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CI

VILLAW
BAR201
8

i
.per
sons

1.Ret r
oactivit
yofLaws,NCCAr t.4Lawss hallhavenor et r oact iveef fect ,unless
thecontraryispr ovi
ded.
Excepti
onst oRul e:
(
1)Whent helawi t
sel fsoexpr essl ypr ovides .--Thi shast woexcept ions:
(a)whent her etr oact i
vityofapenalst atut ewi l
lmakei tanex
postf acto l
aw,( “Noexpostf actol aw orbi llofat taindershal l
beenact ed.”Sec.22, Ar ti
cleIII
,1 987Const i
tution)and
(b)When t he r et r
oact ive ef fectoft he st atute wi llconst itute
i
mpai rmentoft he obl i
gat i
on ofcont ract .( “Sec.1 0. No l aw
i
mpai ri
ngt heobl igationofcont ractsshal lbepassed. ”Sec.1 0,
Arti
cleIII
,1987Const i
tution)
(
2)I ncaseofPenalst at utes.--Penall awsshal lhaver etroactiveef fect
i
nsof aras theyfavort heaccusedwhoi snotahabi t
ual cri
mi nal,even
thoughatt he time oft he enact mentofsuch l aws f i
nal
sentencehasal readybeen render ed.( Art.22,RPC)
(
3)I ncaseofRemedi alst atutes .--Remedi alst at utesar et hosewhi ch
refertot he met hodofenf orci ngr ightsorofobt ainingr edressoft heir
i
nvasi on.
(
4)I ncaseofCur ativest atutes .
- -Cur ativest at utesar et hosewhi ch
under taketo cur eer rorsandi rregulariti
es .
(
5)I ncaseofl awsi nterpret i
ng ot hers .
--Thesear el awswhi char e
i
nt endedt o clari
fydoubt sori nt erpretanexi st i
ngl aw.
(
6)I ncaseofl awscr eat i
ngnew r ights.-- pr ovi dedt hati tdoesnot
prejudice anotheracqui redr ightoft hesameor i
gin.
(
7)Ifthel aw isofanemer gencymeasur eandaut hor izedbyt hepol ice
powerof theSt ate.
(
8) Taxl aws–whi chi mposet axesmaybegi venr etroactiveef fect.
Liabil
it
yf or taxes i si nci dent alt o soci al exi st ence.( Lorenzo vs.
Posadas,64Phi l353)

2.Terr
it
ori
ali
tyPri
nci
ple–Operat
ionofl
awi sco-
ext
ensi
vewi
tht
err
it
ori
al
soverei
gnty(Art
.14,NCC),parti
cul
arl
yincaseofpenall
aws,andlawsof
publi
csecuri
tyandsafet
y.

Terr
it
ori
ali
tyandGeneral
ityPri
nci
ple-
Art.14.Penall
awsandt hoseofpubli
csecurit
yandsaf etyshall
be obl i
gatoryupon allwho l
ive orsoj
ournin Phil
i
ppine ter
ri
tory,
subj
ectto t he pri
nci
ples ofpubli
cinter
nati
onallaw and tot reaty

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vi
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es Page1
st
ipul
ati
ons.

There ar
e 2 pr i
nci
ples i
nvol
ved here:Terri
tor
ial
i
ty and Gener al
it
y.
Ter
r i
tor
ial
i
ty meansthatourcr i
minall
awsar eenforceableonly
wit
hinPhili
ppi
neterr
it
ory. Excepti
ontotheter
ri
tor
ial
it
ypr i
ncipl
eis
Art
icl
e2ofRPC.

Generali
tywhichmeanst hatwithi
nt hePhili
ppineterr
itor
y,ourcri
minal
l
aws wi l
lapplytoanyone,cit
izenoral ien.Ourpenall awsequal lyappl
yto
al
ienswho l i
ve orsojour
nint he Phil
i
ppi nesbased on t he pri
nci
plethat
duringthei
rstay, theyoweal legi
ancet ot hecountrythought emporar
yi n
nature.Thesamer ule isembodi edinAr ti
cle2oftheRPC.

UNI
VERSALI
TYANDTERRI
TORI
ALI
TYPRI
NCI
PLE:

Universali
ty:Penallawsand those ofgeneralwelfar
e and t
hose of
public securi
ty ar
e bindi
ng on al
lwho r eside and soj
our
ni nthe
Phi
lippineterr
it
ory.(Art
.14)

Prohi
bit
it
velawsconcerningpersons,thei
ractsandtheirpropert
y,and
thosei
ntendedtopromot epubli
cor derandgoodmor als
,shallnotbe
madenugat orybyanyf orei
gnlawsorj udgmentsnorbyanact ionor
agreementmadeinaf oreigncount
ry.(Art
.17,p.3)

Basi
softher
uleist
her i
ghtoft
heSt
atet
opr
otecti
tsel
fandi
tspol
i
cies
i
nordert
oachievei
tsends.

“Art
.14.Penallawsandthoseofpublicsecuri
tyandsaf etyshallbe
obli
gat
oryuponallwholi
veorsojourni
nPhil
ippineter
ri
tory,subj
ectto
thepri
nci
plesofpubl
i
cint
ernat
ional
lawandtotreat
ysti
pulati
ons”

Thus,anyof fensecommit
tedbyanyperson( Fi
li
pinoorali
en)wit
hinthe
terri
toryofthecountr
yisanoffenseagainsttheState.TheStatehas,
therefore,t
hepowert opr
osecuteandpunisht heoff
ender,nati
onalof
foreigner.

Except
ions:
(1
.) Those, who under principl
es of publ
i
ci nt
ernallaw enjoy
di
plomati
ci mmuni
ti
es( f
rom suit)such asheadsofst at
es,for
eign
ambassadorsordi
plomat
sprovidedtheydonottr i
avelncogni
to.

NOTE:
Consul
sdonothavei
mmuni
ti
es

(
2.) Those expr
essl
y excl
uded f
rom ourj
uri
sdi
cti
on due t
otr
eat
y

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st
ipul
ati
ons

EXTRATERRI
TORI
ALJURI
SDI
CTI
ON:


Thejur
idicalpoweroftheStateextendi
ngbeyondthephysi
cal
t
h
l
i
mit
sofapart
icularst
ateorcount
ry.
”(Bl
acksLawDicti
onar
y.,6 Ed.
)

WheretheSt
atehasjuri
sdi
cti
onoverspeci
fi
ccr
imesal
thought
he
samewascommit
tedout
sideit
sjur
isdi
cti
on.

“Art.2( RPC)Appl i
cati
onofi t
spr ovi
sions.–Exceptaspr ovided
i
nt het r
eatiesandl awsofpr efer enti
alappli
cation,thepr ovi
sionsoft hi
s
Code shal lbe enf orced notonl ywi thinthe Phi l
ippine Ar chi
pelago,
i
ncludingi t
sat mospher e,it
si nteriorwatersandmar i
ti
mezone,butal so
outsideitsjuri
sdicti
on,agai nstt hosewho:
1. Shouldcommi tanof fensewhi leonaPhi l
ippineshipor
ai
rship;
2. Shoul df orgeorcount erf
eitanycoi norcur rencynot eifthe
Phil
ippine I slands or obl igat i
ons and secur it
ies i ssued by t he
Gover nmentoft hePhi l
ippineI slands;
3. Shoul dbel iabl
ef oract sconnect edwi t
ht hei ntr
oduct i
on
i
nto t heseI slandsoft heobl igat i
onsandsecur it
iesment ionedint he
preceding number ;
4. Whi l
ebei ngpubl icof fi
cersorempl oyees,shoul dcommi t
an of fensei ntheexer ci
seoft heirfuncti
ons;or

5. Shoul
dcommitanyoft
hecr
imesagai
nstnat
ionalsecur
it
y
andt
he l
awofnati
ons
,xxx

3. LexRei
Sit
ae

Art
.16.Realproper
tyaswel
lasper
sonalpr
oper
tyi
ssubj
ectt
othel
aw oft
he
count
ry whereiti
ssit
uat
ed.

However ,int
estat
eandt estament
arysuccessi
ons,bot hwit
hr espectt ot he
orderof successionandt otheamountofsuccessional
rightsandtot heintr
insic
vali
dit
yof t estamentarypr ovisi
ons,shal
lberegulat
edbyt henati
onall aw oft he
personwhose successioni sunderconsi
derati
on,whatevermaybet henat ure
ofthepropertyand r
egar dlessofthecountrywherei
nsai dpr opertymaybe
found.

ONSTO LEXREISI
EXCEPTI TAE:

(
1) I
n case ofsuccessi
onalr
ight
stor
ealpr
oper
ty,t
he l
aw t
hat

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governsisthenati
onall
aw ofthedecedent(Art
.16,par
.2Civi
lCode)
;
aswel lascapaci
tytosucceed(ininher
it
ance)i
salsogover
nedbythe
nat
ional l
awofthedecedent(Art
.1039,CC);

(
2) Cont r
actsi nvol
vi
ngrealpropert
ybutwhi chdonotdealwi
tht
he
t
it
let
osuchr ealpropert
yshallnotnecessar
il
ybegovernedbythel
ex
r
eisi
tae.Thepr operlawoft
hecont r
actgoverns

(3) I ncontr
actswherer
ealpr opert
yisgi venbywayofsecur i
ty,the
pri
ncipalcont
ractofi.
eloan isgover ned byt he pr
operl aw oft he
contr
act;t
heaccessor
ycontr
actofmor tgageisgoverned,however ,by
thel
awoft hestat
ewheret
her ealpropertymor t
gagedissit
uated.

4. Formal i
ti
es(LEXLOCICELEBRATI ONIS)
–Thef or
msandsol emnit
iesofcont
ract
s,wil
l
sandot herpubli
c
i
nstrumentsaregovernedbyt hel
awofthecountryi
nwhi chtheyar
e
executed.(Ar
t.17,par
.1)Referst
otheformalorext
ri
nsicval
i
dity

5. RenvoiDoct
ri
ne–Wher eourlaw provi
desthatafor
eignl
aw shoul
dbe
appl
i
ed, suchappli
cat
iont
akesplacedespit
eanyprovi
sionoft
hatfor
eign
l
awthat anot
herlawshoul
dapplyincaseofconfl
ict
.

6. Nati
onalit
yPr i
ncipl
e
“Art
.15.Lawsr el
ati
ng tofamilyri
ghtsand duti
es,ort
othe st
atus,
condit
ionandl egalcapaci
tyofpersonsar
ebindingupont
heci
ti
zensof
thePhili
ppineseventhoughlivi
ngabroad.

I
nt hePhi l
i
ppines,wef ol
l
ow thenational
it
yorci
tizenshipt
heory,thatis,
t
henat ionall
aw oftheper soni sappli
edinmattersinvol
vingper sonal
r
elati
ons. Int heU.S,andGr eatBri
tai
n,thedomi ci
li
aryorterr
it
or i
ali
ty
t
heor yisf ol
l
owed such t hat
,t he l
aw ofthe domi ci
lei
sappl i
ed on
mat t
ersinvol
vingpersonalrel
ati
ons.

i
i
. FAMI
LYCODE

VALIDI AGE–i
TYOFMARRI ndeter
mini
ngt
heval
i
dit
yofmar r
iage,i
tist
obe
t
estedbyt
hel
awi
nforceatt
het
imethemar
ri
agewascont
ract
ed.

1. REQUISITESFORVALI DITYOFMARRI AGE:


a.Essenti
alrequisi
tes:
i. Legalcapacityofthecontr
act
ingpart
ieswhomustbeamal
eanda
female;and
 Legal capacit
ydef i
ned:maleorf
emaleoft
heageof18year
sor

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upwards notunderany ofthe i
mpediment
si n Ar
ti
cl
es 37
(i
ncest
uousmar r
iages)
,38voi
dmarri
agesbyreasonofpubli
c
poli
cy)
.(Ar
t.5)

 “t
ogr antthechangesi nnameandsexsoughtbypet i
ti
onerwil
l
substant
ial
lyreconfigureandgr eat
lyalt
erthelawsonmar r
iage
andf ami
lyrelat
ions–i twil
lal
lowtheunionofamanwi t
hanother
manwhohasunder gonesexr eassi
gnment,amale-t
o-female
postoperati
vetranssexual Si
.( l
veri
ovs.Republi
c,537SCRA373)
Suchamar ri
ageisvoi d.

i
i
.Consentfreel
ygivenint
hepresenceoft
hesolemni
zi
ngoffi
cer(Ar
t.
2,FC)– consentofthecontr
acti
ngpart
iesandnotthei
rparent
s
shoul
dthey18yearsol
dandup.

b.For
mal
requi
si
tes:(
Art
.3)

1
.Aut
hor
it
yoft
hesol
emni
zi
ngof
fi
cer

Theaut
hori
tyoftheof
fi
cerorclergymanshownt ohaveperf
ormeda
marr
iage cer emonywil
lbepresumedintheabsenceofanyshowi
ngtot
he
cont
rary. (Al
cantar
avs.Al
cantar
a,531SCRA446)

Aut
hor
izedsol
emni
zi
ngof
fi
cer
sar
e:

1
.1.i
ncumbentmemberoft hej udici
ar ywit
hint
hecourt’ ;
1
.2.anypr iest
,r abbi,i mam,ormi nisterofanychurchorr el
i
gious
sectdul y aut horized by hi s church orrel
igi
ous sectand
regist
eredwi ththeci vi
lregist
rargener al
,act
ingwi thi
nthelimit
s
ofthewr it
tenaut hor i
tygrantedhi m;
1
.3.anyshi pcapt ainorai r
planechi efonlywhent hemar ri
ageisin
art
iculomor ti
s;
1
.4.anymi li
tar
ycommanderofauni ttowhichachaplainisassi
gned,
i
nt heabsenceoft helatter,duringmi l
i
tar
yoperationwher ethe
mar ri
ageisinar ti
cul omor ti
s;
1
.5.anyconsul -gener al,consulorvi ceconsulwheret hemar ri
ageis
abroadbet weenFi li
pinociti
zens;
1
.6.mayor s(Local Gover nmentCode)

Absenceofauthor
it
yofthesolemnizi
ngof f
icer-themar r
iageis
voi
d,however,whereeit
herorbot hoft hecont ract
ingpart
ies
bel
ievi
ngi
ngoodf ait
hthatthesolemni
zingof f
icerhadthelegal
aut
hori
tyt
odoso,themar r
iageisval
id(Art
.35,p.2)

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2. A valid mar ri
age li
cense exceptwher e no mar riage li
cense i
s
necessar y:
a. marr i
agein arti
cul
omor ti
s(art
.27)
b.r esi
denceofei t
herorbothpar t
iesar einfarareasandnomeans
oftransportat
iontoappearbefor ethelocalcivi
lregistr
ar;(Ar
t.28)
c. marr i
age among Musl ims oramong member s oft he ethni
c
cult
ural communi ti
es, provided t hey ar e sol emnized in
accordancewi t
hthei
rcustoms ,ri
tes,practi
ces;(Art.33)
d.co- habitat
ion foratl eastfive year s and wi thoutany l egal
i
mpedi ment stomar r
yeachot her;(Art.34)

3. Amar r
iagecer emonywhi chtakespl
acewiththeappearanceof
t
hecont ract
ing part
iesbeforethesol
emnizi
ng of
fi
cerand thei
r
personaldecl ar
ati
ont hatt
heytakeeachotherashusband and
wif
ei nthepresenceofnotl esst
hantwowi
tnessofl
egalage.

Not
et hat“Noprescri
bedf orm orreligi
ousrit
eforthesolemnizati
onof
t
hemar ri
agei srequi
red. Itshallbenecessar yhowever ,contr
acting
par
ti
estoappearper sonall
ybeforet hesolemnizi
ngoffi
ceranddecl are
i
nthepr esenceofnotl essthant wowi tnessesoflegalagethatt hey
t
akeeachot herashusbandandwi fe.”(
Art.6)

Ef
fectofabsenceordef
ecti
nanyoft
her
equi
si
tes:

a.Theabsenceofanyoft
heessent
ialf
orf
ormalr
equi
si
tesshal
lrendert
he
marr
iagevoi
d(Ar
t.4)

Note:CaseofNavar r
ovs.Domagtoy,July19,1996wheret hecourthel
d
that“wherej udgesolemnizi
ngamar riageoutsi
dehiscourt’ ,
thereisar esult
antirr
egul
ari
tyi
nthef ormalrequi
si
te,whi
ch,whileitmay
notaf f
ectthevalidi
tyoft
hemarri
age,maysubj ectt
heoffi
ciat
ingoff
ici
alt
o
admi ni
str
ati
vel i
abil
i
ty.

b.A defectin any ofthe essent


ialr
equi
si
tes shal
lrendert
he mar
ri
age
voi
dable;(
Art
.4,par.2)

c.Anirr
egular
it
yi nthefor
malrequi sit
esshallnotaf
fectthevali
dit
yofthe
marr
iagebutt hepart
yorpar t
iesr esponsi
blefort
hei r
regul
ari
tyshal
lbe
ci
vi
ll
y,cr
iminal
lyandadmini
str
ativelyli
abl
e.(
Ar t
.4par.3)

VOI
DMARRIAGES:
1.Voi
dmar
ri
agesunderAr
t.35

1
.1. t
hosecont
ract
edbyanypar
tybel
ow1
8year
sofage

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1
.2. Those solemnized by any per
son notlegal
l
y author
ized t
o
per
for
m mar r
iages
1
.3. Thosesolemnizedwithoutal
i
cense
1
.4. Thosebigamousorpol ygamousmarri
agesnotfal
l
ingunderArt.
41

Ar
ti
cl
e41r
efer
stoaval
i
dbi
gamousmar
ri
age

1
.5. Thosecontr
actedthroughmi st
akeofonecont
ract
ingpart
yast
o
t
heident
it
yoftheother;and
1
.6. Thosesubsequentmar r
iagesthatar
evoi
dunderArt.53

2. Psychol ogi
calIncapacityofoneorbot hoft hecontr
act
ingpar
ti
esto
per
for
m his orheressenti
almarit
alobli
gat
ions(Art
.36)
3. I ncest
uousmar ri
ages ,whetherther
elat
ionshi
pbetweent
hepart
iesbe
l
egi
ti
mat eori
ll
egit
imate(Art.37)

3.
1 Bet
weenascendant
sanddescendant
sofanydegree;and
3.
2 Bet
weenbrot
hersandsi
ster
s,whet
heroft
heful
lorhalf-
blood

4. Mar
ri
agesdecl
aredvoi
dbyr
easonofpubl
i
cpol
i
cy(
Art
.38)

4.
1.Bet ween col l
ater al blood r elati
ves, whet her legit
imat
e or
i
ll
egit
imate,up t othef ourt
hcivildegree;
4.
2.Bet weenst ep-parent sandst ep-chil
dren
4.
3.Bet weenpar ents-in- l
awandchi l
dren-in-l
aw
4.
4.Bet weentheadopt i
ngpar entandt headopt edchil
d;
4.
5.Bet weent hesur vivingspouseoft headopt i
ngpar entsandt he
adoptedchil
d;
4.
6.Bet ween the sur viving spouse oft he adopt ed chil
d and the
adopter;
4.
7.Bet weenanadopt edchildandal egit
imatechildoftheadopter
4.
8.Bet weentheadopt edchildr
enoft hesameadopt er
4.
9.Bet weenpar ti
eswher eone,wi t
ht heintent
iontomar rytheother
,
ki
ll
edthatotherperson’

5. Mar r
iagesunderArt
.40
“The absol
ute nul
li
ty ofa pr
evi
ous mar
ri
age may be i
nvoked f
or
purposesofremarri
ageonthebasi
sofafi
nalj
udgmentdecl
ari
ngsuch
previ
ousmar ri
agevoid.

6. Marr
iagesunderAr
t.44

Ifbothspousesoft hesubsequentmar riageactedi
nbadf ai
th,sai
d
marr
iage shal
lbe void ab i
nit
io and al
ldonati
onsbyreason ofthe

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marr
iageandtest
amentarydisposi
ti
onsmadebyonei
nfavoroft
he
ot
herarer
evokedbyoperati
onoflaw.”

7. Fail
uretocomplywi t
hther ecordingrequir
ements underArt.52(Art
.
53)
Eit
heroftheformerspousesmaymar r
yagai naf
tercomplyi
ngwiththe
requi
rementsinArt
.52;otherwise,thesubsequentmarr
iageisvoi
d.

“Thejudgmentofannul mentorofabsolutenul
l
ityofthemar ri
age,t
he
part
it
ion and di
str
ibuti
on ofthe pr
operti
esoft he spouses,and t
he
deli
veryofthechil
dren’
appropri
ateci
vil
regist
ryandregi
stri
esofproper
ty.(Art.52)

VOI
DABLEMARRI
AGES(
Art
.45)

KI
NDS:
1.Nopar ent
alconsentf oracont r
act i
ngpar tywhoi s18year sofageorover
butbelow21year sofage;
2.Unsoundmi nd
3.Consentwasobt ainedthroughf raud
3.
1 Non- disclosureofapr eviousconvi ct
ionbyf i
nalj
udgmentofa
cri
mei nvol vi
ngmor al
turpitude
3.
2 Conceal mentbyt he wi f
e oft he factthatatt he t
ime ofthe
mar r
iage,shewaspr egnantbyamanot herthanherhusband
3.
3 Conceal mentofsexual lytransmissibl
edisease,regardl
essofit
s
nature,existi
ngatt hetimeoft hemar r
iage;or
3.
4 Conceal ment of dr ug addi ction, habitual al
coholi
sm, or
homosexual i
tyorlesbianism exi
stingatthetimeofthemar ri
age

No othermi sr
epresentat
ion ordeceitasto character
,heal
th,
rank,for
tuneorchast i
tyshallconst
it
utesuchfraudaswi l
lgi
ve
groundsforacti
onfortheannulmentofmar r
iage.(
Art.46)

4. Consentwasobt ai
nedbyf or
ce,i
nti
midat
ion,orunduei
nfl
uence
5. Physi
cali ncapabil
it
yt o consummat ethe marri
age which appear
s
i
ncurable
6. Aff
li
cti
onwi thasexuallytr
ansmissi
bledi
seasefoundtobeseriousand
appearstobei ncurabl
e

MARRI
AGEUNDERARTI
CLE26

Al
lmarri
agessol
emni
zedoutsi
deofthePhili
ppines,i
naccor
dancewit
h
t
hel
aws i
nf or
ceinthecount
rywheret heyar esolemni
zed,and val
i
d
t
her
eassuch,shal
l al
sobevali
dint
hePhi l
i
ppinesexcept
:

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7.thosecontr
actedbyanypar t
ybel ow18yearsofage
8.Thosebigamousorpol ygamousmar ri
agesnotfal
l
ingunderArt
.41
9.Those contr
acted thr
ough mi st
ake ofone contr
acti
ng par
tyastot
he
ident
it
yoftheother;and
10.
Thosesubsequentmar ri
agesthatarevoi
dunderAr t
.53

Ar
t.26,2ndpar
.:

“Where a mar
ri
age between A Fi
l
ipi
no cit
izen and a f
oreigneri
s vali
dly
cel
ebrat
edandadi vorceisther
eaft
erval
idl
yobt ainedabroadbyt heali
en
spous
ecapacit
ati
nghim orhertoremarr
y,theFi l
ipi
nospouseshallli
kewi
se
havecapaci
tyt
oremarry”

DONATI
ONSBYREASONOFMARRI AGE–thosemadebeforet
hecel
ebrat
ionof
t
hemarri
age, inconsi
der
ati
onoft
hesame,andi
nfavororoneorbot
hoft he
f
utur
espouses(
Art
.82)

Limit
ati
on–I fthefut
urespousesagreeuponar egimeot herthantheACP,
theycannotdonatetoeachotheri
nthei
rmarr
iagesettlementsmor ethan1
/5
ofthei
rpresentpr
opert
y.Anyexcessshal
lbeconsideredvoid.(
Ar t
.84)

REVOCATIONOFDONATI ONBYREASONOFMARRI AGE:( Ar


t.86)DPNmay
ber
evoke byt hedonori nthefoll
owingcases:
1.Ifthemar ri
agei snotcel ebrated orjudi
cial
l
ydecl ared voi d ani ni
ti
o
exceptdonat i
onsmadei nthemar ri
agesettlements,whi chi nt hese
casesar econsi der
edvoi dift
hemar r
iagedoesnott akeplace.
2.Whent hemar r
iaget akesplacewi t
houttheconsentoft hepar entsor
guardian,asr equir
edbyl aw;
3.Whent hemar ri
agei sannull
ed,andt hedoneeact edinbadf ai
th;
4.Uponl egal separat
ion,thedoneebei ngtheguiltyspouse
5.Ifi
tiswi t
har esolut
or ycondit
ionandt hecondi
tioniscompl i
edwi th
6.Whent hedoneehascommi t
tedanactofi ngrati
tudeaspr ovidedi nthe
provisi
onsoft heCi vil
Codeondonat i
onsingener al
.

PROPERTYRELATI ONS
Ki
nds:
b.AbsoluteCommuni tyPropert
y
c.Conjugal Par
tner
shipofGains
d.Compl eteSeparati
onofPropert
y
e.Anyot herregi
me

MARRI
AGESETTLEMENT;For
m andModi
fi
cat
ion(
Art
.76and77)
a.Mustbeinwri
ti
ng

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b.Signedbytheparti
es
c.Executedbefor
ethemar ri
age
d. Anysubsequentmodif
icati
onmustbemadebef
oret
hecel
ebr
ati
onoft
he
marr
iage

ABSOLUTECOMMUNITYOFPROPERTY
WhenACPgover
nsproper
tyr
egi
meoft
hespouses:

1.whent
hespouseshaveent er
edint
omar ri
agewithouthavingchosen
any pr
opert
yregi me;
2.whent
hepropert
yr egi
mechoseni
svoid
3.whent
hechooset heACPtogovernthei
rproper
tyrelat
ionsdur
ingthe
marri
age

*
Whatconst
it
utesCommuni
tyPr
oper
ty

Consi
sts ofal
lthe pr
oper
ty owned by the spouses att
he t
ime oft
he
cel
ebrat
ionoft
hemarri
ageoracqui
redther
eaft
er.(Art
.91)

Presumpt
ionofpr
opert
yacquir
eddur
ingt
hemar
ri
age,i
sthati
tbel
ongst
othe
communit
ypropert
y(Art
.93)

Winni
ngsi
sgameofchance,bet
ti
ngoranyot herki
ndofgambl
i
ngbutnot
l
osseswhi
chshal
lbebor
nebyt
heloser
.(Ar
t.95)

*
Excl
udedf
rom ACP

1.Pr opert
y acqui
red duri
ng the marri
age by gr
atui
tousti
tl
e by ei
ther
spouse,and t he f
rui
ts as wellas t
he income t
hereof,ifany,unl
ess
expressl
ypr ovi
dedbyt hedonor ,t
est
atororgrant
orthattheyshal
lform
partoftheACP

2.Pr
opertyforpersonalandexcl
usi
veuseofeitherspouse.However
,
j
ewel
ryshal
lfor
m partofthecommuni
typr
oper
ty;

3.Property acqui
red bef
oret
he mar
ri
age by ei
therspouse who has
l
egi
ti
matedescendant sbyafor
mermarri
age,andt
hef r
uit
saswellasthe
i
ncomet hereof;

CONJUGALPARTNERSHI
POFGAI
NS

Concept:The husband and wi


fe pl
ace in a common fund t
he proceeds,
pr
oducts,f
rui
tsandi ncomefr
om thei
rseparat
epr oper
ti
esandthoseacquir
ed
byeitherorbot h spousest
hrough thei
reffort
sorbychance,and upon

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0
di
ssolut
ionoft hemar r
iageorofthepar t
nership,t
henetgainsorbenef
it
s
obt
ainedbyei therorbothspousesshallbedi vi
dedequal
lybet
weenthem,
unl
essot her
wiseagreedinthemarr
iagesett
lement.(
Art
.105)

- Whatf
ormsPar
tofCPG–

1.Allpropert
y acquir
ed dur
ing t
he marri
age,whetherthe acqui
sit
ion
appearstohavebeenmade,cont r
act
edorr egi
ster
edinthenameofone
orbothspouses,i
spresumedtobeconjugalunl
essthecont
rar
yisproved.
(Ar
t.116)

2.Ar
t.1
17

1
.t hoseacqui
redbyoneroust
it
leddur
ingt
hemar
ri
ageatt
heexpense
ofthecommonf und;

2.Thoseobtainedf
rom thel
abor
,indust
ry,wor
korpr
ofessi
onofei
ther
orbothofthespouses;

3.The fr
uit
s,natural
,indust
ri
al
,orcivildue orrecei
ved duri
ng the
marri
agef rom t
hecommonpr oper
ty,aswellasthenetfr
uit
sfrom
theexcl
usiveproper
tyofeachspouse;

4.Theshareofeitherspousei
nthehi ddentreasur
ewhicht helaw
awardstothefi
nderorowneroftheproper
tywher et
hetreasur
eis
found;
5.Thoseacquir
edthr
oughoccupat
ionsuchasfi
shingorhunt
ing;

6.Li
vestockexi
sti
ngupont
hedissol
uti
onofthepart
nershi
pinexcess
ofthe numberofeach ki
nd broughtt
ot he marr
iage by ei
ther
spouse;and

7.Those which ar
e acquired by chance,such as wi
nni
ngs f
rom
gamblingorbett
ing.Lossesshal
lbebor neexcl
usi
vel
ybythel
oser
-
spouse.

3. Wheneveranamountorcr editpayablewi
thi
naper i
odoft i
mebelongs
to one ofthe spouses,the sumswhi ch maybe col l
ected dur
ing t
he
mar ri
age i
n part
ialpaymentsori nstal
lment
son t he pr
inci
palshallbe
exclusi
vepropert
yofthespouse.However ,i
nterestfal
l
ingduedur i
ngthe
mar ri
ageonthepr i
nci
palshal
lbel
ongt otheconjugalpart
nershi
p.(Art
.119)

4.Art.120Ownershi
pofi
mprovement
smadeonthesepar
ateproper
tyof
thespousesatt
heexpenseofthepar
tner
shi
poref
for
tsofeit
herorboth

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1
spousesdepending oncostofimprovementmadebyt heCP and the
resul
ti
ngi
ncreaseinvalue. I
fiti
smor et
hantheval
ueofthepropert
yat
theti
meofimprovement ,t
heenti
repr
opert
yofonespouseshal
lbel
ongto
theCPG.(Ar
t.120)

- Excl
udedf
rom t
heCPG

a.Thatwhichi
sbroughttothemar r
iageashisorherown;
b.Thatwhicheachacquiresduri
ngthemar r
iagebygrat
uit
oustit
le;
c.Thatwhi ch i
sacquired byr i
ghtofr edempti
on,bybar terorby
exchangewith propertybel
ongingtoonlyoneofthespouses;and
d.Thatwhichispurchasedwi t
hexclusi
vemoneyoft hewi f
eoroft he
hus
band ( Ar
t.109)

- Di
ssol
uti
onoft
heCPG;samegr
oundsasi
ntheACP(
Art
.126)

COMPLETESEPARATI
ONOFPROPERTY

PROPERTYREGI
MEORUNI
ONSWI
THOUTMARRI
AGE

Art
.147.Whenamanandawomanwhoar ecapaci
tatedtomarryeachother
,
l
iveexcl
usivel
ywitheachotherashusbandandwi f
e,wi t
houtthebenef
itor
marri
ageorunderavoi dmarr
iage,t
hei
rwagesandsal ar
iesshal
lbeownedby
t
hem inequalsharesandtheproper
tyacqui
red bybothofthem thr
ought
heir
workorindust
ryshall
begovernedbytherul
esonco- ownershi
p.Xxx

Whenonl yoneoftheparti
estoavoidmar ri
ageisingoodfait
h,theshareof
thepart
yinbadf ai
thintheco-ownershipshal
lbef or
fei
tedinfavoroftheir
commonchi l
dren,i
ndefaul
toforwaiverofal
lofthecommonchi l
drenortheir
descendant
s,each vacantshar
e shallbel
ong t othe r
especti
ve sur
vivi
ng
descendant
s.Intheabsenceofdescendants,suchshareshal
lbelongtothe
i
nnocentpart
y.

 Rel
ati
onshi
psi
ncl
udedunderAr
t.1
47:

1. themanandt hewomanmust(a)becapaci
tat
edt
omarryeach
ot
her;(b)li
veexclusi
vel
ywi t
heachot
herashusbandandwif
e;and)c)be
wi
thoutthebenef
itofmarri
age;

2. Voi
dmar
ri
agesunder
:

(
a)Ar
ti
cl
es36(
psychol
ogi
cal
incapaci
ty;

(
b)Ar
t.44mar
ri
agewher
etheabsentspousehasbeendecl
ared

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2
presumpti
vel
ydeadandthepr
esentspouseaswel he2nd spouseoft
last he
subsequentmar
ri
agear
einbadfai
th;and

© Ar
t.53.Fai
l
uret
ocompl
ywi
tht
her
ecor
dingr
equi
rement
s
af
teramar
ri
agei
sdecl
aredvoi
d

Art.148.I ncasesofcohabi tat


ionnotfal
l
ingunderAr t
.147,onl yproper
ti
es
acquiredbybot hofthepar t
iesthrought
heiractual
joi
ntcont
ri
butionofmoney,
property,ori
ndustryshallbeownedbyt hem incommoni nproporti
ontothei
r
respectivecontr
ibuti
ons.Int heabsenceofpr oof,thei
rcontr
ibuti
onshallbe
deemedequal .

Inoneofthepar t
iesi
sval
i
dlymarri
edt oanot
her ,hi
sorhershareint he
co-ownershi
pshallaccr
uetotheACPorCPGexi st
ingi nsuchvali
dmar r
iage.
Ift
hepar t
ywhoact edinbadfai
thisnotval
idlymarri
edt oanother,hi
sorher
shareshal
lbefor
feit
edinthemannerprovi
dedi nar
t.147.

 Rel
ati
onshi
psi
ncl
udedunderAr
t.1
48:

1
. amanandawomanl ivi
ngtoget
herashusbandandwi f
e,wi
thout
he benef i
tofmarri
age,butareNOTCAPACI TATEDtomar r
y;
2. anadulterousrel
ati
onship;
3. abigamousorpol ygamousmar ri
age;
4. i
ncestuousvoidmar ri
agesunderArt
.37;and
5. voi
dmar r
iagesbyreasonofpubli
cpoli
cyunderArt.38

PATERNI
TYANDFI
LIATI
ON

Legit
imatechil
dren-Chil
drenconcei
vedorbor
ndur
ingt
hemar
ri
ageoft
he
par
entsare legit
imat
e.(
Art.1
64)

Il
l
egi
ti
mateChil
dren-Childrenconcei
vedand bor
nout
sideavali
dmar r
iage
ar
e i
ll
egi
ti
mate;unl
essotherwi
seprovi
dedbyt
heFami
lycode.(
Art.1
65)

Legit
imatedChil
dren-Onl
ychil
drenconceivedandbornout si
dewedlockof
parentswho,att
hetimeoftheconcepti
onoftheformer
,werenotdisqual
i
fi
ed
byanyi mpedi
menttomarryeachothermaybel egi
ti
mated.(
Art
.177)

NOTE:R. A.9858 amended Ar ti


cle1 77 ofthe Famil
y Code,“ Chi
ldr
en
concei
vedand born out
side ofwedl ock ofpar ents who,att he ti
me of
concepti
onoft hefor
mer, werenotdi squali
fi
edbyanyi mpedimentt omar r
y
eachother,orweresodisqual
ifi
ed onl
ybecause ei therorboth oft hem were
bel
ow1 8year sofage,maybe legit
imated.”( passedonOctober13,2009)

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3
Legi
ti
mati
onshal
lt
akepl
acebyasubsequentval
idmarr
iagebet
weenpar ent
s.
Theannul
mentofavoidabl
emarr
iageshallnotaf
fectthel
egi
timat
ion.(Ar
t.
178)

Theeff
ect
sofl
egi
ti
mat
ionshal
lret
roactt
othet
imeoft
hechi
l
d’ .(
Art
.
180)

ADOPTEDCHILDREN
Purel
yper
sonal
bet
weent
headopt
edchi
l
dandt
headopt
edpar
ent
.

I
MPUGNI
NGTHELEGI
TIMACYOFACHI
LD

Ar
t.166.Legi
ti
macy ofa chi
l
d may be i
mpugned onl
y on t
he f
oll
owi
ng
gr
ounds:

1
.) Thati twas physical
l
yi mpossibl
ef ort he husband t
o have sexual
i
nter
cour
sewithhi swif
ewi thinthefir
st1 20 daysoft he300 dayswhich
i
mmediatel
ypreceded t
hebirthofthechil
dbecauseof :

a.
) t
he physi
calincapaci
tyofthe husband t
o have sexual
i
nter
cour
se wit
hhiswife;

b.
) t
hef
actt
hatt
hehusbandandwi f
ewerel
ivi
ngseparatel
yin
sucha wayt
hatsexual
int
ercour
sewasnotpossi
ble;

c.
) ser
iousi
l
lnessofthehusband,whi
chabsol
utel
ypr
event
ed
sexual i
nter
course;

2.) Thatitisprovedthatforbi
ologi
calorothersci
enti
fi
creasons,t
hechil
d
coul
dnothavebeent hatofthehusband,exceptintheinst
anceprovidedi
n
thesecondpar.OfArt
.164;or

3.
) Thati ncaseofchi ldrenconcei vedthr
oughar ti
fi
ciali
nseminat
ion,the
wri
tt
en aut
horizati
on orrat
if
icati
on ofwi t
herpar entwasobt ai
ned through
mist
ake,f
raud,viol
ence,i
nti
mi dat
ion,orundueinf
luence.

Wherethehusbandwasabletopr oveanyoft hegroundsenumeratedabove,


thechi
l
dwi l
lnei
therbeconsi
deredl egit
imat
eorill
egit
imateinsofarashei s
concer
nedbecausetheyarenotrelatedtoeachother.Insofarast
hemot her
i
sconcerned,t
hechil
dwil
lbeconsi deredheri
ll
egi
ti
mat echi
ld.

Art
.167.Thechi ldshal
lbeconsider
edl
egi
ti
mat
eal
thought hemothermay
have declar
ed agai
nsti
tslegi
ti
macyormayhave been sent
enced asan
adul
teress.

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FAMI
LYHOME–wheni
sitdeemedconst
it
uted?

Afamilyhomei sdeemedconst i
tut
edonahouseandl otfr
om theti
mei ti
s
occupi
ed asa fami l
yresi
dence;thereisno need t
o consti
tut
ethe same
j
udici
al
lyorext
raj
udici
aly.Ver
l sonlavs.CA,497SCRA385

i
i
i.Pr
oper
ty

 Abui l
dingisbyi t
selfanimmovableproper
tyirr
especti
veofwhetherornot
saidst
ructur
eandt helandonwhichiti
sadheredtobelongt
othesameowner .
Hence,aval i
dr ealestat
emortgagecanbeconst i
tut
edonlyonthebuil
ding
erect
edont helandbelongingt
oanother.

 Chattelmor t
gageonr ealpropert
y–Undercer tainconditi
ons,aproper tymay
have a char acter differ
entf r
om t hatpr ovided i n Art
icl
e 415 and 41 6
(enumer at
ionsofi mmovabl e and movabl e properti
es). The par t
iest oa
contractofchattelmortgagemay,byagr eement ,treataspersonalthatwhi ch
bynat urewoul dber eal,i.
e.buil
dingwhi chbyi tsnatureisconsider edreal
property.Saidchattelmortgageoverabui ldingisbindingbetweent hepar t
ies
tosaidagr eement sincet heyareest oppedf r
om cl ai
mingot her
wise. Wi th
respecttothirdpersons,notpart
iestot hecont r
act,thebuildi
ngisconsi der
ed
i
mmovabl eproperty.

 Machinery,receptacles,inst
ruments,ori mplements– Themachi nery,et c.
mustbepl acedbyt heowneroft hetenementorhi sagentt obeconsi dered
asimmovabl e proper t
y. Machi neryismovabl e by nature and becomes
i
mmobi li
zedonlywhenpl acedonapl antbyt heowneroft hepropertyorplant,
butnotsowhenpl acedbyat enant
,us uf
ructuar
y,oraper sonhavingonlya
temporaryri
ght,unlesssuchper sonactedasanagentoft heowner .

Thus,wher eat enantplacest hemachi neryundert heexpresspr ovisi


onof
l
easet hatitshallbecomepar toft heplantbelongingtot heownerupont he
ter
mi nati
onoft hel easewit
houtcompensat i
ont othelessee,thet enantacts
asanagentoft heownerandt heimmobi li
zati
onofthemachi ner yt
akespl ace
byr easonofper manentdest inati
ontot hemachi nery. Butiftheat t
achment
orimmobi li
zat
ioni sfort
heuseoft helesseewhi chdoesnotinuret othelessor
attheendoft hel easecontract,t
heni tr
emai nspersonalproperty.

Fort
hemachiner
y,etc.tobeconsider
edi
mmovabl
epropert
y,sai
dmachinery,
et
c.musttenddi
rect
lytomeettheneedsoft
hei
ndust
ryorworkscarr
iedonin
abuil
dingoronapi eceland. Themovabl
e(machi
nery,et
c.)mustfi
rstbe

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“essent
ial
l
yandpri
ncipal
element sofanindust
ryorworkswit
houtwhi
ch,such
i
ndus t
ryorworkswoul d be unablet ofuncti
on orcarr
yon the i
ndustr
ial
purposeforwhi
chitwasestabl
ished.”

Wher ethemovablesaremer elyinci


dentale.
g.cashr egister
s,typewri
ter
s
foundinhotel
sandrest
aurant
saremer el
yinci
dent
alforthesebusinessescan
conti
nueorcarryonthei
rfunct
ionswit
houttheseequipment sandthusretai
n
thei
rnatur
easmovablepropert
y.

 OWNERSHI
P–Li
mit
ati
onsont
her
ightofowner
shi
p:

1.thoseimposedbyt hestateint heexerci


seoft hepoweroft axati
on,
poli
cepowerandpowerofemi nentdomain;
2.thoseimposedbyl aw suchasl egaleasementandt her equir
ementof
l
egiti
mesuccession;
3.thoseimposedbyt hegr ant
oroft hepropert
yont hegrantee,eit
herby
contracte.
g.donat
ion,orbylastwi l
l
;
4.those imposed byt he ownerhi msel
fsuch asvol untaryeasement ,
mor t
gage,pledgeandlease;and
5.thoseimposedbyt heConst i
tut
ione.g.prohi
bit
ionofali
enationinfavor
ofali
ens

 Art
icl
e441.t
otheownerbel
ongsthenatur
al,i
ndust
ri
alandci
vil
frui
ts.Thusal
l
fr
uit
sbelongtotheownerofat hi
ng.Excepti
ons;aperson,otherthanthe
ownerofaproper
ty,ownst
hefr
uit
sther
eof:

a. possessi
oningoodfait
hbyanother– t
hepossessori
ngood
f
ait
hi senti
tl
edtothefr
uit
srecei
vedbefor
ethepossessi
oni
s
l
egall
yint
err
upted(
Art
.544)
;

b. usufr
uct– the usuf
ructuar
yisent
it
led t
o al
lthe f
rui
tsoft
he
propert
yinusuf
ruct(
Art.566);

c. l
easeofr ur
allands–thelesseei
senti
tl
edtothefr
uit
softheland
t
ogetherwiththeowner,getti
ngt
hecivi
lfr
uit
sint
heform ofr
ents
pai
dbyt helessee;(
Art
.1680and1 654)
;

d. pl
edge – t
he pl
edge isent
it
led t
or ecei
ve the f
rui
ts,i
ncome,
di
vi
dends,print
erest
swhichthepledgeearnsorpr oducesbut
wi
ththeobli
gati
ont ocompensateorset-offwhather ecei
ves
wi
ththosewhi
char eowi
nghim.(Art
.2102);
;

e. ant
ichr
esi
s–thecr
edi
toracquirest
heri
ghtt
orecei
vethef
rui
tsof
ani
mmovableofhi
sdebtor,butwit
htheobl
i
gati
ontoappl
ythem,

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6
f
ir
st,t
otheint
eresti
fowi
ng,andt
hent
othepr
inci
palamountof
t
hecredi
t.(
Art
.2132)

 Whent hef r
uit
sorcr ophaveal readybeengat heredorhar vest
edwhent he
ownerr ecoversthepossession,t hepossessori nbadf ait
hshallreturnthe
frui
tsgathered buthast he ri
ghtt o deductthe expensesofpl ant
ing and
harvest
ing.Apossessorinbadf aithorgoodf ait
hisenti
tl
edt orei
mbur sement
forthenecessaryexpensesofpr eservat
ionoftheland(Art.452);

 Thegoodf ai
thorbadf ai
thofthepossessori smat er
ialwher
ethefrui
tsaresti
l
l
pending (
ungathered)atthe time he gave up hi spossessi
on. A builder
,
plant
erorsower,inbadf ai
thhasnor ightofreimbursementforexpenses,nor
tothefrui
ts.Theownerget sthef r
uitswithoutindemnitybythepri
ncipl
eof
accessi
on cont i
nua. But t he poss essor in bad f ai
th i
s entit
led to
reimbur
sementf orthenecessaryexpensesofpr eservati
onoft
heland.

 Art.449.Bui l
der,sower,orplanter(BPS)inBadf ait
h–TheBPSFORFEI TS
whathehasbui lt
,plantedorsownwi t
hout anyrighttobepai dindemni t
y
therefore.Hei s,however,enti
tl
edt orei
mbursementf ornecessar
yexpenses
ofpr eservat
ionoft helandincur
redbyhi m(Art
.452)butwi t
houttherightof
retenti
onunt i
lrei
mbur sementwhichi sgivent
oapossessori ngoodf ai
th(Art.
546)

-I ftheproductshaveal readybeengat hered(separatedfr


om thel
and)
byt hebuilder,pl
anterorsowerandt heyareor dereddeli
veredtothe
owneroft he l
and,t he bui l
deret c.should be r eimbur
sed forthe
expensesi ncurr
edf ortheproduct i
on,gat her
ingandpr eser
vati
onofthe
frui
ts(Art
.443)i fthecr opisst i
llstandingorgr owing atthetimethe
owneroft helandrecover sit,theplanterinbadf ai
thlosest
hem wit
hout
therightt
oanyi ndemni ty(Art.449).

 Accr
eti
onsaf
fect
ingl
andsr
egi
ster
edundert
heTor
renssyst
em:

- I
ncaseofdi minuti
onofar ea–accr et
ionar enatur
alincidentstoland
borderi
ng onr unni
ng riversorst r
eamsandar enotaf fectedbyt he
regi
str
ati
on law. Hence,r egi
str
ation does notpr otectt he r
iparian
owneragai nstdiminuti
onoft hear eaofhi slandthrought hegr adual
changesint hecour seoft headjoiningst r
eam.Accr et
ionswhi cht he
banksofr iver
smaygr aduall
yreceivef r
om theeffectoft hecurrent
becomest heproper t
yoft heownersoft hebanks.

- I
n case ofincr
eas
ei n ar
ea – al
though an al
l
uvion i
sautomati
cal
l
y
ownedbyt heri
par
ianownerfr
om themomentt hesoi
ldeposi
tcanbe

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7
seen,i tdoesnotaut omat i
call
ybecomer egister
edl and,justbecause
thel andwhi chr ecei
vessuchaccr etioniscover edbyaTor renstit
le,
therebymaki ngt heall
uvialpropertyimpr escr i
pti
ble. Owner shi
pofa
pieceofl andi sonethingandr egistr
at i
onundert heTor r
enssystem of
thatowner shipi sanother. So,all
uvialdeposi tacquiredbyar i
pari
an
ownerofr egister
edlandbyaccr eti
onmaybesubj ect
edt oacquisi
ti
on
through prescr i
pti
on by a thir
d per son,by f ai
lure ofthe ownert o
registert
hesai daccreti
onwi t
hinthepr escribedper iod.

 CO-
OWNERSHI
P

 Co-
owner
sobl
i
gat
iont
ocont
ri
but
etoexpenses:

1. Pr eservat
ion of the thi
ng co- owned – t he expenses of
pr
eser
vat i
onoft hethi
ng orri
ghtownedi ncommonandt heamountof
t
axesduet hereonshouldbebornebyALL.Aco- ownerwhoadvanced
t
hem has a r i
ghtt o demand reimbursementfrom the other
si n
pr
oport
iont otheirr
especti
veint
erest
sintheco-ownershi
p.Thesear e
NECESSARYEXPENSES

2. Usef ulexpenses–evenifthevalueoft
hecommunitypropertyi
s
ther
ebyincreased,theyarenotcover
ed,thepur
poseofco-owner shi
p
notbeing forpr of
it
,unlesssuch expenseswereincur
red wit
ht he
consentoftheothers.

3. Expenses f orpureluxury ormer e pl


easur
e – are notalso
ref
undable not being f
or preservati
on. However , should any
i
mpr ovements be made to embell
ish t
he thi
ng orri
ghtowned i n
common,t heconsentoftheMAJORI TYoftheco-ownersisrequi
red
andallshal
lcontr
ibut
e.

4. Anyal terati
on made on t he ri
ghtort hing owned i n common
needst heUNANI MOUSCONSENToft heco- owner sandnotamer e
majori
tysi nceact sofal ter
ationisanactofowner shipandnotmer e
administr
at i
on. Al terat
ioni sachangei nt
het hingwhi chinvolvesa
changef rom thest ateoressencei nwhi cht
heot hersbelieveitshould
remain,orwi thdrawaloft het hi
ngfrom t
heuset owhi chtheywi shitto
beint
ended;oranyot hert r
ansformati
onwhichpr ejudicesthecondi t
ion
orsubstanceoft hethi
ngori tsenjoymentbytheot hers.

 SALE MORTGAGE OF COMMON PROPERTY – each co- ownerhas the


absoluter
ighttofr
eelydisposeofhispr
oindivi
soshareandoft hefr
uit
sand
otherbenefi
tsari
si
ngf r
om thatshar
ebutthetransf
ereedoesnotacquir
eany
specifi
cordeterminat
ephysicalpor
ti
onofthewhole,hisr
ightbei
ngli
mitedto

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t
hepor
ti
onwhi
chmaybeal
l
ott
edt
ohi
m upont
hepar
ti
ti
onoft
hepr
oper
ty.

- I
fadeedofsal eappearstoconveyadef i
nit
eorsegr egatedport
ion
oftheproper
tyunderco- ownershi
pthati
sst i
l
lundivi
ded,doesnot
maket hesal
eanul l
i
typerse.Thesal eisvalidsubjectonlyt
ot he
condit
iont
hattheint
erest
sacqui r
edbythevendeemustbel i
mited
tothepartthatmaybeassi gnedtotheco- owner -vendori
nt he
di
visi
onupontheterminat
ionoftheco-ownership.

- Eveniftheco-ownersel lst
hewhol eproper
tyashisown,t hesalei
s
val
idinsofarashi sidealpor ti
onisconcerned unlessthesaleis
author
izedbytheot herco- owners.Sinceaco- ownerisenti
tl
edto
sel
lhisundivi
dedshar e,asal eoftheentir
epr opert
ybyoneco-
ownerwi l
lonl
ytransfertheright
sofsaidco-ownertothebuyer,and
thebuyerthusbecomesaco- ownerofthepropert
y.

 PARTITION–Ar t
icl
e494gr ant
st heeachco- ownertherightt
odemandatany
ti
me par t
it
ion oft he t
hing owned i n common,i nsofaras his sharei s
concernedf or“
noco- ownershal lbeobli
gedtor emainintheco-owner ship.

The acti
on to demand par t
it
ion isimprescri
pti
ble orcannotbe bar r
ed by
l
achesabsentacl earr
epudiationoftheco- ownershipbyaco- ownercl earl
y
communi catedtotheotherco- owners.

 EXCEPTI
ONt
other
ightt
odemandpar
ti
ti
on:

1
. whentheco-ownershaveagreedtokeept hethingundivi
dedfora
cer
tai
nperi
odoft i
me,notexceedi
ng10year s; whichterm maybe
ext
endedpr
ovidedeachext
ensi
ondoesnotexceed1 0years.

2. whenthepar t
it
ionisprohi
bit
edbyt
hedonorort
est
atorf
oracer
tai
n
per
iodnotexceeding20years;

3. whent hepar
ti
ti
onisprohi
bit
edbylaw i
.e.thecommuni
tyorconj
ugal
propert
yofthehusbandandwi f
e;thef amil
yhome;par
tywall
sand
fences;

4. whenparti
ti
onwouldrendert
hethi
ngunser
viceabl
efort
he usewhich
i
tisint
ended. Theco=ownershi
pinthi
scasemaybet er
mi nat
edin
accor
dancewit
hArti
cl
e498.

5. when anotherco-ownerhas possessed t


he proper
ty as excl
usi
ve
owner and for a peri
od suf
fi
cientto acqui
rei tby prescri
pti
on
(r
epudiat
ionoft
heco- owner
shi
phavingbeensuccessful
)

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9
 REDEMPTI
ONi
nco-
owner
shi
predoundst
othebenef
itofal
l
.

Wher eal otandimprovementwer emor t


gagedbyt hedeceasedpar ents,aco
-owner shipexistedamongt hehei r
sdur i
ngt heperiodgivenbylawt oredeem
thefor eclosedpr opert
y. Redempt ionbyonehei rdur i
ngt hi
speriodwoul d
i
nuret ot hebenef i
tofall.Butwher et hehei rpurchasedt hepropert
yf r
om the
mor t
gagee( towhom t hepr opertywassol datt hef or
eclosuresal
e)af tert
he
redempt ionper i
odhadexpi redandaf terthemor tgageehadconsol idatedits
owner shipandanewt it
lewasi ssuedi nhisname,t her
ewasnol ongeranyco
-owner shipt o speakof . Whent hehei rsal l
owed theoneyearper iod of
redempt iont oexpirewi thoutredeemi ngt hei
rpar ent

permittedt heconsolidati
onofowner shipandt heissuanceofanew t i
tle,t
he
co-owner shi
pwasext i
nguished.

 Aft
erpar t
it
ion,co-ownershipceasest oexi
sts;notr i
ghtoflegalredempt i
on
exi
sts-Wher ethepar t
ys eekingt oredeem i
st heownerofapor t
ional r
eady
determinedandi dent
if
ies,hecannotbeconsi deredaco- ownerand,hence,
hecannotr edeem underAr t.1620ofthe NewCi vilCode.Oncet hepr opert
y
i
s subdi vi
ded and di str
ibuted among t he co-owner s,the communi tyis
consideredt ohavebeent erminatedandtherei snor easontosust ai
nany
ri
ghtoflegal redempti
on.

 Registrat
ioninthenameofco- ownermer el
ycreatesat r
ust–r egistr
ati
onof
l
ands ubj
ectofco- ownershi
pinthenameofoneco- ownerisnotr epudi
ati
on
ofco- ownershipforpurposesofprescr
ipt
ion.Arti
cle494(5)providesthatno
prescript
ion shal
lrun infavourofa co- ownerorco- heirsasl ong ashe
expresslyorimpliedl
yrecognizestheco-ownershi
p.Ther egi
strati
onmer el
y
createdat r
ustinfavourofhisco-owner
s.

 Anor alpar
ti
ti
onamongco- heirsi
sval i
danddoesnotf al
lundert heStatuteof
Frauds–Or alpar
ti
ti
onisvali
dast hereisnol awt hatrequi
redpar ti
ti
onamong
heir
st obeinwr i
ti
ngtobeval i
d.Ther equi r
ementt hatparti
ti
onbeputi na
publi
cdocumentandr egist
eredhasf orit
spur poset heprotect
ionofcr edit
ors
andatt hesamet i
met heprotecti
onoft hehei rsthemselvesagai nsttardy
cl
aims.Par ti
ti
onisnotcoveredbyt heSt atuteofFr audsbecausepar t
it
ionis
notaconveyanceofpr opert
ybutsimpl yasegr egati
onanddesi gnati
onoft he
partoftheproper
tywhichbelongstotheco- owners.

 Possessi
onasaf actcannotber ecognizedatt hesamet i
meint wodi f
ferent
personal
i
ti
esexcepti nthecaseofco- possession–( Ar
t.538)possessionasa
factmaexi statt
hesamet imeintwoormor edi st
inctpersonali
ti
esbut,asa
generalr
ule,thel
aw wi l
lrecogni
zedonlyoneast heact ualorrealpossessor.
Thustheruleonpr ef
erenceofpossessionasf oll
ows:
Ci
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1
. Thepr
esentoract
ual
possessorshal
lbepr
efer
red

IfX,thr
oughf or
ceandinti
midat
ion,ej
ectedY,act
ualpossessor
,from
t
he land,Y willst
il
lbe consi
der
ed ast he pr
esentpossessorand wil
lbe
pr
eferredbecauseXcannotbesaidtohaveacquir
edpossession(
Art
.536)

2. i
ftherearet
wopossessor
sthelongeri
npossessi
on
I
fbothXandYoccupiedapor t
ionofalandbothclai
mingownershi
pof
t
he enti
re par
celofl
and butY wasf ir
stistaki
ng possessi
on,Y shal
lbe
pr
efer
red.

3. I
fthedatesofpossessi
onaret
hesame,thepossessorwit
hat i
tl
ei.e.
r
ightordocumentevi
denci
nghi
sri
ghtt
osuppor
thispossessi
on;and

I
ftheypossessedatt hesamet i
mebutXi sasquat terwhileYi sa
l
essee,pref
erenceshallbeinfavorofY.Thel easecontractwit
ht he
ownerisY’ .
4. i
falltheabovear eequal
,the factofpossessi lbe j
on shal udi
ciall
y
det
ermined,andi nthemeanti
me,t hethi
ngshallbeplacedinjudicial
deposi
t(Art
s.2005-2009)

 USUFRUCT–gi vesarightt
oenj
oytheproper
tyofanotherwit
ht heobl
i
gat
ion
ofpr
eservi
ngit
sform andsubst
ance,unl
esst
hetit
leconsti
tut
ingitort
hel
aw
ot
herwi
seprovi
des(art
.562)

 Obl
i
gat
ionsoft
heusuf
ruct
uar
y:

a.BEFOREt
heU.begi
ns

 t
omakeaninvent
oryoft
hepr
oper
ty;and
 t
ogi
vesecur
it
y

b.dur
ingt
heusuf
ruct

 totakecar eoft heproperty


 toreplacewi t
ht heyoung thereofanimalsthatdieorarelosti
n
certai
ncaseswhent heusufructi
sconsti
tutedonf l
ockorherdof
l
ivestock
 tomakeor dinaryrepair
s
 tonot i
fytheownerofur gentext
raor
dinar
yr epair
s
 to permitwor ksand i mprovementsbyt he naked ownernot
prejudici
altotheusuf r
uctuary
 topayannual taxesandchar gesoftheFRUI TS

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 t
opayi nteres
tonCAPI TALpaidbythenakedowner
 t
opaydebt swhent heusufr
uctisconsti
tut
edont hewholeofa
pat
rimony
 t
os ecurethenakedowner ’ ’
i
ncer t
aincases
 t
o notif
yt he ownerofanypr ej
udi
cialactcommi t
ted byt
hir
d
per
sons;and
 t
opayf orcour texpensesandcostsregardi
ngtheusufr
uct

c.att
het
ermi
nat
ionoft
heusuf
ruct

 toreturnthet hi
nginusufructtot
henakedownerunl essther
eis
ari
ghtofr et
enti
on
 topayl egalint
erestatthetimet hattheusufructlasts,onthe
amountspentbyt heownerf orextraor
dinar
yr epai
rs( Art
.594)
;
andt hepr operint
erestonthesumspai dastaxesbyt heowner
(Ar
t.596) ;and
 toi ndemni f
yt he naked owner f or any losses due t o hi
s
negligenceorofhi str
ansfer
ees(Arts.589-590)

 Whennosecur
it
yisneededt
obegi
venbyt
heusuf
urct
uar
y:

1. thedonorwhohasr
eservedt
heusuf ructoft
hepropert
ydonated;
2. the par
ent
swho arethe usufruct
uariesofthei
rchil
dren’ ,
exceptwhent
heparent
scontractasecond(orsubsequent
)mar r
iage;

3. whenthenakedownerr
enouncesorwai
veshi
sri
ghtt
othei
nvent
oryor
secur
it
y;

4. wher
ethet i
tl
econst
it
uti
ngt
heusuf
ructr
eli
evest
heusuf
ruct
uar
yfr
om
t
heobli
gat
ion;

5. wher
etheusuf
ructuar
yaskst
hathebeexemptf
rom t
heobl
i
gat
ionand
noonewi
ll
beinjur
edther
eby

6. whent heusuf r
uctuaryisunderobl i
gati
ont ogivesecuri
tybutcannot
aff
ordt odosoandnoonei swil
li
ngt ogivesecuri
tyfort
hem,thecourt
onhumaneconsi derati
ons(i
.e.poorf amil
ybadlyinneedofahouse_
mayal low t
heusuf r
uctuarytoenjoythepr opert
yupont aki
nganoat h
–“byvirtueofapr omiseunderoat h”
-t otakecareoftheproper
tyand
ret
ainitunti
ltheterminati
onoftheusuf ruct(Ar
t.612)Il
ieuofgivi
nga
securi
ty.

NOTE:undert
hisi
nst
ance(
no.6)t
heusuf
ruct
uar
ycannotal
i
enat
eor

Ci
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l
easetheproper
tyf
orthi
smeansthathedoesnotneediti
fhedoes
al
ienat
ehi
sr i
ghtofusuf
ruct
. Theoat
hiswhatiscall
ed“CAUCI
ON
JURATORI
A”

i
v.modesofacqui
ri
ngowner
shi
p

A. donat
ion

o Ki
nds:

1. SI
MPLE– ort hatcvauseofwhi
chi
sthepur
eli
ber
ali
tyoft
he
donori
nconsi
der
ati
onofthedonee’

2. r emunat
ory orcompensatory– thatwhi ch i
s given outof
grat
it
udeonaccountoft heservi
cesrendered bythedoneet othe
donor,pr
ovi
dedtheydonotconst
it
uteademandabl edebt
.

3.modal–thatwhi
chi
mposesuponthedoneeaburden(e.
g.ser
vices
tobeperf
ormedint
hef
utur
e)l
essthant
hevalueoft
hegif
t;

4. oner ous–thatthevalueofwhichi
sconsi
deredt
heequi
val
entof
theconsi
derat
ionforwhichiti
sgivenandist
husgover
nedbytherul
es
onobli
gati
onsandcont r
acts(Ar
t.733)

NOTE:Ill
egalori
mpossibl
econdit
ionsinSIMPLEandREMUNATORY
donat
ionsshal
lbeconsi
deredasnotimposed.(
Art
.727)

I
nmodaldonat ions,aburden( whi
chisnecessari
l
yfutur
e)l
essthanthe
val
ueofthegiftisimposedupont hedonee.Ift
heburdenisconsi
dered
the equi
val
entoft he t
hing orri
ghtgiven,then t
he donat
ion i
san
onerousone.

I
fthedonat i
oni sonerous( ormodalast otheonerouspor t
ion)
,the
i
ll
egalori mpossi
ble condit
ion wi
llr
enderthe donati
on voi
d. Being
contr
actualin nat
ure,t he rul
e appl
icabl
e would be Art.1183 on
obl
igati
onsandcontracts.

 REVOCATI
ON OFDONATI ON – af
fect
sthewhol
edonat
ionandi
sal
l
owed
dur
ingt
hel
ifet
imeoft
hedonor
:

1
. bi
rth,appear
ance,oradopti
onofachi
ldoft
hedonorsubsequenttothe
donati
on;
2. non-ful
fi
ll
mentofaresol
utor
ycondi
ti
onimposedbyt
hedonor( Art
.765)

Ci
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3. I
ngr
ati
tudeoft
hedonee(
Art
.765)

 REDUCTION OF DONATI
ON – thi
sgeneral
l
yaf f
ectsapor t
ion onl
yofthe
donat
ionandi
sal
loweddur
ingt
heli
fet
imeofthedonororaf
terhi
sdeath:

1
. fai
lureofthedonort oreservesuf
ficientmeansf orsupportofhi
mselfor
hisdependentrelati
ves(Art.750)
2. fai
lureofthedonort oreservesufficientpropert
ytopayof fhi
sexist
ing
debts(Art
.759)
3. I
nof f
ici
ousness;t
hedonat ionexceedst hatwhichthedonorcangiveby
will(
Art
s.752,771 )
;and
4. bir
th,appearance,oradopt i
onofachi l
doft hedonor(Ar
t.760)

 Whomayaskf orr
eduction? Onl
ythosewhoatthetimeofthedonor ’
haveari
ghttothelegit
imeandt hei
rheir
sandsuccessor
sinint
erestmayask
fort
hereduct
ionofi noff
ici
ousdonati
ons.Theycannotrenouncet hei
rri
ght
duri
ngt
heli
feti
meoft hedonor.(Art
.771)

Donees,deviseesandl egat
eeswhoar enotent
it
ledtothelegi
ti
meandt he
credi
tor
s oft he deceased can nei
therask f
ort he r
educti
on noravai
l
themsel
vesthereof(Ar
t.772)

b. Successi
on

Q:Whati smeantbysuccession?
A:Successionisamodeofacqui si
ti
onbyvir
tueofwhi cht
heproperty,r
ight
sand
obli
gat
ionst
ot heextentoft
heval
ueoftheinheri
tance,ofapersonare
tr
ansmitt
edthroughhisdeatht
oanotherorother
seitherbyhi
swi l
lorby
operat
ionoflaw.(Ar
t.774,NCC)

Q:Whendoessuccessi ont akeplace?


A:Successi
ontakespl ace:
a.Deathoft hedecedent
b.Expresswi l
lofthet est
atorcall
i
ngsuccessi onand/orprovisi
onofl
aw
prescr
ibi
ng successor s
c.Ther i
ghtsorpr operti
essubjectofsuccessionaret r
ansmissibl
e
d.Transfer
eei ssti
llali
ve(didnotpredeceaset hetest
ator)
e.Transfer
eei scapaci t
atedtoinherit
f.Thetransfereeaccept edofthei nheri
tance.(Ar
t.774-777,NCC)

Q:Whatdoest hei
nher i
tanceconsistsof
?
A:Theinher
it
anceincludesall
thepr oper
ty,r
ightsandobli
gat
ionsofaperson
whi
charenotexti
nguishedbyhi sdeathandal sothosewhi
chhaveaccrued
t
heret
osincetheopeningofthesuccession.(Art.776and781,NCC)
Ci
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Q:Wheni stheri
ghtofsuccessi
ont
ransmi
tt
ed?
A:Theri
ghtstothesuccessi
onaret
ransmi
tt
edfr
om t
hemomentoft
hedeat
hof
t
hedecedent.(Art
.777,NCC)

Q:Whatar ethetypesofsuccessi
on?
A:Successi
onmaybe:
(1)Test
amentary;
(2)Legalori
ntestat
e;or
(3)Mixed(Art
.778,NCC)

Q:Defi
netestamentar
ysuccession.
A:Test
amentarysuccessi
onisthatwhichresul
tsf
rom t
hedesignat
ionofanhei
r,
madeinawil
lexecutedintheform pr
escri
bedbylaw.(Art
.779,NCC)

Q:Howi smixedsuccessioneff
ected?
A:Mi xedsuccessi
onisthatef
fectedpart
lybywi
l
landpar
tl
ybyoper
ati
onofl
aw.
(Ar
t.780,NCC)

Q:Whati sawi l
l
?
A:Anactwher ebyaper sonisper
mi t
ted,wit
hthefor
malit
iesprescr
ibedbylaw,
tocontr
ol,t
oacer t
aindegreethedisposi
ti
onofhisest
ate,tot
akeef f
ectaf
terhi
s
death.(Art
.783,NCC)

Q:Mayat est
atordesi
gnat
eanotherpersontomakeawi l
lforhim?
A:No,becausethemakingofawil
l i
sastri
ctl
ypersonalact,hence,itcannotbe
l
efti
nwholeorinpartt
othedi
scret
ionofathirdperson,oraccompl i
shedthrough
t
heinst
rumental
i
tyofanagentoranattor
ney.(Art
.784,NCC)

Q:Whatmaybeent rustedbythetestat
ortoat hir
dperson?
A:Thetestatormayent rustt
oathirdperson,thedist
ri
buti
onofspecif
icpropert
y
orsumsofmoneyt hathemayl eaveingener alt
ospecifi
edclassesorcauses,
andthedesignati
onoft hepersons,i
nsti
tut
ionsorestabli
shmentstowhichsuch
proper
tyorsumsar et obegivenorapplied.(Art.786,NCC)

Q:Doest heinvali
dit
yofoneofsever aldisposi
ti
onscontainedinawi llr
esultin
theinval
i
dityoftheotherdisposi
ti
ons?
A:No.Thei nvali
dit
yofoneofsever aldisposi
ti
onscontainedinawi l
ldoesnot
resul
tintheinval
idi
tyoftheotherdisposi
ti
ons,unlessi
tist
obepr esumedt hatthe
test
atorwouldnothavemadesuchot herdisposi
ti
onsi
fthef i
rsti
nvali
ddisposit
ion
hadnotbeenmade.( Art.792,NCC)

Q:Whati
sther
uleasr
egar
dsaf
ter
-acqui
redpr
oper
ty?

Ci
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A:Pr opert
yacquir
edaftert
hemaki ngofawillshal
lonl
ypassthereby,asifthe
test
atorhadpossessedi
tatt
hetimeofmakingthewi l
l
,shoul
ditexpr
esslyappear
bythewi l
lt
hatsuchwashisi
ntent
ion.(
Art
.793,NCC)

Q:Whatlawgovernst
hevali
dit
yofthewill
?
A:Thevali
dit
yofawil
lastoit
sform dependsupont
heobser
vanceoft
hel
aw i
n
f
orceatt
hetimeiti
smade.(Art
.795,NCC)

Q:Whoar ecapacitat
edtoexecuteawi l
l
?
A:Apersonwhoexecut esawill
mustbe:
Notexpressl
yprohibi
tedbyl
aw
Aged18year soldandabove
Ofsoundmi nd,attheti
meofitsexecuti
on(
Art
.796-
798,NCC)

Q:Wheni sat estat


orof“soundmi nd”?
A:Tobeofsoundmi nd,iti
snotnecessarythatthetest
atorbei nfullpossession
ofal lhisreasoningfacult
ies,ort
hathismindbewhol lyunbroken,uni mpaired,or
unshat ter
edbydi sease,i
njuryorothercause.Itshal
lbesuffi
cientifthet estat
or
wasabl eatt hetimeofmaki ngofthewil
ltoknow thenatureoft heest at
et obe
dispos ed of,t he properobj ect
s ofhi s bounty,and the char acteroft he
testament aryact.(Art
.799,NCC)

Q:Whatistheexcept i
ontothegeneralruleont hepr
esumptionofsoundnessof
mindoft
hetestator?
A:Thesoundnessofmi ndofthetest
atorshallnotbepresumed:
(1)Whenthet estat
or,onemonthorl ess,beforemakinghi swi
llwaspublicl
y
knowntobeinsane;or
(2)Wasunderguar di
anshi
patthet i
meoft hemaki ngoft hewil Tor
l( r
esand
LopezdeBuenov.Lopez,48Phi l
.117;Art.799,NCC)

Q:Whatistheeff
ectofthesuperveningincapaci
tyofthetest
ator?
A:Superveni
ngincapacit
ydoesnoti nvali
dateaneffecti
vewill
,nori
sthewi
l
lof
ani
ncapableval
i
datedbyt hesuperveni
ngofcapacity.(Ar
t.801,NCC)

Q:Whataret herequisi
tesforaval i
dnot arialwil
l
?
A:Aval
idnot ari
alwil
lmustbe:
a.Inwr it
ing
b.Inal anguageordi alectknownt ot het est
ator
c.Subscr ibedatt heendbyt het estatorhimselforbythetest
ator

writt
enbysomeot herper soninhispr esence,andbyhisexpr
essdir
ecti
on
d.Attested&subscr i
bedbyt hr
eeormor ecredi
blewit
nessesi
nthepresence
ofthet estat
orandofoneanot her

Ci
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e.Eachandever ypage,exceptt helast,mustbesi gnedbyt het estat
ororby
t
heper sonrequestedbyhi mt owr i
tehi sname,andbyt hei nstr
ument al
wit
nessesofthewi l
l,ontheleftmargin
f. Eachandever ypageoft hewi l
lmus tbenumber edcor r
elati
velyinl et
ter
s
pl
acedont heupperpar tofeachpage
g.Cont ai
nanat t
estati
onclause,stat
ingt hefollowing:
(
a)Thenumberofpagesuseduponwhi cht hewil
li
swr it
ten
(
b)Thefactthatthetestatorsi
gnedt hewi llandeverypage,orcaused
some otherpersont owrit
ehi sname,underhi sexpr essdirecti
on,
i
nthe presenceofthei nstrument al
witnesses
(
c)Allt
heinstrumentalwi t
nesseswi tnessedandsi gnedt hewi l
landal l
i
tspages inthepresenceoft het estatorandofoneanot her
(
d)Itmustbeacknowl edgedbef oreanot arypubli
cbyt het estatorand
the witnesses.(Art
.804- 806,NCC)

Q:Whatar etheaddit
ionalrequisi
tesofanot ari
alwil
lifthetest
atorbedeafor
deaf-mute?
A:Theaddi t
ionalr
equi
rement sare:
(
1)Testat
ormustpersonall
yr eadthewil
l
,ifabletodoso;
(
2)Otherwise,heshalldesignatetwopersonstoreadi tandcommunicateto
hi
m,in somepr acti
cabl
emanner ,i
tscontents.(
Art
.807,NCC)

Q:Whataretheaddit
ional
requisi
tesofanot
arial
wi l
li
fthetest
atori
sbli
nd?
A:Thewil
lshal
lbereadtothetestat
ortwi
ce:
1.Oncebyoneoft hesubscri
bingwit
nesses
2.Oncebyt henot ar
ypubl i
cbeforewhom t hewi l
lisacknowl
edged.(
Art
.
808,NCC)

Q:I stheuseoft hetestatorofat humbmar ki


nsteadofhi ssignaturevalid?
A:I nonecasedeci dedbyt heSC,i twashel
dt hatsincethet estat
orissuf f
ering
from parti
alpar alysi
s,theactofusi nghismar kinsteadofhi susualsignat ureis
vali
d.I tli
kewisest atedthatthemannerofusi ngamar ki
naut henticat
inghi swil
l
i
samat t
erofpr ef er
ence.Bot ht heuseofasi gnatureorat humbmar ki sgood.
Astatuter equir
ingawi l
ltobe" signed"i
ssati
sfi
edift hesignatureismadebyt he
test
ator'smar k.(Lopezv.Li boro,81Phil
.249)

Q:How abouti ft
het estat
ormakesuseofacr ossasasi gntoauthenti
catethe
wi l
l
,ist hewi l
lbevali
d?
A:I fthe“ cross”asusedi nthewill
toauthenticat
et hesamei stheusualsi
gnature
oft he t estator
,then t he wil
lis val
idf orcompl ying wit
ht he r
equirements
establishedbyl aw. However ,ifthe“cr oss”isnott heusualsi
gnatureoft he
testator,thewi lli
svoi d. Iti
sf orther easont hatacr ossdoesnothavet he
trustwor t
hinessofat humbmar k.(Garci
av.Lacuest a,90Phil.1
89)

Ci
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Q:Whati
st her
esul
tofanunsi
gnedatt
estat
ioncl
ause?
A:Anunsignedat
test
ati
oncl
auseresul
tsinanunattest
edwi
l
l.(
Aluadvs.Al
uad,
Oct
ober17,2008)

Q:Whati sthetwo-f
oldpur
poseofacknowledgementinanotari
alwi
ll
?
A:Theacknowl edgementi
nanot ar
ialwil
lhasatwo-fol
dpurpose:tosaf
eguar
d
the t
estat
or’ ;and t
o assur
et hathisest
ateis
administ
eredinthemannert hatheintendsi obedone.(
tt Leevs,Tambago,
February12,2008)

Q:Whatexcl udest hecoll


ater
alrel
ati
vesfrom succeedi
ngt otheestat
eoft he
decedent?
A:Onl ythe pr esence ofdescendants,ascendants orill
egit
imat
e chil
dren
excl
udescollateralrel
ati
vesfrom succeeding t
othe estat
e ofthe decedent
.
(Car
losvs.Sandoval,574SCRA116)

Q:Yi soneoft het hreeinstrument alwitnessesint hemaki ngoft hewi l


lofX,a
l
awyerand att he same t i
me t he Not ary Publ i
c befor
e whom t he wi l
lis
acknowl edged. I st hewi l
lat t
ested and s ubscribed byatl eastt hreecr edible
witnesses?
A:No. Thenot arypubl icbef orewhom t hewi llwasacknowl edgedcannotbe
consideredast hethirdinstr
ument alwit
nesssi ncehecannotacknowl edgebef ore
himselfhishavingsignedt hewi ll.Toacknowl edgebef oremeanst oavow;t oown
asgenui ne,toassent ,toadmi t;and" bef ore"meansi nfr
ontorpr ecedi ng in
spaceorahead of .Consequent l
y,ifthet hird witnesswer ethenot arypubl i
c
himself,hewoul dhavet oavowassent ,oradmi thi shavingsi
gnedt hewi lli
nf r
ont
ofhi mself
.Thiscannotbedonebecausehecannotspl i
thi
sper sonalityintot wo
sot hatonewi llappearbef oret heot hert oacknowl edgehispar t
icipat i
oni nt he
maki ngoft hewi l
l.Toper mi tsuchasi tuati
ont oobt ai
nwouldbesanct i
oni nga
sheerabsur di
ty.(Cruzv.Vill
as or,54SCRA31 )

Q: Shoul dtheat
test
ati
onclausebeinthedial
ectorlanguageknownbyt he
testat
or?
A:No,becauset heat t
est
ati
onclausedoesnotfor
m partofthetest
ament
ary
disposi
ti
on.

Q:Whatar etheformalit
ieswhi charer equir
edi ntheexecut
ionofaholographi
c
wil
l
?
A:From t
heprovisi
onsofAr t
s.804and81 0oftheNCC,i ti
scleart
hatt
hetestat
or,
i
ntheexecuti
onoft hehol ographi
cwi l
l
,thewi l
lmustbe:
(1)ent
irel
ywr i
tt
enbyt hehandoft hetestat
orhimsel
f;
(2)dat
edbyt hehandoft hetestatorhimself
;
(3)si
gnedbyt hehandoft hetestatorhi
mself;and

Ci
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(
4)executedi
nalanguageordi
alectknownt
othet
est
ator
.
(Art
s.804and810,NCC)

Q:Aret hereexceptionst ot
her ul
et hattheor i
ginalcopyoftheholographicwil
l
shouldbepr esentedt otheprobat
ecour tf
orvisualexaminat
ionbeforeitcanbe
admitt
edt oprobate?
A:Yes .I
tispossibl
et hataphotostati
ccopy,orevenami meographedorcar bon
copymaybesubst i
tutedfortheor i
ginaldocument .Thisi
sso,becausei nthese
cases,compl i
ancewi ththerequir
ement ss t
atedi nArt
icl
e811oft heNCCwoul d
sti
l
lbepossible.(Ganv.Yap,104Phi l.509,August30,1 958)

Q:Howdoyouaut henti
cateaddit
ionaldi
sposi
ti
ons?
A:Toauthent
icateaddit
ionaldi
sposit
ions
,thesamemustbesi
gnedanddat
edby
t
hetest
ator.(
Art.812,NCC)

Q:Whatar et her ul
eswhen,i nahol ographicwi l
l
,t herear edisposit
ionswhi ch
wer enotsignedbyt het estator?
A:Jur i
sprudencepr ovidest hatwhenanumberofdi spositi
onsappear ingi na
hol ographicwi l
lar esi gnedwi thoutbei ngdat edandt hel astdispositi
onhasa
signatureanddat e,suchdat eval i
datest hedispositi
onspr ecedingi t
,what everbe
the t i
me ofpr i
ordi spositi
ons .I n case ofi nsert
ions,cancel l
ation,erasur e or
alterati
onsinahol ogr aphicwi l
l,thet estatormustaut hent i
catethesamebyhi sful
l
signature.Ther equi rement sinAr t
icle81 3,oft heNCC af f
ectt hevalidit
yoft he
dispos it
ioncont ainedi nt hehol ogr aphi cwi l
l
,butnoti tspr obate.I ft
het est
ator
fail
st osignanddat esomeoft hedi sposi t
ions,theresultisthatt hesedispos it
ions
cannotbe ef fect uat ed.Such f ai
lure however ,does notr endert he whol e
testamentvoi d.( Art.81 3,NCC)

Q:Art
icl
e815oft heNCCprovi
desthatwhenaFi li
pinoisinaf or
eigncountr
y,he
i
sauthori
zedt omakeawi l
linanyoft heformsestabl
ishedbyt helaw ofthe
count
ryinwhichhemaybe.Suchwi l
lmaybepr obatedi nthePhil
ippi
nes.I
sthe
l
awmandat ory?
A:No.The Ar t
icl
eis merel
y per
mi ssive.The word“ aut
hori
zed” makes i
t
permi
ssi
ve.(Art
.815,NCC)

Q:Whatlawgovernst
hef ormali
ti
esforwil
lsexecutedbyanali
enabr oad?
A:Anali
enwhoexecut esawi llabr
oadmaymakeawi l
linaccordancewit
hthe
f
ormali
ti
es(ext
ri
nsi
cvali
dit
y)prescri
bedbyt helawof:
(a) Theplaceofhisresi
denceordomi ci
l
e;
(b) Hisowncount r
yornat i
onal
it
y;
(c) ThePhili
ppi
nes;
(d) Thelawoftheplaceofexecut i
on.(Art.1
7,par
.1.;Ar
t.81
6,NCC)

Q:Whyar
ejoi
ntwi
l
lspr
ohi
bit
edi
nthePhi
l
ippi
nes?

Ci
vi
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ewNot
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A:Jointwil
lsarepr ohi
bit
edinthePhi l
ippi
nesbecauset hey:
(
1 ) encour ageundueinfluence,mur der,orattempttokil
lt
heother
because generall
y,j
ointwill
sbenefiteachot her;
(
2) r uncount ertothei
deat hatwill
sarer evocable.Itmakesr
evocati
on
mor e di ff
icul
t.E.g.,t
eari
ngi tupdestroysthewi llofanot
her.
(
3) under minethepersonal el
ementofawi ll
.Itbecomesamultipl
ewil
l.
(Art
.818, NCC)

Q:Whoar equal
if
iedtoactasinstrumentalwitnessest
otheexecuti
onofawill
?
A:Accordi
ngtoAr t
icl
e820oft heNew Ci vi
lCode,awi t
nesstotheexecut
ionof
anordi
narywil
lmusthavethef oll
owingqualif
icati
ons:
(
1) Hemustbeofsoundmi nd;
(
2) Hemustbeof1 8year sofageormor e;
(
3) Hemustnotbebl ind,deaf ,ofdumb;and
(
4) Hemustbeabl etor eadandwr i
te.(Art
.820,NCC)

Q:Whoar edi
squal
if
iedtoactasinstrumentalwi t
nessest ot
heexecut
ionofawil
l
?
A:Thefol
l
owingaredisqual
i
fi
edf rom beingwitnessest oawill
:
(
1) Anypersonnotdomi ci
ledinthePhi l
i
ppi nes;
(
2) Thosewhohavebeenconvi ctedoffalsifi
cati
onofadocument,per
jur
y
orfal
setesti
mony.
(
3) Anypersonwhoi snotofsoundmi nd;
(
4) Anypersonwhoi slessthan1 8yearsofage;
(
5) Anypersonwhoi sbli
nd,deaf ,ordumb;and
(
6) Anypersonwhocannotr eadandwr ite.(Art
s.820and821,NCC)

Q:Whenisasubsequentdocumentacodi ci
landwhenisi
tanot
herwi
l
l?
A: I
tisacodici
lwhenitexpl
ains
,addsto,oral
ter
saprovi
sioni
napri
orwi
l
l.I
tis
anot
herwi
lli
fitmakesanindependentdi
sposi
ti
on.(
Art
.825,NCC)

Q:Ifawi l
l
,executedasrequiredbyt hisNCC,i ncorporatesintoitselfbyr eference
any documentorpaper ,whatr equisi
tes mustbe pr esenti n bef ore such
documentorpaperwi l
lbeconsi der edapar tofthewill
?
A:Suchdocumentorpapershal lbeconsi deredapar toft hewi lli
ft hef ol
lowing
requi
sit
esar epresent:
(1)Thedocumentorpaperr efer r
edt oi nthewillmustbei nexi stenceatt he
ti
meoft heexecutionoft hewi ll
;
(2)Thewi l
lmustclearlydescr ibeandi dentifyt
hesame,st atingamongot her
thi
ngsthenumberofpagest hereof;
(3)I
tmustbei denti
fi
edbycl earandsat i
sfact
orypr oofast hedocumentor
paperreferr
edtotherein;and
(4)I
tmustbesi gnedbyt het estatorandt hewitnessesoneachandever y
page,exceptincaseofvol umi nousbooksofaccountori nvent ori
es.(Art
.
827,NCC)

Ci
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Q:Cantherevocat
ionofawill
bewaived?
A:No,therevocat
ionofawi l
lcanneverbewai
ved.Anywai
verorr
est
ri
cti
onof
t
hisr
ighti
svoid.(
Art.828,NCC)

Q:Howi sawi l
lrevoked?Whatl awgover nsrevocation?
A:I
tdependsupont hepl acewher etherevocati
onismade.
1.Ifdoneout si
det hePhi l
i
ppines:
a.I
fthetest atorisnotdomi ci
l
edi nthePhil
ippines:
i
.Thel awoft heplacewher ethewill
wasmade;or
ii
.Thel awoft heplacewher ethetestatorwasdomi ci
l
edatthet
ime
oft her evocation
b.I
fthet estatorisdomi ci
l
edinthePhi l
i
ppines:
(i)Phi li
ppinelawbecausehi sdomi cil
eishere;or
(ii
)Lawoft heplaceofrevocati
onpur suanttoArt
.17,NCC

2.I
fdonei
nthePhi
l
ippi
nes
,fol
l
owPhi
l
ippi
nel
aw.(
Art
.829,NCC)

Q:Whati sdest
ruct
ionofthewillwhichi
scont
emplatedinordertoconsi
dert
he
wil
lrevokedbydestr
ucti
on?
A:Theremustbeaphysi caldest
ruct
ionoft
hewil
li
tsel
f.(
Art.830,NCC)

Q:I ft
het est
atort
otal
l
ydestroyedt
hewil
landhechangedhismind,i
sther
e
revocat
ion?
A:Yes.Theactwasal r
eadyconsummat
ed.Hisr
emedyi
stoexecut
eanot
herwi
ll
.
(Art
.830,NCC)

Q:Whatisthediff
erencebetweenani nvali
dwil
landaval
i
dbuti
nef
fect
ivewi
l
l?
A:An invali
dr evoki
ng willcannotr evoke anot
herwil
l
.Buta val
idthough
i
nef
fect
ivewillcanrevoke.(
Art.832,NCC)

Q:Whatis‘
republ
i
cati
on’?
A:I
tist
heprocessofre-establ
i
shingawill
,whi
chhasbecomeusel
essbecausei
t
wasvoi
d,orhadbeenr evoked.(Art
.835,NCC)

Q:Howi sr
epubl
icati
onmade?
A:Republi
cat
ion maybe made by:a)r
e-execut
ion oft
he or
igi
nalwi
l
l;orb)
execut
ionofacodici
l
.(Ar
t.835,NCC)

Q:Whati st
heeff
ectoftheal
l
owanceofawil
l
?
A:Subjecttotherightofappeal
,theal
l
owanceofthewill
,eit
herdur
ing t
he
l
if
eti
me oft he t
est
atororafterhi
sdeat
h,shal
lbe concl
usi
ve astoitsdue
execut
ion.(
Art
.838,NCC)

Ci
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Q:Whatar ethegr oundsf ort hedisal
lowanceofawi l
l?
A:Ar t
icle839oft heNew Ci vilCodepr ovides“ Thewi l
lshallbedi sall
owedi nany
ofthef oll
owi ngcases:
(1)I fthef ormal i
ti
esrequiredbyl awhavenotbeencompl i
edwi t
h;
(2)I fthet estatorwasi nsane,orot herwisement allyincapableofmaki ngawil
l,
atthe t imeofi tsexecut i
on;
(3)I fitwasexecut edthroughf orceorunderdur ess,orthei nfl
uenceoff ear
,
orthreat s;
(4)I fitwaspr ocur edbyundueandi mpr operpr essur eandi nfl
uence,ont he
partoft he benefici
aryorofsomeot herper son;
(5)I fthesi gnatureofthet est
atorwaspr ocur edbyf raud;
(6) I fthet estatoractedbymi st
akeordi dnoti ntendt hatthei nstr
umenthe
si
gned shoul dbehi swillatthetimeofaf f
ixi
nghi ssi gnaturethereto.

Thi
senumerat
ioni
sexcl
usi
ve.Theyeit
hermaket
hewi
l
lvoi
dorval
i
d.Ther
eis
nosuchthi
ngasavoidabl
ewil
l
.(Ar
t.839,NCC)

Q:Whatismeantbyinst
it
uti
onofhei
r?
A:I
nst
it
uti
onofheirisanactbyvirt
ueofwhichat
est
atordesi
gnat
esinhiswil
l
t
hepersonorpersonswhoar etosucceedhi
minhi
spropert
yandtransmi
ssi
ble
r
ight
sandobli
gati
ons.(Ar
t.840,NCC)

Q:Whatispreteri
ti
onanditseff
ects?
A:Preter
it
ionoromi ssi
onofone,some,oral lofthecompul sor
yhei r
si nthe
dir
ectli
ne,whetherli
vi
ngatt heti
meoft heexecut i
onoft hewillorbornafterthe
deathofthetestat
or,shal
lannultheinsti
tuti
onofheir.Devisesandl egaciesare
val
idinsof
arastheyarenotinoffi
cious.(
Ar t
.854,NCC) .

Q:Whatistheeff
ectifanheirwhowastotal
l
yomi t
tedwasgivenadonati
onor
gi
venaverysmallshare?
A:Iftheheirwasgi venashare,evenifverysmallorminimal
,thereisno
pret
eri
ti
on.Allhehast odoistoaskf
orthecompleti
onofhi
sshare.(ART.855,
NCC;Reyesvs.Barret
to-Dat
u,19SCRA85).

Ift
hehei
rhasbeengi
venadonati
on,t
herei
snopret
eri
ti
onsi
ncet
hedonat
ion
i
sconsi
der
edanadvancei
nher
it
ance.(Ar
t.1
073,NCC).

Q:Ifanhei rwasomi t
ted,fr
om wherewil
lhisshar
ebetaken?
A:I
tshallbetakenf r
om:
(
a) Theestatenotdi sposedofbythewil
l;or
(
b) Proport
ionatel
yf rom t
hesharesoft
heot hercompul
sor
yhei
rs,i
fthef
ir
sti
s
notenough.(Ar t
.855,NCC) .
Q:Whati ssubst i
tut
ionofhei r
s?

Ci
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A:Subst
it
uti
onofheirsi
stheappoi
ntmentofanotherheirsothathemayenter
i
ntothei
nheri
tancei
ndefaul
toft
heheiror
igi
nal
l
yinsti
tut
ed.(ART.857,NCC)
.

Q:Whati sfi
dei
commi ssar
ysubsti
tuti
on?
A:Fedeicommissar
ysubsti
tut
ioni
sonebyvi r
tueofwhichatestat
ori
nsti
tut
esa
fi
rstheirand chargeshim to preserve and t
ransmitthe whol
e partofthe
i
nherit
ancetoasecondhei r
.(Art
.863,NCC;Rabadi l
lavsCA,et.al
.,G.R.No.
113725,June29,2000).

Q:Whatar ether
equisi
tesorl i
mitati
onsoff i
deicommissar
ysubstitut
ion?
A:Theyar e:
(
1) Theremustbeaf irstheir
;
(
2) Obligati
onmustbei mposedupont hefi
rsthei
rtopreserveandt r
ansmi
tthe
property;
(
3) Theremustbeasecondhei r;
(4)Thefir
standsecondhei rsmustbeonl yonedegr eeapart
;
(5)Bothhei r
smustbeal i
veoratl eastconceivedattheti
meoft hedeathofthe
t
est at
or;
(
6) Itmustbeexpressed( Art.867);
(
7) Itmustnotburdent helegit
ime(Ar ts.864,872,904,NCC) ;
(
8) Itmustnotbecondi ti
onal.

Q:Whati ssubst i
tuci
onsubmodoandst ateitsrequi
sit
es?
A:Substi
tucionsubmodoi swhati sother
wi seknownasamodalsubst ituti
on.It
s
requi
sit
esar easf oll
ows:
1. Thetestatorstatestheobj ectoftheinsti
tut
ion;
2. Thet est
ators tatesthepur poseorappl i
cati
onofthepr oper
tyleftbythe
t
estator;
3. The testat
orst atest he charge imposed byt he test
atorupon the hei
r.
(JohnnyRabadi avsCA,etal
l
l ,G.R.No.1 13725,June29,2000)

Q:Whatisadisposi
tioncaptat
ori
a?
A:I
tisanydisposit
ionmadeupont hecondit
ionthattheheirshal
lmakesome
pr
ovi
sioninhi
swi l
li
nf avoroft
hetest
atororofanyotherper
son.(Art
.875,NCC)

Q:Isdi
sposit
ioncaptat
or i
aval
i
d?Why?
A:No. Iti
svoi d,becauseitmakesthemakingofawil
lcont
ract
ualorwi
tha
consi
derat
ion.Basical
ly,awil
li
sanactofpur
eli
ber
ty.

Q:An adopt ed chil


di nher
it
slike a l
egit
imate chi
l
d. Isthe said enti
tl
ed to
representhi
sfatherint
heinheri
tanceofhisfat
her’ ?Why?
A:No.Whi leiti
struethatt
headopt edchil
dshallbedeemedtobeal egit
imate
chil
dandhast hesamer i
ght
sast helat
ter
,theseri
ghtsdonoti
ncludetherightof

Ci
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repr
esentat
ion. The relat
ionshi
p creat
ed by the adopti
on is bet
ween t he
adopti
ng parentsand the adopted onl
yand doesnotext end tothe bl
ood
rel
ati
vesofeitherpart
y. (Republ
icvsCA,G. R.No.92326,Januar y24,1 992;
Testi
covs.DelVal,1
2SCRA406;Del aPuert
avs.CA,181,SCRA862) .

Q:Whati sreservatroncal
?
A:Reser vaTroncalisasyst em ofreservebyvir
tueofwhichanascendantwho
i
nher i
tsfrom hi
sdescendantanypr opertywhi
chthelat
termayhaveacquiredby
gratuit
oust i
tl
ef rom anotherascendant ,ora brot
herorsister
,isobli
ged to
reservesuchpr opertyashemayhaveacqui r
edbyoper at
ionoflaw forthe
benef i
tofrelat
iveswhoar ewithi
nt hethir
ddegreeandwhobel ongtothel i
ne
from whichsaidpr opert
ycame.( Art.891,NCC).

Q:Whatar et herequi
sit
esofr eservatroncal?
A:Theyar ethefoll
owing:
(
a) Property was i
nherit
ed by oper ati
on oflaw by an ascendantfr
om a
descendantupont hedeathoft hel att
er;
(
b) Acquisit
ionbythedes cendantf rom anascendantupont hedeathofthe
l
att
er
(
c) Descendantshoul dhavedi edwi t
houtanylegi
ti
matei ssueinthedir
ect
descendinglinewhocoul dinheri
tfrom him;
(
d) Theremustber elati
vesoft hedescendantwhoar ewit
hint het
hir
ddegree
andwhobel ongtotheli
nef rom whi chtheproper
tycame.

Q:Whatr equisi
tesmustbecompl iedwithi nor
dert hatthereservatar
iosmay
quali
fyassuch?
A:Theyarethef ol
lowing:
(
a) Theymustbel egi
ti
mater elati
vesoft hedescendant-proposit
us andthe
ori
gin;
(
b) Theymustber el
ated t
ot he des cendant-proposit
us wi t
hinthethi
rd
degree;
(
c) Theymustbel ongtotheli
nef rom whichthereservabl
epr opert
ycame;
(
d) Theymustsur vi
vethereservista.

Q:Howi sr eser
vaext ingui shed?
A:Reser vaisextinguishedby:
(
a) Thedeat hoft heascendant -reservi
sta;
(
b) Thedeat hofal lrelat i
vesoft he descendant-proposit
uswi t
hinthethir
d
degreewhobel ongt ot hel inef r
om whi cht hepropertycame.I nsuchcase,the
acti
ve subjectoft he reser ve di sappears ,asa consequence ofwhi ch t
he
resol
utorycondi t
ionwhi chl imitsthet i
tl
et othereser
vista al
sodisappears
;
(
c) Lossoft he reser vabl e propertyf orcausesnotdue t ot he f
aultofor
negli
genceoft her eservista;
(
d) Wai verorr enunci ationbyt her eservat
ari
os. Ther enunci
ati
onmaybe

Ci
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befor
eoraf terthedeat hoft hereser vi
sta. I fther enunciati
oni smadebef ore
thedeat hoft her eservista,suchr enunci ati
oncannotaf f
ectothert hirddegree
rel
ati
veswhomaybebor nsubsequent l
yandwhosur vi
vedther eservist
a;ifiti
s
madeaf t
erthedeat hoft her eser
vist
a,t her eser vati
onisextinguishedbutonl y
i
nsofarast heshar eoft her enounceri sconcer ned.Ther enunciationmaybe
eit
herexpressori mpl i
ed;
(
e) Prescri
ption oft he r ightoft he r eservat ari
os,when t he ascendant–
reser
vista holdst he pr operty adver sely agai nstt hem int he conceptofan
absol
ut eowner .(SeeMaghi rangvs.Bal cita,48Phi l551;Caril
lovs.Del aPaz,18
SCRA467;Sumaya,et .al.vsIAC,etal .,Sept ember2,1 991

Q:Whatisthelegalef
fectofar enunci
ati
onorcompr omi seasr egardsafuture
l
egiti
me?
A:Everyr
enunciat
ionorcompr omiseasr egardsaf uturelegi
timebet weent he
personowingi
tandhi scompul soryhei
rsisvoi dandt helat
termaycl ai
mt he
sameupont hedeathoft heformer;buttheymustbr ingtocol l
ationwhatever
theymayhaver ecei
vebyvi r
tueoft herenunciat
ionorcompr omi se.(
Art
.905,
NCC)

Q:Whati st he eff
ectoft est
amentar
ydisposi
ti
onswhich ar
einof
fi
ciousor
excessi
ve?
A:Theimpair
edordi mini
shedlegi
ti
meofthecompulsor
yheir
sshal
lbereduced
uponhispeti
ti
on.(Art
.907,NCC)

Q:WhatismeantbyNetAssetoftheEst
ate?
A:I
tisthedi
ff
erencebet
weent hegrossest
atel
essal
ldebt
sandchar
ges.(
Art
.
908,NCC)

Q:WhatisthemeaningofNetHer edit
aryEst
ate?
A:I
tisthesum ofnetassetoft
heestatepl
ustheval
ueofcol
l
ati
onabl
edonat
ions
.
(Ar
t.908,NCC)

Q:Whatismeantbycoll
ati
on?
A:I
tisaf
ict
it
iousmat
hemat i
calpr
ocessofaddi
ngt
heval
ueoft
het
hingdonat
ed
t
othenetval
ueoftheheredi
tar
yestat
e.

Q:Whereshalldonati
ongiventochil
dreni
scharged?
A:I
tshal
l bechargedtothei
rlegi
ti
meandt heexcesst
othef
reepor
ti
on.Wheni
t
i
sinof
fi
cious,i
tshall
bereduced.(Art
.909,NCC)

Q:Whereshall
donationmadetostrangersischarged?
A:I
tshallbechargedtothepartoftheest at
eofwhi chthetestatorcouldhave
di
sposedbyhislastwil
l
.Wheniti
sinoffi
ciousitshal
lbereduced.(Art.909,NCC)

Ci
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Q:Wher eshalldonati
onreceivedbyil
legi
ti
matechi
l
drenduri
ngthel
if
eti
meofhis
fat
herormot herischarged?
A:Itshal
lbechar gedt othei
rlegi
ti
me.Shouldtheyexceedthepor
ti
onthatcan
befreel
ydisposedof ,t
heyshallbereduced.(
Art
.910,NCC)

Q:Whati stheor derofpr efer encei nthepaymentofi nheri


tancet ot
hoseentit
led
t
hereto?
A:Theor derofpr eferencei s:
(1)Thel egi
timesshal l
firstbepai d;
(2)Thent hedonat i
onsi ntervi vos;
(3)Next ,t
hepr ef
erreddevi sesandl egacies
;and
(4)Lastly, the other devi ses and l egacies and allot her test
amentary
disposit
ionstot akeef fectmor ti
scausa,shal lbereducedpr or at
a,wi
thout
dist
incti
on,incaset hef reepor ti
onisnotsuf f
ici
ent
.(Art.911,NCC)

Q:Whatar etherequi si
teofavaliddisinherit
ance?
A:Fordisi
nheri
tancet obeval i
dthef ol
lowingr equisi
tesmustbecompl
i
edwi
th:
(1)Itmustbedonei navali
dwill(Art916,NCC) ;
(2)Itmustbeexpr ess(Art
.918,NCC) ;
(3)Itmustbewi t
hal egalcause( Art
.91 6,NCC) ;
(4)Theremustbeat ruecause( art
s.91 7and91 8,NCC);
(5)Theremustbeanexi st
ingcause;
(6)Itmustbet otalorcompl et
e;
(7)Thecausemustbest atedint hewill(Art918)
;
(8)Theheirdisinher i
tedmustbei dentif
ied;
(9)Thewi l
lmustnothavebeenr evoked.

Q:Whatismeantbyi mper f
ectdisinherit
ance?
A:Imperfectdisi
nheri
tancer eferstodi si
nheri
tancewit
houtspecifi
cati
onoft he
cause,orforacauset hetr
uthofwhi ch,ifcontr
act
ed,i
snotproved,orwhi chis
notoneoft hoserecognizedbyl aw.(Ar t
.918,NCC)Inotherwords,itr
efer
st oal
l
ofthosecaseswher et hedi si
nherit
ancei snotmadei naccor dancewitht he
requi
si
teformalit
iesprescri
bedbyl aw.

Q:Whatar etheeffect
sofi mperfectorineffect
ivedisi
nherit
ance?
A:Theyar e:
1) Thei nst
it
uti
onofhei rsisannulled,butonlyinsof arasitmaypr ejudi
cethe
persondi si
nheri
ted,thati
s,insof arashislegit
imeisconcer ned;
2) Thedevi ses,l
egacies,andot hertestamentarydisposit
ionsshallbevali
dto
suchext entaswi l
lnotimpairthelegit
ime.Art.918,NCC)

Q:Whatar
ethegr
oundsf
ordi
si
nher
it
anceofchi
l
dren?

Ci
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A:Thef oll
owi ngshallbesuf fi
cientcausesf ort hedi sinherit
anceofchi ldrenand
descendant swhet herl
egi t
imateori l
l
egiti
mat e:
1.Whenachi l
dordescendanthasbeenf oundgui lt
yofanat t
emptagai nst
thelif
eoft hetestator,hisorherspouse,descendant s,orascendant s;
2.Whenachi l
dordescendanthasaccusedt het est
atorofacr i
mef orwhich
thelaw pr escri
besi mpr i
sonmentf orsi xyear sormor e,ift
heaccusat i
on
hasbeenf oundgr oundless ;
3.When a chi l
d or descendant has been convi cted of adul t
ery or
concubi nagewi t
ht hespouseoft het estator ;
4.Whenachi l
d ordescendantbyf r
aud,vi olence,i nti
mi dat
ion,orundue
i
nf l
uencecausest het estat
ort omakeawi llort ochangeoneal ready
made;
5.Ar efusalwithoutjusti
fi
ablecauset osuppor tthepar entorascendantwho
disi
nher i
tssuchchi l
dordescendant ;
6.Mal t
reatmentoft hetestatorbywor dordeed,byt hechi l
dordescendant ;
7.Whenachi l
dordescendantl eadsadi shonor ableordi sgracefull
i
fe;
8.Convi cti
onofacr i
mewhi chcar ri
eswi thi tthepenal t
yofci vili
nterdi
cti
on.
Art.91 9,NCC)

Q:Whatar ethegr oundsf ordi si


nher it
anceofascendant s?
A:Thef oll
owi ngshal lbesuf fi
cientcausesf orthedi si
nher i
tanceofpar entsor
ascendantswhet herlegit
imat eori ll
egit
imat e:
1.When t he par ents have abandoned t heir chil
dren or i nduced t heir
daughter stoli
veacor ruptori mmor al l
if
e,orattempt edagai nstthei
rvirtue;
2.Whent hepar entorascendanthasbeenconvi ctedofanat temptagai nst
theli
feoft het est
ator,hi sorherspouse,descendant s,orascendant s;
3.Whent hepar entorascendanthasaccusedt hetestatorofacr imef or
which the l aw pr escribes impr isonmentf orsi x year s ormor e,i ft he
accusationhasbeenf oundt obef al
se;
4.When t he par entorascendanthas been convi ct
ed ofadul t
ery or
concubi nagewi ththespouseoft hetest at
or;
5.Whent hepar entorascendantbyf r
aud,vi ol
ence,i nti
mi dati
on,orundue
i
nfluencecausest het est
at ort omakeawi llort ochangeoneal ready
made;
6.Thel ossofpar entalauthor it
yf orcausesspeci fiedint hi
sCode;
7.The r efusalt o suppor tthe chi ldren ordescendant swi thoutjusti
fiable
cause;
8.Anat t
emptbyoneoft hepar entsagai nsttheli
feoft heot her,unlessther e
hasbeenar econcili
ati
onbet weent hem.( Art
.920,NCC)

Q:Whatarethegroundsfordisi
nheri
tanceofaspouse?
A:Thefol
l
owingshallbesuf
fici
entcausesfort
hedisinher
it
ingaspouse:
1. Whent hespousehasbeenconvi ct
edofanat temptagai
nstt
heli
feoft
he
test
ator
,hi
sorherdes cendants
,orascendants;

Ci
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2. Whent hespousehasaccusedt het est
at orofacr i
mef orwhichthel aw
prescr
ibesimpr i
sonmentofsi xyear sormor e,andt heaccusati
onhas
beenfoundt obef alse;
3. When t he spouse byf raud,violence,i nti
mi dat
ion,orundue i nf
luence
causethetestat
ort omakeawi l
lortochangeoneal readymade;
4. Whent hespousehasgi vencausef orlegal separati
on;
5. Whent hespousehasgi vengroundsf orthel ossofpar ent
alaut
horit
y;
6. Unjust
ifi
abl
er ef
usalt osupportt
hechi l
drenort heotherspouse.(Art
.921 ,
NCC)

Q:Whatar
etheeff
ect
sofreconci
l
iat
ionbet
weent
heof
fenderandt
heof
fended
i
ncaseofdi
si
nher
it
ance?

A:Subsequentreconci
l
iati
onbetweentheoffenderandt heof
fendedperson
depri
ves the l
att
eroft he r
ightto di
si
nheri
tand r ender
sineff
ectualany
di
sinher
it
ancethatmayhavebeenmade.(Art
.922,NCC)

Q:Whati st heef fectofvaliddisi


nher i
tance?
A:Theef fectsar easf oll
ows:
(1) The di sinheri
ted compul sor
y hei ris compl etely excl
uded from the
parti
cipat
ioni nthei nherit
ance,notonl yasacompul soryhei rwit
hrespecttothe
l
egiti
meandasavol untaryhei rasr egar ddevi sesandl egaci
es,butalsoas
i
ntestatehei rast othef r
eepar t
,wher et her eisnoi nstit
ut i
onofanyhei r
,orwi t
h
respecttothel egi t
imeonl ywher etherei sinstitut
ionofhei r
;
(2) Thechi l
drenanddescendant soft heper sondi sinherit
edheirshallt
ake
hisplaceandacqui rether ightofcompul soryhei rswi thr especttothelegit
ime
and,wher et herei snoi nstit
uti
onofhei rort hei nsti
tutiondoesnotcovert he
wholef r
eepor ti
on,alsot ohisshareoft hef reepor tion;and
(3) Thedi sinheri
tedpar entsshall nothavet heusuf ructoradminist
rat
ionof
theproper t
ywhi chconst i
tutethelegit
ime.( Art.923,NCC)

Q:Isthel egacyordeviseofat hi ngbelongingent ir


elytoathirdpersonval i
dor
void?
A:Ifthet estat
orknowingt hatt het hi
ngbequeat heddoesnotbel ongt ohim,
orderst hatitbe acquir
ed in or derto give i
tt ot he l
egat
ee ordevi see,the
disposit
ionisval
id.
.Ift
heowneroft hepropert
yr efusestoali
enateitordemands
anexcessi vepri
ce,theheirort heest at
eisboundt ogiveonlythejustvalueof
thething.(Art
.931,NCC)

Q:Isthelegacyordeviseofat hi
ngbelongi
ngent ir
elytoalegat
eeordevisee
vali
dori
neffect
ive?
A:Thelegacyordeviseofathi
ngbel ongi
ngentir
elytolegat
eeordevi
seeatthe
ti
meoft heexecuti
onofthewillshal
lbeinef
fecti
ve.Itisobvi
oust
hatisal
ready
ownedbyt helegateeordevi
seecannotbet ransmitt
edt ohi
m.Howeverifthe

Ci
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test
atorexpressl
yor derstheinterestpert
ainingtoanot herbeexti
nguishedor
paid,t
henthelegacyordevi seisvali
dtosuchi nter
est.(Art
.932,NCC)
Eveni ft
hethingissubsequent lyali
enatedbyt hel egat
eeordeviseetoat hi
rd
person,i
tremainsvoi d.Thelegacyordevi seisnotr evi
vedbecauseitwasvoi d
atit
sincepti
on.Butift heal
ienati
onistothet est
atorhimselfandhecontinuesin
hispossessi
onatt hetimeofhi sdeath,t
hedi sposit
ionbecomesvali
d.(Ar t
.933,
NCC)

Q:Whatisthelegal
effecti
fthet
estat
oror
dersthepaymentofwhathebel
i
eves
heowesbutdoesnotinfactowe?
A:Thedi
sposi
ti
onshall
beconsideredasnotwri
tt
en.(
Art.939,NCC)

Q:I
ftheest
ateofthetest
atorshoul
dnotbesuff
ici
entt
osati
sfyal
lt
hel
egaci
es
anddevi
ses,whatist
heorderofpaymentthatmustbefol
l
owed?

A:Ift
heestateshouldnotbes uf
fi
cientt
ocoveral lt
hel
egaciesordevi
ses,t
heir
paymentshallbemadei nthefoll
owingor der:
1.Remuner at
orylegaciesordevises;
2.Legaciesordevisesdeclaredbyt hetestatortobepref
erenti
al;
3.Legaciesforsupport;
4.Legaciesforeducati
on;
5.Legaciesordevisesofaspeci fi
cdetermi natethi
ngwhichformsapartofthe
estat
e;
6.Allot
hersprorata.(Art
.950,NCC)

I
NTESTATESUCCESSI
ON

Q:Whati sl
egalsuccessi
on?
A:Legal successi
onisthatki
ndofsuccessi
onprescr
ibedbyt
helawand
presumedt obet hedesir
eofthedeceasedwhichtakespl
acewhenthe
expressedwi l
lofthedecedenthasnotbeensetdowninawil
l.

Q:Whenmayl egalorintestatesuccessiont akepl ace?


A:Ifmayt akepl ace:
i
ftheper sondi eswi t
houtawi l
l,orwithavoi dwi ll
,oronewhi chhassubsequent l
y
l
ostitsvali
dity;
Whent hewi l
l doesnoti nstit
uteanhei rt
o,ordi sposeofallthepr opert
ybelonging
tothetestator.I nsuchacase,l egalsuccessi onshal lt
akeplaceonl ywithrespect
totheproper tywhi cht het est
atorhasnodi sposed;
I
fthesuspensi vecondi tionattachedt otheinstituti
onofheirdoesnothappenori s
notfulf
il
l
ed,ori fthehei rdiesbef or
ethet estator,orrepudiatestheinheri
tance,
therebeingnosubst i
tution,andnor ightofaccr eti
ontakespl ace;
Whent hehei rinsti
tutedi si
ncapableofsucceedi ng,exceptincasespr ovi
dedin
thecode.

Ci
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Q:Mayapr obatecourtdetermineowner shi
pofthesubject?
A;Thejuri
sdi
cti
onofther egi
onal t
ri
alcourtasaprobatecourtorintest
atecourt
rel
atesonl
ytomattershavingtodowi ththesett
lementoftheestateandpr obat
e
ofthewil
loft
hedeceasedper sonsanddoesnotext endtothedet erminat
ionof
questi
onsofownershipthatari
sedur i
ngtheproceedings.

Q:Whati stheef fectofthepri


ncipl
ethenear estexcl
udesthefar
thestt
other
ight
ofrepresentat
ion?
A:Itiswit
houtpr ejudi
cet ot
herightofrepresentat
ionbecausebyvir
tueof
represent
ati
ont hef ar
therbecomesj ustasnear.

Q:Betweenagrandfat
herandabr other
,whowi l
li
nheri
tintest
atefrom t
he
decedent
?
A:Alt
houghi
tist
ruethatbothasjustasnearindegr
ee,stil
liti
sthegrandfather
alonewhoshoul
dinheri
tbecausethedirectl
i
neispref
erredovert hecoll
ateral
l
ine.

Q:Howmustshar esbedi
videdbetweenr elati
vesinthesamedegr ee?
A.Relati
vesint
hesamedegreeshall
inheritinequalshares,subjecttot
he
provi
sionsofar
t1006wi
threspectt
or el
ati
vesoff ull
andhal fbl
ood,andofar
t
987par2,concerni
ngdi
visi
onbetweent hepat er
nalandmat er
nal l
i
nes.

Q:Mayapersonwhor epudi
atesberepr
esented?
A:No,andhei
rrepudi
ati
ngcannotberepresent
ed.

Q:Inasit
uationwhereisthesol
ehei
roral
lhei
rsr
epudi
atethei
nher
it
ance,who
maybecal l
edt osucceed?
A:Therel
ati
vesoft hefol
lowi
ngdegr
ee,i
nthei
rownri
ghtandnotbyri
ghtof
repr
esentat
ion.

Q:Supposeoneofthetwoheirsisi
ncapacit
atedandtheotherrepudiated,how
maythei
rchil
dreni
nheri
t?
A:Thechi
ldr
enoftheincapaci
tat
edmayi nheri
tbyri
ghtofrepresentat
ionandt he
chi
ldr
enoftheonewhor epudi
atedareexcludedforhecannotber epresented.

Q:Defi
neri
ghtofrepresent
ati
on.
A:Ari
ghtcreatedbyfi
cti
onoflawwher einarepr
esentat
iveisrai
sedt
otheplace
anddegreeofthepersonrepr
esented,andacqui
restheright
swhicht
helat
ter
woul
dhavei fhewereli
vingorabl
et oi
nheri
t.

Q:Whenmayt heri
ghtofr
epresent
ati
onexi
st?
A:Rightofrepr
esent
ati
onexi
stswhenther
eispredecease,i
ncapaci
tyand
di
sinheri
tance.

Ci
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Q:From whom doestherepr
esentati
veinheri
t?
A:Therepr
esentat
ivedoesnotinher
itfr
om theper
sonrepresent
edbutr
ather
fr
om thepersonwhom thepersonrepresent
edcouldhaveinher
it
edf
rom.

Q:Inint
estat
esuccessi on,ri
ghtofrepresent
ati
onwil
lcoverwhatproper
ti
es?
A:Therightofrepresentat
ionwhenpr operinint
est
atesuccessi
oncover
sallt
he
personbeingrepresentedwoul dhaveinheri
ted.

Q:Intestat
esuccessi
on,t
heri
ghtofr
epresent
ati
onwil
lcoverwhatpr
opert
ies?
A:Ther i
ghtofr
epresent
ati
onwhenproperint
est
atesuccessi
ononl
ycoversthe
l
egit
ime.

Q:Mayanadopt edchi
ldr
epresent?
A:No,becausether
eisnofi
l
iat
ionwhetherbybloodorbylawbet
weent he
adoptedchil
dandthepar
entoftheadopter.Whi
leapersont
hruhi
slegal
actuat
ioncangi
vehimsel
fanheir,hecannotbythesameacti
ongi
veshis
rel
ati
vesanheir
.

Q:Mayanadopt edchi
ldberepresent
ed?
A:No,becausether
eisnofi
l
iati
onwhet herbybl
oodorbylawbet
weent he
adoptedchil
dandthepar
entoftheadopt er
.Whil
eapersont
hruhi
slegal
actuat
ioncangi
vehimsel
fanheir,hecannotbythesameacti
ongi
veshis
rel
ati
vesanheir
.

Q:Towhom wil
lt
herepresent
ati
vesucceed?
A:Ther
epr
esent
ati
vedoesnotsucceedthepersonrepr
esent
edbutt
heone
whom t
heper
sonrepresent
edwouldhavesucceeded.

Q:Wher emayt herightofrepresent


ati
ontakeplace?
A:Theri
ghtofrepresentat
iontakesplaceonlyi
nthedirectdescendi
ngl
i
nebut
neveri
ntheascending.

Q:Mayt heri
ghtofrepresent
ationoccuri
nthecoll
aterall
ine?
A:Yes,i
nthecoll
ateral
line,i
ttakespl
aceonlyinf
avoroft hechi
l
drenoft
he
brot
hersorsi
ster
s,whet hert
heyar eoft
hefull
orhalfblood.

Q:Bet
weenthenephewandgr andnephewofthedecedent
,whowi l
linher
it
?
A:Onl
ythenephewwi l
li
nheri
t,t
her i
ghtofr
epr
esentat
ioni
nthecoll
aterall
i
ne
t
akesplacei
nfavoronl
yofthechildr
enofthebrot
hersorsi
ster
s.

Q:I
fanil
legi
ti
mat echi
ldpredeceasedhisparent
s,howwill
hei
nher
itf
rom hi
s
gr
andparent
s?
A:Theyshal
linheri
tbyri
ghtofrepresent
ati
on.(Art
.990,NCC)

Ci
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Q:Inwhatextentt
herightt
oinheriti
nthecoll
ater
al l
i
ne?
A:Ther i
ghttoinher
itabi nt
estateshal
lnotext endbeyondt
hef
if
thdegr
eeof
rel
ati
onshi
pinthecol
later
alli
ne.(Art
.1010,NCC)

Q:Whenwillt
heSt ateenti
tl
edtosucceedtheenti
reest
ateofadeceasedper son?
A:I
ntheabsenceofcompul sor
yheir
s,sur
vivi
ngspouseandcol
lat
eralr
elat
ivesup
t
othefi
ft
hdegr ee.(Art
.1011)

Q:Whati saccret
ion?
A:Accreti
onisar ightbyvir
tueofwhich,whentwoormor eper sonsarecall
edto
the same inheri
tance,devise orlegacy,the par
tassigned tot he one who
renounces,orcannotr ecei
vehisshare,orwhodiedbeforethetestat
or,i
sadded
orincorporat
edt ot hatofhisco-hei
rs,co-devi
ses,orco-legatees.(Ar
t.1015,
NCC)

Q:Whendoest herightofaccr eti


ont akeplace?
A:I
ntestamentarysuccessi ont herightofaccr et
iont
akespl
aceinthefoll
owi
ng
cas
es:
(1)Predeceaseoft heinsti
tutedhei r
.
(2)I
ncapacityoftheinsti
tutedhei r.
(3)Repudiati
onbyt heinsti
tutedhei r.
(4)Nonfulf
il
lmentofthesuspensi veconditi
onimposedupont
heinst
it
utedhei
r.
(5)I
neffect
ivetestamentarydi spositi
ons.

I
nintestat
esuccessi
ontherightofaccr
eti
ont
akespl
acei
nthef
oll
owi
ngcases:
(
1)Pr edeceaseofalegal
heir.
(
2)Incapacityofal
egalheir
.
(
3)Repudi at
ionbyalegalheir
.

Itmustbe not ed,however,that,st


ri
ctly speaki
ng,itis onl
yi n case of
r
epudiati
ont hatther
ecanbeaccr eti
oninintestat
esuccessionbecausei tisonly
t
hen thatthereisa vacancyi nthe inher
it
ance.However ,whet herthe rul
esof
i
ntest
ate succession oraccret
ion shal
lbe appl ied i
n case ofpredecease or
i
ncapacit
y,theresult
sarethesame.

Q:Whatr equi
sit
es mustexi stsin or derthataccreti
on willtake pl
ace i
n
t
estament ar
ysuccession?
A:Thef ol
l
owingmustexi st:
(1)Thattwoormor eper sonsbecal l
edtothesamei nher
it
ance,ort ot
he
samepor t
ionthereof,proindivi
so;and
(2)Thatoneoftheper sonst huscall
eddi ebef
orethetest
ator
,orrenouncet
he
i
nherit
ance,orbei ncapacitat
edtor ecei
veit
.(Art
.1016,NCC)

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Q:Whatisearmar
king?
A:I
tmeanst hatt
herei spar
ti
cul
ardesi
gnat
ionorphysi
calsegr
egat
ionf
rom al
l
ot
hersofthesameclass.

Q:Ifaper
sonrepudi
ateshi
sshar
eint
hei
nherit
ance,t
owhom wi
l
lhi
sshar
ego?
A:Thevacat
edsharewil
lgotohi
sco-
hei
rs.(
Art.1
018,NCC)

Q:Cananhei
rwhorepudi
ateshi
sinher
it
anceber epresent
ed?
A:No,f
oronewhor
enouncescannotber epr
esented.

Q:Howwi ll
theco-hei
rsi
nheri
tift
hevacatedshareisthelegi
ti
me?
A:Shouldt
hepartrepudi
atedbethelegi
ti
me,t heotherco-heir
sshal
lsucceedt
o
i
tint
heirownri
ght,andnotbytheri
ghtofaccreti
on.(Art
.1021,NCC)

Q:Howwi l
lt
heco- heir
sinher
iti
fthevacatedshar
eist
hefreeport
ion?
A:Ifthevacat ed shareisthefreepor t
ion,t
heotherco-hei
rsshalli
nher
itby
accr
etion.(
Art.1021,NCC)

Q:Intestamentarysuccessi
on,towhom thevacantshar
egoi ftherei
snori
ghtof
accreti
onandnosubst it
uti
on?
A:Itshallpasst
ot hel
egalheirsofthet
estat
or,whoshal
lreceiveitwi
tht
hesame
chargesandobl i
gati
ons.(Art
.1022,NCC)

Q:Whatar ethethr
eeki
ndsofrelat
iveincapaci
ty?
A:Thethreeki ndsofrel
ati
veincapacityare:fi
rst
,becauseofpossi
bleundue
i
nfl
uence;second,becauseofpubl i
cpol i
cyandmor al
i
ty;andt
hir
d,becauseof
unwort
hiness.

Q:Whatar et hosedonationst hatareconsideredvoidbyr easonpubl


i
cmor ali
ty?
A:Thefoll
owingdonat i
onsshal l
bevoi d:
1.Those made bet ween per sons who wer e guilt
y of adult
ery or
concubi nageatthet i
meoft hedonation;
2.Thosemadebet weenper sonsf oundguil
tyofthesamecr imi
naloffence,
inconsiderati
onther eof;
3.Thosemadet oapubl icofficerorhiswife,descendantsandascendants,
byr easonofhisof f
ice.( Ar
t.1028,NCC)

Q:Ist
hereaneedthatthespousebeconvi
ctedofadult
ery?
A:No.Ther eneednotbeanycr i
minalconvi
cti
onfort hegui
l
toft
hespouse
becausethegui
l
tofthespousecanbeprovencivi
ll
y.

Q:Whoar ei
ncapabl
eofsucceedi
ngbyr easonofworthi
ness?
A:Thefol
l
owi
ngareincapabl
eofsucceedingbyreasonofunworthi
ness:
(1
) Parentswhohaveabandonedt heirchi
l
drenorinducedthei
rdaught
ers

Ci
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toleadacor ruptori mmor alli
fe,oratt
empt edagai nsttheirvi r
tue;
(2) Anyper sonwhohasbeenconvi ctedofanat t
emptagai nsttheli
feof
thet estator
,hisorherspouse,descendant s,orascendant s;
(3) Anyper sonwhohasaccusedt het estatorofacr imef orwhi chthelaw
prescr i
besi mpr i
sonmentf orsixyear sormor e,iftheaccusat ionhasbeen
foundgr oundless;
(4) Anyhei roff ullagewho,havi ngknowl edgeoft hevi ol
entdeat hoft he
testator,shouldf ai
ltorepor titt
oanof f
iceroft hel aw wi thinamont h,unless
theaut hor i
ti
eshaveal readyt akenact i
on;t hispr ohibit
ionshal lnotapplyt o
caseswher ein,accor di
ngt olaw,thereisnoobl igati
ont omakeanaccusat ion;
(5) Anyper sonconvi ctedofadul teryorconcubi nagewi t
ht hespouseof
thet estator
;
(6) Anyper sonwhobyf raud,violence,i nti
mi dati
on,orunduei nfl
uence
shoul dcauset hetestat
ortomakeawi ll
ortochangeoneal r
eadymade;
(7) Anyper sonwhobyt hesamemeanspr event sanot herfrom maki nga
will
,orf rom revokingoneal r
eadymade,orwhosuppl ant s,conceal s,oralt
ers
thelatter’ ;
(8) Anyper sonwhof al
sifi
esorforgesasupposedwi l
loft hedecedent .(Art.
1032,NCC)

Q:Whataretheinstancest
hatt
hecausesofunwor thi
nesswil
lnotaf
fect
?
A:I
fthetest
atorhadknowledgeoftheunwor thi
nessther
eofatthet
imehemade
t
hewi l
l
,orif,havingknownoft hem subsequentl
y,heshouldcondonethem i
n
wri
ti
ng.(Ar
t.1033,NCC)

Q:Howmayt hecausesofunworthinesserased?
A:Sinceactsofunwor t
hinessar
eof f
ensesdirect
edagainstthedecedent
,onl
y
thedecedentandnoot hercaner asetheef f
ectsofsuchunwor t
hiness
.Hecan
dothisbypardoni
ngtheof f
enseeit
herexpresslyori
mpli
edly.

Q:Ifaper sonisi
ncapacit
atedtoinheri
t,mayhest i
ll
berepresented?
A:Yes.I fthepersonincapaci
tatedt oinher
ithavechil
drenordescendants,the
l
attershouldacquir
ehisrightt
othel egit
ime.However,theincapaci
tat
edheirhas
no r i
ghtofusuf r
uctoradmi nist
rati
on overt he pr
oper t
yr ecei
ved by the
representat
ive.(
Art
.1035,NCC)

Q:Whatlawgover
nsthecapaci
tyt
osucceedofthedecedent
?
A:Capaci
tyt
osucceedisgover
nedbythelawofthenat
ionofthedecedent
.(Ar
t.
1039,NCC)

Q:Whatar etherequisit
esbeforeaccept
anceorr epudiat
ionisdone?
A:Therequisi
tesbef
or eapersonmayacceptorr epudiateaninheri
tancear
e:
a. Theheirmustbecer tai
nofthedeathofthedecedent ;
b. Theheirmustbecer tai
nofhisr
ightt
othei nheri
tance;and

Ci
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c. Thehei
rmusthavef
reedi
sposal
ofhi
spr
oper
ty.(
Art
.1043,NCC)

Q:Howi saccept ancemade?


A:Accept ancemaybeexpr essort acit.
Anexpr essaccept ancemustbemadei napubl i
corpr i
vat edocument .A
taci
taccept ancei soner esul t
ingf r
om act sbywhi cht hei ntentiont oaccepti s
necessaril
yimpl ied,orwhi chonewoul dhavenor i
ghtt odoexcepti nthecapaci t
y
ofanhei r.
Act sofmer epr eser vationorpr ovi
sionaladmi ni
str
ationdonoti mpl yan
acceptanceoft heinher i
tancei f,t
hroughsuchact s,thet i
tl
eorcapaci t
yofanhei r
hasnotbeenassumed.( Ar t.1049,NCC)
Ani nher itanceisdeemedaccept ed:
(1)Ifthehei r
ssel l
s ,donat es,orassignshi sri
ghtt oast ranger ,ortohisco
-heirs,ort oanyoft hem;
(2)I ft he heirr enouncest he same,even t hough gr atuitousl
y,fort he
benef itofoneormor eofhisco- heir
s ;
(3)Ifher enouncesi tforapr iceinfavorofal lhisco- heirsindiscri
minately;
buti fthi srenunci ationshoul dbegr atuit
ous ,andt heco- heir
sinwhose
favori ti smadear et hoseuponwhom t hepor t
ionr enounced s hould
devol vebyvi rtueofaccr etion,thei nheri
tanceshal lnotbedeemedas
accept ed.( Art.1050,NCC)

Q:Howisrepudiat
ionmade?
A:Ther
epudiati
onofani nherit
anceshall bemade:
a.byapubl i
ci nstr
ument ;
b.byanaut hent i
cinstrument ;and
c.byapet i
ti
ont ot hecour thavingjuri
sdict
ionoverthetest
ament
aryor
int
estateproceedi ngsbutmustbepr esent
edwithi
n30daysf r
om order
ofcourtfort hedistr
ibutionoftheestate,ot
herwi
se,thi
sisdeemedtobe
anaccept ance.( Art
.1 051,NCC)

Q:Whatiscoll
ati
on?
A:Collat
ion means computi
ng oradding cer
tai
n val
ues tothe est
ate,and
char
gingt hesametot helegi
ti
me.Ital
someanscomput i
ngoraddingcertai
n
val
uestotheestat
e,andchargi
ngthesametothefreepor
ti
on.(Ar
t.1
061,NCC)

Q:Whati st hestatusofownershi
p oftheestat
eoft hedecedent,beforeit
s
par
ti
ti
on,wher ether
earetwoormor eheir
s?
A:Wheret herearetwoormoreheir
s,thewholeestat
eoft hedecedenti
s,befor
e
i
tspart
it
ion,ownedi ncommonbysuchhei rs
,subjectt
ot hepaymentofdebtsof
t
hedeceased.  (
Art
.1078,NCC)

Q:Whatispar
ti
ti
on?
A:Ever
yactwhichisi
ntendedt
oputanendt
oindi
vi
si
onamongco-
hei
rsand

Ci
vi
lLawBarRevi
ewNot
es Page45
l
egat
eesanddevisesisdeemedt
obeapar ti
ti
on,alt
houghi tshoul
dpurportt
obe
asal
e,anexchange,acompromi
se,oranyot
hertransact
ion.(Art
.1082,NCC)

Q:Canaco- hei
rhavetherighttodemandthedivi
sionoft
heest ate?
A:Ever yco-heirhastherighttodemandt hedivisi
onoft heest at
eunlessthe
t
estatorshouldhaveexpresslyforbi
ddeni
tspart
it
ion,i
nwhi chcaset heper
iodof
i
ndi
vi si
onshallnotexceedtwent yyear
sasprovi
dedi nar
ticle494.Thispowerof
t
het estat
ort
opr ohi
bitt
hedivisi
onappli
est
othelegiti
me.(Art.1083,NCC)

Q:Canapar ti
ti
on,j udi
cial
orextr
a-judicial,ber esci
ndedonaccountofl esi
on?
A:Yes,apartit
ion,judi
cialorext
ra-judicial,mayal sober escindedonaccountof
l
esi
on,whenanyoneoft heco-hei r
sr ecei vedt hi
ngswhoseval ueisless,byat
l
eastone-fourt
h,t hanthesharet owhi chhei sentit
led,consider
ingthevalueof
t
hethingsatthet i
met heywereadj udicated.( Art.1
098,NCC)

Q:Canapar t
it
ionmadebyt het est
atorbeimpugnedont hegr oundoflesion?
A:No,thepartit
ionmadebyt hetestat
orcannotbei mpugnedont hegr oundof
l
esi
on,exceptwhent helegi
ti
meoft hecompulsoryheir
sistherebyprejudiced,or
whenitappearsormayr easonablybepr esumed,thatt
heintenti
onofthet est
ator
wasotherwi
se.(Art.1
099,NCC)

PRESCRI
PTI
ON

Q:Whatar et hetwokindsandper i
odofacquisi
tiveprescripti
onofr i
ghts?
A:Acqui sit
ivepr escri
pti
oniseit
heror di
naryorext r
aordinary.Ordinaryacquisit
ive
prescript
ionr equir
espossessioningoodf ai
thandwi thj ustti
tl
ef ortenyear s.In
extraordi
nar yprescri
pti
on,ownershipandotherr ealri
ghtsoveri mmovablepr oper t
y
are acqui r
ed through unint
err
upted adverse possession t her
eoff orthi
rty years
withoutneedoft i
tl
eorofgoodf ait
h.(Gesmundon,etal .v.CAGRNo.119870,Dec.
23,1 999,citi
nghei sofSegundaMani
r ngdingv.CA,276SCRA601)( Ar
t.11
08,NCC)

Q:Againstwhom maypr escri


pti
onr un?
A:Pr
escr i
ption,bot hacqui si
ti
veandext i
nctive,runsagai
nst
:
a)Mi norsandot heri ncapaci
tatedper sonswhohavepar ents,guardi
ansorot
her
legal r
epr esentati
ves;
b)Abs ent eeswhohaveadmi nist
rators,eit
herappoint
edbyt hem befor
ethei
r
appear ance,orappoi nt
edbyt hecour ts;
c)Per sonsl ivi
ngabr oad,whohavemanager soradmini
str
ator
s;and
d)Jur i
dical persons,excepttheSt ateandi t
ssubdivi
si
ons.(Art
.1108,NCC)

Q:Doespr escri
pti
on run bet
ween husband and wi
fe,orbetween parentsand
chi
ldr
en,orbetweenguardianandward?
A:Prescr
ipt
iondoesnotr unbetweenhusbandandwi f
e,eventhoughtherebea
separ
ati
onofpropertyagr
eeduponinthemar r
iageset
tl
ementsorbyjudi
cial
decree.

Ci
vi
lLawBarRevi
ewNot
es Page46
Neit
herdoespr escr
ipt
ionrunbetweenparent
sandchi
ldr
endur
ingt
hemi nori
tyor
i
nsanit
yorthelatt
er,andbetweenguardi
anandwardduri
ngt
hecont
inuanceofthe
guardi
anshi
p.(
Ar t
.1109,NCC)

Q:Whatar ethet
hingsorpr
operti
esthatcannotbeacqui
redbyprescri
pti
on?
A:Pr oper
ti
es ofspouses,parents and chil
dren,wards and guardi
ans,under
rest
ri
cti
onsimposedbylaw.(Ar
t.1109,
NCC)

Q:Doesprescri
pti
onobt
ainedbyaco-
propri
etororco-
ownerbenef
itt
heother
s?
A:Yes,prescri
pti
onobt
ainedbyaco- pr
opriet
ororaco- ownershal
lbenefi
tthe
ot
hers.(
Art.1
111,NCC)

Q:Whatar ethetwokindsofacquisi
ti
vepr escri
pti
on?
A:Acquisi
ti
veprescri
pti
onofdomi nionand ot herrealr
ightsmaybeordinaryor
ext
raordi
nary.
Ordinar
yacquisi
ti
veprescr
ipt
ionr equirespossessi
onoft hi
ngsi
ngoodfait
hand
wit
hjustti
tl
efort
hetimefi
xedbyl aw.( Ar
t.1117,NCC)

Q:Whatarethecharacter
ist
icsofpossessi
onneededf
orpur
posesofpr
escri
pti
on?
A:Possessi
on has to be i nthe conceptofan owner,publi
c,peacefuland
uni
nter
rupt
ed.(Ar
t.1
1 18,NCC)

Q:Ar e act
sofpossessorychar act
erexecuted i
n virt
ue ofli
cense orbymer e
t
oleranceoftheowneravai
lablef
orpurposesofpossessi
on?
A:No,act sofposses sor
y charact
erexecuted i
n virt
ue ofli
cense orby mere
t
oleranceoft heownershallnotbeavail
ableforthepur poseofpossessi
on.(
Art
.
11
1 9,NCC)

Q:Howiscivi
li
nter
rupt
ionpr
oduce?
A:Ci
vi
li
nter
rupt
ioni
sproducebyjudi
cial
summonst
othepossessor
.(Ar
t.1
123,NCC)

v.Landt
it
lesanddeeds

 TheRegal i
andoct ri
nedoesnotnegat eNATIVETITLEt olandsheldinpri
vat
e
ownershipsi nceti
mei mmemor i
al.InCar i
novs.InsulartheSupremeCour t
rul
edandr ecogni
zedtheexistenceofnativeti
tl
etoland,orownershipofl
and
byFili
pinosbvi r
tueofpossessi onunderacl aim ofowner shi
p si
ncetime
i
mmemor ialandi ndependentofanygr antfr
om theSpani shCr ownasan
except
iont ot het
heoryofjur
ar egal
ia.

 Regist
rat
iondoesnotvestti
tl
e. Iti
smerel
yevidenceofsucht i
tl
eovera
part
icul
arland.Ourl
andregi
str
ati
onl
awsdoesnotgivet
heholderanybet
ter
t
it
lethanwhatheactual
l
yhas.

Ci
vi
lLawBarRevi
ewNot
es Page47
 Registr
ati
onisnotamodeofacquir
ingowner
shi
pbutismerelyaprocedure
t
oes t
abli
shevi
denceoft
it
leoverr
ealt
y.Iti
smerel
yevidenceofownership
previ
ouslyconf
err
edbyanyofther
ecogni
zedmodesofacquir
ingowner
ship.

 A certi
fi
cateoft i
tl
eissuedpursuantt
oapubl iclandpatenthasthesame
vali
dit
yandef f
icacyasacert
if
icateoft
it
lei
ssuedthroughor
dinar
yregi
str
ati
on
proceedings.

 A cert
if
icat
eoft i
tl
eshal
lnotbesubjectt
ocoll
ater
alatt
acknorshal
litbe
al
ter
ed,modi f
iedorcancel
l
edexceptinadir
ectproceedi
ngi
naccordance
wi
thlaw.

 Privat
ecorporat
ionsorassociat
ionsmaynotholdsuchal
i
enablel
andsofthe
public domai
n exceptby l ease,fora peri
od notexceedi
ng 25 years,
renewablefornotmor ethan25year sandnottoexceed1,000hect
aresin
area.

 Pri
vatecor porati
onsorassoci ati
onsaredisqual
if
iedfrom acquiringali
enable
l
andsoft he publi
c domai n.However ,where atthe ti
me t he corporati
on
acquir
edt heland,itspr edecessor
-in-
int
eresthadbeeni npossessi onand
occupat i
onthereofint hemannerandf ortheperiodprescri
bedbyl aw asto
enti
tl
e hi m to r egist
rat
ion in his name,t hen the pr oscri
ption against
corporati
onsacqui ri
ngal ienabl
elandsoft hepublicdomai nexceptt hrough
l
ease doesnotappl yfort he l
and wasno longerpubl i
cl and butpr ivat
e
property.

 I
ft hepossessionofal i
enableand disposabl
eland commenced onl yaft
er
June1 2,1 945,onecanst i
llapplyforregist
rat
ionoft hepr oper
tythrough
prescri
pti
on( Sec.14[2]PRD) . Pr
operti
esclassi
fiedasalienablepubli
cland
maybeconver tedintopri
vatepropert
ybyor di
naryprescri
pti
onof1 0yearsor
extraor
dinaryprescri
pti
onof30year s,wit
houtneedoftit
leorgoodf ai
th.

 Appl
i
cat
ionf
orconf
ir
mat
ionoft
it
leundert
hePRD:

1. The publ
i
c shal
lbe gi
ven not
ice ofthe i
nit
ialhear
ing bymeansof
publ
i
cation,mai
l
ingandposti
ng.Therequir
ementofgi vi
ngnoti
cebyal
lthr
ee
modesisMANDATORY.

 Purposeofpubl i
cati
on-(a)t
oconferj
uri
sdict
ionupont hecour t
overther es;and( b)toappr
isethewholewor l
doft hepending
regist
rat
ioncasesot hatt
heymayassertthei
rright
sori nt
erest
s
i
nt heland,ifany,andopposetheappl
i
cati
on,ifsomi nded.

Ci
vi
lLawBarRevi
ewNot
es Page48
 Alandregist
rati
onisaproceedi
ngi
nrem,andt
heproceedi
ng
r
equir
esconst r
ucti
vesei
zur
eofthel
andasagai
nstal
lper
sons,
i
ncl
udingthestate.

 Publi
cationisanewspaperisnecessar ytoaccordwitht
hedue
processr equi
rement
. Publicat
ion i
n a newspaperofgeneral
ci
rculat
ionremainsanindi
spensabl
epr ocedur
alrequi
rement
.

2. AMENDMENT OF THE APPLI CATION - Wher et he amendment


consist
si nasubstanti
alchangeintheboundari
esorincr
easei
nar eaofl
and,
orinvolvetheincl
usionofadditi
onalare,t
heamendmentshallbesubjectto
thesamer equi
rementofpubl i
cat
ionandnoticeasinthecaseofanor i
ginal
appli
cation.

Wherenopubli
cati
onhasevenbeenmadeexceptt heini
ti
alpubli
cati
on,
and thi
sdid notincl
udet headdi t
ionalar
ea,t heregi
str
ati
oncour thad no
j
urisdi
cti
onoverthesaidincludedandaddi t
ionalar
eaandi t
sadj udi
cati
ont o
theappli
cantovert
headditionalar
eaisanulli
ty.

3. ORDEROFGENERALDEFAULT–i fnoper sonappearsandanswer s


wit
hint hetimeall
owed,thecourtshal
l,up[
onmot ionoftheappli
cat
ion,or
der
adef aulttobeent er
edandr equi
retheappl i
canttopresentevi
dence.The
not
icest ates:TO ALLWHOM I TMAYCONCERN” -al ltheworldaremade
parti
esdef endantsand shal
lbei ncl
uded inthedefaultorder
,thegener al
defaultisaddr
essedtothewholewor l
d.

4. ORDER OF SPECI AL DEFAULT – when an appear ance has been


ent
eredandananswerfi
led,adefaultordershallbeenter
edagainstpersons
whodidnotappearandanswer.Thiss peci
alorderofdefaul
tisdi
rectedonly
agai
nstt
hosewhodidnotentert
heirappearanceandf i
leananswer.

5.WHEN JUDGMENTBECOMESFI NAL–t hejudgmentr enderedinal and


regi
strati
oncasebecomesfi
nalupontheexpirat
ionoffi
fteen(15)daystobe
countedf rom t
hedat
ethepart
yconcernedreceivesnot
icethereof
,incl
uding
theSolici
torGener
alwhoappearsf
ortheStat
e.

6. Wr
itofpossessi
oni
nlandr
egi
str
ati
oncases–

Af
tert
heregi
str
ati
onofalandisdecreedi
nfavoroft
heappli
cant,heas
wellasanysubsequentpur
chaseroftheproper
tyhasther
ightt
othetit
leand
possessi
onoftheland,andtothatendhemayaskt hepropercour
tfort he
i
ssuanceofawr i
tofpossessi
on,providedthesamehasnotbeeni ssued
before.

Ci
vi
lLawBarRevi
ewNot
es Page49
Awr i
tofpossessi
onmaybei ss
uednotonl
yagainstthepersonwho
hasbeendef eat
edinar egi
str
ati
oncasebutal
soagai
nstanyoneunl awf
ull
y
andadver sel
yoccupyingthelandoranyporti
onther
eofDURI NG theland
regi
str
ati
onpr oceedi
ngsUPTOTHEI SSUANCEofthefi
naldecree.

7. Wri
twillNOTissueagai
nstper
sonst
aki
ngpossessi
onAFTERi
ssuance
off
inal
decree

Whent hepar tiesagai nstwhom awr itofpossessi


oni ssoughtent ered
i
ntopossessionaf tert hei ssuanceoft hefi
naldecree,andnoneoft hem had
beenapar tyi nther egistrati
onpr oceedings ,t
hewr i
tofpossessi onwi l
l,not
i
ssue.Aper sonwhot ookpossessi onoft hel andafterfi
nal;adjudicat
ionof
thesamei nr egist
rationpr oceedingscannotbesummar i
l
youst edthrougha
writofpossessionsecur edbyamer emot ionandt hatregardlessofanyt i
tl
e
orlackoft i
tl
eofper sonst oholdpossessi onoft helandi nquest i
on,t hey
cannotbeoust edwi thoutgi vingthem thei
rdayi ncourtinproperindependent
proceedi
ngs. Ther emedyi stoinsti
tuteasepar at
eact i
onf orunlawfulent r
y
ordetai
nerorf orreinvi ndicatoryacti
on,asthecasemaybe.

8. Decr
ee ofr egi
str
ation cannotbe i ssued unti
lafterthe judgment
becomes f inal- Execut i
on pending appeali s notapplicabl
ei nland
regist
rati
on pr oceedi
ngs. I tisf r
aughtwi th dangerous consequences.
I
nnocentpur chasersmaybe mi sl
ed into purchasi
ng realproperti
esupon
rel
ianceonaj udgmentwhi chmayber eversedonappeal .

9. TheTor rensti
tl
ebecomesi
ndefeasi
bleandi
ncont
rover
ti
ble af
terone
yearf
rom t
hei
ssuanceoft
hedecr
ee.

1
0. REMEDI
ESofaggr
ievedpar
ty:

a. Mot
ionf
ornew tri
alorreconsi
derati
on– wit
hintheper
iodf
or
t
aki
nganappeal
(15daysfrom r
eceiptoft
hedecisi
on)

GROUNDS(
FAME;newl
ydi
scover
edevi
dence)

b. Appeal
–wi
thi
n15daysf
rom r
ecei
ptofacopyoft
hedeci
si
on

c. Rel
i
eff
rom j
udgmentorr
eli
eff
rom deni
alofappeal

Veri
fi
ed,fi
ledwi t
hin60 daysaf t
ert hepet
it
ionerlear
nsoft he
j
udgment,f i
nalorder,orotherpr
oceedingtobesetasi de,and
notmorethan6mont hsaft
ersuchjudgmentorfinalorderwas
ent
ered,orsuchpr oceedi
ngwast aken

Ci
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lLawBarRevi
ewNot
es Page50
d. Revi
ewofDecr
ee(
Sec.32PD1
529)

Wi t
hin one (1) year f
rom t he issuance of t
he decree of
regist
rat
ionandthattheregist
rati
onwaspr ocur
edthr
oughactual
fraudprovidedthatthepropertyhas notpassedtoaninnocent
purchaserforval
ue

e. Reconveyance(Sec.53and96)– providedt
hepr
oper
tyhasnot
passedtoaninnocentpur
chaserf
orvalue

f. Damages(Sec.32)
g. Cl
aim agai
nsttheAssuranceFund
h. Reversi
on(Sec.101,CANo.1 41
i
. Annul
mentofJudgment
k. Cri
minalPr
osecutionundertheRevi
sedPenal
Code

11. CADASTRALPROCEEDI NGS–i ntheabsenceoff r


aud,ti
tl
etolandin
cadastralpr
oceedingsisvested ont heowner ,upont heexpir
ati
onoft he
periodt oappealfrom t
hedeci si
onoradj udicati
onbyt hecadastr
alcourt
,
withoutsuchappealbeingper f
ected,andf r
om t hatt
imethelandbecomes
regist
eredproper
tywhichcannotbel ostbyadversepossessi
on.

12. Prohi
bit
ionagainstal
ienat
ionofl
andsacqui
redundert
heHOMESTEAD
andFREEPATENTPr ovisi
ons

Sec.118.Excepti nfavoroft hegover nmentoranyofi tsbr anches,


unit
sori nst
it
uti
onsorlegallyconstit
utedbanki ngcorp.l andsacqui redunder
thefreepatentorhomest eadpr ovi
sionsshallnotbesubj ecttoencumbr ance
orali
enationfr
om thedateoft heappr ovaloftheapplicationandf orat erm of
fi
veyear sfr
om andaf t
erthedat eofi ssuanceofthepat entorgr antnorshall
theybecomel i
abletot hesat i
sfact
ionofanydebtcont r
actedpr i
ort othe
expir
ationofsai dperi
od;buti mpr ovement sorcr opsont helandmaybe
mortgagedorpl edgedtoqualif
iedper sons,associ
ati
ons ,orcor porat
ions.

Noali
enati
on,transfer
,orconveyanceofanyhomest eadaft
er5years
and bef
ore 25 yearsafterthe i
ssuance oft
it
le shal
lbe val
id wi
thouthe
appr
ovaloft
heSecr et
aryofAgricul
tur
eandNaturalResour
ces,xxx.

Anyencumbr ancemadeont hepar celoflandacquir


edunderaf ree
pat
entorhomesteadwi t
hinf
iveyear
sf r
om thegrantofsuchpat
entresult
sin
t
hecancell
ati
onofthegrantandthereversi
onofthelandtopubl
i
cdomai n.

Theprohi
bit
ionst
art
sfrom t
hedat
eofapprovalupt
oandincl
udi
ngthef
if
th
yearf
rom andaf t
erthedateoft
hei
ssuanceofthepat
entorgr
ant
. The

Ci
vi
lLawBarRevi
ewNot
es Page51
patentisconsi
deredissuedoncetheorderf
ori
tsi
ssuancei
spromulgatedand
theref
ore,thefiveyearperiodiscomputedfr
om thi
sdateandnotf r
om the
date ofr egi
str
ati
on withthe Regi
sterofDeedsorf rom t
he date ofthe
certi
fi
cateofti
tl
e.

13. PERI ODOFREPURCHASE–Whenmor tgageandconveyanceall


owed
al
ready,t
he5- yearperi
odf orlegalr
edempt
ionst
art
sfrom thedat eoft
he
execut
ionofthedeedofsal e,andnotfr
om thedat
eofr egist
rat
ionint
he
off
iceoft
heRegisterofDeeds .

Thefiveyearperi
odofr edempt i
onf i
xedi nSec.11
9ofthePLAofhomest ead
soldatext
raj
udici
alfor
eclosurebeginstor unfr
om thedat
eaf t
ertheexpirati
on
ofthe1yearper i
odofr epurchaseallowedi nanextraj
udici
alfor ecl
osure.
Fiveyearperiodstart
st orunaf tertheexpirat
ionoftheredempt ionper i
od
underAct.3135,asamended,wi t
hinwhi chtoexer
ciset
herightt
or epurchase
underthePLA.

1
4.FORECLOSURESOFMORTGAGE:

 MORTGAGOR’ –Aftert
heexecution
ofa r ealestat
e mor t
gage,the mort
gagorhas an equity of
redemption exerci
sabl
e withi
nt he peri
od sti
pulat
ed int he
mor t
gagedeed. I ncaseofj udi
cialf
orecl
osure,theequit
yof
redemptionsubsist
saftert
hesaleandbeforeitisconfi
rmedby
thecourt.

 However,incaseofj udi
cialfor
eclosur
eofmor tgageinf avorof
bankingi
nsti
tut
ions,Sec.78oft heGeneralBankingLawsgr ant
s
themor t
gagorar i
ghtofr edemptionwhichmaybeexer ci
sed
withi
noneyearf rom t
hesal e–whi chi
sf r
om ther egi
str
ationof
thesalewit
htheregist
erofdeeds.

vi
.obl
i
gat
ionsandcont
ract
s

SOURCESOFOBLIGATION
Art
.11
57.
 Obli
gat
ionsar i
sefr
om:
(1) Law;
(2) Contr
acts;
(3) Quasi-
contracts;
(4) Actsoromissionspunishedbyl
aw;and

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(
5) Quasi
-del
i
cts.(
1089a)

DUTI
ESOFDEBTORI
NANOBLI
GATI
ONTOGI
VEADETERMI
NATETHI
NG(
See 
Art
s.
11
63,11
64,1
166.
)

1
. Topr
eser
veort
akecar
eoft
het
hingduewi
tht
hedi
l
igenceofagood
f
atherofaf
amil
y

DI
LIGENCE OF A GOOD FATHER OF A FAMILY– or
dinar
y car
e orthat
di
li
gencewhichanaver
ageorreasonabl
ypr
udentper
sonwouldexerci
seoverhis
ownpropert
y

NOTE:
 RuleonStandardofCar
e
• Thatwhichthelawrequi
res;or
• Thatsti
pul
atedbytheparti
es;or
• Intheabsenceofthetwo,dil
igenceofagoodf
atherofaf
ami
l
y

2. To del
iverthef
rui
tsofthethi
ng:Ri
ghtt
othef
rui
tsoft
het
hingf
rom t
he
ti
met
heobli
gati
ontodel
iveri
tari
ses.

WHENOBLI
GATI
ONTODELI
VERARI
SES

• GENERALRULE:
 From t
heti
meoft
heper
fect
ionoft
hecont
ract(
i.
e.
meet
ingoft
hemindsbet
weenthepar
ti
es)

• EXCEPTIONS
a. whent hepar t
iesmadeast i
pulat
ionasr egardsther i
ghtoft
hecredi
tor
tothef
rui
tsofthethi
ng
b. when t he obl
igat
ion i
ssubjectto a suspensive condi
ti
on orperi
od;
ari
sesuponfulf
il
l
mentoft hecondi
ti
onorarri
val oft
heper i
od

KI
NDSOFDELAY
1
. Mor
aSol
vendi
– defaul
tonthepartofthedebtor
:
• Mor
aSol
vendi
Exr e–  def
aulti
nrealobli
gat
ions
• Mor
aSol
vendi
Exper sona–  
defaulti
npersonalobl
i
gat
ions

• GENERALRULE:Thoseobl
igedtodeliverort odosomet hi
ngincuri
n
delayfr
om theti
met heobli
geejudiciall
yorextr
ajudi
ciall
ydemands
fr
om them t
he f
ulfi
l
lmentoft heirobl
i
gat
ion.

• EXCEPTIONS 
(nodemandnecessar y)
a. Whent heobligat
ionort
helawexpr essl
ysodeclare;or
b. Whenf rom thenatur
eandt hecir
cumst ancesoftheobli
gat
ioni
t
appear
s t
hatthedesignat
ionofthet imewhent hethingi
stobe

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deli
ver
edort
he ser vi
cei stober enderedwasacont r
oll
i
ngmot i
ve
fort
heest
abl
ishment ofthecont
ract;or
c. When demand woul d be useless,as when t
he obli
gorhas
r
ender
edi
t beyondhi spowertoper f
orm

2. Mor a Acci
piendi
 – def
aulton par
tofcredi
torwhen he unj
ust
if
iabl
y
ref
usest
oaccepttheperformanceoftheobl
i
gat
ion.

3. Compensat io morae– 
both part
ies ar
e in def
ault(
in r
eci
procal
obl
i
gat
ions)
;ther
eisnoacti
onabl
edefaul
tonthepar
tofbot
hpar
ti
es

RULEONFORTUI
TOUSEVENT:

• GENERALRULE:Nol
i
abi
l
it
yforf
ort
uit
ousevent
• EXCEPTI
ONS:

1. Whenexpr essl
ydecl aredbyl aw (badfait
h,subj ectmatt
eri s
gener
ic,debt
orisindelay)
2. Whenexpr essl
ydeclaredbyst i
pul
ati
onorcontract
3. Whennat ureofobli
gati
onr equi
resassumpti
onofr i
sk
4. Whent heobl i
gorisi ndef aul
torhaspr omised to del
i
verthe
samethingtotwoormor eper sonswhodonothavet hesamei nt
erest
(Ar
t.1
1 65[
3])

REMEDI
ESAVAI
LABLETOCREDI
TORSFORTHESATI
SFACTI
ONOFTHEI
RCLAI
MS

1. Exactfulf
il
lmentoft heobl i
gati
onbyspeci f
icorsubst i
tuteperformance
withar i
ghttodamagesi nei thercase;
2. I n case ofr eciprocalobl igati
ons,pet i
ti
on the cour tt oresolve the
cont
ract;
3. Pur sue the leviable( notexemptf rom at t
achmentundert he law)
propertyofthe debtor;
4. Acci ondirecta (
Ar t
s .1729and1 652):
Rightoft helessortogodi rectl
yto
sublessee forunpai dr entsoft he lessee.Ri ghtoft he l
abor ersor
personswho fur
nish mat er
ial
sf ora piece ofwor kunder t
aken bya
contractortogodi r
ectlyto t
heownerf oranyunpai dclaimsduet othe
contractor
5. Acci onsubr ogatoria –t obesubr ogatedt oalltherightsandact ionsof
thedebt or savet hosewhi char einherenti
nhi sperson

6. Acci
onPauli
ana– 
aski
ngthecourtt
oresci
ndortoimpugnallt
heacts
whi
cht
he debtormayhavedonetodefr
audthecr
edi
tor
s(Art
s.1
380- 1
389)

PUREANDCONDI
TIONALOBLI
GATI
ONS

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PURE –onewhoseef fect
ivi
tyorext
ingui
shmentdoesnotdependuponthe
ful
fi
l
lmentornon-ful
fi
l
lmentofaconditi
onorupontheexpi
rat
ionofaper
iod
andisdemandabl
eatonce

CONDITIONAL – onewhoseeff
ecti
vi
tyissubor
dinat
edtothef ul
fi
l
lmentor
non-f
ulf
il
l
mentofaf ut
ureANDuncer
tai
neventoruponapasteventunknown
tot
hepar t
ies

CONDITI
ON 
- Fut
ure and uncer
tai
n eventora pasteventunknown t
othe
par
ti
es

1
. Suspensi
ve  – happeningofconditi
ongivesri
setoobl
igat
ion
• Effect
s:
a. Ef fectivi
tyret
roactstothedayoftheconsti
tuti
onoft
heobl i
gat
ion
b. No r etr
oactivi
ty with ref
erence to fruit
s or i
nter
est and
pr
escr
ipt
ion
c. Cr editormaypr eser
ver i
ght
s
d. Debt or–r ecoveryofpaymentbymi st
akeorevenw/ omi st
ake

I
MPOSSI
BLEANDI
LLEGALCONDI
TIONS

• GENERALRULE: Theyshall annultheobli


gati
on whi
chdependsupont
hem
• EXCEPTI
ONS:
a. pre-exi
sti
ngobligati
on
b. ifobl
igati
onisdivisi
ble
c. insimpleorremuner atorydonati
ons
d. test
ament ar
ydispositi
ons
e. conditi
onsnottodoani mpossibl
ethi
ng

OBLI
GATI
ONS WI OD – 
TH A PERI Anobli
gat
ionwhichdependsonaf
utur
eand
cer
tai
nevent(
See 
Art
s1193,1196)

WHEN STIPULATION SAYS “PAYABLE WHEN ABLE”– ITIS WITH A PERI


OD,
REMEDY:
1. Agreementamongparti
es
2. Cour tshal
lfi
xper
iodofpaymentwhenpar
ti
esunabl
etoagr
ee

KI
NDS:
1. Resolutor
y (in di
em )– demandabl
e atonce butt
erminat
esupon
ar
rival
ofthedaycer t
ain
• Daycertai
n–thatwhi
chmustnecessar
il
ycome,al
thoughi
tmay
notbeknownwhen
2. Suspensi (exdi
ve  e )–obl
i
gat
ionbecomesdemandableont heday

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st
ipul
ated

TERM CONDI TION


I
ntervalof t ime whi ch isf uture and Factoreventwhi chi sfut
ureoruncertai
n
certain orapasteventunknownt othepart
ies
Ti
me w/ c must necessar il
y come Fut ureanduncer tainfactoreventwhich
al
thoughi tmaynotbeknownwhen mayormaynothappen
Exerts an i nfl
uence upon t he time of Exer t
s an i nf
luence upon t he very
demandabi li
ty orext i
nguishmentofan exi stenceoft heobl i
gati
onit
self
obli
gat i
on
Does nothave any r et
roactive effect Hasr etr
oacti
veef f
ect
unless t herei s an agr eementt ot he
contr ary
Wheni ti
sleftexclusi
vel
yt othewi ll
ofthe Wheni tislef
texclusivel
ytothewil
lofthe
debt or ,t
heexi st
enceoft heobl i
gati
oni s debtor,theobli
gationisvoid
aff
ect ed

WHENCOURTSMAYFI
XPERI
OD:

1. I
ft he obl
igat
ion does notf i
x a peri
od,butf r
om its nat
ure and
ci
rcumst
ancesit canbei nf
erredthataper
iodwasint
endedbytheparti
es
2. I fthedurati
onoftheperioddependsuponthewil
lofthedebtor
3. I ncaseofr eci
procalobli
gati
ons,whenther
eisajustcauseforfi
xi
nga
per
iod
4. I fthedebtorbi
ndshimsel fwhenhismeansper
mithimtodoso

PERI
ODFORWHOSEBENEFI
T

• GENERALRULE:  Whenaper i
odisdesignatedfortheperformanceor
ful
fi
ll
mentofanobl i
gation,itispresumedt ohavebeenest abl
ishedforthe
benefitofbothcredi
toranddebt or
.
• EXCEPTION: Wheni tappearsfrom t
het enoroftheobli
gati
onorother
cir
cumst ancesthattheper iodhasbeenest abli
shedinfavorofoneort he
other.

PERI
ODFORTHEBENEFI
TOFTHECREDI
TOR

• Credit
ormaydemand t heful
fi
l
lmentoftheobl
igati
onatanyti
mebutt
he
debtorcannotcompel
himtoacceptbef
oret
heexpir
ati
onoft
heper
iod

PERI
ODFORTHEBENEFI
TOFTHEDEBTOR

• Debt
ormay oppose any pr
emat
ure demand oft
he cr
edi
torbuthe may

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renouncet hebenef i
toft heper i
odbyper f
orminghisobligat
ioni
nadvance
(Manr esa;WHENDEBTORLOSESRI GHTTOPERI OD:
• I
nsol vencyofdebtor,unl
esssecur it
yprovi
ded
• Didnotdel i
versecuri
typromi sed
• I
mpai redsecur
it
yt hr
oughhi sownact sorthroughfor
tui
touseventunl
esshe
givesnewsecur it
iesequallysati
sfactor
y
• Violatesundert
akinginconsiderati
onofextensionofperi
od
• Attempt stoabscond

FACULTATI
VE -
 onl
yonepr estat
ionhasbeenagr
eeduponbutanot
hermaybe
gi
veninsubst
it
uti
on

EFFECTOFLOSSORDETERI
ORATI
ONTHRUNEGLI
GENCE,DELAYORFRAUDOF
OBLIGOR:

• Oft
hingi
ntendedassubst
it
ute-noli
abi
l
it
y
• Oft
hesubsti
tut
eaft
ersubst
it
uti
onismade–wi
thl
i
abi
l
it
y

ALTERNATIVE –boundbydi
ff
erentpr
estat
ionsbutonlyonei
sdue
RIGHTOFCHOI CEINALTERNATIVEOBLI GATIONS• As a gener
alr
ule
t
herightofchoi
ce bel
ongst
odebtor

EFFECTOFLOSSOFOBJECTSOFALTERNATI VEOBLIGATI
ONS
1
. I
fther
ightofchoi
cebel
ongst
othedebt
or

• I
ft hroughaf ort
uit
ouseventallwerelost
,debtorcannotbeheldli
able
fordamages
• I
f1ormor ebutnotallofthethi
ngsarelostoroneorsomebutnotallof
t
hepr estat
ionscannotbeper for
medduet ofort
uit
ouseventorf
aultof
t
hedebt or,credit
orcannotholdthedebtorli
abl
efordamagesbecause
t
hedebt orcanst i
ll
complywithhisobli
gati
on
• I
fal lt hi
ngs,exceptone,wer el ost
,t he debt
ormustcompl y by
performingt hatwhichremain

• I
fall
werelostbyfaul
tofthedebt
ort
helateri
sli
abl
efort
heval
ueoft
he
l
astt
hingorservi
cewhichbecameimpossibl
e

2. Ifri
ghtofchoi cebelongstot hecredit
or
• If1oft hethi
ngsi slostthroughaf ortui
tousevent,thedebt orshall
per f
orm t he obl
i
gat i
on bydel i
vering thatwhi ch t
he credi
tors houl
d
choose f r
om among t he remainderort hatwhich remainsifonl y1
subsists
• Ifthel ossof1oft hethingsoccur sthrought hefaul
tofthedebt or,t
he
creditormaycl ai
m anyoft hosesubsi sti
ngort hepriceofthatwhi ch,

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through the faul
toft he former,has di
sappear
ed wit
har i
ghtto
damages
• I
fal lt
hethingsarelostt
hroughthefaul
toft
hedebtor,t
hechoi
cebythe
credit
orshallfal
lupont hepri
ceofany1oft hem,alsowit
hindemnit
y
fordamages.

ALTERNATI
VEvs.FACULTATI
VE

ALTERNATI VE FACULTATI VE
a)Varioust hingsareduebutt hegi vi
ng a)Onl yonet hingisduebutasubst it
ute
pri
nci pallyofonei ssuffi
cient may be gi
ven t
o render
payment /f
ulfi
ll
menteasy
b)I
fone ofpr est
ati
onsi si l
legal,ot hers b)I fpr incipalobligations is void and
maybeval i
dbutobligationr emai ns there is no necessi ty of gi ving t he
substi
tute;nul l
it
yofPcar ri
eswi t
hi tnull
ity
ofS
c)Ifitisimpossi bl
et ogiveal lexceptone, c)I fitisi mpossibletogi vet heprincipal,
thelastonemustst i
llbegi ven thesubst it
utedoesnothavet obegi ven;
i
fi tisimpossi bletogi vet hesubst i
tute,
theprincipal muststi
llbegi ven
d)Rightt ochoosemaybegi venei t
hert o d)Ther ightofchoi cei sgivenonl yt othe
debtororcr editor debtor
CULTATI VE
JOINTANDSOLI DARYOBLI GATI ONS( See  Art
s.1207–1 222)EXCEPTI ONSTOTHE
PRESUMPTI ON
1. whenexpr esslyst atedthatt hereissolidarity
2. whent helawr equi ressolidari
ty
3. whent henat ureoft heobl igati
onr equiressol i
dari
ty
4. whenachar georcondi ti
oni simposeduponhei rsorl egateesandt he
testament expr esslymakest hechar georcondi ti
oninsolidum ( Manresa)
5. when a sol i
dar yr esponsi bi
li
tyi simput ed bya f i
nalj udgmentupon
sever al defendant s(Guti
er r
ezv.Gut i
errez)

EFFECTSOFJOINTLIABI
LITY
1. Demandononepr oducesdelayonlywit
hr especttothedebt
2. Inter
rupt
ioni
npaymentbyonedoesnotbenef i
torprejudi
cet
heot
her
3. Vicesofonedebtortocredi
torhasnoeffectont heothers
4. Insol
vencyofonedebtordoesnotaf f
ectotherdebtors

JOI
NTDIVISI
BLEOBLI GATIONS
1. Eachcr edi
torcandemandf ort
hepaymentofhispropor
ti
onat
eshar
e
ofthecredit
,whil
eeachdebtorcanbehel
dli
abl
eonlyfort
hepaymentofhi
s
propor
tionat
eshareofthedebt
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2. Aj oi
ntcredit
orcannotacti
nrepr
esent
ati
onoft
heothercr
edi
tor
swhile
ajoi
nt debtorcannotbecompell
edtoanswerf
ort
heactsorli
abil
i
tyof
theot
her debt ors

JOINTINDIVI
SIBLEOBLI GATI
ONS
1. Iftherear
e2ormor edebt
ors,theful
fi
l
lmentoforcompliancewit
hthe
obli
gati
onrequirestheconcurr
enceofallthedebtors,al
thougheachf orhi
sown
share.Theobl
igati
oncanbeenforcedonl
ybypr oceedi
ngagainstal
lofthedebt
ors.

2. I ft
herear
e2ormor ecredi
tor
s,t
heconcurr
enceorcollect
iveactofal
l
the credi
tor
s,al
though each f
orhisown shar
e,isalso necessaryforthe
enforcementoftheobl
i
gation

EFFECTOFBREACH
• I
foneoft hejointdebt or
sf ail
stocompl ywi t
hhi sunder t
aking,theobl igati
on
cannol ongerbef ulfi
ll
edorper f
ormed.Consequent l
y,iti
sconver tedintoone
ofi ndemni tyfordamages.I nnocentj oi
ntdebt orshallnotcont ri
but et othe
i
ndemni tybeyondt hei rcorrespondingshareoft heobligati
on.ILI
TY
S
I
NDI VISI BILI
TY SOLIDARI TY
Refer stot hepr estat
ionwhi chconst i
tut
es Ref erstot helegaltieandconsequent l
y
theobj ectoft heobl i
gation to
Thesubjectsorpar ti
esoft heobligati
on
Plurali
tyofsubj ectsi
snotr equired Plur
ali
tyofsubjectsisindispensable
I
ncaseofbr each,obl i
gationi sconver t
ed Whent her eisli
abili
tyont hepar toft he
i
nto1ofi ndemni t
yfordamagesbecause debt ors because of t he br each, the
ofbr each,i ndivisi
bil
i
tyoft heobl i
gati
oni s soli
dari
lt
yamongt hedebt orsremai ns
terminat ed
OLIDARI TY
SOLI DARY–  mustbeexpr essedi nstipul
ati
onorpr ovi
dedbyl aw orbynat ureof
obli
gat ion

• I
nst
ances 
wher
elawi
mposessol
i
dar
yobl
i
gat
ion:

a. Obli
gati
onsar i
si
ngf r
om tor
t
b. Obli
gati
onsar i
si
ngf r
om quasi
-contract
s
c. Legalprovi
si
onsr egardi
ngobl
igati
onofdeviseesandlegat
ees
d. Li
abil
it
yofprincipal
s,accompl
ices,andaccessori
esofafel
ony
e. Bail
eesincommodat um

• EFFECTS:
a. Paymentmade bef ore debtis due,no int
erestcan be char
ged,
ot
herwi
se–inter
estcanbecharged
b. I nsol
vencyofone–othersarel
i
ableforshar
epro-rat
a
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c. I
fdifferenttermsandcondit
ions– col
l
ectonl
ywhati sdue,lat
eron
col
l
ectf rom any
d. Nor eimbursementifpaymentismadeafterprescr
ipt
ionorbecame
i
l
legal
e. Remi ssi
onmadeaf t
erpaymentismade– co-debt orst
il
lenti
tl
edto
rei
mbur sement
f. Eff
ectofi nsol
vencyordeat
hofco-debtor–st
il
lli
abl
eforwholeamount
g. Faultofanydebt or–everyonei sresponsi
ble–pr i
ce,damageand
i
nter
est
h. Compl
ete/per
sonaldef
ense–t
otalorpar
ti
al
(upt
oamountofshar
e
onl
y)i
fnotper
sonal
 t
ohim

EFFECTOFLOSSORI MPOSSIBILITYOFTHEPRESTATI ON:


1. I
fwi
thoutf
aul
t–nol iabi
li
ty
2. Ifwi
thfaul
t–ther
eisl i
abi
li
ty(
alsofordamageandi
nter
est)
3. Lossduetofort
uit
ouseventaf terdef
aul
t–ther
eisl
iabi
li
ty(becauseof
defaul
t)

DI
VISI
BLEANDI
NDI
VISI
BLEOBLI
GATI
ONS(
SeeAr
ts.1
223–1
225)

DI
VISI
BLE-   obli
gat
ionthati
scapabl
eofpart
ialperf
ormance
• Executionofcert
ainnoofdayswork
• Expressedbymet ri
caluni
ts
• Natureofobli
gati
on–susceptibl
eofpart
ialf
ulf
il
l
ment

I
NDI
VISIBLE– onenotcapabl eofpar
ti
alper
for
mance
• Togi vedef
init
ethings
• Notsusceptibl
eofpar t
ial
perf
ormance
• Providedbylaw
• Intenti
onofparti
es

OBLI
GATI ONSWI THAPENALCLAUSE( SeeArts.1
226–1 230)
One to which an accessory under
taki
ng is att
ached forthe pur
pose of
i
nsuri
ng it
sper f
ormancebyvi rt
ueofwhi cht heobligorisboundtopaya
st
ipul
atedindemnit
yorper f
orm asti
pulat
edpr est
ati
onincaseofbreach

CHARACTERI STICSOFPENALCLAUSES:
1. Subsi
diary- 
Asageneral
rul
e,onlypenalt
ycanbedemanded,pri
nci
pal
cannotbe demanded,except:Penal
tyisj
ointorcumul
ati
ve
2. Excl usi
ve-  t
akespl
aceofdamage,damagecanonl ybedemandedin
t
hef
f. cases:

a. St
ipul
ati
on–gr
ant
ingr
ight

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b. Ref
usal
topaypenalt
y
c. Wit
hdolo(notofcr
edit
or)

CAUSESFORREDUCTI ONOFPENALTY:
1. Part
ial
/i
rr
egul
arperf
ormance
2. Penal t
yprovi
dedisi
niqui
tous
/unconsci
onabl
e

MODESOFEXTI NGUISHMENTOFOBLI GATI


ON(
Art
.1231
):
1. Paymentorper formance
2. Los soft hethi
ngdue
3. Condonat i
onorr emi
ssionofdebt
4. Conf usionormer gerofri
ghts
5. Compensat ion
6. Novat ion
7. Annul ment
8. Resci ssi
on
9. Fulfi
ll
mentofr esolut
orycondit
ion

PAYMENTORPERFORMANCE-del
i
ver
yofmoneyandper
for
mance,i
nanyot
her
manneroft
heobl
i
gat
ion

REQUI
SITESFORVALI DPAYMENT/ PERFORMANCE
1. Wi t
hrespecttoprest
ati
onit
self
a. I denti
ty
b. I ntegri
tyorcomplet
eness
c. I ndivi
si
bil
it
y

2. Wit
hrespecttoparti
es- mustbemadebypr operpar
tytopr
operpar t
y
a. Payor
i
. Payor-t heoneper f
orming,hecanbet hedebtorhimselforhi
s
heir
s orassi gns orhis agent,oranyone inter
ested inthe
ful
fi
ll
mentoft heobli
gati
on;canbeanyoneasl ongasi tiswit
h
thecredi
tor'
sconsent

i
i
. 3RD per
son pays/
perf
orms - onlyt he credi
tor
's consent
;If
perf
ormanceisdonealsowit
hdebt or'sconsent-het akesthe
pl
aceofthedebtor
.Therei
ssubrogati
onexceptifthe3rd per
son
i
ntendeditt
obeadonation

i
i
i. 3rd 
personpays/
perfor
mswi t
hconsentofcr
edi
torbutnotwit
h
debtor
'sconsent
,therepaymentisonl
ytotheextentthatt
he
paymenthasbeenbenefici
alt
odebt
or

b. Payee

Ci
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i
. Payee-credi
tororobl
i
geeorsuccessori
nint
erestoft
ransf
eree,
oragent

i
i
. 3r
d person-i fanyoft hef f.concur:
• I
tmusthaver edoundedt otheobl
igee'
s
• benefitandonl yt otheextentofsuchbenefi
t
• I
tf al
lsunderar t1 241,par1 ,
2,3–t hebenefi
tist
otalso,
performancei s total

i
i
i. Anyoneinpossessi
onofthecredit–butwi
l
lappl
yonl
yifdebt
hasnotbeenprevi
ousl
ygarni
shed

PAYMENTMADETOANI NCAPACITATEDPERSON,VALIDIF
1. I
ncapacit
atedpersonkeptt
hethi
ngdel
i
vered,or
2. Insofarasthepaymenthasbeenbenef
ici
alt
ohim

PAYMENTTO3RD  PARTYNOTAUTHORI ZED, VALI


DIFPROVEDANDONLYTOTHE
EXTENTOFBENEFIT;PRESUMEDI F
1. Aft
erpayment ,3r
d personacquirest
hecredit
or’
2. Cr edi
torrat
if
iespaymentto3r d 
person
3. By creditor
’ ,debt orhas been led t
o make t
he payment
(est
oppel
)

PAYMENT MADE I N GOOD FAI TH TO A PERSON IN POSSESSI


ON OF CREDIT
SHALLRELEASEDEBTOR;REQUI SITES:
1. Paymentbydebt ormustbemadei ngoodfai
th
2. Cr edi
tormustbe i n possessi
on ofthe cr
editand notmer
elythe
evi
denceofindebtedness

• NOTE:Wi
thr
espectt
oti
meandpl
aceofpayment-
 mustbeaccor
ding
t
otheobl
i
gat
ion

WHEREPAYMENTSHOULDBEMADE
1. I
ntheplacedesignatedintheobli
gat
ion
2. I fthereisnoexpr esssti
pul
ati
onandt heundertaki
ngistodel
ivera
specif
icthi
ng– att hepl acewher ethethingmi ghtbeatt hemomentthe
obli
gati
onwasconstituted
3. I nothercase–i ntheplaceofthedomi ci
leofthedebt
or

• Ti
meofpayment-t i
mest i
pul
ated
• Eff
ectofpayment
– ext
ingui
shobli
gat
ion
Except

ordert
oretai
ndebt

SPECI
ALRULES/
FORMSOFPAYMENT

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1
. APPLICATI
ONOFPAYMENTS–  t
he desi
gnati
on of the debtwhich
paymentshallbemade,outof2 ormoredebt sowing t
hesamecr edi
tor:
st
ipul
ati
onorappli
cat
ionofpar
tygivenbenefi
tofperiod–OK;t obevalid:
mustbedebtor’

REQUI
SITESFORTHEAPPLI CATI
ONOFPAYMENT:
a. Var iousdebtsoft
hesamekind
b. Samedebt or
c. Samecr edi
tor
d. Al ldebtsmustbedue

• EXCEPTION:theremaybeappl i
cat
ionofpaymentevenifalldebt
sare
notyetdueif
:
a. Par t
iessostipul
ate
b. Whenappl icati
onofpaymenti smadebyt hepart
yf orwhose
benefi
ttheterm hasbeenconsti
tuted
c. Paymenti snotenought oext
inguishall
debt
s

HOW APPLI
CATI
ONI
SMADE:

a. Debt ormakest hedesignati


on
b. I fnot,cr
edit
ormakesi tbysostat
ingi ntherecei
ptt
hathei ssues–
unl
essthereiscausef ori
nval
idati
ngthecontract
c. I fnei
therthedebt ornorcr edi
torhasmadet heappl
icati
onori ft
he
appl
icati
onis notval
id,thenappli
cat
ion,ismadebyoperat
ionoflaw

2. CONSI
GNATI
ONWI
THOUTPRI
ORTENDER 
–al
l
owedi
n:

a. Credit
orabsentorunknown/doesnotappearatt hepl
aceofpayment
b. I
ncapacit
atedt oreceivepaymentattheti
meitisdue
c. Refusestoissuer ecei
ptw/ojustcause
d. 2ormor ecr edit
orclai
mingthesamer i
ghttocol
lect
e. Ti
tl
eofobl i
gationhasbeenl ost

LOSSOFTHETHI
NGDUE

LOSSOFTHETHI
NGDUE 
–par
ti
alort
otal
/incl
udesi
mpossi
bil
i
tyofper
for
mance

WHENISTHEREALOSS
a. Whent heobjectperi
shes(
physical
l
y)
b. Wheni tgoesoutofcommer ce
c. Wheni tdisappear
sinsuchawayt hat
:it
sexi
stencei
sunknownori
t
cannotber
ecovered

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WHENISTHEREI
MPOSSI BILITYOFPERFORMANCE:
a. Physi
cal i
mpossibil
it
y
b. Legalimpossibil
i
ty
i
. Di
rectl
y–causedaswhenprohi
bit
edbylaw
i
i
. I
ndir
ectly–causedaswhendebt
orisr
equir
edt
oent
erami
l
it
ary
dr
aft

OBLI
GATIONTODELI VERASPECI FICTHING
• GENERALRULE:Ext i
nguished
• EXCEPTIONS:
a. Debt ori
satfault
b. Debt ori
smadel i
abl
eforfort
uit
ouseventbecauseofaprovisi
on
oflaw, contr
actualsti
pulat
ion ort he nat
ure oft
he obl
igati
on
requi
res assumptionofri
skonpar tofdebtor

OBLI
GATIONTODELIVERAGENERI CTHING
• GENERALRULE:Notext i
ngui
shed
• EXCEPTI
ONS:
a. I ft
hegeneri
ct hi
ngisdel
imit
ed
b. ft hegeneri
cthinghasalr
eadybeensegr
egat
ed
c. Monet aryobli
gati
on

OBLIGATIONTODO
• GENERALRULE:Debtori
srel
easedwhenpr
est
ati
onbecomesl
egal
l
yor
physi
call
y
impossi
blewi
thoutf
aul
tonpar
tofdebtor

REBUSSI
CSTANTI
BUS-  
agreementisval
idonlyift
hesamecondi
ti
onsprevai
l
ingat
t
imeofcont
ract
ingcont
inuetoexistatt
heti
meofperf
ormance;Obli
gor
mayberel
easedinwholeorinpartbasedonthi
sgr
ound.

REQUI
SITES
a. Theeventorchangecoul dnothavebeenf oreseenattheti
meofthe
executi
onoft hecontract
b. Theper formancei sextremelydif
fi
cul
t,butnotimpossi
ble(
becausei
fit
i
simpossible,iti
sext
inguishedbyimpossibi
li
ty
c. Theeventwasnotduet otheactofanyoftheparti
es
d. Thecont ractisforafutureprest
ati
on

CONDONATI
ON

CONDONATI
ON/
REMI
SSI
ONOFTHEDEBT–gr
atui
tousabandonmentofdebt
;

Ci
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r
ightt
ocl
aim;donat
ion;r
ulesofdonat
ionappl
i
es;expr
essor
impl
i
ed

REQUI SITES:
a. Ther emustbeanagr eement
b. Ther e mustbe a subj ectmat t
er( objectoft he r emissi
on,
otherwisethere wouldbenot hingt ocondone)
c. Causeofconsi derationmustbel i
ber ali
ty
(Ess
entiall
ygr atuit
ous ,anactofliberal i
ty)
d. Parti
es mustbe capaci tated and mustconsent ;r equir
es
acceptanceby obli
gor; i mpli
ed i n mor t
is causa and
expressedintervi
vos
e. For mali
tiesofadonat i
onar erequiredi nthecaseofanexpr ess
r
emissi
on
f. Revocabl e–subj ectt oruleoni nofficiousdonati
on(excessi ve,
l
egiti
mei s impai redandi ngrati
tudeandcondi t
ionnotfol
lowed
g. Obl i
gati
onr emittedmusthavebeendemandabl eatt het i
meof
r
emissi
on
h. Wai versorr emi ssionar enottobepr esumedgener all
y
F
CONFUSI ONORMERGER

Wherethechar
act
erofdebt
orandcr
edi
tori
smer
gednsameper
sonwi
th
r
espectt
osameobli
gat
ion

REQUI
SITES:
a. Itmustt akeplacebet weenpr
inci
pal
debt
orandpri
ncipal
credi
toronl
y
b. Mer germustbecl earanddef
init
e
c. Theobl i
gati
oni nvol
vedmustbesameandi dent
ical–oneobl i
gat
ion
onl
y
d. Revocabl
e,i
freasonf
orconf
usi
onceases,t
heobl
i
gat
ioni
srevi
ved

7.COMPENSATI
ON

COMPENSATI ON–Setoff
;iti
samodeofexti
ngui
shmentt
ot heconcur
rent
amountthe obl
i
gati
on ofper
sonswho ar
einthei
rown ri
ghtreci
procal
ly
debt
orsorcr
edit
ors

REQUI
SITES:
a. Bot hpart
iesmustbemut ual
l
ycredi
tor
sanddebtors-inthei
rownri
ght
andasprinci
pal
s
b. Bot hdebtsmustconsistinsum ofmoneyori fconsumable,ofthe
samekindorqualit
y
c. Bot hdebtsaredue
d. Bot hdebtsarel
iqui
dat
edanddemandable(det
ermined)

Ci
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e. Nei
therdebtmustbe ret
ained i
n a cont
roversy commenced by
3r
d per
sonandcommuni
cat
edw/debtor(nei
therdebtisgar
nished)

KI
NDSOFCOMPENSATI
ON

a. Legal–  byoper at
ionofl
aw;aslongas5r equi
si
tesconcur-eveni
f
unknownt oparti
esandifpayabl
eindiffplaces;i
ndemnityforexpenseof
exchanges;eveni
fnotequal
debts–onl
yuptoconcur r
ingamount

b. Convent i
onal–  agreement of par
ti
es i
s enough, f
orget ot
her
requi
rementaslongasbot
hconsent
ed

c. Facul tat
ive– 
onepar tyhaschoi
ceofclaimi
ng/opposi
ngonewhohas
benef
itofperi
odmaychooset ocompensat
e:
i. Notallr
equisi
tesarepr
esent
ii
. Deposit
um;commodat um;criminalof
fense;cl
aim f
orf
utur
e
support
;taxes

d. Judi cial
–  setof
f;uponorderofthecourt
;needspl
eadi
ngandpr
oof
;
al
lrequi
rements mustconcurexceptl
iqui
dati
on

e. Tot
al–  when2debt
sar
eofthesameamount
f. Par
ti
al–  when2debt
sar
enotofthesameamount

NOVATION-ext
inguishmentofobl i
gat i
onbycr eating/substi
tut
inganew onei
nit
s
pl
ace
• Changingobj ectorpr i
ncipal condit
ions
• Substi
tuti
ngper sonofdebt or
• Subrogating3r d personi nrightofcr edit
or
EFFECTSOFNOVATI ON:
a. Extinguishmentofpr incipalcar r
iesaccessory,except:
i
. St i
pulati
ont ocont rary
i
i. St i
pulati
on  pouraut r
ui unlessbenef i
ciar
yconsents
i
ii
. Modi ficatorynovat i
ononl y;obl i
gedtow/ cisl
essoner
ous
i
v. Ol dobl i
gationisvoi d

b. Ol
dobl
i
gat
ionsubs
ist
sif
 newobl
i
gat
ion 
isvoi
dorvoi
dabl
e butannul
l
ed
al
ready
(
except
:int
ent
ionofpar
ti
es)

c. I
fol
dobl
i
gat
ionhascondi
ti
on

i
. I
f Resolutor
y and i
t occur
red – ol d obli
gat
ion al
ready
ext
ingui
shed;nonewobl
i
gati
onsincenot
hingt
onovate

Ci
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i
i
. I
fSuspensive 
andi
tneveroccur
red–asi
fnoobl
i
gat
ion;al
so
not
hingt
onovat
e

d. I
fold obl
igati
on has condi
ti
on,mustbe compati
ble wi
tht
he new
obl
i
gat
ion;ifnewisw/ocondit
ion–deemedatt
achedtonew

e. I
fnewobl i
gat
ionhascondit
ion
i
. I
fresol
utor
y:vali
d
i
i. I
fsuspensive 
and di
d notmat
eri
ali
ze:ol
d obl
i
gat
ion i
s
enf
orced

KI
NDSOFNOVATI
ON:

a. REAL/OBJECTI
VE– change object, cause/
consi
der
ati
on or
pr
inci
pal condi
ti
on
b. PERSONAL/SUBJECTIVE
i
. Subst
it
uti
ngper
sonofdebtor(
passi
ve)

• EXPROMI SION; 
ini
ti
ati
vei sfrom 3rdper
sonornew debt or;new debtor
andcredit
ortoconsent ;olddebtorrel
easedf r
om obli
gat i
on;subjectto
ful
lrei
mbursementandsubr ogati
onifmadew/consentofol ddebtor;i
f
w/o consentoragai nstwi l
l,onlybenef i
cialrei
mbur sement;ifnew
debtori
sinsol
vent,notresponsibl
esincew/ohi sconsent

• DELEGACI ON; i
niti
ati
ve of old debtor;al
lparti
es to consent;ful
l
rei
mbur sement ;ifinsol
ventnew debt or– notr
esponsi
ble 
olddebtor
becauseobl i
gationexti
nguishedbyval i
dnovati
onunless:insol
vency
alr
eadyexi sti
ngandofpubl i
cknowl edgeorknow tohim att i
meof
delegacion
1.
Delegant e– ol
ddebt or
2.Delegatari
o–cr edi
tor
3.Delegado–newdebt or

i
i
. Subr
ogati
ng3r d persontoright
sofcredi
tor
 (acti
ve)
1. Convent ional- agr eementand consentofal lpart
ies;
cl
earl
yest abli
shed
2. Legal- Takes pl ace by oper
ati
on of l aw;no need for
consent;notpr esumedexceptasprovidedfori
nlaw:

PRESUMEDWHEN:
a. Credit
orpays anotherpr ef
erred credi
toreven w/o debtor’
knowl
edge
b. 3rdpersonnoti
nter
estedinobl
igat
ionpaysw/approvalofdebtor
c. Personinter
est
edinfulf
il
l
mentofobligati
onpaysdebtevenw/o

Ci
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knowl
edgeofdebt
orom

DIFFERENT FROM PAYMENT OF 3RD CHANGEOFDEBTOR


PERSON
1.debtorisnotnecessarilyr
eleasedfrom 1 .debt orisr el
eased
debt
2.canbedonew/ oconsentofcr edi
tor 2.needsconsentofcr edit
or–expr essor
i
mpl i
ed
3.oneobl igat
ion 3.t wo obl igati
ons;one i sext i
nguished
andnewonecr eated
4.3rd personhasnoobl igat
iontopayi f 4.newdebt orisobli
gedt opay
Insol
vent
pe
CONVENTI ONALSUBROGATI ON ASSI GNMENTOFRI GHTS
governedbyAr t
s.1300-1304 gover nedbyAr ts.1624t o1 627
debtor’ debt or’
exti
nguishestheobl i
gat
ionandgi vesrise transmi ssi
on ofr i
ghtoft he credi
torto
toanewone thir
d per son wi thout modi fyi
ng or
extinguishingtheobl i
gat i
on
defectsandvicesintheol dobli
gati
onar e def ectsand vi cesi nt he old obli
gati
on
cured andnotcur ed
takeseffectuponmomentofnovat i
onor asf arast hedebt orisconcer ned,takes
subrogati
on effectuponnot if
icati
on

PRI
NCI
PALCHARACTERI
STI
CSOFCONTRACTS:

1
. Autonomyofwi l
l
s –  par ti
esmayst i
pulateanythingasl ongasnoti l
legal
,
i
mmor al,etc.
2. Mut ual
ity– per for
manceorval i
dit
ybi ndsbot hparti
es ;notleftt
owi l
lofone
ofpar t
ies
3. ObligatoryForce–  part
iesareboundf rom perfect
ionofcont ract:
4. Fulf
ill
whathasbeen  expressl
ysti
pulat
ed
5. All
consequencesw/ cmaybei nkeepingwi thgoodf ait
h,usageandl aw
6. Relati
vity 
– bindingonlybet weent hepar t
ies,theirassigns,heirs;st
rangers
cannotdemandenf orcement

EXCEPTIONTORELATI VI
TY:
1.Accionpauliana
2.Acciondirecta
3.St
ipulat
ionpourautr
ui

REQUI
SITESOFSTI
PULATI
ON 
POURAUTRUI

Ci
vi
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1. Parti
esmusthavecl ear
lyanddel i
berat
elyconferredafavorupona3rdperson
2. Thest i
pulati
oni nfavorofa3r d 
personshoul dbeapar tof,notthewhole
cont
ract
3. Thatt hef avorablesti
pulat
ionshouldnotbecondi ti
onedorcompensat edby
anykindofobl igat
ionwhatsoever
4. Nei ther of the cont ract
ing parti
es bearst he legalrepresent
ati
on or
authori
zatonof3rdpar
i t
y
5. The t hi
rd person communi cat
eshisaccept ance beforerevocati
on bythe
ori
ginalparti
es
6. Ar t1312;Art131 4

KI
NDSOFCONTRACTS

1
. Ast
oper
fect
ionorf
ormat
ion

a. Consensual – per
fect
edbyagr eementofpar
ti
es
b. Real– 
per f
ectedbydelivery(commodatum,pledge,deposi
t)
c. Formal/sol
emn–  perf
ect edbyconf
ormit
ytoessenti
alfor
malit
ies
(donat
ion)

2. Ast
ocause
a. Oner ous– 
withvaluabl
econsiderat
ion
b. Gr at
uit
ous– f
oundedonl iber
ali
ty
c. Remuner at
ive – prest
ati
on is given f
or ser
vice pr
evi
ousl
y
r
enderednotasobl i
gat
ion

3. Astoimportanceordependenceofoneuponanot her
a. Pr i
ncipal – contractmaystandalone
b. Accessor y–  dependsonanot hercontractf
oritsexi
stence;may
notexistoni tsown
c. Pr eparator y– notanendbyi t
self;ameanst hroughwhichfutur
e
contractsmaybemade
4. Astoparti
esobl i
ged
a. Uni l
ateral – onl
yoneoft heparti
eshasanobl igati
on
b. Bi l
ateral
 – bot h part
ies are requi
red t o render reci
procal
pr
estat
ions

5. Ast
onameordesi
gnati
on
a. Nomi nat
e
b. Innominate
I
. Doutdes–Igivethatyoumaygive
I
I. Doutfaci
as–Igivethatyoumaydo
I
II
. Faci outdes–Idot hatyoumaygive
I
V. Faci outfaci
as–Idot hatyoumaydo

Ci
vi
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ESSENTI ALELEM ENTS OFCONTRACTS:
1. Consent
2. Subj
ectMatter
3. Consider
ati
on

WHENOFFERBECOMESI
NEFFECTI
VE:

1
. Death, civi
lint
erdict
ion, i
nsanit
y or insol
vency of ei
ther par
ty bef
ore
acceptanceisconveyed
2. Expressorimpli
edrevocati
onoft heof
ferbytheoffer
ee
3. Qualif
iedorcondit
ionalacceptanceoftheof f
er,whichbecomesacounter-
off
er
4. Subject mat
ter becomes i
l
legal or i
mpossi
ble bef
ore accept
ance i
s
communi
cat
ed

RULEONCONTRACTSENTEREDI
NTOBYMI
NORS

• GENERALRULE:  VOI DABLE


• EXCEPTIONS:
a. Uponr eachingageofmaj or
it
y–t heyr at
ifyt
hesame
b. Theywer eent ereduntobyaguar dianandt hecourthavi
ngjur
isdict
ion
hadappr ovedt hesame
c. Theywer econt ract
sfornecessit
iessuchasf ood,butheret
heper sons
whoar eboundt ogivet
hem suppor tshouldpayt her
efor
d. Mi norisest oppedf orhavingmi srepresent
edhi sageandmi sledt he
otherparty(whenagei sclosetoageofmaj ori
tyasintheMer cadov
Espir
it
uandSi aSuanvAl cantar
acases. )

DI
SQUALI
FIEDTOENTERI
NTOCONTRACTS:
(cont
ract
sent
eredi
ntoar
evoi
d)

1. Thoseunderci vi
lint
erdict
ion
2. Hospitali
zedlepers
3. Prodi
gal s
4. Deafanddumbwhoar eunabl etoreadandwr it
e
5. Thosewhobyr easonofage,di sease,weakmi ndandot hersi
mil
arcauses,
cannotwi t
houtout si
de aid,t ake care ofthemsel ves and manage their
property,becominganeasypr eyfordeceitandexploitati
on
I
ncapaci t
y
I
NCAPACI TY DISQUALIFICATI ON
Restrai
ns the exer ci
se oft he rightt o Restr
ainstheveryr ighti
tsel
f
contr
act
May st il
lent er into contr
act through Absol ut
elydisqualif
ied
parent,guardianorlegalrepresent
ative

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Baseduponsubjecti
veci
rcumstanceof Baseduponpubli
cpoli
cyandmor
ali
ty
cert
ainpers
on
Contract
s entered int
o ar e mer el
y Cont
ract
sent
eredi
ntoarevoi
d
voi
dable

SI
MULATEDCONTRACTS

1. Absol
ute 
–noi ntent
iontobeboundatall
,fi
cti
ti
ousonl
y–voidfr
om begi
nni
ng
2. Rel ati
ve –thereisintenti
ontobeboundbutconcealed;conceal
edcontr
act
bi
nds:
a. Nopr ejudiceto3rdper
sons
b. Notcont raryt
ol aw,moral
s,et
c.

OBJECT
REQUI
SITES:

1. Withi
nthecommer ceofman-ei t
herexi
sti
ngori
npotency
2. Li
citornotcontrar
yt ol
aw,goodcustoms
3. Possibl
e
4. Determinat
east oitski
ndordeter
minabl
ew/ oneedt
oenteri
ntoanew
contr
act
5. Tr
ansmi ssi
ble

AbsenceofCausa Void–pr oducenol egal effect


I
ll
egali
tyofCausa Void–pr oducenol egal effect
Fal
sit
yofCausa Voidabl e–par t
ymustpr ovet hatcauseis
untruthful
;pr esumpt i
on ofval i
dit
y but
rebuttable
Causanotst
atedi
ncont
ract Presumedt oExist-bur denofpr oofis
ont heper sonassail
ingitsexi st
ence
I
nadequacyofCausa DoesnotI nvali
dateCont ractperse
Exceptions:
•f
raud
•mistake

unduei nfl
uence
•cases speci fi
ed by l aw- cont ract
s
entered when war d suf f
er slesion of
mor et han25

ause
CAUSE MOTIVE
Di
rectandmostpr
oxi
mat
ereasonofa I
ndi
rectorr
emot
ereasons

Ci
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contr
act
Object
iveandj
uri
dical
reasonofcont
ract Psychol
ogical
orpurel
ypersonal
reason
Cause us always same f or each Themot i
vediffer
sforeachcont r
acti
ng
contr
acti
ngpar
ty part
y

• NOTE: Legali
tyorill
egal
it
yofcauseaff
ectstheexist
enceofval i
dit
yofthe
cont
ract;Legali
tyori
ll
egal
it
yofmoti
vedoesnotaf
fecttheexi
stenceorval
i
dit
y
ofcontract

CAUSAI
NSOMECONTRACTS:

1. Onerouscontr
acts –thepr estat
ionofpromiseofat hingorser vi
cebythe
ot
her
2. Remuner at
orycontracts
 –theser vi
ceorbenefi
tremunerated
3. PureBeneficence –mer el
iberali
tyoft
hedonororbenefactor
4. Accessory 
–i denti
calwi t
h cause ofpr i
nci
palcontract,the l
oan whi
ch i
t
der
ivedi
tsl
ifeandexi st
ence( ex:mort
gageorpledge)

FORMSOFCONTRACT5–  i
n some ki
nd ofcont
ract
sonl
yascont ract
sare
gener
all
yconsensual
;for
misamannerinwhichacont
racti
sexecut
ed
ormanif
est
ed

WHENFORM I
SIMPORTANT:
1. Forval
i
dit
y(for
mal/sol
emncontract
s)
2. Forenforceabi
li
ty(
stat
uteoff
rauds)
3. Forconvenience

• GENERAL RULE:contractis val


i
d and bi
ndi
ng i
n what
everf
orm
pr
ovi
dedt
hat3essent
ial
requi
sit
esconcur

• EXCEPTI ONS
a. Law requirescont ractt obeins omef ormf orvalidi
ty-donat i
onand
acceptanceofr ealproperty
b. Lawr equir
escont r
actt obeinsomef ormtobeenf orceable-Statuteof
Frauds;contractisval idbutri
ghttoenf or
cecannotbeexer ci
sed;need
rat
if
icati
ont obeenf orceabl
e
c. Lawr equir
escont racttobeinsomef ormf orconveni ence-cont r
actis
vali
dandenf orceable,neededonlyt obind3rd parties
Ex:publi
cdocument sneededf orthef f
:
i
. Cont r
acts w/ c obj ect is cr eati
on, t ransmi
ssion or
reformationofrealri
ghtsoverimmovabl es
i
i. Cession, r epudi
ati
on, r enunciat
ion of her edit
ary
ri
ghts/CPG

Ci
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i
i
i. Powertoadministerpropertyforanother
i
v. Cessi
on ofact ion ofr ights proceeding f
rom an act
appeari
nginapubl i
cinst.
v. Allot
herdocswher eamounti nvolvedisinexcessof500
(mustbewr i
tt
enevenpr i
vatedocs)

REFORMATIONOFCONTRACTS–  r emedytoconf ormtor eal


int
enti
onofparti
es
due to mist
ake,fraud,inequi
tabl
e conduct,
accident
CAUSES/
GROUNDS:
1. Mutual
:instrumentincludessomet hingw/ cshouldnotbethereoromi t
whatshouldbet here
a. Mut ual
b. Mi stakeoff act
c. cl earandconvi ncingproof
d. causesf ai
lureofinstrumenttoexpresstrueint
enti
on

2. Unil
ater
al
a. onepar t
ywasmi staken
b. ot her ei
ther acted fr
audul
ent
ly or i
nequi
tabl
y or knew but
conceal
ed
c. par tyi
ngoodf ait
hmayaskf orr
eformat
ion

3. Mist
ake by3r
dper sons–duetoi
gnor
ance,l
ackofski
l
l,negl
i
gence,
badf
ait
hofdraft
er,cler
k,t
ypi
st

4. Ot
her
sspeci
fi
edbyl
aw 
–toavoi
dfr
ust
rat
ionoft
ruei
ntent

• Requi
si
tes:
a. Ther eisawrit
teninst
rument
b. Ther eismeeti
ngofmi nds
c. Tr ueint
ent
ionnotexpressedi
ninst
rument
d. Cl earandconvinci
ngproof
e. Fact sputi
nissueinpleadi
ngs

• NOTE:pr
escr
ibesi
n10year
sfr
om dat
eofexecut
ionofi
nst
rument

WHENREFORMATI ONNOTAVAI LABLE:


1. Si
mpledonati
oni
ntervi
vos
2. Wi l
ls
3. Whenr ealagr
eementisvoi
d
4. Estoppelwhenpar
tyhasbroughtsui
ttoenf
orcei
t

Ci
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KI
NDSOFDEFECTI
VECONTRACTS:

1
. RESCISSI
BLE CONTRACTS  – Those which have caused a part
icul
ar
economicdamageei t
hertooneofthepart
iesort
oa3rd per
sonandwhi ch
maybesetasi deevenifval
i
d.Itmaybesetasi
deinwholeorinpar
t,t
ot he
ext
entofthedamagecaused'

REQUI
SITES:
a. Contractmustberesci
ssi
ble
i
.  Under ar t1381:Cont r
acts ent
ered i
nto by per
sons
exer
cisi
ngfi
duci
arycapacit
y

1
. Entered into byguar dian wheneverwar ds uffer
s
damagebymor et han1 /4ofvalueofobj ect
2. Agreed upon i nr epr esentati
on ofabsent ees,i f
absenteesuf fer
sl esionbymor et
han¼ ofval ueof
property
3. Contracts wher er escission is based on f raud
commi ttedoncr editor(accionpauli
ana)
4. Objects of l i
ti
gation; cont ract enter
ed i nt
o by
defendantw/ oknowl edgeorappr ovalofli
ti
gantsor
j
udicialauthori
ty
5. Paymentbyani nsolvent–ondebt sw/car enotyet
due;prejudicesclaim ofot hers
6. Provi
dedf orbyl aw -ar t1526,1 534,1538,1539,
1542,1556,1 560,1 567and1 659

i
i
.  Underart1
382 -Payment smadei nastateofinsol
vency
1. Pl
ainti
ffhasnoothermeanst oobtainrepar
ati
on.
2. Pl ainti
ffmustbeablet oret
urnwhat everhemaybe
obli
gedt oret
urnduetoresci
ssion
3. The t hings must not have been passed t o
3rd 
par t
ieswhodidnotactinbadf ai
th
4. I tmustbemadewi thi
nthepr escri
bedperiod(of4
year
s)

OBLI
GATI ON CREATED BY THE RESCI SSI
ON OF THE CONTRACT: Mut
ual
Rest
it
uti
on
a. Thi ngsw/caretheobj
ect
soft
hecont
ractandt
hei
rfr
uit
s
b. Pr i
cewithint
erest

MUTUALRESTI
TUTIONNOTAPPLICABLEWHEN
a. cr edi
tordi
dnotr
ecei
veanyt
hingf
rom cont
ract

Ci
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es Page74
b. thi
ngalreadyi
npossessi
onofpart
yingoodfai
th;subjectt
oindemni
ty
only;i
fther
ear
e2ormor eal
i
enat
ions–li
abi
l
it
yof1 st
inf
ractor

BADGESOFFRAUD
a. consi der at
ionoft heconveyancei si nadequat eorf i
ct i
ti
ous
b. t ransferwasmadebyadebt orafterasui thasbeenbegunandwhi l
eit
i
spendi ngagai nsthi m
c. sal euponcr editbyani nsolventdebt or
d. evi denceofi ndebt ednessorcompl etei nsolvency
e. t ransfer of al lhi s pr oper t
y by a debt or when he i sf i
nanci all
y
embar rass edori ns olvent
f. transfermadebet weenf atherandsonwher etherei spr esentanyof
theaboveci rcumst ances
g. f ailureoft hevendeet otakeexcl usivepossessi onoft hepr oper t
y
RescissioninAr t
1191RESCI SSI ONI NART.1 191 RESCI SSI ONPROPERI NART.1 381
I
ti s a pr i
nci palact i
on r etali
at oryi n itisasubsi di
ar yremedy
character
Onlygr oundi snon- performanceofone’ Ther e ar e 5 gr oundst or escind.Non-
obli
gationorwhati sincumbentuponhi m per for mance by t he ot her i s not
i
mpor tant
Appli
esonl yt or eciprocal obli
gat ion Appl i
est obot hunil
at eralandr eciprocal
obligat i
ons
Onlyapar tyt ot hecont ractmaydemand Evenat hirdper sonwhoi spr ej
udicedby
ful
fi
l
lmentorseekt her escissionoft he t he
contract cont r
actmaydemandt her escissionof
thecont ract.
Courtmayf ixaper iodorgr antext ensi
on Cour tcannotgr antext ensionoft i
mef or
ofti
mef orthef ulfi
l
lmentoft heobl igati
on f ulf
il
lmentoft heobligation
I
tspur posei st ocancel thecont ract I
tspur posei stoseekr epar at i
onf ort he
damageori njurycaused,t hus
all
owi ngpar ti
al r
escissionoft hecont ract
ResciProperi n
2. VOI DABLECONTRACTS–  i
ntri
nsicdef ect;val i
dunt i
lannulled;def ectisduet o
viceofconsentorl egal incapaci ty

• CHARACTERI STI
CS:
a. Ef f
ectiveunti
lsetaside
b. Maybeassai ledorat t
ackedonlyinanacti
onf
orthatpur
pose
c. Canbeconf i
rmed( NOTE:conf i
rmat
ioni
sthepropert
ermforcuri
ngt
he
defectofavoidabl
econt ract)
d. Canbeas sai
ledonlybyt hepart
ywhoseconsentwasdefecti
veorhi
s
hei
rsoras si
gns

Ci
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WHATCONTRACTSAREVOI DABLE:
a. Mi nors(below1 8)
b. I nsaneunlessact edinluci
dinter
val
c. Deafmut ewhocan’
d. Per sonsspeciall
ydisquali
fi
ed:ci
vi
li
nter
dict
ion
e. I nst at
eofdr unkenness
f. I
nst at
eofhypnot i
cspell
KINDSOFFRAUDI NTHEPERFORMANCEOFOBLI GATI
ONORCONTRACTS

a. CausalFraud 
(dolocausant
e)–decept
ionofseri
ouscharact
erwit
hout
which the ot
herpar ty woul
d nothave enter
ed int
o;contractis
VOIDABLE( Ar
t.1338)

b.
  I
ncident
alFraud 
(dol
oincident
e)–decepti
onwhi charenotser
iousand
wit
houtwhichtheotherpartywoul
dsti
llhaveenteredi
ntothecontr
act
;
hol
dstheguilt
ypart
yli
ableforDAMAGES( Ar
t.1
344)

c. Toler
ated Fraud 
– includes minimi
zi
ng the defect
s of the t
hing,
exaggerat
ionofit
sgodqual it
iesandgivi
ngi
tquali
ti
esitdoesnothave;
LAWFULmi sr
epresent
ation

• NOTE:
• Expressi
onofanopinion –notf r
audunlessmadebyexper tandot her
partyrel
i
edontheformer’
• Fraud by t
hir
d person – does notviti
ate consent;onl
y action for
damagesexceptifthereiscollusi
onbetweenonepar tyandt het hi
rd
person,orr
esul
tedtosubstant
ialmist
ake,mutualbetweenparti
es .

CAUSESOFEXTI
NCTI
ONOFACTI
ONTOANNUL

a. PRESCRIPTI
ON- Peri
odtobr i
nganact i
onforAnnulment
i
. I
nti
mi dati
on,vi
olence,undueinfl
uence-4year s 
from t
ime
defectofconsentceases
i
i
. Mistake,fr
aud–4year sf
rom ti
meofdi scover
y
i
i
i. Incapacity-From ti
meguar di
anshipceases

b. RATI
FICATI
ON
• REQUISI
TES
i
. knowl edgeofr easonrender
ingcontr
actvoi
dable
i
i. such r eason must have ceased, except i ncase of
rat
if
icationeffectedbyt heguardi
antocontract
sentered
i
ntobyan  i
ncapacitat
ed,
i
ii
. t he injured party musthave executed an actwhi ch

Ci
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ewNot
es Page76
expr
essl
yori
mpl
i
edl
yconveysani
ntent
iont
owai
vehi
s
ri
ght

c. LOSSOFTHETHING whi
chist
heobjectoft
hecont
ractthr
oughf
raud
orf
aul
toft
heper
sonwhoisent
it
ledt
oannult
hecont
ract

• NOTE:  Obj
ecti
slostt
hroughafort
uit
ousevent,thecontr
actcanstil
lbe
annulled,butt
hepersonobli
gedtor et
urnthesamecanbehel dliabl
e
onlyfortheval
ueofthethi
ngattheti
meofthel oss,butwi
thouti
nterest
thereon.

• Rati
fi
cati
oncleansest
hecont
ractofi
tsdef
ect
sfr
om t
hemomenti
twas
consti
tut
ed.

3. UNENFORCEABLE CONTRACT– val


id butcannotcompelit
s execut
ion
unl
essr
ati
fi
edext
ri
nsi
cdef
ect
;pr
oducelegal
eff
ect
sonl
yaft
err
ati
fi
ed

KI
NDS:

a. Unauthori
zedorNosuf fi
cientauthor
it
y –enter
edi nt
ointhenameof
anot
herwhen:
i. Noaut hor
it
yconferred
ii
. Inexcessofauthori
tyconfer
red(ul
travir
es)

b.
  Curabl
ebyRat i
fi
cat
ion-
 Bot
hpar
ti
esi
ncapabl
eofgi
vi
ngconsent-
2
minoror2i
nsaneper
sons

c. Curabl
ebyAcknowledgment-  Fai
l
ur etocompl ywithStatut
eofFr auds
i. Agreementt obeper formedwi t
hinayearaf t
ermaki ng
contr
act
ii
. Specialpr
omi setoanswerf ordebt ,defaul
tormi scarri
age
ofanother
ii
i. Agreementmadei nconsider ati
onofpr omi set
omar r
y
iv. Agreementforsaleofgoods ,chatt
elsorthingsinactionat
pri
cenotlesst han500;except i
on:auctionwhenr ecorded
sal
einsalesbook
v. Agr eementf orleaseofpr opertyformor ethanoneyear
andsaleofreal pr
opertyregar dlessofpr i
ce
vi. Representat
ionast ocreditofanot her

TWOWAYSOFCURI
NGUNENFORCEABLECONTRACTS:

a. Fai
l
ure ofdefendantt
o obj
ectintime,tothe present
ati
on of
par
oleevi
denceincour
t,t
hedefectofunenf
orceabi
li
tyi
scured

Ci
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b.
  Acceptance of benefi
ts under the contr
act.I ft here is
perf
ormance i n ei
ther par
t and there i
s accept ance of
perf
ormance,i tt
akesitoutofunenf or
ceable contr
acts;also
est
oppel set
sinbyaccept
ingperf
ormance,t
hedef ecti
swai ved

4. VOI
DORI
NEXI
STENT– 
ofnol
egal
eff
ect

CHARACTERI STI
CS:
a. I tproducesnoef fectwhat soevereitheragai
nstorinfavorofanyone
b. Ther eisno act i
onf orannul mentnecessaryassuchi sipso jur
e.A
judici
aldeclarati
ont othatef fecti
smer el
yadeclar
ati
on
c. I tcannotbeconf irmed,r atif
iedorcur ed
d. I fperformed,r estorationisinor der,excepti
fparidel
i
ctowillappl
y
e. Ther i
ghttosetupt hedef enseofnul lit
ycannotbewaived
f. I
mpr escri
ptibl
e
g. Anyonemayi nvoket henul li
tyoft hecontr
actwheneveri t
sjuri
dical
effectsareasser tedagai nsthi m

KI
NDSOFVOI
DCONTRACT:

a. Thoselackinginessenti
alelement
s:noconsent
,noobject
,nocause
(i
nexi
stentones
)– essent i
alfor
mali
ti
esare notcompli
ed wi
th (ex:
donat
ionpr opt
ernupti
as–shoul dconf
ormtoformal
i
ti
esofadonati
on
tobe 
valid)

i
. Thosew/car eabsolut
elysimulatedorf
ict
it
ious–nocause
i
i
. Thosewhichcauseorobj ectdidnotexi
stattheti
meof
thetr
ansact
ion–nocause/ object
ii
i. Thosewhoseobj ectisoutsidethecommer ceofman–no
obj
ect
iv. Thosew/ccont empl
ateanimpossibl
eservi
ce–noobj
ect
v. Thosew/cintenti
onofpart
iesrel
ati
vetopri
nci
pal
obj
ectof
thecont
ractcannotbeascert
ained

b. Pr
ohi
bit
edbyl
aw

c. Thoseexpr
essl
yprohi
bit
ed ordecl
ared voi
d byl
aw -Contr
act
sw/
c
vi
olat
eanyl
egalpr
ovi
si
on,whetheri
tamountstoacr
imeornot

d. I
ll
egal/
Il
li
citones –Thosewhosecause,obj
ectorpur
poseiscont
rar
yto
l
aw,mor als,goodcustoms,publ
i
corderorpubl
icpol
icy;
Ex:Contr
actt osel
lmarij
uana

KI
NDSOFI
LLEGALCONTRACTS

Ci
vi
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PARIDELI
CTODOCTRI
NE

• Bothpart
iesareguil
ty,noact
ionagai
nsteachother
;thosewhocomei n
equi
tymustcomewi thcl
eanhands;appl
iesonl
ytoil
l
egal cont
ract
sandnotto
i
nexi
stentcont
racts;doesnotappl
ywhenasuper i
orpubli
cpoli
cyinter
venes

• EXCEPTI
ON TO PARIDELI
CTO RULE –I fpur
posehasnotyetbeen
accompli
shedandI
fdamagehasnotbeencausedtoany3rdper
son

OTHEREXCEPTI
ONS:

a. PaymentofUsur
iousi
nter
est
b. paymentofmoneyordel
iver
yofpropertyforanill
egalpurpose,wher
ethepar
tywho
pai
dordeli
ver
edrepudi
atest
hecontractbefor
et hepurposehasbeenaccompli
shed,
orbef
oreanydamagehasbeencausedt oa3r dperson
c. paymentofmoneyordel
i
ver
yofpr
oper
tymadebyani
ncapaci
tat
ed
per
son
d. agreementorcont ractwhi chisnotil
legal perseandthepr ohibit
ionisassi
gnedf
orthe
protecti
onofthepl ai
nt i
ff
e. paymentofanyamounti nexcessoft hemaxi mum priceofanyar ti
cl
eorcommodi t
y
fi
xedbyl aworr egulati
onbycompet entaut hori
ty
f
. contractwherebyal aborerundert
akest owor klongerthant hemaxi mum numberof
hoursfixedbylaw
g. onewhol osti
ngambl ingbecauseoff raudulentschemespr acticedonhimisal
l
owed
torecoverhislosses( Art
.313RPC) eveni fgambl i
ngisprohibited.

REQUI
SITESOFI
LLEGALCONTRACTS:

a. Cont
racti
sforani
l
legal
pur
pose
b. Cont
ractmustber epudiatedbyanyoft hepart
iesbef
orepur poseisaccompli
shedor
damageiscausedt o3rdparti
es
c. Courtbel
ievesthatpubli
ci nt
erestwil
lbeservedbyal l
owingr ecover
y(di
scret
ionary
uponthecourt)–basedonr emorse;i
ll
egal
i
tyisaccompl i
shedwhenpar t
iesenter
ed
i
ntocontr
act;befor
eittakeseffect
–par t
yw/cisremorsefulprevent
sit

EFFECTSOFI
LLEGALCONTRACTS

a. I
fonepar
tyisi
ncapacit
ated,courtsmayall
ow r
ecoveryofmoney,pr
oper
tydel
i
ver
ed
byi
ncapaci
tat
edpersoni
nthei
nterestofjust
ice;par
idel
i
ctocannotappl
ybecause

1
. est
oppelin pai
s( byconduct )incapaci
tat
ed person doesnot
know whathe i s ent
eri
ng into;unablet o understand t
he
consequencesofhisownact i
on
c. est oppelbysi
lence
d. est oppelbyacceptanceofbenefi
ts

Ci
vi
lLawBarRevi
ewNot
es Page79
2.Techni
cal
est
oppel

a. Estoppel byrecord
b. I
fagr eementi snotil
legal
persebutmer el
yprohi
bit
edand
prohibit
ionisdesignatedf
ort
heprotect
ionoftheplai
nti
ff–
mayr ecoverwhathehaspai dordeliveredbyvirt
ueof
publi
cpol icy
c. Estoppel byjudgment
d. Estoppel bylaches

LACHESORSTALEDEMANDSMUTUALRESTI
TUTI
ONI
NVOI
DCONTRACTS

•GENERALRULE:par
ti
esshoul
dretur
ntoeachot
herwhatt
heyhavegi
ven
byvi
rt
ueoft
hevoi
dcontr
acti
ncaseLACHES

•Failur
eornegl ect,f
oranunreasonabl
eandunexpl ai
nedlengthofti
met odo
thatwhi ch,byexer ci
si
ng duedi l
i
gence,could orshould havebeendone
earl
ier;i
ti snegli
genceoromi ssi
ontoassertar ightwi
thinreasonablet
ime
warranti
ng a pr esumpti
on thatthe par
ty ent
it
led to asserti
tei t
herhas
abandonedi tordecli
nedtoasserti
t

•ELEMENTS
•Wherenul
l
it
yarosefr
om defectinessent
ialel
ement
s
a. r et
urnobj
ectofcontractandfrui
ts
b. r et
urnpri
cepl
usi nt
erest

•EXCEPTI
ON:

Norecoverycanbehadi ncaseswher enul l


it
yofcont r
actarosef r
om
i
l
legal
i
tyofcontractwherepart
iesar
einpar i
deli
cto;except:
a. i ncapacit
ated– notobli
ged tor et
urn whathe gave butmay
recoverwhathehasgiven1.conductonpar tofthedefendant,or
ofone underwhom he cl aims,giving ri
se t
ot he sit
uati
on of
whichcompl ai
ntismadeandf orwhi chthecompl aintseeksa
remedy

b. ot
herpar
tyi
slessgui
l
tyornotgui
l
ty

2. del ay i
n assert
ing t
he complainant
’ ,the complai
nant
havi
ng knowledgeornot i
ce,oft hedefendant’
aff
ordedtheopport
unit
ytoinsti
tut
easuit
3. l ackofknowl edgeornoti
ceont hepartoft
hedefendantt
hatthe
complai
nantwouldassertt
her i
ghtonwhichhebaseshissui
t

Ci
vi
lLawBarRevi
ewNot
es Page80
NATURALOBLI
GATI
ONS

•theyarereal
obl
i
gat
ionst
owhi
cht
helawdeniesanact
ion,butwhi
cht
hedebt
or
mayerf
orm
voluntar
il
y.

i
njur
ytot
hedefendanti
ntheeventr
eli
efi
saccor
dedt
othecompl
ainant
,ort
hesui
t
i
nnothel
dtobebarred.

• Iti
spatr
imoni
al,andpr esupposesaprestat
ion.
• Thebindi
ngti
eoft heseobl i
gati
onsi
sintheconscienceofman,f
orundert
he
l
aw,theydonothavet henecessaryeff
icacytogiveri
set
oanacti
on.

LACHESPRESCRIPTI
ON -Concernedwit
heff
ectofdel
ayConcer
nedwit
hfactof
del
ayQuest
ionofi
nequi
tyofper
mit
ti
ngt
heclai
mtobeenfor
cedQuest
ionormatt
er
oft
ime

EXAMPLESOFNATURALOBLI
GATI
ONSENUMERATEDUNDERTHECI
VILCODE:

1.Perf
or manceaftert
heci vil
obl i
gat i
onhaspr escribed
2.rei
mbur sementofat hirdper sonf oradebtthathaspr escr
ibed
3.rest
itut
ionbyminoraf terannul mentofcont ract
4.Deli
verybymi norofmoneyorf ungi bl
ethinginfulfi
l
lmentofobli
gat
ion
5.Performanceafteractiontoenf orcecivi
lobli
gationhasfai
led
6.paymentbyhei rofdebtexceedi ngvalueofpr opert
yinheri
ted
7.paymentoflegacyaf terwillhavebeendecl are

KINDS:
1.est
oppeli
npais(byconduct)
a.est
oppelbysi
lence
b.est
oppelbyacceptanceofbenef
it
s

2.Techni
calest
oppel
a.I
faa.Estoppelbydeed
b.Est
oppelbyrecord
c.Est
oppelbyjudgment
d.Est
oppelbylaches

LACHES:Fai l
ureorneglect,foranunr easonableandunexplai
nedlengthofti
met o
dothatwhich,byexer
cisingduedi l
igence,couldorshoul
dhavebeendoneear l
ier
;it
i
snegl i
gence oromission to asserta ri
ghtwi thi
nreasonabl
et i
me warranti
ng a
presumpti
onthatthepartyentit
ledtoassertitei
therhasabandoneditordecl
inedto
asserti
t

Ci
vi
lLawBarRevi
ewNot
es Page81
vi
i
.Par
tner
shi
pandagency

A.PARTNERSHI
PDEFI
NITI
ON

Byt he cont
ractofpar t
nershiptwo ormor e per
sonsbi nd t
hemsel
vest o
contri
butemoney,property,ori
ndustr
yt oacommonf und,wi
ththei
ntent
ion
ofdividi
ngtheprofi
tsamongt hemselves. Twoormor epersonsmayal so
for
m apar t
nershi
pfortheexerciseofaprofessi
on(Art.1767)

B.ELEMENTS
Whatarethechar
act
eri
sti
corel
ement
soft
hecont
ractofpar
tner
shi
p?

Thecont
ractofpar
tner
shi
pis:

a.CONSENSUAL–becausei tisper f
ectedbymer econsentoft hepar tner s
,
alt
houghsuchconsentmustbemani fest edincer t
aincasesbyt hepr oper
formali
ties.
b.NOMI NATE–becausei thasapar ticularnameundert heCi vi
lCode
c.BI LATERAL/ MULTI LATERAL–becausei tgi vesr i
set or eciprocalobli
gations ;
becausei tisent er
edi ntobet weent woormor eper sons.
d. PRI NCIPAL:becausei tsexistencedoesnotdependont hel i
feofanot her
contract.
e.ONEROUS – because t her ei sa val uabl e consider ati
on;because cer tain
contri
but i
onshavet obemade.
f. PREPARATORY–becausei ti
sameansf orenter i
ngi ntofurthercontracts;in
thesenset hataf t
erithasbeenent eredi nt o,othercont ractsessent i
alint he
carryi
ngoutofi tspurpos escanbeent eredi nto.
g.Ther emustbeacont ributionofmoney,pr operty,ori ndustryt oacommon
fund.
h.Theobj ectmustbeal awful one.
i
.Ther emustbeani ntentionofdi vi
dingt hepr ofi
tamongt hepar tnerssi
ncet he
fi
rmi sforcommonbenef itorinter
estoft hepar tners.
j
.Ther emustbet heaffectiosoci etati
s-t hedesi retoformul ateanACTI VEuni on.
k.Anew per sonali
ty-thatoft hef irm-mustar i
se,di sti
nctf r
om t hesepar ate
personalit
yofeachoft hemember s.

Whatar
etheessenti
alf
eat
uresofpartner
shi
p?
a. Ther
emustbeaval i
dcontract
;
b. Ther
e mustbe mut ualcontri
but
ion ofmoney propert
y ori
ndust
rytoa
commonf und;
e. Thepar
ti
esmusthavecapaci t
ytoenteri
ntoacontr
act;
f. Theobj
ectmustbelawful
;
g. Thepur
poseoft heparti
esmustbet oobtai
nprof
it
swhichshal
lbedivi
ded

Ci
vi
lLawBarRevi
ewNot
es Page82
amongthemselves;
h. Thear
ti
clesofco-part
ner
shi
pmustnotbekeptsecr
etamongmember
s.

Whatar
ethel egalcharacteri
sti
csofpar t
nershi
ps?
a.Partnership derives i
ts exist
ence from the voluntary agreementoft he
member s;
b.Ithasaj uri
dicalpersonali
tyseparat
eanddi sti
nctfr
om thepar t
ners;
c.Thepar tnersarel i
abl
epr o-rat
aforthecontractual
li
abil
i
ti
esoft hepart
nership;
d.thereismut ualagencybet weenthepartners;
e.Thepar t
nersarel i
ableafterexhausti
onofpar t
nershi
passet stotheextentof
theirpersonalpropertyex ceptt
helimit
edpar t
ners.

C.RULESTODETERMI
NEEXI
STENCE

Whatarether
ulesf
ordet
ermi
ningt
heexi
stenceofapar
tner
shi
p?
Theyar
e:

1.Excepti nt he case ofa par t


ner ship byest oppel s,per sonswho ar e not
partner sast oeachot herar enotpar tnersast othirdper sons.
2.Co- owner shiporco- possessi ondoesnotofi tsel
fest ablishapar t
nership,
whet hersuchco- owner sorco- possessor sdoordonotshar eanypr ofi
ts
madebyt heuseoft hepr operty
3.The shar i
ng ofgr oss r eturns does notofi tselfestabl i
sh a part
nership,
whet herornott heper sonsshar i
ngt hem haveaj ointorcommonr ightor
i
nter estinanypr opertyf r
om whi cht her et
urnsar ederived;
4.Ther eceiptbyaper sonofashar eoft heprofit
sofabusi ness ispr
imaf acie
evidencet hathei sapar tneri nt hebusi ness,butnosuchi nf
erenceshallbe
drawni fsuchpr ofit
swer er eceivedi npayment :
a.Asadebtbyi nstal
lment sorot her wise;
b.Aswagesofanempl oyeeorr entt oal andlord;
c.Ananannui tytoawi doworr epr esent ati
veofadeceasedpar tner
d.Asi nterestonal oan,t hought heamountofpaymentvar ywiththeprofit
sof
thebusi ness
e.Ast heconsi derati
onf orthesal eofagoodwi l
lofabusi nessorot herproperty
byinst all
ment sorot herwi se.(Art.1759)

D.HOW PARTNERSHI
PISFORMED

Whataret
hef
ormal
i
ti
esneededi
napar
tner
shi
p?
Thef
oll
owi
ng:

a) Forval i
dit
yofthecontr
act(amongtheparti
es)aswellasenfor
ceabi
li
ty,no
for
mi srequir
edasagener al
rul
e,r
egardl
essofthevalueofthecont
ri
butions
.
Theref
ore,thecont
ractmayevenbeor al
.(Magalonav.Pesayco59Phil
1 53)

Ci
vi
lLawBarRevi
ewNot
es Page83
Excepti
on:Wheneverrealproper
ti
esorr
ealri
ghtsinrealpr
opert
iesar
e
contr
ibut
ed--r
egardl
essoftheval
ue–apubl
i
cinst
rumenti
sneeded.

b) Foreff
ectivi
tyofthepar
tner
shi
pcontracti
nsofaraninnocentthi
rdpersons
ar
econcerned,thesamemustber egi
ster
edifr
eal pr
opert
iesareinvol
ved.

I
nwhatform shallapart
ner
shipbeconstit
uted?
A partnershi
pmaybeconst it
utedi nanyform,hence,itmaybeoralorin
wri
ti
ng;butwher eimmovablepr opert
yorrealri
ght
sarecontri
but
edt
heret
o,
t
hepar t
nershi
pcont
ractmustbei napubli
cinst
rument(
Art.1
771)

Whatar
etheformali
ti
esneededforthecr
eat
ionofapart
ner
shi
p?
a) PersonalProper
tyLessthanP3,
000(tot
al)–maybeoral

b) P3, 000ormor e– mustbei napubl i


cinstrumentandr egi
steredinthe
Secur i
ti
esandExchangeCommi ssion.Buteveni ft
hisisnotcompl i
edwith,
partnershi
pissti
llval
i
dandpossessesadi st
inctpersonal
i
ty.Evidentl
y,t
he
requir
ement sar
emer el
yforadmi
nistr
ati
veandl i
censi
ngpurposes.

c) RealPr opert
y–r egardlessoftheval uecont r
ibuted,apubl ici
nstrumentis
needed,wi thanat t
achedi nventory;other
wi set hepar tnershipisVOI D and
hasnoj uri
dicalper
sonali
tyevenasbet weent hepar t
ies.(Art1773,CivilCode).
Mor eover,tobeef f
ecti
veagai nstthir
dparties,thepar tnershipmustal sobe
regi
s t
eredintheRegi st
ryofPr opertyofthepr ovincewher etherealpr opert
y
contri
butedisfound.Afterall
,thereisanalienationhereofar eal
rightonr eal
property.

d) Limi t
ed Part
ner
ship – mustbe r egi
stered assuch inthe Of
fi
ce ofthe
Securit
iesandExchangeCommi ssi
on;ot her
wise,iti
snotvali
dasal imit
ed
part
nership.However ,even wi t
houtsuch r egi
str
ati
on,itmay st i
l
lbe
considered a general par
tner
ship, and as such, possesses juri
dical
personali
ty.

E.PARTNERSHI
PTERM

Howmayt hedurat
ionofthepart
nershi
pbeagr
eedupon?
a.Express–Thishasadefini
teperi
od
b.I
mpl i
ed–Uponachi evementofit
spur
pose

Whendotherel
ati
onshipsofapartnerbegi
nwhi
cheachother?
The r
elat
ionshi
p begins f
rom the momentofthe execut
ion oft
he
cont
ract
.

Ci
vi
lLawBarRevi
ewNot
es Page84
Whendoesthepart
nershipend?
Itendsontheexpir
ationofaf ixedt
erm oraccompli
shmentofaparti
cular
undert
aki
ng.Exceptthatifi
tdoesendonthi
sbasis,i
tbecomesapar
tnership
atwil
l.

Whatar ethei
nst
anceswherei
tbecomesapar t
nershipatwil
l?
a.Thereisnoterm,expr
essori
mpli
ed.Hence,thereisanagr eementt
hati
twil
l
conti
nuetoexi
st.
b.Partnersorsomeofthem whohaveactedhabitual
lyconti
nuesthebusi
ness
wit
houtorli
qui
dati
onoft
hepart
nershi
paff
air
s.

F.UNI
VERSALVS.PARTI
CULAR;GENERALVS.LI
MITED

Cl
assi
fypar
tner
shi
ps?Ast
oobj
ect–

1
. Uni versalpart
ner shi
pwhi chareoftwokinds:
i.universalpartnershipofall
presentpr
operty
ii
.uni versal
partner s
hipofprofi
ts
2. Par ti
cularPart
ner ship
i.e.A par t
nershipf orthe practi
ce ofa pr of
essi
on i
s a par
ti
cul
ar
par
tnership

Ast
oli
abi
l
it
yoft
hepar
tner
s-

1
.Generalpar
tnership–wher eallt
hepar t
nersaregeneralpar
tnerswhoar
e
l
i
abl
ewithal
ltheirproper
tyaf
teral
lpar
tnershi
passet
sareexhausted

2.Li
mit
edpar t
ner
ship–wherether
eisatl
eastonegener
alpar
tnerandatleast
oneli
mit
edpartner,t
hel
i
mi t
edpart
nerbeingli
abl
eonlytot
heext entofhis
cont
ri
but
ion.

UNI
VERSALPARTNERSHI
P:

Def i
neauni ver
salpart
ner
shipofallpresentpropert
y:
Auni ver
salpartner
shipofallpresentpropertyisoneinwhi cht
hepart
ners
contri
buteallt
hepropert
ywhi chactuall
ybelongstothem toacommonfund,
withtheintent
ionofdivi
dingthesameamongt hemselves,aswel
lasal
lthe
profi
tswhichtheymayacqui r
etherewith(Art
.1778)

Whatisauniver
salpartner
shipofallpresentpr
operty?
Inpart
nershi
pofallpresentproperty,t
hecontri
buti
onofthepar
tner
sconsi
sts
of:
a) Al l
thepropert
iesactual
lybelongingtothesaidpart
ner
s;
b) Thepr ofi
tsacquir
edwi t
hsaidpr operti
es.

Ci
vi
lLawBarRevi
ewNot
es Page85
Defi
neauniversalpart
ner
shi
pofpr of
it
s:
Auniver
salpart
nershi
pofprofi
tscomprisesal
lthatt
hepar
tnersmayacquire
byt
heiri
ndustr
yorwor kdur
ingtheexist
enceofthepart
ner
ship(Ar
t.1780)

Dist
ingui
shuniversalpar
tnershi
pofal lpr
ofi
tsf
rom univer
salpar
tner
shipofal
l
presentpr
operty.
Thef ol
l
owingar ethedisti
ncti
onsbetweenuni ver
salpart
nershi
pofallpr
ofi
ts
anduniversal
partnershi
pofal l
presentproper
ty:

I
nuni
ver
sal
par
tner
shi
pofal
lpr
ofi
ts–

a) Onlytheusuf
ructoftheproper
ti
esofthepar t
nersbecomesthecommon
pr
opert
y(ownedbyt hem andthepart
nershi
p);nakedownershi
pisr
etai
ned
byeachoft
hepartners
.(seeal
soJacsonv.Bl
um,1Phi l
4)

b) Al lpr
ofi
ts acquir
ed by the i
ndust
ry orwork ofthe part
ner
s become
commonpr operty(regar
dlessofwhetherornotsai
dprofit
swereobtained
thr
oughtheusufructcont
ri
buted)
.

I
nuni
ver
sal
par
tner
shi
pofal
lpr
esentpr
oper
ty–

a) Allthepropert
yactual
l
ybel
ongi
ngtothepar
tner
sar
econtri
buted–and
sai
dpropert
iesbecomecommonproper
ty(
ownedbyal
lthepar
tnersandby
thepart
ner
ship)

b) Asar ule,asi
def
rom t
hecontri
butedproperti
esonl
ythepr
ofi
tsofsai
d
cont
ri
but
edcommonpropert
y(notot
herprofi
ts)
.

I
sfutur
epropertyincl
udedinuniversalpar
tnershi
pofallpresentpropert
y?
No.Thef ol
l
owi ngaret hereasonswhyf ut
ur e(byi
nher i
tance,legacy,and
donati
on)proper t
y cannotbe i ncluded i
nt he st
ipulati
on regardi
ng the
uni
versal
partnershi
pofallpr
esentpr oper
ty:

a) First,asarule,cont
ract
sr egardingsuccessi
onalr
ight
scannotbemade.
b) Secondl y, a par t
nership demands t hat the contr
ibut
ed t hi
ngs be
det
ermi nat
e,known,andcer t
ain.
c) Thirdly,auni ver
salpartnershi
pofal lpresentproper
ti
esr eal
lyimpl
i
esa
donati
on,and i tiswell-
known t hatgener al
l
y,futur
e propert
ycannotbe
donated.

PARTI
CULARPARTNERSHI
P:

Whati
saPar
ti
cul
arPar
tner
shi
p?

Ci
vi
lLawBarRevi
ewNot
es Page86
I
sapar t
nershi
pwherefori
tsobj
ectar
edetermi
nat
et hingsfort
heuseoft
hei
r
f
rui
ts,orspeci
fi
cunder
taki
ng,ort
heexer
ciseofaprofessi
on.

Whataretheobjectsofaparti
cularpart
ner
shi
p?
a.Determinat
ethi
ngs–t heiruseorf
rui
ts
b.Specif
icundert
aking
c.Exerci
seofprofessi
on

Howmaythedurat
ionoft
hepartnershi
pbeagreedupon?
a.Expr
ess–Thishasadefi
niteperiod
b.I
mplied–Uponachievementofitspur
pose

Whendotherel
ati
onshipsofapartnerbegi
nwhi
cheachother?
The r
elat
ionshi
p begins f
rom the momentofthe execut
ion oft
he
cont
ract
.

Whendoesthepart
nershipend?
Itendsontheexpir
ationofaf ixedt
erm oraccompli
shmentofaparti
cular
undert
aki
ng.Exceptthatifi
tdoesendonthi
sbasis,i
tbecomesapar
tnership
atwil
l.

Whati
sapartner
shipatwil
l
?
Iti
saconti
nuedbusinessbythehabi
tualmanager
sal
thought
heper
iodhas
endedort
hepur posehasbeenaccompli
shed.

Whatar etheinst
anceswhereitbecomesapar tnershi
patwi
ll?
a.Thereisnoterm,expressori
mpl ied.Hence,thereisanagr
eementt
hati
twil
l
conti
nuetoexist.
b.Partnersorsomeoft hem whohaveact edhabituall
ycont
inuet
hebusi
ness
wit
houtli
quidati
onofthepar
tnershipaf
fai
rs.

Whataretheef
fect
sofapar
tner
shipatwi
l
l?
Theri
ghtsandduti
esoft
hepartnersr
emaint
hesameast
heywher
eatsuch
ter
minati
on.

GENERALDI
STI
NGUI
SHEDFROM LI
MITEDPARTNERSHI
P

Ast
oli
abi
l
it
yoft
hepar
tner
s-

1.Gener alpart
nership–wher eal lthepar t
nersaregeneralpart
nerswhoar e
li
ablewithallt
heirproper
tyafteral
l part
nershi
passet
sareexhausted.
2. Li
mitedpar t
nershi
p–wher ethereisatleastonegener
al par
tnerandatleast
onel i
mitedpar t
ner,theli
mitedpar tnerbeingli
abl
eonlytotheext entofhis
contri
bution.

Ci
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G.PARTNERSHI
PBYESTOPPEL

Whatisest oppel?
Estoppeli s a barwhi ch precl
udes a per son from denying orassert
ing
anythingcont r
arytothatwhichhasbeenest abl
ishedat ruthbyhisowndeed
orrepr esentat
ion,ei
therexpressorimplied.Throughest oppel,anadmi
ssion
orr epresentati
on isrendered concl
usive upon t he person maki
ng i
tand
cannotbedeni edordisprovedasagainsttheper sonrelyi
ngthereon.

Whatismeantbypar t
nerbyest oppel?
Apartnerbyestoppelref
erstoaper sonwhor epresentshi
msel f
,orconsent
s
toanotherorothersrepresenti
nghimt oanyone,asapar tnerei
therinan
exi
sti
ngpartner
shiporinonet hati
sfict
it
iousorapparent.(
Art1825,NCC)

Whencanapar tner
shipbyestoppel exi
st?
Ifal
ltheact ualpart
nersconsentedt other epresentat
ion,t
hent heliabil
it
yof
theper sonwhor epresent
edhi mselftobeapar tnerorwhoconsent edto
such representati
on and the actualpartnersisconsi der
ed a par tnershi
p
l
iabi
li
ty.Thisisacaseofpar tnershipbyest oppel.Theper sonbecomesan
agentoft hepartnershi
pandhisactorobl i
gationthatofthepartnership.

Howdoesapersonnotapar
tnerbecomeapartnerbyestoppel
?
Hebecomesapart
nerbyest
oppelsunderanyofthef
oll
owingcases:

a. Hedi r
ectlyrepr
esentshimsel
ftoanyoneasapart
neri
nanexist
ing
par
tner
shi
pori nanon- exi
sti
ngpart
ner
shi
pwithoneormoreper
sonsnot
act
ualpar
tners;or

b. Hei ndi
rect
lyrepr
esent
shimsel
fbyconsent
ingt
oanot
herrepr
esenti
ng
himsel
fasapar t
nerinanexi
sti
ngpar
tner
shi
porinanon-
exi
sti
ngpart
nershi
p
(Art
.1825)

I
faper sonisadmi ttedasapar t
neri
ntoanexisti
ngpartnership,shallhebe
l
iablef oral
ltheobl igati
onsoft hepart
nershi
pi ncur
red byt hepar tner
shi
p
beforehisadmi ssi
on?
Yes,heshallbel iableforallt
heobli
gati
onsari
singbeforehisadmi ssi
onas
thoughhehadbeenapar tnerwhensuchobl i
gati
onswer eincurredbuthis
l
iabil
i
tyshal
lbesat i
sfiedonlyoutofpartner
shi
ppr opert
y,unl essthereisa
sti
pulati
ont
ot hecont rar Ar
y.( t
.1826)

Forobligati
onsoft hepar t
nershi
pincur
redaft
erhewasadmi t
tedintothe
part
nership,t
owhatext entshal
lhebeli
able?
Fortheseobligat
ions,heshallbeli
abl
etotheext
entofhi
ssepar
atepropert
y

Ci
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af
tert
hepar
tner
shi
passet
shavebeenexhaust
ed.

Wheni sanexi sti


ngoract ualpar tnershi
pboundbyt her epresentati
onmade
byori nbehal fofaper son( part
nerbyest oppel)t
hathei samemberoft he
partnership?
Theonl yinstanceunderourl awwhenanexi sti
ngpar tner shipisboundbyt he
representat i
onmadebyori nbehal fofapar t
nerbyest oppel iswhenal l
ofthe
Partnershadgi ventheirconsentt osuchr epresentation.I twillbeonlythen
thatapar tnershipobli
gat i
onshal lr esul
t.(Art
.1825,NCC. )I nsuchacase,
anyt hi
r dper sonwho,r el
yingonsuchr epresent
ations ,gavecr edittothe
partnership,canhol dt hepar t
nershipaswel lasalloft hepar t
ners,i
ncludi
ng
thepar tnerbyest oppel ,l
iableinaccor dancewi t
hAr t1 816oft heNCC.A
good exampl e ofthiswoul d be t hose who,notbei ng member soft he
partnership,includetheirnamesi nt hefi
rm name.( Art1815,NCC)

Whati st hechar act eroft hel i


abili
tyofapar t
nerbyest oppelt opersonswho,
rel
ying ont her epr esent ati
ont hatt hef ormeri sapar tneri nanact ualor
appar entpar tnershi p,havegi vencr edittosuchpar tnership?
Thechar act eroft hel i
abilit
yofapar tnerbyest oppel toaper sonwho,r elyi
ng
ont her epr esent ati
ont hatt hef ormeri sapar t
neri nanact ualorappar ent
partnership,have gi ven cr editt o such par t
nership shal ldepend upon
whet hera par tner ship obl i
gation hasbeen cr eat ed ornot .Ifpartnership
obli
gat i
on has been cr eated,he i sliable as though he wer e an actual
memberoft hepar tnership.However ,whennopar t
ner shi
pobl i
gat
ionhas
beencr eat ed,suchaswhent herei sact ual
l
ynopar tner shi
porevenwher e
therei s,notal loft he member st hereofhad gi ven t heirconsentt ot he
represent ation,hei smer el
yl i
ablepr oratawi ththeotherper sonsconsent i
ng
tother epr esent ation.( Art.1825,NCC)

Doesest oppelcreateapar tnershi


p?
I
tmustbeemphasi zedt hatestoppel doesnotcr
eatepar t
nershi
pasbet ween
all
egedpar t
ners.Acont ract,expressorimpli
ed,isessenti
altothefor
mat i
on
ofapar tnershi
p.Thel awconsi dersthem aspart
nersandt heassoci
ati
onasa
partnersandt heassociat i
onasapar t
ner
shi
ponlyinsof arasi ti
sfavorabl
e
tothir
dper sonsbyr easonofequi t
ablepri
nci
pleofestoppel.

H.PARTNERSHI
PVS.JOI
NTVENTURE

Di
sti
ngui
shpar
tnershi
pf r
om joi
nt-st
ockcompany
a. I napart
nershipthecapitalisnotdi
videdint
oshar
eswhilei
naj
oint
-
st
ockcompanythecapitali
sdivi
dedi nt
osharesasi
nacorpor
ati
on;

b. I napar
tnershi
pthemanagementasagener
alr
ulei
svestedinal
lthe
par
tner
s,whi
l
ei najoint
-st
ockcompanyt
hemanagementisentr
ust
edtoa

Ci
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boar
dofdi
rect
ors;

c. I n apar
tner
shi
pt hepar
tnercannotassi
gnhi
sint
eresti
nthepart
nership
toat hi
rdper
sontherebymakinghim apar t
nerwit
houttheconsentoft he
otherpart
ner
s,whil
ei najoi
nt-st
ockcompanyamembercant ransferhis
shareorsharesto anot
heratanyt imewi t
houtt
heconsentoft heot her
member s;

d. Apar t
nershi
pisanassoci
ati
onofper
sonswhi
l
eaj
oint
-st
ockcompany
i
sanassoci
ati
onofcapi
tal
.

I
. PROFESSI
ONALPARTNERSHI
P

Par
ti
cul
arPar
tner
shi
p-i
.e.Apar
tner
shi
pfort
hepr
act
iceofapr
ofessi
oni
sa
par
ti
cul
arpar
tner
shi
p

J.MANAGEMENT–Ar
ts.1
800-
1803

What ar ethe ri
ghts and obl
i
gations of a managing par
tner,whose
appoint
mentiscont
ainedint
hearti
cl
esofco-part
nershi
p?
a. Thepar t
nerwhohasbeenappoi ntedmanagerint hear
ticl
esofco-
part
nershi
pmay:

1. Execut
eallact sofadmi nist
rati
on,despi
tetheoppositi
onofhi s
par
tner
s;unl
essheshouldacti nbadf ai
th;
2. Hi spoweri sirrevocabl
e– meani nghecanber emovedf rom
managementonlyforj
ustandl awfulcauseandbyvot eofcontr
oll
i
ngi nt
erest
;
3. Hecannotexecut eactsofst r
ictdomini
onwithoutt
hecons entof
al
lt
heotherpart
ner Ar
s.( t.1800)

b. The par t
nerwho has been appoi
nted managi
ng par
tneraf
tert
he
const
it
uti
onofthepar
tner
shi
pmay:

1. Execut
eal lactsofadmi nis
trati
on,despitet
heopposi
ti
onofhi s
par
tner
s,unl
essheshoul dactinbadf ai
th;
2. Hi spoweri sr evocabl
e– meani ng hecanber emoved f
rom
managementatanyt i
mef oranycausewhat soever.
3.Healsocannotexecuteactsofst ri
ctdomi ni
onwit
houtt
heconsentof
al
lt
heotherpart
ners.(Ar
t.1800)

Whataret hepower soft woormor emanagingpart


nerswhoserespecti
ve
duti
esarenotspecif
ied?
Ift
woormor epar t
ner shavebeenappointedmanaging par
tner
swi t
hout
speci
fi
cati
onoft hei
rr espect
ivedut
ies
,orwithoutasti
pul
ati
onthatoneof

Ci
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t
hem shal
lnotactwi
thoutt
heconsentofal
ltheot
her
s,t
hei
rpower
sar
ethe
f
oll
owing:

1. Eachonemaysepar at
elyexecut
eallactsofadmi nist
rati
on;
2. I foneormor eofthemanagi ngpartnersshal
l opposet heact
sofothers,
thenthe deci si
onoft hemaj or
it
yofthemanagi ngpar tnersshal
lpr
evail
;
3. I ncaseofat i
e,thent hemat t
ershallbedeci dedbyavot eoft he
contr
oll
i
ng int
erest;but
4.Noonemayexecut eact sofstri
ctdomini
onwi thouttheconsentofallthe
other partner
s.(Art.1801)

How shal
lmanagementbeexer cisedincaseiti
sst i
pul
atedt hatnoneofthe
managi
ngpar t
nersshal
lactwi t
houtt heconsentoftheothers?
1. Theconcur renceofal
l shal
l benecessaryfort
heval i
dityofanyact;
2. Theabsenceordi sabi
lityofanyoft hem cannotbealleged;unlesst
here
i
s i mmi nentdangerori
rreparabl einj
uryt
othepar t
nership.(Art
.1800)

Whoshal lmanaget hepar t


nershi
pi ncasenomannerofmanagementhas
beenagr eedupon?
1. Al lthe part
ner sshallbe consi dered agentsoft he part
nershi
p and
whateverany one oft hem may do al one,provided itis an actof
administ
rati
onshallbi ndt
he par tnership;
2. I ncaseoneormor eopposet heactofone,i tshallbesettl
edbyt he
vot
eof majori
tyofallthepar t
ners;
3. I ncaseoft i
e,itshal
lbeset tl
edbyt hevoteofcontroll
ingint
erest;
4. Noneoft hepar t
ner
swi thouttheconsentoft heothers,may:

a. Makeanyimpor tantal
terati
onintheimmovableproper
tyoft he
part
nershi
p, even i fit may be usefulto t he
part
nership;
b. I fthe r
efusalorconsentby t he otherpart
nersismanifestl
y
prej
udici
al t
o t
he inter
estoft he par
tner
shi
p,the court’
i
nter
ventionmaybesought . (Art
.1803)

Ifappoint
mentismadeintheArt
iclesofPar
tnershi
p,ist
hepowerr
evocabl
e
ori
rrevocabl
e?
Powerisi
rr
evocabl
ewit
houtjustorl
awfulcause.

Inremovi ngthemanagingpart
nerappoi
ntedint heArt
icl
esofPar
tnership,
whatist
hevot erequi
red?
(
1)To r emove him forJUST cause,t
he controll
i
ng part
ner
s(contr
oll
ing
f
inanci
alinter
est
)shouldvot
etoOUSTHIM.( Ar
t.1800,par.
1)

(
2)Tor
emovehi
m WI
THOUTCAUSE,orFOR AN UNJUSTCAUSE,t
her
e

Ci
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mustbeUNANI
MITY(
incl
udi
nghi
sownvot
e).

Whati sthe ext


entofpoweroft he managi
ng par
tnerso named i
nt he
Art
iclesofPart
nershi
p?
(1
)I fheactsi nGOOD fait
h,hemaydoal lactsofADMINISTRATI
ON (not
owner shi
p)despi
tetheopposi
ti
onofhi
spart
ners.

(
2)Ifi
nBADf ai
th,hecannot(
however
,heispresumedtobeact i
ngingood
f
ait
h;moreover
,ifhe real
lyi
sin bad f
ait
hthe cont
rol
l
ing i
nter
estshoul
d
r
emovehi
m. )

I
fappoint
menti smadeothert
hanintheArt
icl
esofPar
tner
shipisthepower
r
evocabl
e ori rrevocabl
e?
Powert oactmayberevokedatanyti
me,wit
horwithoutjustcaus
e.

Whatisthelogi
cbehi
ndt
herul
estat
edabove?
Suchappoint
mentisameredel
egat
ionofpower
,revocabl
eatanyt
ime.(
11
Manresa381).

Whati stheext entofpowerofsuchmanager ?


Extentofpower :Aslongasher emainsmanager ,hecanper form allact sof
ADMI NISTRATI ON,butofcour se,i ft
heotherpeopl eopposeandheper si
sts
,
hecanber emoved.
Whatar ethepower sofamanagi ngpar t
ner?
Amanagi ngpar t
nercanbepr esumedt ohaveal lt
heinci
dentalpower sto
carryouttheobj ectofthepar tnershi
pint hetransact
ionofbusiness,subj ect
totheexcept i
on,however ,thatwhenpower sarespecifi
cal
lyr est
ri
ct ed,he
cannotexer ci
se the powersexpr essl
ydeni ed him.When t he articlesof
associati
ondonotspeci fythepower soft hemanagi ngpartner,hehas,on
pri
nciple,thepower sofagener alagent ,and evenmor e;and whent he
objectoft he company i sdet ermined,t he managerhasal lthe power s
necessaryf ortheatt
ainmentofsuchobj ect.

Whatistherulewhent
her
ear et
woormoremanagers?
Specif
ic Rul
es-Each mayseparat
elyexecut
e al
lactsofadmi
nist
rat
ion
(unl
i
mitedpowerstoadmi
nist
er)
.

Whatistheexcepti
ontother
ule?
Exceptifanyoft hemanagersshoul
doppose.(
Her
ethedeci
si
onoft
he
MAJORITYshallprevai
l
.)

Whohast
her
ightt
ooppose?

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Ther i
ghttoopposeisnotgi
vent onon-
managersbecausei
nappoi
nti
ngthei
r
other par t
ners as managers, t
hey have str
ipped t
hemsel
ves of al
l
parti
cipat
ionintheadmi
nist
rat
ion.

Whenmusttheot hermanagersmaket heopposi


ti
on?
Befor
etheactsproducelegaleff
ectsinsofarast
hirdper
sonsareconcer
ned.
Reason– forthem todelayorf orthem toprotestaft
erthi
rdpart
iesare
af
fectedwoul
dbeunf ai
rtosaidthir
dpar ti
es.Moreover
,theactsoft
hefir
m
wouldbeunst
able.

Supposether
eisati
e,whati
sther
ule?
Thepartner
sowningtheCONTROLLING I
NTERESTpr
evai
l
s–pr
ovi
dedt
hey
areal
somanagers.

Whathappenswhent herehasbeenanef f
ecti
veopposit
ion,butst
il
lthe
managergoesaheadandexecut et
heactopposed?
Oppositi
onbyonepar tnertotheproj
ect
edactbyanot herissuff
ici
entto
preventit
;andift
helatt
er,i
gnori
ngsuchobj
ecti
on,goesaheadandexecutes
t
heact ,itshal
lbevoid,notonl
yasamongt hemember sbutalsoastothir
d
persons,whohadknowl edge,orwhocoul
dhaveknown,ofsuchoppos i
ti
on.

Whenwi llt
heactbeval iddespit
eopposi ti
onofothermanagers?
Itwil
lbevali
dwi t
hr especttothet hi
rdpersonwhocont r
actedwit
hapar tner,
i
fsuchthirdpersoni snotoftheopposi t
ion,andthecont
racti
sonewi t
hinthe
scopeoft headmi nist
rat
ionofthepar tnershi
p.Thepart
nercontr
acti
ngisan
agentoft hepartnershipandwi thinthescopeofhi sauthor
it
y,hiscontract
withaninnocentthir
dper sonbindsthepr i
ncipal
.

Whati ft
hereisaspeci
fi
cat
ionofdut
iesamongt hemanagers?
I
ft heseparateduti
esofthemanager sarespecifi
ed,suchaswhenonei s
givenchargeofsalesandanotherofpurchases,eachoneisconsi
deredas
exclusi
veandsolemanagerastotheactswithi
nthesphereofhi
sauthori
ty.

Whenmustt her
ebeunani mit
yi ntheactuati
onsofthemanagers?
I
ncasei tshouldhavebeenagr eedthatnoneoft hemanagingpartnersshal
l
actwi t
houtt he consentoft he others,the concurr
ence ofallshallbe
necessaryforval
idit
yoft heacts,andtheabsenceordi sabi
li
tyofanyoneof
them cannotbe al leged,unless ther
ei si mminentdangerofgr ave or
i
rrepar
ableinj
urytothepar t
nership.

Suppose one the managersisabsentorincapaci


tat
ed,i
sunani
mit
yst
il
l
requi
red?
Yes,f
ortheabsenceorincapaci
tyi
snoexcuse.

Ci
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Whati sthe except
ion t
ot he rul
et hatabsence ori
ncapacit
yis no
excuse?Whenthereisimminentdangerofgr
aveorirr
epar
abl
einjuryt
othe
part
nershi
p.

I
nj ointmanagement ,whohast hedut yinsecuri
ngt heconsentoft heot her
partner?
I
nsuchcase,t heobl i
gat i
ontosecur etheconsentoft heot herpartnerrests
upont hepartnerenteringi nt
othecont r
act
.Itisnoti mposedupont hethird
personwhoent er
sintot hecontr
actandwhoi snotr equiredt overi
fywhet her
thepar t
nerenteri
ngi nt
ot hecontracthaspr evi
ouslyobt ainedt heconsentof
theot hers.I
tispr esumed t hatsuchconsenthasbeengi ven,unlesst he
contraryhasbeenpr eviouslymanifestedtothethi
rdper son.

Whathappenst oacont r
actenter
edi ntobyonepar t
nermade,notonl y
wit
houttheconsentoftheotherbutevenagai nsthi
swill
,ifthethir
dperson
act
edingoodf ait
handthetr
ansacti
onr ef
erstomat t
erswithinthebusi
ness
oft
hepar tner
ship?
Thecontractcannotbeannul
l
ed,withoutprej
udicetotheli
abili
tyofthegui
lt
y
part
ner
.

Whati st
her easonf ortheabovest atedr ul
e?
Thereasonf orthisruleisthenecessityofpr otecti
ngthi
rdper sonsf rom f
raud
anddeceit,ofwhi cht heycanbeeasyvi ct i
ms .Furt
hermor e,ther equi
rement
ofthe pr evi
ous appr ovalby the ot herpar t
nerobvi ouslyr eferstot he
executi
onoff ormalcont ract
si nwri
ting,andnott orout
inet r
ansact i
ons,such
asordinarypurchasesandsal esforaf i
rm engagedi nt
hebusi nessofbuying
andselli
ngmer chandiseofal lki
nds,nat urall
ycomewi thi
nt hescopeoft he
generalauthori
tyoft hemanagerofabusi ness.

Whatt heni st hedut yofat hi


rdper sondeal i
ngwi t
hapar tnershiprequiri
ng
unani mityi nt heact uat i
onsofitsmanager s?
Ther ulet hatt hi
rdper sonsar enotr equiredt oinquireast owhet herornota
partnerwi thwhom het ransactshast heconsentofal lthemanager s,forthe
presumpt i
oni sthatheact swi thdueaut horit
yandcanbi ndt hepar tnershi
p
appliesonl ywhent heyi nnocent l
ydealwi t
hapar tnerappar entlycarryi
ngon
i
nt heusualwayt hepar tnershipbusi ness.BecauseunderAr t.1802,i tis
i
mper ativet hati funani mityisr equi
redi tisessentialthatt herebeunani mi t
y;
otherwi se,t heactshal lnotbeval i
d,thati s,thepar tnershipi snotbound.I t
woul d bewi set hereforei fthet hir
d per soncoul di nquirewhet herornot
unani mityi sr equi r
ed,andi fso,i fsuchunani mi t
yispr esent.Thi sisforhi s
ownpr ot ection.Thus ,ithasbeenhel dt hatasal ebyapar tnerofpar tnershi
p
assetswi thoutt heconsentoft heothermanager sisnotval id.

I
I. RI
GHTSANDOBLI
GATI
ONSOFPARTNERSAMONGTHEMSELVES

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PROPERTYRI
GHTSOFAPARTNER

Whatar
ethepr opert
yri
ghtsofapar t
ner?
a. Hi sright
sinspecif
icpartner
shi
pproper
ty;
b. Hi sinter
esti
nthepartnershi
p;and
c.Hisr
ightstopart
ici
pateinthemanagement.(Ar
t.1810)

Asr egar
dsspeci
fi
cpartner
shi
ppr oper
ty,whatrel
ati
onshipexi
stsbet
ween
andamongthepartner
s?
Apartneri
saco-ownerwithhispar
tnersofspeci
fi
cpartner
shippr
opert
y.(Ar
t.
1811)

Whataret
hei
nci
dent
soft
hisco-
owner
shi
p?
Theyare:

a.Apar tnerhasanequalri
ghtwit
hhispart
nerst
opossessspecif
icpartner
ship
propertyf orpar
tner
shi
ppurposes;subj
ecttoanyagreementbet weent he
partners;buthehasnori
ghtt
opossesssuchproper
tyforanyotherpurposes
withouttheconsentofhi
spar
tners;

b. A part
nercannotassignhi sr i
ghttospeci fi
cpar t
ner
shipproper
tyf orhi
s
personalpurposebuthecanassi gnitinconnectionwiththeassi
gnmentof
theri
ghtsofallt
hepar t
nersi
nt hesamepr opert
yforpar
tnershi
ppurpose.
c.Apar t
ners’
orexecutionforhispersonalobligat
ions,butcanbeat tachedorsubjectt
o
executi
onf oracl
aim agai
nstthepar t
nership.

d.Whenpar t
nershi
ppropert
yisatt
achedforapart
ner
shi
pdebt,t
hepart
ners,or
anyofthem,ortherepresent
ati
vesofadeceasedpar
tner
,cannotcl
aim any
ri
ghtunderthehomesteadorexempti
onlaws.

e.A part
ner’
suppor
t Ar
.( t.1811)

Whatisthenat
ureofapar
tner
’ ?
Apartner’ .
Thepartner
’ Ar
.( t
.1812)

Whataret
heright
sofapar t
nerinaspecif
icpartnershi
ppropert
y?
(1)A par
tnerhas an equalr ightwit
hi s partnersto possess speci
fi
c
part
ner
shi
ppropert
yforpartner
shippur
poses ;buthehasnor i
ghttopossess
suchpr
opert
yforanyotherpurposewit
houttheconsentofhispartners;

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(2)Apartner’
i
nconnect i
onwi t
htheassi
gnmentofri
ght
sofallt
hepar
tner
sinthesame
proper
ty;(Reason:I
tishar
dtodeter
minehow muchi
texact
lyi
sunti
laf
ter
l
iqui
dati
on)

(3)A par t
ner

attachmentorexecution,exceptonacl aim againstt
hepart
nership.When
par t
nershi
ppropert
yisattachedforapart
nershipdebtthepar
tners,oranyof
them,ort herepresentat
ivesofadeceasedpar t
nercannotclai
m anyr i
ght
underthehomest eadorexempt i
onlaws;(Reason)
(4)A par t
ner

supportunderArt.291.

Whatisthe eff
ectofthi
sprovi
si
on t
othe separ
ate and di
sti
nctj
uri
dical
per
sonal
i
tyofthepar
tner
shi
p?

Thi
sAr ti
cl
eseemst obei nconsist
entwi t
ht heideaofasepar atejur
idi
cal
personal
it
yofthepar tner
ship.Thepar t
nership,asajur
idi
calperson,owns
everypropert
yint hecommonpat ri
mony.Thesoci alpat
rimonydoesnot
belongtothepar
tners,buttothepartner
shipitsel
f.

Whatisapar tner
’ ?
A partner’
surpl
us.The part
ner
’ Ar
.( t
.
1812)

Whatisapar t
ner’ ?
A part
nerhasnoi ndivi
dualpropert
yi nanyspeci fi
cassetsofthefi
rm,but
eachpar tner’
aft
erpar t
nershipdebt
sar epaidandpar t
nershipaccountshavebeensettl
ed.
Theinterestofonepar t
nerintheassetsofapar t
nershipdoesnotenti
tl
ehim
toanypar ti
cularpor
ti
onofsuchasset s,butmer el
yconf ersuponhi
m ar i
ght
toanaccount ingwit
hot hermember softhepar t
nership,andwhenaff
airsof
thepartnershi
paresettl
ed,suchpartnershall
receivethesharetowhi
chhei s
enti
tl
ed.

A partner ,however ,subjectto agr eementbet ween t he par


tner
s,hasan
equalr ightwi t
h hispar t
nerst o possessspeci f
icpar tner
ship pr
opertyf or
part
ner ship purposes,buthasno r ightto possesssuch pr opert
yf orhi s
personalorot herpur poseswi t
houtt heotherpartner’ .Onepar tner
hasnor ighttotheexcl usi
vepossessi onandcont rolofspecif
icpartnership
propertyasagai nsttheotherpar tner,unti
labal anceofaccount sisst ruck
betweenhi m andhisco- part
nerandt heamountofhi sinter
esti
sascer t
ained.

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Whatconst it
utesapar t
ner’ ?
Thei nterestofapar t
nerinpartnership pr
opert
yand businessisthenet
balance f ound to be due him af t
erpaymentofpar tnershi
p debt
s and
adjustmentofpar t
nershi
p accountsbet ween hi
mselfand hisco-part
ner.
Suchi nteresti s“propert
y”andissus cepti
bleofbei
ng sei
zedunderl egal
process ,orofbei ngsoldandconveyed,aswel lasofbeingmadel i
abl
ef or
hi
ssepar atedebts.

Isapartner ’
hi
s personaldebt s?
Yes,beinghi spersonalproperty,hi
sinteresti
nthepart
nershi
pondue
appl
icati
ontoa compet entcourtbyanyj udgmentcredi
tormaybechar gedfor
thepaymentoft heunsat i
sfi
edamountoft hejudgmentdebtwi t
hint
erestt
hereon.
Thecourtwhichi ssued t hechar gi
ngor dermayeven:

a. appointarecei
verofthedebtorpart
ner’ ,andany
other moneydueort ofal
lduetohiminrespectofthepar
tnershi
p;
b. makeal l
otherorder
s,dir
ecti
ons,account
sandi nqui
ri
eswhichthe
debtor par
tnermighthavemade,orwhi chthecir
cumstancesof
thecasemayr
equi
re. (Art
.1814)

Maythei
nter
estsochar gedber edeemedandwithwhatproper
tyshall
itbe
redeemed?
a. Thei nt
erestchargedmayber edeemedatanyt
imebef or
eforecl
osure;
or
b. I ncaseofsaledirect
edbyt hecourtmaybepurchasedwit
houtcausi
ng
a di
ssolut
ion.

1. Wi
thseparat
epr opert
y,byanyoneormoreofthepart
ners;or
2. Wi thpart
nershippropert
y,byanyoneormoreofthepart
nerswit
hthe
consent ofall
thepartner
swhosei
nter
est
sarenotsochargedor
sol
d.(Ar
t.1
814)

Whatotherr
ightmayapar t
nerwhoseint
eresthasbeensochar
gedavail
of?
Wit
hrespecttohisint
eresti
nthepart
nershi
p,hemayavailhi
mselfoft
he
exempt
ion laws,afterpart
ners
hipdebtshavebeenpaid.(Ar
t.1
814)

Canapar tnerassi
gnhiswholei nt
eresti
nt hepar
tner
shi
ptoanotherwit
hout
theconsentoftheotherpar
tners?
Yes,becausehi sint
eresti
nt hepar t
nershipi
shispersonalpr
opert
y.(Art
.
1813)

Wil
lt
heassi
gneebecomeapar
tner
?
No,unl
essconsent
edt
obyt
heotherpar
tner Ar
s.( t
.1813)Theassi
gnori
sst
il
l

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t
hepar
tner
,wi
thar
ightt
odemandaccount
ingandset
tl
ement
.

Whatar ethe eff


ect
sofconveyance bya part
nerofhisi nter
esti
nt he
par
tner
ship?
I
fapartnerconveyshi
swhol
eint
eresti
nthepar
tnershi
p,ei
theroftwot
hings
mayhappen:

1)Thepar
tner
shi
pmayst
il
lremain;or
2)Thepar
tner
shi
pmaybedi ssol
ved.

Butsuchmereconveyancedoesnoti
tsel
fdi
ssol
vet
hef
ir
m;t
her
efor
e,i
n
gener
alt
hepar
tner
shi
pr emai
ns.

I
ntheabsenceofanagreementtot
hateff
ect,theconveyancebyapart
nerof
hi
s whol
eint
eresti
nthepar
tnershi
pdoesnotdissol
vethepartner
shi
p.(
Art
.1813)

OBLI
GATI
ONSOFPARTNERSTOTHEPARTNERSHI
P:

Whatarethespecif
icsobli
gati
onsofapar t
ner?
a.Dutytocontri
bute
b.Dutytocreditt
hefir
m
c.Dutytopaydamagescausedbyhi sfault
d.Obli
gati
ontoaccountf orandholdastrusteeunaut
hor
izedpr
ofi
ts
e.Obli
gati
onnott oengageinanotherbusiness

Whatarether
ulesofthepartnersregardingt hedut ytocont r
ibut e?
a.Thecontr
ibut
ionmustbemadeatt het i
met hepartner shipi
sent
ered
i
nto unl
essadi ff
erentperiodi ssti
pulated.
b.Nodemandi sneededt oputt hepar t
nerindef aul
t
c.Thepart
nermustexer ci
seduedi l
igencei npr eser
vingt heproper
tyto
be contr
ibut
edbef oreheact ual
lycont ri
butest hesame.
d.Apartnerwhopr omisestocont ributetot hepar t
ner shipbecomesa
debtorofthepar tnershi
p.

Whatar ether ulesont hedut ytodelivert hefruit


s?
a.Ifpropertyhasbeenpr omised,thef ruitsthereofshoul dal
sobegi ven.
b.Thef r
uit
sr eferredtoar ethosearisingf rom thetimet heyshouldhavebeen
deli
vered,withoutaneedofanydemand.
c.Ifapar t
neri sin bad faith,he isl iable notonlyf orthe f
ruit
sact ual
l
y
produced,butal sof orthosethatcoul dhavebeenpr oduced.
d.Ifmoneyhasbeenpr omi sed,interestanddamagesf rom thet i
mehe
shouldhavecompl i
edwi thhisobli
gat i
onshoul dbegi ven.
e.Nodemandi sneededt oputt hepar t
neri ndef aul
t
f.I
tisdeli
very,act ualorconstructi
vet hatt r
ansfersowner shi
p

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Whataretherul
esont hedut
ytowar rant
?
a.Thewarrant
yincaseofevictionrefer
stospeci
ficanddet
erminat
ethings
al
readycommuni cat
ed.
b.Therei
sevict
ionwheneverbyf i
naljudgmentbasedonarightpri
ort
ot he
sal
eoranacti mput abl
etothepar tner
,thepart
nershi
pisdepri
vedoft he
wholeorapartofthethi
ngpurchased.

Whenisapar
tnerconsi
der
edadebt oroft
hepart
nershi
p?
Apar
tneri
sconsi
deredadebtorofthepart
ner
shi
pforwhateverhemayhave
pr
omisedt
ocontri
butet
her
eto.(Ar
t.1786)

Whatisther
emedyagainstapart
nerwhofail
stocont
ribut
e?
Act
ionisoneforcol
l
ect
ionbecausethedef
ault
ingpar
tneri
sadebt
or.

Whataretheobl
i
gat
ionsofapar
tnerwi
thr
espectt
ohi
spr
omi
set
ocont
ri
but
e
proper
ty?
Theyare:

a. Tocont r
ibut
et hepropert
yatt hebegi
nni
ngoft hepartnershi
poratt
he
ti
me sti
pulat
ed.
b. Toanswerf orthewar r
antyi
ncaseofevicti
oninthesamecasesandi n
thesame mannerast hevendorisboundwit
hrespecttothevendee;
c. Tobel i
ableforthefrui
tst
hereoffr
om t
hetimethepr opert
yshoul
dhave
beendeli
veredwithouttheneedofanydemand.( Ar
t.1786)

Howi sappr
aisalmadeifthecont
ri
buti
onisaproper
ty?
Fi
rst
ly,asprescr
ibedinthecontr
actandi nt
heabsencet
her
eof
,byexper
ts
chosenbypartnersandatthecur
rentpri
ce.

I
fthecapitalorpar tther
eofwhichapar tneri
sboundt ocont r
ibut
econsist
sof
goods,howshal lsai
dgoodsbeappr ai
sed?
Theappr aisalmustbemadei nthemannerpr escr
ibedint hecont
ractof
part
nership.I ntheabsenceofsti
pulat
ion,itshallbemadebyexper tschosen
bythepar t
ner sandaccor di
ngto cur
r entprices. Anysubsequentchange
ther
eofshal lbefortheaccountoft
hepar t
nership.(Ar
t.1787)

Aft
ert he goods have been cont r
ibut
ed by the part
ner,willt
he r
isk of
subsequentchangeintheirvaluesti
l
lbeburdenedbyt helat
ter
?
No,iti
sshift
edtothepartnership.

Whatarethel
iabi
li
ti
esoft
hepart
nerwhohasundert
akentocont
ri
buteasum
ofmoneyandf ai
l
stodoso?
Thepar
tnerbecomesadebtorf
orthei
nter
estanddamagesfr
om theti
mehe

Ci
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shoul
dhavecompl
i
edwi
thhi
sobl
i
gat
ion,wi
thoutnecessi
t Ar
yofdemand.( t
.
1788)

Whatr ul
eshallapplyi
nt heeventapart
nerconver
tspart
ner
shi
pmoneyt ohi
s
personaluse?
The partnershallbe l
iableforthe amounthe mayhave taken f
rom t
he
partner
shipcofferswit
hi nt
erestanddamagesf r
om theti
meheconver t
ed
theamountt ohisownuse.( Art
.1788)

Whatar et heconsequencesi fani ndustri


alpartner,wit
houtconsentoft he
otherpartners,engagesi nanot herbusi ness?Or ,Mayani ndustr
ialpar
tner
engageinbusi nessforhimself
?
a.Hecanbeexcl udedint hef
irm.
b.Ther emai ni
ngpar t
nerscanavai loft hebenef i
tssaidi ndustr
ialpar
tner
earnedplusdamages .
*Thecapi tal
i
stpar t
nershavet her ightt o excl
udehi m from thef ir
m with
damages;or
*The capital
istpartners can availt hemselves oft he benefit
s which the
i
ndustri
alpartnermayhaveobt ainedwi thar i
ghttodamages( Art
.1789)

An i
ndust
ri
alpartnercannotengage i
n busi
nessforhi
msel
f,unl
esst
he
par
tner
shi
pexpresslyper
mit
shimtodoso.(Art
.1789)

Whati ft
her eisnocompet i
ti
onbet weenthebusinessofthepart
ner
shi
pand
thei ndustr
ialpartner?or,Doest hi
sprohi
bit
ionapplytoabusinesst
hesame
ast hebusinessoft hepar t
nershi
p?
Sti
lltheindustrialpart
nerisli
ablebecauseallhisi
ndustr
ymustbedevotedto
thepar t
nership.Thepr ohibi
ti
onext endstoanyki ndofbusinessbeitthe
sameordi ffer
entf r
om thebusinessofthepartner
ship.

Howmuchi stobecontr
ibut
edinthepart
ner
ship?
Thepart
nersshal
lcont
ri
buteequalshar
estothecapi
taloft
hepar
tner
shi
pif
ther
eisnosti
pul
ati
ontothecont
rary.

I
ncaseofi mminentl ossofthebusinessofthepar t
nershi
pwhi chpar t
ners
arerequired to contri
bute addi
ti
onalcapit
alto save the busi
nessoft he
part
nership?
Thecapitali
stpartnersareunderobli
gat i
ont
ocont r
ibuteaddit
ionalcapit
alto
savethevent ur
eunl essther
eisanagr eementt
othecont rar
y(Art.1791)

Whati sthe remedy in case a capit


ali
stpart
nerr ef
uses to contr
ibute
addi
ti
onalfundwhenheisboundt odoso?
Thecapit
ali
stpart
nerwhor ef
usestocontri
buteaddi
ti
onalcapit
alt
osavet he
vent
ureshallbeobl
igedt
osellhi
sinter
esttotheot
herpartner
s.(Ar
t.1791)

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Ifapar t
nerfail
stocontri
but
ewithinasti
pulat
edti
mewhatwaspr omi
sed,
maypar t
nershi
pcontr
actberesci
nded?
Generalrul
e,No,rescissi
onisnottheproperremedy;theremedyshoul
d
coll
ectwhati sowi
ng. Howeveri fthedefaul
ti
ngpart
nerisal
readydead,
resci
ssi
onisproper
.

Whichpartneri snotboundt ocont ri


but
eaddi ti
onalf
unddespi teimminent
l
ossofthebusi nessofthepartner
ship?
Theindust
rialpar t
nerisnotbound t o contri
buteaddit
ionalfund because
havi
ngcontributedhisenti
reindustr
yhehasnot hi
ngmoret ocontri
bute.But
i
fhei spartlyindustr
ialandcapitali
stpartner
,asacapi t
ali
stpart
nerhei s
bound t
o cont ri
bute addi
ti
onalfund unlessthereisan agr eementt othe
cont
rar
y.(Art.1791)

Whatar etheruleswhent hereexi st


sacr edi
ttot hefi
rm andpaymenti s
made toapar t
nerwhoi sal
soacr editorofthesamedebt or
?
a.Ift
hemanagingpar t
nergivesreceipttothef i
rm,itist
hefir
m’
exti
ngui
shed.
b.Ifmanagingpartnersgivesreceiptforhisdebt ,amountcollect
ionshal
lbe
appli
edinproport
ion.
c.Bywayofexcept i
on,ofthecreditorappliesbywayofappl icati
onprovi
ded
thedebttothepartnerismor eoneroust othedebt or
.

Whatar ether equisit


esifadebtiscol l
ect
edwherethedebtorowesbotha
part
nerinhi sper sonalcapacit
yandt hepar
tner
shi
p?
a.Twodebt sf rom thesamedebt or
b.Bothdebt sar edueanddemandabl e
c.Col l
ecti
ng par t
neri s a managing par
tner
,ifnotthereis a bas
isfor
suspi
ciont hatt hepar t
nerisacti
ng forhisownbenefit
. Also,heisina
posit
iontogi vepr efer
encetohiscredit.

Whatistheobl i
gati
onofapar tnerwhohasr eceivedinwhol eori npart,his
shar
eofapar t
nershi
pcr edi
twhent heotherpart
ner shavenotcol lect
edtheir
shar
eandt hepar t
nershi
pdebtorthereaf
terbecomesi nsolvent?
Thepart
nerwhohascol lect
edhissharemustbr ingtothepar tnershipcapi
tal
whathereceivedevent houghhemayhavegi venar eceiptforhisshareonly.
Thi
srul
eappl i
eswhet herthepartnerwhor ecei
veshi sshareisaut hori
zedto
manageornot .(Art
.1793)

I
fthepar t
nershipsuffer
slossordamageduet ot
hefaultornegli
genceofa
part
ner,whoshal lberesponsi
ble?
I
tistheverypar t
nerwhobyhi sf aul
tornegl
i
gencecausedlossordamageto
t
hepar t
nership.(Art
.1794)

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Cant hepar t
nerwhoi sr
esponsi
bleforthedamagecompensat ethem wit
h
theprof i
tsandbenef i
tswhi
chhemayhaveear nedfrom thepart
nershi
pby
hisi
ndust ry?
No. Butt hecourt
smayequi t
ablyreducehisresponsibi
li
tyi
fthroughhi
s
extr
aor di
nar yef
fort
sinotheract
ivi
ti
esoft hepar
tner
ship,prof
it
smayhave
beenr eali
zed.(Art
.1794)

Whyaredamagesnotoffsetbybenefi
ts?
a.Part
nerhasadutytosecurebenefi
ts,dut
yalsonottobeatf
aul
t.
b.Si
nceitisaduty,compensati
ontakespl acepresuppose2per
sonswho
ar
erecipr
ocal
lyl
i
ableofeachother.

I
II
.OBLI
GATI
ONSOFPARTNERSHI
P/PARTNERSTOTHI
RDPERSONS

Whati st her uler egar ding thel iabil


it
yoft hepar tnersf ort hecontractual
obli
gationsi ncur red by t he par t
ner ship? Or ,How ar e par t
nersincl
uding
i
ndust r
ialonesl iablef orcont r
actual obli
gati
onsoft hepar tner shi
p?
Allt
hepar t
ner s,includingt heindust ri
alpartners,areliabletocr edit
orsofthe
part
ner shi
pf ort heobl i
gat i
onscont ractedinthenameandf ortheaccountof
the par t
nershi p.The debt s and obl igat
ions oft he par tnershi
p are,in
substance,al sot hedebt sandobl igati
onsofeachi ndi vi
dualmemberoft he
fi
rm.Thel i
abilit
yt odebt or( partners)ispr or ataandsubsi diarywithal
ltheir
propertyforcont r
act ual obligati
onsoft hepartnershi
p.( Art
.1816)

Whati smeantbyt het er


m“ prorata”inthedi str
ibut
ionofthepart
nershi
p
l
iabi
li
tyamongt hepart
ners?
Prorata,asusedi nthelaw,mustbeunder st
oodt omeanequall
yorjoint
ly
and notpr opor
ti
onat
elywhichisi t
sliter
almeani ng becausepro-r
ati
ng is
based on t he numbers ofpartners and noton t he amountoft heir
contr
ibut
ionstothecommonf und,subjecttoadjustmentamongthepart
ners.

Thefactt hatapar tnerhasl eftt


hecountr
yandt hepaymentofhi sshareof
theli
abi l
i
tycannotbeenf orced(Co-Pit
cov.Yul o,8Phi l544.
);orhi
sli
abili
ty
wascondonedbyt hecreditor(I
sl
andSales,I nc.v.Uni t
edPioneer
sGen.
ConstructionCo.,65SCRA 554. )cannotincreasethel i
abil
i
tyoftheot her
part
ner s.
Pr o-
rat
aliabil
it
yher e,doesnotmeanpr oport
ionatetothepart
ner’
contr
ibutionbutisunder st
oodt omeanequal l
ydividedamongt hepart
ners.

Whati smeantbyt hesubsidi


aryli
abil
it
yoft hepar t
nerswi t
hr egar
dstothe
part
nershipdebtsandobli
gati
onstothi
rdper sons?
Theliabil
i
tyoft hepar
tnerstothecreditor
soft hepar tner
shipissubsidi
ary
becauset heybecomel i
ableonl
yafterallthepartnershipassetshavebeen
exhausted,unlessa parti
cul
arpartnerassumesa separ ate obli
gat
ion to

Ci
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perf
orm a par t
nership contr
actor make hi msel
f sol
idar
yl i
abl
e on a
part
nershi
pcontract.Itmeanst hatpart
ner
shipasst
sfir
stbeexhaustedfor
t
hepaymentofpar t
nershi
pobl i
gati
ons,befor
ethepar t
nersshal
lbecome
l
iabl
ewi t
hthei
rpersonalpropert
y.

Howdoyour econci l
et heexcept i
onofani ndustri
alpar t
nerfrom l
ossandhis
pro-rate l
iabili
tyf orpartnershipcontractualobli
gati
ons?
Theexcept i
onofani ndus tri
alpart
nerf r
om lossisapplicabl
eonl yamongt he
partners t
hemsel ves,butthei ndust
ri
al part
nerisnotexemptf rom partner
ship
l
iabi
lit
ytot hi
rd par t
ycreditors.Theindust r
ialpart
nerisli
ableforhispro-r
ate
sharetot heextentofhi s personal propertyaft
erpar t
nershipasstshavebeen
exhausted.Butt hei ndustri
al par t
nercanseekr ei
mbur sementf orwhathehas
paidfrom theot herpar t
ners,for amongt hemselvesheshal lbeexempt ed
fr
om loss .

Wheni sapart
ner
shipcontractualobli
gati
oni ncur
red?
Apar t
ner
shi
pcontractual
obli
gationarisesfrom acontractwhichisenter
ed
i
ntointhe nameandf ortheaccountoft hepartnershi
p,forapparentl
ycarryi
ngon
t
heor dinarybusi
nessofthepartnershi
p,byapar tnerauthori
zedbyt hepartner
shi
p.
(
Art.181 8)

Whatistheef fectofasti
pul
ati
onamongt hepar
tner
scontr
arytothepro-
rat
a
and subsidi
aryliabil
it
yofthepart
ners?
Suchsti
pulationisval
idandenforceabl
eamongthepar
tners,butvoi
dandof
noef
fect i nsof arasitaf
fectst
herightsoft
hir
dpar
tycr
edi
tors
.

I
sani ndust r
ialpartnerexempt edf r
om liabil
i
tytot hi
rdpersonsf ort
hedebt s
ofthepar tner shi
p?
No.Theexempt ionoft heindust ri
alpartnertopayl ossesrelatesexcl usively
totheset tlementoft hepar tnershipaffairsamongt hepar t
ner sthems el
ves
andhasnot hingt odowi ththel iabil
i
ti
esoft hepar tnerstothirdper sons.An
i
ndust ri
alpar tnerthereforeisnotexempt edfrom li
abili
tyt
ot hirdper sonsf or
thedebt soft hepartnershi
p.Nei t
heronpr inci
plenoronaut hori
tycant he
i
ndust ri
alpar t
nerber el
i
evedf r
om l i
abil
i
tyt othi
rdper sonsf
ort hedebt softhe
partner p(
shi Compani aMar i
timav.Munoz,9Phi l
.326)

I
ntheabsenceofanyagreementt
othecontr
ary,whoshal
lactasagentofthe
part
nershi
p?
Everypart
neri
sanagentoft
hepart
nershi
pforthepur
poseofit
sbusiness.
(
Art
.1818)

Whatist
hemutual
agencyrul
e?
Art1818pr
ovi
desfort
hemutualagencyr
ulewhi
chstat
esthat,“ever
ypart
ner
isanagentoft
hepartner
shi
pforthepur
poseofit
sbusiness,andtheactof

Ci
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ever
y partner,incl
uding t
he execution i
nt he par
tner
shi
p name ofany
i
nstr
ument ,forapparent
lycarr
yingoni ntheusualwayt hebusi
nessofthe
part
nershi
p ofwhi ch he isa memberbi ndsthe part
ner
shi
p,unlessthe
part
nersoact inghasi nfactnoaut hor
it
yt oactforthepart
nershi
pinthe
part
icul
armat t
er,andthepersonwi t
hwhom hei sdeali
nghasknowledgeof
thefactt
hathehasnosuchaut hor
it
y.”

Shouldat hir
dpersoninquireont herestr
icti
onsimposedbyt hepar t
ner shi
p
uponapar tnerbef
oredealingwiththepartnershipthroughthesaidpartner?
No.Thi r
dpersonsarenotboundt oinquir
ei nt
ot heexistenceoftherest
ricti
on
butmayr elyonthepr esumpt i
onthatapar tnermaybi ndthepar t
ner shi
p
(Li
tt
on v.Hi l
l& Coron,67 Phi l509).However ,no actofpar t
neri n
contravent
ion ofa restr
icti
on oraut hori
ty shallbind the partner
shipt o
personshavingknowledgeoft herest
ri
cton(
i Art1818,lastpar.
)

Whencanapart
nerbindt hepar
tnershi
p?A par
tnerbi
ndst
hepar
tner
shi
p
whent
hefol
l
owi
ngrequisi
tesar
epresent:

(
a) Whenhei
sexpressl
yauthor
ized ori
mpl
iedl
yauthori
zed;
(
b) Whenheact
sinbehalfandi
nt henameofthepart
nershi
p.

Whataret he i
nst
ancesofi
mpl
i
ed aut
hor
izat
ion ofapar
tnert
o bi
nd t
he
par
tner
shi
p?
Thefol
l
owing:

(
a) Whent heot herpart
nersdonotobject,alt
hought heyhaveknowledgeof
theact
;
(
b) Whent heactisfor“appar
entl
ycarr
yingoni ntheusualwaythebusiness
ofthepartner
ship.
”(Thisi
sbindingont hebi ndi
ngont hefir
m evenift he
part
nerwasnotauthori
zed,pr
ovidedt
hatt hethir
dpartyi
singoodfai
th)

Whenwi ll
theactofthepar t
nernotbindthepartnershi
p?
a)When,al t
houghf or“apparentl
ycarryi
ngtheusualwayt hebusinessofthe
par
tnershi
p,”st
il
lthepartnerhasinfactnoauthori
tyandthe3rdpersonsknow
t
hatthepar t
nerhasnoaut hori
ty.
b)When the actisnotf orappar ent
lycarr
ying on inthe usualwayoft he
par
tnershi
pandt hepartnerhasnoaut hor
it
y.

Howispart
ner
shipt
ortcommitt
ed?
Apar
tner
shipt
orti
scommi t
tedi
nanyoft
hef
oll
owi
ngways:

a.Where,byanywrongfulactoromissionofanypart
neract i
ngintheordinary
cour
seofthebusi
nessofthepartnershi
porwithauthori
tyofhisco-par
tners,
l
ossorinj
uryi
scausedtoanyperson,notbeingapartnerinthepart
nership;

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b.Wher eonepar tneractingwi thi
nthescopeofhi sappar
entauthori
tyrecei
ves
moneyorpr opertyofat hir
dper sonandmi sappl
i
esit
;or
c.Wher ethe par t
ner shi
pi nt he course ofitsbusi
nessrecei
vesmoneyor
propert
y ofa t hir
d per son and the money orpr oper
ty so received i
s
misappli
edbyanypar tnerwhi l
ei ti
sinthecustodyofthepar t
nershi
p.(Art
.
1822;Art.1823)

Wher e,byanywr ongfulactoromissi


onofanypar t
neractingintheor di
nary
courseoft hebusinessoft hepartnershi
porwi t
htheaut hor
it
yofhi sco-
part
ners,lossorinjur
yi scausedtoanyper son,notbeingapar tnerinthe
part
nership,oranypenal t
yincur
red,thepartner
shi
pi sli
abletherefortothe
sameext entasthepartnersoact
ingoromi t
ti
ngtoact.(Ar
t1822NCC)

Whoshallbechargedli
abl
ef orpar
tner
shiptor
t?
Allpar
tner
s areliabl
e sol
idari
l
y withthe part
nershi
pforany penal
ty or
damagearisi
ngfr
om apar t
nershi
ptort
.(Art
.1824)

Cant hepar tnership behel dl i


ablef orthewr ongfulactoromi ssionofa
part
nerevent hought heot herpar tnersdi dnotpar ti
cipateinsuchactor
omission?
Thel aw expr esslyprovidest hatthepar t
ner shi
pisli
ablef orthewr ongfulact
oromi ssionofanypar tneractingint heordinarycourseoft hebusinessofthe
part
ner shipiflossorinjuryresult
st hereby.Thisrul
eremai nstrueevent hough
theotherpar tner sdi
dnotpar ti
cipateinorr atif
y,orhadnoknowl edgeoft he
actoromi ssi
on.

Whataret
her
equi
sit
esforli
abil
i
tyunderArt
icl
e1822?
Thef
oll
owi
ngaret
herequisi
tesforl
i
abil
i
tyunderArt
icl
e1822:

1) Thepartnermustbegui
lt
yofawrongfulactoromissi
on;and
2) Hemustbeact ingint
heordi
narycourseofbusinessorwit
htheaut
hor
it
y
ofhi
sco-
par t
ner
sevenift
heacti
snotconnectedwi t
hthebusi
ness.

Whatar ether
equisit
espr escribebylaw i
nor derthatapar tnershi
pmaybe
hel
dliabl
etoathi
rdper sonfort heactofoneofthepar t
ners?
I
tmustbe obser ved thatt he actofone oft he partnersf orwhi
ch a
part
nershi
pmaybehel dli
able,mayconst it
uteeit
heracont ractualobl
i
gati
on
(Ar
t1816,NCC)oranobl igationari
singfr
om acr iminaloff
enseoraquasi -
del
i .(
ct Art
s1822,1823,1824,NCC. )

I
nthecaseofacont
ract
ual
obl
i
gat
ion,t
hef
oll
owi
ngr
equi
si
tesmustconcur
:

1
) t
hecontr
actmustbeent
eredint
oint
henameandf
ort
heaccountoft
he
par
tner
shi
pandunderi
tssi
gnat
ure;

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2) t
hepar
tnermustbeaut
hor
izedt
oactf
ort
hepar
tner p.(
shi Art1816,NCC)

I
nt hecaseofanobl i
gationari
si
ngfrom acriminalof
fenseoraquasi-
deli
ct,
theonlyrequi
sit
eprescri
bedbyt hel
awisthattheactmustbeper f
ormedby
apar t
nerinntheordi
nar ycour
seofthebusinessofthepartner
shi
pwi t
hthe
authori
tyofhi
sco-partner.(
s Ar
t1822,NCC)

Whencant hefir
m andtheot herpartner
snotbehel dli
able?
a)I
ft he wrongfulactoromi ssi
on was notdone wi thinthe scope oft he
par tner
ship busi
nessand f ori t
sbenef i
torwi ththe author
it
yoft he co-
par tner
s.
b)I
ft heactoromi ssionwasnotwr ongful
c)I
ft heactoromi ssion,al
thoughwr ongful
,didnotmaket hepart
nerconcerned
l
iabl ehimself
.
d)I
ft he wrongfulactoromi ssion wascommi t
ted af
terthe f
irm had been
dissolvedandsamewasnoti nconnecti
onwiththeprocessofwindingup.

Basedont heprincipleofmut ualagency,isthepartnershi


pliablefortort
s
commi tt
edbyapar tner?
Basedi nt hesai
dpr inciple,t
hepart
nershi
porever ymemberofapar tnershi
p
i
sliablefortort
scommi t
tedbyoneoft hemember sactinginthescopeoft he
fi
rm business,alt
hought heydonotparti
cipat
ein,rat
if
yorhaveknowl edgeof
such torts.Such liabili
tyisnotdependenton t he personalwr ong ofthe
i
ndividual memberoft hepartner
shi
pagainstwhichtheliabi
li
tyi
sasser t
ed.

Whati sthe testto determine whetherornott he othermember sofa


part
ner shi
pareliabl
easaj ointt
ort
-feasor
stoget
herwiththeguil
typartner
?
Thet estoftheliabi
l
it
yisbasedonadet ermi
nati
onoft hequesti
onwhet her
thewr ongwascommi tt
edi nbehalfofandwi t
hinthereasonablescopeof
businessofthepar t
nership.Ifi
twassocommi tt
ed,thepar t
ner
sar el
iableas
j
ointtort-f
easor.

Cant hepar t
ner ship best i
l
lheldl iabl
ef ort hewr ongf
ulactofoneofi t
s
partnereveni ft helatteractedout sidetheagencyorcommonbusi nessof
thepar tnership?
Ifthe i njur
yr esultsfrom a want on orwi l
l
fulactofone oft he parti
es
commi tt
edout si
det heagencyorcommonbusi ness,t
hent hepersondoing
theactandcausi ng theinjur
yi sal oner esponsibl
e,unlesstheactwhi ch
const i
tutedt het ortwasaut hori
zedbyt hemember soft hepartner
shipor
subsequent l
yr ati
fi
edbyt hem,theacti t
selfhavingbeendonei ntheirbehal
f
nd
andi nterest.(See40Am.Jur261- 262;Ironv.Sauve,27Wash( 2 )562)

Ar
t1823pr
ovi
desthatt
hepart
nershi
pisboundtomakegoodt
heloss:
1
)Wher eoneofthepart
neract
ingwithi
nthescopeofhi
sapparentaut
hor
it
y

Ci
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recei
vesmoneyorpr opert
yofat hi
rdpersonandmisappli
esit;
2)Wher ethe par
tnershi
pint he course ofit
sbusinessreceivesmoneyor
propert
y ofa thir
d person and the money orpr opert
y so r ecei
ved i
s
misappli
edbyanypar t
nerwhil
eitisi
nthecustodyofthepartnershi
p.

Whydoest helaw provideforsol


idaryliabi
li
tyi
ncasesfal
li
ngunderAr t1
822
and1823?
The obli
gati
on ofpar t
nerstot hir
d per sons i
s sol
i
dary because t
he law
prot
ectsthelat
ter,whoi ngoodf ai
thr eli
edupont heaut
horit
yofapar tner,
whethersuchauthori
tyi
sr eal
orappar ent.(MunasquevCA139SCRA533)

I
V. DI
SSOLUTI
ON–Ar
t.1
830

Whatar ethet hreefi


nal
stagesofapart
nershi
p?
Thet hreefinal st
agesofapartner
shi
pare:
(1)dissolut
ion;
(2)wi ndi
ngup;and
(3)termination.

Thedissolut
ionofapar t
nershipisthechangei nt her el
ati
onofthepar tners
causedbyanypar t
nerceasi ngtobeassoci at
edi nt hecarryi
ngonoft he
ness.(
busi Art1828,NCC)Thewi ndingupr eferstot heprocessofli
quidat i
ng
part
nershi
paf f
airs.Ter minat
ion,i
npoi ntoftime,r eferstothatmomentwhen
part
nershi
p af f
airs ar e wound up.The par t
nership,although dissolved
conti
nue to existand i t
sl egalper sonali
tyi sr etai
ned atwhi ch time i t
completes the wi nding-up ofi ts affai
rs,including the parti
ti
oni
ng and
di
str
ibuti
onofthenetpar tnershi
passet stothepar tners.

Definedissolut
ionofpartner
ship.
Dissolut
ion ofapar tnershi
pist he change i
nt he r
elat
ion ofthe par
tner
s
caus ed byanypar t
nerceasing to be associat
ed inthe carr
ying on t
he
businessofthepar t
nership(Ar
t.1828)

Dissoluti
on ist he change i
nt he r
elat
ion oft he part
ner
scaused byany
partnersceasi ngt obeassociatedinthecar r
yingonoft ness.(
hebusi Ar
t
1828)I ti
st hatpointi
ntimewhent hepartnersceaset ocar
ryonthebusi
ness
together.Itrepresent
sthedemiseofapar tnership.(
68CJS842)

Whatiswindi
ngup?
Windi
ngupi sthepr
oces
sofset
tl
ingt
hebusi
nessorpar
tner
shi
paf
fai
rsaf
ter
di
ssol
uti
on.

Whatist
ermi
nat
ion?
Ter
minat
ioni
sthatpoi
nti
nti
mewhenal
lpar
tner
shi
paf
fai
rsar
ecompl
etel
y

Ci
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woundupandf
inal
l
yset
tl
ed.I
tsi
gni
fi
est
heendoft
hepar
tner
shi
pli
fe.

Whatistheprincipalsigni
fi
canceofdissol
uti
on?
Theprinci
palsignif
icanceofdissol
uti
onisthat,t
hereaft
er,nonewpar tner
shi
p
busi
ness shoul d be under t
aken,butaf f
airs shoul
d be l i
quidat
ed and
di
str
ibuti
onmadet ot hoseenti
tl
edtothepar t
ners’ .(Test
ateEstat
eof
Motav.Serra,47Phi l464)

I
st he par tnership ter
minated upon di ssol
uti
on? Or, Does di ssol
uti
on
ter
mi nat
et hepar tnershi
p?
The dissolution ofa par t
nershi
p mustnotbe under stood to mean i t
s
ext
inguishment .Thepartnershipcont
inuesunti
lthewindi
ngupi scompl eted.
Thusdi ssolution ref
erstot he change in par
tnershi
prel
ation and nott he
actualcessat i
onoft hepartnershi
pbusiness.

No.On dissol
uti
on,the par
tnershi
pisnoteter
minat
ed. The part
nershi
p
conti
nuest
oexistforthepurposeofwindi
ngupofpartner
shi
paffai
rs.(Ar
t.
1829)

Whatarethecausesofdi
ssol
uti
onofapar
tner
shi
p?
Di
ssol
uti
oniscaused:

1
)Wi t
houtviolat
ionoftheagreementbet weenthepar t
ners
:
(
a)Byt heterminati
onoft hedefini
tet erm orpart
icul
arundertaki
ngspecif i
edin
theagreement ;
(
b)Byt heexpr esswillofanypar tner ,whomustacti ngoodf ai
th,whenno
defi
niteterm orpart
icul
arundertakingisspeci
fi
ed;
(
c)Byt heexpresswillofallt
hepar tnerwhohavenotassi gnedt hei
rint
erestsor
suffer
edt hem tobechar gedf ort hei
rseparatedebtseitherbeforeoraf t
er
theterminati
onofanyspeci f
iedterm orparti
cularundert
aking;
(
d)Byt heexpulsionofanypar tnerf r
om thebusinessbonaf i
deinaccor dance
withsuchapowerconf err
edbyt heagreementbet weenthepar t
ners.

2)I
n cont ravent i
on of t he agr eement bet ween t he par tners wher e t he
cir
cumst ancesdonotper mitdi ssoluti
onunderanyot herprovisi
onoft his
art
icle,byt heexpr esswi l
lofanypar tneratanyt i
me.
3)Byanyeventwhi chmakesi tunlawf ulforthebusi nessoft hepartnershi
ptobe
carri
edonorf orthemember stocar ryitoninpar t
ner ship.
4)Whenaspeci f
ict hi
ng,whi chapar tnerhadpr omi sedt ocont ri
butetot he
partnership,per i
shesbef oret hedel i
very,inanycasebyt helossoft hething,
whent hepar tnerwhocont r
ibutedi thavingr eservedt heowner shipthereof,
hasonl yt r
ansf er
redt othepar t
nershiptheuseorenj oymentoft hesame;but
thepar tnershipshal lnotbedi ssolvedbyt helossoft het hi
ngwheni toccur s
aft
ert hepar tnershiphasacqui r
edt heowner shi
pt her eof:

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5)Bythedeathofanypartner
;
6)Bytheinsol
vencyofanypartnerorofthepar
tner
shi
p;
7)Bycivi
li
nter
dict
ionofanypartner
;
8)Bythedecreeofcourtunderthefol
lowingar
ti
cl
e(Ar
t.1
830)

Dot her i
ghtsandpower softhepar tnersandtheexistenceofthepart
ner
ship
ter
mi nateupondi ssol
uti
on?
Thet erm“ dissoluti
on”isthusdescr ipti
veoft hatchangei nthepart
ner
ship
rel
ationwhi chul timat
elyculminatesi ni t
ster
mi nat
ion.Dissol
uti
onisnotin
i
tselfat erminationoft hepartner ship oroft heri
ghtsand power softhe
partners,formanyoft heseper sistdur i
ng t
hewi nding up pr
ocesswhich
fol
lowsdi ssolut
ion.(40Am Jur.291. )

Whati stheef f
ectofdi ssolut
ionofthepar tnershi
p?
The dissoluti
on oft he partnershi
p affects onlyfut
ure obli
gati
ons oft he
business,and as t o pastt ransacti
ons the par t
ner
shi
p cont i
nues unt i
lit
sat
isfi
esal lit
spr e- exist
ingobli
gations.Dissoluti
onofpartnershi
pdoesnot
abrogatei t
scont racts,whichcont i
nueunt ilperf
ormedorot herwi
sebecome
operati
ve.Di ssoluti
onhasnoef f
ectondebt sduef rom thepar tnershi
pt o
thi
rdpar t
iesexceptt hatpart
nersmaynotactf oreachotheranyf urthert
han
mayj oi
ntdebt ors.

LI
MITEDPARTNERSHI
P

A.DEFI
NITI
ON

1
.DefineaLimitedpart
nership?
Ali
mitedpartner
shi
pi sonef ormedbyatl
eastonegeneralpar
tnerandone
l
imi
tedpar t
ner,butthelimitedpart
nerassuchshal
lnotbeboundbyt he
obl
i
gationsofthepar
tnershipbeyondhi
scapi
tal
cont
ri
buti
on.(Ar
t.1843)

2.Whatar
ethechar
act
eri
sti
cfeat
uresofal
i
mit
edpar
tner
shi
p?

Theyar ethef oll


owi ng:
1.A l i
mited par t
ner shi
p i s formed by compl i
ance wi t
h t he st at
utory
requir
ement s;
2.Thereshoul dbeoneormor egener alpartnerswhomanaget hebusi nessand
areli
ableaf t
erpar tner
shipassetshavebeenexhaust edtotheext entoftheir
personal propertyforobl i
gati
onsoft hepar tner
shi
p;
3.Thereshoul dbeoneormor el
imitedpar tnerswhocont ri
butet oit
scapi tal
,
shareinthepr of
its,butdonott akepar tinmanagementandar enotl i
ablefor
theobligationsoft hepar t
nershi
ptot heext entoft
heirpersonalproperty.
4.The par t
ner shi
p debt sar e sat
isf
ied fi
rstf orm t
he partnershi
p asset sand
subsidi
arilyfrom theper sonalpr
oper tyofthegener alpar
tners.

Ci
vi
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ewNot
es Page1
09
B.HOW LI
MITEDPARTNERSHIPISFORMED/AMENDED
Whatar
etherequi
rement
stof
orm al
i
mit
edpart
ner
shi
p?

Theyar
easf
oll
ows:

1.Thepar tner smustsi gnandsweart oacer ti


fi
cat ewhi chshal lstate:
a. Thenameoft hepar tnership,addi ngtheret othewor d“Li
mi ted”;
b. Thechar acteroft hebusi ness ;
c. Thel ocationoft hepr incipal placeofbusi ness;
d.The name and pl ace ofr esi
dence ofeach member ;gener aland l imited
part
ner sbei ngr espect i
velydesi gnat ed;
e.t hetermf orwhi cht hepar tnershipi st oexist
f. Theamountofcashandadescr i
ptionofandt heagr eedval ueoft heot her
proper t
ycont ributedbyeachl imitedpar t
ner ;
g.Theaddi ti
onalcont ributions ,i
fany,t obemadebyeachl imit
edpar tnerand
theti
mesatwhi chorevent sont hehappeni ngofwhi cht heyshal lbemade;
h.Thet i
me,i fagr eedupon,whent hecont ri
butionofeachl i
mi t
edpar tnerist o
beret urned.
i
.t heshar eoft hepr ofitsort heot hercompensat ionbywayofi ncomewhi ch
eachoft helimi t
edpar t
nershal lrecei vebyr easonofhi scompensat ion;
j
.t heright,ifgiven,ofal imitedpar tnert osubst i
tuteanassi gneeascont ri
butor
i
nhispl ace,andt het ermsandcondi ti
onsoft hesubst i
tution.
k.Ther i
ght ,ifgi
ven,oft hepar t
nerst oadmi tadditionallimitedpar t
ner;
l
.t heri
ght ,ifgiven,ofoneormor eoft helimit
edpar tners,ast ocont r
ibut i
onsor
ascompensat ionbywayofi ncome,andt henat ureofsuchpr iori
ty;
m.Ther ight,ifgiven,oft her emai ni nggener alpar tnerorpar tnerst ocont i
nue
thebusi nessont hedeat h,civi
l i
nter dict
ion,insanityori nsolvencyofagener al
part
ner ;and
n.Ther i
ght ,ifgiven,ofal imitedpar tnertodemandandr eceivepr oper tyother
thancashi nret ur
nf orhi scont ri
but i
on.

2.Fi
li
ngf
orr ecor
dt hecer
tif
icat
eint
heof
fi
ceoft
heSecur
it
iesandExchange
Commissi
on.(Art
.1844)

Must the certi


fi
cat
e of li
mited par
tner
ship cont
ain al
lthe r
equisi
tes
enumeratedabove?
Notnecessari
l
y.Whatisrequir
edissubst
anti
alcompl
iancei
ngoodfai
thwith
theaboverequir
ements
.(Art
.1844)

Whatist heeff
ectofnon-compliancewitht
hest
atutor
yprovisi
onsgover
ning
theformati
onofal i
mit
edpartnershi
p?
Thepar t
nershi
pf or
medisnotal imit
edpart
ner
shipbutshall
beconsider
eda
generalpart
nershi
pwhereallthepartner
sar
epersonal
lyl
iabl
e.

Ci
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ewNot
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10
Whenshall
thecert
if
icatebeamended?
Anychangeinthepar t
nershi
pwhichdoesnotbri
ngaboutadissol
uti
onwi
l
l
caus
etheamendmentoft hecert
if
icat
easint
hefol
lowi
ngcases:

1.Thenameoft hepar tner shipi schanged;


2.Achangei ntheamountorchar act erofthecont r
ibuti
onofanyl i
mit
edpar tner;
3.Aper sonsi ssubst it
ut edasal i
mi tedpar t
ner ;
4.Anaddi tional li
mi tedpar tneri sadmi t
ted;
5.Anewgener al par t
neri sadmi tt
ed;
6.Agener alpar tnerr etires,di es,becomesi nsolventorinsane,orissentenced
toaci vilinter dicti
onandt hebusi nessi scont i
nuedunderanagr eementt o
thatef fectst atedi nt hecer t
ifi
cat e,orwi t
ht heconsentofal lt
hepartners;
7.Thechar acteroft hebusi nessi schanged;
8.Ther eisaf alseorer roneousst atementi nthecer tif
icat
e;
9.Thet i
mest at edi nt hecer ti
ficatef orthedi ssolut
ionoft hepartner
shiporf or
ther eturnoft hecont ributionhavebeenchanged;
10.
At imei sf i
xedf orthedi ssolutionorf orther eturnofacont r
ibut
ion,wher e
origi
nal lynot i
mehasbeenspeci fiedint hecer ti
fi
cate.(Art
.1864)

Whataretherequi
si
tesf
ort
heamendmentoft
hecer
ti
fi
cat
e?
Theyare:

1.The amended cer tifi


cate mustcont ai
nt he provi
sions requi
red ofany
cert
if
icateoflimit
edpar tner
ship.
2.Theamendedcer t
if
icatemustsetfort
hclearl
ythechangeorchangesmade.
3.Theamendedcer ti
ficatemustbesi gnedandswor nt obyal lt
hepar tner
s
i
ncludingt hesubsti
tutedli
mitedpart
nerorthenewl imitedpart
nerorthenew
generalpar t
nerasthecasemaybe.
4.The amended cer t
ifi
cate mustbe fi
led wi
tht he Securit
iesand Exchange
commi ssion.(Ar
t.1865)

Incaseofcancel
l
ati
onoft
hecert
if
icat
ewhoshal
lsi
gnsuch?
Thewr i
ti
ngtocancelt
hecer
ti
fi
catemustbesi
gnedbyallt
hepar
tner
s Ar
.( t
.
1865).

Whoshal
lexecut
ethewri
ti
ngtoeit
heramendorcancel
thecer
ti
fi
cat
e?
I
tshal
lbethepart
nerdesi
gnat
edinthecer
ti
fi
cat Ar
e.( t
.1865)

Whatistheprocedur
etobet akenbyapar tnerwhodesi
resthecancellat
ion
oramendmentofacer t
if
icateintheeventt hepar
tnerdesignatedint he
par
tner
shiptoexecut
ethewr i
ti
ngref
usetodoso?
Thepersondesi
ri
ngthecancell
ati
onortheamendmentoft hecerti
fi
cat
emay
pet
it
ionthecourttoordersuchcancel l
ati
onoramendmentt hereof
. The

Ci
vi
lLawBarRevi
ewNot
es Page1
11
Cour tthenf i
ndi
ngthatthepeti
ti
onerhasther i
ghttodoso,shallorderthe
Secur i
ti
es and Exchange Commi ssi
on to record the cancel
l
ation or
amendmentoft hecerti
fi
cat
eandi nthelat
tercasewil
lordert
obef i
ledwith
the Secur i
ti
esand Exchange Commi s
sion acert
if
ied copyofthe decree
sett
ingf ortheamendment.(Ar
t.1865)

Whenshallthecert
if
icat
ebeconsi
deredamendedorcancel
led?
Thecert
if
icateisconsider
edamendedorcancell
eduponf i
li
ngf
orr
ecor
d
wit
htheSecurit
iesandExchangeCommissi
onthef
oll
owing:

1.Thewrit
ingeithert
oamendorcancelt
hecerti
fi
catesi
gnedbyall
thepar
tner
s.
2.A cert
if
ied copyoft he or
derofthe cour
tin case t
he amendmentwas
order
edbyt hecourt Ar
.( t
.1865)

C.RI
GHTSANDOBLI
GATI
ONSOFALI
MITEDPARTNER

Whatar
ether
ight
sofapurel
yli
mit
edpart
neri
nali
mi t
edpartnershi
p?
Ali
mit
edpart
nerhast
hesamer i
ght
sasageneralpar
tnerto:

1.Havet hepar tnershipbookskeptatt hepr i


ncipalplaceofbusi nessoft he
partnershi p;
2.Havet her i
ghtt oinspectandcopyanyoft hem atar easonabl ehourona
businessday;
3.Have on demand t rue and f ul
li nf
ormat i
on ofal lt hings af fecti
ng the
partnershi p;
4.have a f or malaccount i
ng ofpar t
nershi
p af f
airswheneverci r
cumst ances
renderi tjustandr easonable;
5.Havedi ssolutionandwi ndingupbydecr eeofcour t
;
6.Andasal i
mi tedpartner,heshal lhavet herighttor ecei vesshar ei nthe
profit
s orot hercompensat ion by way ofi ncome st ipulated f orint he
cert
ifi
cat e pr ovided,thataf tersuch paymenti smade whet herf rom the
propertyoft he par t
nership orthatofa gener alpar t
ner ,the par tnershi
p
assetsar ei nex cessofal lliabi
li
ti
esoft hepar t
nership,exceptl i
abili
ti
esto
l
imitedpar tnersonaccountoft heircontri
buti
onsandt ogener alpar t
ners;
7.Tother eturnofhi scontri
butionasst i
pulatedinthecer t
ifi
cat e;(Art.1851)

Whatarethesi
mil
arr
ight
sofal
i
mit
edpar
tnert
othatofagener
alpar
tner
?
Thesear
e:

1.Ri
ghttohavepar t
nershi
pbookskeptatprinci
pal
placeofbusiness
2.Rightt
oinspect/
copybooksatreasonablehour
3.Rightt
ohaveondemandt rueandful
linf
oofallt
hingsaf
fecti
ngpartner
shi
p
4.Rightt
ohavef ormalaccountofpartner
shipaff
airswhenevercir
cumstances
r
enderitj
ustandreasonable

Ci
vi
lLawBarRevi
ewNot
es Page1
12
5.Righttoaskfordi
ssol
uti
onandwi ndingupbydecreeofcour
t
6.Righttorecei
veshareofpr
ofi
ts/
othercompensati
onbywayofincome
7.Righttorecei
veretur
nofcontri
butionspr
ovi
dedthepartner
shi
passet
sar
ein
excessofall
it
sli
abil
i
ti
es

Whatareotherr
ight
savai
labl
etoali
mitedpar
tner
?Hehasal
sot
her
ightt
o
havedi
ssol
uti
onandwindi
ngupbydecreeoft
hecourt
.

Whenshallali
mitedpart
nerbeheldli
ableasagener alpartner
?
I
ftheli
mit
edpar t
ner,i
naddit
iontotheexist
enceofhisrightsandpowersasa
l
i
mi t
edpartner
,takesparti
nt hecontr
olofthebusiness,meani ngt
akespar
t
i
nmanagement ,heshallbel
iabl
easagener alpar
tner(Art.1848)

Whatar et her ightsandl i


abil
iti
esofaper sonwhoi sbothagener aland
l
imit
edpar tnerinthesamepar tnershi
p?
Hehast hesamer i
ghtsandpower sandsubj ecttothesamer est
rict
ionsofa
generalpartner,asthoughthepar t
nershipisnotal i
mitedpart
nership,hence,
heisliabl
ewi t
hhi sseparat
epr opert
yf ortheobl i
gati
onsoft hepar t
nership.
Hisonlyrightasal i
mitedpar t
neri sasr egardshiscontri
buti
on.Asr egards
hiscontri
butionhei senti
tl
edt ot hesamer i
ghtliketheotherlimi
tedpar t
ner s
tohavear eturnofhiscont r
ibutionasthoughhewaspur el
ylimi
tedpar tner.
(Art
.1853)

Whataret
heli
abi
l
it
iesofal
i
mit
edpar
tnert
othepar
tner
shi
p?
Al
imit
edpart
neri
s:

1.Li
ableforthedif
fer
encebetweenwhathehasactual
lycont
ri
butedandwhat
heissupposedtocontri
but
easstatedint
hecer
ti
fi
cat
e;
2.Li
ableforanyunpaidcontr
ibut
ionwhichheagr
eedinthecer
ti
fi
catet
omake
atafut
uretime;(Ar
t.1858)

AGENCY:

Bythecontr
actofagencyapersonbi
ndshimsel
ftorendersomeservi
ceortodo
somethi
nginr epr
esent
ati
onoronbehal
fofanot
her,wit
htheconsentoraut
hor
it
yof
thel
att
er.(
Art.1868)

Whatarethecharacteri
sti
csofthecont r
actofagency?
Theyare:
1. Consensual –becauset hecontr
actisperf
ectbymereconsent.
2. Pr i
ncipal–becausei tcanstandalone,i
tdoesnotneedanother
cont
ractf
oritt
o exi
st.
3. Nomi nat e–becaus eithasaspecifi
cnameundert heCi
vil
Code
4. Uni l
ateral(