upon court
seal/lock is broken
When can the depositary open the thing
delivered)
2. In case of necessity
2. Liable for loss if through fault or negligence
o
o
order
Voluntary
necessary
Distinguish between judicial and extra-judicial deposits.
Extra-judicial
unfit
5. Notify the depositor and wait for decision if he will change
the way or manner of deposit
Exception?
locked or sealed?
162
Yes.
8. Not to make use of the thing, otherwise, liable for damages.
Exceptions?
It becomes commodatum
What if it is money or consumable thing?
It becomes mutuum
The depositor
When must the thing be returned?
o Generally, upon demand or at will, regardless of period
o
deposit
When is the depositary liable even if loss is due to
stipulated
Exceptions?
possession
2. Depositary was notified of the opposition of a third
(Requisites)?
o 1. The deposit must be gratuitous
o 2. Justifiable reasons exist
What are the rules on alteration by the depositarys heir (i.e. heir of
the depositary sold the thing deposited)?
o 1. If in GF, the heir may either return the price he received or
fortuitous event?
1. Stipulated
3. Delays in return
safekeeping?
o Then it becomes an irregular
o
assign his right of action against the buyer in case the price
163
deposited money?
return the SM
When does the obligation of a bank to pay interest
on a deposit cease?
o
o
gratuitous
2. Pay for losses incurred due to character of the thing
government
2. Made during a calamity
3. By travelers, in hotels and inns
deposited
depositors advice
Can the depositary retain the thing deposited in pledge
until full payment of what is due him by reason of deposit?
Yes, he may.
concur above]
2. Loss is caused by robber or thief acting
servants/visitors
3. Loss due to character of the things
from liability?
supplies?
164
Yes.
See the usual rule on deposits, with which
this is consistent.
not pay.
deposits
first?
in itself.
Is there need to demand the principal to pay first?
Guaranty
Suretyship
G is secondarily liable
to benefit of excussion
S assumes liability as a regular party
principal obligation
receive?
o No. The surety is bound by the same consideration that makes
to the contract
or notice of default.
2. Guarantor promises to pay the principals debt if the principal
against Z.
H and W are spouses. H signed a suretyship agreement to cover
for the liabilities of XYZ corp. Can the conjugal partnership be
made liable when XYZ defaults?
o No. This act did not redound to the benefit of the partnership
165
Contrary stipulation
2. Accessory contract
[nature of obligation]
4. Suretyship
5. He is a judicial bondsman and sub-surety
6. Pledge or mortgage has been given by the G as
special security
[debtor clearly insolvent]
7. Debtor is insolvent
8. Presumed that execution of debtors property will
Compensated sureties
What are the qualifications of a guarantor?
o 1. Possesses integrity
o 2. Capacity to bind himself
o 3. Sufficient property to answer for obligation
o What if the creditor required and stipulated a specific
released
3. If there are several guarantors and only one debtor, the
guarantors are entitled to benefit of division. Their liability is
joint.
place
o
of agreement.
What are the effects of guaranty between the guarantor and
creditor?
o 1. Guarantor has right to benefit of excussion
o Exceptions?
[waiver]
involving dishonesty
o B. Becomes insolvent
When can a guarantor who paid the entire debt
seek reimbursement from co-guarantors?
Exceptions?
1. Solidarity
insolvent
What is a continuing guaranty or suretyship?
166
1. Amount of debt
abscond
[Insolvency]
3. Insolvency of debtor
4. Debtor is in imminent danger of insolvency
[Expiration of period, etc.]
5. Debtor bound himself to relieve him from the
3. Waiver
Can the guarantor demand more than what he has
acceptance is needed
o In any case, payment is valid as to
expired
6. Debt has become demandable because period for
paid?
No.
B. Guarantor has right to be subrogated against the debtor to
demanded of him
4. Damages, if due
What are the exceptions to indemnity rule?
167
o
o
2. Accessory contract
3. Unilateral contract
extensions?
the guaranty.
Does the creditors neglect to immediately sue the
the guarantor.
4. If there can be no subrogation because of the fault of the
principal obligation
X borrowed 400K from Y, pledging shares of stock worth 800K to
value of the stocks to 100K. Can Y demand X surrender other
shares worth 700K?
o No. There is no showing the fall in value was due to Xs fault.
a mortgage
What if the guarantors are solidary?
Same effect.
solidary.
Pledge
What is a pledge?
o It is a contract by virtue of which the debtor delivers to the
creditor or third person a movable or document evincing
default?
creditor
principal obligation
Can the pledgee keep the thing for himself after
the obligation.
And more importantly, the right of a pledgee is to just sell the
incorporeal rights
o Purpose is to secure a principal obligation
Characteristics of pledge?
o 1. Real contract thing must be delivered
168
pledge)?
authorized to do so
4. Thing pledged is delivered to the creditor or third person by
REM
Movable property
Delivery of object pledged
Pledge not valid against third
Immovable property
Delivery of the thing NOT necessary
REM not valid against third persons
if not registered
o
o
to do this.
Can the pledgee use the thing pledged?
is transferred
What happens then?
No.
What is the obligation of the pledgee?
o Take care of the thing pledged with the diligence of a GFF
o When is he entitled to reimbursement?
another?
o No. Remember, hes not the owner. He has to be authorized
public instrument
common agreement
Distinguish pledge from REM:
Pledge
accept?
obligation is paid
2. The pledgee may still sell the thing in case of
default
Can the debtor demand its return before the debt is paid?
o No, possession is the security of the creditor.
169
judicially or extra-judicially?
o 1. Creditor used the thing without authority
o 2. Creditor misused the thing
o 3. Thing is in danger of being lost or impaired due to
o
o
entitled to excess
2. If the price is less than the amount due, the creditor is not
demandable
What is a REM?
o A contract where the debtor secures to the creditor the
fulfillment of a principal obligation, by subjecting to such
o
o
o
flaws in the thing loaned where the bailor knew about it but did
o
lodging
How does the pledgee/creditor exercise his remedy?
debtor?
o The principal obligation is extinguished whether the price of
sale is more or less than the amount due
1. If the price is more than the amount due, the debtor is not
170
REM
Accessory contract
No transfer of title
No transfer of possession
Principal contract
Conditional title
Conditional transfer of possession
owner
person mortgagors)
2. Extrajudicial foreclosure under Act 3135.
o When does this apply?
public policy.
What is the extent of the mortgage?
o REM is not limited to the property itself, but also its accessions,
condemned.
o EXCEPT: contrary stipulation.
Can the mortgage be alienated or assigned?
o Yes and the assignee or transferee is entitled to foreclose the
mortgage in case of non-payment of the obligation. If the
pactum commissorium.
What if the mortgagor transfers the property?
o 1. It does not relieve him from his obligation to pay the debt to
o
cannot pay, then the creditor can demand payment of the credit
consecutive weeks
parties.
How long does the mortgagor have to redeem?
of sale.
But if the mortgagor is a juridical person and the
mortgagee is a bank, quasi-bank, or trust entity, then
redemption is only within 3 months from foreclosure or
registration of certificate of sale with ROD, whichever
is first.
171
purchaser
3. Written notice of redemption served on officer who
parties.
Does the mortgagee have a right to recover deficiency post-
foreclosure?
o Yes, he may. The action to recover the deficiency prescribes
o
o
for ejectment.
To rule otherwise would unduly prejudice the third person who
did not have a chance to oppose the claim, since the
the mortgagee?
o 1. Waive mortgage and pursue claim against estate as an
ordinary claim
2. Judicial foreclosure of the mortgage, and recover deficiency,
the ROC)
Is a purchaser in a foreclosure sale who hasnt turned over the
excess of the proceeds of sale to the mortgagor entitled to a writ of
possession?
172
Antichresis
proceeds to the payment of interest (if there is), and then to the
o
Antichresis
Pledge
Real property
Formal contract
Personal property
Real contract
Antichresis
REM
is void
Is delivery of the property a requisite for the contracts validity (i.e.
is it a real contract)?
o NO. The delivery is only to allow the creditor to receive the
fruits and apply them, and not to make the contract valid.
o But note, it is a formal contract.
What is the requirement of appraisal?
o The fruits of the immovable must be appraised at their actual
market value at the time of application (to know how much is
deducted).
Can the debtor demand the return of the property before the debt
is totally paid?
o No. It stands as security.
What are the obligations of the antichretic creditor?
Chattel Mortgage
173
o
o
1. Accessory contract
2. Formal, because it must be registered in the CM Registry to
applies
be valid
parties.
3. Unilateral only the creditor has obligation: to free the thing
the car was sold at a public auction where the SLA won. X
returned to the country and sought to recover possession of the
car. Can he?
o Yes. A CM can only be constituted by the absolute owner with
no title over the car. Since X was unlawfully deprived of
o
o
CM
Pledge
Delivery is necessary
recorded in CM Registry
What if the mortgagor thereafter pays the debt anyway or
free disposal thereof, which Z was not since the seller, Y, had
for validity
parties
If foreclosed, excess goes to debtor
recoverable in general
immovables.
What if the property is found in a place other than where the
mortgagor resides?
174
o
o
in installments.
So if it is foreclosed, no deficiency. But
under the Recto Law, after specific
performance which leads to execution sale,
it is not a foreclosure.
o
o
Quasi-contracts
the CM
What is an Affidavit of GF?
o It is an oath in a contract of CM that the parties:
latter
What is he obliged to do?
175
substitute him
o When does negotiorum not arise?
o
o
demand of owner
D. Assumption of management in BF
E. He is manifestly unfit to carry on the management,
imminent danger
F. His intervention prevented a more competent
A. owner ratified
have suffered
If he did not derive benefit:
involved
2. Liable for fruits received or fruits that should have
danger:
A. non-payment of taxes
manager
When does solutio indebiti arise?
176
o
o
o
support
2. Earnings within the month to support the family
3. Proceeds of life insurance
4. Right to receive legal support from government or those
loaned to guests
11. Crop loan, over the fruits harvested
12. Rentals for one year, on the movables in the property
leased
13. Claim of depositor, on goods wrongfully sold by the
o
o
o
property
What is the order of preference as to other properties of the
debtor? (2244)
o 1. Funeral expenses
o 2. Wages of employees for one year
o 3. Expenses of last illness
o 4. Workmens compensation
o 5. Support for one year
o 6. Support during insolvency
o 7. Fines in crimes
o 8. Legal expenses for administration of insolvents estate
o 9. Taxes other than those over specific property
Then to province
depositary
177
o
o
o
o
o
11. Donations
12. Credits in public instrument or covered by final judgment
goes first
3. APPLY SAME RULES TO SPECIFIC IMMOVABLES
4. For enumeration in 2244, follow the order
5. For common credits, no preference; just apply property pro
Insolvency Law
creditors receive less than their credits (or where there are
damages. The aircraft was sold for 1M. The following claims thus
exist
o
o
o
o
o
liquid.
What is the effect of suspension of payments?
o 1. No disposition of property of debtor except in ordinary
o
o
course of business
2. No payment except in ordinary course of business
3. Upon request to court, all pending executions against debtor
shall be suspended
178
D. Proposed agreement/schedule
o 3. Court issues order calling all creditors to a meeting (2-8
debtor
5. Creditors approve the proposition
A. 2/3 of creditors
property
What if someone has a mortgage over the
property?
Is hearing needed?
agreement
C. Fraudulent conveyance of claims to obtain a
badge of fraud)
SAME RULE for dispositions within 30 days
before insolvency proceedings, unless there
majority
o 7. Court issues order directing the agreement to be carried out
What is the procedure for voluntary insolvency?
o 1. Debtor files petition that he is insolvent and cannot pay debts
o
o
179
PRESCRIPTION
corporation
o What are available remedies?
Objection
Appeal to SC
What is the procedure for involuntary insolvency?
o 1. Three or more creditors file petition
o
o
o
o
o
Objection
Appeal to SC
fraudulent conveyance
and liabilities
corporation
180
prescription
3. Possession of the thing under certain
conditions
1. Public domain
2. Intransmissible rights
4. Registered land
What is the rule on renunciation of prescription?
o Person may renounce prescription already obtained, but not
o
extraordinary prescription?
o Reasonable belief by the person that he is the owner and could
the owner
may still collect even after the 10 year period under law. X
failed to pay after repeated demands so X sued him on
January 7, 1953. Can X collect?
10 years immovables
4. In concept of owner
1. Just title
8 years movables
30 years immovables
3. In concept of owner
1. Possession in GF
2. Just title
4 years movables
181
property.
What is public, peaceful, uninterrupted?
o Known to the owner of the thing
o Not acquired through violence
o And continuous enjoyment of the property
o When is there an interruption?
1. If natural
interrupts, by default
Exceptions?
o 1. Lack of legal solemnities
o 2. Plaintiff desists from complaint,
o
law
4. action upon judgment
1. Action to recover movables (count
6 years
5 years
4 years
1 year
complaint
3. Renunciation by possessor
8 years
succession of rights
What if the character of possession
differs?
o Predecessor in bad faith, possessor
in GF use extraordinary
o
SALES
acquisition
Presumed to be in possession in intervening periods unless
disproved
o Exclude first day, include last
Periods for prescription of actions:
30 years
10 years
Introduction
182
Transfer ownership
o
o
1. Consent
2. Subject matter
subject to loss?
o No.
Upon consummation: determinate (requires physical
person in GF
Special rules for sales:
1. SOF
urban lands
Distinguish from piece-of-work:
o 1. Check if it is possible to produce the product ahead of any
special order
Recall:
Compensation morae
o
o
reciprocal obligation
o
o
promised
2. If he lost by eviction the thing received in barter, he
may recover what he gave in exchange, with damages
4. Onerous
5. Commutative
customized)
2. POW is unique and always different from other orders
3. Essence of sale is object; essence of sale is service
183
Parties
price for the thing, and then sell it thereafter. There are two
necessaries to minor?
buyer
Upon consummation:
suspensive condition
Remedies:
contract.
If just perfected, it is voidable, as per usual
rule.
What do prohibited sales here include?
o Also legal redemption, compromises, and renunciations
Can spouses sell to each other?
o In general, no.
o Exceptions?
1. CSP
2. JSP
o N.B. prohibition also applies to common law spouses
What are the special disqualifications?
o 1. Agents over principals property
consent.
2. Guardian over wards property
3. Executor or administrator over estate property
Generally, valid.
automatically extinguished
184
after.
impossible thing.
What is emptio rae speratae"?
o A sale based on the suspensive condition that the thing comes
into existence.
What is emptio spae?
o Sale of a vain hope or expectancy. It is void. (Under Jurado, it
favorable judgment.
Courts may only nullify it if the lawyer
says that its valid and perfected because what was sold was
Agent
Guardian
Executor/administrator
o The following cannot ratify through new contracts:
Officers of court
Lawyers
hope itself)
What are examples of illicit subject matters?
o Sale of intransmissible rights, sale of future inheritance, etc.
What is determinable and what is determinate?
o Determinable upon perfection of the contract, the thing is
capable of being made determinate, without necessity for a
Subject matter
have a right to do so
Possible means that it may not exist at the moment but it can
definitely exist.
or levy?
The person need not be the owner of the subject matter upon
already
o If neither determinable nor determinate, no contract.
What is essential for perfection as re: quantity and quality?
o Identity and quality of the subject matter is ESSENTIAL for
o
o
185
perfection.
Quantity is not as important, but the standard is that there is no
need to enter into a new contract to determine it.
What is the status of generic things sold?
o
o
goods?
better right over the goods, unless the real owner is estopped.
What is the exception to this rule?
suspensive condition.
What if the third party refuses or cannot fix the
price? Or what if the price cannot be determined
donation.
What is certain or ascertainable?
o Certain if it is in a definite amount.
o Ascertainable if reference can be made to another thing certain
or judgment of another person.
Price
of the parties.
What if the price indicated is only nominal/meager (ex. P1),
is it valid?
deficiency
But if a specific mass is sold without weighing, the
subject matter is a definite object even if there are
money
o 3. Certain or ascertainable at the time of perfection
What is real?
o When the buyer has every intention to pay and seller has every
intention to receive.
186
No.
1. Third party in BF
2. Mistake
What is the rule for sales where there is no price agreed upon?
point?
o
o
demandable at once.
But if the intent clearly shows some other manner apart from
back
Take note of lesion in sales of guardians and representatives of
price?
immediate payment but the contract does not provide for it,
Does not affect validity of the sale contract, but may indicate
187
certain
OC contracted offer, securing the privilege to buy, so the
3. Separate consideration
undertaking of value.
Does the OC fall under the SOF?
o No. But the resulting sale contract will.
What if the requisites for an OC are not complete?
o Its a VALID offer but a VOID option contract.
o So it can be withdrawn with no consequence. But if its
during the period, and this will bring about a valid contract of
sale.
If the offeror withdraws the offer during the period, it is void.
of payment.
What if a RFR is not honored?
o Damages only, no specific performance
Must there be a consideration?
o Yes, but need not be separate from the main contract.
Must it be in a written contract?
o Yes, otherwise it is unenforceable. (SOF)
What if the property is offered to a third person after being offered
to one with a RFR?
o The offered price to the third person must at least be under the
is not forfeited.
What are the rules on form that you must take note of?
o 1. Sale of real property by an agent (must be in SPA)
o 2. Sale of large cattle (in writing and registered w/ municipal
o
o
treasurer)
3. Sale of land by non-Christians
4. Transactions involving rights over real property must be in
Just the object of the contract. NOT YET the price and manner
188
the vendee
o With intent to deliver
What are the types?
o 1. Actual
o 2. Constructive any manner signifying transfer of possession
possess as lessee
Traditio Brevi Manu: bought as lessee, and become
destination
In delivery of movables, what if the seller delivered less goods than
delivery to buyer
o Buyer must pay freight
FOB destination delivered to buyer only
owner
vessel
2. FOB sales (Free On Board)
o
189
o
o
o
o
When one buyer bought the land as registered under Act 3344,
and another bought the land as registered under Torrens title,
1. Reject excess OR
conflicting interests)
o 1. First person who registers the land in the ROP in GF
o 2. If none, the first person who possessed it in GF
o 3. If none, the person who presents older title in GF
What is the subsidiary rule?
o Primus tempore, potior jure (First in time, first in right). This
applies when the above rule doesnt apply for lack of requisites,
o
markets
What is the general rule for double sales?
o The Torrens system prevails in setting priorities.
o When the property is covered by two different titles, the earlier
one prevails.
190
ownership vests.
The first buyer can simply defeat this continuing GF
by registering.
As soon as he second buyer obtains knowledge of the
Documents of title
price.
3. If price is payable on a certain day, the seller can ask for
them.
When ownership has not been transferred, seller has
lien, except:
1. If seller assents
191
goods
3. Waiver
2. Stoppage in transitu
stoppage, except:
1. If seller assents
continues in possession
BUT if the goods are being carried on behalf
1. Actual possession
2. Notice to carrier
case of default
3. Buyer has been in default for
unreasonable time
What is the prerequisite?
1. Perishable goods
time
192
particular purpose for which the goods were acquired and the
time
If he fails to return the goods or offer to
return them
If the goods are not in good condition
eviction
What are the requisites?
thing bought
2. By virtue of final judgment
3. Based on a right prior to the sale or an act
Yes
of merchantable quality
What is warranty in case of eviction?
o It is an implied warranty wherein if the vendee is deprived of
against vendor)
4. Expenses of the contract if vendee paid
5. Damages and interests, and ornamental expenses
if sale was in BF
When can the vendee demand the rescission of
the contract?
193
movables?
o 1. If ownership has been transferred to the buyer, specific
What are the remedies of the seller for breach of contract of sale of
price.
3. If price is payable on a certain day, the seller can ask for
pay an installment
Breach of contract
194
deterioration
What is the validity of an agreement not
is returned)
3. Foreclose CM on the thing, if buyer fails to pay 2 or
sale K
But he can rescind it through judicial or notarial
more installments
by the seller?
o Its tantamount to foreclosure
What if property is sold for two installments only?
installment?
1. Financing agreements
Yes.
Maceda Law)
o 1. For anticipatory breach
obligation
So if there is no judicial demand or notarial
(MACEDA LAW)?
o When ML applies:
demand
What does Art. 1592 provide?
land) AND
3. Either a CTS (notice of cancellation) or COS
195
notarial demand?
and penalties.
Can there be judicial rescission under the ML?
pay nonetheless
Is trespassing considered as a valid ground to
disturbance or danger
price
3. There is stipulation that the buyer must
suspend payments?
No.
What are the remedies of the buyer in a sale of immovables?
o 1. Suspension of payment if there is reasonable fear of
196
sales)
Rescission is for lesion
Extinguishment of sale
instrument of sale.
o
o
before consummation.
It does not prevent the consummation of the sale.
Can enforce the right from third persons or possessors deriving
right from the buyer, even if the subsequent sale contract did
not mention the conventional redemption.
with consignation
What is the period for redemption?
o 1. If none agreed upon, 4 years
o 2. If there is a period agreed upon, cannot exceed 10 years
o 3. 30 days from judgment of the court, if there is judgment
Registration Decree.
Compare with option contract?
o Conventional redemption need not have separate and distinct
consideration to be valid.
197
obligation.
What is the consequence if a contract is declared an EM, and not
pacto de retro?
o Title of buyer cannot ripen into full ownership because his
sale to stranger
A. Rural land
urban area
What is the special rule for sale of
adjoining urban land?
o The right is not just of redemption
up)
Purpose: prevent speculation in real estate
when there is housing problem already in
yet.
How is consolidation of ownership in the vendee by failure of the
seller or seller
Written notice is indispensable even if the redeemer gains
knowledge of the sale some other way
Exceptions?
hectare
Not applicable to lands separated by
owners
2. Laches by redeemers
3. The co-owner himself acted as middleman or
intermediary in the sale to the third party
servitudes
198
PARTNERSHIP
Contract of partnership
property
Key attributes of Partnership:
o 1. Consensual, but weak juridical personality
o
o
public
2. Mutual agency
3. Delectus personae
partnership
2. Intention by the partners to divide the profits amongst
damages.
The moment one partner is gone, the partnership is
dissolved.
4. Subject to unlimited liability
themselves
exhausted
Does this include even industrial partners?
Yes
Can there be a contractual stipulation denying
unlimited liability?
apply?
1. Wages of an employee
199
o
o
damages
2. Partnership at will
damages
What is the extent of a general partners liability?
o 1. Liable pro rata when partnership properties have been
o
exhausted
2. Solidarily liable with the partnership for wrongful acts or
omissions causing injury to third persons when the partner acts
relations.
What is the default rule?
Particular partnership
X and Y are partners in real estate projects. X was abroad and
Contributes services
200
the creditor can hold C liable for 20% since that is his
properties
B. Separate creditors over separate
properties
Can a corporation enter into a partnership? What about a JV?
o Cannot enter into partnership.
o But can become a limited partner because there is no unlimited
liability in this case and it will not participate in the
representation.
The partnership itself is only liable as the partnership
losses.
What is a partner by estoppel?
o He is not really a partner, but because of his acts, he has led
participation.
C, in turn, can ask for reimbursement from A and B
because of their agreement that C does not share in
persons.
Purpose of registration:
only)
What is the rule on liabilities as regards the firm name?
o If a non partner has his name in the firm name, he is subject to
the liability of a partner.
public document?
201
other partners)
o 3. Interest in the partnership (equity holder)
What is the management right of the partners?
o Presumption is that there is mutual agency acts of one can
bind the partnership. But what is stipulated in the partnership
o
the partnership.
What is the nature of power of alteration (ownership/control)?
o Cannot be done without consent of all other partners, even if
o
other parties.
If stipulated in the articles of partnership, it is irrevocable
except for just or lawful cause. If not stipulated in the articles of
arbitration
What if management is stipulated in favor of one partner?
o He may execute all acts of administration despite opposition by
o
pledging it
Disposing of the goodwill of the business
Confession of judgment
Entering into compromise as to liability or claim
Renouncing claims by partnership or submitting it to
partnership
3. See the two rules on solidary liability as re: wrongful acts or
useful
But if the refusal is manifestly prejudicial to the partnership,
202
effect
If title is in the name of some but not all of the partners:
partnership creditors.
What is the share of the partners in profits and losses?
o It is done according to agreement.
o A. If only shares are mentioned, losses follow the same
partnership property?
o Partner has equal right to posses the partnership property only
for partnership purposes
2. Legal support
What is the rule on equity rights?
o These can be transferred or assigned. What is passed is the
a partner on assets?
o It must be during dissolution only, and after satisfaction of
property
Partners right over the property is not subject to:
proportion
B. In absence of stipulation, follow proportion of contribution
No.
Can it be left up to a third person?
have passed.
What are the other rights?
o 1. Right to inspect partnership books at reasonable hour
o 2. Right to demand true and full information of all things
regarding the partnership
203
accounting?
property
3. When it is just/reasonable
4. Right to dissolve the partnership
PROPERTY:
partners.
What if there is default of obligation to contribute what
are the remedies?
meant to be sold
REAL PROPERTY: need registration, as stated above
SERVICE OR INDUSTRY:
the partnership.
B. Duty of diligence
fault.
Can he compensate liability for damages with
profits/benefits he might have earned for the
partnership?
No.
None, generally.
firm?
204
partner be opposed?
If done in BF.
partners credit
2. If he pays debt to partnership alone
1. To the partners
o A. For amounts disbursed for and in behalf of the partnership
With interest
o B. For contracts entered into for and in behalf of the
o
onerous
D. Separate fiduciary duties of an partner
(not personally)
When are non-partners liable?
partnership
C. Keeping of books at principal place of business, accessible
at reasonable hour
2. To third persons
o A. From firm name: for anyone represented as partner therein
o B. Partners are assumed to be mutual agents for the
partnership, and their acts generally bind the partnership
except:
business
authority
NOTE: intra-partnership problems cannot prejudice third parties in good
faith, who have expectations that the contract will push through
o Third persons have no duty to know what is stipulated in the
205
o
o
o
transactions
2. And except acts that would have bound the
partnership had it not been dissolved, when the third
contract
o [equity]
o 5. Partnership business can only be carried out with a loss
o 6. Other equitable grounds
What is the effect of dissolution not in violation of partnership
agreement?
o No damages. Any of the partners can participate in the
declared illegal
winding up.
Except, of course, when a partner is expelled in good faith.
contract
[wrongful acts]
3. Partner guilty of conduct prejudicial to the business
4. Partner willfully and persistently breached the partnership
withdrawing partner.
What is the effect of dissolution in violation of partnership
agreement?
o The partners seeking dissolution are liable for damages. They
through.
What are the grounds that dissolve the partnership without need
for court decree?
o 1. Dissolution without violation of partnership agreement
o 2. Dissolution with violation of partnership agreement
o 3. Dissolution by force majeure
206
Limited partnership
less damages.
What is the right of the partner with lawful/just cause to ask for the
judicial dissolution of the partnership due to
returned.
certificate?
above)?
o He has a lien on:
liability.)
3. Name of the partnership must have LTD.
When can there be cancellation of the certificate?
partnership
207
carry on
3. Confession of judgment against the partnership
partnership purpose
[expansion of participants]
o
o
businesses.
What are the rights and obligations of limited partners?
o [as to contribution]
o 1. Limited liability only to extent of contribution
o
o
o
o
persons
B. But not as to co-partners, who must
o
o
paid
o
otherwise.
[as to income]
3. Receive share by way of income
liabilities
Can limited partners be compelled to contribute to assets of
partnership in case there is imminent loss?
o No, unless if provided in the contract.
o BUT the usual provision that there is forced sale of partnership
(see below)
3. Certificate cancelled or amended to allow
contribution?
1. Dissolution of partnership
208
to LPs.
Does death of a limited partner dissolve the partnership?
No. Only a general partners death (of course, the others can
choose to continue)
The limited partners estate can simply settle liabilities and
agency is terminated
Doctrines flowing from preparatory and representative character of
agency:
o 1. Agent is stranger to the contract between the principal and
consent or authority
Elements of contract of agency?
to the principal
B. Must choose best course of action for the
principal, and not one that favors himself to
Define agency:
terminated
Consequences:
AGENCY
o
o
209
unlike an agent.
What is the form needed for a contract of agency?
o None in particular; its a consensual contract
o But sometimes a written SPA is needed.
Differentiate an express from an implied agency:
o Express agency there is actual acceptance
o Implied agency implied from:
1. Acts of principal
authority
2. Third person in GF relied on the representation
3. Third person changed his position, to his detriment,
it was given
What is agency by estoppel?
o Even when the agent has exceeded his powers, the principal
person
How long does this power last?
persons?
o A. If the principal informs another person that he has given
power of attorney to an agent, the latter becomes a duly
210
1. He exceeds authority
judgment
o What if the agent breaches this duty?
party.
3. But if the third person was aware that the agent
exceeded his powers, the contract is unenforceable
agency
2. Agent possesses a beneficial interest in the subject matter of
the principal?
interest
principals consent
authority.
211
principal.
Exceptions to this rule?
damages.
What if the agent enters into a contract in his own name
on a matter that falls within the scope of the agency?
no fault of his)
When can the agent appoint a sub-agent?
o If the principal did not prohibit him from doing so.
o What is the main effect?
principal
money
This presumes the transaction was not one in breach
notoriously incompetent/insolvent
What if the principal expressly prohibited appointment of a
subagent?
212
o
o
o
o
o
o
o
o
o
administration
8. Lease for more than 1 year
9. Contract for principal to perform service without
compensation
10. Bind principal in partnership contract
11. Obligate principal as guarantor or surety
12. Convey or create rights over real property
13. Accept or repudiate inheritance
14. Ratify or recognize obligations contracted before agency
15. Other acts of strict dominion
Must a SPA be in writing?
basis
4. Bear risks of collection of proceeds of the transaction under
scope of authority
3. Principal must advance sums necessary for the agency if the
agent requests. If the agent paid for it first, the principal must
authority
3. Principal revoked agency but the third party acted
mortgage it?
reimburse
4. Principal NOT liable for expenses of agent if:
D. Express stipulation
5. Must indemnify agent for damages sustained without agents
o
o
fault
6. Pay agent for his services
7. If two or more principals constituted the same agent for a
common undertaking, they are solidarily liable
principals
213
the agency was for him to sell the property for P10/SQM. The
accepted
3. When the agent did not know the death of the
the land to the same buyer the agent found. There was no
badge of bad faith here.
What is an irrevocable agency?
o An agency cannot be revoked if:
detriment to himself.
What happens in the meantime?
paying commission.
CONTRAST this to another case where the agent found a
buyer, but the buyer was willing to pay only P9/SQM whereas
contracted
3. A partner is appointed managing partner and there
is no just cause
What are examples of agency coupled with an interest?
agency at will.
214
one agent.
Principal must give notice:
agency
o 5. Accomplishment of purpose or object of agency
o 6. Expiration of period of agency
What is the obligation of the agent even after the agency was
terminated?
o Keep confidential matters learned during course of agency, if
confidential
contracted
3. Partner is appointed manager of a
COMPROMISE
is unjustifiable
2. Withdrawal of agent
3. Death, civil interdiction, insanity, or insolvency of principal or
agent
What is a compromise?
o It is a contract where parties make reciprocal concessions to
put an end to litigation or avoid it altogether.
What matters cannot be compromised?
o 1. Civil status of persons
o 2. Validity of marriage or legal separation
o 3. Ground for legal separation
o 4. Future support
o 5. Jurisdiction of courts
o 6. Future legitime
What is the effect of compromise?
o It has the effect of res judicata between the parties.
o If the one party does not want to comply with the compromise,
the other party may:
been accepted
What is the effect of transactions entered into by
the agent after death of the principal without
demand
LEASE
contract is valid
If the third party was in BF, void for lack of
consent, an essential element
215
What is lease?
o Lease is a consensual, bilateral, onerous, and commutative
lessors consent?
o No. The lessee may not assign the lease without the lessors
May the lessee assign the lease to a third person without the
compensation.
Define lease of services and lease of things:
o Lease of things one party binds himself to give to another the
consent.
May the lessee sublease the property to a third person without the
lessors consent?
o Yes. The lessee may sublease the property even without the
lessors consent. But the lessee must still comply with his
Ninety-nine years
Lease of service one party binds himself to execute a piece
be held liable beyond the amount due from him under the
some service
In things, the principal obligation of the lessor is to deliver the
sublease.
What is the nature of the sublease agreement?
o It must comply with the lease agreement as to the manner of
o
damages
Is a boundary-based contract between the owner of a jeep and the
driver a lease?
o No. The driver does not spend anything to acquire the jeep.
relationship.
Lease of rural and urban lands
216
stipulated)
o 3. Pay expenses for deed of lease
What is the remedy for breach by either party?
o 1. Rescission with damages
o 2. Damages alone
What if the thing leased is lost fortuitously?
o The lease is terminated.
o If the thing is reconstructed, there is no automatic renewal of
the end of the lease contract, the lessee continues enjoying the
lease for 15 days, with acquiescence of the lessor and no
notice to contrary provided by lessor.
Period of the new lease is according to provisions of law:
weekly rent
If lessee has stayed more than 1 month, the
daily rent
But all other terms of the contract are the same.
Of course, if there is an option to purchase the leased property
property
The lessor must pay the lessee of the value of
improvement
What if the lessor refuses?
causes damage
For ornamental improvements
damage
But the lessor may choose to pay the value of the
thing, which terminates the lessees right to remove
within the original lease period, and it expires, and only tacitly
the improvement
217
lessees?
compensation.
The contractor may either employ only his skill/labor, or furnish
Define quasi-delicts:
o Fault or negligence of a person, who by his act or omission,
loss
EXCEPT: if there is delay in receiving it (mora accipiendi)
the excess.
What are the elements in an action based on quasi-delict?
o 1. Fault or negligence of the defendant
o 2. Damage suffered by the plaintiff
o 3. The relation of cause and effect between the
fault/negligence of the defendant and the damage incurred by
TORTS
plaintiff
218
supervision
3. Culpa criminal against either driver, with the employers liable
subsidiarily if the drivers are insolvent
their company
company
3. Owners and managers of establishment/enterprise, as re:
The tortfeasor
(joint tortfeasors)
tortfeasors)
Under the RPC, in civil liability for crimes:
to be found insolvent
The felony committed by the employee must be in the
1. ER-EE relationship
219
negligence of an employee?
o There s a presumption that the employer is also negligent and
discharge of duties)
4. EE is insolvent
What if the felony was committed by a minor?
liable in accidents.
What is the rule if the owner of the vehicle is inside the vehicle with
his driver when the accident happened?
o Art. 2154: if the owner was in the vehicle and could have,
physician?
o Generally, hospitals are not liable under the Schloendorff
1. Apparent authority
supervision of employees.
What is the difference in liability?
or authority exists
2. Corporate negligence
after paying
If the owner was not in the car, he can demand
reimbursement of the whole amount from his driver
after paying
When is a driver presumed negligent?
220
responsibility is solidary.
The responsibility is solidary so long as the accident causing
doctrine)?
o Where both parties are negligent in such a way that it would be
contract).
When can the State be a tortfeasor?
o 1. Performance of proprietary functions
o 2. State enters into contract with private person
o 3. Imputed liability under Art. 2180 for acts of special agents
Proximate cause
injury and without which the result would not have occurred
Remote cause:
but failed to do so
4. Accident occurs due to the negligence of the
defendant
Intentional torts
221
o
o
o
o
o
policy
o 3. Done with intent to injure
What the elements of unjust enrichment?
o 1. No just or legal ground for defendants enrichment
o 2. Enrichment on the part of the defendant
o 3. Enrichment is at the expense of the plaintiff
o 4. Damage or loss suffered by the plaintiff
o When does this claim apply?
o
o
o
Preponderance of evidence.
Is good faith a defense?
No.
Differentiate this from the Bill of Rights:
another
3. Intriguing to cause another to be alienated from his friends
4. Vexing or humiliating another on account of beliefs, lowly
violations.
What kind of duty is contemplated here?
method
o Applies to agricultural, industrial, and commercial enterprises
What is violation of civil/political rights as a tort?
o When public officers or employees or a private individual
directly or indirectly obstructs, violates, or impedes/impairs the
enrichment.
What is thoughtless extravagance?
o If done during period of acute public want or emergency
o May be stopped by the courts at the instance of government or
o
o
relief or service.
What is unfair competition as a tort?
o It must be through the use of force, intimidation, deceit,
machinations, or other unjust, oppressive, or highhanded
condition
What are the elements of dereliction of duty?
o 1. Public servent defendant exercises ministerial duty
222
o
o
of negligence
2. Caused by an agency or instrumentality under the
interference?
3. Lack of inducement
the plaintiff
What are the defenses against negligence?
o 1. Contributory negligence
mitigates damages.
2. Assumption of risk
foreseen or unforeseen
In good faith: only liable for foreseen consequences
Negligence
risk
3. Last clear chance
See above discussion
NOTE: that this doctrine will not apply as a defense
for breach of contract of carriage. Neither can one
negligent party use this as a defense against liability
to a third person, by pointing at the negligence of
another. It must be between two parties in a situation
where it is impossible to determine whose negligence
223
Consumer Act?
o
o
supervision of employees
7. Mistake and waiver
What is this?
hidden defects
5. Fortuitous events
What is this?
v. CA)
Proprietors likewise are responsible for:
diligence
2. Excessive smoke harmful to persons/property
3. Falling trees situated near highways or lanes, if not
consumers.
When is a product defective under the Consumer
Protection Act (CPA)?
224
or producer or importer
2. The product supplied does not clearly identify the
construction?
Strict liability
Who are instances that fall under the doctrine of strict liability?
o 1. Possessors and users of animals
o 2. Nuisance
o 3. Product liability/violations of Consumer Act
What is the liability of possessors and users of animals?
o The possessor, and not just the owner, of the offending animal
paid
1. defects in construction
225
not matter that the dog was tame and was merely provoked.
The owner/possessor is liable as long as the animal causes
injury.
Nuisance: see Property Law
Manufacturers and processors: See above discussion
DAMAGES
o
o
injury
What is the recoverable value in the following instances
o Damage to property value of the property at the time of
o
recovered
What must be proved so that damages may be recovered?
o 1. Injury (legal invasion of a right)
o 2. Breach of duty (wrongful act, not just hurtful)
o 3. Breach must be the proximate cause of the injury
destruction
Personal injury and death
relatives injury
by the plaintiff.
What is the general rule?
o One is entitled to adequate compensation only for pecuniary
o
by benefit of defendant)
What is the exception that recovery is limited to proven loss?
o 1. Stipulation
o 2. Provided by law (ex. fixed indemnity)
What are the kinds of actual damages?
226
6. Merely incidental
length of time)
E. Interest
o 1. If there is a stipulation as to rate, apply it, unless it is
o
reasonable certainty
B. Obligation involving loan or forbearance of money:
12%
o
o
deceased
Exceptions when non-availability of
death])
How are net earnings proved?
commercial credit
C. What is fixed indemnity?
o It does not replace the loss of earning capacity
o P50K payment to heirs of deceased
o P75K payment for qualified rape
D. What is the loss of earning capacity?
o Loss of earning capacity = Life expectancy x (Gross annual
227
judicial demand)
3. Once there is finality of judgment , interest becomes 12%
Can there be interest for unliquidated damages?
his interests
3. Malicious prosecution
4. Clearly unfounded civil actions against plaintiff
5. Defendant grossly acted in BF in refusing to satisfy
laws
9. Separate civil action to recover culpa criminal
liability
Court must state basis for the award, or else its null
and void
As fees go to lawyer
As damages go to client
When can there be attorneys lien?
litigation
If the action is for damages, can claim a lien on the
award
What is the basis of the amount?
psychological)
2. Culpable action or omission established
3. It is the proximate cause of the tortuous act (fraud or bad
faith)
o 4. Award of damages predicated on:
Adultery or concubinage
Illegal search
Malicious prosecution
228
defamation
o Contract of carriage death of passenger, or fraud/BF
o Labor cases if there is bad faith or oppression against labor
Who may recover moral damages?
o Only the party who suffered.
abused
What are the factors in determining amount of moral damages?
o 1. Sentimental value
o 2. Extent of humiliation
o 3. Extent of pain and suffering
o 4. Standing of the offender and offended
o 5. Age of the claimant
What are the elements of malicious prosecution in criminal case?
o 1. Fact of prosecution and the action terminated with an
may be valid
Act of bank which merely relied on entries in a deed of
mortgage without checking or adjusting its records, leading to
acquittal
o 2. Prosecutor acted without probable cause
o 3. There was legal malice
What are the elements of malicious prosecution in civil case?
o 1. False allegation
o 2. Lack of probable cause
o 3. Malice or bad faith
o 4. Injury
o 5. Action terminated
Can corporations and other artificial beings be entitled to moral
prejudice to plaintiff
Can nominal damages co-exist with actual damages or any other
kind of damages for that matter?
o No. Nominal damages ALWAYS stand alone.
Temperate damages
corporate reputation)
Liquidated damages
Nominal damages
fraud, or malice.
Examples of violation of nominal damages:
o Violation of due process in labor cases, although dismissal
o
damages?
o No.
o EXCEPT libel or slander against the corporation (damage of
229
o
o
o
1. Stipulated otherwise
2. Interest was not paid
3. Fraud
demanded
alleged
waived
What must be established first?
o Claimant must first establish its right to actual, moral,
o
o
or malevolent manner
Culpa criminal attended by aggravating circumstances
Mitigation of damages
230
crime is filed
Or there are exemplary damages awarded
6. Interests, if proper