Quasi-Contracts; Negotiorium Gestio (1992)

In fear of reprisals from lawless elements besieging his barangay, X abandoned his
fishpond, fled to Manila and left for Europe. Seeking that the fish in the fishpond were
ready for harvest, Y, who is in the business of managing fishponds on a commission
basis, took possession of the property, harvested the fish and sold the entire harvest to
Z. Thereafter, Y borrowed money from W and used the money to buy new supplies of
fish fry and to prepare the fishpond for the next crop.
a) What is the Juridical relation between X and Y during Xs absence?
b) Upon the return of X to the barangay, what are the obligations of Y to X as regards
the contract with Z?
c) Upon Xs return, what are the obligations of X as regards Ys contract with W?
d) What legal effects will result if X expressly ratifies Ys management and what would
be the obligations of X in favor of Y?
Explain all your answers.
SUGGESTED ANSWER:
(a) The juridical relation is that of the quasi-contract of negotiorum gestio. Y is the
gestor or officious manager and X is the owner (Art. 2144, Civil Code).
(b) Y must render an account of his operations and deliver to X the price he received for
the sale of the harvested fish (Art, 2145, Civil Code).
(c) X must pay the loan obtained by Y from W because X must answer for obligations
contracted with third persons in the interest of the owner (Art. 2150, Civil Code),
(d) Express ratification by X provides the effects of an express agency and X is liable to
pay the commissions habitually received by the gestor as manager (Art. 2149, Civil
Code).

Quasi-Contracts; Negotiorium Gestio (1995)

Armando owns a row of residential apartments in San Juan, Metro Manila, which he
rents out to tenants. On 1 April 1991, he left for the United States without appointing any
administrator to manage his apartments such that uncollected rentals accumulated for
three (3) years. Amparo, a niece of Armando, concerned with the interest of her uncle,
took it upon herself to administer the property. As a consequence, she incurred expenses
in collecting the rents and in some instances even spent for necessary repairs to preserve
the property.
1. What Juridical relation between Amparo and Armando, if any, has resulted from
Amparos unilateral act of assuming the administration of Armandos apartments?
Explain.
2. What rights and obligations, if any, does Amparo have under the circumstances?
Explain.
SUGGESTED ANSWER:
1. Negotiorum gestio existed between Amparo and Armando, She voluntarily took
charge of the agency or management of the business or property of her uncle without
any power from her uncle whose property was neglected. She is called the gestor
negotiorum or officious manager, (Art. 2144, NCC)
2. It is recommended by the Committee that an enumeration of any two (2) obligations
and two (2) rights as enumerated in Arts. 2145 to 2152, NCC, would entitle the examinee
to full credit.
Art. 2145. The officious manager shall perform his duties with all the diligence of a good
father of a family, and pay the damages which through his fault or negligence may be
suffered by the owner of the property or business under management.
The courts may, however, increase or moderate the indemnity according to the
circumstances of each case.
Art. 2146. If the officious manager delegates to another person all or some of his duties,
he shall be liable for the acts of the delegate, without prejudice to the direct obligation of
the latter toward the owner of the business.
The responsibility of two or more officious managers shall be solidary, unless
management was assumed to save the thing or business from imminent danger.
Art. 2147. The officious manager shall be liable for any fortuitous event:
(1) If he undertakes risky operations which the owner was not accustomed to embark
upon;

(2) If he has preferred his own interest to that of the owner;

(3) If he fails to return the property or business after demand by the owner,
(4) If he assumed the management in bad faith.
Art. 2148. Except when the management was assumed to save the property or business
from imminent danger, the officious manager shall be liable for fortuitous events
(1) If he is manifestly unfit to carry on the management;
(2) If by his Intervention h e prevented a more competent person from taking up the
management.
Art. 2149. The ratification of the management by the owner of the business produces the
effects of an express agency, even if the business may not have been successful.
Art. 2150, Although the officious management may not have been expressly ratified, the
owner of the property or business who enjoys the advantages of the same shall be liable
for obligations incurred in his interest, and shall reimburse the officious manager for the
necessary and useful expenses and for the damages which the latter may have suffered
in the performance of his duties.
The same obligation shall be incumbent upon him when the management had for its
purpose the prevention of an imminent and manifest loss, although no benefit may have
been derived.
Art. 2151. Even though the owner did not derive any benefit and there has been no
imminent and manifest danger to the property or business, the owner is liable as under
the first paragraph of the preceding article, provided: (1) The officious manager has
acted in good faith, and
(2) The property or business is intact, ready to be returned to the owner.
Art. 2152. The officious manager is personally liable for contracts which he has entered
into with third persons, even though he acted in the name of the owner, and there shall
be no right of action between the owner and third persons. These provisions shall not
apply:
(1) If the owner has expressly or tacitly ratified the management, or
(2) When the contract refers to things pertaining to the owner of the business,
(NOTE: It is recommended by the Committee that an enumeration of any two (2)
obligations and any two (2) rights as enumerated in Arts. 2145 to 2152, NCC would
entitle the examinee to full credit.)

Quasi-Contracts; Negotiorium Gestio (1993)

In September, 1972, upon declaration of martial rule in the Philippines. A, together with
his wife and children. disappeared from his residence along A. Mabini Street. Ermita,
Manila. B, his immediate neighbor, noticing that mysterious disappearance of A and his
family, closed the doors and windows of his house to prevent it from being burglarized.
Years passed without B hearing from A and his family, B continued taking care of As
house, even causing minor repairs to be done at his house to preserve it. In 1976, when
business began to perk up in the area, an enterprising man. C, approached B and
proposed that they build stores at the ground floor of the house and convert its second
floor into a pension house. B agreed to Cs proposal and together they spent for the
construction of stores at the ground floor and the conversion of the second floor into a
pension house. While construction was going on, fire occurred at a nearby house. The
houses at the entire block, including As were burned. After the EDSA revolution in
February 1986, A and his family returned from the United States where they took refuge
in 1972. Upon learning of what happened to his house. A sued B for damages, B pleaded
as a defense that he merely took charge of his house under the principle of negotiorum
gestio. He was not liable as the burning of the house is a fortuitous event.
Is B liable to A for damages under the foregoing circumstances?
SUGGESTED ANSWER:
No. B is not liable for damages, because he is a gestor in negotiorum gestio (Art. 2144,
Civil Code) Furthermore, B is not liable to A because Article 2147 of the Civil Code is not
applicable.
B did not undertake risky operations which the owner was not accustomed to embark
upon:
a) he has not preferred his own interest to that of the owner;
b) he has not failed to return the property or business after demand by the owner; and
c) he has not assumed the management in bad faith.
ALTERNATIVE ANSWER:
He would be liable under Art. 2147 (1) of the Civil Code, because he used the property
for an operation which the operator is not accustomed to, and in so doing, he exposed
the house to increased risk, namely the operation of a pension house on the second floor
and stores on the first floor.
From the ANSWERS TO BAR EXAMINATION QUESTIONS in CIVIL LAW by the
UP LAW COMPLEX and PHILIPPINE ASSOCIATION OF LAW SCHOOLS.
http://lawtechworld.com/blog/?p=1324