UNIVERSITY OF MAKATI

SCHOOL OF LAW

PROPERTY

I. DEFINITION.

Property- IS an conomic concept, meamng a mass of things useful to human

activity and which are necessary to life, for which reason they may be organized and
distributed in one way or another, but, always for the good of man. In_
order. that a thing may be considered as property, it must have ·a) utility b)
substantivity, i.e., an autonomous or separate existence c) appropriability or
susceptibility to appropriation.

A. Classification under the Civil Code

1. Immovable or Real Property - Art. 415 a. by
nature - 415, (1) & (8)
b. by incorporation - (2), (3), (7)
c. by destination- (4), (5), (6), (9)
d. by analogy- 415, (10)

Movable or Personal Property- Arts. 416-417

Cases: Davao Sawmill v. Castillo, 61 Phil. 709

Berkenkoter v. Cu· Unjieng, 61 Phil 663
Lopez v. Orosa, 1 03 Phil. 98
Tumalad v. Vicencio,41 SCRA 143
Associated Insurance v. Iya, 103 Phil. 972
Makati Leasing v. WearevF?r, 122 SCRA 296
Bd. of Assessment Appeals v. Meralco,
10 SCRA 63
Meralco Securities v. Bd. of Assessment
Appeals, 114 SCRA 260
Meralco v. Central Bd. of Assessment
Appeals, 114 SCRA 273
Caltex v. Bd. of Assessment Appeals,
114 SCRA 296
Benguet Corp. v. Central Bd. of Assessment
Appeals, 218 SCRA 271

2. Importance and Significance of Classification a. From

point of view of:

 1. Criminal Law
11. Form of contracts involving movables or immovables
111. Prescription
1v. Venue
v. Taxation
v1. Double Sales under Art. 1544
VII. Preference of Credits
vm. Causes of Action to Recover

3. Differences between Real Rights and Personal Rights

B. By Ownership

1. Res Nullius

2. Public Dominion, (cf. Patrimonial) (Arts. 419, 420-422, 424)

a. Property of State - Art. 420-422

1. For ·Public Use

11. For Public Service
111. For Development of National Wealth

Cases:
La Bugal-B'laan Tribal Assn. v. Ramos, G.R.
127882, Jan, 27, 2004

on Reconsideration Dec. 1, 2004, Jan. 27, 2004,

Feb. 1,2005
Chavez v. Public Estates Authority,
384 SCRA 152

on Reconsideration: Chavez v. Public Estates

Authority, G.R. No. 133250, May 6, 2003.
Usero v. CA, G.R. No. 152115, Jan. 26, 2006

b. Property of Municipal Corporations- Art. 424, par. 1

1. For Public Use including Public works for

Public Service

3. Private property

1. Patrimonial Property of State- Art. 424

 11. Patrimonial Property of Municipal Corporations
-Art. 424, par. 2
111. Private Property of Private Persons- Art. 425, par. 2

Cases: Tantoco v. Municipal Council, 49 Phil. 52

Zamboanga del Norte v. City of
Zamboanga, 22 SCRA 1334
Salas v. Jarencio, 46 SCRA 743
Cebu v. Bercilles, 66 SCRA 481
Municipality of San Miguel v. Fernandez,
130 SCRA 56
Government v. Cabangis, 53 Phil. 112
Chavez v PEA G.R. 133250, July 9, 2002 on
Motion for Reconsideration, May
6, 2003

4. Effect al).d Significance of Classification of Property as

Property of Public Dominion

a. Property is Outside the Commerce of.Man

b. Property Cannot be the Subject of Acquisitive
Prescription
c. Property Cannot be Attached or Levied upon in
Execution
d. Property Cannot be Burdened with a Voluntary
Easement

C. Other Classification

1. By their physical existence a.

Corporeal
b. Incorporeal

2. By their Autonomy of Dependence

a. Principal b.
Accessory

3. By their Subsistence After Use a.

Consumable- Art. 418(1)

b. Non-Consumable- Art. 418
Differentiated from Fungible or Non-fungible c.
 Deteriorable or Non-deteriorable

4. By Reason of their Susceptibility to Division a.

Divisible
b: Indivisible

5. By reason of Designation a. Generic

b. Specific

6. Existence in Point of Time a.

Present
b. Future

7. Contentasnd Constitution a.
Singular
1. Simple
ii. Compound b.
Universal

8. Susceptibility to Appropriation a. Non-

appropriable
b. Appropriable
1. Already appropriated
11. Not yet Appropriated

9. Susceptibility to Commerce
a. Within the Commerce of Man b.
Outside the Commerce of Man

II. OWNERSHIP

A. Definitions.

Ownership - It is independent right of exclusive enjoyment and control of

a thing for the purpose of deriving therefrom all the all advantages required by
the reasonable needs of the owner (or holder of the right) and the promotion
of the general welfare, but subject to the restrictions imposed by law and
rights of others. (J .B.L. Reyes)

Ownership is a relation in private law by virtue of which a thing (or

property right) pertaining to one person is completely subjected to his will in
everything not prohibited by public law or the concurrence with the rights of
another. (Scialoja)
B. Bundle ofrights included in Ownership Art. 429
Jus Utendi, Fruendi, Abutendi, Disponendi, Vindicandi,
(Possidendi)

C. Other Specific Rights Found m Civil Code Arts. 429, 430, 437,
438,440

a. Right to J?xclude; Self-Help; Doctrine of Self Help; Elements

Art. 429
b. Right to Enclose or Fence - Art. 430
c. Right to Receive Just Compensatio!). m Case of ·
Expropriation - Art. 435
d. Right to Hidden Treasure - Arts. 438-439
e. Right to Accession- Art. 440
f. Right to Recover Possession andjor Ownership - Jus
Vindicandi

1. Available Actions to Recover Possession/ Ownership

Re: Immovable Property

Accion Reivindicatoria Accion

Publiciana Forcible Entry and
Unlawful Detainer

2. Specific Limitations

a. by law, e.g. legal servitudes

1. Limitation From Scattered provisions of

Civil Code
Arts. 431, 432
Arts. 2191, 677-679, 670, 649 & 652, 637, 676,
644, 684-687

Cases: U.S. v. Causby, 328 U.S. 256;

66 Sup. Ct. 1062
Lunod v. Meneses, 11 Phil. 128

11. Latin Maxim: Sic Utere Tuo Ut Alienum Non

Lqedas - Art. 431

111. Act in State of Necessity - Art. 432

 b. by party transmitting property, be it in a contract, or last will or
donation

c. by owner himself, e.g. voluntary servitude, mortgage, pdlge,

lease

d. inherent limitations from conflict of rights arising from contiguity of

property

III. RIGHT OF ACCESSION A.

Concept - Art. 440

B. General Principles of Accession

1. Applicable to both accession discreta an accession continua a. Accessory

Follows the Principal

b. No one shall be unjustly enriched at the expense of
another

2. Applicable to accession continua

a. Whatever is build, planted or sown on the land of another and the

improvements or repairs made thereon, belong to the owner of the
land, subject to the provisions of the following articles (358).

b. All Works, Sowing and Planting are Presumed made by Owner and
at His Expense, Unless contrary is Proved.

c. Accessory Incorporated to Principal such that it cannot be

Separated without Injury to Work Constructed or Destruction to
Plantings, construction or works - Art. 447

d. Bad Faith involves Liability for Damages and Other

Dire Consequences

e. Bad Faith of one Party Neutralizes Bad Faith of the

Other - Art. 453

3. Applicable to accession discreta alone

a. Ownership of Fruits - To Owner of Principal Thing belongs t}le

natural, industrial and civil FRUITS (Art. 441) exceptions:
 1. Possession in Good Faith
11. In Usufruct
111. In Lease
IV. In Antichresis

C. Obligations of Receiver of Fruits to pay expenses by 3rd person in production,

gathering and preservation - Art. 443

D. Kinds of Accession

1. Accession Discreta (Fruits) - Art. 440 a.

Natural
b. Industrial

c. Civil

Cases: Bachrach v. Seifert, 87 Phil. 11 7

Bachrach v. Talisay Silay, 56 Phil. 117

2. Accession Continua

a. Over Immovables

1. Artificial or Industrial - Building, Planting, Sowing

(bps)

a. Owner is Builder, Planter, sower (BPS) Using

Material of Another Art. 447
In Good Faith · In Bad
Faith
b. BPS Builds Plants or Sows on Another's
Land Using his Own Materials -Art. 448-
454
BPS in Good Faith - Art. 448
BPS in Bad Faith -Art. 449, 450, 451

1. Options Open to Owner of Land

a. To acquire building, planting and sowing

BPS has right of retention
retain:;; possession without
paying rental not entitled to
fruits; his rights are the same as
 an antichretic creditor

b. To sell and to BP to lease landS

BP may refuse if value
of land considerable more than bp
unless owner chooses to

acquire bps; then - forced lease

by LO and BP
BPS in Bad Faith - Art.
449,450,451

u. rights of Builder Planter Sower m bad faith-

Art. 452, 443
Landowner in bad faith but BPS
in good faith - Art. 454, 447-
reason for adverting to rule 447

c. BPS builds, plants, sows on another's land with

materials owned by 3rct person Art. 455

Nota Bene: good faith does not exclude negligence,

thus damages, negligent one may be made. to pay
damages - Art. 456

Cases:
Bernardo v. Bataclan, 66 Phil. 598
Ignacio v. Hilario, 76 Phil. 605
Sarmiento v. Agana, 129 SCRA 122
Depra v. Dumlao, 136 SCRA 475
Technogas Phils. V. CA, 268 SCRA 5
Ortiz v. Kayanan, 92 SCRA 146
Geminiano v. CA, 259 SCRA 10
Pleasantville Dev't. Corp. v. CA, 253 SCRA 10
Felices v. Iriole, G.R. No. 115814, May
26, 1995
Spouses Nuquid v. CA, G.R. No. 105360, May
25, 1993; G.R. No. 151815, Jan.23,2005

For Submission: Outline Arts. 447-455. Take care to indicate the permutations
and legal results of the good faith or bad faith by landowner builder, planter, sower
and owner of material; also the options open to any of these parties.

2. Natural
 a. Accretion Alluvium- Art. 457
Case: Republic v. CA, 132 SCRA 514
Grande v . CA, G.R. No. L-17652, June 30,
1962
Meneses, July 14, 1995
b. Avulsion
Navarro, 1997

c. Change of Course of River - Art. 461-463

Case: Baes v. CA, 224 SCRA 562

Binalay v. Manalo, G.R. No. 92161

d. Formation of Islands ·- Art. 461-465 see: PD

1067, Water Code

Reverse Accession - 120 FC; 321 CC

3. Over Movables

a. Conjunction and Adjunction

1. Inclusion or Engraftment
11. Solr;ladura· or soldering

a. Plumbatura - different metals b.

Ferruminatio - same metal

111. Tejido or Weaving IV.

Escritura or writing v.
Pintura or painting

c. Commixtion and Confusion

Case: Siari Valley Estates v. Lucasan

G.R. No. L-704 Aug. 31, 1955
Santos v . Bernabe, 54 Phil. 19

c. Specification

IV. QUIETING OF TITLE

A. Differences Between Action to Quiet Title and Action: To Remove A

 Cloud
To Prevent a Cloud

B. Prescription of Action - Imprescriptible if plaintiff is in possession; if not, prescribes

within period for filing accion publiciana, accion reivindicatoria
Cases: Olviga v. CA, G.R. No. 104813, Oct. 21, 2993
Pingol v. CA, G.R. No. 102909, Sept. 6, 1993

C. Who are Entitled to bring Action? Rule 64 Sec. 1 par. 2, Rules of

Court. D.

Notes:

1. There is a cloud on title to real property or any interest to real property (Art.
476)
2. plaintiff has legal or equitable title to or interest in the
subject/real property
3. Instrument record claim, etc. must be valid and binding on its face but in truth
and in fact invalid, ineffective, .voidable or unenfqrceable
4. plaintiff must return benefits received from defendant

Case: Titong v. Court of Appeals, G.R. No. 111141, March 6, 1998

5. Actions to quiet title are proceedings quasi in rem

Case: Sps. Partie v Cristobal, G.R. 156171, April22,

2005

V. CO-OWNERSHIP A.

Definition

The right of common dominion which two or more persons have in a spiritual part (or
ideal portion) or a thing which is not physically divided.

B. Characteristics

1. There is plurality of owners, but only one real right of ownership;

2. The recognition of ideal shares, defined but not physically identified.
3. Each co-owner has absolute control over his ideal share;
4. Mutual respect among co-owners in regard to use enjoyment and preservation
of thing as a whole
Case;_ Pardell v. Bartolome, 23 Phil. 450
C. Differences between co-ownership and joint tenancy. D.

Differences between partnership and co-ownership.

Case: Gatchalian v. Collector, 67 Phil. 666

E. Sources of co-ownership

a. Law, e.g., party walls, hedges and ditches; co-ownership in hidden treasure

1. Cohabitation (Art. 147 & 148, Family Code); Art. 90 on suppletory

application of the principles of coownership to ACP
11. Purchase (Art. 1452)
111. Succession (Intestate: Art. 1078; Testate: Property is given to two or
more heirs)
IV. Donation (Art. 753; Article 573, 2nd par.)
v. Chance (Art. 472)
Case: Siari Valley Estate· v. Lucason, supra.
VI. Hidden treasure (Art. 348)
VII. Easement of party wall (Art. 658)
v111. Occupation
Case: Punzalan v. Boon Liat, 44 Phil. 320
IX. Condominium Law (Sec. 6(c) Rep. Act 4726)
Case: Twin Towers Condominium Corporation v. Court of
Appeals, G.R. No. 123552, Feb. 27, 2003

b. Contract

1. By agreement (duration of co-ownership, Art. 494)

11. Universal Partnership (Arts. 1778-1780)
111. Associations and societies with secret articles
(Art. 1775)

c. Succession
d. Chance (Commixtion, hidden treasure)
e. Occupation (harvesting and fishing)

F. Rights of each co-owner as to thing owned in common:

a. To use the thing according to the purpose intended may be altered by

agreement, express or implied; provided:

1. it is without injury or prejudice to interest of co

 ownership and;

11. Without preventing the use of other co-owners, Art.

486
Case: Pardell v. Bartolome, 23 Phil. 450

b. To share in the benefits in proportion to his interest, provided the charges are
borne by each in the same proportion (Art. 485)

• - Contrary stipulation in void

• - presumption is that · portions are equal unless contrary is
proved

c. Each co-owner may bring an action in ejectment (Art. 487)

Cases: Resuena v. CA, G.R. No. 128338, March 28, 2005

Acabal v. Acabal, G.R. No. 122904, April 15, 2005

d. To compel other co-owner to contribute to expenses for preservation of the

thing or right owned in common and to payment of taxes (Art. 488)

• - Co-owner's option not to contribute by waiving his

undivided interest equal to amount of contribution (exception:
if waiver prejudicial to co-ownership)
• - Requisites before repairs for preservation may be mae of
expenses for embellishment or improvement may be made (Art.
489)
• - Effects of failure to notify co-owners

e. To oppose any act of alteration; remedy of other co-owners re: acts of

alteration (Art. 491)

1. Acts of alteration

1. Concept - any change injurious to the thing owned in

common or to the rights of other co-owners
or any change material to the use,
destination or state of thing which act is in
violation of the express or tacit agreement of the
co-owners
11. Distinguished from acts of administration Art.
492
111. Effect of acts of alteration and remedies of non
consenting co-owner
 Query: Is lease of real property owned in common an
act of alteration? Art.
647 in relation to Art. 1878(8)

f. To protest against acts of majority which are prejudicial to minority (Art.

492 par. 3)

Cases: Lavadia v. Cosme, 72 Phil. 196

Melencio v. Dy Tiao Lay, 55 Phil. 100
Tuason u. Tuason, 88 Phil. 428

g. To exercise legal redemption- Art. 1620, 1623

Cases: Mariano v. CA, 222 SCRA 736

Verdad v. CA, 256 SCRA 593

h. To ask for partition - Art. 494

Cases: Ramirez v. Ramirez, 21 SCRA 384

Aguilar v. CA, G.R. No. 76351, Oct.
26, 1993
Vda. de Ape v. CA, G.R. No. 133638,
April 15, 2005

1. Other cases where right of legal redemption is given -Arts.

1621, 1622

Cases: Halili v. CA, G.R. No. 113539, March 12, 1998

Francisco v. Boiser, G.R. No. 137677,
May 31,2000

G. Implications of co-owners right over his ideal share:

a. Co-owner has the right:
1. To share in fruits and benefits
2. To alienate, mortgage or encumber and dispose of his ideal share -
(but other co-owners may exercise right of legal redemption)
3. To substitute another person in the enjoyment of thing
4. To renounce part of his interest to reimburse necessary expenses
incurred by another co-owner (Art. 488)

b. Effect of transaction by each co-owner

1. Limited to his share in the partition

 11. Transferee does not acquire any specific portion of whole property
until partition
111. Creditors of co-owners may intervene in partition or
attack the same if prejudicial (Art. 499), except that creditors
cannot ask for rescission even if not notified in the absence of
fraud (Art. 497)

Cases: Carvajal v. CA, 112 SCRA 237

Pamplona u. Moreto, 96 SCRA 775

Castro v. Atienza, 53 SCRA 264

Estoque v. Pajimula, 24 SCRA 59
Diversified Credit v. Rosado,
26 SCRA 470
PNB v. CA, 98 SCRA 207

H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute

community of property.

I. Special rules on ownership of different stories of a house as differentiated from

provisions of Condominium (Act No. 4726)

1. Concept of Condominium
2. Essential requisites for Condominium
3. Important documents to consider m purchase of
condominium unit:

a. master or enabling deed

b. declaration of restrictions
c. articles & by-laws of condominium corporation, if
applicable
d. contract of sale

Related Laws: PD 957; RA 6552

3. Rights and Obligations of Condominium owner

Case: Sunset View Condominium v. J4dge Campos

G.R. No. 52361, April27, 1981

J. Extinguishment of co-ownership

1. Total destruction of thing

 2. Merger of all interests in one person

3. Acquisitive prescription a. By a

third person

b. By one co-owner as against the other co-owners requisites

and unequivocal acts of:

1. Unequivocal acts of repudiation of co-ownership (acts amounting

to ouster of other co-owners) known to other co-owners and
shown by clear and convincing evidence
11. Open and adverse possession, not mere silent
possession for the required period of
extraordinary acquisitive prescription
111. The presumption is that possession by co-owner is not adverse

Case: Capitle v. De Gahan, G.R. No. 146890, June 8, 2004

4. Partition or Division

a. Right to ask for partition at any time except:

1. When there is a stipulation against it (not over ten years)

11. When condition of indivision is imposed by
transferor (donor or testator) not exceed 20 years - Art. 494
111. When the legal nature of community prevents partition (party
wall)
1v,. When partition is generally prohibited by law
(e.g. absolute community of property .
v. When partition would render the thing
unserviceable (but the thing may be sold and · co-owners divide
the proceeds (Art. 494)
- Action for partition will fail if acquisitive prescription has set in.

b. Effect of Partition
Arts. 1091, 543, 1092-1093, 499-501

c. Right of Creditors of Individual co-owners Art. 497 d. Procedure

for Partition - Rule 69 Rules of Court

VI. POSSESSION
A. Definition and Concept (Art. 523)

Possession is the holding of a thing or the enjoyment of a right, whether by

material occupation or by the fact that the thing or the right is subjected to the action of
our will.

It is a real right independent of and apart from ownership i.e., the right of possession
(jus possessionis as distinguished from the right to possess Uust possidendi]

A. Essential requisite of possession:

B. Differences between a possession and occupation

C. Essential requisites of possession:

a. Holding or control of a thing or right (corpus) consists of either

1. The material or physical holding or occupation either

11. Exercise of a right
111. Constructive possession (intention to possessis very
Crucial)

Cases: Ramos v. Director of Lands, 39 Phil. 175

Director vs. CA, 130 SCRA 9_

b. Intention to possess (animus possidendr)

D. Degrees of holding or possession

1. Mere holding or possession without title whatsoever and in violation of the

right of the owner, e.g. possession of a thief or a usurper of land.

2. Possession with juridical title but not that of ownership, e.g. possession of
tenant, depository agent, bailee trustee, lessee, antichretic creditor. This degree
of possession will never ripen into full ownership as long as there is no
repudiation of concept under which property is held.

3. Possession with just title or title sufficient to transfer ownership, but not from
the true owner e.g. possession of a vendee from vendor who pretends to be
the owner.
This degree of possession ripens into full ownership by lapse
of time
 4. Possession with just title from the true owner. The delivery of possession
transfers ownership, and strictly speaking, is the jus possidendi.

E. Cases of possession:

1. Possession for oneself, or possession exercised in one's own name and

possession in the name_ of another - (Art. 524)

2. Possession in the concept of an owner and possession in the concept of a

holder with the ownership belonging to another (Art. 525)

3. Possession i n good faith and possession m bad faith (Art.

526)

Case: Pleasantville Dev't. Corp. v. CA, 253 SCRA 10

a. Mistake upon a doubtful or difficult question of law as a basis of good

faith.

Case: Kasilag v. Roque, G.R. No. 46623, Dec. 7, 1939

F. What things or rights may be possessed.

Only things or rights susceptible of appropriation may be the object of

possession (Art. 530)

G. What may not be possessed by private persons.

a. Res communes
b. Property of public dominion
c. Right under discontinuous and/ or non-apparent easement

H. Acquisition of Possession

1. Ways of acquiring possession (Art. 531)

a. Material occupation of the thing

b. Subjection to the action of our will

1. 1. The doctrine of constructive possession.

ii. ii. Includes constructive delivery;
 1. Traditio brevi manu (thing already in transferee's hands, e.g.
under a contract of lease, then delivered under a sale)
2. traditio constitutum possessorium (thing
remains in transferor's hands, e.g. sale, then retained
under a commodatum)

c. Proper acts and legal formalities - refers to the acquisition of

possession by sufficient title, intervivos or mortis causa,
lucrative or onerous. Example: 1. Includes traditio longa
manu and traditio simbolica, donations, succession (testate
on intestate), contracts, judicial writs of possession,
writ of execution of judgments, execution and
registration of public instruments.

Case: Banco Espafw{Filipino v. Peterson, 7 Phil. 409

2. By whom may possession be acquired: (Art. 532)

a. By same person; elements of personal acquisition b. By his legal

representative; requisites
c. By his agent
d. By any person without any power whatsoever but subject to
ratification, without prejudice to proper case of negotiorum gestio (Arts.
2144), 4129, 2150)
e. Qualifiedly, minors and incapacitated persons (Art.
525)

3. What do not affect possession (Arts. 537, 1119)

a. Acts merely tolerated
Case: Macasaet v. Macasaet, G.R. No. 154391-92, Sept. 30, 2004
b. Acts executed clandestinely and without the
knowledge of the possessor
c. Acts by violence as long as possessor objects thereto
(i.e. he files a case) (Art. 536)

Cases: Cuaycong v. Benedicta, 37 Phil. 781

Astudillo v. PHHC, 73 SCRA 15
Peran v. CFI, 125 SCRA 79

4. R 1les to solve conflict of possession (Art. 538)

General Rule: Possession cannot be recognized in two

different personalities, except in cases of co-possession by
co-possessors without conflict claims or interest.
 In case of conflicting possession - preference is given to:

a. Present possessor or actual possessor

b. If there are two or more possessors, the one longer in
possession
c. If dates of possession are the same, the one who
presents a title .
d. If all conditions are equal, the thing shall be placed in
judicial deposit pending determination of possession
or ownership through proper proceedings

I. Effe cts of Possession

1. In general, every possessor has a right to be respected in his

possession; if disturbed therein, possessor has right to be
protected protected in or restored to said possession (Art.
539)

a. Actions to recover possession

1. summary proceedings - forcible entry and

unlawful detainer. Plaintiff may ask for writ of

preliminary mandatory injunction may be asked.

Within 10 days from filing of complaint i n
forcible entry (Art. 539)

Case: Yu v. Honrado, 99 SCRA 273

The same writ is available in unlawful detainer actions

upon appeal (Art. 1674)

11. Accion puliciana (based on superior right of possession,

not of ownership)
111. Accion reividicatoria (recovery of ownership),
including right to possess
1v. Action for replevin (possession or ownership for movable
property)

b. Lawful possessor can employee self-help (Art. 429)

 2. Entitlement to fruits- possessor in good faith/bad faith (Art.
544, 549)

3. Reimbursement for expenses -possessor in good faith/bad faith

a. Liability for loss or deterioration of property by

possessor in bad faith. (Art. 553; 552)

4. Possession of movable acquired in good (in concept of owner)

is equivalent to title (Art. 559) ·

Possessor has actual title which is defeasible only by true owner

One who has lost a movable or has been unlawfully deprived thereof may
recover it without reimbursement, except if possessor acquired it at a public
sale.

J. Effect of possession in the concept of owner:

a. Possession may be lapsed of time ripen into full ownership, subject to certain
exceptions

b. Presumption of just title and cannot be obliged to show or prove it (Art.

541); exception (Art. 1131)
c. Possessor may bring all actions necessary to protect his possession except
accion reivindicatoria
d. May employ self-help under Art. 429
e. Possessor may ask for inscription of such real right of possession in the
registry of property
f. Has right to the fruits and reimbursement for expenses
(assuming he is a possessor in good faith)
g. Upon recovery of possession which he has been unlawfully deprived may
demand fruits and damages.
h. Generally, he can do on the things possessed everything that
the law authorizes owner to do until he is ousted by one who has a better
right.
1. Possession in good faith and possession in bad faith. (Art.
528).
a) mistake .upon a doubtful or difficult question of law as a basis of good
faith. (Art. 526, par. 3).

K. Presumptions in favor of the possessor:

1. Of good faith until the contrary is proved (Art. 527)

2. Of continuity of initial good faith in which possession was commenced

 or -possession in good faith does not lose this character except in the
case and from the moment possessor became aware or is not unaware of
improper or wrongful possession. (Art. 528)

Case: Cordero v. Cabral, 122 SCRA 532

3. Of enjoyment of possession in the same character in which possession was

required until contrary is proved (Art. 529)

4. Of non-interruption of possession in favor of present possessor who

proves possession at a previous time until the contrary is proved (Art. 554)
Arts. 1120-1124)

5. Of continuous possession or non-interruption of possession of which he

was wrongfully deprived for all purposes favorable to him (Art. 561)

Present possession presumed to be the possession at previous time &

has continued to be so during intervening time, unless proved contrary 1138
(2) .

6. Other presumptions with respect to specific properties of property rights:

1. Of extension of possession of real property to all movables

contained therein so long as it is not shown that they should be
excluded; exceptions (Art. 426)
11. Non-interruption of possession of hereditary property
(Art. 533 & 1078)
111. Of just title in favor of possessor in concept of owner
(Art. 541; but see: Art. 1141) L.

Possession may be lost by:

a. Abandonment
b. Assignment, either onerous or gratuitous
c. Destruction or total loss of thing or it goes out of commerce
d. Possession by another; if possession has lasted longer than one year; real right
of possession not lost until after ten (10) years
- subject to Art. 537 (acts merely tolerated, etc.)

VII. USUFRUCT

A. Concept - (Art. 562)

Usufruct is a real right, temporary in character that authorizes the holder to enjoy
all the advantages derived from a normal exploitation of another's property, according to its
destination or purpose, and imposes and obligation of restoring at the time specified, either
the thing itself or its equivalent.

B. Historical considerations

C. Characteristics of Usufruct

D. Usufruct distinguished from lease; from servitude

E. Classes of Usufruct

1. By origin:

a. Voluntary
b. Legal - Art. 321 cc; Art. 226 Family Code c. Mixed

2. By person enjoying right of usufruct a. Simple

b. Multiple
1. Simultaneous
11. Successive

Limitation on successive usufruct (Art. 756, 863 & 869)

3. By object of usufruct

a. Rights - (Art. 574)

b. Things
1. Normal
2. Abnormal, irregular or quasi-usufruct

4. By the extent of the usufruct a. As to the

fruits
1. Total
2. Partial (Art. 598)
b. As to object
1. Singular
11. Universal (Art. 595)
- subject to provisions of Arts. 758 & 759

5. By the terms of usufruct (Art. 564)

a. Pure
b. Conditional
 c. With a term (period) F. Rights of

Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and accessions
- Fruit consist of natural, industrial and civil fruits
- As to hidden treasure, usufructuary is considered a
stranger {Art. 566; 436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Arts. 569, 588)

b. Right to lease the thing (Art. 572) - -

Limitations
- Liability of usufructuary - lessor (Art. 5 90)
- Exceptions to right of-leasing the thing

Case: Fabie v. David, 75 Phil. 536

c. Right to improve the thing (Art. 579)

2. As to the legal right of usufruct itself a.

Right to mortgage
right of usufruct (Art. 572)

b. Right to alienate the usufruct, except purely personal usufructs, or

when title constituting it prohibits the same.

G. Rights of the naked owner

1. At the beginning, during and termination of usufruct

(obligations of usufructuary at the beginning of usufruct)

2. During the usufruct:

a. Retains title to the thing or property b. He
may alienate the property
Limitations {Art. 581)

H. Obligations of Usufructuary

1. At the beginning of usufruct or before exercising the usufruct

 A. to make inventory (Art. 583)

1. Requisites of inventory
1. Immovables described
11. Movables appraised

2. Exception to requirement of inventory

1. no one will be injured thereby (Art. 585)
11. title constituting usufruct excused the making of
inventory
111. title constituting usufruct already makes an inventory _

B. To give bond for the faithful performance of duties as usufructuary

1. No bond are required in the following:

1. No prejudice would result (Art. 585)

11. Usufruct is reserved by donor (Art. 584)
111. Title constituting usufruct .excused
usufructuary
1v. If usufructuary takes possession under a caucion juratoria

2. Effect of filing a bond (Art. 588)

3. Effect of failure to ·give bond (Art. 586, 599)

2. During the usufruct

a. To take care of the thing like a good father or a family

(Art. 589)
Effect of failure to comply with obligation (Art.
610)
b. To undertake ordinary repairs (Art. 592) Concept of
ordinary repairs

c. To notify owner of need to undertake extra-ordinary repairs (Art.

593)

1. Concept of extraordinary repairs

2. Naked owner obliged to undertake them but when made by

owner, usufructuary pays legal interest on the amount while
usufruct lasts (Art.
594, par. 1)
 3. Naked owner cannot be compelled to undertake extra-ordinary
repairs.

a. If indispensable and owner fails to undertake

extraordinary repairs may be made by usufructuary;
repairs usufructuary right (Art. 594, par. 2)

d. To pay for annual charges and taxes on the fruits

Case: Board of Assessment Appeals of Zamboanga del Sur v.

Samar Mining Company, Inc.,
37 SCRA 734

e. To notify owner of any act detrimental to ownership

(Art. 601)

f. To shoulder the costs of litigation re usufruct (Art.

602)

g. To answer for fault or negligence of alienee, lessee, or agent of

usufructuary (A.rt. 590)

I. 1. At the time termination of the usufruct

2. To deliver the thing in usufruct to the owner in the condition
in which he has received it, after · undertaking ordinary repmrs.

Exception: abnormal usufruct

J. Special Cases of usufruct

1. Usufruct over a pension or periodical income (Art. 570)

2. Usufruct of property owned in common (Art. 582)

3. Usufruct of head of cattle (Art. 591)

4. Usufruct over vineyards and woodlands (Arts. 575-576)
5. Usufruct on a right of action (Art. 578)
6. Usufruct on mortgaged property (Art. 600)
7. Usufruct over an entire patrimony (Art. 598) Liability of
usufructuary for debts
8. Usufruct over deteriorable property (Art. 578)
9. Usufruct over consumable property (or quasi-usufruct) Art. 574)

K. Extinguishment of usufruct (Art. 603)

1. Death of usufructuary

Exception:

1. unless a.contrary intention clearly appeals

2. Expiration of period or fulfillment of resolutory condition imposed on

usufruct by person constituting the usufruct

Cases: Baluran v. Navarro, 79 SCRA 309

NHA v. CA, Bulacan Garden Corp. v. Manila
Seedling Bank G.R. No. 148830, April 13, 2005

a. time that may elapse before a third person . attains a certain age,
even if the latter dies before period- expires
- unless granted only in consideration of his existence · (Art. 606)

3. Merger of rights of usufruct and naked ownership m one person

4. Renunciation of usufruct a.
Limitations
Must be express
If made in fraud of creditors, waiver may be rescinded by
them through action under Art.
1381.

5. Extinction or loss of property

a. If destroyed property is insured before the termination of the usufruct

(Art. 608)

1. When insurance premium paid by owner and usufructuary

(Art. 608, Par. 1)
a. If owner rebuilds, usufruct subsists on new building
b. If owner does not rebuild interest upon
insurance proceeds paid to usufructuary

2. When the insurance taken by owner only because

usufructuary refuses Art. 608, par. 2)

a. Owner entitled to insurance money (no interest paid

to usufructuary)
b. If he does not rebuild, usufruct continues over
remaining land and/or owner may pay interest on
value of both (Art. 607)
 c. If owner rebuilds, usufruct does not
continue on new building, but owner must pay
interest on value on land and old materials.

3. When insurance taken by usufructuary only depends on

value of usufructuary's insurable interest (not provided for in
Civil Code)
a. Insurance proceeds to usufructuary
b. No obligation to rebuild .
c. Usufruct continues on the land
d. Owner does not share in insurance proceeds
b. If destroyed property is not insured (Art. 607)

1. If building forms part of an immovable under usufruct

a. If owner does not rebuild, usufruct continues over

the land and materials

b. If owner rebuilds, usufructuary must allow owner to

occupy the land and to make use of materials, but
value of both

and land and materials.

6. Termination of right of person constituting the usufruct.

7. Prescription

Cases covered: If third party acquires ownership of thing or property

in usufruct or right of ownership lost through prescription or right of
usufruct not began within prescriptive period, or if there is a tacit
abandonment or non-user of thing held in usufruct for required period.

8. What do not cause extinguishment of usufruct

a. Expropriation of thing in usufruct (Art. 609)

b. Bad use of thing in usufruct (Art. 810) Owner's right
c. Usufruct over a building (Art. 607, 608) VIII.

EASEMENT OR SERVITUDES

A. Definition - Easements or real servitudes is a real right which burdens a thing with
a presentation consisting of determinate servitudes for the exclusive enjoyment of a person who is
not its owner or of a tenement belonging to another, or, it )s the -real right over an immovable by
nature i.e. land and buildings, by virtue of which the owner of the same has to abstain from doing
or to allow somebody else to do something in his property for the benefit of another thing/ or
person.

B. Essential feature of easements/real servitudes/praedial servitudes

1. It is a real right, i.e., it gives an action in rem or real action against any possessor
of servient estate.

2. It is a right enjoyed over another property Ous in re aliena) i.e., it cannot

exist in one's own property (nulli res sua servit).

3. It is a right constituted over an immovable by nature (Land and buildings), not

over movables.

4. It limits the servient owner's right of ownership for the benefit of the
d ominant estate. Right of limited use, but no right to possess servient estate.
Being an abnormal limitation of ownership, it cannot be presumed.

5. It creates a relation between tenements

6. It cannot consist in requiring the owner of the servient estate to do

an act, ( servitus in faciendo consistere nequit) unless the act is
accessory to a praedial servitude (obligation propter rem)

7. Generally, it may consist in the owner of the dominant estate

demanding that the owner of the servient estate refrain from doing
something (servitus· in non faciendo), or that the latter permit that
something be done over the servient property
(servitus inpatendo), but not in the right to demand that the
owner of the servient right to demand that the owner of the servient estate
do something ( s.ervitus in faciendo) except if such act is an accessory
obligation to a praedial servitude (obligation propter rem).
(Characteristics of easements):

8. It is inherent or inseparable from estate to which they actively or passively

belong (Art. 617)

9. It is intransmissible, i.e., it cannot be alienated separately from the tenement

affected, or benefited.

10. It is indivisible. (Art. 616)

11. It has permanence, i.e., once it attaches, whether used or not, it continues and
may be used at anytime.

C. Classification of Servitudes
1. As to recipient of benefits:

a. Real or Praedial

b. Personal (Art. 614) [But note that under Roman Law, usufruct
together with usus habitatio, and operae servorum were classified as
personal servitudes]

2. As to course or origin:

a. Legal, whether for public use or for the interest of private persons
(Art. 634)
b. Voluntary

3. As to its exercise (Art. 615)

a. Continuous
b. Discontinuous

4. As indication of its existence (Art. 615)

a. Apparent
b. Non-apparent

5. By the object or obligation imposed (Art. 616)

a. Positive
b. Negative (prescription start to run from service of notarial
prohibition)

D. General rules relating to servitudes

1. No one can have a servitude over his own property (nulli res ·
sua servit)

2. A servitude cannot consist m doing (servitus in faciendo consistere

nequit)

3. There cannot be a servitude over another servitude (Servitus servitutes esse

non potest)

4. A servitude must be exercised civiliter, 1.e., m a way least burdensome

to the owner of the land.

5. A servitude must have a perpetual cause. E. Modes of

Acquiring Easements

Case: North Negros v. Hidalgo, 63 Phil. 664

1. By title-juridical act which give rise to the servitude, e.g. law, donations,
contracts or wills.

Case: Dumangas v. Bishop of Jaro, 34 Phil. 541

a. If easement has been acquired but no proof of existence of

easement available, and easement is one that cannot be acquired by
prescription- then
1. May be cured by deed of recognition by owner of
servient estate, or
2. By final judgment

3. Existence of an apparent sign considered a title

(Art. 624)

Case: Amor v. Florentino, 74 Phil. 404

2. By prescription

Case: Ronquillo v. Roco, 63 Phil. 86

F. Rights and O]Jligations of Owners of Dominant and Servient

Estates-

1. Right of owner of dominant estate

a. To use the easement (Art. 626) and exercise all rights necessary for the
use of the (Art. 625)

b. To do at his expense, all necessary works for the use and preservation
of the easement (Art. 627)

c. In a right of way, to ask for change in width of easement

sufficient for needs of dominant estate (Art.
651)

Case: De Luna v. Encarnacion

2. Obligations of the owner of Dominant Estate:

 a. To use the easement for benefit of immovable and in the manner
originally established (Art. 626)

b. To notify owner of servient estate before making repairs and to

make repairs in a manner least inconvenient to servient estate (Art.
627)

c. Not to alter easement or render it more burdensome

(Art. 627)

Case: Valderrama v. North Negros, 48 Phil. 482

d. To contribute to expenses of works necessary for use and

preservation of servitude, · if there are several dominant estates,
unless be renounces his interest (Art. 628)

3. Rights of owner of servient estate

a. To retain ownership and use of his property (Art. 630)

b. To change the place and manner of use the easement

(Art. 629, par. 2)

4. Obligations of the servient estate

a. Not to impair the use of the easement (Art. 628, par.

1)
b. To contribute proportionately to expenses if he uses the easement
(Art. 628, par. 2)

G. Modes of Extinguishment of Easements:

1. Merger - must be absolute, perfect and definite, not merely temporary.

2. By non-user for 10 years

a. Computation of the period

(1) discontinuous easements; counted from the day they ceased to

be used
(2) continuous easements: counted from the day an act adverse to
the exercise took place.
 b. The use by a co-owner of the dominant estate bars prescription with
respect to the others. (Art. 633)

c. Servitudes not yet exercised cannot be extinguished by non-user.

3. Extinguishment by impossibility of use

4. Expiration of the term or fulfillment of resolutory condition

5. Renunciation of the owner of dominant estate - must be specific clear,

express (distinguished from non-user)

6. Redemption agreed upon between the owners

7. Other causes not mentioned in Art. 631

a. Annulment or rescission of the Title constituting the easement

b. tenpination of the right of grantor

c. abandonment of the servient estate d. eminent

domain

e. special cause for extinction of legal rights of way; if right of way;

if right of way no longer necessary

H. Legal Easements

1. Law Governing Legal Easements-

a. For public easements

1) special laws and regulations relating thereto, e.g., Pres.

Decree 1067, P.D. 705
2) by the provisions of Chapter 2, Title VII, Book II New
Civil Code

b. For private legal easements

1) by agreement of the interested parties whenever the law

does not prohibit it and no injury is suffered by a third
person
 2) by the provisions of Chapter 2, Title VII Book II

2. Private Legal Easements provided for by the New Civil Code

a. those established for the use of water or easements relating to

waters (Art. 637-648)

1) Natural drainage of waters {Art. 637)

Case: Ongsiako v. Ongsiako
2) Easements on lands along riverbanks (Art. 638), See Water
Code
3) Abutment of a dam (Art. 639)
4) Aqueduct (Art. 642-646)
5) Drawing waters and watering animals (Art. 640)
6) Stop lock or sluice gate (Art., 649)

b. The easement of right of way (Arts. 649-657)

Cases: Quimen v. CA, G.R. No. 112331, May 29, 1996 ·
David Chan v. CA, 268 SCRA 677
La VistaAssn. v. CA, G.R. No. 95252,
Sept. 5, 1997
Vda. De Beltazar v. CA, 245 SCRA 333
Sps. de la Cruz v. Ramiscal, G.R. No. 137882, Feb. 4,2005

c. The easement of party wall (Arts. 658-666)

d. The easement of light and view (Art. 667-673)

e. The easement of drainage of buildings (Arts. 674-676)

f. The easement of distance for certain constructions and plantings (Arts.

677-681)

g. The easement against nuisances (Art. 682-683)

h. The easement of lateral and subjacent support (Arts.

684-687)

Book III- Different Modes of Acquiring Ownership

1. MODE AND TITLE DIFFERENTIATED

Mode is the specific cause which produces dominion and other re.al rights as a
result of the co-existence 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 which in itself is insufficient.

2. MODES OF ACQUIRING OWNERSHIP

a. Original Modes - which produce the acquisition of ownership independent of any

pre-existing right of another person, hence, free from any burdens or
encumbrances.

1. occupation
11. intellectual creation

b. Derivative Modes - based on a right previously held by another person,

and therefore, subject to the same characteristics powers, burdens, etc.
as when held by preVIous owner.

1. Law - e.g. registration under Act 496; estoppel of title under Art.
1434 CC; marriage under absolute community of property
system; hidden treasure; accession (Art. 445); change in river's course
(Art. 461); accession continua over movables (Art. 466); Arts. 681, 1456
CC, and Art. 120 FC.

1. Donation

11. Succession
111. Prescription
IV. Tradition

Requisites:

(1) Pre-existence of right in estate of grantor (2) Just

cause or title for the transmission
(3) Intention- (of both grantor and grantee) (4)
Capacity- to transmit and to acquire
(5) An act giving it outward form, physically, symbolically,
or legally.

Legal Maxim: "Non nudis pactis, sed traditione, dominia rerum

transferentur" (Not by mere agreement, but by delivery, is ownership
transferred).

Kinds of Tradition:

a. Real Tradition
 b. Constructive Tradition

1. Symbolical delivery
11. Delivery of Public Instrument
111. Traditio Longa manu
IV. Traditio Brevi manu
v. Traditio Constitutum Possessorium
v1. Quasi-Tradition
VII. Tradition by operation of law

3. OCCUPATION

a. Not applicable to ownership of a piece of land (Art. 714 CC) b. Privilege

to hunt and fish regulated by. special law (Art. 715) c. Occupation of a swarm of
bees or domesticated animals (Art.
716) - see also Art. 560
d. Pigeons and fish (Art. 717)
e. Hidden treasure (Art. 718) see also Arts. 438-439
f. Lost movables; procedure after finding lost movables (Art.
719-720)

4. INTELLECTUAL CREATION- Intellectual Property Code

(Rep. Act No. 8293)

Intellectual Property Rights (IPR):

a. Copyright & related rights
b. Trademarks & service marks c.
Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound r ecordings &
broadcasting orgs.
h. Protection of undisclosed information
1. Laws repealed by the Intellectual Property Code (Sec. 239)

All Acts and part of Acts inconsistent with Intellectual

Property Code, particularly:

Pres. Decree No. 49 - Intellectual Property Decree, including PD

285 as amended
Rep. Act. No. 165, as amended- Patent Law
Rep. Act. No. 166, as amended
Arts. 188 & 189 of the Revised Penal Code
DONATION

I. Nature of Donation - A bilateral contract creating unilateral obligations on donor's,

part.

II. Requisites of donation:

a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of thing donated
d. Form as prescribed by law

Note: There must be impoverishment (in fact) of donor's patrimony and enrichment
on part of donee)

III. Kinds of donations

1. As to its taking effect

a. Inter vivos (Arts. 729, 730, 731)

b. Mortis causa (Art. 728)

c. Propter nuptias (Arts. 82, 87, Family Code)

2. As to cause or consideration:
a. simple
b. renumeratory
c. onerous- (imposes a burden inferior in to value property
donated)
1. improper-burden equal in value to property
donated
11. sub-modo or modal - e.g. imposes a prestation upon donee as
to how property donated will be aplied
(See: Art. 882 C.C.)
111. mixed donations -- negotium mixtum cum donatione
e.g. sale for price lower than value of property

Case: Lagazo v. Court of Appeals, 287 SCRA 24

3. As to effectivity or extinguishment a.
pure
b. conditional (Art. 730, 731)
i. effect of an impossible condition c.
with a term

4. Importance of classification a. as to
 form
b. as to governing rules
c. as to impossible conditions- Art. 727, 1183

5. Characteristics of a donation mortis causa

a. convey no title or ownership before donor's death b.
before donor's death transfer is revocable.
c. transfer is void if donor survives donee.

6. Distinction between donation mortis causa and donation

inter vivos.
a. 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.

b. importance of classification - validity and revocation of donation.

Cases: Bonsato u. Court of Appeals, 95 Phil. 481

Gestopa u. Court of Appeals, 342 SCRA 105
Austria-Magat u. CA, G.R. No. 106755, Feb. 1,
2002

IV. Who may not give or receive donations - Art. 735, 737, 738, 741,
742

V. Who may give or receive donations (Art. 736, 739 [1027, 1032],
740, 743, 744)

Cases: Vitug v. Court of Appeals, 183 SCRA 755

Hemedes v.. Court of Appeals, 316 SCRA 347

VI. Acceptance of donation

a. who may accept (Art. 745, 747)
b. time of acceptance of donation inter vivos (Art. 746) - donation
mortis causa

Case: Lagazo u. Court of Appeals, 287 SCRA 24

VII. Form of donations

a. personal property (Art. 748)
b. real property (Art. 749)
c. Rules in Art. 748 and 749 not applicable to .
1. onerous donations
11. modal donations
111. mortis causa donations
iv. donations propter nuptias
 Case: Sumipat u. Banga, G.R. No. 155810, Aug. 13,
2004

VIII. What may be donated

1. All present property, or part thereof, of donor

a. provided he reserves, in full ownership or usufruct, sufficient

means for support of himself and all

relatives entitled to be supported by donor at time

of acceptance (Art. 750)

Case: Calicdan v. Cendana, G.R. No.

155080, Feb. 5,2004

b. provided that no person may give or receive by

way of donation, more than he may give or
receive by will (Art. 752) also, reserves property
sufficient to pay donor's debts contracted before
donation, otherwise, donation is in fraud of creditors,
(Arts. 759, 1387)

If donation exceed the disposable or free portion of his estate,

donation is inofficious.

Exceptions:

a. donations provided for in marnage settlements

between future spouses (Art. 84, Family Code;
Art.
130 C.C.)- not more than l/5 of present property.
b. donations propter nuptias by an ascendant consisting
of jewelry, furniture or clothing not to exceed 1/10
of disposable portion (Art. 1070)

2. What may not be donated

a. future property meaning of future . property.
Anything which donor cannot dispose of at the -time
of donation (Art. 751) exception: marriage
settlements of future spouses only in event of
death to extent laid down in civil code re-
testamentary succession (Art.
130 C.C.; Art. 84
Family Code) IX. Effect of Donation

A. In general

Case: Shopper's Paradise Realty v. Roque, G.R. No. 148775,

Jan.
13,
2004
1. Donee may demand actual delivery of thing donated.
2. donee is subrogated to rights of donor in the
property donated (Art. 754)

3. Donor not obliged to warrant things donated, except in onerous donations

in which case donor is liable for eviction up to extent of burden (Art.
754)
4. Donor is liable for eviction or hidden defects in case of bad faith on his
part (Art. 754)
5. In donations propter nuptias, donor must release property donated
from mortgages and other encumbrances, unless contrary has been
stipulated - (Art. 131 C.C.)
a. Donations propter nuptias of property subject to encumbrances are
valid. Effect of foreclosure (Art. 85 FC)
6. Donations to several donees jointly - no right of
accretion, except;
a. Donor provides otherwise
b. Donation to husband and wife jointly with right of _ accretion Gus
accrescendi), unless donor provides otherwise (Art. 753)

B. Special provisions
1. Reservation by donor of power to dispose (in whole or in part) or to
encumber property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to another (Art.
756 CC)
3. Conventional reversion in favor of donor or other
person (Art. 757)
4. Payment of donor's debt- (Art. 758)
a. If expressly stipulated -
1. donee to pay only debts contracted before the donation,
unless specified otherwise - but in no case shall donee be
responsible for
debts exceeding valaue of property donated, unless
clearly intended.
 (Art. 272; 1183)
b. If there is no stipulation - Donee answerable only for donor's debt only in case of
donation is in fraud of creditors.
5. llleal or impossible conditions

X. Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations. B. Causes of

Reduction/Revocation

1. Inofficiousness of donation (Art. 752, 771, 773; Art.

911 & 912 also govern reduction

a. Who may ask for reduction (772)

b. Rule applied - If disposable portion not
sufficient to cover two or more donations (Art.
773)

2. Subsequent birth, reappearance of child or adoption of minor by

donor (Art. 760).

C. Revocation (only)

1. Ingratitude (Art. 765)

a. Causes
b. Time to file action for revocation
(Art. 769)
c. Who may file (Art. 770)
d. Effect of revocation

1. On alienations and mortgages

(Art. 766; 767)

Cases: Eduarte v. Court of Appeals,

. 253 SCRA 391
Noceda v. Court of Appeals,
313 SCRA 504

2. Violation of condition

a. Prescription of action
 b. Transmissibility of action

Case: Yulo and Sons v. Roman Catholic Bishop of San

Pablo, G.R. No. 133705,
March 31, 2005

3. Effect of revocation or reduction - (Art. 762, 764 par.

2, 767)

4. Effect as to fruits (Art. 768)

XI. Lease

1. General characteristics (of every lease)

1. temporary duration
11. onerous
111. price is fixed according to contract duration

2. Kinds of Leases

a. Lease of things - movables and immovables

b. Lease of work or contract of labor (Arts. 1700-1712)
c. Lease of services

1. household service
11. contract for a piece ofwork (Arts. 1713-1731)
111. lease of services of common carriers
(Art. 1732-1763)

3. Lease of Things

a. concept- (Art. 1643)

b. consumable things cannot be the subject. matter of lease, except; (Art. 1645)

1. consumable only for display or advertising

(lease ad pompam et ostentationem)
11. goods are accessory to an industrial establishment, e.g. coal in a
factory

c. special characteristics of lease of things:

1. essential purpose is to transmit the use and
enjoyment of a thing
11. consensual
111. onerous
 1v. price fixed in relation to period of use or enjoyment v.
temporary

d. lease distinguished from sale, usufruct, commodatum e. period

of lease - cannot be perpetual

1. definite period - not more than 99 years

11. indefinite period:
a. rural land (Art. 1682)
b. urban land (Art. 1687)

f. assignment of lease (Art. 1649)

g. sublease (Art. 1650)

1. of House Rental Law (R.A. 877)

11. obligation of sublessee to lessor (Art. 1651)
a. fot: rents (Art. 1652)

h. Rights and obligations of lessor and lessee:

1. obligations of lessor (Art. 1654, 1661)

11. obligations of lessee (Art. 1657, 1662, 1663, 1665,
1668, 1667)
111. right of lessee to suspend payment of rentals (Art. 1658)
Case: Chua Tee Dee (Pioneer Enterprises v. CA,
G.R. No. 157568, May 18, 2004
IV. right to ask for rescission (Art. 1659, 1660)
v. lessor not obliged to answer for mere act of trespass ·
by a third person (Art. 1664)

1. Grounds for ejectment of Lessee by Lessor (Art. 1673) (Note the grounds
under the House Rental Law Query. Are they still effective?)

J. Right to ask for writ of preliminary mandatory injunction in unlawful

detainer cases (Art. 1674; 539 par. 2)

k. Implied extension of lease (Arts. 1670, 1682, 1687, 1675)

1. Right of purchaser of leased land (Art. 1676, 1677)

m. Useful improvements i n good faith made by lessee (Art.

1678)
n. Special provisions for leases of rural lands (Art. 1680-1685)

o. Special provisions for leases of urban lands (Art. 1686-1688)

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