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ESSENTIAL ELEMENTS OF A TAX

1. It is an enforced contribution.
2. It is generally payable in money.
3. It is proportionate in character.
4. It is levied on persons, property, or the exercise of a right or privilege
(Excise tax).
5. It is levied by the State which has jurisdiction over the subject or object
of taxation.
6. It is levied by the law-making body of the State.
7. It is levied for public purpose or purposes.

PURPOSES OF TAXATION

1. Revenue of fiscal: The primary purpose of taxation on the part of the
government is to provide funds or property with which to promote the
general welfare and the protection of its citizens and to enable it to
finance its multifarious activities.

2. Non-revenue or regulatory: Taxation may also be employed for purposes
of regulation or control. e.g.:

a) Imposition of tariffs on imported goods to protect local industries.

b) The adoption of progressively higher tax rates to reduce inequalities in
wealth and income.

c) The increase or decrease of taxes to prevent inflation or ward off
depression.
PAL v. Edu, 164 SCRA 320
The legislative intent and purpose behind the law requiring
owners of vehicles to pay for their registration is mainly to raise funds for
the construction and maintenance of highways and, to a much lesser
degree, pay for the operating expenses of the administering agency. It is
possible for an exaction to be both a tax and a regulation. License fees are
charges, looked to as a source of revenues as well as means of regulation.
The fees may properly be regarded as taxes even though they also serve
as an instrument of regulation. If the purpose is primarily revenue, or if
revenue is at least one of the real and substantial purposes, then the
exaction is properly called a tax.

Tio v. Videogram, 151 SCRA 208

PD 1987 which created the Videogram Regulatory Board also
imposed a 30% tax on the gross receipts payable to the local government.
SC upheld the validity of the law ruling that the tax imposed is not only a
regulatory but also a revenue measure prompted by the realizations that
earnings of videogram establishments of around P600 million annually
have not been subject to tax, thereby depriving the government of an
additional source of revenue. It is a user tax imposed on retailers for every
video they make available for public viewing. The 30% tax also served a
regulatory purpose: to answer the need for regulating the video industry,
particularly the rampant film piracy, the flagrant violation of intellectual
property rights, and the proliferation of pornographic video tapes.

Caltex v. Commissioner, 208 SCRA 755

Taxation is no longer a measure merely to raise revenue to
support the existence of government. Taxes may be levied with a
regulatory purpose to provide means for the rehabilitation and stabilization
of a threatened industry which is affected with public interest as to be
within the police power of the State. The oil industry is greatly imbued
with public interest as it vitally affects the general welfare.

SUMPTUARY PURPOSE OF TAXATION
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More popularly known as the non-revenue or regulatory purpose
of taxation. While the primary purpose of taxation is to raise revenue for
the support of the government, taxation is often employed as a devise for
regulation by means of which certain effects or conditions envisioned by
the government may be achieved.

For example, government may provide tax incentives to protect
and promote new and pioneer industries. The imposition of special duties,
like dumping duty, marking duty, retaliatory duty, and countervailing duty,
promote the non-revenue or sumptuary purpose of taxation.

THEORY AND BASIS OF TAXATION

The power of taxation proceeds upon the theory that the
existence of government is a necessity; that it cannot continue without
means to pay its expenses; and that for these means, it has a right to
compel all its citizens property within its limits to contribute.

The basis of taxation is found in the reciprocal duties of protection
and support between the State and its inhabitants. In return for his
contribution, the taxpayer received benefits and protection from the
government. This is the so called Benefits received principle.

Taxation has been defined as the power by which the sovereign
raises revenue to defray the necessary expenses of government. It is a
way of apportioning the cost of government among those who in some
measure are privileged to enjoy the benefits and must therefore bear its
burden, [51 Am. Jur. 34].

The power of taxation is essential because the government can
neither exist nor endure without taxation. Taxes are the lifeblood of the
government and their prompt and certain availability is an imperious
need, [Bull v. United States, 295 U.S. 247, 15 APTR 1069,
1073]. The collection of taxes must be made without any hindrance if the
state is to maintain its orderly existence.

Government projects and infrastructures are made possible
through the availability of funds provided through taxation. The
governments ability to serve and protect the people depends largely upon
taxes. Taxes are what we pay for a civilized society, [Commissioner v.
Algue, 158 SCRA 9].


LIFEBLOOD DOCTRINCE

The lifeblood theory constitutes the theory of taxation, which
provides that the existence of government is a necessity; that government
cannot continue without means to pay its expenses; and that for these
means it has a right to compel its citizens and property within its limits to
contribute.

In Commissioner v. Algue, the Supreme Court said that taxes
are the lifeblood of the government and should be collected without
necessary hindrance. They are what we pay for a civilized society. Without
taxes, the government would be paralyzed for lack of motive power to
activate and operate it. The government, for its part, is expected to
respond in the form of tangible and intangible benefits intended to
improve the lives of the people and enhance their moral and material
values.

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By enforcing the tax lien, the BIR availed itself of the most
expeditious way to collect the tax. Taxes are the lifeblood of the
government and their prompt and certain availability is an imperious
need,[CIR v. Pineda, 21 SCRA 105].

The government is not bound by the errors committed by its
agents. In the performance of its governmental functions, the State
cannot be estopped by the neglect of its agents and officers. Taxes are
the lifeblood of the nation through which the government agencies
continue to operate and with which the state effects its functions fro the
welfare of its constituents. The errors of certain administrative officers
should never be allowed to jeopardize the governments financial
position, [CIR v. CTA, 234 SCRA 348].

The BIR is authorized to collect estate tax deficiency through the
summary remedy of levying upon the sale of real properties of a decision
without the cognition and authority of the court sitting in probate over the
supposed will of the decedent, because the collection of the estate tax is
executive in character. As such, the estate tax is exempted from the
application of the statute on non-claims, and this is justified by the
necessity of government funding, immortalized in the maxim Taxes are
the lifeblood of the government and should be made in accordance with
law, as any arbitrariness will negate the very reason for government
itself, [Marcos II v. CA, 273 SCRA 47].

Taxes are the lifeblood of the government and so should be
collected without unnecessary hindrance. Philexs claim that it had no
obligation to pay the excise tax liabilities within the prescribed period since
it still has pending claims for VAT input credit/refund with the BIR is
untenable, [Philex Mining Corporation v. CIR, 294 SCRA 687]

Illustrations of Lifeblood theory

1. Collection of taxes cannot be enjoined by injunction.

2. Taxes could not be the subject of compensation or set off.

3. A valid tax may result in the destruction of the taxpayers property.

4. Taxation is an unlimited and plenary power.

NECESSITY THEORY

Taxation as stated in the case of Phil. Guaranty Co., Inc. v.
Commissioner [13 SCRA 775], is a power predicated upon necessity. It
is a necessary burden to preserve the States sovereignty and a means to
give the citizenry an army to resist aggression, a navy to defend its shores
from invasion, a corps of civil servants to serve, public improvements for
the enjoyment of the citizenry, and those which come within the States
territory and facilities and protection which a government is supposed to
provide.

BENEFITS RECEIVED PRINCIPLE

This theory bases the power of the State to demand and receive
taxes on the reciprocal duties of support and protection. The citizen
supports the State by paying the portion from his property that is
demanded in order that he may, by means thereof, be secured in the
enjoyment of the benefits of an organized society. Thus, the taxpayer
cannot question the validity of the tax law on the ground that payment of
such tax will render him impoverished, or lessen his financial or social
standing, because the obligation to pay taxes is involuntary and
compulsory, in exchange for the protection and benefits one receives from
the government.
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In return for his contribution, the taxpayer receives the general
advantages and protection which the government affords the taxpayer
and his property. One is compensation or consideration for the other;
protection for support and support for protection.

However, it does not mean that only those who are able to and do
pay taxes can enjoy the privileges and protection given to a citizen by the
government.

In fact, from the contribution received, the government renders
no special or commensurate benefit to any particular property or person.
The only benefit to which the taxpayer is entitled is that derived from the
enjoyment of the privilege of living in an organized society established and
safeguarded by the devotion of taxes to public purpose. The government
promises nothing to the person taxed beyond what may be anticipated
from an administration of the laws for the general good, [Lorenzo
v. Posadas].

Taxes are essential to the existence of the government. The
obligation to pay taxes rests not upon the privileges enjoyed by or the
protection afforded to the citizen by the government, but upon the
necessity of money for the support of the State. For this reason, no one is
allowed to object to or resist payment of taxes solely because no personal
benefit to him can be pointed out as arising from the tax, [Lorenzo
v. Posadas].
DOCTRINE OF SYMBIOTIC RELATIONSHIP

This doctrine is enunciated in CIR v. Algue, Inc. [158 SCRA
9], which states that Taxes are what we pay for civilized society. Without
taxes, the government would be paralyzed for lack of the motive power to
activate and operate it. Hence, despite the natural reluctance to surrender
part of ones hard-earned income to the taxing authorities, every person
who is able must contribute his share in the burden of running the
government. The government for its part, is expected to respond in the
form of tangible and intangible benefits intended to improve the lives of
the people and enhance their material and moral values.

What is the scope of the power to tax?

The power of taxation is the most absolute of all powers of the
government [Sison v. Ancheta 130 SCRA 654]. It has the broadest
scope of all the powers of government because in the absence of
limitations, it is considered as unlimited, plenary, comprehensive and
supreme.
However, the power of taxation should be exercised with caution
to minimize injury to the proprietary rights of the taxpayer. It must be
exercised fairly, equally, and uniformly, lest the tax collector kill the hen
that lays the golden egg [Roxas v. CTA, 23 SCRA 276].

When is taxation considered as an implement of police power?

In Walter Lutz v. J. Antonio Araneta, 98 Phil 148, the SC
upheld the validity of the tax law increasing the existing tax on the
manufacture of sugar. The protection and promotion of the sugar
industry is a matter of public concern; the legislature may determine
within reasonable bounds what is necessary for its protection and
expedient for its promotion. If objective and methods alike are
constitutionally valid, there is no reason why the state may not levy taxes
to raise funds for their prosecution and attainment. Taxation may be made
the implement of the states police power.

In Tio v. Videogram Regulatory Board, 151 SCRA 208, the
levy of a 30% tax under PD1987, was imposed primarily for answering the
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need for regulating the video industry, particularly the rampant film piracy,
the flagrant violation of intellectual property rights, and the proliferation of
pornographic videotapes, and is therefore valid. While the direct
beneficiaries of the said decree is the movie industry, the citizens are held
to be its indirect beneficiaries.

What is the concept of fiscal adequacy?

That the sources of revenues must be adequate to meet
government expenditures, [Chavez v. Ongpin, 186 SCRA
331].

Legal Profession terms to remember
BAR vs. BENCH
Refers to the whole
body of attorneys and
counselors, collectively,
the members of the
legal profession
Denotes the whole
body of judges

Practice of Law - - Any activity, in or out of court, which requires the
application of law, legal procedure, knowledge, training and experience.
To engage in the practice of law is to give notice or render any kind of
service, which device or service requires the use in any degree of legal
knowledge or skill (Cayetano v. Monsod, 201 SCRA 210).

Bar Admission act by which one is licensed to practice before courts of
a particular state or jurisdiction after satisfying certain requirements such
as bar examinations, period of residency or admission on grounds of
reciprocity after period of years as member of bar of another jurisdiction
(Black Law Dictionary Sixth Edition, p.149).

Lawyer This is the general term for a person trained in the law and
authorized to advise or represent others in legal matters.

Trial Lawyer A lawyer who personally handles cases in court,
administrative agencies or boards which means engaging in actual trial
work either for the prosecution or for the defense of cases of clients.

Practising Lawyer One engaged in the practice of law. All trial lawyers
are practicing lawyers, but not all practicing lawyers are trial lawyers.
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Client One who engages the services of a lawyer for legal advice or for
purposes of prosecuting or defending a suit in his behalf and usually for a
fee.

Attorney-at-Law/Counselor-at-
law/lawyer/attorney/counsel/abogado/boceros that class of persons
who are by license officers of the courts, empowered to appear, prosecute
and defend, and upon whom peculiar duties, responsibilities and liabilities
are developed by law as a consequence (Cui v. Cui, 120 Phil. 729).

Attorney-in-fact an agent whose authority is strictly limited by the
instrument appointing him, though he may do things not mentioned in his
appointment necessary to the performance of the duties specifically
required of him by the power of attorney appointing him, such authority
being necessarily implied. He is not necessary a lawyer.

Counsel de officio - a counsel, appointed or assigned by the court, from
among members of the Bar in good standing who, by reason of their
experience and ability, may adequately defend the accused.

Note: In localities where members of the Bar are not available, the court
may appoint any person, resident of the province and of good repute for
probity and ability, to defend the accused. [Sec. 7 Rule 116, Rules of Court
(1985)]

Attorney ad hoc a person named and appointed by the court to defend
an absentee defendant in the suit in which the appointment is made
(Bienvenu v. Factors Traders Insurance Corp., 33 La. Ann. 209)

Attorney of Record one who has filed a notice of appearance and who
hence is formally mentioned in court records as the attorney of the party.
Person whom the client has named as his agent upon whom service of
papers may be made. (Reynolds v. Reynolds. Cal. 2d580).

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Of Counsel to distinguish them from attorneys of record, associate
attorneys are referred to as of counsel(5 Am. Jur. 261)
Lead Counsel The counsel on their side of a litigated action who is
charged with the principal management and direction of a partys case.
House Counsel Lawyer who acts as attorney for business though
carried as an employee of that business and not as an independent
lawyer.
Amicus curiae a friend of the court, not a party to the action; is an
experienced and impartial attorney invited by the court to appear and help
in the disposition of the issues submitted to it. It implies friendly
intervention of counsel to call the attention of the court to some matters of
law or facts which might otherwise escape its notice and in regard to which
it might go wrong.
Amicus curiae par excellence bar associations who appear in court as
amici curiae or friends of the court. Acts merely as a consultant to guide
the court in a doubtful question or issue pending before it.

Bar Association an association of members of the legal profession.
Advocate The general and popular name for a lawyer who pleads on
behalf of someone else.
Barrrister (England) a person entitled to practice law as an advocate or
counsel in superior court.
Solicitor (England) A person prosecuting or defending suits in Courts of
Chancery.
Solicitor (Philippines) A government lawyer attached with the Office of
the Solicitor General.
Proctor (England) Formerly, an attorney in the admiralty and
ecclesiastical courts whose duties and business correspond to those of an
attorney at law or solicitor in Chancery.
Titulo de Abogado it means not mere possession of the academic
degree of Bachelor of Laws but membership of the Bar after due
admission thereto, qualifying one for the practice of law.







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POWER OF TAXATION

- Does the power to tax include the power to destroy?

The power to tax includes the power to destroy if it is used as an
implement of the police power (regulatory) of the State. However, it does
not include the power to destroy if it is used solely for the purpose of
raising revenue. (ROXAS vs. CTA)
NOTES:
> If the purpose of taxation is regulatory in character, taxation is
used to implement the police power of the state.

> If the power of taxation is used to destroy things, businesses,
or enterprises and the purpose is to raise revenue, the court will come in
because there will be violation of the inherent and constitutional
limitations and it will be declared invalid.
- Taxes distinguished from Licenses
Acebedo Optical Company, Inc. v. CA, 329 SCRA 314, March 31, 2000,
En Banc [Purisima]

The scope of police power has been held to be so comprehensive as
to encompass almost all matters affecting the health, safety, peace, order,
morals, comfort and convenience of the community. Police power is
essentially regulatory in nature and the power to issue licenses or grant
business permits, if exercised for a regulatory and not revenue-raising
purpose, is within the ambit of this power.

The power to grant or issue licenses or business permits must always
be exercised in accordance with law, with utmost observance of the rights
of all concerned to due process and equal protection of the law.

Distinction must be made between the grant of a license or permit to
do business and the issuance of a license to engage in the practice of a
particular profession. The first is usually granted by the local authorities
and the second is issued by the Board or Commission tasked to regulate
the particular profession. A business permit authorizes the person, natural
or otherwise, to engage in business or some form of commercial activity. A
professional license, on the other hand, is the grant of authority to a
natural person to engage in the practice or exercise of his or her
profession.

The Life-Blood Doctrine

Taxes are the life-blood of the Government and their prompt and
certain availability are an imperious need. (CIR v. Pineda, 21 SCRA
105)
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The existence of the government is a necessity; the main source of
the government is taxes. These are the life-blood of the government.
The government will not be able to survive and continue to perform its
functions without taxes. (CIR v. Algue, Inc., 158 SCRA 8)

- Can taxes be subject to off-setting or compensation?

Philex Mining Corporation v. CIR, 294 SCRA 687, Aug. 28,
1998 [Romero]

Taxes cannot be subject to compensation for the simple reason that
the government and the taxpayer are not creditors and debtors of each
other. There is a material distinction between a tax and debt. Debts are
due to the Government in its corporate capacity, while taxes are due to
the Government in its sovereign capacity. It must be noted that a
distinguishing feature of a tax is that it is compulsory rather than a matter
of bargain. Hence, a tax does not depend upon the consent of the
taxpayer. If any taxpayer can defer the payment of taxes by raising the
defense that it still has a pending claim for refund or credit, this would
adversely affect the government revenue system. A taxpayer cannot
refuse to pay his taxes when they fall due simply because he has a claim
against the government or that the collection of a tax is contingent on the
result of the lawsuit it filed against the government.
- Tax Exemptions

Sec. 28[3], Art. VI, 1987 Constitution

SECTION 28. (3) Charitable institutions, churches and parsonages
or convents appurtenant thereto, mosques, non-profit cemeteries, and all
lands, buildings, and improvements, actually, directly, and exclusively used
for religious, charitable, or educational purposes shall be exempt from
taxation.

Sec. 4[3], Art. XIV, 1987 Constitution

SECTION 4. (3) All revenues and assets of non-stock, non-profit
educational institutions used actually, directly, and exclusively for
educational purposes shall be exempt from taxes and duties. Upon the
dissolution or cessation of the corporate existence of such institutions,
their assets shall be disposed of in the manner provided by law.
Proprietary educational institutions, including those cooperatively
owned, may likewise be entitled to such exemptions subject to the
limitations provided by law including restrictions on dividends and
provisions for reinvestment.
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CIR v. CA, 298 SCRA 83, Oct. 14, 1998 [Panganiban]
Laws allowing tax exemption are construed strictissimi juris. Hence,
for the YMCA to be granted the exemption it claims under the abovecited
provision, it must prove with substantial evidence that (1) it falls under the
classification non-stock, non-profit educational institution; and (2) the
income it seeks to be exempted from taxation is used actually, directly,
and exclusively for educational purposes. However, the Court notes that
not a scintilla of evidence was submitted by private respondent to prove
that it met the said requisites.
- Who may grant tax exemptions?

Chavez v. PCGG, 299 SCRA 744, Dec. 9, 1998 [Panganiban]

The power to tax and to grant exemptions is
vested in the Congress and, to a certain extent, in
the local legislative bodies. Section 28(4), Article VI
of the Constitution, specifically provides: No law
granting any tax exemption shall be passed without
the concurrence of a majority of all the members of
the Congress. The PCGG has absolutely no power
to grant tax exemptions, even under the cover of its
authority to compromise ill-gotten wealth cases.

- Tax Treaties; International Juridical Double Taxation

CIR v. S.C. Johnson and Son, Inc., 309 SCRA 87, June 25, 1999, 3
rd
Div.
[Gonzaga-Reyes]
The RP-US Tax Treaty is just one of a number of bilateral treaties
which the Philippines has entered into for the avoidance of double
taxation. The purpose of these international agreements is to reconcile
the national fiscal legislations of the contracting parties in order to help
the taxpayer avoid simultaneous taxation in two different
jurisdictions. More precisely, the tax conventions are drafted with a view
towards the elimination of international juridical double taxation.
International juridical double taxation is defined as the
imposition of comparable taxes in two or more states on the same
taxpayer in respect of the same subject matter and for identical periods.

The apparent rationale for doing away with double taxation is to
encourage the free flow of goods and services and the movement of
capital, technology and persons between countries, conditions
deemed vital in creating robust and dynamic economies. Foreign
investments will only thrive in a fairly predictable and reasonable
international investment climate and the protection against double
taxation is crucial in creating such a climate.

11


PROPERTY

Classification (according to mobility):
1. Immovable real property
2. Movable personal property

Requisites:
1. Utility
2. Individuality/Substantivity
3. Susceptibility of appropriation

Real Rights
1. no passive subject claim against whole world
2. object is corporeal thing (obligation)
3. creates juridical relations through mode & title
4. extinguished through loss or destruction of thing

Personal Rights
1. Passive and active subject
2. Object is an intangible thing (specific thing)
3. Creates juridical relations through title
4. Not extinguished through loss or destruction of thing

Immovable property
1. By nature cannot be moved from place to place because of their
nature
a) land, buildings & all kinds of constructions adhered to soil
b) mine, quarries

2. By incorporation essentially movables but attached to an immovable that
it becomes an integral part of it
a) trees, plants & growing fruits adhered to soil
b) everything attached to an immovable that it will break if separated
c) statues, paintings if intended by owner to be integral part of immovable
d) animal houses if intended by owner to become permanently attached to
immovable

3. By destination movables but purpose is to partake of an integral part of
an immovable
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a) machinery placed by owner of the tenement & tend directly to meet the
needs of such works/industry
b) fertilizers when applied to soil
c) docks & floating structures

4. By analogy/by law contracts for public works, servitude & other real rights
over immovable property

Movable property
1. susceptible of appropriation that are not included in enumeration in
immovable
2. immovable that are designated as movable by special provision of law
3. forces of nature brought under control by science
4. things w/c can be transported w/o impairment of real property where they
are fixed
5. obligations which involve demandable sums (credits)
6. shares of stocks of agricultural, commercial & industrial entities although
they may have real estate
Classification of Movables
1. consumable cannot be utilized w/o being consumed
2. non-consumable

Classification of Property (according to ownership):
1. Public dominion
a) intended for public use
b) intended for public service of state, provinces, cities & municipalities
Characteristics:
a) outside the commerce of men cannot be alienated or leased
b) cannot be acquired by private individual through prescription
c) not subject to attachment & execution
d) cannot be burdened by voluntary easement
2. Private Ownership
a) patrimonial property of state, provinces, cities, municipalities
1. exist for attaining economic ends of state
2. property of public dominion when no longer intended for public use/service
declared patrimonial
b) property belonging to private persons individually or collectively


13


Title II OWNERSHIP

Chapter 1: OWNERSHIP IN GENERAL

Definitions of Ownership
Independent and general right of a person to control a thing particularly in
his possession, enjoyment, disposition, and recovery, subject to no
restrictions except those imposed by the state or private persons, without
prejudice to the provisions of the law.
Power of a person over a thing for purposes recognized by law & within the
limits established by law

Attributes:
1. Jus possidendi right to possess
2. Jus utendi right to enjoy
3. Jus fruendi right to fruits
4. Jus abutendi right to use and abuse
5. Jus disponendi right to dispose
6. Jus vindicandi right to exclude others from possession of the thing
Actions for possession:
1. movable replevin (return of a movable)
2. immovable
a) forcible entry used by person deprived of possession through violence,
intimidation (physical possession, 1 year unlawful deprivation)
b) unlawful detainer used by lessor/person having legal right over property
when lessee/person withholding property refuses to surrender possession
of property after expiration of lease/right to hold property (physical
possession, 1 year from unlawful deprivation)
c) accion publiciana plenary action to recover possession
d) accion reinvindicatoria recovery of dominion of property as owner
7. Principle of self help self defense
Elements:
a) Person exercising rights is owner or lawful possessor
b) There is actual or threatened unlawful physical invasion of his property
c) Use force as may be reasonably necessary to repel or prevent it
Available only when possession has not yet been lost, if already lost resort
to judicial process
May be exercised by 3
rd
person negotiorum gestio
8. Right to enclose or fence w/o detriment to servitude constituted
9. Right to surface & everything under it only as far as necessary for his
practical interest (benefit or enjoyment)
10. Right to hidden treasure found in own property
a) hidden and unknown movables w/c consist of money or precious objects
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b) owner is unknown
c) by chance if property owner is state belongs to finder; also if in
anothers property; the finder must not be trespasser

Limitation on Ownership
1. general limitations for the benefit of the state (eminent domain, police
power, taxation)
2. specific limitations imposed by law (servitude, easements)
3. specific limitations imposed by party transmitting ownership (will, contract)
4. limitations imposed by owner himself (voluntary servitude, mortgages,
pledges)
5. inherent limitations arising from conflicts with other similar rights (contiguity
of property)
6. owner cannot make use of a thing which shall injure/prejudice rights of
3
rd
persons (neighbors)
7. acts in state of necessity law permits injury or destruction of things
owned by another provided this is necessary to avert a greater danger
(with right to indemnity vs. principle of unjust enrichment)
8. true owner must resort to judicial process when thing is in possession of
another; law creates a disputable presumption of ownership to those in
actual possession
a) identify property
b) show that he has better title
Chapter 2: RIGHT OF ACCESSION

Accession owner of thing becomes owner of everything it may produce
or those which may be incorporated or united thereto
1. principle of justice
2. accessory follows the principal
Accession continua accession to products of the thing
Rights of owners: natural, industrial & civil fruits
exception: possession in good faith by another, usufruct, lease,
antichresis
Obligation of owners:
a) Immovables accretion
1. Alluvion - owner of lands adjoining banks of river belongs the accretion
gradually received from effects of the water's current
Requisites:
a. deposit is gradual & imperceptible
b. made through effects of current of water
c. land where accretion takes place is adjacent to banks of river

Rights of riparian owner
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Right to accretion ipso facto no need to make an express act of
possession
2. Avulsion transfer of a known portion of land from one tenement to
another by force of current of waters
Rights of riparian owner
a) Right to portion of land transferred if not claimed by owner within 2 years
(prescription)
b) Right to trees uprooted if not claimed by owner w/in 6 months; subject to
reimbursement for necessary expenses for gathering them & putting them
in safe place
3. Change of river bed
Right of owner of land occupied by new river course
1. Right to old bed ipso facto in proportion to area lost
2. Owner of adjoining land to old bed shall have right to acquire the same by
paying its value value not to exceed the value of area occupied by new
bed
3. Formation of island in non-navigable river
a) owner of margin nearest to islands formed if nearest to it
b) owner of both margins if island is in the middle (divided into halves
longitudinally)
4. building, planting & sowing
General Rule whatever is built, planted or sown belongs to owner of
land; presumption is owner made them at his expense
Exception: contrary is proven
Right of owner of material
1. Right to be indemnified or paid of value of property by owner of land
2. Right to remove materials if he can do so w/o injury to work constructed if
owner has not paid
3. Right to damages and demolition even if with injury to work if owner of land
is in bad faith

Right of owner when another builds, plants or sows in his land: (OWNER &
BUILDER BOTH IN GOOD FAITH)
1. Appropriate as his own after paying for indemnity
2. Oblige the planter, builder to pay for price of land or rent, except when
value of lands is greater than thing built convert to rent

Right of Builder in good faith before payment of indemnity of owner in good
faith
1. Right to retain land & building
2. Right not to be compelled to pay for rent
3. Right of retention ceases when obliged to pay for value of and if he fails to
do so
Right of owner in good faith when builder is in bad faith
1. Right to appropriate what has been built w/o paying indemnity
16

2. Order demolition of building
3. Compel the builder to pay for price of land or rent
4. Right to damages

Right of builder in bad faith when owner is in good faith
Right to be reimbursed for necessary expenses for preservation of
land
Right of Builder in good faith when owner is in bad faith
1. Right to indemnity for value of building
2. Right to damages
3. Right to demolish w/o payment of indemnity

Bad faith on both builder & owner in pari delicto (no cause of action vs.
each other)

Right of 3
rd
person who owns materials
1. Right to be indemnified for value of materials irrespective of good faith or
bad faith of builder or owner; if builder has no property, owner is
subsidiarily liable
2. When builder is in bad faith & owner in good faith & owner compel builder
to remove improvements, owner is not subsidiarily liable
3. When 3
rd
person is paid by builder, builder may demand from landowner
the value of labor & materials
b) Movables
1. Conjunction / adjunction 2 movable things which belong to different
owners are united to form a single object

Test to determine w/c one is the principal:
a. that to w/c the other intended to be united as ornament or for its use of
perfection
b. value
c. volume
Rights:
1. If both are in good faith owner of principal acquired the accessory with
indemnification
2. If both are in good faith may separate them if no injury will be caused; if
value of accessory is greater than principal, owner of accessory may
demand separation even if damages will be caused to the principal
(expenses to be borne by one who caused the conjunction)
3. If owner of accessory is in bad faith owner of accessory with damages to
principal
4. If owner of principal is in bad faith owner of accessory shall have option
of principal paying value of accessory or removal of accessory despite
destruction of principal
17

5. Owner of accessory or principal has right to indemnity when thing adjuncts
w/o his consent may demand that a thing equal is kind, value and price

2. Specification One employs the materials of another in whole or in part on
order to make a thing of a different kind; transformation
Rights:
1. If person who made the transformation is in good faith - he shall
appropriate the thing transformed as his own with indemnity to owner of
material for its value
2. If material is more precious than transformed thing owner of material may
appropriate the new thing to himself after indemnity paid to labor or
demand indemnity for materials
3. If person who made the transformation is in bad faith, owner of material
shall appropriate the work to himself w/o paying maker or demand
indemnity for value of materials & damages
4. If transformed thing is more valuable than material, owner of material
cannot appropriate

3. Commixtion / confusion 2 things of the same or different kinds are mixed
& are not separable w/o injury
Rights:
1. If both owners are in good faith Each owner shall acquire a right
proportional to the part belonging to him (vis-a-vis the value of the things
mixed or confused)
2. If one owner is in bad faith he shall lose the thing belonging to him plus
indemnity for damages caused to owner of other thing mixed with his thing
3. If both in bad faith no cause of action against each other

Chapter 3: QUIETING OF TITLE

Reasons:
1. prevent litigation
2. protect true title & possession
3. real interest of both parties which requires that precise state of title be
known
Action to quiet title
put end to vexatious litigation in respect to property involved; plaintiff asserts
his own estate & generally declares that defendants claim is w/o
foundation
when proper:
1. contract has been extinguished or terminated
2. contract has prescribed
3. remove cloud

Action to remove cloud
18

intended to procure cancellation, delivery, release of an instrument,
encumbrance, or claim constituting a on plaintiffs title which may be used
to injure or vex him in the enjoyment of his title
Cloud any instrument which is inoperative but has semblance of title
Requisites:
1. Plaintiff must have legal or equitable interest
2. Need not be in possession of property
3. Return to defendant all benefits received he who wants justice must do
justice

Chapter 4: RUINOUS BUILDINGS AND TREES IN DANGER OF FALLING

Liability for damages:
1. collapse engineer, architect or contractor
2. collapse resulting from total or partial damage; no repair made owner;
state may compel him to demolish or make necessary work to prevent if
from falling
3. if no action done by government at expense of owner

Title III: CO-OWNERSHIP

Co-ownership
a) plurality of subjects many owners
b) unity of material (indivision) of object of ownership
c) recognition of ideal shares

Causes/Sources:
1. law
2. contracts
3. succession
4. fortuitous event/chance commixtion
5. occupancy 2 persons catch a wild animal
Distinguished from partnership
a) partnership created only by agreement; co-ownership has many sources
b) purpose of partnership is to obtain profit; co-ownership is collective
enjoyment of a thing
c) in partnership there is juridical personality distinct from individuals, none in
co-ownership
d) partnership can be created for more than 10 years, not in co-ownership
e) partners cannot transfer rights w/o consent of other co-partners, not co-
ownership
f) partnership extinguished when partner dies, not in co-ownership
g) distribution of profits in partnerships may be stipulated, this is not flexible in
co-ownership but depends on ideal share/interest
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Rights of co-owners
1. Right to benefits proportional to respective interest;
stipulation to contrary is void
2. Right to use thing co-owned
a. for purpose for which it is intended
b. without prejudice to interest of ownership
c. without preventing other co-owners from making
use thereof
3. Right to change purpose of co-ownership by agreement
4. Right to bring action in ejectment in behalf of other co-
owner
5. Right to compel co-owners to contribute to necessary
expenses for preservation of thing and taxes
6. Right to exempt himself from obligation of paying
necessary expenses and taxes by renouncing his share in the pro-
indiviso interest; but cant be made if prejudicial to co-ownership
7. Right to make repairs for preservation of things can be
made at will of one co-owner; receive reimbursement therefrom;
notice of necessity of such repairs must be given to co-owners, if
practicable
8. Right to full ownership of his part and fruits
9. Right to alienate, assign or mortgage own part; except
personal rights like right to use and habitation
10. Right to ask for partition anytime
11. Right of pre-emption
12. Right of redemption
13. Right to be adjudicated thing (subject to right of others to
be indemnified)
14. Right to share in proceeds of sale of thing if thing is
indivisible and they cannot agree that it be allotted to one of them

Duties/Liabilities
1. Share in charges proportional to respective interest;
stipulation to contrary is void
2. Pay necessary expenses and taxes may be exercised
by only one co-owner
3. Pay useful and luxurious expenses if determined by
majority
4. Duty to obtain consent of all if thing is to be altered even if
beneficial; resort to court if non-consent is manifestly prejudicial
5. Duty to obtain consent of majority with regards to
administration and better enjoyment of the thing; controlling
interest; court intervention if prejudicial appointment of
administrator
6. No prescription to run in favor co-owner as long as he
recognizes the co-ownership; requisites for acquisition through
prescription
a. he has repudiated through unequivocal acts
b. such act of repudiation is made known to other
co-owners
c. evidence must be clear and convincing
7. Co-owners cannot ask for physical division if it would
render thing unserviceable; but can terminate co-ownership
8. After partition, duty to render mutual accounting of
benefits and reimbursements for expenses
9. Every co-owner liable for defects of title and quality of
portion assigned to each of the co-owner
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Rights of 3
rd
parties
1. creditors of assignees may take part in division and object
if being effected without their concurrence, but cannot impugn
unless there is fraud or made notwithstanding their formal
opposition
2. non-intervenors retain rights of mortgage and servitude
and other real rights and personal rights belonging to them before
partition was made
T i t l e V: POSSESSI ON

Possession holding of a thing or enjoyment of a right
1. occupancy actual or constructive (corpus)
2. intent to possess (animus)
How acquired:
a. material occupation possession as a fact
1. physical
2. constructive - tradicion brevi manu (one who
possess a thing short of title of owner lease );
tradicion constitutum possesorium (owner alienates thing but continues to
possess depositary, pledgee, tenant)
cannot be recognized at the same time in 2 different personalities except
co-possession
question arise regarding fact of possession
1. present possessor preferred
2. 2 possessors one longer in possession
3. dates of possession the same one who presents a title
4. both have titles judicial resolution
b. subject to action of our will- possession as a right
1. tradicion simbolica delivering object or symbol of
placing thing under control of transferee (keys)
2. tradicion longa manu pointing out to transferee
the things which are being transferred

c. proper acts and legal formalities established for acquiring
rights donation, sale

What can be subject of possession things or rights which are
susceptible of being appropriated

Degrees of possession:
1. holding w/o title and in violation of right of owner
2. possession with juridical title but not that of owner
3. possession with just title but not from true owner
4. possession with just title from true owner

Classes of ownership:
1. in concept of owner owner himself or adverse possessor
Effects:
21

a. may be converted into ownership through
acquisitive prescription
b. bring actions necessary to protect possession
c. ask for inscription of possession
d. demand fruits and damages from one unlawfully
detaining property

2. in concept of holder usufruct, lessee, bailee
3. in oneself personal acquisition
a. he must have capacity to acquire possession
b. intent to possess
c. possibility to acquire possession

4. in name of another agent; subject to authority and
ratification if not authorized; negotiorum gestio
a. representative has intention to acquire for another
and not for himself
b. person from whom it is acquired has intention of
possessing it

5. in good faith not aware that there exist flaw in title or
mode w/c invalidates it; mistake upon doubtful question of law;
always presumed; it may be interrupted by extraneous evidence
or suit for recovery of property of true owner
6. in bad faith aware of defect

Possession through succession
1. possession of hereditary property is deemed transmitted
w/o interruption from moment of death ( if accepted) and if not
accepted ( deemed never to have possessed the same )
2. one who succeeds by hereditary title shall not tack the
bad faith of predecessors in interest except when he is aware of
flaws affecting title; but effects of possession in good faith shall not
benefit him except from date of death of decedent.

Minors/ Incapacitated
may acquire material possession but not right to possession; may only
acquire them through guardian or legal representatives
Acquisition
1. cannot be acquired through force or intimidation when a
possessor objects thereto resort to courts
2. the following do not affect acts of possession ( not
deemed abandonment of rights ); possession not interrupted
a. acts merely tolerated
b. clandestine and unknown acts
c. acts of violence
Rights of possessor:
1. Right to be respected in his possession; if disturbed
protected by means established by law; spoliation
2. Possession acquired and enjoyed in concept of owner can
serve as title for acquisitive prescription
a. Possession has to be in concept of owner, public,
peaceful and uninterrupted
b. Title short of ownership
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3. Person in concept of owner has in his favor the legal
presumption of just title (prima facie)
4. Possession of real property presumes that movables are
included
5. Co-possessors deemed to have exclusively possessed
part which may be allotted to him; interruption in whole or in part
shall be to the prejudice of all
6. Possessor in good faith entitled to fruits received before
possession is legally interrupted ( natural and industrial gathered
or severed; civil accrue daily )
7. Possessor in good faith entitled to part of net harvest and
part of expenses of cultivation if there are natural or industrial
fruits ( proportionate to time of possession ); owner has option to
require possessor to finish cultivation and gathering of fruits and
give net proceeds as indemnity for his part of expenses; if
possessor in good faith refuses barred from indemnification in
other manner
8. Possessor has right to be indemnified for necessary
expenses whether in good faith or in bad faith; Possessor in good
faith has right of retention over thing unless necessary expenses
paid by owner
9. Possessor in good faith has right to be reimbursed for
useful expenses with right of retention; owner has option of paying
expenses or paying the increase in value of property which thing
acquired by reason of useful expenses
10. Possessor in good faith may remove improvements if can
be done w/o damage to principal thing- unless owner exercises
option of paying; possessor in bad faith not entitled.
11. Possessor in good faith and bad faith may not be entitled
to payment for luxurious expense but may remove them provided
principal is not injured provided owner does not refund the
amount expended
12. Improvements caused by nature or time to inure to the
benefit of person who has succeeded in recovering possession
13. Wild animals possessed while in ones control;
domesticated possessed if they retain habit of returning back
home
14. One who recovers, according to law, possession unjustly
lost is deemed to have enjoyed it w/o interruption

Liabilities/duties of Possessor
1. Return of fruits if in bad faith fruits legitimate possessor
could have received
2. Bear cost of litigation
3. Possessor in good faith not liable for loss or deterioration
or loss except when fraud and negligence intervened
4. Possessor in bad faith liable for loss or deterioration even
if caused by fortuitous event
5. Person who recovers possession not obliged to pay for
improvements which have ceased to exist at time of occupation

Loss of possession:
1. abandonment of the thing renunciation of right; intent to
lose the thing
2. assignment made to another by onerous or gratuitous title
3. destruction or total loss of the thing or thing went out of
commerce
23

4. possession of another if new possession lasted longer
that 1 year ( possession as a fact); real right of possession not lost
except after 10 years



Not lost:
1. Even for time being he may not know their whereabouts,
possession of movable is not deemed lost
2. When agent encumbered property without express
authority except when ratified
3. Possession may still be recovered:
a. Unlawfully deprived or lost
b. Acquired at public sale in good faith with reimbursement
c. Provision of law enabling the apparent owner to dispose as if he is owner
d. Sale under order of the court
e. Purchases made at merchant stores, fairs or markets
f. Negotiable document of title

Possession is equivalent to title
a. possession is in good faith
b. owner has voluntarily parted with the possession of the thing
c. possessor is in concept of an owner
T i t l e VI : USUF RUCT

Usufruct right to enjoy anothers property with correlative duty of
preserving its form and substance
a. things movable/immovable
b. rights provided it is not strictly personal

Kinds:
1. legal - parents over children
2. voluntary contracts, wills
3. mixed prescription
4. total
5. partial
6. simultaneous
7. successive
8. pure
9. conditional
10. With a term

Rights of usufructuary:
1. Right to civil, natural & industrial fruits of property
2. Right to hidden treasure as stranger
3. Right to transfer usufructuary rights gratuitous or onerous; but is co-
terminus with term of usufruct; fruits proportionate at duration of usufruct;
but cant do acts of ownership such as alienation or conveyance except
when property is:
24

a. consumable
b. intended for sale
c. appraised when delivered; if not appraised & consumable return same
quality (mutuum)
4. Right not exempt from execution and can be sold at public auction by
owner
5. Naked owner still have rights but w/o prejudice to usufructuary; may still
exercise act of ownership bring action to preserve
6. Right to fruits growing at time usufruct begins; growing fruits at termination
of usufruct belongs to owner
7. Right to necessary expenses from cultivation at end of usufruct
8. Right to enjoy accessions & servitudes in its favor & all benefits inherent
therein
9. Right to make use of dead trunks of fruit bearing trees & shrubs or those
uprooted/cut by accident but obliged to plant anew
10. Right of usufructuary of woodland ordinary cutting as owner does
habitually or custom of place; cannot cut down trees unless it is for the
restoration of improvement of things in usufruct must notify owner first
11. Right to leave dead, uprooted trees at the disposal of owner with right to
demand that owner should clear & remove them if caused by calamity or
extraordinary event impossible to replace them
12. Right to oblige owner to give authority & furnish him proofs if usufruct is
extended to recover real property or real right
13. Right to necessary expenses
14. Right to introduce useful & luxurious expenses but with no obligation of
reimbursement on part of owner; may remove improvement if can be done
w/o damage
15. Right to set-off improvements against damages he made against the
property
16. Right to administer when property is co-owned; if co-ownership cease
usufruct of part allotted to co-owner belongs to usufructuary not affected
17. Right to demand the increase in value of property if owner did not spend
for extraordinary repairs when urgent & necessary for preservation of thing
Rights of naked owner
1. Alienate thing
2. Cant alter form or substance
3. Cant do anything prejudicial to usufructuary
4. Construct any works Y make any improvement provided it does not
diminish value or usufruct or prejudice right of usufructuary

Obligations of usufructuary:
1. Pay expenses to 3rd persons for cultivation & production at beginning of
usufruct; whose who have right to fruits should reimburse expenses
incurred
2. Generally, usufructuary has no liability when due to wear & tear, thing
deteriorates, obliged to return in that state; except when there is fraud or
negligence, then he shall be liable
25

3. Before entering into usufructuary::
a) Notice of inventory of property (appraisal of movables & description)
b) Posting of security
1. not applicable to parents who are usufructuary of children except when
2
nd
marriage contracted
2. excused allowed by owner, not required by law or no one will be injured
failure to give security: owner may demand that:
a. immovables be placed under administration
b. NI can be converted into registered certificates or deposited in bank
c. Capital & proceeds of sale of movables be invested in safe securities
d. Interest on proceeds or property under admin belong to usufructuary
e. Owner may retain property as administrator w/ obligation to deliver fruits to
usufructuary until he gives sufficient security
f. Effect of security is retroactive to day he is entitled to fruits
4. Take care of property as a good father of family
5. Liable for negligence & fault of person who substitute him
6. If usufruct is constituted on animals duty bound to replace dead animals
that die from natural causes or became prey; if all of them perish w/o fault
but due to contagious disease / uncommon event deliver remains saved;
if perish in part due to accident continue on remaining portion; if on
sterile animals as if fungible replace same kind & quality
7. Obliged to make ordinary repairs wear & tear due to natural use of thing
and are indispensable for preservation; owner may make them at expense
of usufructuary during existence of usufruct
8. Obliged to make expenses due to his fault; cannot escape by renouncing
usufruct
9. Pay legal interest from extraordinary expenses made by owner
10. Payment of expenses, charges & taxes affecting fruits
11. Payment of interest on amount paid by owner charges on capital
12. Obliged to notify owner of act of 3
rd
person prejudicial to rights of
ownership he is liable if he does not do so for damages as if it was
caused through his own fault
13. Expenses, cost & liabilities in suits brought with regard to usufructuary
borne by usufructuary

Obligations of owner
1. extraordinary expenses; usufructuary obliged to inform owner when urgent
is the need to make them
2. expenses after renunciation of usufruct
3. taxes & expenses imposed directly on capital
4. if property is mortgaged, usufructuary has no obligation to pay mortgage; if
attached, owner to be liable for whatever is lost by usufructuary
5. if property is expropriated for public use owner obliged to either replace it
or pay legal interest to usufructuary of net proceeds of the same
26


Extinguishment of usufruct
1. death of usufructuary unless contrary intention appears
2. expiration of period of usufruct
3. merger of usufruct & ownership
4. renunciation of usufructuary express
5. total loss of thing
6. termination of right of person constituting usufruct
7. prescription use by 3
rd
person

loss in part remaining part shall continue to be held in usufruct
usufruct cannot be constituted in favor of a town, Corp or assoc. for more
than 50 years
usufruct constituted on immovable whereby a building is erected - & building
is destroyed right to make use of land & materials
if owner wishes to construct a new building pay usufructuary the value of
interest of land & materials
both share in insurance if both pays premium; if only owner then proceeds
will go to owner only
effect if bad use of the thing owner may demand the delivery of and
administration of the thing with responsibility to deliver net fruits to
usufructuary
at termination of usufruct:
thing to be delivered to owner with right of retention for taxes &
extraordinary expenses w/c should be reimbursed
security of mortgage shall be cancelled
BOOK III. DIFFERENT MODES OF ACQUIRING OWNERSHIP

Different Modes of acquiring ownership:
1) Occupation
2) Donation
3) Prescription
4) Succession
5) Tradition
MODE Proximate cause of ownership ( sales, donation)
TITLE Remote cause of ownership; merely constituted the means
OCCUPATION
1. There should be a corporeal thing (tangible) which must have a corpus
(body) & that thing should have no owner
2. There must be actual occupancy; thing must be subjected to ones
control/disposition
3. There must e an intention to occupy
4. Accomplished according to legal rules
27


What are the things susceptible to occupation?
things that are w/o owner res nullius; abandoned
stolen property cannot be subject of occupation
animals that are the object of hunting & fishing
kinds of animals:
a) wild considered res nullius when not yet captured; when captured
& escaped become res nullius again
b) domesticated animals originally wild but have been captured & tamed;
now belong to their capturer; has habit of returning to premises of owner;
becomes res nullius if they lose that habit of returning & regain their
original state of freedom
c) domestic/tame animals born & ordinarily raised under the care of people;
become res nullius when abandoned by owner
hidden treasure (only when found on things not belonging to anyone)
abandoned movables
Animals:
a) Swarm of bees
- owner shall have right to pursue them to anothers land (owner to identify
latter for damages, if any)
- land owner shall occupy/retain the bees if after 2 days, owner did not
pursue the bees
b.) Domesticated animals
- may be redeemed within 20 days from occupation of another person; if
no redemption made, they shall pertain to the one who caught them
c) Pigeons & fish
- when they go to another breeding place, they shall be owned by the new
owner provided they are not enticed

Movables:
1) Treasure found on anothers property
- consist of (1) money, precious objects & 2) hidden & owner is unknown
- finding must be by chance in order that stranger may be entitled to of
the treasure
2) Movable found w/c is not treasure
- must be returned to owner
- if finder retains the thing found may be charged with theft
- if owner is unknown, give to mayor; mayor shall announce finding of the
movable for 2 weeks in way he deems best
- of owner does not appear 6 months after publication, thing found shall be
awarded to finder
- if owner appears, he is obliged to pay 1/10 of value of property to finder
as price
28

- if movable is perishable or cannot be kept w/o deterioration or w/o
expenses it shall be sold at public auction 8 days after the publication

What cannot be acquired by occupation
Ownership of a piece of land
because when a land is without an owner, it pertains to the state
land that does not belong to anyone is presumed to be public land
but when a property is private and it is abandoned can be object of
occupation
PRESCRIPTION
mode by which one acquires ownership and other real rights thru lapse of
time; also a means by which one loses ownership, rights & actions;
retroactive from the moment period began to run
Kinds:
1. Acquisitive
2. Extinctive

Who may acquire by prescription:
a. person who are capable of acquiring property by other legal modes
b. STATE
c. minors through guardians of personally

Against whom prescription run:
1. minors & incapacitated person who have guardians
2. absentees who have administrators
3. persons living abroad who have administrators
4. juridical persons except the state with regards to property not patrimonial in
character
5. between husbands & wife
6. between parents & children (during minority/insanity)
7. between guardian & ward (during guardianship)
8. between co-heirs/co-owners
9. between owner of property & person in possession of property in concept of
holder

Things subject to prescription: all things within the commerce of men
a. private property
b. patrimonial property of the state

Things not subject to prescription:
1. public domain
2. in transmissible rights
29

3. movables possessed through a crime
4. registered land

Renunciation of prescription:
persons with capacity to alienate may renounce prescription already
obtained but not the right to prescribe in the future
may be express or tacit
prescription is deemed to have been tacitly renounced; renunciation results
from the acts w/c imply abandonment of right acquired
creditors & persons interested in making prescription effective may avail
themselves notwithstanding express or tacit renunciation

PRESCRIPTION OF OWNERSHIP & OTHER REAL RIGHTS

Kinds of Acquisitive prescription
1. ordinary
2. extra-ordinary

Requisites for ordinary prescription:
1. possession in good faith
2. just title
3. within time fixed by law
4 years for movables
8 years for immovables
4. in concept of an owner
5. public, peaceful, uninterrupted

Requisites for extra-ordinary prescription:
1. just title is proved
2. within time fixed by law
10 years for movables
30 years for immovables
3. in concept of an owner
4. public, peaceful, uninterrupted

GOOD FAITH
Reasonable belief that person who transferred thing is the owner & could
validly transmit ownership
Must exist throughout the entire period required for prescription

30

JUST TITLE (TRUE & VALID) must be proved & never presumed
a) Titulo Colorado -
b) Titulo putativo -
title must be one which would have been sufficient to transfer ownership if
grantor had been the owner
through one of the modes of transferring ownership but there is vice/defect
in capacity of grantor to transmit ownership

IN CONCEPT OF OWNER
possession not by mere tolerance of owner but adverse to that of the owner
claim that he owns the property

PUBLIC, PEACEFUL & UNINTERRUPTED
Must be known to the owner of the thing
Acquired & maintained w/o violence
Uninterrupted (no act of deprivation by others) in the enjoyment of property


INTERRUPTION
a) Natural
- through any cause, possession ceases for more than 1 year
- if 1 year of less as if no interruption
b) civil
- produced by judicial summons; except
1. void for lack of legal solemnities
2. plaintiff desist from complaint/allow proceedings to lapse
3. possessor is absolved from complaint
b) express or tacit renunciation
c) possession in wartime

RULES IN COMPUTATION OF PERIOD:
a. Present possessor may tack his possession to that of his grantor or
predecessor in interest
b. Present possessor presumed to be in continuous possession I intervening
time unless contrary is proved
c. First day excluded, last day included


31

TACKING PERIOD
there must be privity between previous & present possessor
possible when there is succession of rights
if character of possession different:
predecessor in bad faith possessor in good faith use extraordinary
prescription
PRESCRIPTION OF ACTIONS
By lapse of time fixed by law
30 years
- action over immovables from time possession is lost
10 years
- mortgage action
- upon written contract
- upon obligation created by law
- upon a judgement
8 years
- action to recover movables from time possession is lost
6 years
- upon an oral contract
- upon a quasi-contract
5 years
- actions where periods are not fixed by law
4 years
- upon injury to rights of plaintiff
- upon a quasi-delict
1 year
- for forcible entry & detainer
- for defamation

Rights not extinguished by prescription:
1. demand right of way
2. abate public /private nuisance
3. declare contract void
4. recover property subject to expressed trust
5. probate of a will
6. quiet title