Civil Law

PROPERTY LAW

Is that independent right of a person to the exclusive enjoyment and

control of the thing including its disposition and recovery subject
Ownership
only to the restrictions or limitations established by law and rights of
others

There is co-ownership whenever the ownership of an undivided thing

Co-Ownership
or right belongs to different persons.

Possession Is the holding of a thing or the enjoyment of a right.

Gives a right to enjoy the property of another with the obligation of

Usufruct preserving its form and substance, unless the title constituting it or
the law otherwise provides.

An easement or servitude is an encumbrance imposed upon an

immovable for the benefit of another immovable belonging to a
different owner.

Easement
A real right constituted on the immovable property of another by
virtue of which, the latter has to refrain from doing or must allow
something to be done on his property for the benefit of another
person or tenement.

Is any act, omission, establishment, condition of property, or anything

else which:

1. Injures or endangers the health or safety of others; or

Nuisance 2. Annoys or offends the senses; or
3. Shocks, defies or disregards decency or morality; or
4. Obstructs or interferes with the free passage of any public
highway or street, or any body of water
5. Hinders or impairs the use of property

Affects a community or neighborhood or any considerable number of

Public Nuisance persons, although the extent of the annoyance, danger, or damage
upon individuals may be unequal.

It is a mode of acquiring ownership by the seizure of corporeal things

that have no owner, with the intention of acquiring them, and
according to the rules laid down by law.
Occupation
Things appropriable by nature which are without an owner, such as
animals that are the object of hunting and fishing, hidden treasure
and abandoned movables, are acquired by occupation.

Is an act of liberality whereby a person disposes gratuitously of a

Donation
thing or right in favor of another, who accepts it.

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SUCCESSION

Succession is a mode of acquisition by virtue of which the property,

rights and obligations to the extent of the value of the inheritance, of
Succession
a person are transmitted through his death to another or others
either by his will or by operation of law.

A will is an act whereby a person is permitted, with the formalities

Will prescribed by law, to control to a certain degree the disposition of
this estate, to take effect after his death.

To be of sound mind, it is not necessary that the testator be in full

possession of all his reasoning faculties, or that his mind be wholly
unbroken, unimpaired, or unshattered by disease, injury or other
cause.
Sound Mind

It shall be sufficient if the testator was able at the time of making the
will to know the nature of the estate to be disposed of, the proper
objects of his bounty, and the character of the testamentary act.

It is an act of the mind, terminating the potential capacity of the will

Revocation to operate at the death of the testator, manifested by some outward
or visible act or sign, symbolic thereof.

No will shall pass either real or personal property unless it is proved

and allowed in accordance with the Rules of Court.

Probate The testator himself may, during his lifetime, petition the court having
jurisdiction for the allowance of his will. In such case, the pertinent
provisions of the Rules of Court for the allowance of wills after the
testator's a death shall govern.

Institution of heir is an act by virtue of which a testator designates in

Institution of Heir his will the person or persons who are to succeed him in his property
and transmissible rights and obligations.

The preterition or omission of one, some, or all of the compulsory

heirs in the direct line, whether living at the time of the execution of
the will or born after the death of the testator, shall annul the
institution of heir; but the devises and legacies shall be valid insofar
Preterition as they are not inofficious.

If the omitted compulsory heirs should die before the testator, the
institution shall be effectual, without prejudice to the right of
representation.

Substitution is the appointment of another heir so that he may enter

Substitution
into the inheritance in default of the heir originally instituted.

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A fideicommissary substitution by virtue of which the fiduciary or first

heir instituted is entrusted with the obligation to preserve and to
transmit to a second heir the whole or part of the inheritance, shall
Fideicommissary
be valid and shall take effect, provided such substitution does not go
Substitution
beyond one degree from the heir originally instituted, and provided
further, that the fiduciary or first heir and the second heir are living at
the time of the death of the testator.

Legitime is that part of the testator's property which he cannot

Legitime dispose of because the law has reserved it for certain heirs who are,
therefore, called compulsory heirs.

The ascendant who inherits from his descendant any property which
the latter may have acquired by gratuitous title from another
ascendant, or a brother or sister, is obliged to reserve such property
Reserva Troncal
as he may have acquired by operation of law for the benefit of
relatives who are within the third degree and who belong to the line
from which said property came.

A compulsory heir may, in consequence of disinheritance, be

deprived of his legitime, for causes expressly stated by law.
Disinheritance
Disinheritance can be effected only through a will wherein the legal
cause therefor shall be specified.

Legal or intestate succession takes place:

1. If a person dies without a will, or with a void will, or one which
has subsequently lost its validity;
2. When the will does not institute an heir to, or dispose of all the
property belonging to the testator. In such case, legal succession
shall take place only with respect to the property of which the
Legal or Intestate
testator has not disposed;
Succession
3. If the suspensive condition attached to the institution of heir does
not happen or is not fulfilled, or if the heir dies before the
testator, or repudiates the inheritance, there being no
substitution, and no right of accretion takes place;
4. When the heir instituted is incapable of succeeding, except in
cases provided in this Code.

Representation is a right created by fiction of law, by virtue of which

the representative is raised to the place and the degree of the
Representation
person represented, and acquires the rights which the latter would
have if he were living or if he could have inherited.

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Accretion is a right by virtue of which, when two or more persons are

called to the same inheritance, devise or legacy, the part assigned to
Accretion the one who renounces or cannot receive his share, or who died
before the testator, is added or incorporated to that of his co-heirs,
co-devisees, or co-legatees.

The act by virtue of which an heir, legatee, or devisee manifests his

Acceptance of
desire in accordance with the formalities prescribed by law to
Inheritance
succeed to the inheritance, legacy, or devise.

The act by virtue of which an heir, legatee, or devisee manifests his

Repudiation of
desire in accordance with the formalities prescribed by law NOT to
Inheritance
succeed to the inheritance, legacy, or devise.

Every compulsory heir, who succeeds with other compulsory heirs,

must bring into the mass of the estate any property or right which he
may have received from the decedent, during the lifetime of the
Collation
latter, by way of donation, or any other gratuitous title, in order that it
may be computed in the determination of the legitime of each heir,
and in the account of the partition.

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PRESCRIPTION

By prescription, one acquires ownership and other real rights through

the lapse of time in the manner and under the conditions laid down
Prescription by law.

In the same way, rights and conditions are lost by prescription.

O r d i n a r y
Ordinary acquisitive prescription requires possession of things in
Acquisitive
good faith and with just title for the time fixed by law.
Prescriprion

E x t r a o r d i n a r y Ownership and other real rights over immovables also prescribe

A c q u i s i t i v e through uninterrupted adverse possession thereof for thirty years,
Prescription without need of title or of good faith.

In the computation of time necessary for prescription the following

rules shall be observed:

1. The present possessor may complete the period necessary for

Ta c k i n g of prescription by tacking his possession to that of his grantor or
Possession predecessor in interest;
2. It is presumed that the present possessor who was also the
possessor at a previous time, has continued to be in possession
during the intervening time, unless there is proof to the contrary;
3. The first day shall be excluded and the last day included.

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OBLIGATIONS

An obligation is a juridical necessity to give, to do or not to do.

Obligations arise from:

1. Law;
Obligations
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts.

Every obligation whose performance does not depend upon a future

Pure Obligation or uncertain event, or upon a past event unknown to the parties, is
demandable at once.

In conditional obligations, the acquisition of rights, as well as the

Conditional
extinguishment or loss of those already acquired, shall depend upon
Obligation
the happening of the event which constitutes the condition

The power to rescind obligations is implied in reciprocal ones, in

case one of the obligors should not comply with what is incumbent
upon him.

Judicial Rescission
The injured party may choose between the fulfillment and the
rescission of the obligation, with the payment of damages in either
case. He may also seek rescission, even after he has chosen
fulfillment, if the latter should become impossible.

Obligation with a Obligations for whose fulfillment a day certain has been fixed, shall
Period be demandable only when that day comes.

A person alternatively bound by different prestations shall

Alternative
completely perform one of them. The creditor cannot be compelled
Obligation
to receive part of one and part of the other undertaking.

The concurrence of two or more creditors or of two or more debtors

in one and the same obligation does not imply that each one of the
Joint Obligation
former has a right to demand, or that each one of the latter is bound
to render, entire compliance with the prestation.

There is a solidary liability only when the obligation expressly so

S o l i d a r y
states, or when the law or the nature of the obligation requires
Obligation
solidarity.

In obligations with a penal clause, the penalty shall substitute the

indemnity for damages and the payment of interests in case of
Obligations with a
noncompliance, if there is no stipulation to the contrary.
Penal Clause
Nevertheless, damages shall be paid if the obligor refuses to pay the
penalty or is guilty of fraud in the fulfillment of the obligation.

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Payment means not only delivery of money but also the

Payment
performance, in any other manner, of an obligation

Requisites:
Completeness of
1. The very thing or service contemplated must be paid
Payment
2. Fulfillment must be complete

Dacion en Pago or dation in payment is the delivery and transmission

of ownership of another thing by the debtor to the creditor as an
accepted equivalent of performance of an obligation. It partakes of
Dacion en Pago
the nature of a contract of sale, where the thing offered by the
debtor is the object of the contract, while the debt is the
consideration or purchase price.

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.

The delivery of promissory notes payable to order, or bills of

Payment of Debts exchange or other mercantile documents shall produce the effect of
payment only when they have been cashed, or when through the
fault of the creditor they have been impaired.

In the meantime, the action derived from the original obligation shall
be held in the abeyance

Consignation shall be made by depositing the things due at the

disposal of judicial authority, before whom the tender of payment
shall be proved, in a proper case, and the announcement of the
Consignation consignation in other cases.

The consignation having been made, the interested parties shall also
be notified thereof.

Compensation shall take place when two persons, in their own right,
Compensation
are creditors and debtors of each other.

Condonation or remission is essentially gratuitous, and requires the

acceptance by the obligor. It may be made expressly or impliedly.

Condonation
One and the other kind shall be subject to the rules which govern
inofficious donations. Express condonation shall, furthermore,
comply with the forms of donation.

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CONTRACT

A contract is a meeting of minds between two persons whereby one

Contract binds himself, with respect to the other, to give something or to
render some service

The contracting parties may establish such stipulations, clauses,

Autonomy of a terms and conditions as they may deem convenient, provided they
Contract are not contrary to law, morals, good customs, public order, or public
policy.

N o m i n a t e Nominate contracts are those which have their own distinctive

Contracts individuality and are regulated by special provision of the law.

Innominate contracts shall be regulated by the stipulations of the

I n n o m i n a t e parties, by the provisions of Titles I and II of this Book, by the rules
Contracts governing the most analogous nominate contracts, and by the
customs of the place.

M u t u a l i t y o f The contract must bind both contracting parties; its validity or

Contracts compliance cannot be left to the will of one of them

Contracts take effect only between the parties, their assigns and
heirs, except in case where the rights and obligations arising from the
Relativity of
contract are not transmissible by their nature, or by stipulation or by
Contracts
provision of law. The heir is not liable beyond the value of the
property he received from the decedent.

If a contract should contain some stipulation in favor of a third

person, he may demand its fulfillment provided he communicated his
Stipulation Pour acceptance to the obligor before its revocation. A mere incidental
Autrui benefit or interest of a person is not sufficient. The contracting
parties must have clearly and deliberately conferred a favor upon a
third person.

Contracts are perfected by mere consent, and from that moment the
parties are bound not only to the fulfillment of what has been
Consensuality of
expressly stipulated but also to all the consequences which,
Contracts
according to their nature, may be in keeping with good faith, usage
and law.

Real contracts, such as deposit, pledge and commodatum, are not

Real Contracts
perfected until the delivery of the object of the obligation

Breach of contract is defined as the "failure without legal reason to

comply with the terms of a contract." It is also defined as the failure,
Breach of Contract
without legal excuse, to perform any promise which forms the whole
or part of the contract.

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Consent is manifested by the meeting of the offer and the

acceptance upon the thing and the cause which are to constitute the
Consent
contract. The offer must be certain and the acceptance absolute. A
qualified acceptance constitutes a counter-offer.

When the offerer has allowed the offeree a certain period to accept,
the offer may be withdrawn at any time before acceptance by
communicating such withdrawal, except when the option is founded
upon a consideration, as something paid or promised.
Option Contract
An option is a contract granting a privilege to buy or sell within an
agreed time and at a determined price. It is a separate and distinct
contract from that which the parties may enter into upon the
consummation of the option.

In onerous contracts the cause is understood to be, for each

Onerous Contract contracting party, the prestation or promise of a thing or service by
the other

R e m u n e r a t o r y The service or benefit which is remunerated; and in contracts of pure

Contract beneficence, the mere liberality of the benefactor.

Contracts shall be obligatory, in whatever form they may have been

entered into, provided all the essential requisites for their validity are
present. However, when the law requires that a contract be in some
Forms of Contracts form in order that it may be valid or enforceable, or that a contract
be proved in a certain way, that requirement is absolute and
indispensable. In such cases, the right of the parties stated in the
following article cannot be exercised.

1. Those which are entered into by guardians whenever the wards

whom they represent suffer lesion by more than one-fourth of the
value of the things which are the object thereof;
2. Those agreed upon in representation of absentees, if the latter
suffer the lesion stated in the preceding number;
R e s c i s s i b l e 3. Those undertaken in fraud of creditors when the latter cannot in
Contract any other manner collect the claims due them;
4. Those which refer to things under litigation if they have been
entered into by the defendant without the knowledge and
approval of the litigants or of competent judicial authority;
5. All other contracts specially declared by law to be subject to
rescission.

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The following contracts are voidable or annullable, even though

there may have been no damage to the contracting parties:

1. Those where one of the parties is incapable of giving consent to

a contract;
Voidable Contracts
2. Those where the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud.

These contracts are binding, unless they are annulled by a proper

action in court. They are susceptible of ratification.

The following contracts are unenforceable, unless they are ratified:

1. Those entered into in the name of another person by one who

has been given no authority or legal representation, or who has
acted beyond his powers;
2. Those that do not 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
Unenforceable
than a mutual promise to marry;
Contracts
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;
e. An agreement of the leasing for a longer period than one
year, or for the sale of real property or of an interest
therein;
f. A representation as to the credit of a third person.
(3) Those where both parties are incapable of giving consent to a
contract.

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Void contracts cannot be ratified and are imprescriptible

1. Those whose cause, object or purpose is contrary to law, morals,

good customs, public order or public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or object did not exist at the time of the
Void Contracts
transaction;
4. Those whose object is outside the commerce of men;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to the principal
object of the contract cannot be ascertained;
7. Those expressly prohibited or declared void by law.

NATURAL OBLIGATION

Civil Obligation Civil obligations give a right of action to compel their performance.

Natural obligations, not being based on positive law but on equity

and natural law, do not grant a right of action to enforce their
performance, but after voluntary fulfillment by the obligor, they
Natural Obligation
authorize the retention of what has been delivered or rendered by
reason thereof. Some natural obligations are set forth in the following
articles.

ESTOPPEL

Through estoppel an admission or representation is rendered

Estoppel conclusive upon the person making it, and cannot be denied or
disproved as against the person relying thereon.

The principle of estoppel in pais  applies wherein one, by his acts,

representations or admissions, or by his own silence when he ought
to speak out, intentionally or through culpable negligence, induces
Estoppel in Pais
another to believe certain facts to exist and such other rightfully
relies and acts on such belief, so that he will be prejudiced if the
former is permitted to deny the existence of such facts.

It occurs when the party to a deed and his privies are precluded from
Estoppel by Deed denying any material fact stated in the said deed as against the other
party and his privies

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TRUSTS

Express trusts are created by the intention of the trustor or of the

parties.

No express trusts concerning an immovable or any interest therein

may be proved by parol evidence.
Express Trust

The action to compel the trustee to convey the property registered in

his name for the benefits of the beneficiary does not prescribe. If at
all, it is only when the trustee repudiates the trust that the period of
prescription commences to run.

There is an implied trust when property is sold, and the legal estate is
granted to one party but the price is paid by another for the purpose
I m p l i e d Tr u s t ;
of having the beneficial interest of the property. The former is the
Purchase of
trustee, while the latter is the beneficiary.
p ro p e r t y w h e re
title is not given to
However, if the person to whom the title is conveyed is a child,
payer but to
legitimate or illegitimate, of the one paying the price of the sale, no
another
trust is implied by law, it being disputably presumed that there is a
gift in favor of the child.

I m p l i e d Tr u s t ;
When land passes by succession to any person and he causes the
When title to
legal title to be put in the name of another, a trust is established by
inherited land is
implication of law for the benefit of the true owner.
n o t i n o w n e r ’s
name

I m p l i e d Tr u s t ;
When property is conveyed to a person in reliance upon his declared
When there is
intention to hold it for, or transfer it to another or the grantor, there is
declared intention
an implied trust in favor of the person whose benefit is
to hold or transfer
contemplated.
the property

I m p l i e d Tr u s t ;
If property is acquired through mistake or fraud, the person obtaining
Property acquired
it is, by force of law, considered a trustee of an implied trust for the
through mistake or
benefit of the person from whom the property comes.
fraud

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SALES

By the contract of sale one of the contracting parties obligates

himself to transfer the ownership and to deliver a determinate thing,
Contract of Sale
and the other to pay therefor a price certain in money or its
equivalent.

One which no conditions attached and there is a transfer of

ownership upon delivery of the thing subject of the sale
Contract of
Absolute Sale The seller does not reserve his title over the thing sold and thus,
upon delivery of the thing, ownership passes regardless of whether
or not the buyer has paid.

Condition(s) is/are imposed by the seller before the ownership will

pass. Normally, the condition is full payment of the purchase price.
Contract of
Conditional Sale In a contract of conditional sale, ownership automatically passes to
the buyer the moment the condition happens (the moment the full
price is paid). There is no need to enter into another contract.

In a contract to sell, ownership is not automatically transferred to the

buyer upon fulfillment of suspensive condition (ex: full payment of
the price)
Contract to Sell
When the price has been fully paid, the seller is obliged to convey
title to the prospective buyer by entering into a contract of absolute
sale.

he contract of sale is perfected at the moment there is a meeting of

minds upon the thing which is the object of the contract and upon
the price.
Consensual
From that moment, the parties may reciprocally demand
performance, subject to the provisions of the law governing the form
of contracts.

An accepted unilateral promise to buy or to sell a determinate thing

for a price certain is binding upon the promissor if the promise is
supported by a consideration distinct from the price.

An option contract is a contract granting a person the privilege to

Option Contract
buy or not to buy certain objects at any time within the agreed
period at a fixed price. The contract of option is separate and distinct
contract from the contract which the parties may enter into upon the
consummation of the contract, therefore an option must have its own
cause or consideration.

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Whenever earnest money is given in a contract of sale, it shall be

Earnest Money considered as part of the price and as proof of the perfection of the
contract.

In a contract of sale of personal property the price of which is

payable in installments, the vendor may exercise any of the following
remedies:

1. Exact fulfillment of the obligation, should the vendee fail to pay;

Sale o n 2. Cancel the sale, should the vendee's failure to pay cover two or
Installments - more installments;
Movables 3. Foreclose the chattel mortgage on the thing sold, if one has been
constituted, should the vendee's failure to pay cover two or more
installments. In this case, he shall have no further action against
the purchaser to recover any unpaid balance of the price.

Any agreement to the contrary shall be void.

In all transactions or contracts involving the sale or financing of real

estate on installment payments, including residential condominium
apartments but excluding industrial lots, commercial buildings and
sales to tenants under Republic Act 3844, as amended by Republic
Act 6399, where the buyer has paid at least two years of installments,
the buyer is entitled to the following rights in case he defaults in the
payment of succeeding installments:

1. To pay, without additional interest, the unpaid installments due

within the total grace period earned by him which is hereby fixed
Sale on Installment at the rate of one month grace period for every one year of
- Immovable; installment payments made: Provided, That this right shall be
exercised by the buyer only once in every five years of the life of
Maceda Law; The the contract and its extensions, if any.
Realty Installment 2. If the contract is canceled, the seller shall refund to the buyer the
Buyer Protection cash surrender value of the payments on the property equivalent
Act to fifty per cent of the total payments made, and, after five years
of installments, an additional five per cent every year but not to
exceed ninety per cent of the total payments made: Provided,
That the actual cancellation of the contract shall take place after
thirty days from receipt by the buyer of the notice of cancellation
or the demand for rescission of the contract by a notarial act and
upon full payment of the cash surrender value to the buyer.

Down payments, deposits or options on the contract shall be

included in the computation of the total number of installment
payments made.

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In case where less than two years of installments were paid, the seller
Sale on Installment
shall give the buyer a grace period of not less than sixty days from
- Immovable;
the date the installment became due.

Maceda Law; The

If the buyer fails to pay the installments due at the expiration of the
Realty Installment
grace period, the seller may cancel the contract after thirty days from
Buyer Protection
receipt by the buyer of the notice of cancellation or the demand for
Act
rescission of the contract by a notarial act.

Unless otherwise agreed, the goods remain at the seller's risk until
the ownership therein is transferred to the buyer, but when the
ownership therein is transferred to the buyer the goods are at the
buyer's risk whether actual delivery has been made or not, except
that:

1. Where delivery of the goods has been made to the buyer or to a

Res Perit Domino bailee for the buyer, in pursuance of the contract and the
ownership in the goods has been retained by the seller merely to
secure performance by the buyer of his obligations under the
contract, the goods are at the buyer's risk from the time of such
delivery;
2. Where actual delivery has been delayed through the fault of
either the buyer or seller the goods are at the risk of the party in
fault.

If the same thing should have been sold to different vendees, the
ownership shall be transferred to the person who may have first
taken possession thereof in good faith, if it should be movable
property.

Should it be immovable property, the ownership shall belong to the

Double Sales person acquiring it who in good faith first recorded it in the Registry
of Property.

Should there be no inscription, the ownership shall pertain to the

person who in good faith was first in the possession; and, in the
absence thereof, to the person who presents the oldest title,
provided there is good faith.

Conventional redemption shall take place when the vendor reserves

C o n v e n t i o n a l the right to repurchase the thing sold, with the obligation to comply
Redemption with the provisions of Article 1616 and other stipulations which may
have been agreed upon.

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One that lacks the proper formalities, or other requisites prescribed by

E q u i t a b l e law for a mortgage, but shows the intention of the parties to make the
Mortgage property subject of the contract as security for a debt, and contains
nothing impossible or contrary to law.

The contract shall be presumed to be an equitable mortgage, in any of

the following cases:

1. When the price of a sale with right to repurchase is unusually

inadequate;
2. When the vendor remains in possession as lessee or otherwise;
Presumption of
3. When upon or after the expiration of the right to repurchase another
E q u i t a b l e
instrument extending the period of redemption or granting a new
Mortgage
period is executed;
4. When the purchaser retains for himself a part of the purchase price;
5. When the vendor binds himself to pay the taxes on the thing sold;
6. In any other case where it may be fairly inferred that the real
intention of the parties is that the transaction shall secure the
payment of a debt or the performance of any other obligation.

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.

Legal Redemption The right of legal pre-emption or redemption shall not be exercised
except within thirty days from the notice in writing by the prospective
vendor, or by the vendor, as the case may be. The deed of sale shall not
be recorded in the Registry of Property, unless accompanied by an
affidavit of the vendor that he has given written notice thereof to all
possible redemptioners.

A co-owner of a thing may exercise the right of redemption in case the

shares of all the other co-owners or of any of them, are sold to a third
person. If the price of the alienation is grossly excessive, the
redemptioner shall pay only a reasonable one.

Should two or more co-owners desire to exercise the right of

Sale of Co-owner of
redemption, they may only do so in proportion to the share they may
his Share to a
respectively have in the thing owned in common.
Stranger

1. Sale must be before partition

2. Vendee must be reimbursed of the price of the sale
3. Alienation of all or any shares of co-owner
4. Co-ownership is still subsisting
5. Sale was made to a stranger

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BARTER

By the contract of barter or exchange one of the parties binds

Barter himself to give one thing in consideration of the other's promise to
give another thing.

LEASE

A contract of lease is a consensual, bilateral, onerous, and

commutative contract by virtue of which one person binds himself
grant temporarily the use of a thing or to render some service to
Lease another who undertakes to pay some rent.

It is not essentially personal in character, hence, the right is

transmissible to the heirs.

That which arises if at the end of the contract, the lessee should
I m p l i e d N e w continue enjoying the thing leased for 15 days with the acquiescence
Lease of the lessor, unless of course a notice to the contrary had previously
been given by either party.

PARTNERSHIP

By the contract of partnership two or more persons bind themselves

to contribute money, property, or industry to a common fund, with
the intention of dividing the profits among themselves.
Partnership

Two or more persons may also form a partnership for the exercise of
a profession.

Every partner is an agent of the partnership for the purpose of its

business, and the act of every partner, including the execution in the
partnership name of any instrument, for apparently carrying on in the
usual way the business of the partnership of which he is a member
Partnership is a binds the partnership, unless the partner so acting has in fact no
contract of Mutual authority to act for the partnership in the particular matter, and the
Agency person with whom he is dealing has knowledge of the fact that he
has no such authority.

Each partner acts as a principal on his own behalf, and as an agent

for his co-partners or the firm.

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AGENCY

Agency By the contract of agency a person binds himself to render some

service or to do something in representation or on behalf of another,
with the consent or authority of the latter.

Elements o f 1. There is consent, express or implied, of the parties to establish

the relationship of agency
2. The object is the execution of a juridical act in relation to a third
person
3. The agent acts as a representative and not for himself
4. The agent acts within the scope of his authority

Contract o f 1. The agent receives the goods of the principal

2. He delivers the proceeds of the sale
3. He can return the object in case he is unable to sell the same
4. He is bound to act according to the instructions of his principal

G u a r a n t e e It is merely an additional compensation for risks of collection.

Should a commission agent receive on sale, in addition to ordinary

commission, a guarantee commission,
1. He shall bear the risk of collection
2. Shall pay the principal the proceeds of the sale on the
same terms agreed upon with the purchaser

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COMMODATUM

It is a contract where one of the contracting parties delivers to

another a non-consumable thing so that the other may use the same
for a certain time and return it.

Object: Non-consumable (General Rule)

Commodatum Cause: Essentially gratuitous
Purpose: Use
Ownership: Bailor retains (Bailor need not the owner)
Thing to be Returned: Same thing loaned
Risk of Loss: Bailor bears the loss
Purely Personal in Character

An accepted promise to deliver something by way of commodatum

P e r f e c t i o n o f or simple loan is binding upon parties, but the commodatum or
Commodatum simple loan itself shall not be perfected until the delivery of the
object of the contract

MUTUUM

A person who receives a loan of money or any other fungible thing

acquires the ownership thereof, and is bound to pay to the creditor
an equal amount of the same kind and quality.

Object: Consumable
Mutuum
Cause: May or may not be gratuitous
(Simple Loan)
Purpose: Consumption
Ownership: Passes to the debtor
Thing to be Returned: Equal amount of same kind and quality
Risk of Loss: Bailee bears the loss
Not purely personal in character

Demandability of No interest shall be due unless it has been expressly stipulated in

Interest writing.

Increases unilaterally imposed by a bank is in violation of the

principle of mutuality as embodied in Article 1308 of the Civil Code.
It would completely take away from one party (borrower) the right to
Escalation Clause assent to an important modification in their agreement with the
character of adhesion where the parties do not bargain on equal
footing, the weaker party’s participation being reduced to the
alternative to “take it or leave it”.

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DEPOSIT

Deposit A deposit is constituted from the moment a person receives a thing

belonging to another, with the obligation of safely keeping it and of
returning the same. If the safekeeping of the thing delivered is not
the principal purpose of the contract, there is no deposit but some
other contract.

Purpose: Safekeeping
Time of Return: At any time
Subject Matter: Movable or corporeal things only for EJ deposit; any
property in case of judicial deposit
Compensation: May be gratuitous
Ownership: Depositor retains ownership
Nature: Real contract; perfected upon delivery to depositary
Consideration: Generally gratuitous

Voluntary Deposit A voluntary deposit is that wherein the delivery is made by the will of
the depositor. A deposit may also be made by two or more persons
each of whom believes himself entitled to the thing deposited with a
third person, who shall deliver it in a proper case to the one to whom
it belongs.

Necessary Deposit A deposit is necessary:

1. When it is made in compliance with a legal obligation;

2. When it takes place on the occasion of any calamity, such as fire,
storm, flood, pillage, shipwreck, or other similar events.

Judicial Deposit ot A judicial deposit or sequestration takes place when an attachment

Sequestration or seizure of property in litigation is ordered.

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GUARANTY

By guaranty a person, called the guarantor, binds himself to the

creditor to fulfill the obligation of the principal debtor in case the
latter should fail to do so.

Guaranty
Guarantor is:
1. Subsidiary liable
2. Pays if the debtor cannot pay
3. Insurer of the solvency

If a person binds himself solidarily with the principal debtor, the

provisions of Section 4, Chapter 3, Title I of this Book shall be
observed. In such case the contract is called a suretyship.

Suretyship
Surety is:
1. Primarily liable
2. Pays if the debtor does not (want to) pay
3. Insurer of the debt

G u a r a n t o r ’ s The guarantor cannot be compelled to pay the creditor unless the

Benefit o f latter has exhausted all the property of the debtor, and has resorted
Excussion to all the legal remedies against the debtor.

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MORTGAGE

1. Constituted to secure a principal obligation

2. Pledgor must be the absolute owner
3. Pledgor must have the free disposal of the movable thing
Pledge
4. When the principal obligation becomes due, thing pledged may
be alienated to satisfy payment of such obligation
5. Thing pledged must be placed in the possession of the pledgee

1. Constituted to secure a principal obligation in a manner

prescribed by law
2. Mortgagor must be the absolute owner of the property
mortgaged
3. Mortgagor must have the free disposal of the property
Real Estate
mortgaged, or legally authorized to do so (with SPA)
Mortgage
4. When the principal obligation becomes due, the property
mortgaged may be alienated to satisfy payment of such
obligation
5. The subject matter of the contract must be an immovable
property or alienable real rights upon immovable

A c c e s s o r y Pledge and mortgage are accessory contracts constituted to secure

Contracts fulfillment of a principal obligation

The creditor cannot appropriate the things given by way of pledge or

mortgage, or dispose of them. Any stipulation to the contrary is null
and void.

P a c t u m Pactum Commissorium takes place when in a mortgage contract or in

Commissorium a contract of pledge, it is stipulated that the ownership of the
property would automatically pass to the vendee in case no
redemption is made within a given period, thus enabling the
mortgagee/pledgee to acquire the mortgaged property without the
need of foreclosure.

The mortgagor has the right to redeem the mortgaged property after
his default in the performance of the conditions of the mortgage but
Equity o f before the sale of the mortgaged property and the confirmation of
Redemption the sale.

Applies to judicial foreclosure of real mortgage and chattel mortgage

Right of
The mortgagor has the right to redeem the mortgaged property
Redemption in
within one year from the date of registration of the certificate of sale.
Extrajudicial
Foreclosure of
Applies only to extrajudicial foreclosure of real estate mortgage
Mortgage

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EXTRA CONTRACTUAL OBLIGATIONS

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
Negotiorum
substitute him, if the owner is in a position to do so. This juridical
Gestio
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.

If something is received when there is no right to demand it, and it

Solutio Indebiti was unduly delivered through mistake, the obligation to return it
arises.

Whoever by act or omission causes damage to another, there being

fault or negligence, is obliged to pay for the damage done. Such
Quasi-Delict fault or negligence, if there is no pre-existing contractual relation
between the parties, is called a quasi-delict and is governed by the
provisions of this Chapter.

It is that liability which arises by virtue of the presumption of

negligence on the part of persons made responsible under Article
Vicarious Liability
2180, derived from their failure to exercise due care and vigilance
over acts or subordinates to prevent them from causing damage.

The test of negligence is the same whether the act or omission in

Te s t o f question is that of the defendant or the contributory negligence of
C o n t r i b u t o r y the plaintiff. The test is also foreseeability. There is contributory
Negligence negligence when the party’s act showed lack of ordinary care and
foresight that such act could cause him harm or put his life in danger.

If the master is injured by the negligence of a third person and by the

concurring contributory negligence of his own servant or agent, the
I m p u t e d
latter’s negligence is imputed to his superior and will defeat the
Contributory
superior’s action against the third person, assuming of course that
Negligence
the contributory negligence was the proximate cause of the injury of
which complaint is made.

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Proximate cause is defined as 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. And more comprehensively, the proximate legal cause is
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
Proximate Cause
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.

While negligence is not ordinarily inferred or presumed, and while

the mere happening of an accident or injury will not generally give
rise to an inference or presumption that it was due to negligence on
defendant’s part, under the doctrine of res ipsa loquitur, which
means, literally, the thing or transaction speaks for itself, or in one
Res Ipsa Loquitur
jurisdiction, that the thing or instrumentality speaks for itself, the facts
or circumstances accompanying an injury may be such as to raise a
presumption, or at least permit an inference of negligence on the
part of the defendant, or some other person who is charged with
negligence.

The operating surgeon is the person in complete charge of the

Captain of the
surgery room and all personnel connected with the operation. Their
Ship Doctrine
duty is to obey his orders.

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LAND, TITLES, AND DEEDS

The decree of registration shall bind the land and quiet title thereto,
subject only to such exceptions or liens as may be provided by law. It
Conclusiveness of
shall be conclusive upon and against all persons, including the
Decree of
National Government and all branches thereof, whether mentioned
Registration
by name in the application or notice, the same being included in the
general description "To all whom it may concern".

Elements for the

1. That the petitioner has a real or dominical right
Allowance of the
2. That he has been deprived thereof through actual fraud
Review of a
3. That the petition is filed within one year from the date of entry of
Decree of
the decree
Registration;
4. That the property has not yet been transferred to an innocent
Equitable Remedy
purchaser for value
of Reconveyance

Although a review of the decree of registration is no longer possible

after the one-year period from its entry expires, still available is an
equitable remedy to compel the reconveyance of property to those
who may have been wrongfully deprived of it.

For an action for reconveyance to prosper, the property should not

have passed into the hands of an innocent purchaser for value. If the
Reconveyance property is already in the hands of an innocent purchaser for value,
the remedy of the defrauded party is to bring an action for damages
against those who caused the fraud or were instrumental in
depriving him of the property.

Based on Fraud: 4 years from discovery of fraud

Based on Implied or Constructive Trust: 10 years from the date of the
OCT or TCT

Every person receiving a certificate of title in pursuance to a decree of

registration, and every subsequent purchaser of registered land who
takes a certificate of title for value in good faith shall hold the same free
of all encumbrances except those noted in said certificate and subsisting
encumbrances.

Protection of
All persons dealing with property covered by Torrens certificate of title
Innocent Third
are not required to go beyond what appears on the face of the title.
Persons

Yet a purchaser cannot close his eyes to facts which should put a
reasonable man upon his guard, and then claims that he acted in good
faith under the belief that there was no defect in the title of the vendor.
His refusal to believe that such facts exist will not make him an innocent
purchaser for value.

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A person dealing with registered land may safely rely on the

Mirror Principle of correctness of the certificate of title and the law will not in any way
the Torrens System oblige him to go behind the certificate to determine the condition of
of Registration the property in search for any hidden defect which may later
invalidate or diminish his right to the land.

Torrens Title is No title to registered land in derogation of the title of the registered
Imprescriptible owner shall be acquired by prescription or adverse possession.

C e r t i f i c a t e N o t A certificate of title shall not be subject to collateral attack. It cannot

Subject t o be altered, modified, or canceled except in a direct proceeding in
Collateral Attack accordance with law.

The attack is considered direct when the object of an action is to

annul or set aside such proceeding, or enjoin its enforcement.
Direct Attack vis-a- Conversely, an attack is indirect or collateral when, in an action to
v i s C o l l a t e r a l obtain a different relief, an attack on the proceeding is nevertheless
Attack made as an incident thereof. Such action to attack a certificate of title
may be an original action or a counterclaim, in which a certificate of
title is assailed as void.

The act of registration shall be the operative act that conveys or

Act of Registration
affects the land insofar as third persons are concerned.

In all cases of registration procured by fraud, the owner may pursue

all his legal and equitable remedies against the parties to such fraud
without prejudice, however, to the rights of any innocent holder for
Forged Deed is a
value of a certificate of title. After the entry of the decree of
NULLITY and
registration on the original petition or application, any subsequent
conveys no title
registration procured by the presentation of a forged duplicate
certificate of title, or a forged deed or other instrument, shall be null
and void.

Deeds and instruments filed before the Register of Deeds for entry in
its Primary Entry Book shall be regarded as registered from the time
Primary Entry Book
so noted, and the memorandum of each instrument, when made on
the Certificate of Title to which it refers, shall bear the same date.

Annotation of a lis pendens is proper on the following actions:

1. To recover possession of real estate

Notice of Lis
2. To quiet title or remove cloud upon a title
Pendens
3. For partition
4. Other proceedings of any kind in court directly affecting the title
to land or the use or occupation thereof or buildings thereon.

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Before final judgment, a notice of lis pendens may be canceled upon

order of the court, after proper showing that the notice is for the
Cancellation of
purpose of molesting the adverse party, or that it is not necessary to
Notice of Lis
protect the rights of the party who caused it to be registered. It may
Pendens
also be canceled by the Register of Deeds upon verified petition of
the party who caused the registration thereof.

The adverse claim shall be effective for a period of thirty days from
the date of registration. After the lapse of said period, the annotation
of adverse claim may be canceled upon filing of a verified petition
therefor by the party in interest

Before the lapse of thirty days aforesaid, any party in interest may file
a petition in the Court of First Instance where the land is situated for
Adverse Claim
the cancellation of the adverse claim, and the court shall grant a
speedy hearing upon the question of the validity of such adverse
claim, and shall render judgment as may be just and equitable.

A notice of adverse claim remains valid even after the lapse of the
30-day period. For as long as there is yet no petition for its
cancellation, the notice of adverse claim remains subsisting.

Amendment and No erasure, alteration, or amendment shall be made upon the

A l t e r a t i o n o f registration books after entry of the certificate of title or of a
Certificates memorandum thereon except by proper order of the court.

The procedure of consulta is a mode of appeal from the denial by

Consulta the Register of Deeds of the registration of the instrument to the
Commissioner of Land Registration.

Properties NOT 1. Inalienable lands of public domain

R E G I S T R A B L E 2. Those prohibited under the Constitution (national parks, mineral
Under the Torrens lands, forest or timber lands and agricultural lands not classified
System as alienable or disposable)

After the filing of the application and before the issuance of the
decree of registration, the land therein described may still be the
subject of dealings in whole or in part, in which case the interested
party shall present to the court the pertinent instruments together
Dealings with Land
with a subdivision plan approved by the Director of Lands in case of
Pending Original
transfer of portions thereof and the court, after notice to the parties,
Registration
shall order such land registered subject to the conveyance or
encumbrance created by said instruments, or order that the decree
of registration be issued in the name of the person to whom the
property has been conveyed by said instruments.

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Courts of First Instance shall have exclusive jurisdiction over all

applications for original registration of title to lands, including
RTC has
improvements and interests therein, and over all petitions filed after
Jurisdiction
original registration of title, with power to hear and determine all
questions arising upon such applications or petitions.

The applicant for original registration based on a claim of exclusive

and continuous possession or occupation must show the existence of
the following:

1. Open, continuous, exclusive, and notorious possession, by

Who may apply themselves or through their predecessors-in-interest
2. The land possessed or occupied must have been declared
alienable and disposable agricultural land of public domain
3. The possession or occupation was under a bona fide claim of
ownership
4. Possession dates back to June 12, 1945 or earlier

JUDICIAL RECONSTITUTION OF CERTIFICATE OF TITLE

A judicial reconstitution proceeding is the restoration of the

reissuance of a new duplicate certificate of title which is supposed to
have been lost or destroyed in its original form or condition.
Nature
A reconstitution proceeding does not pass upon the ownership of
the land covered by the lost or destroyed title. Any change or issue
of ownership of the property must be subject of a separate suit.

To have the title reproduced after proper proceedings in the same

Purpose form they were when the loss or destruction of the land covered by
the lost or destroyed title.

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COMMONWEALTH ACT NO. 141

Free patent is a mode of concession by the government which is

Free Patent
applicable only to agricultural lands.

A decree of registration and the entry of a certificate of title is

Indefeasibility of regarded as an agreement with the land, and binding upon the
Title owner and all successors in title that the land shall be and always
remain registered.

Before one can register his title over a parcel of land, the applicant
must show that:
J u d i c i a l
1. he, by himself or through his predecessors-in-interest, has been in
Confirmation of
open, continuous, exclusive and notorious possession and
Imperfect Title to
occupation of the subject land under a bona fide claim of
Public Agricultural
ownership since June 12, 1945 or earlier; and
Lands
2. the land subject of the application is alienable and disposable
land of the public domain.

All actions for the reversion to the Government of lands of the public
Reconveyance of domain or improvements thereon shall be instituted by the Solicitor-
Public Land General or the officer acting in his stead, in the proper courts, in the
name of the Commonwealth of the Philippines.

The law imposes no requirement that land should have been

declared alienable and disposable agricultural land as early as June
12, 1945.

Therefore, what is important in computing the period of possession is

that the land has already been declared alienable and disposable at
the time of the application for registration.  Upon satisfaction of this
requirement, the computation of the period may include the period
of adverse possession prior to the declaration that land is alienable
and disposable.

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FAMILY CODE

Marriage 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.

Family Home The family home, constituted jointly by the husband and the wife or
by an unmarried head of a family, is the dwelling house where they
and their family reside, and the land on which it is situated.

Filiation The filiation of children may be by nature or by adoption. Natural

filiation may be legitimate or illegitimate

Adoption Adoption is a juridical act that creates between two persons certain
relations purely civil of paternity and filiation.

Support Support comprises everything indispensable for sustenance,

dwelling, clothing, medical attendance, education and
transportation, in keeping with the financial capacity of the family.

The education of the person entitled to be supported referred to in

the preceding paragraph shall include his schooling or training for
some profession, trade or vocation, even beyond the age of majority.

Transportation shall include expenses in going to and from school, or

to and from place of work.

Parental Authority Pursuant to the natural right and duty of parents over the person and
property of their unemancipated children, parental authority and
responsibility shall include the caring for and rearing them for civic
consciousness and efficiency and the development of their moral,
mental and physical character and well-being.

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CONFLICT OF LAWS

Conflict of Laws is that part of the law of each state which determines
whether in dealing with a factual situation involving a foreign
element, the law or the judgment of some other state will be
recognized or applied in the forum. 

Conflict of Laws
The primary function of this department of law is to determined
whether the rules of law or judgments of some other state or states,
and if so, to what extent, should be recognized or applied in the
forum.

A contractual provision whereby a party agrees to the entry of a

judgment against him in a particular court or courts without any
Cognovit
notice or opportunity to present a defense if he should default on his
obligations or otherwise breach the contract.

A legislative exception to the conflict of laws rule holding that a

Borrowing Statute
forum state must apply its own statute of limitations.

Forum non conveniens is a discretionary power that allows courts to

dismiss a case where another court, or forum, is much better suited
to hear the case. This dismissal does not prevent a plaintiff from
refiling his or her case in the more appropriate forum. 

Forum Non
Conveniens It is imperative that the Court should have jurisdiction over the case
prior to exercising the doctrine of forum non conveniens. If the Court
has no jurisdiction over a case involving foreign elements, then the
case should be dismissed on the ground of LACK OF JURISDICTION,
and not on the basis of forum non conveniens.

Ways of Dealing
1. Dismiss the case based on forum non conveniens
with a Conflict
2. Assume jurisdiction and apply either forum law or foreign law
Problem

The phenomenon where different aspects of a case involving a

foreign element may be governed by different systems of laws. 


Depacage Depecage is the process of applying rules of different states on the

basis of the precise issue involved. The doctrine of depecage
involves the separation of issues and the application of a distinct
choice-of-law analysis to each issue.

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The rights and liabilities of the parties with respect to an issue in tort are
determined by the local law of the state which has the most significant
relationship to the occurrence and the parties.

Under the most significant relationship rule, the most significant factors
State of the Most are the parties’ domicile and the location of the tort. A parties’ forum
S i g n i f i c a n t selection clause in any applicable agreement is also a factor a court will
Relationship consider.

In order to determine the most- significant relationship under a choice of

law issue, consideration is given to the policies and interests of the
forum state, the tort state, and of other states that may have an interest
by virtue of the domicile of the parties or other relevant factors.

Relates to the “law of the place of the ceremony” or the law of the
place where a contract is made. The doctrine of lex contractus or lex
loci contractusmeans the “law of the place where a contract is
Lex Loci
executed or to be performed.” It controls the nature, construction,
Celebrationis
and validity of the contract and it may pertain to the law voluntarily
agreed upon by the parties or the law intended by them either
expressly or implicitly.

When the application of foreign law, judgment or contract would

Lex Fori (Law of work against the vital interests and national security of the state of
the Forum) the forum, it has to apply the internal or domestic law in adjudicating
a conflicts problem before it.

Comity,’ in the legal sense, is neither a matter of absolute obligation, on

the one hand, nor of mere courtesy and good will, upon the other. But it
is the recognition which one nation allows within its territory to the
legislative, executive or judicial acts of another nation, having due
regard both to international duty and convenience, and to the rights of
its own citizens, or of other persons who are under the protection of its
laws.

R e c i p r o c i t y No sovereign is bound, unless by special compact, to execute within his

Principle (Hilton v. dominions a judgment rendered by the tribunals of another state, and if
Guyot) execution be sought by suit upon the judgment or otherwise, the
tribunal in which the suit is brought, or from which execution is sought, is
on principle at liberty to examine into the merits of such judgment, and
to give effect to it or not, as may be found just and equitable. The
general comity, utility, and convenience of nations have, however,
established a usage among most civilized states by which the final
judgments of foreign courts of competent jurisdiction are reciprocally
carried into execution, under certain regulations and restrictions, which
differ in different countries.

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