Documente Academic
Documente Profesional
Documente Cultură
PAGE 1
TABLE OF CONTENT
PAGE 2
TABLE OF CONTENT
PAGE 3
TABLE OF CONTENT
PAGE 4
UP LAW BOC
CIVIL LAW
Adoption ...........................................56
RA 8552 DOMESTIC ADOPTION LAW ..... 57
RA 8043 THE LAW ON INTER-COUNTRY
ADOPTION.................................................. 61
Marriage .............................................15
REQUISITES................................................ 15
EFFECT OF MARRIAGE CELEBRATED
ABROAD AND FOREIGN DIVORCE ............. 18
VOID AND VOIDABLE MARRIAGES ............ 19
Support ............................................ 63
UP LAW BOC
SUSPENSION OR TERMINATION OF
PARENTAL AUTHORITY ............................ 69
CIVIL LAW
PROPERTY
Characteristics .................................. 83
Classification .................................... 83
Emancipation, as amended by
RA6809.............................................. 71
Ownership ........................................ 90
Funeral .............................................. 73
Accession ..........................................94
CLASSIFICATION OF ACCESSION .............. 94
IN GENERAL .............................................101
PURPOSE ..................................................101
NATURE: QUASI IN REM .......................... 102
JUSTIFICATIONS FOR QUIETING OF TITLE
.................................................................. 102
THE ACTION TO QUIET TITLE DOES NOT
APPLY ....................................................... 102
REQUIREMENTS ....................................... 102
QUIETING OF TITLE V. REMOVAL OF CLOUD
.................................................................. 103
PRESCRIPTION/NON-PRESCRIPTION OF
ACTION ..................................................... 103
Absence............................................. 74
PROVISIONAL MEASURES IN CASE OF
ABSENCE ....................................................75
SUBSEQUENT MARRIAGE CONTRACTED
WHEN ONE SPOUSE IS ABSENT ................75
DECLARATION OF ABSENCE......................75
ADMINISTRATION OF THE PROPERTY OF
THE ABSENTEE .......................................... 77
PRESUMPTION OF DEATH ......................... 77
UP LAW BOC
CIVIL LAW
OBLIGATIONS AND
CONTRACTS
Contracts.......................................... 191
ESSENTIAL REQUISITES ........................... 191
FORM OF CONTRACTS ............................. 196
KINDS OF CONTRACTS ............................ 196
REFORMATION OF INSTRUMENTS ......... 197
RESCISSIBLE CONTRACTS ....................... 197
VOIDABLE CONTRACTS ........................... 199
UNENFORCEABLE CONTRACTS............... 199
VOID OR INEXISTENT CONTRACTS ........ 200
EFFECT OF CONTRACTS.......................... 204
Nuisance ............................................. 71
NUISANCE V. TRESPASS .............................. 141
NUISANCE V. NEGLIGENCE .......................... 142
CLASSES .................................................... 142
DOCTRINE OF ATTRACTIVE NUISANCE ........ 142
LIABILITY IN CASE OF NUISANCE ................. 142
REGULATION OF NUISANCES ...................... 143
SALES
Definition and Essential Requisites
........................................................ 208
UP LAW BOC
CIVIL LAW
Warranties.......................................234
EXPRESS WARRANTIES ...........................234
IMPLIED WARRANTIES ............................235
EFFECTS OF WARRANTIES ...................... 237
EFFECTS OF WAIVERS ............................. 237
BUYERS OPTIONS IN CASE OF BREACH OF
WARRANTY ............................................. 237
Price................................................. 216
MEANING OF PRICE ................................. 216
REQUISITES FOR A VALID PRICE ............. 216
SUCCESSION
UP LAW BOC
CIVIL LAW
......................................................... 304
RIGHT TO INDEMNITY FOR DAMAGES .. 304
SUIT FOR DAMAGES ........................... 304
RESPONSIBILITY TO PARTNERS........... 304
......................................................... 304
......................................................... 304
RIGHT TO FORMAL ACCOUNT .............. 305
PROPERTY RIGHTS OF PARTNERS ....... 305
OWNERSHIP OF CERTAIN PROPERTIES 305
RIGHTS IN SPECIFIC PROPERTY ........... 305
INTEREST IN PARTNERSHIP ................ 306
......................................................... 306
......................................................... 308
AGENCY AND
PARTNERSHIP
Obligations of the
Partnership/Partners to Third
Persons........................................... 308
.......................................................... 310
UP LAW BOC
CIVIL LAW
.......................................................... 318
RIGHT TO AN ACCOUNT ....................... 318
.......................................................... 337
......................................................... 339
DEFINITION........................................ 325
CHARACTERISTICS ............................. 325
FORMATION....................................... 325
EFFECT ............................................... 327
AGENCY AND OTHER CONTRACTS
DISTINGUISHED .................................. 327
......................................................... 340
10
UP LAW BOC
CIVIL LAW
CREDIT TRANSACTIONS
Credit Transactions .......................346
Loan.................................................346
COMMODATUM [NCC 1935-1952] .............. 347
INTEREST AND SUSPENSION OF USURY
LAW ......................................................... 348
GUARANTY ...............................................352
SURETYSHIP ............................................352
GUARANTY DISTINGUISHED FROM
SURETYSHIP [ZOBEL, INC. VS. CA, 1998] 352
NATURE AND EXTENT OF GUARANTY ....353
NATURE AND EXTENT OF SURETYSHIP 355
EFFECT OF GUARANTY ........................ 356
EXTINGUISHMENT OF GUARANTY ........ 359
Pledge .............................................359
CHARACTERISTICS ................................. 360
KINDS ...................................................... 360
ESSENTIAL REQUISITES ......................... 360
PROVISIONS APPLICABLE ONLY TO PLEDGE
................................................................. 360
OBLIGATIONS OF PLEDGEE .................... 360
RIGHTS OF PLEDGOR............................... 361
REQUISITES FOR PERFECTION [ARTS.
2093, 2096] ............................................. 361
11
UP LAW BOC
CIVIL LAW
Original Registration......................384
CONCEPT ..................................................382
EFFECTS ...................................................382
CONCEPT OF NATIVE TITLE, TIME
IMMEMORIAL POSSESSION.....................383
CONCEPT ..................................................392
WHEN APPLICABLE..................................392
WHO MAY APPLY .....................................392
FILING OF THE APPLICATION .................. 393
PROCEDURE IN JUDICIAL CONFIRMATION
.................................................................. 393
EVIDENCE NECESSARY TO SUBSTANTIATE
APPLICATION ........................................... 393
UP LAW BOC
CIVIL LAW
13
UP LAW BOC
14
CIVIL LAW
PAGE 15
UP LAW BOC
CIVIL LAW
RETROACTIVITY OF LAWS
Exceptions to Exception:
(1) Ex post facto law
(2) Impairment of contract
(3) In case of remedial statutes
(4) In case of curative statutes
(5) In case of laws interpreting others
(6) In case of laws creating new rights [(Bona v.
Briones (1918)]
(7) Penal laws favorable to the accused
General rules:
The clause "unless it is otherwise provided"
refers to the date of effectivity and not to the
requirement of publication itself, which
cannot in any event be omitted. [Tanada v.
Tuvera (1986)]
Publication is indispensable in every case, but
the legislature may in its discretion provide
that the usual fifteen-day period shall be
shortened or extended. [Tanada v. Tuvera
(1986)]
WAIVER OF RIGHTS
Mistake of Fact & Difficult Questions of Law These may excuse a party from the legal
consequences of his conduct; but not ignorance
of law.
In specific instances provided by law, mistake
as to difficult legal questions has been given
the same effect as a mistake of fact.
[Tolentino]
The laws referred to by this article are those of
the Philippines. There is no conclusive
presumption of knowledge of foreign laws.
[Tolentino]
Exceptions:
(1) If the waiver is contrary to law, public order,
public policy, morals or good customs;
(2) If the waiver prejudices a third person;
(3) If the alleged rights do not yet exist;
(4) If the right is a natural right.
PAGE 1
UP LAW BOC
CIVIL LAW
Exception:
This article does not apply to criminal
prosecutions because where there is no law
punishing an act, the case must be dismissed.
[Tolentino]
REPEAL OF LAWS
Art. 7, CC. Laws are repealed only by
subsequent ones, and their violation or nonobservance shall not be excused by disuse, or
custom or practice to the contrary.
[Tolentino]
(1) Express or Declared contained in a special
provision of a subsequent law
(2) Implied or Tacit takes place when the
provisions of the subsequent law are
incompatible or inconsistent with those of
an earlier law.
LEGAL PERIODS
Art. 13, CC. When the laws speak of years,
months, days or nights, it shall be understood
that years are of three hundred sixty-five days
each; months, of thirty days; days, of twentyfour hours; and nights from sunset to sunrise.
JUDICIAL DECISIONS
Art. 8, CC. Judicial decisions applying or
interpreting the laws or the Constitution shall
form a part of the legal system of the
Philippines.
General Rule:
PAGE 2
UP LAW BOC
EXEMPTIONS UNDER
INTERNATIONAL LAW (THEORY OF
EXTRATERRITORIALITY):
CONFLICT OF LAWS
CONFLICT OF LAWS/
INTERNATIONAL LAW
PRIVATE
However,
intestate
and
testamentary
succession, both with respect to the order of
succession and to the amount of successional
rights and to the intrinsic validity of
testamentary provisions, shall be regulated by
the national law of the person whose succession
is under consideration, whatever may be the
nature of the property and regardless of the
country wherein the property may be found.
SOURCES
RULE ON PROPERTY
CIVIL LAW
PAGE 3
UP LAW BOC
CIVIL LAW
RULE ON SUCCESSION
EXTRINSIC VALIDITY [ARTS. 17, 815-817, CC]
Place of Execution
Applicable Law
Filipino Testator
Philippines
Philippine Law
Foreign Country
Philippines
PAGE 4
UP LAW BOC
INTERPRETATION OF WILLS
Governed by the National Law of the decedent.
ADMINISTRATION OF ESTATES
Territorial: governed by the law of the place
where the administration takes place, and that
is the law of the country from which the
administrator derives his authority.
REVOCATION
Testator
Applicable Law
CIVIL LAW
TRUSTS
Extrinsic validity: Rule governing wills apply.
Intrinsic validity: lex situs since a trust involves
property [Art. 17, CC]
Philippine Law
Non-domiciliary [Art.
Philippine Law
829, CC]
Will is revoked in a Foreign Country
(1) Philippine Law
(2) Law of the place of
Philippine Domiciliary
revocation (lex loci
actus)
(1) Law of the place
where the will was
made
Non-domiciliary [Art. (2) Law of the place in
829, CC]
which the testator
had his domicile at
the time of the
revocation
PROBATE OF WILLS
Controlling Law: The probate of a will being
essentially procedural in character, the law of
the forum (lex fori) governs.
PAGE 5
UP LAW BOC
CONTRACTS BEFORE
DIPLOMATIC/CONSULAR OFFICIALS
The solemnities established by Philippine laws
shall be observed with respect to contracts
executed before diplomatic or consular officials
of the Republic of the Philippines in a foreign
country [Art. 17(2), FC]
CIVIL LAW
Based
on
the
contemporaneous and subsequent acts
of the parties; often upheld with
reference to the rule of validity of
contracts which presumes that the
parties contemplate to enter into a valid
contract
DEFINITION
Art. 1, FC. Marriage is a special contract of
permanent union between a man and a woman
entered into in accordance with law for the
establishment of conjugal and family life. It is
the foundation of the family and an inviolable
social institution whose nature, consequences,
and incidents are governed by law and not
subject to stipulation, except that marriage
settlements may fix the property relations
during the marriage within the limits provided
by this Code.
PAGE 6
UP LAW BOC
CIVIL LAW
PAGE 7
UP LAW BOC
CIVIL LAW
Property relations
(1) The Hague Convention declares that the
governing law on matrimonial property is:
(a) The internal law designated by the
spouses before the marriage
(b) In the absence thereof, the internal law
of the state in which the spouses fix
their habitual residence
(2) Rule under Philippine law (Art. 80, FC)
(a) In the absence of a contrary stipulation
in the marriage settlements, the
property relations of the spouses shall
be governed by Philippine laws,
regardless of the place of the
celebration of the marriage and their
residence.
Rule is inapplicable:
(i) If both spouses are aliens
(ii) With respect to the extrinsic validity
of the contracts affecting property
not situated in the Philippines and
executed in the country where the
property is located
(iii) With respect to the extrinsic validity
of contracts entered into in the
Philippines but affecting property
situated in a foreign country whose
laws require different formalities for
its extrinsic validity.
(3) Doctrine of Immutability of Matrimonial
Property Regime The change of nationality
on the part of the husband or wife does not
affect the original property regime except
when the law of the original nationality
itself changes the marital regime, hence,
the property regime has to change
accordingly.
PAGE 8
UP LAW BOC
CIVIL LAW
Exception:
Art. 26(2), FC. Where a marriage between a
Filipino citizen and a foreigner is validly
celebrated and a divorce is thereafter validly
obtained abroad by the alien spouse
capacitating him or her to remarry, the Filipino
spouse shall have capacity to remarry under
Philippine law
PAGE 9
UP LAW BOC
GOVERNING LAW
(1) Lex loci celebrationis determines the
consequences of any defect as to form
(2) In general, the same applies with reference
to substantive or intrinsic validity. But with
regard to capacity of the parties to marry,
national law is determinative.
CIVIL LAW
PRINCIPLE
ENRICHMENT
Human Relations
OF
UNJUST
ABUSE OF RIGHT
Art. 19, CC. Every person must, in the exercise of
his rights and in the performance of his duties,
act with justice, give everyone his due, and
observe honesty and good faith.
Art. 22
(Accion in Rem Verso)
Art. 2154
(Solutio Indebiti)
CAPACITY TO ACT
CIVIL PERSONALITY
Juridical Capacity
Fitness of man to be the
subject of legal relations
Passive
Aptitude for the Holding
and Enjoyment of rights
Inherent in natural persons
Lost upon death
Capacity to Act
Power to do acts with
legal effect
Active
Aptitude for the
Exercise of rights
Must be acquired
Lost through death
and other causes
Must
exist
with
juridical capacity
May be restricted or
limited
PAGE 10
UP LAW BOC
CIVIL LAW
BIRTH
DEATH
PAGE 11
UP LAW BOC
CIVIL LAW
MINORITY
RA 6809 (1989) An act lowering the age of
majority from twenty-one to eighteen years.
Age
Both under 15
Both above 60
One under 15, the
other above 60
Both over 15 and
under 60; different
sexes
Both over 15 and
under 60; same sex
One under 15 or over
60, the other between
those ages
Effects on Contracts
(1) They cannot give consent to a contract [Art.
1327 (1), CC]
(2) A contract where one of the parties is a
minor is voidable [Art. 1390(1), CC]
(3) A contract is unenforceable when both of
the parties are minors (incapable of giving
consent) [Art. 1403(3), CC]
(4) Minority cannot be asserted by the other
party in an action for annulment [Art. 1397,
CC]
(5) Not obliged to make restitution except
insofar as he has been benefited [Art. 1399,
CC]
(6) Minor has no right to demand the
thing/price voluntarily returned by him [Art.
1426, CC]
(7) Minor has no right to recover voluntarily
paid sum or delivered thing, if consumed in
good faith [Art. 1427, CC]
(8) Must pay reasonable amount for
necessaries delivered to him [Art. 1489, CC]
Presumed Survivor
Older
Younger
One under 15
Male
Older
One between 15 and
60
Estoppel
works
against
minors
who
misrepresent their ages in a contract and are
compelled to comply with its terms. (active
misrepresentation done by minors). [Mercado v.
Espiritu, (1918)]
When
a
minor
made
no
active
misrepresentation as to his minority and such
minority is known to the other party, the
contract is voidable [Art. 1403, CC] as to the
minor. [Bambalan v. Maramba, (1928)]
Effects on Marriage
May not yet contract marriage [Art. 5, FC].
PAGE 12
UP LAW BOC
CIVIL LAW
Effect on Crimes
General rule: Exempted from criminal liability.
INSANITY
Insanity includes many forms of mental disease,
either inherited or acquired. A person may not
be insane but only mentally deficient (idiocy,
imbecility, feeble-mindedness).
PRODIGALITY
A spendthrift or a prodigal is a person, who, by
excessive drinking, gambling, idleness or
debauchery of any kind shall so spend, waste or
lessen his estate as to expose himself or his
family to want or suffering. The acts of
prodigality must show a morbid state of mind.
[Martinez v. Martinez, (1902)]
Effect on Contracts
(1) Incapacity to give consent to a contract [Art.
1327(2), CC]
(2) Contracts entered into during lucid intervals
are valid [Art. 1328, CC]
(3) Restitution of benefits [Art. 1399, CC]
(4) Voidable if one of the parties is insane [Art.
1390, CC]
(5) Unenforceable if both of the parties are
insane [Art. 1403 (3), CC]
Effect on Crimes
General rule: Exempted from criminal liability
Exception: Acted during lucid interval
Effect on Marriage
May be annulled if either party was of unsound
mind unless the such party after coming to
reason, freely cohabited with the other [Art.
45(2), FC]
FAMILY RELATIONS
Justifying circumstance if acted in defense of
person/rights
of
spouse,
ascendants,
descendants, brothers/sisters, and other
relatives up to the 4th civil degree [Art. 11(2),
RPC]
PAGE 13
UP LAW BOC
CIVIL LAW
ABSENCE
Art. 390, CC. After an absence of seven years, it
being unknown whether or not the absentee
still lives, he shall be presumed dead for all
purposes, except for those of succession.
PAGE 14
UP LAW BOC
CIVIL LAW
Requisites of domicile:
(1) Physical presence in a fixed place
(2) Intent to remain permanently (animus
manendi) [Callejo v. Vera]
KINDS OF DOMICILE
KINDS OF REQUISITES
Family Code
Marriage
REQUISITES
NATURE OF MARRIAGE
Art. 1, FC. Marriage is a special contract of
permanent union between a man and a woman
entered into in accordance with law for the
establishment of conjugal and family life. It is
the foundation of the family and an inviolable
social institution whose nature, consequences,
and incidents are governed by law and not
PAGE 15
UP LAW BOC
CIVIL LAW
Defect or Irregularity
Voidable
ESSENTIAL REQUISITES
AGE
Legal Capacity Male or female 18 years old
and above, not under any of the impediments
mentioned in Art. 37 (incestuous marriages) &
Art. 38 (marriages against public policy), may
contract marriage. [Art. 5, FC]
CEREMONY
No prescribed form or religious rite for the
solemnization of marriage is required. [Art. 6,
FC]
Defect
Art. 45, FC. A marriage may be annulled for any
of the following causes existing at the time of
the marriage: xxx (3) that the consent of either
party was obtained by fraud, unless such party
afterwards, with full knowledge of the facts
constituting the fraud, freely cohabited with the
other as husband and wife.
PAGE 16
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Marriages performed in articulo mortis or in
remote places. [Art. 29, FC]
(2) Where both parties request in writing that
marriage be solemnized at a place
designated by them.
Effect
VOID
VOID
IRREGULARITY
IRREGULARITY
Foreign National
When either or both parties are foreign
nationals: Certificate of legal capacity to contract
marriage, issued by a diplomatic or consular
official, shall be submitted before a marriage
license can be obtained [Art. 21, FC]
Stateless persons or refugees from other
countries: affidavit stating circumstances
showing capacity to contract marriage, instead
of certificate of legal capacity [Art. 21, FC]
PAGE 17
UP LAW BOC
CIVIL LAW
Exceptions
(1) Marriage in Articulo mortis [Art. 27, FC]
The marriage may be solemnized without
the necessity of a marriage license.
It remains valid even if ailing party
survives.
(2) Between passengers or crew members in a
ship or airplane [Art. 31, FC]
(3) Persons within a military zone [Art. 32, FC]
(4) Marriage in Remote and inaccessible places
[Art. 28, FC]
(5) Marriages by Muslims and Ethnic cultural
minorities provided they are solemnized in
accordance with their customs, rites or
practices. [Art. 33, FC]
(6) Marriage by parties who have Cohabited for
at least 5 years without any legal
impediment to marry each other. [Art. 34,
FC; Ninal vs. Badayog (2000)]
EFFECT
OF
MARRIAGES
CELEBRATED ABROAD AND
FOREIGN DIVORCE
MARRIAGES CELEBRATED ABROAD
MARRIAGE CERTIFICATE
Absence and irregularity of marriage license
and contract
There is a presumption of regularity of official
acts, and the issuance of the Civil Registrar of a
Certificate of Due Search and Inability to Find
the application for a marriage license certifies
Exceptions:
(1) Marriage between persons below 18 years
old [Art. 35(1), FC]
(2) Bigamous or polygamous marriage [Art.
35(4), FC]
(3) Mistake in identity [Art. 35 (5), FC]
PAGE 18
UP LAW BOC
CIVIL LAW
Formal requisites
Requirements
independent of the
parties
Lex loci celebrationis if
valid where celebrated,
then valid everywhere;
forms of contracting
marriage are to be
regulated by the law
where it is celebrated.
[Art. 26, FC]
VOID
AND
MARRIAGES
VOIDABLE
PRESUMPTION OF MARRIAGE
FOREIGN DIVORCES
PAGE 19
UP LAW BOC
CIVIL LAW
Molina Guidelines:
(1) The burden of proof to show the nullity of
the marriage belongs to the plaintiff. This is
to be investigated by the OSG for collusion.
(2) The root cause of the psychological
incapacity must be: (a) medically or clinically
identified, (b) alleged in the complaint, (c)
sufficiently proven by the experts, (d) clearly
explained in the decision.
(3) The incapacity must be proven to be existing
at the time of the celebration of the
marriage.
(4) Such incapacity must also be shown to be
medically or clinically permanent or
incurable.
(5) Such illness must be grave enough to bring
about the disability of the party to assume
the essential obligations of marriage.
(6) The essential marital obligations must be
those embraced by Articles 68 up to 71 of
the Family Code as regards the husband
and wife as well as Articles 220, 221, and
225 of the same Code in regard to parents
and their children.
(7) Interpretations given by the National
Appellate Matrimonial Tribunal of the
Catholic Church in the Philippines, while not
controlling/decisive, should be given great
respect by our courts.
(8) The trial court must order the prosecuting
attorney or fiscal and the Solicitor General to
appear as counsel for the state. No decision
shall be handed down unless the Solicitor
General issues a certification. [Republic v.
Molina, (1997)]
VOID MARRIAGES
TYPES OF VOID MARRIAGES
(1) Absence of any formal/essential requisites
(2) Psychologically Incapacitated spouse
(3) Incestuous Marriages
(4) Marriages contrary to public policy
(5) Void subsequent marriages
Absence of requisites
Art. 4(1), FC. The absence of any essential or
formal requisites shall render the marriage void
ab initio, except as stated in Article 35 (a).
Art. 5, FC: Any male or female of the age of
eighteen years or upwards not under any of the
impediments mentioned in Articles 37 and 38,
may contract marriage.
Void from the Beginning [Art. 35, FC]
(1) Marriage where any party is below eighteen
years of age even with the consent of
parents or guardians
(2) Marriage solemnized by any person not
legally authorized to perform marriages
unless such marriages were contracted with
either or both parties believing in good faith
that the solemnizing officer had legal
authority to do so.
Ones belief in good faith that the
solemnizing officer has the required
authority is a mistake of fact, and not of law.
(3) Marriage solemnized without a valid
marriage license, except in marriages under
exceptional circumstances
(4) Bigamous or polygamous marriages not
falling under Article 41 (Art. 41: subsequent
marriage by present spouse who obtained a
declaration of presumptive death for absent
spouse prior to the subsequent marriage)
(5) There is a mistake as to the identity of the
other contracting party
(6) Subsequent marriages that are void under
Article 53 (Non-compliance with Art. 52)
Psychological incapacity
Contracted by any party who, at the time of the
celebration, was psychologically incapacitated
to comply with the essential marital obligations
of marriage, even if such incapacity becomes
manifest only after its solemnization [Art. 36, FC]
PAGE 20
UP LAW BOC
CIVIL LAW
Presumptive Death
Failure of the spouse present to obtain a judicial
declaration of presumptive death before
entering a subsequent marriage [Art. 41, FC]
Incestuous marriages
(1) Between ascendants and descendants of
any degree, legitimate or illegitimate
(2) Between brothers and sisters, whether full or
half blood, legitimate or illegitimate [Art. 37,
FC]
Non-Recording
Subsequent marriage of spouses, where the
requirements of recording under Art. 52 have
not have been complied with, shall be null and
void. [Art. 53, FC]
Art. 52, FC. The judgment of annulment or of
absolute nullity of the marriage, the partition
and distribution of the properties of the spouses
and the delivery of the children's presumptive
legitimes shall be recorded in the appropriate
civil registry and registries of property;
otherwise, the same shall not affect third
persons.
Previous marriage declared void ab initio or
annulled
Art. 40, FC. The absolute nullity of a previous
marriage may be invoked for purposes of
remarriage on the basis solely of a final
judgment declaring such previous marriage
void.
PAGE 21
UP LAW BOC
CIVIL LAW
PAGE 22
UP LAW BOC
Good Faith
Period of absence for Presumptive Death is
mandatory thus cannot be shortened by good
faith and if be done so will be void.
Civil Code
As to period
CIVIL LAW
under
As to remarriage
In order to remarry, Declaration
of
summary proceeding presumptive death is not
is necessary
necessary
Can be instituted by
the spouse present,
any interested party, The spouses themselves
and the subsequent
spouse
PAGE 23
UP LAW BOC
VOIDABLE
MARRIAGE
CIVIL LAW
OR
ANNULLABLE
Article 44 (Donations):
If both spouses of the subsequent marriage
acted in bad faith, all donations by reason of
marriage and testamentary dispositions made
by one party in favor of the other are revoked by
operation of law.
PAGE 24
UP LAW BOC
CIVIL LAW
Action to Annul
Action in rem, concerns status of parties; res is
relation between parties or marriage tie;
jurisdiction depends on nationality or domicile
not the place of celebration.
Fraud
Only those enumerated in Art. 46:
(1) Non-disclosure of previous conviction by
final judgment of a crime involving moral
turpitude
(2) Concealment by wife at the time of
marriage, that she was pregnant by another
man
(3) Concealment of STD regardless of nature
existing at time of marriage
(4) Concealment of drug addiction, habitual
alcoholism, homosexuality, lesbianism
existing at time of marriage
Insanity
Mental incapacity or insanity is a vice of
consent; insanity
(1) of varying degrees
(2) curable being an illness capable of
ratification or convalidation
(3) has lucid intervals
(4) ground only for annulment in many
countries
Can be ratified by cohabitation after insanity is
cured or during a lucid interval
Mere mental weakness is not a ground for
annulment, but if found grave enough, it may
amount to psychological incapacity.
Intoxication, somnambulism where one had
no mental capacity to give consent is
equivalent to insanity
Must exist at the time of the celebration of the
marriage. Insanity that occurs after the
celebration of marriage does not constitute a
cause for nullity [Katipunan v. Tenorio (1937)]
Art. 46 STD
The STD is a type of
fraud which is a
ground for annulment
PAGE 25
UP LAW BOC
CIVIL LAW
PAGE 26
UP LAW BOC
CIVIL LAW
Prescription
Ratification
(Art. 47)
(Art. 45)
Within 5 years after
attaining 21.
Free cohabitation
Before party below 21 attaining age of 21.
reaches 21.
after
PAGE 27
UP LAW BOC
EFFECT OF PENDING
ACTIONS/DECREE
CIVIL LAW
EFFECTS OF NULLITY
Art. 50(1), FC. The effects provided for by
paragraphs (2), (3), (4) and (5) of Article 43 and by
Article 44 shall also apply in the proper cases to
marriages which are declared void ab initio or
annulled by final judgment under Articles 40 and
45.
Final judgment in such cases shall provide for the:
(1) Liquidation, partition, and distribution of the
properties of the spouses
(2) Custody and support of the common children
(3) Delivery of their presumptive legitimes
(a) Unless such matters had been
adjudicated
in
previous
judicial
proceedings (Art. 50(2))
(b) All creditors of the spouses/property
regime shall be notified of the
proceedings for liquidation [Art. 50(2 and
3), FC]
In the partition, the conjugal dwelling and lot shall
be adjudicated to the spouse with whom majority
of the common children remain [Arts. 50(4), 102
and 129, FC]
Presumptive legitimes, computed as of the date of
the final judgment, shall be delivered in cash,
property or sound securities:
Unless the parties, by mutual agreement
judicially approved, had already provided for
such [Art. 51(1), FC]
The children/guardian/trustee of property may
ask for the enforcement of the judgment [Art.
51(2), FC]
The delivery of the presumptive legitimes shall
not prejudice the ultimate successional rights,
but the value of the properties already received
shall be considered as advances on their
legitime [Art. 51(3), FC]
General rule: children born or conceived within
void marriages are illegitimate.
Exceptions:
(1) Children conceived or born before the
judgment under Article 36 has become final
and executory [Art. 54, FC]
(2) Children conceived or born of subsequent
marriages under Article 53 Art. 54, FC]
PAGE 28
UP LAW BOC
JURISDICTION
For marriages celebrated under both civil and
Muslim rites, Sharia courts do not have exclusive
jurisdiction. The Judiciary Reorganization Act of
1980 provided that regional trial courts have
jurisdiction over all actions involving the contract
of marriage and marital relations. [Tamano v.
Ortiz, (1998)]
Legal Separation
GROUNDS
SEPARATION
FOR
LEGAL
CIVIL LAW
PAGE 29
UP LAW BOC
(6)
(7)
(8)
(9)
CIVIL LAW
DEFENSES
GROUNDS FOR
SEPARATION
DENYING
LEGAL
COOLING-OFF
PERIOD
AND
RECONCILIATION EFFORTS
PAGE 30
UP LAW BOC
(3)
(4)
CONFESSION OF JUDGMENT
No decree of legal separation shall be based upon
a stipulation of facts or a confession of judgment
[Art. 60, (1). FC]
Note: Art. 60 par. 1 applies only if the judgment
was based solely on the stipulation of facts or
solely on the confession of judgment. Thus, if
other grounds were used, Art. 60 par. 1 is not
applicable. [Balane]
The prohibition on confession of judgment does
not mean that the Court will not grant petition if
one party admits to being guilty of the charges of
adultery. The point of this provision is that the
Court should still admit evidence, not decide just
based on an admission of guilt. Because what is
prohibited is handing down a decree of legal
separation based solely on a confession of
judgment. [Ocampo v Florenciano (1960)]
(5)
(6)
(7)
(8)
CIVIL LAW
RECONCILIATION
EFFECTS OF PENDENCY
The Court shall provide for: [Art. 62, cf. Art. 49. FC]
(1) Support of spouses
(2) Custody of children the court shall give
custody of children to one of them, if there is
no written agreement between the spouses.
(3) Visitation rights of the other spouse
PAGE 31
UP LAW BOC
CIVIL LAW
Voidable Marriages
(1)
(2)
(3)
(4)
(5)
(6)
Legal Separation
(1) Repeated physical violence
(2) Pressure
to
compel
to
change
religious/political affiliations
Lack of parental
(3) Corruption / inducement to engage in
consent
prostitution
Insanity
(4) Final judgment with sentence of more than
Fraud
6 yrs.
Force, Intimidation
(5) Drug addiction / habitual alcoholism
or Undue Influence
(6) Homosexuality / lesbianism
Impotence
(7) Bigamous marriage
Serious
and
(8) Sexual Infidelity
Incurable STD
(9) Attempts against the life of petitioner
(10) Abandonment without just cause for more
than 1 year
Legal Separation
Terminated Marriage
Voidable
[Art. 41, FC]
Marriages
Status of Marital ties
Severed
Severed
Legal Separation
Not Severed
PAGE 32
UP LAW BOC
CIVIL LAW
Terminated Marriage
Voidable
Legal Separation
[Art. 41, FC]
Marriages
Property Relations
(1) Dissolution and Liquidation of properties
(a) Guilty/Bad Faith spouse will forfeit his/her share from the Net Profits to the (in order):
(i) Common children
(ii) Children of the guilty spouse by previous marriage
(iii) The innocent spouse
(2) Notification of creditors with the proceedings for liquidation
(3) Conjugal dwelling to be adjudicated to the spouse who has custody of majority of common children
(4) Insurance policy may be revoked only by the innocent spouse (Legal Separation: Only within 5 years)
(5) Spouse in bad faith/guilty shall be disqualified to inherit from innocent spouse (intestate succession
only in legal separation)
Donation Propter Nuptias
Valid, but if donee contracted marriage in bad faith, revoked by operation of May be revoked within 5
law
years
ESSENTIAL OBLIGATIONS
(1) Live together (cohabitation) [Art. 68, FC]
Exception: One spouse living abroad or
there are valid and compelling reasons [Art.
69 (2), FC] at the discretion of the court.
FAMILY DOMICILE
SUPPORT
PAGE 33
UP LAW BOC
CIVIL LAW
MANAGEMENT OF HOUSEHOLD
This is the right and duty of both spouses.
EXERCISE OF PROFESSION
Requirements of
marriage settlements
and any modification
thereof [Art. 77, FC]
PAGE 34
UP LAW BOC
DONATIONS BY REASON OF
MARRIAGE
Requisites of
donations propter
nuptias
Donations excluded
Grounds for
revocation of
donation propter
nuptias [Art. 86, FC]
CIVIL LAW
PAGE 35
UP LAW BOC
Effects of judicial
declaration of nullity
CIVIL LAW
Donations by reason of marriage shall remain valid except that if the donee
contracted marriage in bad faith, such donations made to said donee are revoked
by operation of law. [Art. 43 (3), FC]
Revocation by operation of law Thus, even if spouse in good faith condones the
donee, the donation propter nuptias is still forfeited.
Effects provided for by Art. 43(2), (3), (4), and (5) and by Art. 44 shall also apply to
marriages that are declared void ab initio or annulled by final judgment under
Article 40 (Judicial declaration of nullity) and 45 (Voidable marriages). [Art. 50,
FC]
General rule: Spouses cannot donate to each other, directly or indirectly;
donations made by spouses to each other during the marriage are void. [Art. 87,
FC]
These donations refer to donations inter vivos [Tolentino]
Exception: Moderate gifts on the occasion of any family rejoicing.
The prohibition on donations can only be assailed by persons who bear such
relation to the parties or the property itself, that their rights are being interfered
with. Here, the insurance company of the donated car cannot assail the validity of
the donation. In addition, the codal exception of moderate gifts depends on the
income class of the spouses and a car could be considered a moderate gift that
does not infringe the prohibition of donation between spouses. [Harding v.
Commercial Union, (1918)]
A spouse cannot donate to persons which the other spouse may inherit from as it
constitutes an indirect donation. [Nazareno v. Birog, (1947)]
The donation between common-law spouses falls within the provision prohibiting
donations between spouses during marriage. [Matabuena v Cervantes, (1971)]
The donation made by a man to a woman was held valid because no proof was
shown that they were still living in a common-law relationship at the time of the
donation. [Sumbad v. CA, (1999)]
Ordinary donations
Express acceptance necessary
Cannot be made by minors
Cannot include future property
No limit to donation of present property provided
legitimes are not impaired
Grounds for revocation in donation laws
PAGE 36
UP LAW BOC
ABSOLUTE
COMMUNITY
OF
PROPERTY
AND
CONJUGAL
PARTNERSHIP OF GAINS
Art. 80, FC. In absence of a contrary stipulation in
a marriage settlement, property relations between
Filipino spouses are governed by Philippine laws,
regardless of the place of marriage and their
residence.
General rule: By the Nationality Rule [Art. 15, FC],
the rule that Absolute Community Property (ACP)
is the default mode of property relations absent
any marriage settlement applies to all Filipinos,
regardless of the place of the marriage and their
residence.
Exceptions:
(1) Where both spouses are aliens
(2) As to the extrinsic validity of contracts
affecting property not situated in the
Philippines and executed in the country where
the property is located
(3) As to the extrinsic validity of contracts entered
into in the Philippines but affecting property
situated in a foreign country whose laws
require different formalities for its extrinsic
validity
Art. 81, FC. Everything stipulated in marriage
settlements in consideration of a future marriage
are void if marriage does not take place. However,
stipulations that do not depend upon the
celebration of marriage (e.g. recognition of
paternity of illegitimate child) remain valid.
Art. 89, FC. Waiver of rights, interests, shares and
effects of the absolute community of property is
allowed, except in the following cases:
(1) When there is judicial separation of property
(2) When the marriage is dissolved by death of
one of the spouses
(3) When the marriage is annulled
Regarding Art. 89: The creditors of the spouse
who made such waiver may petition the court to
rescind the waiver to the extent of the amount
sufficient to cover the amount of their credits.
Art. 90, FC. Co-ownership rules shall apply to ACP
in matters not provided by the Family Code.
PAGE 37
CIVIL LAW
UP LAW BOC
CIVIL LAW
What it
consists of
PAGE 38
UP LAW BOC
CIVIL LAW
What it
consists of
(continued)
What
remains
exclusive
property
General rule: Properties for personal use
Exception: Jewelry
PAGE 39
UP LAW BOC
CIVIL LAW
What
remains
exclusive
property
(continued)
1.
Presumption
PAGE 40
UP LAW BOC
Charges and
obligations
PAGE 41
CIVIL LAW
UP LAW BOC
Charges
and
Obligations
(continued)
CIVIL LAW
PAGE 42
UP LAW BOC
PAGE 43
CIVIL LAW
UP LAW BOC
Ownership,
administration,
2.
enjoyment, and
disposition
(continued)
Dissolution of
the regime
Exceptions:
(1) Moderate donations to charity due to
family rejoicing or distress
(2) Moderate gifts by each spouse to the other
due to family rejoicing
Moderation depends on the familys socioeconomic status.
CIVIL LAW
PAGE 44
UP LAW BOC
Effect of de
facto
separation
PAGE 45
CIVIL LAW
UP LAW BOC
Liquidation of
assets and
liabilities
CIVIL LAW
PAGE 46
UP LAW BOC
CIVIL LAW
SEPARATION OF PROPERTY OF
THE SPOUSES AND
ADMINISTRATION OF COMMON
PROPERTY BY ONE SPOUSE
DURING THE MARRIAGE
Art. 134, FC. In the absence of an express
declaration in the marriage settlements, the
separation of property between spouses during
the marriage shall not take place except by
judicial order. Such judicial separation of property
may either be voluntary or for sufficient cause
Judicial separation of property may either be:
(1) voluntary or
(2) for sufficient cause
PAGE 47
UP LAW BOC
When it
applies
What it
consists of
CIVIL LAW
SEPARATION OF PROPERTY
Agreed upon in the marriage settlements by the spouses
Mandatory under Arts. 103 & 130 (subsequent marriages contracted by a surviving
spouse without judicial settlement of previous property regime)
Default property regime when there is reconciliation between spouses after judicial
separation of property
Present or future property or both
Each spouses earnings from his or her own profession, business, or industry
Natural, industrial or civil fruits of spouses separate properties
May be total or partial
PAGE 48
UP LAW BOC
CIVIL LAW
Art. 148
Applicability
Man and woman living together as husband and
wife, with capacity to marry [Art. 5, FC] without any Man and woman living together as husband and
legal impediment)
wife, NOT capacitated to marry
(1) at least 18 years old
(1) Under 18 years old
(2) not Art. 37 (incestuous void marriage)
(2) Adulterous relationship
(3) not Art. 38 (void marriage by reason of public (3) Bigamous /polygamous marriage
policy)
(4) Incestuous marriages under Art. 37
(4) not bigamous
(5) Void marriages by reason of public policy under
Art. 38
Other void marriages due to absence of formal
requisite
Salaries and wages
Owned in equal shares
Separately owned by parties
Properties acquired through exclusive funds
Remains exclusive, provided there is proof
Remains exclusive
PAGE 49
UP LAW BOC
The Family
THE
FAMILY
INSTITUTION
AS
AN
INCLUDES
CIVIL LAW
GUIDELINES
PAGE 50
UP LAW BOC
BENEFICIARIES
HOME
OF
THE
CIVIL LAW
FAMILY
REQUISITES TO BE A BENEFICIARY
(1) The
relationship
is
within
those
enumerated;
(2) They live in the family home; and
(3) They are dependent for legal support on the
head of the family.
PAGE 51
UP LAW BOC
CIVIL LAW
LEGITIMATE CHILDREN
NATURAL/BIOLOGICAL
A child conceived or born during a valid
marriage is presumed to belong to that
marriage, regardless of the existence of
extramarital relationships. [Liyao v. Liyao
(2002)]
ARTIFICIAL INSEMINATION
Requisites to be considered legitimate:
(1) Artificial insemination made on wife
(2) Sperm comes from any of the following:
(a) Husband
(b) Third person donor
(c) Husband and third person donor
(3) In case of donor sperm, husband and wife
must authorize/ratify insemination in a
written instrument:
(a) Executed & signed by husband and wife
before the birth of the child.
(b) Recorded in the civil registry together
with the birth certificate of the child.
[Art. 164, FC]
PAGE 52
UP LAW BOC
CIVIL LAW
IMPUGNING LEGITIMACY
PAGE 53
UP LAW BOC
CIVIL LAW
ILLEGITIMATE CHILDREN
Illegitimate children may establish their
illegitimate filiation in the same way and on the
same evidence (primary or secondary) as
legitimate children. [Art. 175, FC]
PROOF OF FILIATION
PAGE 54
UP LAW BOC
CIVIL LAW
PAGE 55
UP LAW BOC
CIVIL LAW
GROUNDS
FOR
LEGITIMATION
IMPUGNING
RIGHTS
The same as those of legitimate children [Art.
179, FC]
FC]
(1) May be made only by those who are
prejudiced in their rights
(2) Within five years from the time their cause
of action accrues
LEGITIMATED CHILDREN
Adoption
Legitimation
Adoption
Legal effect
The law merely makes The law creates by
legal what exists by fiction a relation which
nature
did not in fact exist
Persons affected
Natural children
Strangers (generally)
Procedure
Extrajudicial acts of Always by judicial
parents
decree
Who should apply
Both parents, with
exceptions allowing
Both parents
only one of them to
apply [RA 8552]
Effect on parent-child relationship
Same status and
rights with that of a
Creates a relationship
legitimate child not
only between the child
only in relation to the
and the adopting
legitimizing parents
parents
but also to other
relatives
TO BE CAPABLE OF LEGITIMATION
PAGE 56
UP LAW BOC
CIVIL LAW
GUARDIANS
With respect to their wards, after the
termination of the guardianship and clearance
of his/her accountabilities.
JOINT ADOPTION
General rule: Husband and wife shall adopt
jointly.
Exceptions:
(1) If one spouse seeks to adopt the legitimate
child of the other
(2) If one of the spouses seeks to adopt his/her
illegitimate child provided that the other
spouse has signified his/her consent
(3) If spouses are legally separated from each
other
If spouses jointly adopt, parental authority shall
be jointly exercised by them.
UP LAW BOC
CIVIL LAW
PRE-ADOPTION PROCEDURES
VOLUNTARY COMMITMENT OF BIOLOGICAL
MOTHER WANTING TO PUT HER CHILD UP
FOR ADOPTION
PAGE 58
UP LAW BOC
INVOLUNTARY
COMMITMENT
ABANDONED OR NEGLECTED CHILD
OF
CIVIL LAW
ADOPTION PROCEDURES
Inquiry of prospective adopters at DSWD
Placement
Supervised Trial Custody
Home Study Report
Recommendation and Consent of DSWD
File Petition for Adoption within 30 days
from Receipt of Consent from DSWD
Adoption Decree
PAGE 59
UP LAW BOC
WHO MAY
ADOPTED
NOT
ADOPT/
BE
CIVIL LAW
NAME
Art. 365, CC. An adopted child shall bear the
surname of the adopter.
RA 8552 allows the change of first name to be
instituted in the same proceeding as the
adoption: the decree of adoption shall state
the name by which the child is to be known.
NATIONALITY
Adoption does not confer citizenship: Philippine
citizenship may be lost/acquired [only] in the
manner provided by law. [Sec. 3, Art. 4,
Constitution]
The right to confer citizenship belongs to the
State (political) and cannot be granted by a
citizen through adoption. Adoption creates a
relationship between the adopter and adoptee,
not between the State and the adoptee.
LEGITIMACY
The adoptee shall be considered the legitimate
son/daughter of the adopters for all intents and
purposes, and as such is entitled to all rights
and obligations provided by law to legitimate
children born to them without discrimination of
any kind. [Sec. 17]
RESCISSION OF ADOPTION
SUCCESSION
In legal and intestate succession, the adopter
and the adoptee shall have reciprocal rights of
succession without distinction from legitimate
filiation. However, if the adoptee and his/her
biological parents had left a will, the law on
testamentary succession shall govern. [Sec. 18]
Art. 190, FC as amended. Rules on legal or
intestate succession to the estate of the
adoptee:
(1) Legitimate and illegitimate children,
descendants and the surviving spouse of the
adoptee shall inherit in accordance with the
ordinary rules of legal/intestate succession
(2) When the surviving spouse OR illegitimate
children AND adopters concur, they shall
inherit on a 50-50 basis
(3) When the surviving spouse AND illegitimate
children AND adopters concur, they shall
inherit on a 1/3-/1/3-1/3 basis
(4) When only adopters survive, they shall
inherit 100% of the estate
PAGE 60
UP LAW BOC
OF
or
RECTIFICATION
BIRTH
CIVIL LAW
SIMULATED
PAGE 61
UP LAW BOC
CIVIL LAW
PAGE 62
UP LAW BOC
Support
WHAT IT COMPRISES
PROPERTIES
SUPPORT
ANSWERABLE
CIVIL LAW
FOR
ORDER OF SUPPORT
PAGE 63
UP LAW BOC
CIVIL LAW
AMOUNT
The amount of support is in proportion to the
means of the provider and the needs of the
receiver, and can be reduced or increased if such
circumstances change. [Arts. 201, 202, FC]
OR
WHEN DEMANDABLE
The obligation to give support shall be
demandable from the time the person who has
a right to receive the same needs it for
maintenance, but it shall not be paid except
from the date of judicial or extra-judicial
demand. [Art. 203, FC]
OPTIONS
ATTACHMENT
The right to receive support as well as any
money or property obtained as such support
shall not be levied upon on attachment or
execution. [Art. 205, FC]
PAGE 64
UP LAW BOC
Parental Authority
CIVIL LAW
GENERAL PROVISIONS
[Art. 209]:
(1) The caring for and rearing of children for
civic consciousness and efficiency;
(2) The development of the moral, mental and
physical character and well-being of said
children
CASES
WHEN
PARENTAL
AUTHORITY AND RESPONSIBILITY
MAY
BE
TRANSFERRED
OR
RENOUNCED
(1) Adoption;
(2) Guardianship; or
(3) Commitment of the child in an entity or
institution engaged in childcare or in a
childrens home.
CHARACTERISTICS OF PARENTAL
AUTHORITY
PAGE 65
UP LAW BOC
DESCENDANTS
PRIVILEGE
REFUSAL TO TESTIFY [Art. 215, FC]
OF
CIVIL LAW
is
Substitute Parental
Authority
Special Parental
Authority
It
is
exercised
concurrently with the
parental authority of
the parents and rests
on the theory that
It is exercised in case
while the child is in the
of death, absence, or
custody of the person
in case of unsuitability
exercising
special
of parents.
parental authority, the
parents temporarily
relinquish
parental
authority over the
child to the latter.
In order:
(1) The surviving grandparent [Art. 214, FC]
(2) Oldest brother or sister, over 21 years old,
unless unfit or unqualified.
(3) Childs actual custodian, over 21 years old,
unless unfit or unqualified.
PAGE 66
UP LAW BOC
CIVIL LAW
EFFECT OF PARENTAL
AUTHORITY UPON THE
PERSONS OF THE CHILDREN
SUBSTITUTE REPRESENTATION
COURT
ASSISTANCE
IN
DISCIPLINE OF THE CHILD
THE
PAGE 67
UP LAW BOC
CIVIL LAW
OWNERSHIP OF CHILDS
ACQUISITIONS
PARENTS USUFRUCT
EFFECTS OF PARENTAL
AUTHORITY UPON THE
PROPERTY OF THE CHILDREN
[Art. 225, FC]
(1) The father and mother shall jointly exercise
legal guardianship over the property of the
minor common child without court
appointment.
(2) In case of disagreement, the fathers
decision shall prevail, unless there is judicial
order to the contrary.
(3) The ordinary rules on guardianship shall be
merely suppletory except when the child is
under substitute parental authority, or the
guardian is a stranger, or a parent has
remarried, in which case the ordinary rules
on guardianship shall apply.
(4) If the market value of the property or the
annual income of the child exceeds
P50,000, the parent is required to furnish a
PAGE 68
UP LAW BOC
SUSPENSION OR TERMINATION
OF PARENTAL AUTHORITY;
RA 7610, CHILD ABUSE LAW
PARENTAL AUTHORITY
PERMANENTLY TERMINATES
(1)
(2)
(3)
(4)
CIVIL LAW
PERMANENT DEPRIVATION OF
PARENTAL AUTHORITY ON
GROUNDS OF SEXUAL ABUSE [Art. 232,
FC]
If the person exercising parental authority has
subjected or has allowed the child to be
subjected to sexual abuse, such person shall be
permanently deprived of authority over the
child.
SCOPE
OF
SUBSTITUTE
AND
SPECIAL PARENTAL AUTHORITY [Art.
TERMINATION
OF
PARENTAL
AUTHORITY WHICH CAN BE REVIVED
BY FINAL JUDGMENT [Art. 229, FC]
233, FC]
The person exercising substitute parental
authority shall have the same authority over
the person of the child as the parents.
In no case shall the school administrators,
teacher or individual engaged in childcare
exercising special parental authority inflict
corporal punishment upon the child.
PAGE 69
UP LAW BOC
CIVIL LAW
PAGE 70
UP LAW BOC
Emancipation
CIVIL LAW
SEPARATION IN FACT
[as amended by RA
6809]
Art. 234, FC. Emancipation takes place by the
attainment of majority. Unless otherwise
provided, majority commences at the age of
eighteen years.
SITUATION
JURISDICTION
Summary Judicial
Proceedings in the Family
Law
PROCEDURAL RULES
PROVIDED FOR IN THIS TITLE
SHALL APPLY TO [Art. 238, FC]
(1) Separation in fact between husband and
wife
(2) Abandonment by one of the other
(3) Incidents involving parental authority
PAGE 71
UP LAW BOC
CIVIL LAW
INCIDENTS INVOLVING
PARENTAL AUTHORITY
PROCEDURE
(1) A preliminary conference shall be
conducted by the judge personally without
the parties being assisted by counsel.
(2) After the initial conference, if the court
deems it useful, the parties may be assisted
by counsel at the succeeding conferences
and hearings. [Art. 243, FC]
(3) If the petition is not resolved at the initial
conference, said petition shall be decided in
a summary hearing.
Basis of summary hearing (at the sound
discretion of the court):
(a) Affidavits
(b) Documentary evidence
(c) Oral testimonies at the courts sound
discretion. If testimony is needed, the
court shall specify the witnesses to be
heard and the subject-matter of their
testimonies, directing the parties to
present said witnesses. [Art. 246(a),
FC]
PROCEDURE
NATURE OF JUDGMENT
PAGE 72
UP LAW BOC
CIVIL LAW
Retroactive Effect
DAMAGES
FUNERAL EXPENSES
Funeral
RELATIVES DUTY AND RIGHTS
TO ARRANGE FUNERALS
The duty and the right to make arrangements
for the funeral of a relative shall be in
accordance with the order established for
support, under Article 294 [Art. 305, CC]:
(1) Spouse
(2) Descendants in the nearest degree. In case
of descendants of the same degree, the
oldest shall be preferred.
(3) The ascendants in the nearest degree. In
case of ascendants, the paternal shall have
a better right.
(4) The brothers and sisters, the oldest shall be
preferred.
(5) Municipal authorities, if there are no
persons who are bound to support or if such
persons are without means.
GUIDELINES
IN
MAKING
FUNERAL ARRANGEMENTS
NATURE OF FUNERAL
PAGE 73
UP LAW BOC
Use of Surnames
SURNAMES OF CHILDREN
WIFE AFTER
MARRIAGE
AND
CIVIL LAW
DURING
PAGE 74
UP LAW BOC
Absence
PROVISIONAL MEASURES IN
CASE OF ABSENCE
Art. 43, CC. If there is a doubt, as between two
or more persons who are called to succeed each
other, as to which of them died first, whoever
alleges the death of one prior to the other, shall
prove the same; in the absence of proof, it is
presumed that they died at the same time and
there shall be no transmission of rights from
one to the other.
SUBSEQUENT MARRIAGE
CONTRACTED WHEN ONE
SPOUSE IS ABSENT
Exceptions:
The following subsequent marriage of the
present spouse is valid:
(1) Subsequent marriage due to ordinary
absence where:
(a) The prior spouse had been absent for 4
consecutive years;
(b) The spouse present had a well-founded
belief that absent spouse is dead; and
(c) Judicial declaration of presumptive
death was secured (no prejudice to the
effect of the reappearance of the absent
spouse).
(2) Subsequent marriage due to extraordinary
absence where:
(a) The prior spouse had been missing for 2
consecutive years;
(b) There is danger of death attendant to
the disappearance [Art. 391, Civil Code];
(c) The spouse present had a well-founded
belief that the missing person is dead;
and
(d) Judicial declaration of presumptive
death was secured (no prejudice to the
effect of the reappearance of the absent
spouse).
CIVIL LAW
Presumed Survivor
Older
Younger
One under 15
Male
Older
One between 15 and 60
PAGE 75
UP LAW BOC
CIVIL LAW
AS
DECLARATION OF ABSENCE
REQUISITES TO APPOINT
REPRESENTATIVE
PAGE 76
UP LAW BOC
ADMINISTRATION
OF
THE
PROPERTY OF THE ABSENTEE
CIVIL LAW
PRESUMPTION OF DEATH
Art. 390, CC. After an absence of 7 years, it
being unknown whether or not the absentee
still lives, he shall be presumed dead for all
purposes, except for those of succession.
Exception: Succession
In succession, 10 years is required for
presumption of death.
If absentee disappeared after age of 75, 5
years shall be sufficient.
EXTRAORDINARY ABSENCE
PAGE 77
UP LAW BOC
CIVIL LAW
Civil Registrar
ARTICLES 407-413
Art. 407, CC. Acts, events and judicial decrees
concerning the civil status of persons shall be
recorded in the civil register.
RA 9048 AS AMENDED BY RA
10172
PAGE 78
UP LAW BOC
CIVIL LAW
GROUNDS
PAGE 79
UP LAW BOC
CIVIL LAW
OF
PAGE 80
UP LAW BOC
(3)
(4)
(5)
(6)
CIVIL LAW
Deaths
Legal separations
Judgments of annulments of marriage
Judgments declaring marriages void from
the beginning
(7) Legitimations
(8) Adoptions
(9) Acknowledgments of natural children
(10) Naturalization
(11) Election, loss or recovery of citizenship
(12) Civil interdiction
(13) Judicial determination of filiation
(14) Voluntary emancipation of a minor
(15) Changes of name
WHERE FILED
Verified petition for cancellation or correction of
entry in the civil registry may be filed with the
Regional Trial Court of the province where the
corresponding civil registry is located.
ENTRIES SUBJECT TO
CANCELLATION/CORRECTION
(1) Births
(2) Marriages
PAGE 81
PAGE 82
UP LAW BOC
PROPERTY
CIVIL LAW
Property
All things which are, or may be, the object of
appropriation. [NCC 414]
Characteristics
(1) Utility capacity to satisfy human wants
(2) Substantivity and Individuality separate and
autonomous existence
(3) Susceptibility of being appropriated what
cannot be appropriated because of their
distance, depth, or immensity cannot be
considered things (i.e. stars, ocean)
Classification
HIDDEN TREASURE
Hidden treasure any hidden and unknown
deposit of money jewels or other precious
objects, the lawful ownership of which does not
appear. [NCC 439]
Owner of the land, building or other property on
which the hidden treasure was found, also owns
it, subject to:
(1) Right of a finder by chance who is not a
trespasser/intruder: of treasure
(2) Right of a usufructuary who finds treasure:
of treasure
(3) Right of State to acquire things of interest to
science or the arts [NCC 438]
BASED ON MOBILITY
[IMMOVABLE OR MOVABLE]
CATEGORIES OF IMMOVABLES
(1) By nature
(2) By incorporation
(3) By destination
(4) By analogy
NCC 415.
(1) Land, buildings, roads and constructions
of all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while
they are attached to the land or form an
integral part of an immovable;
(3) Everything attached to an immovable in
a fixed manner, in such a way that it cannot
be separated therefrom without breaking
the material or deterioration of the object;
PAGE 83
UP LAW BOC
PROPERTY
CIVIL LAW
(2) Par. 8
(a) Mineral Deposits
(i) Minerals still deposited in the soil
(ii) When
minerals
have
been
extracted, they become chattel.
(b) Slag Dump: dirt and soil taken from a
mine and piled upon the surface of the
ground. Minerals can be found inside
the dump.
(c) Waters: those still attached to or running
thru the soil or the ground.
Par. 3 v. Par. 4
Par. 3
Cannot be separated
from
immovable
without breaking or
deterioration
by
Par. 4
Can be separated
from
immovable
without breaking or
deterioration
Must be placed by
the owner, or by his
agent, expressed or
implied
Real property by
incorporation
and
destination
(2) Par. 5
(a) Immovability depends upon their being
destined for use in the industry or work
in the tenement;
(i) The moment they are separated,
(from the immovable or from the
industry or work in which they are
utilized) they recover their condition
as movables.
(ii) If it is still needed for the industry
but separated from the tenement
temporarily, the property continues
to be immovable.
(b) Requisites for Immovability in Par. 5:
(i) Placed by the owner or the tenant
(as agent);
(ii) The
machine,
receptacle,
instrument, implement must also
(2) Par. 3
(a) Res vinta in Roman Law
(b) Attachment in a fixed manner:
breakage or injury in case of separation
will be substantial e.g. wells, sewers,
aqueducts and railways
(i) Whether attached by the owner
himself or some other person
(3) Par. 7
Actually used (it has been spread over the
land)
PAGE 84
UP LAW BOC
PROPERTY
CIVIL LAW
(3) Par. 6
Requisites:
(a) Placed by the owner or the tenant (as
agent);
(b) With the intention of permanent
attachment;
(c) Forming a permanent part of the
immovable.
(4) Par. 9:
A floating house tied to a shore and used
as a residence is considered real property,
considering that the waters on which it
floats are considered immovables.
But if the floating house makes it a point
to journey from place to place, it assumes
the category of a vessel, and is considered
a movable.
(2) By description
(a) Ability to change location whether it
can be carried from place to place;
PAGE 85
UP LAW BOC
PROPERTY
CIVIL LAW
the
PAGE 86
UP LAW BOC
PROPERTY
BASED ON OWNERSHIP
PUBLIC DOMINION
Property of public dominion is outside the
commerce of man. They cannot be the subject
matter of private contracts, cannot be acquired
by prescription and they are not subject to
attachment and execution nor burdened with a
voluntary easement.
Public
Dominion
Public Domain
Public Lands
CIVIL LAW
CHARACTERISTICS
Not owned by the State but pertains to
it as territorial sovereign; to hold in trust
for the interest of the community.
Purpose: For public use, and not for use
by the State as a juridical person.
Cannot be the subject of appropriation
either by the State or by private
persons.
CLASSIFICATIONS
Administered by the State [NCC 420]
(1) Those intended for public use. (roads, canals,
rivers, torrents, ports and bridges
constructed by the State, banks, shores,
roadsteads, and others of similar character)
PAGE 87
UP LAW BOC
PROPERTY
(2) Patrimonial
property
of
Municipal
Corporations:
The province or municipality, as a juridical
entity, also possesses private property to
answer for its economic necessities.
Classification of Properties of provinces,
cities, and municipalities [Salas v.
Jarencio, (1972)]
(i) Properties acquired with their own
funds in their private or corporate
capacity over which the political
subdivision has ownership and
control.
(ii) Properties of public dominion held in
trust for the States inhabitants are
subject to the control and supervision
of the State.
CIVIL LAW
Conversion
Alienable Public Land converted to Private
Property through Prescription
Alienable public land held by a
possessor
personally/through
predecessors-in-interest,
openly,
continuously and exclusively for 30
years is CONVERTED to private
property by the mere lapse or
completion of the period. The
application for confirmation is mere
formality, because land had already
been converted, giving rise to a
registrable title. [Director of Lands v.
IAC(1986)]
Private Ownership
Can be exercised by the State in its private
capacity or by private persons.
Kinds
(1) Patrimonial property - Property owned by the
State and its political subdivisions in their
private capacity; all property of the State
not included in NCC 420 (on public
dominion) [NCC 421-424]
PAGE 88
UP LAW BOC
PROPERTY
BASED ON
[NCC 418]
CIVIL LAW
(1)
(2)
(3)
(4)
OTHER CLASSIFICATIONS
BY THEIR PHYSICAL EXISTENCE
(1) Corporeal
All property the existence of which can be
determined by the senses. (res qui tangi
possunt)
(2)
Incorporeal
(a) Things having abstract existence,
created by man and representing value.
(b) Includes rights over incorporeal things,
credits, and real rights other than
ownership over corporeal things.
CONSUMABILITY
NON-CONSUMABLE
All others not falling under consumable e.g.
money in coin.
BY SUSCEPTIBILITY TO DETERIORATION
(1) Deteriorable
Those that deteriorate through use or by
time.
(2) Non-deteriorable.
BASED ON SUSCEPTIBILITY TO
SUBSTITUTION
Only applies to movables, determined by the
intention of the parties.
FUNGIBLES
Things that, because of their nature or the will
of the parties, are capable of being substituted
by others of the same kind, not having a distinct
individuality.
NON-FUNGIBLES
(1) Things that cannot be substituted for
another;
(2) If the parties agreed that the same thing be
returned, it is not fungible.
PAGE 89
UP LAW BOC
PROPERTY
RIGHT IN GENERAL
BY REASON OF DESIGNATION
(1) Generic
That which indicates its homogenous
nature, but not the individual such as a
horse, house, dress, without indicating it.
(2) Specific
That which indicates the specie or its nature
and the individual, such as the white horse
of X.
Ownership
DEFINITION AND CONCEPT
[NCC
428]
CIVIL LAW
PROTECTING PROPERTY
Independent
right
of
exclusive
enjoyment and control of a thing.
Has the purpose of deriving all
advantages required by the reasonable
needs of the owner/holder of right and
promotion of general welfare.
A complete subjection to an owners
will.
May be exercised in everything not
prohibited by public law or the rights of
another.
BASIC DISTINCTIONS
REAL RIGHT v. PERSONAL RIGHT
Real Rights
Rights that confer upon its holder an
autonomous power to derive directly from a
thing
certain
economic
advantages
independently of whoever the possessor of the
thing.
TYPES OF OWNERSHIP
Personal Rights
Rights of a person to demand from another as a
definite passive subject, the fulfillment of a
prestation to give, to do or not to do.
Real Rights
Definite active subject
who has a right against
ALL persons generally
as an indefinite passive
subject.
PAGE 90
Personal Rights
Definite active subject
(creditor)
and
a
definite
passive
subject (debtor).
UP LAW BOC
PROPERTY
Real Rights
Personal Rights
Object is generally a Subject matter is
corporeal thing.
always an incorporeal
thing.
Generally extinguished Personal
right
by
the
loss
or survives the subject
destruction of the thing matter.
over which it is
exercised.
It is directed against It is binding or
the whole world, giving enforceable
only
rise to real actions against a particular
against 3rd persons.
person giving rise to
personal
actions
against such debtor.
CIVIL LAW
Accion Interdictal
A summary action for recovery of physical
possession through either an action for Forcible
Entry or Unlawful Detainer.
Prior physical possession by the plaintiff
is not required.
The action must be filed within 1 year
AFTER
dispossession/unlawful
possession/demand to vacate.
Real action
Actions affecting title to or possession of real
property or any interest therein.
Personal action
All other actions.
ACTION IN REM v. ACTION IN PERSONAM v.
ACTION QUASI IN REM
Action in rem
Action against a property, judgment binding
against the whole world.
Action in personam
Action against a specific person, judgment
binding against that particular person.
Action quasi in rem
Action against a specific property with respect
to a person.
REMEDIES
DOCTRINE OF SELF-HELP [NCC 429-430]
The owner may use such force as may be
reasonably necessary to repel or prevent an
actual or threatened unlawful physical
invasion or usurpation of his property.
Every owner may enclose or fence his land or
tenements by any other means without
detriment to servitudes constituted thereon.
PAGE 91
UP LAW BOC
PROPERTY
Movable property
CIVIL LAW
TAXATION
Forced contribution to the operation of
government.
Replevin
For manual delivery of property
Prescription of Right: 4 years (GF) or 8 years
(BF)
EMINENT DOMAIN
Property taken for public use/purpose, but
subject to due process and payment of just
compensation.
SPECIFIC LIMITATIONS
Imposed by law, sic utere tuo, nuisance, state of
necessity, easements, and those voluntarily
imposed by the owner: servitudes, mortgages
imposed by contract.
LIMITATIONS ON OWNERSHIP
LIMITATIONS ON THE RIGHT OF
OWNERSHIP PROVIDED BY THE LAW
GENERAL LIMITATIONS
Taxation, eminent domain, police power
POLICE POWER
Property taken with no compensation for
general welfare.
When any property is condemned or seized by
competent authority in the interest of health,
safety or security, the owner thereof shall not
be entitled to compensation, unless he can
show that such condemnation or seizure is
unjustified. [Art. 436, Civil Code]
PAGE 92
UP LAW BOC
PROPERTY
CIVIL LAW
Venue
Summon
Real Action
In personam
Real Action
In personam
Real Action
In personam
Prayer
Basis
Possession Prior
physical
possession
Possession Real right of
Possession
Possession Ownership
Accion Reividicatoria
Reconveyance
Quieting of Title
Replevin
Prescription
1 year
10 years
[NCC 555(4)]
GF: 10 years
BF: 30 years
[NCC 1137]
Unless--Torrens Title -- Unless
laches
Real Action
In personam
Title
Real Action
Quasi-in rem
Personal
Action
In personam
Quieting
Ownership
of Title
Possession Ownership
PAGE 93
Ownership
10 years
(NCC 1456)
Imprescriptible
GF: 4 years
BF: 8 years
UP LAW BOC
PROPERTY
Accession
Accession the right by virtue of which the
owner of a thing becomes the owner of
everything that is produced thereby, or which is
incorporated or attached thereto, either
naturally or artificially. [NCC 440]
Accessories things joined to or included with
the principal thing for the latters
embellishment, better use, or completion.
CLASSIFICATION OF
ACCESSION
(1) Accession Discreta (fruits) the right
pertaining to the owner of a thing over
everything produced thereby (by internal
forces).
(2) Accession Continua the right pertaining to
the owner of a thing over everything that is
incorporated or attached thereto either
naturally or artificially; by external forces (by
external forces).
(a) Over Immovables
(i) Industrial
(ii) Natural
(1) Alluvion
(2) Avulsion
(3) Change of Course of River
(4) Formation of Islands
(b) Over Movables
(i) Conjunction and Adjunction
(ii) Commixtion and Confusion
(iii) Specification
CIVIL LAW
PAGE 94
UP LAW BOC
PROPERTY
CIVIL LAW
Effect:
The riparian owner automatically owns the
Alluvion BUT it does not automatically
become registered property. [Reynante v CA
(1992)]
Presumptions:
(a) All works, sowing and planting are
presumed made by the owner.
(b) All works are presumed made at the
owners expense, unless the contrary is
proved.
(c) The owner of the principal thing owns
the natural, industrial and civil fruits,
except when the following persons exist:
(i) Possessor in Good Faith
(ii) Usufructuary
(iii) Lessee
(iv) Antichretic creditor
Rationale
To offset the owners loss from possible
erosion due to the current of the river;
To compensate for the subjection of the
land to encumbrances and legal
easements.
(b) Avulsion: A portion of land is segregated
from one estate by the forceful current of a
river, creek or torrent and transferred to
another.
PAGE 95
UP LAW BOC
PROPERTY
Requisites:
(1) Segregation and transfer of land is
sudden and abrupt;
(2) Caused by the current of the water;
and
(3) The portion of land transported
must be known and identifiable.
OR
(4) Can also apply to sudden transfer
by other forces of nature such as
land transferred from a mountain
slope because of an earthquake.
CIVIL LAW
Effect:
The ownership of the detached property
is retained by the owner subject to
removal within 2 years from the
detachment.
Requisites:
(1) Change in the natural course of the
waters of the river; and
(2) Such
change
causes
the
abandonment of the river beds.
Natural Bed: ground covered by its
waters during ordinary floods.
(3) Such change is sudden or abrupt
Results:
(i) Owners whose lands are occupied
by the new course automatically
become owners of the old bed, in
proportion to the area they lost
(ii) Owners of the lands adjoining the
old bed are given the right to
acquire the same by paying the
value of the land.
*Not exceeding the value of the land
invaded by the new bed (the old
property of the owner)
(iii) The new bed opened by the river on
a private estate shall become of
public dominion.
PAGE 96
UP LAW BOC
PROPERTY
CIVIL LAW
Landowner
Good Faith
Bad Faith
Bad Faith
Builder,
Planter,
Sower
[BPS]
Good Faith
Options:
Options:
(a) Appropriate the improvements without
paying indemnity;
(b) Demolish/Removal of the work of BPS
at the expense of BPS;
(c) Sell to BP; or
(d) Rent to the S
Absolute right to Damages from BPS.
PAGE 97
SAME AS
GF: GF
UP LAW BOC
PROPERTY
CIVIL LAW
Landowner
Good Faith
Material
Man
Good
Faith
Bad
Faith
Bad Faith
Landowner
Good faith
Options:
(a) Right to acquire
improvements and pay
indemnity to BPS; subsidiarily
liable to OM;
(b) Sell the land to BP except if
the value of the land is
considerably more; or
(c) Rent to sower.
Good faith
Options:
(a) Right to acquire
improvements and pay
indemnity to BPS;
(b) Sell land to BP except if the
value of the land is
considerably more; or
(c) Rent to sower.
Good faith
(1) Landowner has right to collect
damages from BPS in any
case and the option to either:
(a) Acquire improvements
w/o paying for indemnity;
(b) Demolition or restoration;
or
(c) Sell to BP, or to rent to
sower
(2) Pay necessary expenses to
BPS.
BPS
SAME AS
GF: GF
Owner of Material
Good faith
Good faith
(1) Right of retention until (1) Collect value of material
necessary and useful expenses
primarily from BPS and
are paid;
subsidiarily to landowner if
(2) To pay value of materials to
BPS is insolvent; and
OM.
(2) Limited right of removal (if
the removal will not cause
any injury)
Good faith
Bad faith
(1) Right of retention until (1) Lose the material without
necessary
and
useful
right to indemnity.
expenses are paid.
(2) Must pay for damages to
(2) Keep BPS without indemnity
BPS.
to OM and collect damages
from him.
Bad faith
Bad faith
Recover necessary expenses for (1) Recover value from BPS (as if
preservation of land from
both are in good faith)
landowner unless landowner (2) If BPS acquires improvement,
sells land.
remove materials if feasible
w/o injury
(3) No action against landowner
but may be liable to
landowner for consequential
damages
PAGE 98
UP LAW BOC
PROPERTY
CIVIL LAW
Landowner
BPS
Owner of Material
Bad faith
Same as when all acted in good
faith under Article 453
Bad faith
(1) Acquire improvement after
paying indemnity and
damages to BPS unless the
latter decides to remove.
(2) Subsidiarily liable to OM for
value of materials.
Bad faith
Options:
(a) Acquire improvements after
indemnity; subsidiarily liable
to OM for value of materials;
(b) Sell the land to BP except if
the value of the land is
considerably more; or
(c) Rent to sower.
Good faith
(1) Landowner has right to collect
damages from BPS in any
case and the option to either:
(a) Acquire improvements
w/o paying for indemnity;
(b) Demolition or restoration;
or
(c) Sell to BP, or to rent to
sower
(2) Pay necessary expenses to
BPS.
(3) Subsidiarily liable to OM.
Bad faith
Acquire improvements and pay
indemnity and damages to BPS
unless the latter decides to
remove materials.
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) May remove improvements.
(2) Be indemnified for damages
in any event.
(3) Pay OM the value of the
materials.
Bad faith
Same as when all acted in good
faith under Article 453
Good faith
(1) Remove materials if possible
w/o injury
(2) Collect value of materials
from BPS; subsidiarily from
landowner
Bad faith
(a) Right of retention until
necessary expenses are paid.
(b) Pay value of materials to OM
and pay him damages.
Good faith
(a) Collect value of materials
primarily from BPS and
subsidiarily from landowner.
(b) Collect damages from BPS.
(c) Absolute right to remove
materials in any event.
Bad faith
(1) Right to necessary expenses.
(2) Pay value of materials to OM.
(3) Pay damages to OM/LO.
Good faith
(1) Collect value of materials
primarily from BPS and
subsidiarily from landowner
(2) Collect damages from BPS
(3) If BPS acquires
improvements, absolute right
of removal in any event.
Good faith
(1) Receive indemnity for
damages.
(2) Absolute right of removal of
improvements in any event.
Bad faith
(1) No right to indemnity.
(2) Loses right to material.
PAGE 99
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 100
UP LAW BOC
PROPERTY
CIVIL LAW
Definition:
Takes place when the work of a person is done on
the material of another, such material, in
consequence of the work itself, undergoes a
transformation.
Rules:
IN GENERAL
Specification
Exception:
If the material is more valuable than the new
thing, the owner of the material may choose:
(a) To take the new thing but must pay for
the work or labor; or
PURPOSE
(1) To declare:
(a) The invalidity of a claim on a title; or
(b) The invalidity of an interest in property.
PAGE 101
UP LAW BOC
PROPERTY
REQUIREMENTS
REQUISITES OF AN ACTION TO QUIET
TITLE
CIVIL LAW
PAGE 102
UP LAW BOC
PROPERTY
PRESCRIPTION/NONPRESCRIPTION OF ACTION
Co-ownership
DEFINITION
The form of ownership when the ownership of an
undivided thing or right belongs to different
persons. [NCC 484]
REQUISITES
(1) Plurality of owners ;
(2) Object must be an undivided thing or right ;
and
(3) Each co-owners right must be limited only to
his ideal or abstract share of the physical
whole.
PRESCRIPTION OF ACTION
(1) Contracts ;
(2) Special laws; and
(3) The Civil Code
CIVIL LAW
CHARACTERISTICS OF COOWNERSHIP
(1) There are 2 or more co-owners.
(2) There is a single object which is not materially
or physically divided and over which and his
ideal share of the whole.
(3) There is no mutual representation by the coowners.
(4) It exists for the common enjoyment of the coowners.
(5) It has no distinct legal personality.
(6) It is governed first of all by the contract of the
parties; otherwise, by special legal provisions,
and in default of such provisions, by the
provisions of Title III on Co-ownership.
There are ideal shares defined but not
physically identified [NCC 485]
(1) The share of the co-owners, in the benefits as
well as in the charges, shall be proportional to
their respective interests.
(2) Any stipulation in a contract to the contrary
shall be void.
(3) The portions belonging to the co-owners in
the co-ownership shall be presumed equal,
unless the contrary is proved.
PAGE 103
UP LAW BOC
PROPERTY
CIVIL LAW
(3) Easement of Party Wall: co-ownership of partowners of a party wall (NCC 658)
SOURCES OF CO-OWNERSHIP
Law,
contract,
succession,
testamentary
disposition or donation inter vivos, fortuitous
event or chance, and by occupancy
LAW
CONTRACT
By Agreement of Two or More Persons
PAGE 104
UP LAW BOC
PROPERTY
CIVIL LAW
BY FORTUITOUS EVENT OR BY
CHANCE
BY OCCUPANCY
SUCCESSION
TESTAMENTARY DISPOSITION OR
DONATION INTER VIVOS
RIGHTS OF CO-OWNERS
RIGHT TO SHARE IN THE BENEFITS AS
WELL AS THE CHARGES [NCC 485]
Limitations:
That he use the thing in accordance with the
purpose for which it is intended.
That he uses it in such a way as to not injure the
interest of the co-ownership or prevent the other
co-owners from using it.
PAGE 105
UP LAW BOC
PROPERTY
CIVIL LAW
RULES
ON RENUNCIATION
EMBELLISHMENTS OR
IMPROVEMENTS
PAGE 106
UP LAW BOC
PROPERTY
CIVIL LAW
PARTITION OR DIVISION
TERMINATION/
EXTINGUISHMENT
TOTAL DESTRUCTION OF THING OR LOSS OF
THE PROPERTY CO-OWNED
Is there still co-ownership if a building is
destroyed?Yes, over the land and the debris.
MERGER OF ALL INTERESTS IN ONE PERSON
ACQUISITIVE PRESCRIPTION
By whom
(1)
A third person. [NCC 1106]
(2)
A co-owner against the other co-owners.
Requisites for acquisitive prescription against coowners [Adille v CA (1988)]:
(1) A co-owner repudiates the co-ownership;
(2) The act of repudiation is clearly made known
to other co-owners;
(3) The evidence thereon is clear and conclusive;
and
(4) The co-owner has been in possession thru
open, continuous, exclusive and notorious
possession of the property for the period
required by law.
Note: there is a presumption that possession of a
co-owner is NOT adverse
PAGE 107
UP LAW BOC
PROPERTY
Right of Possession
(jus possessionis)
Independent right
Right to possess
(jus possidendi)
Incident to
ownership
CHARACTERISTICS
Possession
DEFINITION
The holding of a thing or the enjoyment of a right.
[NCC 523]
CONCEPT OF POSSESSION
CIVIL LAW
ESSENTIAL
POSSESSION
REQUISITES
OF
DEGREES OF POSSESSION
PAGE 108
UP LAW BOC
PROPERTY
CASES OF POSSESSION
Possession for Oneself, or Possession
Exercised in Ones Own Name and Possession
in the Name of Another [NCC 524]
(1) In ones own name the fact of possession and
the right to such possession is found in the
same person.
(2) In the name of another the one in actual
possession is without any right of his own, but
is merely an instrument of another in the
exercise of the latters possession.
Kinds of possession in the name of another
(a) Necessary arises by operation of law
e.g. representatives who exercise possession
in behalf of a conceived child, juridical
persons, persons not sui juris and the conjugal
partnership
(b) Voluntary effected through the mutual
consent of the parties
(i) e.g. agents or administrators appointed
by the owner or possessor.
(ii) Third person may also voluntary exercise
possession in the name of another, but it
does not become effective unless ratified
by the person in whose name it is
exercised.
CIVIL LAW
PAGE 109
UP LAW BOC
PROPERTY
CIVIL LAW
ACQUISITION OF POSSESSION
WAYS OF ACQUIRING POSSESSION
[NCC 531]
PAGE 110
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 111
UP LAW BOC
PROPERTY
CIVIL LAW
EFFECTS OF POSSESSION
OBLIGATIONS OF A POSSESSOR IN
GOOD FAITH
PAGE 112
UP LAW BOC
PROPERTY
OBLIGATIONS OF A POSSESSOR IN
GOOD FAITH
CIVIL LAW
PAGE 113
UP LAW BOC
PROPERTY
CIVIL LAW
ENTITLEMENT
TO
FRUITS
PAGE 114
UP LAW BOC
PROPERTY
USEFUL EXPENSES
(1) Incurred to give greater utility or productivity
to the thing, e.g. Wall surrounding an estate,
an irrigation system, planting in an
uncultivated land, a fishpond, an elevator in
the building, electric lighting system
(2) They are reimbursed only to the possessor in
GF as a compensation or reward for him. A
possessor in BF cannot recover such
expenses.
(3) If the useful improvements can be removed
without damage to the principal thing, the
possessor in good faith may remove them,
unless the person who recovers the
possession refunds the expenses or pays the
increase in value which the thing may have
acquired by reason thereof.
EXPENSES FOR LUXURY
(1) They do not affect the existence or the
substance of the thing itself, but only the
comfort, convenience or enjoyment of the
possessor.
(2) They are not the subject of reimbursement,
because the law does not compensate
personal whims or caprices, e.g. Opening of a
garden, placing fountains and statues in it,
adorning the ceilings with paintings, and the
walls with reliefs.
Useful Expenses
CIVIL LAW
Note:
(1) Costs of litigation over the property shall be
borne by every possessor. [NCC 550]
(2) Improvements caused by nature or time shall
always inure to the benefit of the person who
has succeeded in recovering possession [NCC
551]
Includes all the natural accessions referred
to by articles 457-465, and all those that do
not depend upon the will of the possessor.
(e.g. widening of the streets, rising of
fountains of fresh or mineral water, increase
of foliage of trees)
Possessor in GF
Possessor in BF
Fruits Received
Entitled to the fruits
Must reimburse the
while possession is in
legitimate possessor
GF and before legal
(549)
interruption (544)
Pending Fruits
Entitled to part of the
expenses of cultivation,
and to a part of the net
harvest, in proportion
to the time of the
possession.
PAGE 115
to
and
Reimbursement only
the
(546)
UP LAW BOC
PROPERTY
Possessor in GF
Possessor in BF
Useful Expenses
Right of retention until
reimbursed; Owners
option to reimburse
him either for expenses
or for increase in value
which the thing may
have acquired (546)
No
right
to
reimbursement and no
Limited
right
of right of removal (547)
removal should not
damage principal and
owner
does
not
exercise option of
paying the expenses or
increase in value (547)
Ornamental Expenses
Limited
right
removal (548)
of Limited
right
removal (549)
of
Deterioration or Loss
No liability unless due
to fraud or negligence Liable in every case
after becoming in BF (552)
(552)
Costs of Litigation
Bears cost (550)
CIVIL LAW
PAGE 116
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 117
UP LAW BOC
PROPERTY
LOSS/TERMINATION OF
POSSESSION [NCC 555]
(1) By the abandonment of the thing;
(2) By an assignment made to another either by
onerous or gratuitous title;
(3) By the destruction or total loss of the thing, or
because it goes out of commerce;
CIVIL LAW
ABANDONMENT
POSSESSION
BY
ANOTHER;
IF
POSSESION HAS LASTED LONGER
THAN ONE YEAR; REAL RIGHT OF
POSSESSION NOT LOST AFTER 10
YEARS SUBJECT TO NCC 537
PAGE 118
UP LAW BOC
PROPERTY
KINDS OF ANIMALS
Usufruct
CONCEPT [NCC 562]
Usufruct gives a right to enjoy the property of
another with the obligation of preserving its form
and substance, unless the title constituting it or
the law otherwise provides.
OBJECTS OF USUFRUCT
CIVIL LAW
CHARACTERISTICS
(1) It is a real right;
(2) Of temporary duration;
(3) The purpose is to derive all advantages from
the thing due to normal exploitation.
NATURAL CHARACTERISTICS
CLASSIFICATION
BY ORIGIN
PAGE 119
UP LAW BOC
PROPERTY
BY OBJECT OF USUFRUCT
Usufruct may be constituted on the whole or a
part of the fruits of the thing or on a right,
provided it is not strictly personal or
intransmissible. [NCC 564]
RIGHTS
(1) Must not be strictly personal or
intransmissible.
(2) Usufruct over a real right is by itself a real
right.
(a) Right to receive present or future support
cannot be the object of the usufruct.
THINGS
(1) Normal: involves non-consummable things
where the form and substance are preserved.
(2) Abnormal or irregular: when the usufruct
includes things which cannot be used without
being consumed.
(a) The usufructuary has right to make use of
them under the obligation of paying their
appraised value at the termination of the
usufruct, if they were appraised when
delivered.
CIVIL LAW
AS TO THE FRUITS
(1) Total: all consumed by the usufruct.
(2) Partial: only on certain aspects of the
usufructs fruits.
AS TO THE OBJECT
(1) Singular: only on particular property of the
owner.
(2) Universal: pertains to the whole property;
A universal usufructuary must pay the debts
of the naked owner, if stipulated. Article 758
and 759 on donations apply.
PAGE 120
UP LAW BOC
PROPERTY
CIVIL LAW
Without
need
to The
owner
shall
reimburse the expenses reimburse
to
the
to the owners
usufructuary ordinary
cultivation
expenses
from the proceeds of
the fruits (not to exceed
the value of the fruits)
PAGE 121
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 122
UP LAW BOC
PROPERTY
OBLIGATIONS
AT THE BEGINNING OF THE USUFRUCT OR
BEFORE EXERCISING THE USUFRUCT
(1) To make, after notice to the owner or his
legitimate representative, an inventory of all
CIVIL LAW
PAGE 123
UP LAW BOC
PROPERTY
CIVIL LAW
Ordinary repairs:
(a) Such as are required by the wear and tear
due to the natural use of the thing and
are indispensable for its preservation;
(b) Deteriorations or defects arise from the
natural use of the thing;
(c) Repairs are necessary for the preservation
of the thing.
PAGE 124
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 125
UP LAW BOC
PROPERTY
CIVIL LAW
USUFRUCT
ON
PROPERTY [NCC 600]
MORTGAGED
USUFRUCT
OVER
AN
PATRIMONY [NCC 598]
ENTIRE
Applies when:
(1) The usufruct is a universal one
(2) And the naked owner Has debts or is
obliged to make periodical payments
(whether or not there be known capital)
General rule: The usufructuary is not liable for the
owners debts.
Exceptions:
(1) When it is so stipulated; in which case the
usufructuary shall be liable for the debt
specified;
(2) If there is no specification, he is liable only for
debts incurred by the owner before the
usufruct was constituted; or
(3) When the usufruct is constituted in fraud of
creditors.
In no case shall the usufructuary be responsible
for debts exceeding the benefits under the
usufruct. (except when the contrary intention
appears)
PAGE 126
UP LAW BOC
PROPERTY
USUFRUCT
OVER
PROPERTY [NCC 574]
CONSUMABLE
EXTINGUISHMENT/
TERMINATION [NCC 603]
CIVIL LAW
DEATH OF USUFRUCTUARY
EXCEPTIONS
(1) In multiple usufructs: it ends at the death of
the last survivor (NCC 611)
(a) If simultaneously constituted: all the
usufructuaries must be alive (or at least
conceived) at the time of constitution.
(b) If successively constituted:
(i) If by virtue of donation all the
donees-usufructuaries must be living
at the time of the donation;
(ii) If by will there should only be 2
successive usufructuaries and both
must have been alive at the time of
testators death.
(2) If the period is fixed by reference to the life of
another or there is a resolutory condition.
Death does not affect the usufruct and the
right is transmitted to the heirs of the
usufructuary until the expiration of the term
or the fulfillment of the condition.
(3) When a contrary intention clearly appears:
(a) If the usufructuary dies before the
happening of a resolutory condition, the
usufruct is extinguished.
(b) Usufruct is personal and it CANNOT be
extended beyond the lifetime of the
usufructuary. [Sanchez Roman and SC]
EXPIRATION
OF
PERIOD
OR
FULFILLMENT
OF
RESOLUTORY
CONDITION IMPOSED ON USUFRUCT
BY
PERSON
CONSTITUTING
USUFRUCT
PAGE 127
UP LAW BOC
PROPERTY
RENUNCIATION OF USUFRUCT
(1) Waiver: A voluntary surrender of the rights of
the usufructuary, made by him with the intent
to surrender them.
(2) Limitations:
(a) Must be express: tacit renunciation is not
sufficient;
(b) Does not need the consent of naked
owner; and
(c) If made in fraud of creditors, they may
rescind the waiver through an action
under Article 1381 (accion pauliana).
CIVIL LAW
Situation
Art. 608
If destroyed property is insured before termination of
the usufruct
When insurance
If
owner
rebuilds,
premium paid by owner usufruct subsists on
and usufructuary (par. 1) new building.
If owner does not
rebuild, interest upon
insurance
proceeds
paid to usufructuary.
When the insurance
taken by the naked
owner only because
usufructuary refuses to
contribute
to
the
premium (par. 2)
Owner
entitled
to
insurance money (no
interest
paid
to
usufructuary).
If he does not rebuild,
usufruct continues over
remaining land and/or
owner may pay interest
on value of both
materials and land
(607).
If
owner
rebuilds,
usufruct
does
not
continue
on
new
building, but owner
must pay interest on
value of land and old
materials.
Insurance
proceeds
goes
to
the
usufructuary.
No
obligation
to
rebuild.
Usufruct continues on
the land.
Owner has no share in
insurance proceeds.
Effect
Art. 607
If destroyed property is not insured
If the building forms Usufruct continues over
part of an immovable the land and materials
under usufruct
(plus interests), if owner
does not rebuild.
If usufruct is on the Usufruct continues over
building only
the land and materials
(plus interests), if owner
does not rebuild.
If
owner
rebuilds,
usufructuary
must
allow owner to occupy
the land and to make
use of materials; but
the owner must pay
interest on the value of
both the land and the
materials.
Effect
PRESCRIPTION
PAGE 128
UP LAW BOC
PROPERTY
CONDITIONS
USUFRUCT
NOT
EXPRORPIATION
OF
USUFRUCT [NCC 609]
AFFECTING
THING
IN
3 SITUATIONS
(1) If naked owner alone was given the indemnity,
he has the option:
(a) To replace with equivalent thing; or
(b) To pay to the usufructuary legal interest
on the indemnity. This requires a security
to be given by the naked owner for the
payment of the interest.
(2) If both the naked owner and the usufructuary
were separately given indemnity, each owns
the indemnity given to him, the usufruct being
totally extinguished.
(3) If usufructuary alone was given the indemnity,
he must give it to the naked owner and
compel the latter to return either the interest
or to replace the property. He may even
deduct the interest himself, if the naked
owner fails to object.
CIVIL LAW
Easement
(1) An encumbrance imposed upon an
immovable for the benefit of another
immovable belonging to a different owner.
[NCC. 613]
(2) A real right which burdens a thing with a
prestation of determinate servitudes for the
exclusive enjoyment of one who is NOT an
owner of a tenement.
(3) A real right by virtue of which the owner has
to ABSTAIN from doing or ALLOW somebody
else to do something to his property for the
benefit of another.
Dominant Estate the immovable in favor of
which the easement is established.
Servient Estate the immovable which is subject
to the easement .
CHARACTERISTICS
ESSENTIAL FEATURES:
PAGE 129
UP LAW BOC
PROPERTY
CIVIL LAW
CLASSIFICATION
AS TO RECIPIENT OF BENEFITS
AS TO CAUSE OR ORIGIN
PAGE 130
UP LAW BOC
PROPERTY
and
RELEVANCE OF
CLASSIFICATIONS
DETERMINES WHAT EASEMENTS CAN
BE ACQUIRED BY PRESCRIPTION
GENERAL RULES
CIVIL LAW
PAGE 131
UP LAW BOC
PROPERTY
CIVIL LAW
BY
WILL
OF
THE
(VOLUNTARY EASEMENTS)
OWNERS
CREATION
LEGAL EASEMENTS
BY TITLE
BY PRESCRIPTION
VOLUNTARY EASEMENTS
PAGE 132
UP LAW BOC
PROPERTY
OF
DOMINANT
ESTATE
CIVIL LAW
PAGE 133
UP LAW BOC
PROPERTY
NATURAL DRAINAGE
RIPARIAN BANKS
CIVIL LAW
DRAINAGE OF BUILDINGS
DAM
DRAWING WATER
AQUEDUCT
(1) Any person who may wish to use upon his own
estate any water of which he can dispose shall
have the right to make it flow through the
intervening estates, with the obligation to
indemnify their owners, as well as the owners
of the lower estates upon which the waters
may filter or descend.
PAGE 134
UP LAW BOC
PROPERTY
CIVIL LAW
SLUICE GATE
RIGHT OF WAY
WHO MAY DEMAND
(1) The owner of the dominant estate; or
(2) Any person with the real right to cultivate or
use the dominant estate e.g. a usufructuary.
Note: a lessee cannot demand such easement,
because the lessor is the one bound to
maintain him in the enjoyment of the property.
REQUISITES
(1) The dominant estate is surrounded by other
immovables owned by other persons;
PAGE 135
UP LAW BOC
PROPERTY
Consists of the
damages only.
Necessary repairs
Dominant owner
spend on such.
to Servient owner to
spend on such.
Share in taxes
The dominant owner
shall reimburse a
proportionate share of
taxes to the proprietor
of the servient estate.
Servient owner
spend on such.
to
EXTINGUISHMENT
(1) The owner has joined the dominant estate to
another abutting the public road.
(2) A new road is opened giving access to the
isolated estate.
CIVIL LAW
Notes on extinguishment:
(1) Extinguishment is NOT automatic. The owner
of the servient estate must ask for such
extinguishment.
(2) Indemnity paid to the servient owner must be
returned:
(a) If easement is permanent: value of the land
must be returned
(b) If easement is temporary: nothing is to be
returned
SPECIAL RIGHTS OF WAY
(1) Right of way to carry materials for the
construction, repair, improvement, alteration or
beautification of a building through the estate
of another.
(2) Right of way to raise on anothers land
scaffolding or other objects necessary for the
work.
(a) If it be indispensable for the construction,
repair,
improvement,
alteration
or
beautification of a building, to carry
materials through the estate of another, or
to raise therein scaffolding or other objects
necessary for the work, the owner of such
estate shall be obliged to permit the act,
after receiving payment of the proper
indemnity for the damage caused him. [NCC
656]
(3) Right of way for the passage of livestock
known as animal path, animal trail, watering
places, resting places, animal folds. [NCC 657]
(a) Easements of the right of way for the
passage of livestock known as animal path,
animal trail or any other, and those for
watering places, resting places and animal
folds, shall be governed by the ordinances
and regulations relating thereto, and, in the
absence thereof, by the usages and customs
of the place.
(b) Without prejudice to rights legally acquired,
the animal path shall not exceed in any case
the width of 75 meters, and the animal trail
that of 37 meters and 50 centimeters.
(c) Whenever it is necessary to establish a
compulsory easement of the right of way or
for a watering place for animals, the
provisions of this Section and those of
Articles 640 and 641 shall be observed. In
this case the width shall not exceed 10
meters
PAGE 136
UP LAW BOC
PROPERTY
PARTY WALL
Refers to all those mass of rights and obligations
emanating from the existence and common
enjoyment of wall, fence, enclosures or hedges, by
the owners of adjacent buildings and estates
separated by such objects.
NATURE
(1) A common wall which separates two estates,
built by common agreement at the dividing
line such that it occupies a portion of both
estates on equal parts.
(2) A party wall is a special form of co-ownership
(a kind of compulsory co-ownership).
(a) Each owner owns part of the wall but it
cannot be separated from the other
portions belonging to the others. A party
wall has a special characteristic that makes
it more of an easement as it is called by law.
(b) An owner may use a party wall to the extent
of the portion on his property.
Co-Ownership
Party Wall
Before
division
of
shares, a co-owner
cannot point to any
definite portion of the
property as belonging to
him.
CIVIL LAW
PAGE 137
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 138
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 139
UP LAW BOC
PROPERTY
MODES OF ACQUIRING
EASEMENT
CIVIL LAW
MERGER
BY TITLE
BY PRESCRIPTION
Requisites
(1) The easement must be continuous and
apparent;
(2) The easement must have existed for 10 years;
and
(3) There is NO NEED for good faith or just title.
EXTINGUISHMENT BY IMPOSSIBILITY
OF USE
EXTINGUISHMENT OF
EASEMENTS
(1) By merger in the same person of the ownership
of the dominant and servient estates;
(2) By nonuser for ten years;
(3) When either or both of the estates fall into
such condition that the easement cannot be
used;
(4) By the expiration of the term or the fulfillment
of the condition, if the easement is temporary
or conditional;
(5) By the renunciation of the owner of the
dominant estate; or
(6) By the redemption agreed upon between the
owners of the dominant and servient estates.
PAGE 140
UP LAW BOC
PROPERTY
CIVIL LAW
Nuisance
NUISANCE V. TRESPASS
Nuisance
Trespass
PAGE 141
Injury is immediate.
UP LAW BOC
PROPERTY
NUISANCE V. NEGLIGENCE
Nuisance
Negligence
Whether
it
was
unreasonable for the
defendant to act as he
did in view of the
threatened danger or
harm
to
one
in
plaintiffs position.
Whether
the
defendants use of his
property
was
unreasonable as to
plaintiff, without regard
to foreseeability of
injury.
Liability
for
the Liability is based on a
resulting
injury
to want of proper care
others regardless of the
degree of care or skill
exercised to avoid such
injury.
Principles
ordinarily
apply where the cause
of
action
is
for
continuing harm caused
by
continuing
or
recurrent acts which
cause discomfort or
annoyance to plaintiff in
the use of his property.
Principles
ordinarily
apply where the cause
of action is for harm
resulting from one act
which
created
an
unreasonable risk of
injury.
CLASSES
ACCORDING TO NATURE
CIVIL LAW
Per accidens
is Proof of the act and its
of consequences
are
It necessary.
as
DOCTRINE
NUISANCE
OF
ATTRACTIVE
PAGE 142
UP LAW BOC
PROPERTY
LIABILITY OF TRANSFEREES
NATURE OF LIABILITY
CIVIL LAW
and
damages
are
cumulative
NO PRESCRIPTION
REGULATION OF NUISANCES
PUBLIC NUISANCE
Remedies
The remedies against a public nuisance are:
(1) A prosecution under the Penal Code or any
local ordinance:
(2) A civil action; or
(3) Extrajudicial abatement.
(a) It must be reasonably and efficiently
exercised
(b) Means employed must not be unduly
oppressive on individuals, and
(c) No more injury must be done to the
property or rights of individuals than is
necessary to accomplish the abatement.
(d) No right to compensation if property taken
or destroyed is a nuisance.
Action for Abatement
(1) The district health officer shall take care that
one or all of the remedies against a public
nuisance are availed of.
(2) If a civil action is brought by reason of the
maintenance of a public nuisance, such action
shall be commenced by the city or municipal
mayor.
(3) The district health officer shall determine
whether or not abatement, without judicial
proceedings, is the best remedy against a
public nuisance.
(4) A private person may file an action on account
of a public nuisance if it is especially injurious
to him.
PAGE 143
UP LAW BOC
PROPERTY
CIVIL LAW
PRIVATE NUISANCE
Remedies
The remedies against a private nuisance are:
(1) A civil action; or
(2) Extrajudicial abatement.
(a) The procedure for extrajudicial abatement
of a public nuisance by a private person will
also be followed.
(b) The person extrajudicially abating a
nuisance liable for damages if:
(i) If he causes unnecessary injury; or
(ii) If an alleged nuisance is later declared
by the courts to be not a real nuisance.
Remedies of the property owner
A person whose property is seized or destroyed as
a nuisance may resort to the courts to determine
whether or not it was in fact a nuisance.
(1) An action for replevin;
(2) To enjoin the sale or destruction of the
property;
(3) An action for the proceeds of its sale and
damages if it has been sold; or
(4) To enjoin private parties from proceeding to
abate a supposed nuisance.
Modes of Acqiring
Ownership
(1) Occupation
(2) By operation of Law
(3) Donation
(4) Tradition
(5) Intellectual Property
(6) Prescription
(7) Succession
Mode is a specific cause which produces dominion
and other real rights as a result of the coexistence of special status of things, capacity and
intention of persons and fulfillment of the
requisites of law.
Title is every juridical right which gives a means to
the acquisition of real rights but in itself is
insufficient to produce them.
Ownership is not transferred by contract merely
but by tradition or delivery. Contracts only
PAGE 144
UP LAW BOC
PROPERTY
Title
Directly
and Serves merely to give
immediately produces a the occasion for its
real right.
acquisition or existence.
Cause
Means
Proximate cause
Remote cause
that
is
OCCUPATION
Note: Ownership of land cannot be acquired by
occupation.
REQUISITES
KINDS
Of Animals
(1) Wild or feral animals seizure (hunting/fishing)
in open season by means NOT prohibited.
(2) Tamed/domesticated animals General Rule:
belong to the tamer, but upon recovering
freedom, are susceptible to occupation
UNLESS claimed within 20days from seizure
by another.
(3) Tame/domestic animals not acquired by
occupation EXCEPT when ABANDONED.
Of Other Personal Property
(1) Abandoned may be acquired
(2) Lost
(3) Hidden treasure finder gets by occupation;
landowner gets by accession; EXCEPT in
CPG system, share goes to the partnership.
CIVIL LAW
SPECIAL RULES
OCCUPATION OF A SWARM OF BEES
The owner of a swarm of bees shall have a right to
pursue them to anothers land, indemnifying the
possessor of the latter for the damage.
If the owner has not pursued the swarm, or ceases
to do so within 2 consecutive days, the possessor
of the land may occupy or retain the same.
The 20 days to be counted from their occupation
by another person. This period having expired,
they shall pertain to him who has caught and kept
them.
OCCUPATION OF DOMESTICATED ANIMALS
Wild animals are possessed only while they are
under one's control; domesticated or tamed
animals are considered domestic or tame if they
retain the habit of returning to the premises of the
possessor.
PIGEONS AND FISH
Pigeons and fish which from their respective
breeding places pass to another pertaining to a
different owner shall belong to the latter,
provided they have not been enticed by some
artifice or fraud.
HIDDEN TREASURE
He who by chance discovers hidden treasure in
anothers property: shall be allowed to the
finder.
If the finder is a trespasser, he shall not be
entitled to any share of the treasure.
If the things found be of interest to science or the
arts, the State may acquire them at their just
price, which shall be divided in conformity with the
rule stated.
LOST MOVABLES; PROCEDURE AFTER
FINDING LOST MOVABLES
Whoever finds a movable, which is not treasure,
must return it to its previous possessor.
If unknown, the finder shall immediately deposit it
with the mayor of the city or municipality where
the finding has taken place.
PAGE 145
UP LAW BOC
PROPERTY
DONATION
Donation is an act of liberality whereby a person
disposes gratuitously of a thing or right in favor of
another, who accepts it.
NATURE
CIVIL LAW
Future property
(1) Donations cannot comprehend future property.
(2) Future property is understood anything
which the donor cannot dispose of at the time
of the donation.
KINDS OF DONATIONS
AS TO ITS TAKING EFFECT
(1) Donation Inter Vivos [NCC 729]
Donation which shall take effect during the
lifetime of the donor, though the property shall
not be delivered till after the donor's death.
REQUISITES
PAGE 146
UP LAW BOC
PROPERTY
CIVIL LAW
Ordinary
Propter Nuptias
Express acceptance
Necessary
Not required
As to minors
Cant be made by
minors
As to future property
Cannot include future
property
If present property is
donated and property
regime is ACP, limited
to 1/5.
Characteristics:
(a) The transferor retains ownership and control of
the property while alive;
(b) The transfer is revocable at will before his
death; and
(c)The transfer will be VOID if the transferor
should survive the transferee.
Inter Vivos v. Mortis Causa
Inter vivos
Mortis causa
As to formalities
Executed and accepted Must be in the form of
with
formalities a will, with all the
prescribed by CC.
formalities for the
validity of wills.
As to effectivity
Acceptance must be
made during the
lifetime of the donor.
PAGE 147
Acceptance must be
made after the death
of the donor, the
donation being
effective only after the
death of donor.
Acceptance during the
donors lifetime is
premature and
ineffective because
there can be no
contract regarding
future inheritance.
UP LAW BOC
PROPERTY
Inter vivos
Mortis causa
Upon acceptance by
the donee, but the
effect of such retroacts
to the time of death of
the donor.
As to revocation
Irrevocable may be Revocable upon the
revoked only for the exclusive will of the
reasons provided in CC donor.
760, 764, 765.
As to reduction or suppression
When it is excessive or
inofficious,
being
preferred, it is reduced
only after the donations
mortis causa had been
reduced or exhausted.
When it is excessive or
inofficious, it is reduced
first,
or
even
suppressed.
Notes:
The NATURE of the act, whether its one of
disposition or of execution, is CONTROLLING to
determine whether the donation is mortis causa
or inter vivos.
What is important is the TIME of TRANSFER of
ownership even if transfer of property donated
may be subject to a condition or a term.
Whether the donation is inter vivos or mortis
causa depends on whether the donor intended
to transfer ownership over the properties upon
the execution of the deed. [Gestopa v. CA
(2002)]
AS TO CAUSE OR CONSIDERATION
(1) Simple - made out of pure liberality or because
of the merits of the donee.
(2) Remuneratory - made for services already
rendered to the donor.
(3) Onerous - imposes a BURDEN inferior in value
to property donated.
(a) Improper - burden EQUAL in value to
property donated
(b) Sub-modo or modal - imposes a prestation
upon donee as to how property donated will
be applied.
(c) Mixed donations e.g. sale for price lower
than value of property.
CIVIL LAW
AS TO EFFECTIVITY OR EXTINGUISHMENT
(1) Pure donation is without conditions or
periods,
(2) Conditional donation is subject to suspensive
or resolutory conditions.
(3) With a term
FORMALITIES REQUIRED
HOW MADE AND ACCEPTED
Movable properties [NCC 748]
(1) The donation of a movable may be made orally
or in writing.
(2) Oral donation: requires the simultaneous
delivery of the thing or of the document
representing the right donated.
(3) If the value of the movable donated exceeds
P5,000, the donation and the acceptance
should be in writing, otherwise, the donation is
void.
Immovable properties [NCC 749]
(1) Must be made in a public instrument specifying
the donated property and the burdens
assumed by the donee.
(2) The acceptance must be either:
(a) In the same instrument; or
(b) In another public instrument notified to the
donor in authentic form and noted in both
deeds.
(3) Exceptions:
(a) Donations propter nuptias need no
express acceptance.
(b) Onerous donations form governed by the
rules of contracts.
PERFECTION
Acceptance
(1) Donation is perfected upon the donors learning
of the acceptance.
(2) Acceptance may be made during the lifetime of
both donor and donee.
Who May Accept
Donee: must accept personally or through an
authorized person with special power for the
purpose. [NCC 745]
Time Of Acceptance
Acceptance must be done during the lifetime of
the donor and the donee.
PAGE 148
UP LAW BOC
PROPERTY
CIVIL LAW
EFFECTS OF DONATION /
LIMITATIONS
IN GENERAL
(1) The donee may demand actual delivery of thing
donated;
PAGE 149
UP LAW BOC
PROPERTY
CIVIL LAW
PAGE 150
UP LAW BOC
PROPERTY
Inofficious Donations
(1) The donation shall be reduced with regard to
the excess.
(2) But this reduction shall not prevent the
donations from taking effect during the life of
the donor, nor shall it bar the donee from
appropriating the fruits.
(3) Only those who, at the time of the donor's
death, have a right to the legitime and their
heirs and successors-in-interest may ask for
the reduction or inofficious donations.
(4) If, there being two or more donations, the
disposable portion is not sufficient to cover all
of them, those of the more recent date shall be
suppressed or reduced with regard to the
excess.
Scope of amount [NCC 750-752]
(1) The donations may comprehend all the present
property of the donor, or part thereof.
Provided he reserves, in full ownership or in
usufruct, sufficient means for the support of
himself, and of all relatives who, at the time of
the acceptance of the donation, are by law
entitled to be supported by the donor
(2)
Donations
property.
cannot
comprehend
future
CIVIL LAW
Reduction
Total withdrawal of
Amount is only insofar
amount, whether the
as the legitime is
legitime is impaired or
prejudiced
not
PAGE 151
UP LAW BOC
PROPERTY
CIVIL LAW
Notes:
(1) Founded on moral duty: one who received a
donation must be grateful to his benefactor.
(2) Conviction is NOT necessary.
(3) Time to file action for revocation within 1yr
from knowledge of the offense.
Who may file
Donor must bring action
transmissible to his heirs.
himself;
not
PAGE 152
UP LAW BOC
PROPERTY
CIVIL LAW
Limitation:
(1) He reserves in full ownership or in usufruct,
sufficient means for his support and for all
relatives who are at the time of the acceptance
of the donation are, by law, entitled to be
supported
Effect of non-reservation: reduction of the
donation
(2) He reserves sufficient property at the time of the
donation for the full settlement of his debts
Effect of non-reservation: considered to be a
donation in fraud of creditors, and donee may
be liable for damages
PAGE 153
UP LAW BOC
PROPERTY
CIVIL LAW
If the donation so states, the donee may be obliged Exception: when contrary intention appears
to pay the debts previously contracted by the donor
and in no case shall he be responsible for the debts
exceeding the value of the thing donated [NCC 758]
What may be reserved by the donor
Right to dispose of some of the things donated, or If the donor dies without exercising this right
of some amount which shall be a charge thereon
Reversion
The property donated may be restored or returned
to
(1) Donor or his estate; or
(2) Another person
Revocation/Reduction
Time of Action
Transmissibility
Effect
Liability (Fruits)
Property
returned, Fruits received after
alienations
and having failed to fulfill
mortgages void subject condition returned
to rights of third persons
in good faith
PAGE 154
UP LAW BOC
Time of Action
PROPERTY
Transmissibility
CIVIL LAW
Effect
Liability (Fruits)
Ingratitude
Within 1 year after Generally
not
knowledge of the fact transmitted to heirs of
and it was possible for donor/ donee
him to bring the action
Inofficiousness for being in excess of what the donor can give by will
Within 5 years from the Transmitted to donors Donation takes effect on Donee entitled
death of the donor
heirs
the lifetime of donor.
Reduction only upon his
death with regard to the
excess
Fraud against creditors
Rescission within 4 years Transmitted to creditors Returned for the benefit Fruits
returned/
if
from the perfection of heirs or successors-in- of the creditor who impossible,
indemnify
donation/ knowledge of interest
brought the action
creditor for damages
the donation
PAGE 155
UP LAW BOC
PROPERTY
CIVIL LAW
TRADITION
CONCEPT
REQUISITES
Prescription
DEFINITION
By prescription, one acquires ownership and
other real rights through the lapse of time in the
manner and under the conditions laid down by
law.
PURPOSE
KINDS
RATIONALE
KINDS OF PRESCRIPTION
(1) Acquisitive prescription
(2) Extinctive prescription
ACQUISITIVE PRESCRIPTION
PAGE 156
UP LAW BOC
PROPERTY
CIVIL LAW
Acquisitive Prescription
Extinctive Prescription
Requires
positive
action of the possessor
(a claimant) who is not
the
Owner
Requires inaction of
the owner out of
possession or neglect
of one with a right to
bring his action
Applicable to
ownership and other
real rights
Results
in
the
acquisition
of
ownership or other real
rights in a person as
well as the loss of said
ownership or real rights
in another
Should be affirmatively
pleaded and proved to
bar the action or claim
of the adverse party
NO PRESCRIPTION APPLICABLE
Note:
For extraordinary prescription, only first 4 are
required
Possession has to be in the concept of an
owner, public, peaceful, and uninterrupted.
BY OFFENDER
EXTINCTIVE PRESCRIPTION
REGISTERED LANDS
PAGE 157
UP LAW BOC
PROPERTY
Prescription
TO RECOVER IMMOVABLES
Concerned with
fact of delay
DISTINGUISHED
Laches
the Concerned with
effect of delay
the
NOT statutory
Applies at law
Applies at equity
PRESCRIPTION OR LIMITATION
OF ACTIONS
VOID CONTRACTS
Prescription
Laches
PRESCRIPTION
FROM LACHES
CIVIL LAW
OTHER ACTIONS
PAGE 158
UP LAW BOC
PROPERTY
CIVIL LAW
(c)
When
there
is
any
written
acknowledgment of the debt by the
debtor
PAGE 159
UP LAW BOC
PAGE 160
CIVIL LAW
UP LAW BOC
Obligations
CIVIL LAW
AS TO THE AFFIRMATIVENESS OR
NEGATIVENESS OF THE OBLIGATION
(1) Positive/Affirmative obligation to give or to
do
(2) Negative obligation not to give or not to do
IN GENERAL
DEFINITION
AS TO PERSONS OBLIGED
(1) Unilateral only one of the parties is bound
(2) Bilateral both parties are bound
(a) Reciprocal performance by one is
dependent on the performance by the
other
(b) Non-reciprocal performance by one is
independent of the other [Paras]
SOURCES OF OBLIGATIONS
Art. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.
A SINGLE ACT OR OMISSION MAY GIVE RISE
TO DIFFERENT CAUSES OF ACTION
A concurrence of scope in regard to negligent
acts does not destroy the distinction between
the civil liability arising from a crime and the
responsibility for cuasi-delitos or culpa extracontractual. The same negligent act causing
damages may produce civil liability arising from
a crime... or create an action for cuasi-delito or
culpa extra-contractual. [Barredo vs. Garcia
(1942)]
CLASSIFICATION OF OBLIGATIONS
AS TO SANCTION
(1) Civil Obligation (or perfect obligation) the
sanction is judicial process
(2) Natural Obligation the sanction is the law
(3) Moral Obligation (or imperfect obligation)
the sanction is conscience or morality
AS TO SUBJECT MATTER
(1) Real obligation to give
(2) Personal obligation to do or not to do
PAGE 161
UP LAW BOC
NATURE AND
OBLIGATIONS
EFFECT
OF
OBLIGATION TO GIVE
Limited
Generic Thing
Particularly
Object
is When
the
designated or designated
generic
physically
only by its objects
are
segregated
class/ genus/ confined to a
from
all species.
particular
others of the
class.
same
class
[Art. 1460];
Identified by
individuality.
Cannot
be Can
be
substituted
substituted by
any of the
same
class
and
same
kind.
Specific Thing
CIVIL LAW
Generic Thing
OBLIGATION TO DO OR NOT TO DO
PAGE 162
UP LAW BOC
BREACH
Art. 1170. Those who in the performance of their
obligations are guilty of fraud, negligence, or
delay, and those who in any manner contravene
the tenor thereof, are liable for damages.
COMPLETE FAILURE TO PERFORM
Substantial Breach
(1)
Total breach
(2)
Amounts to
non-performance,
basis for rescission
(resolution) under Art.
1191 and payment of
damages
CIVIL LAW
Requisites:
(1) Obligation must be liquidated, due and
demandable.
(2) Non-performance by the debtor within the
period agreed upon.
(3) Demand, judicial or extra-judicial, by the
creditor.
PAGE 163
delay is
UP LAW BOC
CIVIL LAW
Effects:
(1) The debtor is liable for damages.
(2) The debtor is liable even if the loss is due to
fortuitous events.
(3) For determinate objects, the debtor shall
bear the risk of loss.
Requisites:
(1) Debtor offers performance.
(2) Offer must be in compliance with the
prestation.
(3) Creditor refuses performance without just
cause.
Effects:
(1) The responsibility of the debtor is reduced to
fraud and gross negligence.
(2) The debtor is exempted from risk of loss of
the thing which is borne by the creditor.
(3) The expenses incurred by the debtor for the
preservation of the thing after the mora shall
be chargeable to the creditor.
(4) If the obligation bears interest, the debtor
does not have to pay from the time of delay.
(5) The creditor is liable for damages.
(6) The debtor may relieve himself of the
obligation by consigning the thing.
Compensatio morae Delay of both parties in
reciprocal obligations.
Effects:
(1) Delay of the obligor cancels delay of obligee
(and vice versa) hence it is as if there is no
default.
(2) The liability of the first infractor shall be
equitably tempered by the courts. If it cannot
be determined which of the parties first
violated the contract, the same shall be
deemed extinguished, and each shall bear
his own damages. [Art. 1192]
PAGE 164
UP LAW BOC
NEGLIGENCE
(CULPA)
IN
PERFORMANCE OF THE OBLIGATION
THE
CIVIL LAW
Exceptions:
Common Carriers
Art. 1733. Common carriers, from the nature of
their business and for reasons of public policy,
are bound to observe extraordinary diligence in
the vigilance over the goods and for the safety
of the passengers transported by them,
according to all the circumstances of each case.
Test of Negligence
Did the defendant in doing the alleged
negligent act use the reasonable care and
caution, which an ordinary and prudent person
would have used in the same situation? If not,
then he is guilty of negligence. [Mandarin Villa
Inc. vs. CA (1996)]
PAGE 165
UP LAW BOC
Culpa Aquiliana
Negligence
substantive
independent.
is
and
BREACH:
Proof of diligence in
the selection and
supervision of the
employee is a defense.
CIVIL LAW
Bad Faith
Obligor
shall
be
responsible for all
damages which may
be
reasonably
attributed to the nonperformance of the
obligation.
Any
waiver
or
renunciation made in
the anticipation of
such liability is null
and void.
PAGE 166
UP LAW BOC
CIVIL LAW
Rescission / Resolution
[Art. 1191]
Based
on
nonperformance or nonfulfillment of obligation.
Action is instituted only
by the injured party.
Action is instituted by
either party or by a
third person.
In some cases, court Court cannot grant a
may grant a term.
period or term within
which
one
must
comply.
Non-performance by the Non-performance by
other party is important. the other party is
immaterial.
SPECIFIC PERFORMANCE
The creditor has a right to compel the debtor to
perform the prestation.
SUBSTITUTED PERFORMANCE
A third person may perform anothers obligation
to deliver a generic thing or an obligation to do,
unless it is a purely personal act, at the expense
of the debtor.
Requisites:
(1) The person to whom the right of action
pertains must be indebted to the creditor
(2) The debt is due and demandable
(3) The creditor must be prejudiced by the
failure of the debtor to collect his debts due
him from third persons, either through
malice or negligence
(4) The debtors assets are insufficient (debtor is
insolvent)
PAGE 167
UP LAW BOC
Requisites:
(1) There is a credit in favour of the plaintiff prior
to the alienation by the debtor
(2) The debtor has performed a subsequent
contract conveying patrimonial benefit to
third person/s.
(3) The debtors acts are fraudulent to the
prejudice of the creditor.
(4) The creditor has no other legal remedy to
satisfy his claim.
(5) The third person who received the property is
an accomplice to the fraud.
Accion Subrogatoria
Accion Pauliana
No
period
prescription
CIVIL LAW
Fraudulent intent is
required if the contract
rescinded is onerous
for Prescribes in 4 years
from the discovery of
the fraud
Accion Directa
Subsidiary liability of sublessee to the lessor for
rent due from the lessee
PAGE 168
UP LAW BOC
CIVIL LAW
Before Fulfillment
After Fulfillment
Doctrine of Constructive
Suspensive Conditions
Fulfillment
of
PURE OBLIGATIONS
Art. 1179. Every obligation whose performance
does not depend upon a future or uncertain
event, or upon a past event unknown to the
parties, is demandable at once.
CONDITIONAL OBLIGATIONS
Art. 1181. In conditional obligations, the
acquisition of rights, as well as the
extinguishment or loss of those already
acquired, shall depend upon the happening of
the event which constitutes the condition.
A condition is a future and uncertain event.
KINDS OF CONDITIONS; EFFECTS
(1) Suspensive
(2) Resolutory
PAGE 169
UP LAW BOC
Principle of
Conditions
Retroactivity
in
Suspensive
Before Fulfillment
After Fulfillment
Preservation
of
creditors rights [Art.
1187 par. 1] also applies
to obligations with a
resolutory condition.
To Do/Not To Do
In obligations to do or
not to do, the court
shall determine the
retroactive effect of
the condition that has
been complied with
[Art. 1187, par. 2]
The power of the court
includes
the
determination
of
whether or not there
will be any retroactive
effect. This rule shall
likewise
apply
in
obligations with a
resolutory condition
[Art. 1190 par. 3]
CIVIL LAW
PAGE 170
UP LAW BOC
Exclusively
upon
the
Debtors Will in
case of a
Resolutory
Condition
[Art. 1179 par.
2]
CIVIL LAW
Loss
is Obligation is converted
into one of indemnity
for damages.
Deterioration
Impairment to be Creditor may choose
borne by the creditor. between bringing an
action for rescission of
the obligation OR
bringing an action for
specific performance,
with damages in either
case.
Improvement
Improvement at the Improvement by the
debtors expense, the things nature or by
debtor shall ONLY time shall inure to the
have
usufructuary benefit of the creditor.
rights.
Obligation
extinguished.
PAGE 171
UP LAW BOC
IMPOSSIBLE CONDITIONS
CIVIL LAW
PAGE 172
AND
CONDITION
Term/Period
Condition
When it is left
exclusively to the will
of the debtor, the very
existence
of
the
obligation is affected
UP LAW BOC
ADVANCE
PAYMENT
CIVIL LAW
OR
PAGE 173
UP LAW BOC
Alternative Obligations
CIVIL LAW
Facultative Obligations
The loss/impossibility
of one of the things
does not extinguish
the obligation.
Culpable loss of any of
the
objects
alternatively
due
before the choice is
made may give rise to
liability on the part of
the debtor.
ALTERNATIVE
OBLIGATIONS
OR
FACULTATIVE
Alternative Obligations
Facultative Obligations
Loss/impossibility of
the object/prestation
due to fortuitous event
is
sufficient
to
extinguish
the
obligation.
PAGE 174
UP LAW BOC
INSTANCES
WHEN
OBLIGATION
IS
CONVERTED INTO A SIMPLE OBLIGATION
(1) The person with the right of choice has
communicated his choice [Arts. 1201, 1205
par 1]
(2) Only one prestation is practicable [Art. 1202]
CIVIL LAW
Fortuitous Event
Debtors Fault
One Remains
Creditor may claim the Creditor may claim the
remaining
thing remaining
thing
without a right to without a right to
damages OR the damages OR the
price/value of the price/value of the
thing lost with right to thing lost with right to
damages.
damages.
LOSS
OF
SPECIFIC
THINGS
OR
IMPOSSIBILITY OF PERFORMANCE OF
ALTERNATIVE
JOINT OBLIGATIONS
UP LAW BOC
CIVIL LAW
PAGE 176
UP LAW BOC
Joint Divisible
Obligations
In case of breach of
obligation by one of
the debtors, damages
due must be borne by
him alone.
Solidarity
Each creditor may
demand the entire
prestation and each
debtor is bound to pay
the entire prestation
Effect
of
breach:
Solidarity remains
Joint Indivisible
Obligations
In case of breach
where one of the joint
debtors fails to comply
with his undertaking,
the obligation can no
longer be fulfilled or
performed. Thus, the
action
must
be
converted into one for
indemnity
for
damages.
Indivisibility
Each creditor cannot
demand more than his
share and each debtor
is not bound to pay
more than his share
Effect
of
breach:
Obligation
is
converted
to
indemnity
for
damages
Only the debtors guilty
of breach of obligation
is liable for damages
Other debtors are not
liable if one debtor is
insolvent
Solidary Obligations
As to Parties Bound
(1) Active (solidarity among creditors) Each
creditor has the authority to claim and
enforce the rights of all, with the resulting
obligation of paying everyone of what
belongs to him.
(2) Passive (solidarity among debtors) Each
debtor can be made to answer for the others,
with the right on the part of the debtor-payor
to recover from the others their respective
shares.
(3) Mixed (solidarity among creditors and
debtors) Solidarity is not destroyed by the
fact that the obligation of each debtor is
subject to different conditions or periods. The
creditor can commence an action against
anyone of the debtors for the compliance
with the entire obligation minus the portion
or share which corresponds to the debtor
affected by the condition or period.
CIVIL LAW
Indivisibility
Refers
to
the
prestation that is not
capable of partial
performance
As to Uniformity
(1) Uniform Parties are bound by the same
stipulation
(2) Non-uniform Parties are bound by different
conditions or terms
PAGE 177
UP LAW BOC
CIVIL LAW
Demand Upon a
Solidary Debtor
The demand made
against one of them
shall not be an
obstacle to those
which
may
subsequently
be
directed against the
others so long as the
debt has not been
fully collected [Art.
1216].
The creditor may
proceed against any
one of the solidary
debtors
or
all
simultaneously [Art.
1216].
PAGE 178
Payment by a Debtor
Full payment made by
one of the solidary
debtors extinguishes
the obligation [Art.
1217].
UP LAW BOC
Demand Upon a
Solidary Debtor
A creditors right to
proceed against the
surety
exists
independently of his
right
to
proceed
against the principal
Payment by a Debtor
The solidary debtor
who
made
the
payment shall have
the right to claim from
his co-debtors the
share
which
corresponds to them
with interest, UNLESS
barred by prescription
or illegality [Art. 1218].
The
obligation
extinguished.
shall
CIVIL LAW
be
INDIVISIBLE OBLIGATIONS
Ones which cannot be validly performed in parts
[Tolentino]
Rules
(1) Divisibility/indivisibility refers to the
performance of the prestation and not to
PAGE 179
UP LAW BOC
(2)
(3)
(4)
(5)
(6)
Effect
Creditor cannot be compelled to receive
partially the prestation in which the obligation
consists; neither may the debtor be required to
make the partial payment [Art. 1248], UNLESS:
(1) The obligation expressly stipulates the
contrary.
(2) The different prestations constituting the
objects of the obligation are subject to
different terms and conditions.
(3) The obligation is in part liquidated and in
part unliquidated.
OBLIGATIONS
CLAUSE
WITH
CIVIL LAW
PENAL
PAGE 180
UP LAW BOC
CIVIL LAW
NATURAL OBLIGATIONS
the
PAGE 181
UP LAW BOC
PAYMENT OR PERFORMANCE
Payment
is
effective
CIVIL LAW
and
BY WHOM
Payor must have free disposal of the thing due
and capacity to alienate it. [Art. 1239]
EXTINGUISHMENT OF
OBLIGATIONS
PAGE 182
UP LAW BOC
CIVIL LAW
PLACE OF PAYMENT
(1) In the place designated in the obligation.
(2) In the absence of stipulation
(a) If obligation is to deliver a determinate
thing: wherever the thing might be at
the moment the obligation was
constituted.
(b) In any other case: Domicile of debtor
[Art. 1251]
Form of Payment
Art. 1249. The payment of debts in money shall
be made in the currency stipulated, and if it is
not possible to deliver such currency, then in the
currency which is legal tender in the Philippines.
TO WHOM
(1) The person in whose favor the obligation has
been constituted; or
(2) His successor in interest; or
(3) Any person authorized to receive it [Art. 1240]
APPLICATION OF PAYMENTS
Designation of the debt to which should be
applied a payment made by a debtor who owes
several debts to the same creditor.
Requisites:
(1) There is a plurality of debts
(2) Debts are of the same kind
(3) Debts are owed to the same creditor and by
the same debtor
(4) All debts must be due, UNLESS parties so
stipulate, or when application is made by
the party for whose benefit the term has
been constituted
(5) Payment made is not sufficient to cover all
debts [Art. 1252]
PAGE 183
UP LAW BOC
CIVIL LAW
Rules on Application
(1) Preferential right of debtor - debtor has the
right to select which of his debts he is
paying.
(2) The debtor makes the designation at the
time he makes the payment.
(3) If not, the creditor makes the application, by
so stating in the receipt that he issues,
unless there is cause for invalidating the
contract.
(4) If neither the creditor nor debtor exercises
the right to apply, or if the application is not
valid, the application is made by operation
of law.
(5) If debt produces interest, the payment is not
to be applied to the principal unless the
interests are covered.
(6) When no application can be inferred from
the circumstances of payment, it is applied:
(a) to the most onerous debt of the debtor;
or (b) if debts due are of the same nature
and burden, to all the debts in proportion
(7) Rules of application of payment may not be
invoked by a surety or solidary guarantor.
Requisites:
(1) There is a plurality of debts
(2) Partial or relative insolvency of debtor
(3) Acceptance of the cession by the creditors
[Art. 1255]
Dacion en pago
One creditor
Debtor not necessarily
in state of financial
difficulty
Thing delivered is
equivalent
of
performance
Extinguishes
obligation
to the
extent of the value of
the thing delivered, as
agreed upon, proved
or implied from the
conduct of the creditor
Does not involve all
properties of debtor
Creditor
becomes
owner
DATION IN PAYMENT
Delivery and transmission of ownership of a
thing by the debtor to the creditor as an
accepted equivalent of the performance of the
obligation (dacion en pago).
Requisites:
(1) Existence of a money obligation
(2) Alienation to the creditor of a property by
the debtor with the creditors consent
(3) Satisfaction of the money obligation
PAYMENT BY CESSION
Special form of payment where the debtor
assigns/abandons ALL his property for the
benefit of his creditors in order that from the
proceeds thereof, the latter may obtain
payment of their credits.
PAGE 184
UP LAW BOC
Requisites of Consignation
(1) There is a debt due
(2) Consignation is made because of some
legal cause
(a) There was tender of payment and creditor
refuses without just cause to accept it
(b) Instances when consignation alone would
suffice as provided under Art. 1256
(3) Previous notice of consignation was given to
those persons interested in the performance
of the obligation
(4) Amount or thing due was placed at the
disposal of the court
(5) After the consignation has been made, the
persons interested were notified thereof
CIVIL LAW
PAGE 185
UP LAW BOC
CIVIL LAW
Partial loss
Art. 1264: Partial loss due to a fortuitous event
does not extinguish the obligation; thing due
shall be delivered in its present condition,
without any liability on the part of the debtor,
UNLESS the obligation is extinguished when
the part lost was of such extent as to make the
thing useless.
Obligation to Deliver a
Generic Thing
Loss of a generic thing
does not extinguish an
obligation, EXCEPT in
case of delimited
generic things, where
the kind or class is
limited itself, and the
whole class perishes.
Subjective Impossibility
Where there is no physical or legal loss, but the
thing belongs to another, the performance by
the debtor becomes impossible. The debtor
must indemnify the creditor for damages.
Partial Impossibility
Courts shall determine whether it is so
important as to extinguish the obligation.
(1) If debtor has performed part of the
obligation when impossibility occurred,
creditor must pay the part done as long as
he benefits from it.
(2) If debtor received full payment from
creditor, he must return excess amount
corresponding to part which was impossible
to perform.
Doctrine of Unforeseen Events
When the service has become so difficult as to
be manifestly beyond the contemplation of all
the parties, the obligor may be released in
whole or in part. [De Leon]
Requisites:
(1) Event could not have been foreseen at the
time of the constitution of the contract.
(2) Event makes performance extremely
difficult but not impossible.
(3) Event is not due to any act of the parties.
(4) Contract is for future prestation.
In Reciprocal Obligations
Extinguishment of the obligation due to loss of
the thing or impossibility of performance affects
both the creditor and debtor; the entire juridical
relation is extinguished.
PAGE 186
UP LAW BOC
CIVIL LAW
CONDONATION OR REMISSION OF
THE DEBT
REQUISITES
(1) Debt must be existing and demandable.
(2) Renunciation must be gratuitous; without
any consideration.
(3) Debtor must accept the remission. [Art.
1270]
EFFECT
Renunciation of the principal debt shall
extinguish the accessory obligations, but
remission of the latter leaves the principal
obligation in force. [Art. 1273]
COMPENSATION
EXPRESS CONDONATION
Made formally; in accordance with forms of
ordinary donations. [Art. 1270]
IMPLIED CONDONATION
(1) Whenever the private document in which
the debt is found is in the possession of the
debtor, it shall be presumed that the
creditor delivered it voluntarily, unless the
contrary is proved. [Art. 1272]
(2) Delivery of a private document evidencing
credit made voluntarily by the creditor to
the debtor implies the renunciation of the
action of creditor against the latter. [Art.
1272]
(3) Accessory obligation of pledge has been
remitted when thing after its delivery is
found in the possession of the debtor or
third person. [Art. 1274]
EFFECTS
(1) Both debts are extinguished to the
concurrent amount, even though the
creditors and debtors are not aware of the
compensation.
(2) Accessory obligations are also extinguished.
REQUISITES
(1) It should take place between principal
debtor and creditor.
(2) It must be complete and definite Parties
must meet all the qualities of creditor and
PAGE 187
UP LAW BOC
Confusion
CIVIL LAW
one
KINDS OF COMPENSATION
As to extent
(1) Total when two debts are of the same
amount [Art. 1281]
(2) Partial
As to cause
(1) Legal
(2) Voluntary
(3) Judicial
(4) Facultative
KINDS:
(1) Legal Compensation takes place by
operation of law from the moment all
requisites are present.
Right of a Guarantor
A guarantor may set up compensation as
regards what the creditor may owe the principal
debtor. (Art. 1280)
PAGE 188
UP LAW BOC
NOVATION
Extinguishment of an obligation by the
substitution or change of the obligation by a
subsequent one which extinguishes or modifies
the first either by changing the object or
principal conditions, or by substituting the
person of the debtor, or by subrogating a third
person in the rights of the creditor. A juridical
act of dual functionit extinguishes an
obligation, and at the same time, it creates a
new one in lieu of the old.
REQUISITES
(1) A previous valid obligation
(2) Agreement of all the parties to the new
obligation
(3) Animus novandi or intent to novate
(4) Substantial difference between old and new
obligations
and,
consequently,
extinguishment of the old obligation
(5) Validity of the new obligation
EFFECT
In General
If Original
Obligation
is Void
If New
Obligation
is Void
CIVIL LAW
Incompatible
Conditions
(a) Original
obligation
is
extinguished,
while
new
obligation
exists
(b) Demandability
shall be subject
to fulfillment/
nonfulfillment
of the condition
affecting it
KINDS OF NOVATION
As to form
(1) Express declared in an unequivocal terms
(2) Implied the old and new obligations are on
every point incompatible with each other
Novation is not presumed
In the absence of an unequivocal declaration of
extinguishment of the pre-existing obligation,
only proof of incompatibility between the old
and new obligation would warrant a novation by
implication. [California Bus Line vs. State
Investment (2003)]
Test of Incompatibility
Whether or not the old and new obligation can
stand together, each one having an
independent existence. No incompatibility exists
when they can stand together. Hence, there is
no novation. Incompatibility exists when they
cannot stand together. Hence, there is novation.
PAGE 189
UP LAW BOC
As to effect
(1) Total
(2) Partial
Total
(1) Transfers to the
person subrogated
the credit with all
the rights thereto
appertaining, either
against the debtor
or third persons.
(2) Obligation is not
extinguished, even
if the intention is to
pay it.
(3) Defenses against
the old creditor are
retained,
unless
waived by the
debtor.
CIVIL LAW
Expromision
Delegacion
Requisites
(1) Consent of the Consent of old debtor,
creditor and the new new
debtor,
and
debtor
creditor
(2) Knowledge
or
consent of the old
debtor
is
not
required
Effects
(1) Old
debtor
is (1) Insolvency of the
released
new debtor revives
(2) Insolvency of the
the obligation of
new debtor does
the old debtor if it
not revive the old
was anterior and
obligation in case
public, and known
the old debtor did
to the old debtor.
not
agree
to (2) New debtor can
expromision
demand
(3) If with knowledge
reimbursement of
and consent of old
the entire amount
debtor, new debtor
he has paid from
can
demand
the original debtor.
reimbursement of
He may compel
the entire amount
creditor
to
paid and with
subrogate him to
subrogation
of
all of his rights.
creditors rights.
(4) If
without
knowledge of the
old debtor, new
debtor can demand
reimbursement
only up to the
extent that the
latter has been
benefited without
subrogation
of
creditors rights.
Partial
A creditor, to whom
partial payment has
been
made, may
exercise his right for
the remainder, and
shall be preferred to
the person subrogated
in his place in virtue of
the partial payment.
As to Essence
(1) Objective/ Real
(2) Subjective/ Personal
(a) Substitution of debtors
(i) Expromision
(ii) Delegacion
(b) Subrogation of a third person to the
rights of the creditor
(i) Conventional
(ii) Legal
OBJECTIVE NOVATION
(1) Change of the subject matter
(2) Change of cause or consideration
(3) Change of the principal conditions or terms
SUBJECTIVE NOVATION
Substitution of Debtors
Expromision
Delegacion
Initiative for change Debtor
(delegante)
does not emanate from offers or initiates the
the debtor, and may change,
and
the
even be made without creditor (delegatorio)
his knowledge.
accepts a third person
(delegado)
as
consenting
to
the
substitution.
Subrogation
Transfers to the person subrogated the credit
with all the rights thereto appertaining, either
against the debtor or against third persons, be
they guarantors or possessors of mortgages,
subject to stipulation in a conventional
subrogation. [Art. 1303]
Conventional Subrogation takes place by
agreement of parties
PAGE 190
UP LAW BOC
Conventional
subrogation
Debtors consent is
necessary.
Extinguishes
an
obligation and gives
rise to a new one.
CIVIL LAW
Contracts
Assignment of credit
Mutuality
Autonomy
Art. 1306. The contracting parties may establish
such stipulations, clauses, terms and conditions
as they may deem convenient, provided they are
not contrary to law, morals, good customs,
public order, or public policy.
Relativity
Art. 1311, par 1. Contracts take effect only
between the parties, their assigns and heirs,
except in case where the rights and obligations
arising from the contract are not transmissible
by their nature, or by stipulation or by provision
of law. The heir is not liable beyond the value of
the property he received from the decedent.
ESSENTIAL REQUISITES
ESTOPPEL
ELEMENTS OF ESTOPPEL
CONSENT
(1)
Requisites:
(1) It must be manifested by the concurrence of
the offer and acceptance [Arts. 1319-1326].
(2) The contracting parties must possess the
necessary legal capacity [Arts. 1327-1329].
PAGE 191
UP LAW BOC
CIVIL LAW
ACCEPTANCE
Requisites of acceptance:
(1) Unqualified and unconditional, i.e. it must
conform with all the terms of the offer,
otherwise it is a counter-offer [Art. 1319]
(2) Communicated to the offeror and learned by
him [Arts. 1319, 1322]. If made through an
agent, the offer is accepted from the time
the acceptance is communicated to such
agent.
(3) Express/implied, but is not presumed.
OFFER
A unilateral proposition which one party makes
to the other for the celebration of the contract
[Tolentino]
Requisites of an offer:
(1) Definite
(2) Intentional
(3) Complete
Exceptions:
(1) Real contracts, such as deposit, pledge and
commodatum, are not perfected until the
delivery of the object of the obligation [Art.
1316]
(2) Formal contracts, where the law requires
that a contract be in some form or be
proved in a certain way [Art. 1356]
OPTION CONTRACT
A preparatory contract in which one party
grants to the other, for a fixed period, the option
to decide whether or not to enter into a principal
contract [Art. 1324]
With consideration
Without consideration
Offeror
cannot Offeror may withdraw
unilaterally withdraw by
communicating
his offer.
withdrawal
to the
offeree
before
acceptance.
CAPACITY TO CONTRACT
Persons incapacitated to give consent (Art. 1327)
(1) Minors, except
(a) For necessaries [Art.1427]
(b) Estoppel where the minor actively
misrepresents his age
Minors held in estoppel through active
misrepresentation. [Mercado v. Espiritu (1917)]
PAGE 192
UP LAW BOC
CIVIL LAW
Mistake of Fact
Mistake of Law
When one or
both
contracting
parties believe
that a fact
exists when in
reality it does
not, or vice
versa.
When one or
both parties
arrive at an
erroneous
conclusion on
the
interpretation
of a question
of law or its
legal effects.
Mutual
Mistake
(1) Must be as
to
the
legal
effect of
an
agreement
(2) Must be
mutual
(3) Real
purpose of
the parties
must have
been
frustrated
VICES OF CONSENT
A contract where consent is given through
(1) Mistake
(2) Violence
(3) Intimidation
(4) Undue influence
(5) Fraud is voidable. [Art. 1330]
Circumstances to consider:
(1) Relationship of the parties (family, spiritual,
confidential etc.)
(2) That the person unduly influenced was
suffering from infirmity (mental weakness,
ignorance etc.) [Art.1337]
PAGE 193
UP LAW BOC
OBJECT OF CONTRACTS
Requisites:
(1) Must be within the commerce of men [Art.
1347]
(2) Must not be impossible, legally or physically
[Art.1348]
(3) For things as object of contract, must be in
existence or capable of coming into
existence [See Arts. 1461, 1493, 1495]
(4) Must be determinate or determinable,
without the need of a new contract between
the parties [Arts. 1349, 1460, par.2]
Relative Simulation
No real transaction
is intended.
Fictitious contract.
Void.
Real
transaction
is
hidden.
Disguised contract.
Bound as to hidden
agreement, so long as it
does not prejudice a
third person and is not
contrary to law, morals,
good customs, public
order or public policy.
CIVIL LAW
PAGE 194
UP LAW BOC
CAUSE OF CONTRACTS
The essential and impelling reason why a party
assumes an obligation [Manresa]. Motive, on the
other hand, is the particular reason for a
contracting party which does not affect the
other.
REQUISITES
(1) Must exist at the time of the contract is
entered into [Arts. 1352, 1409, par. 3]
(2) Must be lawful (ibid).
(3) Must be true or real [Art.1353]
Distinguished from Motive
Cause
Proximate reason for
contract
Objective or juridical
reason
Always the same for
each contracting party
Illegality
affects
existence or validity of
the contract
Motive
Remote reason for the
contract
Psychological
and
purely personal reason
Differs
for
each
contracting party
Illegality does not
affect existence or
validity of contract
CIVIL LAW
Pure
Beneficence
Mere
liberality of
the
benefactor
PAGE 195
UP LAW BOC
Cause
Effect
Falsity of cause Contract with a false cause is
cause
is merely revocable/voidable.
stated but is
untrue
Parties are given a chance to
show that a cause really
exists, and that said cause is
true and lawful.
Lesion
or
inadequacy of
cause cause is
not
proportionate to
object
CIVIL LAW
FORM OF CONTRACTS
General rule: Contracts shall be obligatory, in
whatever form they may have been entered into,
provided all the essential requisites for their
validity are present.
KINDS OF CONTRACTS
Consensual Contracts which are perfected by
mere consent of the parties regarding the
subject matter and the cause of the contract
[Art.1315]
PAGE 196
UP LAW BOC
REFORMATION OF
INSTRUMENTS
of
CIVIL LAW
REQUISITES
(1) Meeting of the minds of the parties
(2) There is a written instrument which,
however, does not express their true
intention
(3) By reason of mistake, fraud, inequitable
conduct or accident [Art. 1359]
RESCISSIBLE CONTRACTS
Contracts which are valid until rescinded. All
essential requisites of a contract exist but there
is injury or damage to one of the parties or to
third persons external or extrinsic defect
consisting of an economic damage or lesion.
[Paras]
PAGE 197
UP LAW BOC
CIVIL LAW
Effects of Rescission
It creates an obligation to return the things
which were the object of the contract, together
with their fruits, and the price with its interests.
However, if the object of the contract is in the
possession of third persons in good faith,
rescission cannot take place and indemnity for
damages may be demanded from the person
causing the loss [Art. 1385]
PAGE 198
UP LAW BOC
CIVIL LAW
Effect of Ratification
It cleanses the contract from all its defects from
the moment it was constituted [Art. 1396]
VOIDABLE CONTRACTS
Contracts which are valid until annulled, unless
ratified. Defect is more or less intrinsic, as in the
case of vitiated consent [Paras]
Effects of Annulment
The contracting parties shall restore to each
other the things which have been the subject
matter of the contract, with their fruits, and the
price with its interest, except in cases provided
by law. [Art. 1398]
UNENFORCEABLE CONTRACTS
THREE
WAYS
OR
MODES
OF
CONVALIDATING A VOIDABLE CONTRACT
[JURADO]
(1) By prescription of the action for annulment
[Art.1391]
(2) By ratification or confirmation [Art. 13921396]
(3) By loss of the thing which is the object of
the contract through the fraud or fault of
the person who is entitled to institute the
action for the annulment [Art.1401]
PAGE 199
UP LAW BOC
KINDS OF UNENFORCEABLE
CONTRACTS
PAGE 200
CIVIL LAW
VOID OR INEXISTENT
CONTRACTS
UP LAW BOC
PAGE 201
CIVIL LAW
UP LAW BOC
Rescissible
Damage to a party or to a
third person.
Voidable
Unenforceable
Defect
Vitiation of consent
Without or in excess of
authority,
or
doesnt
comply with Statute of
Fraud, or both parties are
incapacitated.
Effect
Valid until annulled.
Cannot be enforced by
court action.
Grounds
Art. 1390
Art. 1403
(1) Those where one of the (1) Those entered into in
parties is incapable of
the name of another
giving consent to a
person by one who has
contract;
been given no authority
or legal representation,
(2)Those
where
the
or who has acted
consent is vitiated by
beyond his powers;
mistake,
violence,
intimidation,
undue (2) Those that do not
influence or fraud.
comply
with
the
Statute of Frauds as set
forth in this number. In
the following cases an
agreement hereafter
made
shall
be
unenforceable
by
action, unless the
same, or some note or
memorandum, thereof,
be in writing, and
subscribed by the party
charged, or by his
agent;
evidence,
therefore,
of
the
agreement cannot be
received without the
writing, or a secondary
evidence
of
its
contents:
(a) An agreement that by
its terms is not to be
performed within a
year from the making
thereof;
(b) A special promise to
answer for the debt,
default, or miscarriage
of another;
(c) An agreement made in
consideration
of
marriage, other than a
mutual promise to
marry;
PAGE 202
CIVIL LAW
Void
Absolute lack of essential
requisite in fact or in law.
UP LAW BOC
Rescissible
Voidable
Unenforceable
(d) An agreement for the
sale of goods, chattels
or things in action, at
a price not less than
five hundred pesos,
unless the buyer
accept and receive
part of such goods
and chattels, or the
evidences, or some of
them, of such things
in action or pay at the
time some part of the
purchase money; but
when a sale is made
by auction and entry is
made
by
the
auctioneer in his sales
book, at the time of
the sale, of the
amount and kind of
property sold, terms
of sale, price, names
of the purchasers and
person on whose
account the sale is
made, it is a sufficient
memorandum;
CIVIL LAW
Void
Necessary.
Cant be ratified.
Prescriptible.
Assailable by a party or by a third
party who is damaged.
PAGE 203
UP LAW BOC
EFFECT OF CONTRACTS
CIVIL LAW
Quasi-Contracts
Art. 2142. Certain lawful, voluntary and
unilateral acts give rise to the juridical relation
of quasi-contract to the end that no one shall be
unjustly enriched or benefited at the expense of
another.
NEGOSTIORUM GESTIO
Art. 2144. Whoever voluntarily takes charge of
the agency or management of the business or
property of another, without any power from the
latter, is obliged to continue the same until the
termination of the affair and its incidents, or to
require the person concerned to substitute him,
if the owner is in a position to do so. This
juridical relation does not arise in either of these
instances:
(1) When the property or business is not
neglected or abandoned;
(2) If in fact the manager has been tacitly
authorized by the owner. In the first case, the
provisions of articles 1317, 1403, No. 1, and
PAGE 204
Requisites:
(1) The property or business is abandoned by its
owner
(2) One voluntarily takes charge of the agency or
management of the business or property
(3) Such taking charge was without any
authorization from the owner, whether
express or tacit.
LIABILITIES
MANAGER
OF
THE
OFFICIOUS
UP LAW BOC
CIVIL LAW
SOLUTIO INDEBITI
Art. 2154. If something is received when there is
no right to demand it, and it was unduly
delivered through mistake, the obligation to
return it arises.
Art. 2155. Payment by reason of a mistake in the
construction or application of a doubtful or
difficult question of law may come within the
scope of the preceding article.
OTHER QUASI-CONTRACTS
PAGE 205
UP LAW BOC
PAGE 206
CIVIL LAW
PAGE 207
UP LAW BOC
SALES
CIVIL LAW
DEFINITION OF SALES
ESSENTIAL REQUISITES OF A
CONTRACT OF SALE
ESSENTIAL ELEMENTS OF A VALID
CONTRACT OF SALE
NON-ESSENTIAL ELEMENTS OF A
CONTRACT OF SALE
REQUISITES:
(1) Capacity
(2) Offer and acceptance
(3) No vitiation of consent
PAGE 208
UP LAW BOC
SALES
CIVIL LAW
OBLIGATIONS CREATED
Art. 1165, CC. When what is to be delivered is a
determinate thing, the creditor, in addition to
the right granted him by Article 1170, may
compel the debtor to make the delivery.
If the thing is indeterminate or generic, he may
ask that the obligation be complied with at the
expense of the debtor.
DONATION
Sale
Onerous
Perfected
consent
CHARACTERISTICS OF A CONTRACT
OF SALE
PAGE 209
by
Donation
Gratuitous
mere Must comply with the
formalities required
by law. [Art 745, CC]
is
UP LAW BOC
SALES
CIVIL LAW
DACION EN PAGO
Sale
No pre-existing debt
Creates an obligation
Dacion en pago
Pre-existing debt
Extinguishes
the
obligation (mode of
payment)
Price is more freely Price is value of the
agreed upon, fixed by thing given
the parties
Buyer has to pay the Payment is received
price
by the debtor before
contract is perfected
Conditional Contract of
Sale
Sale
is
already
perfected
A subsequent buyer is
presumed to be a
buyer in bad faith
PAGE 210
Contract to sell
No perfected sale yet
A subsequent buyer is
presumed to be a
buyer in good faith
UP LAW BOC
Sale
SALES
ABSOLUTE INCAPACITY
(MIND-CI) [Art. 1327, CC]
(1) Minors
(2) Insane or Demented
(3) Deaf-mutes who do not know how to write
(4)Civil Interdiction
(5) Judicially-declared Incompetents (Art. 39)
(a) Prodigals
(b) Imbeciles
(c) Absence & presumption of death
(d) Persons not of unsound mind but by
reason of age, disease, weak mind, and other
similar causes, cannot take care of
themselves and manage their property
without outside aid (Easy prey for deceit and
exploitation)
Agency to sell
Buyer receives
goods as owner
Lease
Ownership transferred No
transfer
by delivery
ownership
Permanent
Temporary
CIVIL LAW
of
Exceptions:
(1) Separation of property in marriage
settlement, OR
(2) Judicial separation of property.
Parties to a Contract of
Sale
CAPACITY OF PARTIES
Art. 1489, CC. All persons who have capacity to
enter into obligations may enter into a contract
of sale.
KINDS OF INCAPACITY
PAGE 211
UP LAW BOC
SALES
SPECIAL DISQUALIFICATIONS
CIVIL LAW
(5) Lawyers
Cannot acquire or purchase property or
rights in litigation in which they take part by
virtue of their profession
PAGE 212
UP LAW BOC
SALES
CIVIL LAW
Sales
entered
into
by
guardians,
administrators, and
agents
(specific
incapacities) in violation of Art. 1491 may be
ratified by means of and in the form of a new
contract when the cause of nullity has ceased
to exist. Ratification is valid only from date of
execution of the new contract and does not
retroact.
Those
entered
into
by
public
officers/employees, justices and judges, and
lawyers in violation of Art. 1491 are inexistent
and void from the beginning. [Rubias v
Batiller, 1973].
EFFECTS OF INCAPACITY
those
which
are
indispensable for sustenance, dwelling,
clothing, medical attendance, education and
transportation. [Art 194, Family Code]
Subject Matter
REQUISITES OF
SUBJECT MATTER
FOR RIGHTS:
FOR THINGS:
Rationale:
(1) To protect 3rd persons who may have
contracted with the spouse
(1) Licit
(2) Existing, Future, Contingent
(3) Determinate or determinable
PAGE 213
VALID
UP LAW BOC
SALES
CIVIL LAW
EmptioReiSperatei
EmptioSpei
Valid
Void
Sale of a thing not yet in Sale of the hope itself
existence but will exist
that a thing will come
into existence
Upon the failure of the Where it is agreed that
condition, the contract buyer will pay the price
becomes ineffective
even if the thing does
not
come
into
exsitence
Future thing is certsin as Not certain that the
to itself, but incertain as thing itself will exist
to quantity and quality
Deals with a future thing Thing which exists or is
present the hope or
expectancy
In case of doubt, the presumption is in favor of
emptioreisperatae since it is more in keeping with
the commutative character of the contract.
PAGE 214
UP LAW BOC
SALES
CIVIL LAW
DETERMINATE OR DETERMINABLE
A thing is DETERMINATE when it is particularly
designated or physically segregated from all
others of the same class. [Art 1460, CC]
PAGE 215
UP LAW BOC
SALES
CIVIL LAW
Exceptions: (RE-ROM)
(1) Seller has a Right to transfer ownership
(a) Seller need not be the owner of the
thing at the time of perfection of the
contract. It is sufficient that seller has
a right to transfer ownership thereof
at the time it is delivered. [Art. 1459]
(b) One who sells something he does not
own yet is bound by the sale when he
acquires
the
thing
later
[BuctonvsGabar, 1974]
Price
MEANING OF PRICE
(Ce-MoRe)
(1) Certain or ascertainable at the time of
perfection
(2) In Money or its equivalent
(a)Example of equivalent: Letters of credit
(b) If price is partly in money and partly in
another thing: Determine manifest
intention of the parties to see whether it
was barter or sale. [Art 1468,CC]
(c)If intention does not clearly appear, it shall
be considered a barter if the value of the
thing exceed the amount of money or its
equivalent. [Art 1468,CC]
(3) Real
When buyer has an intention to pay and the
seller has an expectation to receive the price
(a) If simulated: Sale is VOID; BUT act may
be shown to have been a donation or
some other act or contract. [Art 1471, CC]
(b) An admission of non-payment of any
centavo in exchange of a property in a
PAGE 216
UP LAW BOC
SALES
CIVIL LAW
Exceptions:
(1) In Voluntary sales
(a) Where low price indicates a vice of
consent, sale may be annulled.
(b) Where price is so low to be shocking to
the conscience, then sale may be set aside.
(c) Where price is simulated such as when
the real intention was a donation or some
other contract.
(d) Where the parties did not intend to be
bound at all, sale is void.
INADEQUACY OF PRICE
PAGE 217
UP LAW BOC
SALES
Formation of Contract of
Sale
EARNEST
MONEY
MONEY
PREPARATORY
(1) OFFER
VS.OPTION
IN GENERAL:
(a) The contract of sale is perfected at the
moment there is meeting of the minds
upon the thing which is the object of the
contract and upon the price. [Art. 1475,
par.1, CC]
(b) From that moment, the parties may
reciprocally
demand
performance,
subject to the provisions of law
governing the form of contracts. [Art.
1475, par. 2, CC]
(c) A private instrument signed by the
defendant reciting that he bought from
the plaintiff a property at a specific
address for a specific price to be paid as
soon as a bill of sale is signed is not a
mere draft but a perfected agreement
and hence, obligatory, even if there was
no statement as to area or price per
meter. [Goyena v. Tambunting, 1902]
CIVIL LAW
Earnest Money
Part of purchase price
[Art 1482, CC]
Given only when there
is already a sale
When given, the buyer
is bound to pay the
balance
False Price
Non-payment of Price
Real price is not Failure of buyer to pay
declared
the price
Contract is void if it Contract is not void but
should not be proved gives rise to a right to
that it was founded demand fulfillment or
upon another casue cancellation of the
which is true and lawful obligation
[Art 1353, CC]
PAGE 218
UP LAW BOC
SALES
CIVIL LAW
(2) ACCEPTANCE
(a) Definition
i. An accepted unilateral promise to buy
or sell supported by a consideration
distinct from the price (Art 1479, CC)
ii. An option contract is a privilege
existing in one person, for which he had
paid a consideration, which gives him
the right to buy, for example, certain
merchandise or certain specified
property, if he chooses, at any time
within the agreed period, at a fixed
price. [De la Cavada vs. Diaz, 1918]
iii. An option is not of itself a purchase,
but merely secures the privilege to buy.
iv. A consideration for an optional
contract is just as important as the
consideration for any other kind of
contract. If there was no consideration
for the option, then it cannot be
enforced any more than any other
contract where no consideration exists.
[Baviera]
PAGE 219
UP LAW BOC
SALES
Sale of property
CIVIL LAW
Option Contract
Unilateral: gives a right
to buy or to sell, but
imposes no obligation
on the part of the
option-holder,
aside
from the consideration
for the offer
Sale of right to
purchase
PERFECTION
WHEN PERFECTED
(1) Contract of sale is a consensual contract,
hence perfected at the moment of the
meeting of the minds of the parties as to the
object of the contract and the price. [Art
1475,CC]
(2) It is the proof of all the essential elements of
the contract of sale, and not the mere giving
of earnest money, which establishes the
existence of a perfected sale. [Platinum
Plans Phils. vs. Cucueco, 2006]
EFFECT OF PERFECTION
From the moment of the perfection of the
contract of sale, the parties may reciprocally
demand performance, subject to the provisions
of the Statute of Frauds. [Art 1475, CC]
PAGE 220
UP LAW BOC
SALES
CIVIL LAW
CONSUMMATION
PAGE 221
UP LAW BOC
SALES
CIVIL LAW
GENERAL CONCEPTS
Transfer of ownership is effected even if the
purchase has been made on credit.
Payment of the purchase price is not essential
to transfer of ownership as long as the property
sold was delivered.
Intention to transfer ownership
(1) All forms of delivery shall be coupled with
intention of delivering the thing sold.
(2) Seller must be owner or authorized by owner
of the thing sold
When right to transfer ownership must exist: At
the time of delivery and not at the time of
perfection of contract of sale.
Transfer of Ownership
CONCEPT OF DELIVERY
REQUISITES
(1) Identity must be delivered
(2)Integrity in a consition suitable for
enjoyment
(3) Intentional
MANNER OF TRANSFER
WHAT TO DELIVER
(1) Thing sold [Art. 1495]
(2) Fruits [Art. 1164 & 1537]
(3) Accessions and accessories [Art. 1166 & 1537]
(a) Improvements by seller at his expense
grants him a usufructuary right.
(b) No indemnification
(c) But he may remove it to the extent that
there is no damage [Art. 1538]
WHERE TO DELIVER
(1) A hierarchy is followed:(STOR)
(a) Stipulation
(b) Usage of trade
(c) Sellers place of business (office)
(d) Sellers residence
(2) In case of specific goods, which the parties
knew to be at some other place when the
contract was perfected, that place is the place
of delivery
PAGE 222
UP LAW BOC
SALES
CIVIL LAW
WHEN TO DELIVER
Absent a stipulation as to time, delivery must be
made within a reasonable time; demand or
tender of delivery shall be made at a reasonable
hour.
Hour of delivery: usually during business hours
WHEN DELIVERY DOES NOT TRANSFER
TITLE
(1) Sale on Approval or Trial
General Rule: Title remains with the seller.
Buyer has option to purchase goods if proven
satisfactory, the approval of the buyer being a
condition precedent. (Same exceptions with sale
on return)
Express Reservation
If it was stipulated that ownership in the thing
shall not pass to the purchaser until he has fully
paid the price [Art 1478, CC]
Implied Reservation
The following are instances when there is an
implied reservation of ownership:
(a) Goods are shipped, but by the bill of
lading goods are deliverable to the seller
or his agent, or to the order of the seller or
his agent
(b) Bill of lading is retained by the seller or
his agent.
(c) When the seller of the goods draws on the
buyer for the price and transmits the bill
of exchange and bill of lading to the
buyer, and the latter does not honor the
bill of exchange by returning the bill of
lading to the seller.
Exceptions: (REROM)
(a) Seller has a Right to transfer ownership
PAGE 223
UP LAW BOC
SALES
CIVIL LAW
KINDS OF DELIVERY
(1) Actual delivery
(a) When deemed made: when the thing sold
is placed in the control and possession of
the vendee [Art. 1497]
(b) Not always essential to passing of title
[Art. 1475]
(c) Parties may agree when and on what
conditions the ownership shall pass to the
buyer [E.g.: Art 1478 where ownership will
only pass after full payment of the price]
PAGE 224
UP LAW BOC
SALES
CIVIL LAW
Exceptions
(i) Seller reserved title by the form of the
bill of lading, with intent to remain the
owner, not merely for the purpose of
securing payment, OR
(ii) Contrary intention appears in the
contract (i.e. seller is required to
deliver goods to buyer at the point of
destination)
(iii) F.O.B. (Free on Board or Freight on
Board):When seller bears the expenses
of transportation up to the F.O.B.
point.
(iv) C.I.F. (Cost, Insurance, Freight):Price
quoted includes the costs of the goods,
insurance, and freight charges on the
goods up to the point of destination.
(v) F.A.S. (Free Alongside):Seller bears the
expenses of transportation until he
delivers the goods alongside a vessel
at a named port.
DOUBLE SALES
General Rule: Prior tempore, potior jure (he who
is first in time is preferred in right) applies.
RULES
GOVERNING
SALE
OF
MOVABLES,
IMMOVABLES
AND
UNREGISTERED LANDS
(2) Immovables
(a) Ownership belongs to the person who:
(i) In good faith first recorded it in the
Registry of Property; OR
(ii) If there is no inscription, ownership
passes to the person who in good
faith was first in possession; OR
PAGE 225
UP LAW BOC
SALES
CIVIL LAW
of
(b) Presumption
General Rule: As a rule, he who asserts
the status of a purchaser in good faith
and for value has the burden of proving
such assertion. This onus probandi cannot
be discharged by mere invocation of the
legal presumption of good faith, i.e., that
everyone is presumed to act in good faith
[Mathay v CA, 1998]
When buyer is presumed to be in bad faith:
(i) Annotation of adverse claim: Places any
subsequent buyer of the registered land
in bad faith. [Balatbat v CA, 1996]
(ii) Annotation of Lis Pendens: Buyer
cannot be considered an innocent
purchaser for value where it ignored the
lispendens on the title.
(iii) A purchaser of a parcel of land cannot
close his eyes to facts which should put
a reasonable man upon his guard, such
as when the property subject of the
purchase is in the possession of persons
PAGE 226
UP LAW BOC
SALES
Risk of Loss
CIVIL LAW
GENERAL RULE
Res perit domino: Owner bears risk of loss
BASIS: Ownership is not transferred until
delivery.
Annotation of Adverse
Claim
May be cancelled only
in one instance, i.e.,
after the claim is
adjudged invalid or
unmeritorious by the
Court
AFTER DELIVERY
Buyer bears risk of loss
WHEN OWNERSHIP IS
TRANSFERRED
WHEN OWNERSHIP IS TRANSFERRED TO THE
BUYER, THE GOODS ARE AT THE BUYERS
RISK
(1) Where delivery of the goods has been made
to the buyer or to a bailee for the buyer, in
pursuance of the contract and the ownership
in the goods has been retained by the seller
PAGE 227
UP LAW BOC
SALES
CIVIL LAW
NEGOTIABLEDOCUMENTS
TITLE
DETERIORATION
OF
How negotiated
Endorsed in blank by
the person to whose
order the goods were
supposed
to
be
delivered
Goods are deliverable By indorsement of
to the order of a such person [Art.
specified person
1509, CC]
Documents of Title
DEFINITION
A document used in the ordinary course of
business in the sale or transfer of goods, as
proof of the possession or control of the goods,
or authorizing or purporting to authorize the
possessor of the document to transfer or
receive, either by endorsement or by delivery,
goods represented by such document. [Art.
1636]
PURPOSE OF DOCUMENTS OF
TITLE
(1) As evidence of possession or control of goods
described therein
(2)As a medium of transferring title and
possession over the goods described therein
without having to effect actual delivery
thereof [Villanueva]
NON-NEGOTIABLE
DOCUMENTS OF TITLE
PAGE 228
UP LAW BOC
SALES
Transfer
Delivery of a negotiable
document of title to
another if by the terms
thereof, the goods are
deliverable to bearer, or
when the document was
endorsed in blank by the
person to whose order the
goods are deliverable.
The assignment of
rights
of
the
consignee of a
non-negotiable
document of title
to another; or
CIVIL LAW
RULES ON
LEVY/GARNISHMENT OF
GOODS
Document of title
was ordered sold
or
assigned,
In a negotiable document without
of title, the buyer may indorsement.
acquire a better title than
his transferor.
Transferee does
not acquire a
better title than
his transferor
WARRANTIES OF SELLER OF
DOCUMENTS OF TITLE
A PERSON WHO NEGOTIATES A DOCUMENT
OF TITLE WARRANTS
(1) Genuineness of document
(2) Legal right to negotiate or transfer
(3) No knowledge of fact which would impair the
validity or worth of the document
(4) Right to transfer the title to the goods and
merchantability or fitness for a particular
purpose, whenever such warranties would
have been implied
PAGE 229
UP LAW BOC
SALES
Remedies of an Unpaid
Seller
CIVIL LAW
PAGE 230
UP LAW BOC
SALES
CIVIL LAW
The unpaid sellers right to rescind for nonperformance is not absolute. Exceptions:
(a) 3rd persons possessing the objects of
the contract to whom no bad faith is
imputable
(b) Casual breach
The seller cannot unilaterally and extrajudicially
rescind a contract absent express stipulation to
do so, except as provided in Art. 1597.
(4) Special rule for sale of movables by
installments Recto Law [Arts. 1484, 1485]
Applies in cases of:
(a) Sale of movables in installment
(i) The rule is intended to apply to sales of
movables, the price of which is payable
in two or more installments, but not to
straight-term sales where the price is
payable in full, after making a down
payment because the law aims to
protect improvident buyers who may be
tempted to buy beyond their means.
[Levy Hermanos vs. Gervacio, 1939]
(b) Lease of personal property with option to
buy
(i) When lessor has deprived the lessee of
the possession or enjoyment of the
thing (Ex.: When lessor files a complaint
for replevin against lessee)
(ii) Also applies when seller assigns his
credit to someone else
PAGE 231
UP LAW BOC
SALES
Performance of Contract
CIVIL LAW
PAGE 232
UP LAW BOC
SALES
CIVIL LAW
PAYMENT OF PRICE
Inspections
Right of Inspection: The buyer has
reasonable opportunity to examine the
goods upon delivery. If there is a stipulation
that delivery is preconditioned on payment,
then buyer has no right of inspection until he
has paid. [Art.1584]
SUSPENSION OF PAYMENTS:
Buyer may suspend payment when:
(1) His ownership or possession of the thing is
disturbed; OR
(2) He has reasonable grounds to fear such
disturbance by a vindicatory action or a
foreclosure of mortgage
Exceptions: buyer cannot suspend payment
when:
(1) Seller gives security for the return of the price
in a proper case
(2) It has been stipulated that, notwithstanding
any such contingency, the buyer shall be
bound to pay [Art. 1590]
(a) Suspension may continue until the seller
has caused the disturbance or danger to
cease
(b) However, a mere act of trespass shall not
authorize the suspension of the
payment. [Art.1590]
PAGE 233
UP LAW BOC
SALES
CIVIL LAW
Warranties
EXPRESS WARRANTIES
For there to be express warranty, the following
requisites must concur: (APIR)
(1) An affirmation of fact or any promise relating
to the thing sold;
(2) The natural tendency of such affirmation or
promise is to induce the buyer to buy;
(3) The buyer buys the thing relying thereon.
[Art. 1546]
PAGE 234
UP LAW BOC
SALES
Express Warranty
Dealers or Traders
Talk
(a) Affirmation of the
value of the thing or
statement of the
sellers opinion only is
not a warranty unless:
i. The seller made
it as an expert;
ii. It was relied
upon by the buyer.
[Art.1546]
(b) Ordinarily, what
does not appear on
the face of the written
instrument [Moles v.
IAC, 1989]
False Representation
Reason: buyers duty
to inspect remains
despite
false
representation by the
seller; he has the duty
to
exercise
due
diligence.
IMPLIED WARRANTIES
An implied warranty is derived by law by
implication or inference from the nature of the
transaction
or
relative
situation,
or
circumstances of the parties, irrespective of any
intention of the seller to create it.[De Leon]
(TODS)
(1) Implied Warranty of Title
(2)Implied Warranty against Encumbrance/
Non-Apparent Servitudes
(3) Implied Warranty against Hidden Defects
[Art. 1547]
(a) Implied warranty as to Merchantable
Quality and Fitness of Goods
(b) Implied warranty against Redhibitory
Defect in the Sale of Animals [Art. 1572]
(c) Quality and Fitness of Goods in Sale by
Sample or Description
(4) Other Warranties
Express Warranty
Concealment of facts
does not necessarily
amount
to
false
representation
CIVIL LAW
False Representation
When concealment of
facts comes with an
active misstatement of
fact or a partial
statement of fact such
that withholding of
that unsaid portion
makes that which is
stated absolutely false
PAGE 235
UP LAW BOC
SALES
(d) Seller is summoned and made codefendant in the suit for eviction at the
instance of the buyer. [Power Commercial
and Industrial Corp. v. CA, 1997]
CIVIL LAW
MERCHANTABLE QUALITY:
(1) Where the goods are brought by description
from a seller who deals in goods of that
description [Art.1562]
(2) In a sale by sample, if the seller is a dealer in
goods of that kind and the defect is not
apparent on reasonable examination of the
sample [Art.1566]
In a sale by sample, there is implied warranty
that goods are free from defects not apparent
on reasonable examination of sample and
which render goods unmerchantable. [Mendoza
v. David (2004)]
1572)
Redhibitory defect- a hidden defect of animals
of such nature that expert knowledge is not
sufficient to discover it, even in a case where a
professional inspection has been made
No warranty in case of [Art. 1574]:
(a) Animals sold at fairs or public auctions
(b) Livestock sold as condemned
PAGE 236
UP LAW BOC
SALES
CIVIL LAW
EXPRESS WARRANTY
(1) Prescriptive period: Period specified in express
warranty OR 4 years, if no period is specified
(following the general rule on rescission of
contracts)
(2) Remedies:
(a) Accept goods + demand diminution/
extinction of price
(b) Accept goods + damages
(c) Refuse to accept goods + damages
(d) Rescind (Refuse to accept or return or
offer to return) + recover price paid
(3) Rescission not available when buyer:
(a) Knew of breach of warranty when he
accepted the goods without protest
(b) Fails to notify the seller about election to
rescind within a reasonable period of time
(c) Fails to return or offer to return the goods
to the seller in substantially a good
condition as they were when delivered,
unless deterioration was due to breach of
warranty
(4) Measure of damages: Difference between
value of goods at the time of delivery and
the value they would have had if they had
answered to the warranty
(5) Effects of rescission:
(a) Buyer no longer liable for price
i. Entitled to the return of any part of
price paid, concurrently with or
immediately after an offer to return
the goods
(b) If seller refuses to accept offer to return
goods: buyer deemed as bailee for seller
and has right of lien to secure payment
of part of price paid
EFFECTS OF WARRANTIES
EFFECTS OF WAIVERS
Only applicable to waiver of warranty against
eviction; parties may increase or decrease
warranty against eviction but the effect depends
on good/bad faith of the seller:
(1) Seller in bad faith and there is warranty
against eviction null and void
(2) Buyer without knowledge of a particular risk
and made general renunciation of warranty
not waiver but merely limits liability of
seller in case of eviction (pay value of
subject matter at the time of eviction)
(3) Buyer with knowledge of risk of eviction
assumed its consequences and made a
waiver vendor not liable
(4) Waiver to a specific case of eviction wipes
out warranty as to that specific risk but not
as to eviction caused by other reasons
One who purchases real estate with knowledge
of defect or lack of title cannot claim he
acquired title thereto in good faith, as against
true owner of land or of interest therein. [J.M.
Tuason v. CA (1979)]
The same rule must be applied to one who has
knowledge of facts which should have put him
upon such inquiry and investigation as might be
necessary to acquaint him with the defects in
the title of his vendor. A purchaser cannot close
his eyes to facts which should put a reasonable
man upon his guard and then claim that he
acted in good faith under the belief that there
was no defect in the title of the vendor.
PAGE 237
UP LAW BOC
SALES
CIVIL LAW
Total Eviction
Partial Eviction
Enforce liability for Enforce
liability
eviction
(demandVICED)
OR
Demand from seller: Rescind
(VICED)
(a) If he would not
(a) Value of thing
have bought the
sold at time of
thing
sold
eviction
without the part
(b) Income or fruits, if
lost;
he has been (b) BUT he must
ordered to deliver
return the thing
them to the party
without
other
who won the
encumbrances
eviction suit
than those which
(c) Costs of eviction
it had when he
suit and in a
acquired it
proper case, suit
against seller for
warranty
(d) Expenses of the
contract, if buyer
has paid them
(e) Damages and
interests,
and
ornamental
expenses, IF sale
was made in bad
faith
IMPLIED
WARRANTY
AGAINST
ENCUMBRANCES[Art. 1560]
(1) Rescission: Within 1 year from execution of
deed of sale OR
(2) Damages: Within 1 year from execution of
deed of sale or discovery of the burden or
servitude
IMPLIED WARRANTY AGAINST HIDDEN
DEFECTS[Arts. 1567-1571]
(1) If thing is not lost:
(a)Withdraw
from
contract
(accionredhibitoria) + damages
(b) Demand a proportionate reduction of the
price (accionquantiminoris) + damages
(1) Rules:
(a) Buyer need not appeal from decision to
hold seller liable for eviction
(b) When adverse possession commenced
before sale, but prescription period
completed after transfer: seller is not
liable
(c) If property sold for nonpayment of taxes
due and not made known to the buyer
before the sale: seller liable
(d) Judgment debtor also responsible for
eviction in judicial sales, unless it is
otherwise decreed in the judgment
PAGE 238
UP LAW BOC
SALES
CIVIL LAW
Breach of Contract
GENERAL REMEDIES
The following remedies arise from the bilateral
nature of the contract of sale:
(1) Specific performance
(2) Rescission
General rule: Rescission of a contract will not
be permitted for a slight or casual breach,
but only for such substantial and
fundamental breach as would defeat the very
object of the parties in making the
agreement. [Song Fo& Co. vs. HawaiianPhilippine Co., 1925]
(3) Damages
Neither party incurs in delay if the other does
not comply or is not ready to comply in a
proper manner with what is incumbent upon
him [Art 1169, CC]
Prescriptive periods
(1) 10 years if based on written contract
(2) 6 years if based on oral contract
Express Warranty
Implied Warranty
(1) Demand repair (1) Retain the goods
within 30 days
and
recover
(a) Extendible for
damages
causes beyond the
OR
control of the (2) Reject the goods,
warrantor
cancel
contract
(2) Demand refund of
and recover from
price
minus
seller so much of
amount directly
the purchase price
attributable to the
as has been paid +
use
of
the
damages
consumer prior to
the discovery of
the
nonconformity
PAGE 239
UP LAW BOC
SALES
Vendee
CIVIL LAW
becomes
PAGE 240
UP LAW BOC
SALES
CIVIL LAW
When available:
(1) Seller expressly reserved his right to
rescind in case buyer defaults
(2) Buyer has been in default in payment
for an unreasonable time
Transfer of title shall not be held to have
been rescinded by the unpaid seller until
he manifests by notice to the buyer or
some other overt act an intention to
rescind.
Effects:
(1) Seller is no longer liable to the
original buyer upon the contract of
sale or for any profit made by the
resale
(2) Buyer at resale acquires good title as
against the original owner
(3) In case resale is at a loss, seller is
entitled to recover the difference
from the original buyer
(4) Seller may recover damages from
original buyer for breach of contract
PAGE 241
UP LAW BOC
SALES
CIVIL LAW
SALE OF IMMOVABLES
(a) PD 957, sec. 23, 24
Non-forfeiture of payments
(1) No installment payment made by the
buyer shall be forfeited in favor of the
owner or developer of the condominium
or subdivision project, after due notice,
when the buyer desists from paying due
to the failure of the developer or owner
to develop the project according to the
approved plans or within the time limit
stated.
(2) Buyers Remedy: At his option, he may
reimburse the total amount paid
including amortization interest with
interest thereon at the legal rate
(3) If the buyer fails to pay the installments
for reasons other than the failure of the
owner or developer to develop the
project, his rights shall be governed by
RA 6552.
(b) Maceda Law: Sale of Immovables on
Installment
RA 6552: An Act To Provide Protection for
Buyers of Real Estate on Installment
Payments
DOES not apply to:
(1) Industrial lots
(2) Commercial buildings
(3) Sale to tenants under Agricultural
Reform Code [RA 3844]
Imposes ADDITIONAL REQUIREMENTS FOR
A VALID RESCISSION:
(1) If buyer has paid at least 2 years of
installments: (GRN)
(a) Grace period: 1 month per year of
installment payments made. BUT
buyer may only avail of it only once in
every 5 years
(b) Refund of Cash Surrender Value (CSV):
50% of total amount paid + 5% for
every year after the 1st 5 years of
installments
(i) BUT not greater than 90% of total
amount paid
PAGE 242
UP LAW BOC
SALES
CIVIL LAW
Cancellation
pertains
to
extrajudicial
cancellation. Absence of notice does not bar
filing of an action to cancel the contract.
SALE OF MOVABLE
(1) Remedy for breach of obligation to preserve
If thing is lost
(a) Without fault of seller: No breach;
Obligation is extinguished
(b) Through fault of seller (or through
fortuitous event, if seller is liable):
Damages
PAGE 243
UP LAW BOC
SALES
If thing deteriorates
Without fault of seller
Through fault of seller
NO
BREACH. Rescission + damages
Impairment shall be OR
borne by buyer
Specific performance
+ damages
CIVIL LAW
More
PAGE 244
UP LAW BOC
SALES
Extinguishment of Sale
CIVIL LAW
CAUSES
Generally, extinguished by the same causes as
all other obligations [Arts.1600, 1231]
(P-PLAN-C3-R3)
(1) Payment/performance
(2) Prescription
(3) Loss of thing due
(4) Annulment
(5) Novation
(6) Condonation/remission
(7) Confusion/merger
(8) Compensation
(9) Rescission
(10) Resolutory condition fulfilled
(11) Redemption (Conventional or Legal)
CONVENTIONAL REDEMPTION
DEFINITION
(1) Vendor reserves the right to repurchase the
thing sold, with the obligation to comply with
the provisions of Article 1616 and other
stipulations which may have been agreed
upon. [Art 1601,CC]
(2) Available when the seller reserves the right
to repurchase the thing sold in the same
instrument of sale as one of the stipulations
of the contract [Villarica v CA, 1968]
HOW EXERCISED
(1) By returning the ff. to the buyer: (PEN)
(a) Price of the sale;
(b) Expenses of the contract and other
legitimate payments made by reason of the
sale;
(c) Necessary and useful expenses made on
the thing sold
(2) Complying with any other stipulation agreed
upon, if any.
PERIOD
General Rule: Follow period stipulated in
contract, but should not exceed 10 years.
(1) If no period stipulated, then it shall be four
years from the execution of the contract
(2) But vendor may still exercise the right to
repurchase within thirty days from the time
final judgment was rendered in a civil action
on the basis that the contract was a true sale
with right to repurchase
BY WHOM EXERCISED
(1) Vendor
(2) His heirs, assigns or agents
(3) Creditor, if he has exhausted the property of
the vendor
PAGE 245
UP LAW BOC
SALES
EFFECT OF REDEMPTION
(1) The seller shall receive the thing free from all
charges or mortgages constituted by the
buyer BUT he shall respect leases executed
by the buyer in good faith and in accordance
with local custom.
(2) If there are growing fruits at the time of sale
and at the time of redemption: no
reimbursement or prorating if the buyer did
not pay indemnity at the time of sale
(3) If there were no growing fruits at the time of
sale, but some exist at the time of redemption:
fruits prorated (buyer entitled to part
corresponding to time he possessed the land
in the last year, counted from the anniversary
of the date of sale)
Right to Redeem
The maximum period
for the exercise of the
right to repurchase
cannot exceed 10
years
Requires in addition a
tender of payment of
the amount required
by law, including
consignment thereof if
tender of payment
cannot
be
made
effectively on the
buyer
EFFECT OF NON-REDEMPTION
Ownership is consolidated in the buyer BUT the
consolidation shall not be recorded in the
Registry of property without a judicial order,
after the vendor has been duly heard.
Stipulation that installments paid shall not be
returned is valid insofar as the same may not be
unconscionable under Art. 1486. Since the
defendant admitted using the units, this means
they did not pay the monthly installments, using
units free to prejudice of petitioner. Under the
circumstances, the treatment of the installment
payments as rentals cannot be said to be
unconscionable. [Delta Motor Sales v. Niu Kim
Duan (1992)]
Option to Purchase
The period of the
option contract may
be beyond the 10-year
period
May be exercised by
notice of its exercise to
the offeror
EQUITABLE MORTGAGE
Right to Redeem
Not
a
separate
contract but part of a
main contract of sale,
and
cannot
exist
unless reserved at the
time of the perfection
of the main contract of
sale
Does not need its
separate consideration
to be valid and
effective
CIVIL LAW
Option to Purchase
Generally a principal
contract and may be
created independent
of another contract
Must
have
a
consideration separate
and distinct from the
purchase price to be
valid and effective
[Arts. 1324 and 1479]
PAGE 246
UP LAW BOC
SALES
CIVIL LAW
PERIOD OF REDEMPTION
Art. 1606. The right referred to in Article 1601, in
the absence of an express agreement, shall last
four years from the date of the contract.
Should there be an agreement, the period
cannot exceed ten years.
PAGE 247
UP LAW BOC
SALES
CIVIL LAW
LEGAL REDEMPTION
DEFINITION
(1) Right to be subrogated:
(a) upon the same terms and conditions
stipulated in the contract,
(b) in the place of one who acquires a thing
by purchase or dation in payment, or by
any other transaction whereby ownership
is transmitted by onerous title [Art 1619,
CC]
(2) Applies to transfers of ownership by onerous
title where subrogation is possible. Hence, it
cannot apply to barter or to transfer by
gratuitous title or hereditary succession.
(3) Applies to sales with pacto de retro [Baviera
citing MANRESA]
PAGE 248
MANNER
(1) a formal offer to redeem or
(2) filing of an action in court together with the
consignation of the redemption price within
the reglementary period
PERIOD TO REDEEM
To whom granted
Period
(a) Co-owner
[Art 30 days from notice
1620]
(a) In writing
(b) By the seller
(b) Adjoining owner of (c) Of
the
actual
Rural Land [Art
execution
and
1621]
delivery of the deed
of sale
(c) Adjoining owner of
urban land [Art.
1622]
UP LAW BOC
To whom granted
SALES
Period
Actual knowledge of
the sale is immaterial ,
absent any showing
that the co-owner has
been shown a copy of
the deed of sale
through a written
communication.
[Doromal v. CA, 1975]
PAGE 249
CIVIL LAW
To whom granted
Debtor-mortgagor in
case
of
judicial
foreclosure of real
estate mortgage IF the
mortgagee is a bank
or
a
banking
institution. [The
General Banking Law
of 2000]
Agricultural
lessee
w/o knowledge of sale
of
landholding
[Agrarian Land
Reform Code, Sec.12]
Period
90 days from finality
of judgment
UP LAW BOC
SALES
Right of Redemption
If the resale has been
perfected, the owner
of the adjoining land
shall have a right of
redemption, also at a
reasonable price
Priority if 2 or more
adjoining owners want
to redeem: owner
whose intended use of
the land appears to be
best justified
CIVIL LAW
Right of Pre-emption
Right of Redemption
Arises before sale
Arises after sale
No rescission because There
can
be
no sale exists yet
rescission
of
the
original sale
The action is directed Action is directed
against
prospective against buyer
seller
(4) Redemption of Credit
Available when it is sold while in litigation
(From the time the complaint is answered)
NOT available when the assignment is in
favor of:
(a) Co-heir/co-owner of right assigned
(b) Creditor in payment of his credit
(c) Possessor of a tenement or piece of land
which is subject to the right assigned
How exercised: reimburse the assignee for
the:
(a) Price paid
(b) Judicial expenses incurred
(c) Interest on the price from date of payment
(5) Under the Public Land Act
Coverage:
(a) Every conveyance of land acquired under
a free patent or homestead
(b) The ownership of the land must have
been transferred to another. If the
transaction is a mere promise to sell,
there is no right yet to redeem
(c) This refers to conveyances made after the
prohibited 5 years from the issuance of
the patent or grant
Period:
(a) Within 5 years from the date of
conveyance
(b) If pacto de retro sale, the period to
redeem cannot be less than 5 years
Who may redeem:
(a) General Rule: Applicant, widow, or heirs
(b)Exception: land is sold to another member
of the family of the applicant, or his direct
descendant or heir
(c) From whom: Subsequent purchasers
PAGE 250
UP LAW BOC
SALES
CIVIL LAW
In
extra
judicial
foreclosure
(a) Debtor
(b)Successor
in
interest
(c)Judicial or judgment
creditor of said
debtor
(d)Junior
encumbrancer
In execution sales
(a) Judgment debtor
(b)
Successor
in
interest
(c) Creditor having a
lien on the property
sold by attachment,
judgment
or
mortgage on the
property
subsequent to the
judgment
Period to redeem
Extra judicial Execution sale If land is
foreclosure
(a) within 12 mortgaged in
(a) within
1
months
favor of a bank
year from
after the (a) within
1
the date of
sale
year after
the sale
the
sale
(not
available in
case of a
corporate
mortgagor)
Amount of redemption
(a) Amount of the purchase
(b) Interest at 1% per month from the time of
the sale up to the time of redemption
(c) Any assessment or taxes which the
purchaser may have paid
AGE REDEMPTION
Art. 1619. Legal redemption is the right to be
subrogated, upon the same terms and
conditions stipulated in the contract, in the
place of one who acquires a thing by purchase
or dation in payment, or by any other
transaction whereby ownership is transmitted
by onerous title.
PAGE 251
UP LAW BOC
SALES
PUBLICATION
AND
ISSUANCE
OF
REGISTRATION CERTIFICATE [SECTION 4, PD
957]
REQUIREMENTS
FOR
OWNERS
CIVIL LAW
AND
DEVELOPERS
(1)Registration
of
projects
(subdivision/condominium) with the NHA
(2) Registration of the owner
(3) License to sell of owner or dealer with
performance bond [PB, exceptions in Section
7]
PAGE 252
UP LAW BOC
SALES
CIVIL LAW
(4)
GROUNDS
FOR
REVOCATION
OF
REGISTRATION CERTIFICATE AND LICENSE TO
SELL [SECTION 9, PD 957]
(1) Insolvency of owner/dealer
(2) Violation of owner of PD 957 or its IRR or any
undertaking of his/its performance bond
(3) Has been or is engaged or is about to
engage in fraudulent transactions
PAGE 253
UP LAW BOC
SALES
CIVIL LAW
PAGE 254
UP LAW BOC
SALES
CIVIL LAW
OTHER DEFINITIONS
TRANSFERS OR CONVEYANCES OF A
UNIT OR AN APARTMENT, OFFICE
OR STORE, OR OTHER SPACE
THEREIN [SECTION 5, RA 4726]
PAGE 255
UP LAW BOC
SALES
CIVIL LAW
DECLARATION OF RESTRICTIONS BY
OWNER OF PROJECT PRECONDITION TO CONVEYANCE
[SECTION 9]
PAGE 256
UP LAW BOC
SALES
CIVIL LAW
ASSESSMENT IN ACCORDANCE
WITH DECLARATION OF
RESTRICTIONS [SECTION 20]
INVOLUNTARY DISSOLUTION OF
THE CONDOMINIUM CORPORATION
[SECTION 12]
CONTENTS OF A DECLARATION OF
RESTRICTIONS [SECTION 9]
STOCKHOLDER/MEMBER
DEMANDING PAYMENT FOR SHARES
OR INTEREST AKA APPRAISAL
RIGHT [SECTION 17]
PAGE 257
UP LAW BOC
SALES
REQUIREMENTS
FOR
REGISTRATION OF CONVEYANCE
WITH THE REGISTER OF DEEDS
[SECTION 18]
PAGE 258
CIVIL LAW
PAGE 259
UP LAW BOC
SUCCESSION
General Provisions
DEFINITION
KINDS OF SUCCESSION
OBJECT OF SUCCESSION
TRANSMISSION
CIVIL LAW
AND
Inheritance includes:
All the property, rights and obligations of a
person which are not extinguished by his
death. [Art. 776, CC]
Not only the property and the transmissible
rights and obligations existing at the time of
his death, but also those which have accrued
thereto since the opening of the succession.
[Art. 781, CC]
What are transmitted?
Rights and obligations which are not strictly
personal (intuit personae).
Money debts of the decedent are not
transmitted to the heirs nor paid by them. The
estate pays them. [Balane, 2010)
RULE ON TRANSMISSION
General rule: All property rights which have
accrued to the hereditary estate since the
opening of succession are transmitted to the
heirs.
SUBJECTS OF SUCCESSION
PAGE 260
UP LAW BOC
SUCCESSION
CHARACTERISTICS OF WILLS
(1) Purely personal will-making is nondelegable
Making of a will cannot be left in whole or
in part of the discretion of a third person, or
accomplished through the instrumentality
of an agent or attorney. [Art. 784, CC]
Testator may not make a testamentary
disposition in such manner that another
person has to determine whether or not it
is to be operative. [Art. 787, CC]
What cannot be
delegated to third
persons
WILLS
Will an act whereby a person is permitted, with
the formalities prescribed by law to control to a
certain degree the disposition of his estate to
take effect after his death. [Art. 783, CC]
KINDS OF WILLS
(1) Notarial an ordinary or attested will, which
must comply with the requirements of the
law. [Arts. 804-808, CC]
(2) Holographic a will entirely written, dated
and signed by the hand of the testator. [Art.
810, CC]
What may be
entrusted to third
persons
(1) Designation
of
person/institutio
n falling under a
class specified by
testator;
(2) Manner
of
distribution
of
property specified
by testator. [Art.
786, CC]
(1) Designation
of
heirs,
devisees
and legatees;
(2) Duration/efficacy
of designation;
(3) Determination of
portions, when
referred to by
name. [Art. 785,
Note: testator must
CC]
first specify the class
and
amount
of
property for proper
delegation.
Testamentary Succession
IN GENERAL
CIVIL LAW
PAGE 261
UP LAW BOC
SUCCESSION
Kinds of Ambiguities
Patent or Extrinsic
Ambiguity
CIVIL LAW
AND
Latent or Intrinsic
Ambiguity
One which cannot be
seen from the reading
of the will but which
One which appears
appears only upon
upon the face of the
consideration
of
instrument.
extrinsic
circumstances.
There is no distinction between patent and latent
ambiguities insofar as the admissibility of parol
or extrinsic evidence to aid testamentary
disposition is concerned.
GOVERNING LAWS, IN GENERAL
Aspect of the Will
Formal Validity
Intrinsic Validity
Governing Law
Law in force at the time
the will was executed. [Art.
795, CC]
Law of decedents
nationality at the time of
his death. [Art. 16 and
2263, CC]
TESTAMENTARY
INTENT
CAPACITY
AND
PAGE 262
UP LAW BOC
SUCCESSION
CIVIL LAW
GOVERNING LAW AS
EXECUTION OF WILL
Place of
Execution of
Will
Philippines
Filipino
Outside of
the
Philippines
Philippines
Alien
Outside of
the
Philippines
FORM
IN GENERAL [Art. 804, CC]
(1) The will must be in writing.
(2) It must be in a language or dialect known to
the testator.
APPLICABLE LAWS AS TO FORMAL VALIDITY
Formal validity is governed by the law in force
at the time the will was executed. [Art. 795, CC]
As to the place, forms and solemnities of a will
are governed by the law of the country in which
the will was executed. [Art. 17, CC]
Arts. 815-817 (summarized in the table below)
provide for the various governing laws in these
instances:
(1) A will was made in a foreign country by a
Filipino [Art. 815, CC]
TO
PLACE
OF
Governing Law
Philippine Law [Art.
16, CC]
(1) Law of the
country in which
it is executed
[Art. 17, CC]; or
(2)Philippine Law.
[Art. 815, CC]
(1) Philippine Law;
or
(2) Law of the
country of which
testator is a
citizen
or
subject.
[Art.
817, CC]
(1) Law of the place
where the will is
executed [Art. 17,
CC]; or
(2)Law of the place
where
the
testator resides;
or
(3) Law
of
the
testators
country; or
(4)
Philippine
Law. [Art. 816,
CC]
PAGE 263
UP LAW BOC
SUCCESSION
Subscription
Mechanical (act of the
hand)
Purpose
identification
of
CIVIL LAW
PAGE 264
UP LAW BOC
SUCCESSION
Devises or legacies in
favor of a spouse,
parent or child who
also attests to the will
as a witness shall be
void
HOLOGRAPHIC WILLS
of
Examples:
(1) Whether all pages are consecutively
numbered;
(2) Whether the signatures appear in each and
every page;
(3) Whether the subscribing witnesses are
three;
(4) Whether the will was notarized. [Caneda v.
CA (1993)]
(7) WITNESSES
Qualifications [Art. 820, CC]
(1) Of sound mind;
(2) Aged 18 years or over;
(3) Not blind, deaf or dumb;
(4) Able to read and write.
Disqualifications [Art. 821, CC]
(1) Person not domiciled in the Philippines;
(2) Those who have been convicted
falsification, perjury, or false testimony.
CIVIL LAW
Exception
If there are three other
competent witnesses,
the device or legacy
shall be valid and the
interested
witness
shall be treated as a
mere surplusage
Requisites:
(1) In writing [Art. 804, CC];
(2) In a language known to the testator [Art.
804, CC];
(3) Entirely written, dated and signed in the
hand of the testator himself. [Art. 810, CC]
Advantages
Disadvantages
No guarantee as to
the capacity of the
testator.
No
protection
against
violence,
intimidation or undue
influence.
May not faithfully
express the will of
the testator due to
faulty expressions.
Can be easily falsified
and concealed.
Induces foreigners in
this jurisdiction to
set down their last
wishes.
Guarantees
the
absolute secrecy of
the
testamentary
dispositions.
PAGE 265
UP LAW BOC
SUCCESSION
Effect
Insertion
considered
not written. Validity
cannot be defeated by
the malice or caprice of
a third person
Will is valid, insertion is
void.
Insertion becomes part
of the will. Entire will
becomes void because
it is not wholly written
by the testator.
Will is void because it is
not written entirely by
the testator.
JOINT WILLS
(1) A single testamentary instrument,
(2) Which contains the wills of two or more
persons,
CIVIL LAW
CODICILS
CODICIL
(1) It is a supplement or addition to a will,
(2) Made after the execution of a will,
(3) And annexed to be taken as a part of the will,
(4) By which any disposition made in the original
will is explained, added to, or altered.
(5) In order that it may be effective, it shall be
executed as in the case of a will. [Arts. 825826, CC]
INCORPORATION BY REFERENCE
Requisites [Art. 827, CC]:
(1) The document or paper referred to in the will
must be in existence at the time of the
execution of the will;
(2) The will must clearly describe and identify
the same, stating among other things the
number of pages thereof;
(3) It must be identified by clear and satisfactory
proof as the document or paper referred to
therein; and
(4) It must be signed by the testator and the
witnesses on each and every page, except in
PAGE 266
UP LAW BOC
SUCCESSION
REVOCATION
MODES OF REVOCATION [Art. 830, CC]
(1) By implication of law; or
(2) By the execution of a will, codicil or other
writing executed as provided in the case of
wills; or
(3) By burning, tearing, canceling, or obliterating
the will with the intention of revoking it, by
the testator himself, or by some other person
in his presence, and by his express direction.
The act contemplating revocation must be done
at any time before the death of the testator. The
right of revocation cannot be waived or
restricted. [Art. 828, CC]
LAW GOVERNING REVOCATION [Art. 829,
CC]
Place of
Revocation
Testators
Governing Law
Domicile
Philippines, or
Philippine some other Philippine Law
s
country
Philippines
Philippine Law
(1) Law of the
place where
the will was
made; or
(2) Law of the
place in which
the
testator
Outside
Foreign
had
his
the
Country
domicile at the
Philippine
time
of
s
revocation.
DOCTRINE OF DEPENDENT RELATIVE
REVOCATION
Molo v. Molo (1951)
The rule that where the act of destruction is
connected with the making of another will so
as to fairly raise the inference that the testator
meant the revocation of the old to depend
upon the efficacy of the new disposition
intended to be substituted, the revocation will
be conditional and dependent upon the efficacy
CIVIL LAW
PAGE 267
UP LAW BOC
SUCCESSION
CIVIL LAW
Pastor v. CA (1983)
Probate court may pass upon the title to a
property, but such determination is provisional
and not conclusive, and is subject to the final
decision in a separate action to resolve title.
Republication
Revival
Takes place by an
Takes place by
act of the testator.
operation of law.
Corrects extrinsic
Restores a revoked
and
intrinsic
will.
defects.
Revocation
Disallowance
Voluntary act of the Given
by
judicial
testator.
decree.
Must always be for a
With or without cause.
legal cause.
Always total, except
when the ground of
fraud or influence for
May be partial or total.
example affects only
certain portions of the
will.
Effect of final decree of probate, res judicata
on formal validity
Mercado v. Santos (1938)
The probate of a will by the probate court having
jurisdiction thereof is usually considered as
conclusive as to its due execution and validity,
and is also conclusive that the testator was of
sound and disposing mind at the time when he
executed the will, and was not acting under
duress, menace, fraud, or undue influence, and
that the will is genuine and not a forgery.
GROUNDS FOR DENYING PROBATE
(1) If the signature of the testator was procured
by fraud;
(2) If it was procured by undue and improper
pressure and influence, on the part of the
beneficiary or some other person;
(3) If the testator acted by mistake or did not
intend that the instrument he signed should
be his will at the time affixing his signature
thereto;
(4) If the testator was insane or otherwise
mentally incapable of making a will at the
time of its execution;
(5) If the formalities required by law have not
been complied with; or
(6) If it was executed through force or under
duress, or the influence of fear, or threats.
[Art. 839, CC]
PAGE 268
UP LAW BOC
SUCCESSION
INSTITUTION OF HEIRS
Institution of Heirs an act by virtue of which the
testator designates in his will the person or
persons who are to succeed him in his property
and transmissible rights and obligations. [Art.
840, CC]
A will shall be VALID even though it:
(1) Should not contain an institution of an heir
or
(2) Such institution should not comprise the
entire estate or
(3) The person so instituted should not accept
the inheritance or be incapacitated to
succeed.
In such cases, the testamentary dispositions
made in accordance with law shall be complied
with and the remainder of the estate shall pass
to the legal heirs [Art. 841, CC].
MANNER OF INSTITUTION
RULES ON IDENTITY OF HEIRS [Arts. 843849, CC]
The heir must be designated with sufficient
clarity.
If an unknown person is instituted, the
disposition is void (UNLESS by some event, the
identity becomes certain).
If a definite class or group of persons is
instituted, institution is valid.
CIVIL LAW
MANNER OF DISTRIBUTION
PAGE 269
UP LAW BOC
SUCCESSION
PRETERITION
CIVIL LAW
PAGE 270
Preterition
Tacit deprivation of
a compulsory heir of
his legitime.
May be voluntary
but the presumption
of law is that it is
involuntary.
Law presumes there
has been merely
oversight or mistake
on the part of the
testator.
Since
preterition
annuls
the
institution of heirs,
the omitted heir
gets not only his
legitime but also his
share in the free
portion not disposed
of by way of legacies
and devises.
Disinheritance
Express deprivation
of a compulsory heir
of his legitime.
Always voluntary.
For some
legal
cause.
If the disinheritance
is
valid,
the
compulsory
heir
disinherited is totally
excluded from the
inheritance. In case
of
invalid
disinheritance, the
compulsory heir is
merely restored to
his legitime.
UP LAW BOC
SUCCESSION
SUBSTITUTION OF HEIRS
Substitution the appointment of another heir,
so that he may enter into the inheritance in
default of the heir originally instituted. [Art. 857,
CC]
KINDS
(1)
(2)
(3)
(4)
Brief or Compendious
Reciprocal
Simple or Common
Fideicommissary
CIVIL LAW
PAGE 271
UP LAW BOC
SUCCESSION
TESTAMENTARY DISPOSITIONS
WITH A CONDITION, A TERM,
AND A MODE
3
KINDS
OF
DISPOSITIONS
TESTAMENTARY
CONDITIONAL DISPOSITIONS
Scriptura
Dispositions
CIVIL LAW
Captatoria/
Legacy-hunting
CASUAL
AND
MIXED
Potestative conditions
General rule: Must be fulfilled as soon as the heir
learns of the testators death.
Exception: If the condition was already complied
with at the time the heir learns of the testators
death; or if the condition is of such a nature that
it cannot be fulfilled again.
Constructive Compliance: deemed fulfilled.
Casual or mixed
General rule: May be fulfilled at any time (before
or after testators death), unless testator provides
otherwise.
Exception: If already fulfilled at the time of
execution of will:
(1) If testator unaware of the fact of fulfillment
deemed fulfilled
(2) If testator aware:
Can no longer be fulfilled again: deemed
fulfilled.
Can be fulfilled again: must be fulfilled
again.
Constructive Compliance:
If casual not applicable.
If mixed applicable only if dependent partly
on the will of a third party not interested.
PAGE 272
UP LAW BOC
SUCCESSION
CIVIL LAW
LEGITIME
MODAL DISPOSITIONS
PAGE 273
If the testator is an
ILLEGITIMATE CHILD:
(1) LC
and
descendants;
(2) ILC
and
descendants;
(3) In default of Nos.
12, ILP only;
(4) SS.
UP LAW BOC
SUCCESSION
CIVIL LAW
PAGE 274
UP LAW BOC
SUCCESSION
CIVIL LAW
Surviving Relatives
LC & Descendants
SS
LC alone
1 LC, SS
1/2
LC, SS
LC, ILC
1/2
1/2
in
portions
LP alone
LP, ILC
LP, SS
1/4
10
1/8
11
12
ILC alone
ILC, SS
13
SS alone
1/2
in
portions
1/2
in
portions
ILC
LP &
Ascendants
ILP
1/4
equal
Same portion as 1
LC
equal
equal
Same as share of 1
LC
1/2
1/2
1/4
1/2
1/3
1/2
*SS alone where
marriage
is
in
articulo mortis and
testator dies within
3 months from
marriage 1/3
But if they have
been
living
together
as
husband and wife
for more than 5
years 1/2
14
15
ILP alone
ILP, SS
1/2
1/4
1/4
PAGE 275
UP COLLEGE OF LAW
SUCCESSION
PAGE 276
UP COLLEGE OF LAW
SUCCESSION
(1) The
prepositus
acquired
property
gratuitously from an ascendant, a brother or
sister.
(2) In his will, he institutes as his heir his
ascendant (who is also a compulsory heir)
such that the ascendant receives half of the
estate by operation of law as legitime and
the other half by testamentary disposition.
Two Views
Reserva Maxima: The entire property will be
considered acquired as legitime and therefore
wholly reservable.
Reserva Minima: One half is reservable, the
other half is not subject to reserva troncal.
[Tolentino, p. 284]
DISINHERITANCE
DEFINITION [Art. 915, CC]
REQUISITES
OF
DISINHERITANCE
VALID
PAGE 277
UP COLLEGE OF LAW
SUCCESSION
921, CC]
PAGE 278
UP COLLEGE OF LAW
SUCCESSION
3
4
5
6
7
8
9
10
11
12
13
14
15
CC 919
Children &
Descendants
CC 920
Parents &
Ascendants
CC 921
Spouse
CC 1032
Unworthiness
PAGE 279
UP COLLEGE OF LAW
MODES
OF
REVOCATION
DISINHERITANCE
SUCCESSION
OF
Ineffective
Disinheritance
Person
disinherited
may be any compulsory
heir
Only
annuls
the
institution in so far as it
prejudices the person
disinherited
Preterition
Person omitted must
be a compulsory heir
in the direct line
Annuls the entire
institution of heirs
918, CC]
INSTANCES
OF
INEFFECTIVE
DISINHERITANCE:
(1) There is no specification of the cause.
(2) The cause is not proved.
(3) The cause is not among those specified in
the provisions.
PAGE 280
UP COLLEGE OF LAW
SUCCESSION
PAGE 281
UP COLLEGE OF LAW
SUCCESSION
EFFECT
Estate is obliged to pay the debt
Other charges pass to the legatee or devisee
Effective only as regards the credit or debt existing at the time of the testators
death
Legacy lapses if the testator later brings action against the debtor
If generic, comprises all credits/debts existing at time of execution of will
To a creditor
legacies
and
Legacy of education
Legacy of support
ORDER OF PAYMENT IN CASE THE ESTATE IS NOT SUFFICIENT TO COVER ALL THE LEGACIES
AND DEVISES
ART. 911
ART. 950
ORDER OF PREFERENCE
Remuneratory legacy/devise
Preferential legacy/devise
Legitime of compulsory heirs
Legacy for Support
Donations Inter vivos
Legacy for Education
Preferential legacies or devises
Legacy/devise of Specific, determinate thing which forms a part
All Other legacies or devises pro rata
of the estate
All Others pro rata
APPLICATION
When the reduction is necessary to preserve the legitime of
When there are no compulsory heirs and the entire estate is
compulsory heirs from impairment whether there are donations
distributed by the testator as legacies or devises; or
inter vivos or not; or
When there are compulsory heirs but their legitime has already
been provided for by the testator and there are no donations inter
When, although, the legitime has been preserved by the testator
vivos.
himself there are donations inter vivos.
Art. 911, CC governs when there is a conflict between compulsory
heirs and the devisees and legatees.
PAGE 282
UP LAW BOC
SUCCESSION
CIVIL LAW
Legal or Intestate
Succession
951, CC]
GENERAL PROVISIONS
Intestacy that which takes place by operation
of law in default of compulsory and
testamentary succession. Not defined in the
Civil Code.
PAGE 283
UP LAW BOC
SUCCESSION
(1) Relatives
(a) Legitimate ascendants
(b) Illegitimate parents
(c) Legitimate children
(d) Illegitimate children
(e) Surviving Spouse
(f) Brothers, sisters, nephews and nieces
(BSNN)
(g) Other collateral relatives
(2) Surviving spouse
(3) State (through escheat proceedings)
FUNDAMENTAL
PRINCIPLES
INTESTATE SUCCESSION
CIVIL LAW
Note:
If one of the legitimate ascendants,
illegitimate parents, legitimate children or
illegitimate children survives, the brother,
sisters, nephews, and nieces (BSNN) are
excluded.
If one of the legitimate ascendants,
illegitimate parents, legitimate children,
illegitimate children or surviving spouse
survives, the other collateral relatives and the
state are excluded.
If any of the heirs concur in legitimes, then
they also concur in intestacy.
IN
RELATIONSHIP
The number of generations determines the
proximity of the relationship. Each generation
forms one degree. [Art. 963, CC]
PAGE 284
UP LAW BOC
SUCCESSION
CIVIL LAW
RIGHT OF REPRESENTATION
Representation right created by fiction of law,
by virtue of which the representative is raised to
the place and the degree of the person
represented, and acquires the rights which the
latter would have if he were living or if he could
have inherited [Art. 970, CC]
Effect of Representation
The representative heir acquires the rights
which the person represented would have if he
were living or if he could have inherited.
When it occurs
Representation is allowed with respect to
inheritance conferred by law (legitime and
intestate based on Art. 923).
PAGE 285
UP LAW BOC
SUCCESSION
CIVIL LAW
between legitimate
applicable.
and
illegitimate,
if
PAGE 286
UP LAW BOC
SUCCESSION
CIVIL LAW
Illegitimate
children
descendants (ICD)
State
State
1
2
6
7
or
Excludes
Ascendants,
Collaterals and
State
ILP,
Collaterals and
State
Collaterals and
State
Collaterals and
State
Excluded By
Concurs With
No one
SS + ILC
No one
SS, LC, LP
LC
ILC + SS
LC and ILC
SS
SS
No one
Siblings,
Nephews
Nieces
SS
Everyone
No one
LC + LD
ILC + D
LP + LA
ILP
th
PAGE 287
UP LAW BOC
OUTLINE
SHARES
SUCCESSION
OF
INTESTATE
LEGITIMATE
PARENTS
SURVIVING SPOUSE
AND
AND
ILLEGITIMATE
CHILDREN
SURVIVING SPOUSE
AND
SURVIVING
SPOUSE
ILLEGITIMATE PARENTS
AND
LEGITIMATE ASCENDANTS
(EXCLUDING PARENTS)
AND
AND
LEGITIMATE
CHILDREN
SURVIVING SPOUSE
LEGITIMATE
PARENTS
ILLEGITIMATE CHILDREN
LEGITIMATE
CHILDREN
ILLEGITIMATE CHILDREN
CIVIL LAW
SURVIVING
SPOUSE
AND
LEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
ONLY
PAGE 288
UP LAW BOC
SUCCESSION
SURVIVING
SPOUSE
AND
ILLEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
STATE
Provisions Common to
Testate and Intestate
Succession
ILLEGITIMATE
PARENTS
AND
CHILDREN OF ANY KIND (WHETHER
LEGITIMATE
OR
ILLEGITIMATE
CHILD)
RIGHT OF ACCRETION
DEFINITION OF ACCRETION [Art.
1015, CC]
LEGITIMATE
SISTERS ONLY
BROTHERS
CIVIL LAW
AND
LEGITIMATE
BROTHERS
AND
SISTERS, NEPHEWS AND NIECES
PAGE 289
UP LAW BOC
SUCCESSION
EXCEPTIONS [Balane]
(1) In testamentary succession, if the testator
provides otherwise.
(2) If the obligation is purely personal, and
hence intransmissible.
PERSONS
INCAPABLE
OF
SUCCEEDING [Arts. 1027, 739, 1032]
Predecease
Incapacity
TESTAMENTARY
SUCCESSION
FREE
LEGITIME
PORTION
Representati
Accretion
on
Intestate
Intestate
Succession
Succession
Representati
on
Accretion
Intestate
Intestate
Succession Succession
Representati
on
Disinheritance
Intestate
Succession
Intestate
Repudiation
Accretion
Succession
CIVIL LAW
INTESTATE
SUCCESSION
Representatio
n
Intestate
Succession
Representatio
n
Intestate
Succession
-
Accretion
PAGE 290
UP LAW BOC
SUCCESSION
CIVIL LAW
1032, CC]
DETERMINATION
Disinheritance
Disinheritance is the
act by which a
testator, for just cause,
deprives a compulsory
heir of his right to the
legitime [Art. 815, CC]
[TOLENTINO, p. 539]
OF
CAPACITY
ACCEPTANCE AND
REPUDIATION OF THE
INHERITANCE
CHARACTERISTICS
[Arts.
1041
PAGE 291
UP LAW BOC
SUCCESSION
CIVIL LAW
Acceptance
Repudiation
Renders
the
transmission
of
successional rights
ineffective
Involves
the Equivalent to an
confirmation
of
act of disposition or
transmission
of
alienation
successional rights Publicity
requirement
is
necessary for the
protection of other
heirs and creditors
CC]
1050, CC]
1055, CC]
COLLATION
CONCEPT OF COLLATION
PAGE 292
UP LAW BOC
SUCCESSION
OPERATIONS
COLLATION
RELATED
CIVIL LAW
WHAT TO COLLATE
(1) Any property or right received by gratuitous
title during the testators lifetime. [Art. 1061,
CC]
(2) All that they may have received from the
decedent during his lifetime. [Art. 1061, CC]
(3) Expenses incurred by the parents in giving
their children a professional, vocational or
other career shall not be brought to
collation unless the parents so provide, or
unless they impair the legitime; but when
their collation is required, the sum which
the child would have spent if he had lived in
the house and company of his parents shall
be deducted therefrom. [Art. 1068, CC]
(4) Any sums paid by a parent in satisfaction of
the debts of his children, election expenses,
fines, and similar expenses shall be brought
to collation. [Art. 1069, CC]
TO
PROPERTIES
COLLATION
NOT
SUBJECT
TO
ABSOLUTELY NO COLLATION
Expenses for support, education (only
elementary
and
secondary),
medical
attendance, even in extraordinary illness,
apprenticeship, ordinary equipment, or
customary gifts. [Art. 1067, CC]
GENERALLY
NOT
IMPUTABLE
TO
LEGITIME/
CANNOT
BE
COLLATED,
SUBJECT TO EXCEPTIONS
(1) Expenses incurred by parents in giving their
children professional, vocational or other
career unless the parents so provide, or
unless they impair the legitime. [Art. 1067,
CC]
(2) Wedding gifts by parents and ascendants,
consisting jewelry, clothing and outfit,
except when they exceed 1/10 of the sum
disposable by will. [Art. 1070, CC]
(3) Neither shall donations to the spouse of the
child be brought to collation; but if they
have been given by the parent to the
spouses jointly, the child shall be obliged to
bring to collation one-half of the thing
donated. [Art. 1066, CC]
PAGE 293
UP LAW BOC
SUCCESSION
CIVIL LAW
IN GENERAL
PROHIBITION TO PARTITION
The prohibition to partition for a period not
exceeding 20 years can be imposed even on
the legitime.
If the prohibition to the partition is for more
than 20 years, the excess is void.
Even if a prohibition is imposed, the heirs by
mutual agreement can still make the
partition.
PAGE 294
UP LAW BOC
SUCCESSION
CIVIL LAW
END OF WARRANTY
The obligation of warranty among co-heirs shall
cease in the following cases:
(1) The testator himself has made the partition
Unless it appears, or it may be reasonably
presumed, that his intention was
otherwise, but the legitime shall always
remain unimpaired.
(2) When it has been so expressly stipulated in
the agreement of partition
Unless there has been bad faith.
(3) When the eviction is due to a cause
subsequent to the partition, or has been
caused by the fault of the distributee of the
property. [Art. 1096, CC]
EFFECTS OF PARTITION
EFFECT
A partition legally made confers upon each heir
the exclusive ownership of the property
adjudicated to him [Art. 1091, CC]
WARRANTY
After the partition has been made, the coheirs shall be reciprocally bound to warrant
the title to, and the quality of, each property
adjudicated [Art. 1092 CC]
The reciprocal obligation of warranty shall be
proportionate to the respective hereditary
shares of the co-heirs;
If any one of them should be insolvent, the
other co-heirs shall be liable for his part in the
same proportion, deducting the part
corresponding to the one who should be
indemnified.
Those who pay for the insolvent heir shall
have a right of action against him for
reimbursement, should his financial condition
improve [Art. 1093 CC]
An action to enforce the warranty among the
co-heirs must be brought within ten years
from the date the right of action accrues. [Art.
1094 CC]
If a credit should be assigned as collectible,
the co-heirs shall not be liable for the
subsequent insolvency of the debtor of the
estate, but only for his insolvency at the time
the partition is made. [Art. 1095, CC]
PAGE 295
UP LAW BOC
SUCCESSION
PAGE 296
DIFFERENCE
RESCISSION
CIVIL LAW
OF
NULLITY
FROM
[Type text]
[Type text]
PAGE 297
[Type text]
UP LAW BOC
PARTNERSHIP
Contract of Partnership
DEFINITION
CIVIL LAW
OBJECT
OBJECT OF UNIVERSAL
PARTNERSHIP
ESSENTIAL FEATURES
PARTIES
General rule: Any person capacitated to contract
may enter into a contract of partnership.
As such, the following persons cannot enter into
a contract of partnership:
(1) Those suffering from civil interdiction;
(2) Minors;
(3) Insane or demented persons;
(4) Deaf-mutes who do not know how to write;
(5) Incompetents who are under guardianship.
PAGE 298
UP LAW BOC
CIVIL LAW
DURATION
OBJECT OF PARTICULAR
PARTNERSHIP
COMMENCEMENT
TERM
EXTENSION
FORM
General rule: The contract may be constituted in
any form [Art. 1771].
Exceptions:
(1) Where immovable property or real rights
are contributed:
(a) The contract must appear in a public
instrument; and
(b) Attached to such instrument must be
an inventory, signed by the parties, of
the property contributed [Arts. 1771 and
1773];
(2) Where the capital is at least P3,000, in
money or property:
(a) The contract must appear in a public
instrument; and
(b) It must be recorded in the Office of the
Securities and Exchange Commission
(SEC).
RULES TO DETERMINE
EXISTENCE
When the intent of the parties is clear, such
intent shall govern. When it does not clearly
appear, the following rules apply:
(1) Persons who are not partners to each other
are not partners as to third persons, subject
to the provisions on partnership by
estoppel.
(2) Co-ownership or co-possession does not of
itself establish a partnership, even when
there is sharing of profits in the use of the
property.
(3) Sharing of gross returns does not of itself
establish a partnership, even when the
parties have joint or common interest in any
property from which the returns are derived.
PAGE 299
UP LAW BOC
KINDS
(1) As to the legality of its existence:
(a) Partnership de jure is one which has
complied with all the requisites for its
lawful establishment;
(b) Partnership de facto is one which failed
to so comply.
(2) As to its object:
(a) Universal partnership:
(i) Of all present property;
(ii) Of profits;
(b) Particular partnership.
(3) As to its duration:
(a) For a fixed term or particular
undertaking;
(b) At will.
(4) As to the liability of the partners:
(a) General partnership, consisting of
general partners only, who are liable
pro rata for partnership obligations with
all their after exhaustion of partnership
assets;
(b) Limited partnership, includes, aside
from general partner/s, limited
partners, who are not personally liable
for partnership obligations.
(5) As to its publicity:
(a) Secret partnership, where the existence
of certain persons as partners is not
made known by the partners;
(b) Open or notorious partnership, the
existence of which is made known to the
public by the partners.
PAGE 300
CIVIL LAW
KINDS OF PARTNERS
UP LAW BOC
Capitalist
partner
Form of contribution
Industry
Money or property
equitable
According
to
agreement; if none, in
proportion
to
contribution
Share in losses
Exempted as to losses
as between partners,
but liable to third
persons,
without
prejudice
to
reimbursement from
capitalist partners
According
to
agreement; if none, in
the same proportion
as the agreed share in
profits; if none, in
proportion
to
contribution
Engagement in business
Cannot engage in
business for himself,
unless the partnership
expressly permits him
to do so; should he do
so without permission,
the capitalist partners
may: (1) exclude him
from the firm; or (2)
avail themselves of
the benefits obtained
in violation of the
prohibition, with right
to damages in either
case [Art. 1789]
Joint venture
firm
legal
Generally relates to a
continuing business of
various transactions of
a certain kind
Usually limited to a
single transaction
Corporations
enter
into
ventures
may
joint
Share in profits
Just and
share
CIVIL LAW
Partnership
Co-ownership
Generally created by
either express or
implied contract
Generally created by
law and may exist
even
without
a
contract
Has
a
separate
juridical personality
Has
no
separate
juridical personality
Duration
limitation
no
An agreement to keep
a thing undivided for
more than ten years is
not allowed, but may
be extended
mutual
between
There is no mutual
representation among
co-owners
Death or incapacity of
a partner dissolves the
partnership
Death or incapacity of
a co-owner does not
dissolve
the
coownership
A partner cannot
dispose of his interest,
so as to make the
assignee a partner,
without consent of
others
A
co-owner
can
dispose of his share
without consent of
others
There
is
agency
partners
PAGE 301
has
UP LAW BOC
Partnership
Corporation
CIVIL LAW
Partnership
Conjugal Partnership of
Gains
Created by voluntary
agreement of two or
more partners of either
sex
Governed
agreement
by
Governed by law
Has
personality
juridical
Taxable as in a corporation
Created by agreement
Created by operation
of law
Personality
commences from the
moment of execution
of the contract
Personality
commences from the
issuance of certificate
of incorporation
When management is
not agreed upon,
every partner may act
for the partnership
Management is vested
in the board of
directors or trustees
Stockholders
are
liable only to the
extent of their shares
A partner cannot
dispose of his interest,
so as to make the
assignee a partner,
without consent of
others
Duration
limitation
has
no
May be dissolved at
any time by one or all
of the partners
PAGE 302
juridical
Commencement date
may be stipulated
Commencement is on
the date of the
celebration of the
marriage and any
stipulation
to
the
contrary is void
Management shared by
all partners, unless
otherwise agreed upon
Administration belongs
to the spouses jointly,
but
decision
of
husband prevails in
case of disagreement
Partnership
Association
Has
personality
Has
no
personality
juridical
Has
no
personality
juridical
Capital is contributed
Capital
is
not
contributed, although
fees are collected from
members
The partnership is
primarily liable; the
partners are liable only
subsidiarily
UP LAW BOC
RIGHT TO CONTRIBUTION
The partnership has a right to the contribution
(or the partners are obliged to contribute). The
money or property thus contributed, or their use
or fruits, become the property of the
partnership.
CONTRIBUTION
PROPERTY
OF
MONEY
CIVIL LAW
OR
CONTRIBUTION OF INDUSTRY
AMOUNT OF CONTRIBUTION
Requisites:
(1) There exist at least two debts, one where
the collecting partner is creditor, and the
other, where the partnership is the creditor;
Requisites:
(1) There is an imminent loss of the business of
the partnership;
PAGE 303
UP LAW BOC
INDEMNITY
RESPONSIBILITY TO PARTNERS
RIGHT TO
DAMAGES
CIVIL LAW
FOR
RIGHT TO ASSOCIATE
ANOTHER IN SHARE
SET-OFF OF LIABILITY
PAGE 304
UP LAW BOC
RIGHT TO INSPECT
PARTNERSHIP BOOKS
CIVIL LAW
Partnership property
Includes
the
contributions
and
property acquired by
the partnership
OWNERSHIP
PROPERTIES
OF
CERTAIN
PROPERTY RIGHTS OF
PARTNERS
IN GENERAL
PAGE 305
UP LAW BOC
CIVIL LAW
INTEREST IN PARTNERSHIP
RIGHT TO PARTICIPATE
MANAGEMENT
ASSIGNMENT OF INTEREST
IN
REVOCATION
OF
POWER
MANAGING PARTNER
BY
MANAGING
PARTNERS
BY
TWO OR MORE
PAGE 306
UP LAW BOC
CIVIL LAW
MUTUAL AGENCY
In addition to the Article 1801, there is effectively
a mutual agency in the following cases:
(1) Partners can dispose of partnership
property even when in partnership name
[Art. 1819].
(2) An admission or representation made by
any partner concerning partnership affairs is
evidence against the partnership [Art. 1820].
(3) Notice to any partner of any matter relating
to partnership affairs is notice to the
partnership [Art. 1821].
(4) Wrongful act or omission of any partner
acting for partnership affairs makes the
partnership liable [Art. 1822].
(5) Partnership is bound to make good losses
for wrongful acts or misapplications of
partners [Art. 1823].
Requisites:
(1) Two or more partners have been appointed
as managers;
(2) There is no specification of their respective
duties; and
(3) There is no stipulation that one of them
shall not act without the consent of all the
others.
STIPULATION OF UNANIMITY
Art. 1802. In case there is a stipulation that none
of the managing partners shall act without the
consent of others, the concurrence of all is
necessary for the validity of the acts, and the
absence or disability of one cannot be alleged,
unless there is imminent danger of grave or
irreparable injury to the partnership.
OF
PAGE 307
UP LAW BOC
CIVIL LAW
Obligations
of
the
Partnership/Partners to
Third Persons
OBLIGATION
TO
OPERATE
UNDER A FIRM NAME
OBLIGATION
TO
INFORMATION
RENDER
PAGE 308
UP LAW BOC
Exceptions:
(1) A third person who transacted with the
partnership can hold the partners solidarily
(rather than subsidiarily) liable for the whole
obligation if the case falls under Articles
1822 or 1823 [Muasque v. CA (1985)]. The
provisions refer to wrongful acts or omission
and misapplication of money or property by
a partner in the ordinary course of business.
(2) A person admitted as a partner into an
existing partnership is liable for all the
obligations of the partnership arising before
his admission, except that his liability shall
be satisfied only out of partnership property,
unless there is a stipulation to the contrary
[Art. 1826]. In other words, he is not
personally liable.
PRO RATA
The partners are liable pro rata.
This liability is not increased even when a
partner:
(1) Has left the country and the payment of his
share of the liability cannot be enforced [CoPitco v. Yulo (1907)]; or
(2) His liability is condoned by the creditor
[Island Sales v. United Pioneers (1975)].
LIABILITY
PARTNER
OF
AN
CIVIL LAW
INDUSTRIAL
PAGE 309
UP LAW BOC
CIVIL LAW
ACTS IN CONTRAVENTION OF A
RESTRICTION
LIABILITY OF PARTNERSHIP
FOR ADMISSION BY A PARTNER
CONVEYANCE
OF
PARTNERSHIP REAL PROPERTY
LIABILITY OF PARTNERSHIP
FOR WRONGFUL ACTS OF A
PARTNER
LIABILITY OF THE
PARTNERSHIP FOR
MISAPPLICATION OF MONEY
OR PROPERTY
PAGE 310
UP LAW BOC
CIVIL LAW
consenting
to
the
contract
or
representation.
(3) When there are no such other persons, he is
separately liable [Art. 1825, par. 1].
LIABILITY IN CASE OF
PARTNERSHIP BY ESTOPPEL
PARTNER BY ESTOPPEL
NATURE OF LIABILITY
LIABILITY OF A PARTNER BY
ESTOPPEL
PERSONAL REPRESENTATION
A partner by estoppel is liable to any such
persons:
(1) To whom such representation has been
made; and
(2) Who has, on the faith of such
representation, given credit to the actual or
apparent partnership [Art. 1825, par. 1].
PUBLIC REPRESENTATION
If he has made such representation or
consented to its being made in a public manner,
whether the representation has or has not been
(personally) made or communicated to such
persons so giving credit by or with his
knowledge, and:
(1) Partnership liability results, he is liable as
though he were an actual member of the
partnership.
(2) No partnership liability results, he is liable
pro rata with the other persons, if any, so
PAGE 311
UP LAW BOC
CIVIL LAW
LIABILITY OF AN INCOMING
PARTNER
CONCEPTS
Dissolution is the change in the relation of the
partners caused by any partner ceasing to be
associated in the carrying on of the business. It
is different from the winding-up of the business
[Art. 1828]. It does not terminate the
partnership, which continues until the winding
up of partnership affairs is completed [Art.
1829].
Ratio:
(1) The new partner partakes of the benefits of
the partnership property and an already
established business.
(2) He has every means of obtaining full
knowledge of the debts of the partnership
and remedies that amply protect his
interest [De Leon (2010)].
NOTICE TO OR KNOWLEDGE OF
THE PARTNERSHIP
CAUSES OF DISSOLUTION
WITHOUT VIOLATION
AGREEMENT
OF
THE
PAGE 312
UP LAW BOC
BY DECREE OF A COURT
A partner may apply for dissolution in court
when:
(1) A partner has been declared insane in any
judicial proceeding or is shown to be of
unsound mind;
(2) A partner becomes in any other way
incapable of performing his part of the
partnership contract;
(3) A partner has been guilty of such conduct
as tends to affect prejudicially the carrying
on of the business;
(4) A partner willfully or persistently commits a
breach of the partnership agreement, or
otherwise so conducts himself in matters
relating to the partnership business that it is
not reasonably practicable to carry on the
business in partnership with him;
(5) The business of the partnership can only be
carried on at a loss;
(6) Other circumstances render a dissolution
equitable.
IN
CONTRAVENTION
AGREEMENT
Where
circumstances
do
OF
THE
not
permit
CIVIL LAW
BY OPERATION OF LAW
OTHER CAUSES
PAGE 313
UP LAW BOC
CIVIL LAW
EFFECTS OF DISSOLUTION
ON AUTHORITY OF THE PARTNERS
PAGE 314
UP LAW BOC
WINDING UP PARTNERS
WHO MAY WIND UP
MANNER OF WINDING UP
Exceptions:
(1) The dissolution being by act of any partner,
the partner acting for the partnership had
knowledge of the dissolution; or
(2) The dissolution being by death or insolvency
of a partner, the partner acting for the
partnership had knowledge or notice of the
death or insolvency [Art. 1833].
ON
EXISTING
PARTNERS
LAIBILITY
CIVIL LAW
OF
PAGE 315
UP LAW BOC
CIVIL LAW
DISSOLUTION IN CONTRAVENTION
OF THE AGREEMENT
PARTNER WHO DID NOT CAUSE THE
DISSOLUTION
The partners who did not cause the dissolution
wrongfully has the following rights:
(1) To demand the right under Article 1837, 1st
par.;
(2) To be indemnified for damages for breach
of the agreement against the partner who
caused the dissolution wrongfully [Art.
1837(1)];
(3) To continue the business:
(a) In the same name;
(b) By themselves or jointly with others;
(c) During the agreed term for the
partnership.
SETTLING
OF
ACCOUNTS
BETWEEN PARTNERS
Subject to any agreement to the contrary, the
following rules shall be observed in settling
accounts between partners after dissolution.
COMPOSITION
ASSETS
OF
PARTNERSHIP
PAGE 316
UP LAW BOC
CIVIL LAW
DISTRIBUTION OF PROPERTY OF
INSOLVENT PARTNER
ENFORCEMENT OF CONTRIBUTION
RIGHTS OF CREDITORS
DISSOLVED PARTNERSHIP
AS CREDITORS
PARTNERSHIP
OF
THE
OF
NEW
DOCTRINE OF MARSHALLING OF
ASSETS
When partnership property and the individual
properties of the partners are in possession of a
court for distribution:
(1) Partnership creditors have priority on
partnership property;
(2) Separate creditors have priority on
individual property, saving the rights of lien
of secured creditors.
PAGE 317
UP LAW BOC
RIGHT TO AN ACCOUNT
In the absence of any agreement to the
contrary, the right to an account of his interest
shall accrue to any partner, or his legal
representative at the date of dissolution, as
against:
(1) The winding up partners;
(2) The surviving partners; or
(3) The person or partnership continuing the
business [Art. 1842].
PRIORITY
OF
CREDITORS
DISSOLVED PARTNERSHIP
CIVIL LAW
Limited Partnership
OF
DEFINITION
RIGHTS OF A RETIRED
PARTNER OR A
REPRESENTATIVE OF
DECEASED PARTNER
CHARACTERISTICS
(1) A limited partnership is formed by
compliance with the statutory requirements
[Art. 1844].
(2) The business is controlled or managed by
one or more general partners, who are
personally liable to creditors [Arts. 1848 and
1850].
(3) One or more limited partners contribute to
the capital and share in the profits but do
not manage the business and are not
personally liable for partnership obligations
beyond their capital contributions [Arts.
1845, 1848 and 1856].
(4) Obligations or debts are paid out of the
partnership assets and the individual
property of the general partners [Art. 1843].
(5) The limited partners may have their
contributions back subject to conditions
prescribed by law [Arts. 1844 and 1957].
PAGE 318
UP LAW BOC
General partner
Dissolves partnership
Not assignable
Extent of liability
Liable only to the
extent of his capital
contributions
Assignable
GENERAL
AND
LIMITED
PARTNERSHIP DISTINGUISHED
General
partnership
Limited
partnership
Creation
No right to participate
in management
May be constituted in
any form, subject to
exceptions
Nature of contribution
Cash, property
industry
or
Name
must
not
appear in the firm
name
Firm name
Firm name
Name may appear in
the firm name
Composition
Assignability of interest
Limited partner
Personally,
but
subsidiarily, liable for
obligations of the
partnership
Limited partner
CIVIL LAW
Not prohibited
PAGE 319
Articles 1860-1863
UP LAW BOC
FORMATION
FALSE
STATEMENT
CERTIFICATE
GENERAL REQUIREMENTS
CIVIL LAW
IN
THE
Requisites:
(1) The partner knew the statement to be false:
(a) At the time he signed the certificate; or
(b) Subsequently, but having sufficient time
to cancel or amend it, or file a petition
for its cancellation or amendment, and
he failed to do so;
(2) The person seeking to enforce liability has
relied upon the false statement in
transacting business with the partnership;
and
(3) The person suffered loss as a result of
reliance upon such false statement.
PURPOSE OF FILING
FIRM NAME
MANAGEMENT
PAGE 320
UP LAW BOC
OBLIGATIONS OF A LIMITED
PARTNER
OBLIGATIONS
CONTRIBUTION
RELATED
CIVIL LAW
TO
LIABLITY
CREDITORS
TO
PARTNERSHIP
PAGE 321
UP LAW BOC
CIVIL LAW
RIGHT
TO
CONTRIBUTION
RETURN
OF
PAGE 322
UP LAW BOC
CIVIL LAW
PREFERENCE OF LIMITED
PARTNERS
DISSOLUTION
A limited partnership is dissolved in much the
same way and causes as an ordinary
partnership [De Leon (2010)].
UP LAW BOC
CIVIL LAW
AMENDMENT OR
CANCELLATION OF
CERTIFICATE
CANCELLATION OF CERTIFICATE
AMENDMENT OF CERTIFICATE
SETTLEMENT OF ACCOUNTS
ORDER OF PAYMENT
PAGE 324
UP LAW BOC
CIVIL LAW
FORMATION
ESSENTIAL ELEMENTS
From
the
moment
the
amended
certificate/writing or a certified copy of a court
order granting the petition for amendment has
been filed, such amended certificate shall
thereafter be the certificate of partnership [Art.
1865].
PARTIES
AGENCY
Contract of Agency
DEFINITION
CAPACITY
(1) A principal must have legal capacity to
enter into contract in his own right.
(2) An agent must have legal capacity to enter
into the contract of agency, although he
may not have capacity to enter into the
particular contract subject of agency.
INTENT
(1) On the part of the principal, there must be
an actual intention to appoint or an
intention naturally inferable from his words
or actions; and
(2) On the part of the agent, there must be an
intention to accept the appointment and act
on it [Victorias Milling v. CA (2000)].
CHARACTERISTICS
The contract of agency is:
(1) Consensual, perfected by mere consent;
(2) Nominate, has its own name;
(3) Preparatory, entered into as a means to
enter into other contracts;
(4) Principal, does not depend on another
contract for existence and validity;
PAGE 325
UP LAW BOC
CIVIL LAW
POWER OF ATTORNEY
A power of attorney is an instrument in writing
by which one person, as principal, appoints
another as his agent and confers upon him the
authority to perform certain specified acts of
kinds of acts on his behalf [De Leon (2010)].
Exceptions:
(1) Agency by estoppel; and
(2) Agency by operation of law.
CONSENT
An agency, both on the part of the principal and
the agent, is either express or implied. It does
not require express appointment and
acceptance.
FORM OF CONTRACT
ACTS DELEGATED
PRESUMPTION OF EXISTENCE
PAGE 326
UP LAW BOC
CIVIL LAW
Requisites:
(1) Actual notice to the agent;
(2) Notice must pertain to a matter of fact and
not of law;
(3) The fact must be within the scope of the
agents authority.
Exceptions:
(1) Where the agents interests are adverse to
those of the principal;
(2) Where the agents duty is not to disclose the
information (e.g., he is informed by way of
confidential information);
(3) Where the person claiming the benefit of
the rule colludes with the agent to defraud
the principal [De Leon (2010)].
COMMUNICATION OF EXISTENCE
AGENCY
AND
OTHER
CONTRACTS DISTINGUISHED
Agency
Partnership
Representation
EFFECT
Control
An agents power to
bind the principal is
subject to the latters
control
EXTENSION OF PERSONALITY
A partners power to
bind his co-partners is
not subject to their
control
Personal liability
An agent does not
assume
personal
liability, if he acts
within the scope of his
authority
A partner is personally
liable with all his
property,
after
exhaustion of the
partnership properties
Share in profits
An agent is not
entitled to profits, only
compensation
PAGE 327
A partner is entitled to
a share in the profits
of the partnership
UP LAW BOC
Independent
contractor
Agency
Agency
An agent acts under
the
control
and
instruction of the
principal
An
independent
contractor is not
subject to control,
except insofar as the
result of the work is
concerned
Agency
retains
Buyer
ownership
acquires
A buyer pays
purchase price
the
Return of goods
Generally, an agent
can return goods
unsold
Execution of piece of
work or rendition of
service
Generally, a buyer
cannot return the
goods bought
Authorized acts
Material acts only
Discretion
Agency to buy
Sale
Ownership of goods
Ordinarily,
lessor
performs
only
ministerial functions
Ownership is acquired
in behalf of the
principal
Parties
Three parties are
involved (principalagent-third party)
Sale
Purpose
An agent is authorized
to exercise discretion
Agency to sell
Payment
Employment
Juridical
acts
(creation,
modification,
extinction of relations
with third parties)
Principal
ownership
Basis
Execution of juridical
acts in relation to third
persons
Ownership of goods
Lease of service
Representation
Lease of property
involves property only
Authority to bind
Sub-agents
Agents of the agent is
still subject to the
control of the principal
Things involved
Lease of property
Control
Control
An agent acts under
the
control
and
instruction of the
principal
CIVIL LAW
Ownership
transferred
buyer
to
is
the
Change in price
Payment
Price is paid in behalf
of the principal
PAGE 328
UP LAW BOC
Agency
Guardianship
Person represented
An agent represents a
capacitated person
A guardian represents
an
incapacitated
person
Source of authority
An agent is appointed
by the principal
A
guardian
is
appointed by the court
Control
An agent is subject to
the control of the
principal
A guardian is not
subject to the control
of the ward
Authority to bind
An agent can make
the
principal
principally liable
A guardian has no
power to impose
personal liability on
the ward
Agency
Trust
Title to property
Title
retained
principal
by
Control
An agent is subject to
the control of the
principal
A trustee is only
subject
to
the
stipulated guidance of
the trustor
Termination
In general, an agency
may be revoked at any
time
CIVIL LAW
AS TO MANNER OF CREATION
EXPRESS AGENCY
Kinds of Agency
IN GENERAL
As to manner of creation:
(1) Express;
(2) Implied.
IMPLIED AGENCY
As to cause or consideration:
(1) Gratuitous;
(2) Compensated or onerous.
PAGE 329
UP LAW BOC
AS TO AUTHORITY CONFERRED
COUCHED IN GENERAL TERMS
AS TO EXTENT OF BUSINESS
COVERED
Special agency
Scope of authority
All acts connected
with the business or
employment in which
agent is engaged
Only
specific
authorized acts or
those
necessarily
implied
continuous
Usually involves
single transaction
Authority to bind
Acts within the scope
of authority, even in
conflict with special
instructions, may bind
principal
Termination of authority
Notice
to
third
persons required to
terminate apparent
authority
No notice required,
since third parties are
required to inquire as
to authority
Instructions
Notice
to
third
persons required
CIVIL LAW
The instructions, in so
far as they grant
authority, are strictly
construed
PAGE 330
UP LAW BOC
CIVIL LAW
SPECIAL KINDS
AGENCY BY ESTOPPEL
Through estoppel:
(1) An admission or representation;
(2) Is rendered conclusive upon the person
making it; and
(3) Cannot be denied or disproved as against
the person relying thereon [Art. 1431].
Ratification
Estoppel
Rests on intention
Rests on prejudice
Retroacts
as
if
originally authorized
Substance
is
confirmation
of
unauthorized
acts
after it has been done
Substance is the
principals
inducement for third
party to act to his
prejudice
PAGE 331
UP LAW BOC
CIVIL LAW
IRREVOCABLE AGENCY
Qualifications:
(1) Coupled with interest or not, the authority
certainly can be revoked for a just cause,
such as when the attorney-in-fact betrays
the interest of the principal. It is not open to
serious doubt that the irrevocability of the
power of attorney may not be used to shield
the perpetration of acts in bad faith, breach
of confidence, or betrayal of trust, by the
agent for that would amount to holding
that a power coupled with an interest
authorizes the agent to commit frauds
against the principal [Coleongco v. Claparols
(1964)].
(2) A mere statement in the power of attorney
that it is coupled with an interest is not
enough. In what does such interest consist
must be stated in the power of attorney [Del
Rosario v. Abad (1958)].
PAGE 332
UP LAW BOC
CIVIL LAW
KINDS OF AGENTS
AS TO NATURE AND EXTENT OF
AUTHORITY
KINDS OF AUTHORITY
(1) Actual, when it is actually granted, and it
may be express or implied. It is the authority
that the agent does, in fact, have. It results
from what the principal indicates to the
agent;
(2) Express, when it is directly conferred by
words;
(3) Implied, when it is incidental to the
transaction or reasonably necessary to
accomplish the main purpose of the agency;
(4) Apparent or ostensible, when it arises by the
acts or conduct of the principal giving rise to
an appearance of authority. It makes the
principal responsible to third persons for
certain actions of the agent that were not
really authorized;
PAGE 333
UP LAW BOC
CIVIL LAW
POWER
TO
PRINCIPAL
SCOPE OF AUTHORITY
BIND
THE
Requisites:
PAGE 334
UP LAW BOC
Obligations of Agent
CIVIL LAW
IN GENERAL
OBLIGATION
DECLINES
WHEN
AGENT
OBLIGATION TO
NECESSARY FUNDS
ADVANCE
PAGE 335
UP LAW BOC
OBLIGATION TO ACT IN
ACCORDANCE WITH
INSTRUCTIONS
In the execution of the agency:
(1) The agent shall act in accordance with the
instructions of the principal; or
(2) In default thereof, he shall do all that a
good father of a family would do, as
required by the nature of the business [Art.
1887].
OBLIGATION
RECEIVED
Instructions
Private
rule
of
guidance to the agent
Relates
to
the
transaction
or
business with which
the
agent
is
empowered to act
FOR
THINGS
CIVIL LAW
WHAT TO DELIVER
OBLIGATION
TO
PREFER
INTEREST OF PRINCIPAL
WHEN
OBLIGATION
APPLICABLE
IS
NOT
PAGE 336
UP LAW BOC
CIVIL LAW
EFFECTS OF SUBSTITUTION
SUB-AGENCY
RESPONSIBILITY OF TWO OR
MORE AGENTS
General rule: The responsibility of two or more
agents is not solidary, even though they have
been appointed simultaneously. They are liable
jointly.
Exceptions:
(1) The appointment is prohibited by the
principal [Art. 1892];
(2) The work entrusted to the agent requires
special knowledge, skill, or competence,
unless authorized to do so by the principal
[De Leon (2010)].
OBLIGATION
FOR
SUMS
APPLIED TO HIS OWN USE
PAGE 337
UP LAW BOC
PRESENTATION
ATTORNEY
CIVIL LAW
OF
POWER
OF
OBLIGATIONS TO THIRD
PERSONS
VOID CONTRACTS
IGNORANCE OF AGENT
PAGE 338
UP LAW BOC
OBLIGATIONS OF A
COMMISSION AGENT
SALE OF GOODS ON
WITHOUT AUTHORITY
Need
not
have
possession of the
goods
Broker
Commission agent
Has
custody
possession of
things to be sold
Maintains no relations
with things to be
sold/bought
Maintains
relations
with the thing, the
buyer and the seller
CREDIT
Ordinary agent
CIVIL LAW
or
the
GOODS
RESPONSIBILITY
RECEIVED
FOR
PAGE 339
UP LAW BOC
CIVIL LAW
RATIFICATION
Obligations of the
Principal
IN GENERAL
In addition to his duties specified under the
contract itself, the principal is under obligation
to deal fairly and in good faith with his agent,
who owes the same to his principal.
SEPARATE
CONTRACTS
PRINCIPAL AND AGENT
PAGE 340
WITH
UP LAW BOC
CIVIL LAW
COMPENSATION OF BROKER
OBLIGATION FOR
COMPENSATION OF AGENT
NECESSARY FUNDS
AMOUNT
UP LAW BOC
IS
CIVIL LAW
NOT
Modes of Extinguishment
IN GENERAL
Agency is extinguished:
(1) By its revocation;
(2) By the withdrawal of the agent;
(3) By the death, civil interdiction, insanity or
insolvency of the principal or of the agent;
(4) By the dissolution of the firm or corporation
which entrusted or accepted the agency;
(5) By the accomplishment of the object or
purpose of the agency;
(6) By the expiration of the period for which the
agency was constituted [Art. 1919].
DAMAGES
Art. 1913. The principal must also indemnify the
agent for all the damages which the execution
of the agency may have caused the latter,
without fault or negligence or his part.
MULTIPLE PRINCIPALS
If there are two or more principals who
appointed the agent for a common transaction
or undertaking, they shall be solidarily liable for
all the consequences of the agency [Art. 1915].
REVOCATION BY PRINCIPAL
General rule: The principal may:
(1) Revoke the agency at will; and
(2) Compel the agent to return the document
evidencing the agency.
Requisites:
(1) There are two or more principals;
(2) The principals have all concurred in the
appointment of the same agent; and
PAGE 342
UP LAW BOC
CIVIL LAW
EFFECT
OF
REVOCATION
RELATION TO THIRD PARTIES
IN
WITHDRAWAL BY AGENT
The agent may withdraw from the agency by
giving due notice to the principal.
MANNER
PAGE 343
UP LAW BOC
EXPIRATION OF TERM
(1) If created for fixed period, expiration of the
period extinguishes agency even if the
purpose was not accomplished.
(2) If no time is specified, the courts may fix the
period as under the circumstances have
been probably contemplated by the parties
[Art. 1197]. Otherwise, the agency terminates
at the end of a reasonable period of time.
Either party can terminate the relationship
at will by giving notice to the other [De Leon
(2010)].
DEATH OF PRINCIPAL
DEATH OF AGENT
ACCOMPLISHMENT OF OBJECT
OR PURPOSE
DISSOLUTION OF
CORPORATION
FIRM
CIVIL LAW
OR
PAGE 344
[Type text]
[Type text]
PAGE 345
[Type text]
UP LAW BOC
CREDIT TRANSACTIONS
Credit Transactions
SECURITY
A transaction by which a creditor mitigates the
risk of non-payment of debt by equating a sum
of money owed with property or another
persons undertaking to pay [Somera, Notes and
Cases in Credit Transactions]
TYPES OF
SECURITY
CONTRACTS
CIVIL LAW
OF
Contract of Loan
Contract to Loan
Real Contract:
Consensual Contract:
perfected, not by mere perfected by mere
consent,
but
the consent
delivery of the contract
Loan
CONTRACTS OF LOAN
(1) Commodatum - A contract where one party
delivers to another something not consumable
so that the latter may use the same for a certain
sum and return it [Art. 1933]
(2) Mutuum (Simple Loan)- A contract where
one party delivers to another money or other
consumable thing, upon the condition that the
same amount of the same kind and quality shall
be paid [Art. 1933]
CHARACTERISTICS OF A LOAN
Mutuum
Ordinarily
involves Involves
something
not other
consumable* [Art.1936] thing
PAGE 346
money or
consumable
to
is
the
UP LAW BOC
Commodatum
CREDIT TRANSACTIONS
Mutuum
KINDS OF COMMODATUM
Lender
may
not
demand its return
before the lapse of the
term agreed upon
CIVIL LAW
OBLIGATIONS OF
COMMODATUM
BAILOR
IN
PAGE 347
UP LAW BOC
CREDIT TRANSACTIONS
OBLIGATIONS OF
COMMODATUM
BAILEE
CIVIL LAW
IN
PAGE 348
RIGHT OF RETENTION
KINDS OF INTEREST
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
PAGE 349
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
ELEMENTS OF USURY
(1) A loan or forbearance of money
(2) An understanding between parties that the
loan shall and may be returned
(3) An unlawful intent to take more than the
legal rate for the use of money or its
equivalent
(4) The taking or agreeing to take for the use of
the loan of something in excess of what is
allowed by law.
GENERAL CONCEPTS
Deposit
OBJECT OF DEPOSIT
EXTINGUISHMENT
OBLIGATIONS OF DEPOSITOR
PRINCIPAL PURPOSE
CONSIDERATION
KINDS OF DEPOSIT
(1) Extrajudicial
(a) Voluntary Obligation arises as a
consequence of contract
(b) Necessary Obligation arises as a
consequence of law or quasi-contract
(2) Judicial Obligation arises as a
consequence of a law allowing the issuance
of a judicial order constituting a deposit
Exceptions
1. Depositor was not aware of the danger;
2. Depositor was not expected to know the
dangerous character of the thing;
3. Depositor notified the depositary of
such dangerous character;
4. Depositary was aware of the danger
without advice from the depositor.
PAGE 350
UP LAW BOC
CREDIT TRANSACTIONS
EXTENT
ART.1998
OF
LIABILITY
CIVIL LAW
HOTEL-KEEPERS RIGHT TO
RETENTION
UNDER
PAGE 351
UP LAW BOC
CREDIT TRANSACTIONS
DEPOSITARY
PROPERTY
OF
CIVIL LAW
GUARANTY
DISTINGUISHED
FROM SURETYSHIP [ZOBEL,
SEQUESTERED
APPLICABLE LAW
SURETYSHIP
PAGE 352
Surety
Guaranty
An accessory promise
by which a person
binds
himself
for
another already bound,
and agrees with the
creditor to satisfy the
obligation if the debtor
does not
A
collateral
undertaking to pay the
debt of another in case
the latter does not pay
the debt.
A surety is usually
bound
with
his
principal by the same
instrument, executed
at the same time, and
on
the
same
consideration. He is an
original promissor and
debtor
from
the
beginning, and is held,
ordinarily, to know
every default of his
principal.
The
contract
of
guaranty
is
the
guarantor's
own
separate undertaking,
in which the principal
does not join. It is
usually entered into
before or after that of
the principal, and is
often supported on a
separate consideration
from that supporting
the contract of the
principal. The original
contract of his principal
is not his contract, and
he is not bound to take
notice of its nonperformance
A guarantor is often
discharged by the mere
indulgence of the
creditor
to
the
principal, and is usually
not
liable
unless
notified of the default
of the principal
UP LAW BOC
CREDIT TRANSACTIONS
Surety
Guaranty
A guarantor is the
insurer of the solvency
of the debtor and thus
binds himself to pay if
the principal is unable
to pay
NATURE AND
GUARANTY
EXTENT
CIVIL LAW
2050]
OF
A
GUARANTY
IS
GENERALLY
GRATUITOUS [ART. 2048]
[ART. 2052(1)]
[ART. 2049]
Exceptions:
(1) With her husbands consent, bind the
community or conjugal partnership property
(2) Without husbands consent, in cases
provided by law, such as when the guaranty
has redounded to the benefit of the family.
PAGE 353
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
CONTINUING GUARANTY
(1) Not limited to a single transaction but which
contemplates a future course of dealings,
covering a series of transactions generally for
an indefinite time or until revoked.
(2) It is prospective in its operation and is
generally intended to provide security with
respect to future transactions.
(3) Future debts, even if the amount is not yet
known, may be guaranteed but there can be
no claim against the guarantor until the
amount of the debt is ascertained or fixed
and demandable.
Exceptions
(a) Interest, judicial costs, and attorneys fees as
part of damages may be recovered
creditors suing on a suretyship bond may
recover from the surety as part of their
damages, interest at the legal rate, judicial
costs, and attorneys fees when appropriate,
even without stipulation and even if the
surety would thereby become liable to pay
more than the total amount stipulated in the
bond.
Interest runs from:
Filing of the complaint (upon judicial
demand); or
The time demand was made upon the
surety until the principal obligation is fully
paid (upon extra-judicial demand)
Rationale: Surety is made to pay, not by
reason of the contract, but by reason of his
failure to pay when demanded and for
having compelled the creditor to resort to
the courts to obtain payment.
(b) Penalty may be provided a surety may be
held liable for the penalty provided for in a
bond for violation of the condition therein.
PAGE 354
UP LAW BOC
CREDIT TRANSACTIONS
THE UNDERTAKING IS TO
CREDITOR, NOT THE DEBTOR
EXTENT
THE
CONTRACT OF GUARANTY IS
COVERED BY THE STATUTE OF
FRAUDS [SEE ART. 1403(2(B))]
NATURE AND
SURETYSHIP
CIVIL LAW
OF
LIABILITY
ARISES
ONLY
IF
PRINCIPAL DEBTOR IS HELD LIABLE
PAGE 355
UP LAW BOC
CREDIT TRANSACTIONS
Reasons:
(1) Compensated corporate sureties are
business associations organized for the
purpose of assuming classified risks in large
numbers, for profit and on an impersonal
basis.
(2) They are secured from all possible loss by
adequate counter-bonds or indemnity
agreements.
CIVIL LAW
EFFECT OF GUARANTY
EFFECTS OF GUARANTY BETWEEN
THE
GUARANTOR
AND
THE
CREDITOR
[2058]
PAGE 356
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
2060]
2058, 2061]
PAGE 357
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
Art. 2066
Art. 2071
Provides
for
the
enforcement of the
guaranty/surety
against the debtor
after he has paid the
debt
Provides
for
the
protection before he
has paid but after he
has become liable
Preliminary remedy
EFFECTS
OF
GUARANTY
BETWEEN CO-GUARANTORS
AS
PAGE 358
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
ART. 2073
2056]
EXTINGUISHMENT OF
GUARANTY
[ART. 2083]
[ART. 2084]
Pledge
PAGE 359
UP LAW BOC
CREDIT TRANSACTIONS
CHARACTERISTICS
(1) Real perfected upon delivery of thing
pledged
(2) Accessory cannot exist independently
(3) Unilateral obligation on the part of the
creditor to return the thing pledged upon the
fulfillment of the principal obligation
(4) Subsidiary obligation incurred does not
arise until the fulfillment of the secured
principal obligation
KINDS
(1) Voluntary or conventional Created by
agreement of parties
(2) Legal Created by operation of law
ESSENTIAL REQUISITES
Common to pledge and mortgage [Art. 2085]
(1) Constituted to secure the fulfillment of a
principal obligation.
(2) Pledgor or mortgagor must be the absolute
owner of the thing pledged or mortgaged.
(3) The persons constituting the pledge or
mortgage have the free disposal of their
property, and in the absence thereof, that
they be legally authorized for the purpose.
(4) Cannot exist without a valid obligation.
(5) Debtor retains the ownership of the thing
given as a security.
(6) When the principal obligation becomes due,
the thing pledged or mortgaged may be
alienated for the payment to the creditor.
[Art. 2087]
PAGE 360
CIVIL LAW
OBLIGATIONS OF PLEDGEE
(1) The pledgee cannot deposit the thing
pledged with a 3rd person, unless there is a
contrary stipulation [Art. 2100].
(2) Is responsible for the acts of his agents or
employees with respect to the thing pledged
[Art. 2100].
(3) Has no right to use the thing or to
appropriate its fruits without authority from
the owner [Art. 2104]
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
RIGHTS OF PLEDGOR
(1) Takes responsibility for the flaws of the thing
pledged [Art. 2101 in relation to Art. 1951.
(2) Cannot ask for the return of the thing
against the will of the creditor, unless and
until he has paid the debt and its interest,
with expenses in a proper case [Art. 2105].
(3) Subject to the right of the pledgee under
article 2108, pledgor is allowed to substitute
the thing which is in danger of destruction or
impairment without any fault on the part of
the pledgee with another thing of the same
kind and quality [Art. 2107].
(4) May require that the thing be deposited with
a 3rd person, if through the negligence or
willful act of the pledgee the thing is in
danger of being lost or impaired [Art. 2106].
PAGE 361
UP LAW BOC
CREDIT TRANSACTIONS
PACTUM COMMISSORIUM
ELEMENTS
PLEDGE AS DISTINGUISHED
FROM CHATTEL MORTGAGE
EFFECT ON PLEDGE
Delivery
is
required for the
validity of the
pledge
Necessary
for
validity of the
CM against third
persons
Not necessary;
Public document
is enough to bind
third persons
Creditor/
mortgagee can
recover from the
debtor/
Right to
mortgagor,
Recover
except if covered
Deficiency
by Recto Law
Creditor/
mortgagee is not
entitled
to
recover
any
deficiency after
the property is
sold,
notwithstanding
contrary
stipulation
Registratio
n in the
Chattel
Mortgage
Register
Pledge
Not required
Delivery of
Personal
Property
CIVIL LAW
EQUITABLE MORTGAGE
ESSENTIAL REQUISITES
PAGE 362
UP LAW BOC
CREDIT TRANSACTIONS
Real Mortgage
CIVIL LAW
MORTGAGE
KINDS
2124]
(1) Immovables
(2) Alienable real rights over immovables.
Future property cannot be an object of
mortgage; however, a stipulation subjecting to
the mortgage improvements which the
mortgagor may subsequently acquire, install or
use in connection with real property already
mortgaged belonging to the mortgagor is valid.
CHARACTERISTICS
PRINCIPLE OF INDIVISIBILITY OF
PLEDGE/MORTGAGE [ARTS. 2089
TO 2090]
PAGE 363
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
FORECLOSURE OF MORTGAGE
KINDS OF FORECLOSURE
1. Judicial Foreclosure
2. Extrajudicial Foreclosure
JUDICIAL
FORECLOSURE
EXTRAJUDICIAL FORECLOSURE
Judicial
PAGE 364
VS.
Extrajudicial
Court intervenes
No court intervention
There is equity of
redemption period
starts from the finality
of the judgment until
order of confirmation
There is right of
redemption period
start from date of
registration
of
certificate of sale
UP LAW BOC
CREDIT TRANSACTIONS
Judicial
Decisions
appealable
NATURE
OF
JUDICIAL
FORECLOSURE PROCEEDINGS
Extrajudicial
are Not appealable
CIVIL LAW
Special
power
of
attorney in favor of the
mortgage is required in
the contract
EXTRAJUDICIAL FORECLOSURE
JUDICIAL FORECLOSURE
PAGE 365
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
NATURE OF POWER OF
FORECLOSURE BY EXTRAJUDICIAL
SALE
Note:
(a) Both should be distinguished from execution
sale governed by Rule 39, ROC.
(b) Foreclosure retroacts to the date of
registration of mortgage.
(c) A stipulation of upset price, or the minimum
price at which the property shall be sold to
become operative in the event of a
foreclosure sale at public auction, is null and
void.
REDEMPTION
(1) It is a transaction by which the mortgagor
reacquires the property which may have
passed under the mortgage or divests the
property of the lien which the mortgage may
have created
(2) Kinds:
(a) Equity of redemption: in judicial
foreclosure of real estate mortgage under
the ROC, it is the right of the mortgagor
to redeem the mortgaged property by
paying the secured debt within the 120
day period from entry of judgment or after
the foreclosure sale, but before the sale of
the mortgaged property or confirmation
of sale
formal offer to redeem preserves the
right of redemption, e.g., by filing an
action to enforce the right to redeem
(b) Right of redemption: in extrajudicial
foreclosure of real estate mortgage, the
right of the mortgagor to redeem the
property within a certain period after it was
sold for the satisfaction of the debt. [if the
mortgagee is a bank, the redemption
period expires after registration of the
sale.]
(i) For natural persons one year from the
registration of the TCT
(ii) For juridical persons three months
from the foreclosure
(iii) Formal offer to redeem must be with
tender of redemption price to preserve
right of redemption
PAGE 366
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
AS
DISTINGUISHED
OTHER CONTRACTS
Antichresis
Pledge
Kind
of Real property
property
Personal property
Delivery of thing
pledged
Antichresis
Possession
Antichresis
Delivered
creditor
Real mortgage
to Retained
debtor
Creditor
acquires
only
Right
to the right to
the fruits receive fruits
FROM
by
CHARACTERISTICS
Payment of Creditor
is Creditor has no
taxes and generally
obligation to pay
charges
obliged to pay
SPECIAL REQUISITES
OBLIGATIONS OF ANTICHRETIC
CREDITOR
PAGE 367
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
REMEDIES OF CREDITOR IN
CASE OF NON-PAYMENT OF
DEBT
(1) Action for specific performance
(2) Petition for the sale of the real property as in
a foreclosure of mortgage under Rule 68 of
the Rules of Court [NCC 2137]
(a) The parties, however, may agree on an
extrajudicial foreclosure in the same
manner as they are allowed in contracts
of mortgage and pledge Tavera v. El
Hogar Filipino, Inc. [1939]
(b) A stipulation authorizing the antichretic
creditor to appropriate the property upon
the non-payment of the debt within the
agreed period is void [NCC 2088]
OBLIGATIONS SECURED
Chattel Mortgage
PROPERTY COVERED
CHATTEL MORTGAGE
VALIDITY OF CHATTEL
MORTGAGE
CHARACTERISTICS
FORMAL REQUISITES
PAGE 368
UP LAW BOC
CREDIT TRANSACTIONS
REGISTRATION
MORTGAGE
OF
CIVIL LAW
CHATTEL
REGISTRATION OF ASSIGNMENT OF
MORTGAGE NOT REQUIRED
PERIOD
VENUE
FAILURE OF MORTGAGEE
DISCHARGE THE MORTGAGE
TO
PAGE 369
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
Quasi-Contracts
FORECLOSURE
DISPOSITION OF PROCEEDS
OBLIGATIONS OF A GESTOR
PAGE 370
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
EFFECT OF RATIFICATION
EXTINGUISHMENT OF
MANAGEMENT
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
PRESUMPTION OF PAYMENT BY
MISTAKE, DEFENSE
LIABILITY OF PAYEE
PAGE 372
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
CLASSIFICATION OF CREDITS
(1) Special Preferred Credits
(a) These are considered as mortgages or
pledges of real or personal property, or
liens within the purview of legal provisions
governing insolvency. [NCC 2243]
(b) Taxes in NCC 2241 and 2242 shall first be
satisfied. [NCC 2243] Only taxes enjoy a
preference; for all other claims, there is
only a concurrence of credits. [GomezSomera]
(c) They exclude all other claims to the extent
of the value of the affected property.
(d) These take precedence over ordinary
preferred credits insofar as the property,
to which the liens attach, is concerned.
[Gomez-Somera]
(e) Pro-rating:
TOTAL AMOUNT TO BE PAID is equal to:
Credit
------------------ x value of property
Total amount of
concurring
debts
Concurrence and
Preference of Credits
Concurrence of credits implies possession by
two or more creditors of equal rights or
privileges over the same property or all of the
property of the debtor.
PAGE 373
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
[ART. 2242]
PAGE 374
UP LAW BOC
CREDIT TRANSACTIONS
CIVIL LAW
ORDINARY PREFERRED
CREDITS [ART. 2244]
PAGE 375
UP LAW BOC
CREDIT TRANSACTIONS
EXEMPT PROPERTY
PAGE 376
CIVIL LAW
PAGE 377
UP LAW BOC
Land Title
CONCEPT
Deed
CONCEPT
ELEMENTS OF A DEED
(a)
(b)
(c)
(d)
(e)
(f)
(g)
CIVIL LAW
Land Registration
Grantor
Grantee
Words of Grant
Description of the property involved
Signature of the grantor
At least 2 witnesses
Notarial acknowledgment
CONCEPT
A judicial or administrative proceeding whereby
a persons claim of ownership over a particular
land is determined and confirmed or recognized
so that such land and the ownership thereof
may be recorded in a public registry.
Estate
NATURE OF LAND
REGISTRATION
CONCEPT
An estate, strictly speaking, represents the
nature, extent, degree, and quantity of a
persons interest in land.
TYPES OF ESTATE
(1) Freehold Estate Indicates title of
ownership
(a) Fee Simple An absolute title in
perpetuity; Title to land is conferred
upon a man and his heirs absolutely
and without any limitation imposed
upon the estate
(b) Fee Tail One designed to pass title
from grantee to his heirs, in the intent of
the grantor being to keep the property
in the grantees line of issue
(c) Life Estate One held for the duration
of the life of the grantee; In some cases,
it may terminate earlier as by forfeiture
PAGE 378
UP LAW BOC
LAWS IMPLEMENTING
REGISTRATION
LAND
OBJECT OF REGISTRATION
CLASSIFICATION OF LANDS
PURPOSES
OF
REGISTRATION
CIVIL LAW
(1)
(2)
(3)
(4)
Private or public
Alienable or inalienable
Registered or unregistered
Registrable or Non-registrable
REGISTRABLE LANDS
LAND
NON-REGISTRABLE LANDS
Those found in the Civil Code dealing with nonregistrable properties (e.g. property of public
dominion)
Torrens System
CONCEPT
PAGE 379
UP LAW BOC
CIVIL LAW
HISTORY
The boldest effort to grapple with the problem
of simplification of title to land was made by Mr.
(afterwards Sir Robert) Torrens, a layman, in
South Australia in 1857. In the Torrens system
title by registration takes the place of "title by
deeds" of the system under the "general" law. A
sale of land, for example, is effected by a
registered transfer, upon which a certificate of
title is issued. The certificate is guaranteed by
statute, and, with certain exceptions, constitutes
indefeasible title to the land mentioned therein.
The object of the Torrens system, them, is to do
away with the delay, uncertainty, and expense of
the old conveyancing system.
ADMINISTRATION
TORRENS SYSTEM
OF
THE
CERTIFICATE OF TITLE
THE TORRENS TITLE
Secures title
Protection against fraud
Simplified dealings
Restoration of the estates to its just value,
whose depreciation is caused by some blur,
technical defect
(5) Barred the recurrence of faults in the title
NATURE
Judicial in Nature
PURPOSE
The real purpose of the Torrens system of
registration is to quiet title to land; to put a stop
forever to any question of the legality of the
PAGE 380
UP LAW BOC
CIVIL LAW
Exceptions:
(a) Those claims noted on the certificate
(b) Liens, claims, or rights arising or
existing under the laws and the
Constitution, which are not by law
required to appear on record in the
Register in order to be valid
(c) Unpaid real estate taxes levied and
assessed within 2 years immediately
preceding the acquisition of any right
over the land by an innocent purchaser
for value
(3) Title to the land becomes non-prescriptible
(a) Even adverse, notorious, and continuous
possession under claim of ownership for
the period fixed by law is ineffective
against a Torrens title [JM Tuason and
Co. Inc. v. CA (1979)]
(b) The fact that the title to the land was
lost does not mean that the land ceased
to be registered land before the
reconstitution of its title. It cannot
perforce be acquired by prescription.
[Ruiz v. CA (1977)]
(4) Land becomes incontrovertible and
indefeasible. A decree of registration and
registered title cannot be impugned,
enlarged, altered, modified, or diminished
either in collateral or direct proceeding after
the lapse of the 1-year period prescribed by
the law.
PROBATIVE VALUE
EFFECT OF REGISTRATION
UNDER THE TORRENS SYSTEM
Exceptions:
(1) If previous valid title of the same land
exists
(2) When the land covered is not capable of
registration
(3) When acquisition of certificate is
attended by fraud
NOTE:
Under the Torrens system, registration only
gives validity to the transaction or creates a lien
upon the land. It merely confirms, but does not
confer, ownership [Lu v. Manipon, (2002)]
PAGE 381
UP LAW BOC
CIVIL LAW
EFFECT OF NONREGISTRATION
Exceptions:
(1) The grantor,
(2) His heirs and devisees, and
(3) Third persons having actual notice or
knowledge thereof.
Regalian Doctrine
CONCEPT
EFFECTS
LACHES
PAGE 382
UP LAW BOC
Citizenship Requirement
INDIVIDUALS
CONSTITUTIONAL
AND LIMITATIONS
OF
REQUIREMENTS
CERTIFICATE
DOMAIN TITLE
CIVIL LAW
KRIVENKO DOCTRINE
The capacity to acquire private land is made
dependent upon the capacity to acquire or hold
lands of public domain. Private land may be
transferred or conveyed only to individuals or
entities qualified to acquire lands of public
domain [Bernas]
ANCESTRAL
PAGE 383
UP LAW BOC
CIVIL LAW
Exceptions:
(1) Aliens by way of hereditary succession
(2) Natural born citizens who have lost their
citizenship- limited to 5,000 sq. m. for
urban land and 3 hectares for rural land [RA
No. 7042 as amended by RA No. 8179]
(3) Aliens, although disqualified to acquire
lands of public domain, may lease private
land for a reasonable period provided, that
such lease does not amount to a virtual
transfer of ownership. They may also be
given an option to buy property on the
condition that he is granted Philippine
citizenship. [Llantino v Co liong Chong (GR
No. 29663)]
(4) Lands acquired by an American citizen prior
the
proclamation
of
Philippine
Independence on July 4, 1946 but after the
passage of the 1935 Constitution may be
registered, based on the ordinance
appended to the 1935 Constitution [Moss v
Director of Lands (GR No. L-27170)]
(5) Land sold to an alien which is now in the
hands of a naturalized citizen can no longer
be annulled [De Castro v Tan (GR No. L31956)]. The litigated property is now in the
hands of a naturalized Filipino. It is no
longer owned by a disqualified vendee. The
purpose of the prohibition ceases to be
applicable. [Barsobia v Cuenco (GR No. L33048)]
Original Registration
Subsequent Registration
CORPORATIONS
KINDS
OF
REGISTRATION
ORIGINAL
CORPORATION SOLE
Original Registration
CONCEPT
This is a proceeding brought before the land
registration court to determine title or
ownership of land on the basis of an application
for registration or answer by a claimant in a
cadastral registration.
LIMITATIONS TO OWNERSHIP OF
LANDS
(1) For private lands
(a) At least 60% Filipino [Art. XII, Sec. 7,
Constitution]
(b) Restricted as to extent reasonably
necessary to enable it to carry out the
purpose for which it was created
(c) If engaged in agriculture, it is restricted
to 1,024 hectares
PAGE 384
UP LAW BOC
CIVIL LAW
WHERE TO FILE
The court that should take cognizance of a
registration case is that which has territorial
jurisdiction over the property.
General rule: RTC of the province, city, or
municipality where the property is situated. The
RTC shall have exclusive jurisdiction over all
applications original for registration of title, with
power to hear and determine all questions
arising upon such applications or petition. [Sec.
2, par. 2, P.D. No. 1529]
Exception: Delegated jurisdiction to the MTC,
MeTC, and MCTC by the Supreme Court in
cadastral and land registration cases if:
(1) There is no controversy over the land, or
(2) Its value is less than P100,000 [Sec. 34, BP
129]
PAGE 385
UP LAW BOC
CIVIL LAW
PROCEDURE IN ORDINARY
LAND REGISTRATION
STEP 1: Survey of the land by the Bureau of
Lands or a duly registered private surveyor
Note: No plan of such survey, whether it be
original or subdivision, may be admitted in land
registration proceedings until approved by the
Director of lands [Sec. 1858, Administrative
Code]
STEP 2: Filing of application for registration by
the applicant:
(1) Form of the application
(a) In writing
(b) Signed by the applicant/s or person
duly authorized in his behalf
(c) Sworn before any officer authorized to
administer oath for the province or city
where the application was actually
signed
(d) Application is presented in duplicate
(2) Contents of the application:
(a) A description of the land
(b) The citizenship and civil status of the
applicant, whether single or married,
and, if married, the name of the wife or
husband, and, if the marriage has been
legally dissolved, when and how the
marriage relation terminated. It shall
also state
(c) The full names and addresses of all
occupants of the land and those of the
adjoining owners, if known, and, if not
known, it shall state the extent of the
search to find them.
(d) Whether the property is conjugal,
paraphernal or exclusively owned by the
applicant.
(3) Documents to accompany the application
(from Regulations in Ordinary Land
Registration Cases)
(a) Tracing-cloth plan duly approved by the
Director of Lands, together with two
blueprint or photographic copies
thereof;
(b) Three copies of the corresponding
technical descriptions;
(c) Three copies of the surveyors
certificate;
PAGE 386
UP LAW BOC
CIVIL LAW
PAGE 387
UP LAW BOC
CIVIL LAW
PAGE 388
UP LAW BOC
CIVIL LAW
PAGE 389
UP LAW BOC
EVIDENCE NECESSARY
PROOFS NECESSARY
REGISTRATION
IN
CIVIL LAW
LAND
REMEDIES
REVERSION
PAGE 390
UP LAW BOC
CIVIL LAW
PAGE 391
UP LAW BOC
CIVIL LAW
Judicial Confirmation of
Imperfect or Incomplete
Titles
CONCEPT
No title or right to, or equity in, any lands of the
public domain may be acquired by prescription
or by adverse possession or occupancy except as
expressly provided by law. [CA 141, Sec 57]
WHEN APPLICABLE
PAGE 392
UP LAW BOC
CORPORATIONS
Private domestic corporations or associations
which had acquired lands from Filipino citizens
who had possessed the same in the manner and
for the length of time indicated in numbers (1)
and (2) above.
Notwithstanding the prohibition in the 1973 and
1987 Constitutions against private corporations
holding lands of the public domain except by
lease not exceeding 1000 hectares, still a
private corporation may institute confirmation
proceedings under Sec. 48, (b) of the Public
Land Act if, at the time of institution of the
registration proceedings, the land was already
private land. On the other hand, if the land was
still part of the public domain, then a private
corporation cannot institute such proceedings.
[Dir. Of Lands v. IAC and ACME, 146 SCRA 509,
1986]
EVIDENCE
NECESSARY
TO
SUBSTANTIATE APPLICATION
The applicant must prove:
(1) That the land applied for has been
declassified and is a public agricultural
land, is alienable and disposable, or
otherwise
capable
of
registration.
Specifically, the following may be
presented:
(a) Presidential proclamation
(b) Executive Order
(c) Administrative Order issued by the
DENR Secretary
(d) Bureau of Forest Development Land
Classification Map
(e) Certification by the Director of Forestry
(f) Investigation reports of Bureau of Lands
Investigator
(g) Legislative act or statute
(2) The identity of the land; the following may
be submitted:
(a) Survey plan
(b) Tracing cloth plan and blue print copies
of plan
(c) Technical description of the land
(d) Tax declarations
(e) Boundaries and area
(3) Possession and occupation of the land for
the length of time and in the manner
required by law
SCOPE OF APPLICATION
PROCEDURE
IN
CONFIRMATION
CIVIL LAW
JUDICIAL
PAGE 393
UP LAW BOC
CIVIL LAW
Cadastral Registration
CONCEPT
Cadastral Registration
Compulsory
PROCEDURE IN CADASTRAL
REGISTRATION [Sec. 35 and 36,
PD 1529]
STEP 1: Determination of the President that
public interest requires title to unregistered
lands be settled and adjudicated. President
PAGE 394
UP LAW BOC
CIVIL LAW
DISALLOWANCE OF
REOPENING CADASTRAL
CASES
Subsequent Registration
CONCEPT
Subsequent registration is a proceeding where
incidental matters AFTER original registration
may be brought before the land registration
court by way of motion or petition filed by the
registered owner or a party in interest
PAGE 395
UP LAW BOC
Involuntary Dealings
CIVIL LAW
Voluntary Dealings
Involuntary Dealings
VOLUNTARY DEALINGS
PROCESS OF REGISTRATION
VOLUNTARY
INSTRUMENTS
GENERAL [Sec. 55, PD 1529]
OF
IN
UP LAW BOC
CIVIL LAW
PROCESS OF REGISTRATION OF
DEALINGS LESS THAN OWNERSHIP
[Sec. 54, PD 1529]
IF
THERE
ARE
SUBSISTING
ENCUMBRANCES AND ANNOTATIONS
They shall be carried over in the new certificate
or certificates; except when they have been
simultaneously discharged.
REGISTRATION OF MORTGAGES
AND LEASES [Sec. 60, PD 1529]
PAGE 397
UP LAW BOC
REGISTRATION OF POWERS
ATTORNEY [Sec. 64, PD 1529]
OF
CIVIL LAW
REGISTRATION OF ATTACHMENT
Attachment is a writ issued at the institution or
during progress of an action commanding the
sheriff to attach the property, rights, credits or
effects of the defendant to satisfy demands of
the plaintiff.
KINDS
(1) Preliminary
(2) Garnishment
(3) Levy on execution
REGISTRATION OF TRUSTS
Registration is by memorandum:
(1) A memorandum by the words in trust or
upon condition or other apt words is made
if a deed or other instrument is filed in order
to:
(a) Transfer registered land in trust, or
upon any equitable condition or
limitation expressed therein, or
(b) Create or declare a trust or other
equitable interests in such land without
transfer [Sec. 65, PD 1529]
(2) A memorandum by the words with power
to sell, or power to mortgage or other apt
words is made when:
PROCESS OF REGISTRATION
(1) Copy of writ in order to preserve any lien,
right or attachment upon registered land
shall be filed with the Register of Deeds
where the land lies, containing number of
certificate of title of land to be affected or
description of land (PD 1529, Sec 69)
(2) Register of Deeds to index attachment in
names of both plaintiff & defendant or
name of person whom property is held or in
whose name stands in the records
(a) If duplicate of certificate of title is not
presented:
(i) Register of Deeds shall within 36
hours send notice to registered
owner by mail stating that there has
been registration & requesting him
to produce duplicate so that
memorandum be made
(ii) If owner neglects or refuses
Register of Deeds shall report
matter to court.
(b) Court after notice shall enter an order to
owner to surrender certificate at time &
place to be named therein.
(3) Although notice of attachment is not noted
in duplicate, notation in book of entry of
Register of Deeds produces effect of
registration already
INVOLUNTARY DEALINGS
EFFECT
OF
REGISTRATION
OF
ATTACHMENT
(1) Creates real right
(2) Has priority over execution sale
(3) But between 2 attachments one that is
earlier in registration is preferred
PAGE 398
UP LAW BOC
CIVIL LAW
EXECUTION SALE
(1) To enforce a lien of any description on
registered land, any execution or affidavit to
enforce such lien shall be filed with Register
of Deeds where the land lies
(2) Register in the registration book &
memorandum upon proper certificate of
title as adverse claim or as an encumbrance
(3) To determine preferential rights between 2
liens: priority of registration of attachment
REGISTRATION
PENDENS
OF
NOTICE
LIS
TAX SALE
(1) Sale of land for collection of delinquent
taxes and penalties due the Government
(2) In personam (all persons interested shall be
notified so that they are given opportunity
to be heard)
Notice to be given to delinquent tax payer
at last known address
Publication of notice must also be made
in English, Spanish & local dialect &
posted in a public & conspicuous place in
place wherein property is situated & at the
main entrance of the provincial building
(3) Sale cannot affect rights of other lien
holders unless they are given the right to
defend their rights: due process must be
strictly observed
(4) Tax lien superior to attachment
PROCESS
OF
REGISTRATION:
By
Memorandum or Notice stating
(1) The institution of the action or proceeding
(2) The court wherein the same is pending
(3) The date of the institution of the action
(4) Reference to the number of the certificate of
title
PROCESS OF REGISTRATION
(1) Officers return shall be submitted to
Register of Deeds together with duplicate
title
(2) Register in the registration book
PAGE 399
UP LAW BOC
CIVIL LAW
EFFECT OF REGISTRATION
(1) Impossibility of alienating the property in
dispute during the pendency of the suit
may be alienated but purchaser is subject to
final outcome of pending suit
(2) Register of Deeds is duty bound to carry
over notice of lis pendens on all new titles to
be issued
77, PD 1529]
(1) Before final judgment court may order
cancellation after showing that notice is
only for the purpose of molesting an
adverse party or it is not necessary to
protect the rights of the party who caused it
to be registered
(2) Register of Deeds may also cancel upon
verified petition of the party who caused
such registration
(3) Deemed cancelled when certificate of clerk
of court stating manner of disposal of
proceeding is registered
Non-Registrable
Properties
CONCEPT
PAGE 400
UP LAW BOC
CIVIL LAW
PAGE 401
UP LAW BOC
PROCESS OF REGISTRATION
Dealings with
Unregistered Lands
No deed, conveyance, mortgage, lease, or other
voluntary instrument affecting land not
registered under the Torrens system shall be
valid, except as between the parties thereto,
unless such instrument shall have been
recorded in the manner herein prescribed in the
office of the Register of Deeds for the province
or city where the land lies. [Sec. 113, par. 1, PD
1529]
EFFECTS OF
COVERING
LAND
CIVIL LAW
TRANSACTIONS
UNREGISTERED
PAGE 402
INVOLUNTARY DEALINGS
UNREGISTERED LANDS
IN
PAGE 403
UP LAW BOC
TORTS
ABUSE OF RIGHT
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act
with justice, give everyone his due, and observe
honesty and good faith.
LEGAL RIGHT
AND INJURY
The dismissal
itself was not
illegal but it
was
the
manner
of
dismissal
which
was
Globe vs. CA
deemed
in
(1989):
violation
of
Article 19, as
such
was
based
on
unfounded
accusations of
dishonesty.
CASE
Principles
CASE
CIVIL LAW
DOCTRINE
The standards
in NCC 19 are
implemented
by NCC 21.
PAGE 404
DOCTRINE
When a right is
exercised in a
manner which
does
not
conform with
the norms in
NCC 19, and
results
in
damage
to
another,
a
legal wrong is
thereby
committed.
The conscious
indifference of
a person to the
rights
or
welfare of the
University
of
others
who
the East vs.
may
be
Jader (2000):
affected by his
act or omission
can support a
claim
for
damages.
Article
19,
known
to
contain what is
commonly
Ruby
Lims
referred to as
throwing out
the principle of
of complainant
abuse
of
Reyes, as a
rights, is not a
gatecrasher in
panacea for all
a private party,
human hurts
was merely in
and
social
Nikko
Hotel exercise of her
grievances.
Manila Garden duties
as
The object of
vs.
Reyes Executive
this article is to
(2005)
Secretary
of
set
certain
the
hotel
standards
where
the
which must be
party was held,
observed not
and did not
only in the
constitute
a
exercise
of
violation
of
ones
rights
Article 19.
but also in the
performance
of ones duties.
The conscious
indifference of
the school in
not informing
its
student
that he could
not graduate
formed
the
basis for the
award
of
damages.
UP LAW BOC
CIVIL LAW
MALICIOUS PROSECUTION
Elements:
(1) Legal action;
(2) Contrary to morals, public policy, good
customs; and
(3) Intent to injure.
PAGE 405
UP LAW BOC
PUBLIC HUMILIATION
UNJUSTIFIED DISMISSAL
UNJUST ENRICHMENT
Art. 22. Every person who through an act of
performance by another, or any other means,
acquires or comes into possession of something at
the expense of the latter without just or legal
ground, shall return the same to him.
CIVIL LAW
BASIS OF LIABILITY
Equity. An involuntary act, because of its
character, cannot generally create an
obligation; but when by such act its author has
been enriched, it is only just that he should
indemnify for the damages caused to the extent
of this enrichment.
PAGE 406
SCOPE OF LIABILITY
The indemnity does not include unrealized
profits of the injured party, because the
defendants enrichment is the limit of his
liability.
UP LAW BOC
Classification of Torts
CIVIL LAW
The Tortfeasor
Tortfeasor refers to all persons who command,
instigate,
promote,
encourage,
advise,
countenance, cooperate in, aid or abet the
commission of a tort, or who approve of it after
it is done, if done for their benefit. [Worcester vs.
Ocampo (1958)]
ACCORDING TO MANNER OF
COMMISSION
NEGLIGENT TORT
INTENTIONAL TORT
An intentional tort is perpetrated by one who
intends to do that which the law has declared to
be wrong. It is conduct where the actor desires
to cause the consequences of the act, or that he
believes
that
the
consequences
are
substantially certain to result therefrom.
STRICT LIABILITY
GENERAL
SPECIFIC
ACCORDING TO SCOPE
Tort liability is based on any of the three
categories: intentional, negligent, strict liability.
Includes trespass, assault, battery, negligence,
products liability, and intentional infliction of
emotional distress.
PAGE 407
UP LAW BOC
LIABILITY
OF
TORTFEASOR
THE
ACTUAL
PRESUMPTION OF NEGLIGENCE ON
PERSONS
INDIRECTLY
RESPONSIBLE
NATURE OF LIABILITY
PAGE 408
CIVIL LAW
UP LAW BOC
CIVIL LAW
Adopted Children
Judicially adopted children are considered
legitimate children of their adopting parents.
Thus, adopters are civilly liable for their
tortious/ criminal acts if the children live with
them and are below 21 years of age.
Illegitimate Children
Responsibility is with the mother whom the law
vests with parental authority.
Reason for Vicarious Liability
The civil liability which the law imposes upon
the father and, in case of his death or incapacity,
the mother, for any damages that may be
caused by the minor children who live with
them, is obvious. This is a necessary
consequence of the parental authority they
exercise over them which imposes upon the
parents the duty of supporting them, keeping
them in their company, educating them in
proportion to their means, while, on the other
hand, gives them the right to correct and
punish them in moderation. [Exconde vs.
Capuno (1957)]
The basis of parental authority for the torts of a
minor child is the relationship existing between
the parents and the minor child living with them
and over whom, the law presumes, the parents
exercise supervision and control. To hold that
parental authority had been retroactively
lodged in the adoptive parents so as to burden
them with the liability for a tortious act that they
could not have foreseen and prevented would
be unfair.
Parental liability is, in other words, anchored
upon parental authority coupled with presumed
parental dereliction in the discharge of the
duties accompanying such authority. The
parental dereliction is, of course, only presumed
and the presumption can be overturned under
Article 2180 of the Civil Code by proof that the
PAGE 409
UP LAW BOC
Requisites for
liability to
attach
Teacher-inPupils
and
charge (the
students
one
Pupils
and remain
in
designated to students
teachers
exercise
custody
supervision
regardless of
over students)
the age
Head
of
establishment
of arts and Apprentices
trades
be
Custody
regardless of
the age
If
the
tortfeasor is a
School
student of the Must
(generally not
school [Art. below 18
held liable)
218 FC]
Requisites for
liability to
attach
If
the
School
tortfeasor is a Must
(generally not
stranger, it is below 18
held liable)
liable
for
breach
of
contract since
the school has
the implied
duty to its
students to
maintain
peace
and
order within
its premises.
(PSBA vs. CA
[1992])
SCHOOL,
TEACHERS
AND
ADMINISTRATORS
Teachers or heads of establishments of arts and
trades shall be liable for damages caused by
their pupils and students or apprentices, so long
as they remain in their custody. [Art. 2180, par.
7]
For whose acts
CIVIL LAW
be
PAGE 410
UP LAW BOC
CIVIL LAW
OWNERS
AND
MANAGERS
OF
ESTABLISHMENTS AND ENTERPRISES
The owners and managers of an establishment
or enterprise are likewise responsible for
damages caused by their employees in the
service of the branches in which the latter are
employed or on the occasion of their functions.
[Art. 2180, par. 4]
Who are liable
For whose
acts
Owners and
managers of
Their
an
employees
establishment
or enterprise
Requisites for
liability to attach
The
damage
was caused in
the service of
the branches in
which
the
employees are
employed
-ORThe
damage
was caused on
the occasion of
their functions
PAGE 411
UP LAW BOC
Meaning of employer
CIVIL LAW
Independent contractor
General rule: Master not generally liable for the
fault or negligence of an independent
contractor performing some work for him
Presumption of negligence
The presentation of proof of the negligence of
its employee gives rise to the presumption that
the defendant employer did not exercise the
diligence of a good father of a family in the
selection and supervision of its employees.
Requisites:
(1) Employee chosen by employer or through
another;
(2) Services rendered in accordance with orders
which employer has authority to give;
(3) Illicit act of employee was on the occasion
or by reason of the functions entrusted to
him;
(4) Presumption of negligence.
PAGE 412
UP LAW BOC
CIVIL LAW
4th paragraph
5th paragraph
Owners
and
managers of an
establishment or an
enterprise
Employers in
general,
whether or not
engaged
in
business
or
industry
Negligent acts of
employees
committed either in
Covered acts the service of the
branches or on the
occasion of their
functions
Negligent acts
of employees
acting within
the scope of
their assigned
task
Liable
persons
DEFENSE
OF
DILIGENCE
SELECTION AND SUPERVISION
IN
PAGE 413
UP LAW BOC
CIVIL LAW
THE STATE
The State may not be sued without its consent.
[Sec 3, Art XVI, 1987 Constitution]
Criminal Negligence
The vicarious liability of the employer for
criminal negligence of his employee is governed
by Art. 103, RPC. Conviction of the employee
conclusively binds the employer. Defense of due
diligence in the selection and supervision of the
employee is NOT available. The employer
cannot appeal the conviction. [Fernando vs.
Franco (1971)]
Exceptions:
(1) There is express legislative consent;
(2) The State filed the case (because here, it is
deemed to have waived its immunity).
PAGE 414
UP LAW BOC
CIVIL LAW
JOINT TORTFEASORS
Art. 2194. The responsibility of two or more
persons who are liable for quasi-delict is solidary.
DEFINITION OF JOINT
TORTFEASORS
NATURE OF LIABILITY
Notes:
As a governmental entity: Liable only for acts
of its special agents.
As a corporate entity: May be held liable just
as any other employer for the acts of its
employees.
Special agent one duly empowered by a
definite order or commission to perform some
act or one charged with some definite purpose
which give rise to the claim; if he is a
government employee or official, he must be
acting under a definite and fixed order or
commission, foreign to the exercise of the
duties of his office.
PAGE 415
UP LAW BOC
Proximate Cause
CONCEPT
CAUSE
OF
CIVIL LAW
PROXIMATE
DEFINITION
Proximate cause that cause, which, in natural
and continuous sequence, unbroken by any
efficient intervening cause, produces the injury,
and without which the result would not have
occurred.
Proximate legal cause that acting first and
producing the injury, either immediately or by
setting other events in motion, all constituting a
natural and continuous chain of events, each
having a close causal connection with its
immediate predecessor, the final event in the
chain immediately effecting the injury as a
natural and probable result of the cause which
first acted, under such circumstances that the
person responsible for the first event should, as
an ordinary prudent and intelligent person, have
reasonable ground to expect at the moment of
his act or default that an injury to some person
might probably result therefrom. [Bataclan vs.
Medina (1957)]
Intervening cause
If the intervening cause is one which in ordinary
human experience is reasonably to be
anticipated, or one which the defendant has
reason to anticipate under the particular
circumstances, the defendant may be negligent,
among other reasons, because of failure to
guard against it.
There is an intervening cause combining with
the defendants conduct to produce the result,
and the defendants negligence consists in
failure to protect the plaintiff against that very
risk.
DIFFERENTIATED FROM:
Remote cause
A prior and remote cause cannot be made the
basis of an action if such remote cause did
nothing more than furnish the condition or give
rise to the occasion by which the injury was
made possible, if there intervened between such
prior or remote cause and the injury a distinct,
successive, unrelated, and efficient cause of the
PAGE 416
UP LAW BOC
TESTS TO DETERMINE
PROXIMATE CAUSE
CAUSE IN FACT
EFFECTIVENESS OF THE
BUT FOR RULE
CAUSE;
FORESEEABILITY TEST
NATURAL
AND
CONSEQUENCE TEST
PROBABLE
CIVIL LAW
OR
LEGAL CAUSE
NATURAL
AND
CONSEQUENCES
HINDSIGHT TEST
PROBABLE
PAGE 417
UP LAW BOC
FORESEEABILITY
Elements:
(1) Plaintiffs own negligence puts himself in a
dangerous situation;
(2) Defendant saw or discovered, by exercising
reasonable care, the perilous position of
plaintiff;
(3) In due time to avoid injuring him
(4) Despite notice and imminent peril,
defendant failed to employ care to avoid
injury; and
(5) Injury of plaintiff resulted.
DOCTRINE
CHANCE
OF
LAST
CIVIL LAW
COVERS SUCCESSIVE
NEGLIGENCE
CLEAR
INAPPLICABLE
TORTFEASORS
TO
ACTS
OF
JOINT
PAGE 418
UP LAW BOC
CIVIL LAW
Legal Injury
Elements:
(1) Legal right in favor of a person;
(2) Correlative legal duty on the part of
another;
(3) Wrong in the form of an act or omission or
violation of said legal right and duty with
consequent injury or damage.
CONTRIBUTORY NEGLIGENCE
PAGE 419
UP LAW BOC
CLASSES OF INJURY
INJURY TO PERSONS
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act
with justice, give everyone his due, and observe
honesty and good faith.
Art. 20. Every person who, contrary to law, willfully
or negligently causes damage to another shall
indemnify the latter for the same.
Art. 21. Any person who willfully causes loss or
injury to another in a manner that is contrary to
morals, good customs or public policy shall
compensate the latter for the damage.
CIVIL LAW
Intentional Torts
CONCEPT
INJURY TO PROPERTY
Art. 23. Even when an act or event causing
damage to anothers property was not due to the
fault or negligence of the defendant, the latter
shall be liable for indemnity if through the act or
event he was benefited.
VIOLATIONS OF A PERSONS
SECURITY
AND
PHYSICAL
INJURIES [ART. 33, CC)
INJURY TO RELATIONS
Art. 26. Every person shall respect the dignity,
personality, privacy and peace of mind of his
neighbors and other persons. The following and
similar acts, though they may not constitute a
criminal offense, shall produce a cause of action
for damages, prevention and other relief:
(1) Prying into the privacy of anothers residence;
(2) Meddling with or disturbing the private life or
family relations of another;
(3) Intriguing to cause another to be alienated
from his friends;
(4)
Vexing or humiliating another on account
of his religious beliefs, lowly station in life, place of
birth, physical defect, or other personal condition.
PAGE 420
UP LAW BOC
CIVIL LAW
INTERFERENCE
PROPERTY
TRESPASS TO LAND
Any intentional use of anothers real property,
without authorization and without a privilege by
law to do so, is actionable as a trespass without
regard to harm. [Prosser and Keeton, p. 70]
PERSONAL
Elements: An invasion
(1) which interfered with the right of exclusive
possession of the land, and
(2) which was a direct result of some act
committed by the defendant. [Prosser and
Keeton, p. 67]
TRESPASS TO CHATTELS
Any direct and immediate intentional
interference with a chattel in the possession of
another. [Prosser and Keeton, p. 85]
Conversion
Major interferences with the chattel, or with the
plaintiffs rights in it, which are so serious, and
so important, as to justify the forced judicial sale
to the defendant. [Prosser and Keeton, p. 90]
INTENTIONAL NON-PHYSICAL
HARMS
Art. 26. Every person shall respect the dignity,
personality, privacy and peace of mind of his
neighbors and other persons. The following and
similar acts, though they may not constitute a
criminal offense, shall produce a cause of action
for damages, prevention and other relief:
(1) Prying into the privacy of anothers residence;
(2) Meddling with or disturbing the private life or
family relations of another;
(3) Intriguing to cause another to be alienated
from his friends;
(4) Vexing or humiliating another on account of his
religious beliefs, lowly station in life, place of
birth, physical defect, or other personal
condition.
FALSE IMPRISONMENT
DETENTION)
WITH
(ILLEGAL
PAGE 421
UP LAW BOC
CIVIL LAW
PAGE 422
UP LAW BOC
Invasion of Privacy
Types:
(1) Publication of embarrassing private facts
the interest here is the right to be free from
unwarranted publicity, wrongful publicizing
of private affairs and activities, as these are
outside the ambit of legitimate public
concern.
MALICIOUS PROSECUTION
Art. 2219. Moral damages may be recovered in
the following and analogous cases:
(8) Malicious prosecution;
Art. 21. Any person who wilfully causes loss or
injury to another in manner that is contrary to
morals, good customs or public policy shall
compensate the latter for the damage.
Malicious prosecution the institution of any
action or proceeding either civil or criminal
against another, maliciously and without
probable cause.
CIVIL LAW
Elements:
(1) That the defendant was himself the
prosecutor or that he instigated its
commencement;
(2) That the action was finally terminated with
an acquittal;
(3) That in bringing the action, the prosecutor
acted without probable cause;
(4) That he was actuated or impelled by legal
malice, that is, by improper and sinister
motives. [Lao vs. CA, 1991]
Defamation
PAGE 423
UP LAW BOC
CIVIL LAW
DEFAMATION, FRAUD
PHYSICAL INJURIES
Defenses:
(1) Absence of elements
(2) Privilege
FRAUD OR MISREPRESENTATION
(FORMERLY DECEIT)
Independent civil actions are permitted to be
filed separately regardless of the result of the
criminal action. [Salta vs. De Veyra (1982]
AND
SEDUCTION
Sangco: Seduction is sexual intercourse with an
unmarried woman of chaste character whose
consent was obtained through abuse of
confidence or through deceit.
DEFAMATION
PAGE 424
UP LAW BOC
CIVIL LAW
INTERFERENCE WITH
RELATIONS
UNJUST DISMISSAL
Kinds:
(1) Family relations
(2) Social relations
(3) Economic relations
(4) Political relations
FAMILY RELATIONS
PAGE 425
UP LAW BOC
CIVIL LAW
LOSS OF CONSORTIUM
The plaintiff Aleko E. Lilius also seeks to recover
the sum of P2,500 for the loss of what is called
Anglo-Saxon common law consortium of his
wife, that is, her services, society and conjugal
companionship, as a result of personal injuries
which she had received from the accident now
under consideration.
PAGE 426
UP LAW BOC
CIVIL LAW
ECONOMIC RELATIONS
TORTIOUS
CONTRACT
INTERFERENCE
WITH
SOCIAL RELATIONS
MEDDLING WITH OR DISTURBING FAMILY
RELATIONS
Elements of interference:
(1) Existence of a valid contract;
(2) Knowledge of the third person of the
existence of such contract; and
(3) Interference without legal justification or
excuse.
PAGE 427
UP LAW BOC
CIVIL LAW
UNFAIR COMPETITION
POLITICAL RELATIONS
32, CC)
PAGE 428
UP LAW BOC
CIVIL LAW
Negligence
Art. 1173. The fault or negligence of the obligor
consists in the omission of that diligence which is
required by the nature of the obligation and
corresponds with the circumstances of the
persons, of the time and of the place. When
negligence shows bad faith, the provisions of
Articles 1171 and 2201, paragraph 2, shall apply.
Elements:
(1) Legal duty
(2) Breach
(3) Causation
(4) Damages
TEST OF NEGLIGENCE
PAGE 429
UP LAW BOC
CIVIL LAW
BANKS
STANDARD OF CARE
Test: Did the defendant in doing the alleged
negligent act use that reasonable care and
caution which an ordinarily prudent man would
have used in the same situation? If not, then he
is negligent. Negligence in a given case is not
determined by reference to the personal
judgment of the actor in the situation before
him, but is determined in the light of human
experience and the facts involved in the
particular case.
PAGE 430
UP LAW BOC
CIVIL LAW
PHARMACISTS
The profession of pharmacy, it has been said
again and again, is one demanding care and
skill. The responsibility of the druggist to use
care has been variously qualified as ordinary
care, care of a specially high degree, the
highest degree of care known to practical men.
Even under the first conservative expression,
ordinary care with reference to the business of
a druggistmust be held to signify the highest
practicable degree of prudence, thoughtfulness,
and vigilance, and most exact and reliable
safeguards consistent with the reasonable
conduct of the business in order that human life
may not constantly be exposed to the danger
flowing from the substitution of deadly poisons
for harmless medicine. [US vs. Pineda (1918)]
POSSESSOR
OF
EXTREMELY
DANGEROUS INSTRUMENTALITIES
EMERGENCY RULE
PERIL DOCTRINE
OR
SUDDEN
CHILDREN
PAGE 431
UP LAW BOC
CIVIL LAW
PRESUMPTION OF NEGLIGENCE
Art 1711.
Owners of enterprises and other
employers are obliged to pay compensation for the
death of or injuries to their laborers, workmen,
mechanics or other employees even though the
event may have been purely accidental or entirely
due to fortuitous cause, if the death or personal
injury arose out of and in the course of
employment. The employer is also liable for
compensation if the employee contracts any
illness or disease caused by such employment or
as a result of the nature of the employment. If the
mishap was due to the employees own notorious
negligence, or voluntary act, or drunkenness, the
employer shall not be liable for compensation.
When the employees lack of due care contributed
to his death or injury, the compensation shall be
equitably reduced.
PRESUMED
NEGLIGENCE
NEGLIGENCE PER SE
OR
EVIDENCE
PAGE 432
UP LAW BOC
Elements:
Res ipsa loquitur is applicable when:
(1) The accident is of a kind which ordinarily
does not occur in the absence of someones
negligence;
(2) It is caused by an instrumentality within the
exclusive control of the defendant or
defendants; and
(3) The possibility of contributing conduct
which would make the plaintiff responsible
is eliminated. [Ramos vs. CA (1999)]
CIVIL LAW
DEFENSES
DUE DILIGENCE
Art. 2180. The obligation imposed by Article 2176
is demandable not only for ones own acts or
omissions, but also for those of persons for whom
one is responsible.
xxx
Par. 8. The responsibility treated of in this article
shall cease when the persons herein mentioned
prove that they observed all the diligence of a
good father of a family to prevent damage.
BASIS
The res ipsa loquitur doctrine is based in part
upon the theory that the defendant in charge of
the instrumentality which causes the injury
either knows the cause of the accident or has
the best opportunity of ascertaining it and that
the plaintiff has no such knowledge, and
therefore is compelled to allege negligence in
general terms and to rely upon the proof of the
happening of the accident in order to establish
negligence. [DM Consunji vs. CA (2001)]
EFFECT
The fact of the occurrence of an injury, taken
with the surrounding circumstances, raise a
presumption of negligence, or make out a
plaintiffs prima facie case, and present a
question of fact for defendant to meet with an
explanation.
Elements:
The elements of caso fortuito are:
(1) The cause of the unforeseen and
unexpected occurrence, or of the failure of
the debtor to comply with his obligation,
must be independent of the human will;
PAGE 433
UP LAW BOC
Compared to Article 19
One who made use of his own legal right does
no injury, thus, whatever damages are caused to
another should be borne solely by him under
the principle of damnum absque injuria. This
principle, however, does not apply when there is
an abuse in the exercise of a persons right.
[Amonoy vs. Gutierrez (2001)]
AUTHORITY OF LAW
Art. 5. Acts executed against the provisions of
mandatory or prohibitory laws shall be void, except
when the law itself authorizes their validity.
Damage
Loss,
hurt,
harm resulting
from the injury
Damages
Recompense
compensation
awarded
CIVIL LAW
or
PAGE 434
UP LAW BOC
CIVIL LAW
Requisites:
(1) That the plaintiff had actual knowledge of
the danger;
(2) That he understood and appreciated the
risk from the danger; and
(3) That he voluntarily exposed himself to such
risk.
Exception:
A person is excused from the force of the rule
(volenti non fit injuria), that when he voluntarily
assents to a known danger he must abide by the
consequences, if an emergency is found to exist
or if the life or property of another is in peril or
when he seeks to rescue his endangered
property. [Ilocos Norte vs. CA (1989)]
Prescriptive periods:
4 years for QD
1 year for defamation
PAGE 435
UP LAW BOC
CIVIL LAW
Question
PAGE 436
UP LAW BOC
Suggested
Answer
a)
Special
Liability
Particular Cases
in
Alternative
Answer
CIVIL LAW
PRODUCTS LIABILITY
Art. 2187. Manufacturers and processors of
foodstuffs, drinks, toilet articles and similar goods
shall be liable for death or injuries caused by any
noxious or harmful substances used, although no
contractual relation exists between them and the
consumers.
PAGE 437
UP LAW BOC
BURDEN OF PROOF
CIVIL LAW
7394,
PAGE 438
UP LAW BOC
CIVIL LAW
If the consumer opts for the alternative under subparagraph (a) of the second paragraph of this
Article, and replacement of the product is not
possible, it may be replaced by another of a
different kind, mark or model: Provided, That any
difference in price may result thereof shall be
supplemented or reimbursed by the party which
caused the damage, without prejudice to the
provisions of the second, third and fourth
paragraphs of this Article.
PAGE 439
UP LAW BOC
CIVIL LAW
Negligence
NUISANCE
Basis
Liability
is
based on lack of
proper care and
diligence
Condition
of the act
Act complained
of is already
done
which
caused injury to
the plaintiff
Remedy
Action
damages
for
VS.
Nuisance
Liability
attaches
regardless
of
the
skill
exercised
to
avoid the injury
There
is
continuing harm
being suffered
by the aggrieved
party because of
the
maintenance of
the act or thing
which
constitutes the
nuisance
Abatement
NUISANCE PER SE
PAGE 440
UP LAW BOC
PUBLIC NUISANCE
CIVIL LAW
PRIVATE NUISANCE
ATTRACTIVE NUISANCE
PAGE 441
UP LAW BOC
CIVIL LAW
VIOLATION OF
CONSTITUTIONAL RIGHTS
VIOLATION OF CIVIL LIBERTIES
Art 32. Any public officer or employee, or any
private individual, who directly or indirectly
obstructs, defeats, violates or in any manner
impedes or impairs any of the following rights and
liberties of another person shall be liable to the
latter for damages:
(1) Freedom of religion
(2) Freedom of speech
(3) Freedom to write for the press or to maintain a
periodical publication
(4) Freedom from arbitrary or illegal detention
(5) Freedom of suffrage
(6) The right against deprivation of property
without due process of law
(7) The right to just compensation when property
PAGE 442
UP LAW BOC
CIVIL LAW
DERELICTION OF DUTY
Requisites:
(1) Defendant is a public officer charged with a
performance of a duty in favor of the
plaintiff;
(2) He refused or neglected without just
cause to perform the duty;
(3) Plaintiff sustained material or moral loss as
a consequence of such non-performance;
(4) The amount of such damages, if material.
[Amaro vs. Samanguit]
PROVINCES,
MUNICIPALITIES
CITIES,
AND
Coverage
Applies only to acts of nonfeasance or the
nonperformance of some acts which a person is
obliged or has responsibility to perform.
PAGE 443
UP LAW BOC
CIVIL LAW
PAGE 444
UP LAW BOC
PROPRIETOR
STRUCTURE
OF
BUILDING
OR
CIVIL LAW
HEAD OF FAMILY
PAGE 445
UP LAW BOC
Strict Liability
CIVIL LAW
NUISANCE
Sangco: A person who creates or maintains a
nuisance is liable for the resulting injury to
others regardless of the degree of care or skill
exercised to avoid the injury. The creation or
maintenance of a nuisance is a violation of an
absolute duty.
APPLICABILITY OF PROVISION
CLASSES
BASIS
SCOPE OF PROVISION
PAGE 446
UP LAW BOC
CIVIL LAW
CONSUMER ACT
Consumer Act Provisions, supra
PAGE 447
UP LAW BOC
CIVIL LAW
Manufacturers and
processors of foodstuffs,
drinks, toilet articles and
similar goods
Defendant in possession
of dangerous weapons/
substances such as
firearms and poison
Provinces, Cities and
Municipalities
Proprietor of building/
structure
Engineer or Architect
Defenses/Exceptions
Force majeure
Fault of the person who
suffered damage
PAGE 448
UP LAW BOC
Contractor
For What
If within the same period, the edifice
falls on account of:
o Defects in the construction;
o Used of materials of inferior quality
furnished by him; or
o Violation of the terms of the contract
AND he supervised the construction.
If within 15 years from the completion
of the structure, the edifice falls on
account of:
o Defects in the construction;
o Used of materials of inferior quality
furnished by him; or
o Violation of the terms of the contract
Liable for damages caused by things
thrown or falling from the same
PAGE 449
CIVIL LAW
Defenses/Exceptions
UP LAW BOC
CIVIL LAW
DAMAGES
Definition
ACCORDING TO MANNER OF
DETERMINATION
INJURY VS.
DAMAGES
DAMAGE
VS.
SPECIAL DAMAGES
Classification
ACCORDING TO PURPOSE
(1) For adequate reparation of the injury
(a) Compensatory (reparation of pecuniary
losses)
(b) Moral (reparation for non-pecuniary
losses: injury to feelings; physical
suffering, etc.)
(2) For vindication of the right violated:
Nominal
(3) For less than adequate reparation:
Moderate
PAGE 450
Requisites:
To seek recovery of actual damages, it is
necessary to prove the actual amount of loss
with a reasonable degree of certainty, premised
upon competent proof and on the best evidence
obtainable.[ Asilio, Jr. vs. People and Sps.
Bombasi (2011)]
When is a person entitled?
(1) When there is a pecuniary loss suffered by
him;
UP LAW BOC
CIVIL LAW
COMPONENTS
VALUE OF
PROFIT
LOSS;
UNREALIZED
PAGE 451
UP LAW BOC
CIVIL LAW
INTEREST
Art. 2209. If the obligation consists in the payment
of a sum of money, and the debtor incurs in delay,
the indemnity for damages, there being no
stipulation to the contrary, shall be the payment of
the interest agreed upon, and in the absence of
stipulation, the legal interest, which is six per cent
per annum.
Art. 2210. Interest may, in the discretion of the
court, be allowed upon damages awarded for
breach of contract.
Art. 2211. In crimes and quasi-delicts, interest as a
part of the damages may, in a proper case, be
adjudicated in the discretion of the court.
PAGE 452
UP LAW BOC
RATE
(a)
That
which may
have been
stipulated in
writing.
(b) In the
absence of
stipulation,
the rate of
interest
shall be 6%
p.a. (legal
interest)
Legal
interest
6%
per
annum.
6%
per
annum
CIVIL LAW
BASE
and
executory,
whether or not
the case consists
in the payment of
a sum of money
RATE
ACCRUAL
forbearance
credit.
of
ACCRUAL
Start of Delay:
(1) Extrajudicial: Demand letter
(2) Judicial: Filing of complaint
(3) Award
To be computed
from default, i.e.,
from JUDICIAL or
EXTRAJUDICIAL
demand under and
subject to the
provisions
of
Article 1169 of the
Civil Code.
Art.
2201
If UNLIQUIDATED,
from the time the
demand can be
established
with
reasonable
certainty. Hence,
the interest shall
begin to run only
FROM THE DATE
THE JUDGMENT
OF THE COURT IS
MADE (at which
time
the
quantification
of
damages may be
deemed to have
been reasonably
ascertained).
From
FINALITY
UNTIL
ITS
SATISFACTION,
this period being
deemed to be an
equivalent to a
Art.
2202
Contracts
and
Quasicontracts
Crimes
and
Quasidelicts
Extent of Liability
If the obligor acted in GOOD
FAITH, he shall be liable for
natural
and
probable
consequences of the breach,
which the parties have foreseen
or could have reasonably
foreseen at the time the
obligation was constituted.
If the obligor acted with
FRAUD, BAD FAITH, MALICE or
WANTON ATTITUDE, he shall
be responsible for all damages
which may be reasonably
attributed to the breach.
Liability extends to all damages
which are the natural and
probable consequence of the
act or omission complained of.
WON the damage was foreseen
or could have been reasonably
foreseen by the defendant is
irrelevant.
IN
CONTRACTS
CONTRACTS
AND
QUASI-
PAGE 453
UP LAW BOC
CIVIL LAW
EARNING
CAPACITY,
STANDING
Art. 2215. In contracts, quasi-contracts, and quasidelicts, the court may equitably mitigate the
damages under circumstances other than the case
referred to in the preceding article, as in the
following instances:
(1) That the plaintiff himself has contravened the
terms of the contract;
(2) That the plaintiff has derived some benefit as
a result of the contract;
(3) In cases where exemplary damages are to be
awarded, that the defendant acted upon the
advice of counsel;
(4) That the loss would have resulted in any
event;
(5)
That since the filing of the action, the
defendant has done his best to lessen the
plaintiff's loss or injury.
BUSINESS
Where:
Life expectancy = 2/3 * (80 age of victim at
the time of death)
PAGE 454
UP LAW BOC
CIVIL LAW
IN RAPE CASES
In addition:
(1) The defendant shall be liable for the loss of
the earning capacity of the deceased, and the
indemnity shall be paid to the heirs of the
latter; such indemnity shall in every case be
assessed and awarded by the court, unless the
deceased on account of permanent physical
disability not caused by the defendant, had no
earning capacity at the time of his death;
(2) If the deceased was obliged to give support
according to the provisions of article 291, the
recipient who is not an heir called to the
decedent's inheritance by the law of testate or
intestate succession, may demand support
from the person causing the death, for a
period not exceeding five years, the exact
duration to be fixed by the court;
(3)
The spouse, legitimate and illegitimate
descendants and ascendants of the deceased may
demand moral damages for mental anguish by
reason of the death of the deceased.
PAGE 455
UP LAW BOC
Moral Damages
CIVIL LAW
Requisites:
(1) There must be an injury, whether physical,
mental or psychological, clearly sustained
by the claimant;
(2) There must be a culpable act or omission
factually established;
(3) The wrongful act or omission of the
defendant must be the proximate cause of
the injury sustained by the claimant; and
(4) The award of damages is predicated on any
of the cases stated in Art. 2219. [Villanueva
vs. Salvador (2006)]
GENERAL
RECOVERY
PRINCIPLES
OF
be
WHEN AWARDED
PAGE 456
UP LAW BOC
CIVIL LAW
Question
PAGE 457
UP LAW BOC
Suggested
Answer
CIVIL LAW
WHEN RECOVERABLE
Art. 2219. Moral damages may be recovered in the
following and analogous cases:
(1) A criminal offense resulting in physical
injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other lascivious
acts;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other form of defamation;
(8) Malicious prosecution;
(9) Acts mentioned in article 309;
(10) Acts and actions referred to in articles 21, 26,
27, 28, 29, 30, 32, 34, and 35.
PAGE 458
UP LAW BOC
CIVIL LAW
PAGE 459
UP LAW BOC
IN
CASES
PROSECUTION
OF
CIVIL LAW
MALICIOUS
Nominal Damages
WHEN AWARDED
Temperate Damages
Art. 2224. Temperate or moderate damages,
which are more than nominal but less than
compensatory damages, may be recovered when
the court finds that some pecuniary loss has been
suffered but its amount cannot, from the nature of
the case, be provided with certainty.
Art. 2225. Temperate damages
reasonable under the circumstances.
must
be
Requisites:
(1) Actual existence of pecuniary loss.
(2) The nature and circumstances of the loss
prevents proof of the exact amount.
(3) They are more than nominal and less than
compensatory.
(4) Causal connection between the loss and the
defendants act or omission.
(5) Amount must be reasonable.
PAGE 460
UP LAW BOC
CIVIL LAW
Liquidated Damages
Exemplary or Corrective
Damages
PAGE 461
UP LAW BOC
WHEN RECOVERABLE
IN CRIMINAL OFFENSES [ART. 2230)
Art. 2230. In criminal offenses, exemplary
damages as a part of the civil liability may be
imposed when the crime was committed with one
or more aggravating circumstances. Such
damages are separate and distinct from fines and
shall be paid to the offended party.
If arising from
IN
CONTRACTS
AND
CONTRACTS [ART. 2232)
CIVIL LAW
Art.
2230
Crimes
Art.
2231
Quasi-delicts
Art.
2232
Contracts
and
Quasi- contracts
When exemplary
damages are granted
The
crime
was
committed with an
aggravating
circumstance/s
Defendant acted with
gross negligence
Defendant acted in a
wanton,
fraudulent,
reckless, oppressive, or
malevolent manner
GENERAL PRINCIPLES
QUASI-
PAGE 462
UP LAW BOC
(3)
(4)
(5)
(6)
(7)
CIVIL LAW
Graduation of Damages
DUTY OF THE INJURED PARTY
Art. 2203. The party suffering loss or injury must
exercise the diligence of a good father of a family
to minimize the damages resulting from the act or
omission in question.
PAGE 463
UP LAW BOC
BURDEN OF PROOF
CIVIL LAW
RULES
IN CONTRACTS, QUASI-CONTRACTS
AND QUASI-DELICTS
IN CRIMES
Art. 2204. In crimes, the damages to be
adjudicated may be respectively increased or
lessened according to the aggravating or
mitigating circumstances.
Art. 2215 In contracts, quasi-contracts, and quasidelicts, the court may equitably mitigate the
damages under circumstances other than the case
referred to in the preceding article, as in the
following instances:
(1) That the plaintiff himself has contravened the
terms of the contract;
(2) That the plaintiff has derived some benefit as
a result of the contract;
(3) In cases where exemplary damages are to be
awarded, that the defendant acted upon the
advice of counsel;
(4) That the loss would have resulted in any
event;
(5)
That since the filing of the action, the
defendant has done his best to lessen the
plaintiff's loss or injury.
IN QUASI-DELICTS
Art. 2214. In quasi-delicts, the contributory
negligence of the plaintiff shall reduce the
damages that he may recover.
CONTRIBUTORY NEGLIGENCE
The alleged contributory negligence of the
victim, if any, does not exonerate the accused in
criminal cases committed through reckless
imprudence, since one cannot allege the
negligence of another to evade the effects of his
own negligence. [Genobiagon vs. CA (1989)]
FOR CONTRACTS
PAGE 464
UP LAW BOC
CIVIL LAW
FOR QUASI-DELICTS:
LIQUIDATED DAMAGES
FOR QUASI-CONTRACTS
COMPROMISE
Art. 2031. The courts may mitigate the damages to
be paid by the losing party who has shown a
sincere desire for a compromise.
Miscellaneous Rules
DAMAGES THAT CANNOT COEXIST
NOMINAL WITH OTHER DAMAGES
Art. 2223. The adjudication of nominal damages
shall preclude further contest upon the right
involved and all accessory questions, as between
the parties to the suit, or their respective heirs and
assigns.
PAGE 465
UP LAW BOC
DAMAGES
EXIST
THAT
MUST
CO-
EXEMPLARY
WITH
MORAL,
TEMPERATE,
LIQUIDATED
OR
COMPENSATORY
There is no basis for awarding exemplary
damages either, because this species of
damages is only allowed in addition to moral,
temperate, liquidated, or compensatory
damages, none of which have been allowed in
this case, for reasons herein before discussed.
[Francisco vs. GSIS (1963)]
There was, therefore, no legal basis for the
award of exemplary damages since the private
respondent was not entitled to moral,
temperate, or compensatory damages and
there was no agreement on stipulated
damages. [Scott Consultants & Resource
Development Corp. vs. CA (1995)]
PAGE 466
CIVIL LAW