Professional Documents
Culture Documents
Institute of Law
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PRELIMINARIES
ART. 2, NCC
When Laws Become Effective
The effectivity of a law will depend on
whether or not it has provided a specific
date for its effectivity, such that:
ART. 3, NCC
Ignorance of the law excuses no one
from compliance therewith. (Ignorantia
legis non excusat). (1985, 1996 Bar)
Art. 4, NCC
The law provides for the future, the
judge for the past. (Lex de futuro judex
de preterio)
2.
Art. 5, NCC
Mandatory/Prohibitory Laws
Includes
family rights
& duties,
status,
condition &
legal
capacity
Exception:
Art. 26, par.
2 of Family
Code
LEX REI
SITAE
Art.16,NCC
Law of the
place
where the
property is
situated is
the basis
for
determining
law
applicable
Includes
both real &
personal
property
Exceptions:
(AICO)
1. . Amount
of
succession
al rights
2 Intrinsic
validity of
the
provisions
of a will
3. Capacity
to succeed
4. Order of
succession
LEX LOCI
CELEBRATIONIS
Art. 17, NCC
Law of the place
where the contract
was executed is
the basis for
determining law
applicable
Article 19,
NCC
Elements of an
abuse of
rights:
1. There is a
Legal Right
2. Which is
exercised in
bad faith
3. For the sole
intent of
prejudicing or
injuring
another
Article 20,
NCC
Speaks of
the general
sanction for
all other
provisions of
law which do
not specially
provide for
their own
sanction.
The act is
contrary to
law.
Done
intentionally.
The act is
done either
wilfully or
negligently.
HUMAN RELATIONS
Art. 19
Principle Of Abuse Of Right
Exceptions:
1. Art. 26, par. 1 of
Family Code.
2. Intrinsic validity
of contracts
Art. 21.
Recovery Of Damages Even Without
Positive Law
Art. 21 Distinguished From Art. 20
In Banal vs. Tadeo, G.R. No. L-891125, Dec. 11,1987, the SC held that
regardless of whether or not a special
law so provides, indemnification of the
offended party may be on account of
the damage, loss or injury directly
suffered as a consequence of the
wrongful act of another. The indemnity
which a person is sentenced to pay
forms an integral part of the penalty
Art. 20
ART. 20
Indemnity For Willful or Negligent Acts
This is founded on the basic rule that
every person who is criminally liable
shall also be civilly liable. (Art. 100,
RPC)
Art. 21
ART. 22
Principle Against Unjust Enrichment:
No person shall unjustly enrich himself at
the expense of another. (Nemo cum
alterius detrimento locupletari potest)
ART. 27
Refusal Or Neglect In The Performance
Of Official Duty
ART. 28
Unfair Competition consists in
employing deception or any other means
contrary to good faith, by which any
person shall pass off the goods
manufactured by him or in which he deals,
or his business, or services for those of
the one having established goodwill, or
committing any acts calculated to produce
such result. (Sec. 29, RA No. 166)
ART. 25
Curtailing Thoughtless Extravagance
Requisites For Filing Of Actions To
Stop Extravagance
(Keyword: GWEP)
1. There is thoughtless extravagance
in expenses;
2. The extravagance is for pleasure
or display;
3. There is a period of acute public
want or emergency;
4. The case is filed in court by a
governmental institution or private
charitable institution. (Pineda)
ART. 31.
Obligation not Arising from a Crime
Independent Civil Action one that is
brought distinctly and separately from a
criminal case allowed for considerations of
public policy, because the proof needed
for civil cases is less than that required for
criminal cases; but, with the injunction in
general that success in financially
recovering in one case should prevent a
recovery of damages in the other.(Paras)
Art. 29
Instances When Civil Action Is Proper
Despite Acquittal In A Criminal Case
Art. 32
Liability For Violation Of Constitutional
Civil Liberties
Art. 30.
Civil
Liability Arising
From
Unprosecuted Criminal Offense
an
Action
For
And Physical
a
b
c
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
PERSONS
Person any being, natural or artificial,
JURIDICAL
CAPACITY
Fitness to be the
subject of legal
relations
Passive
Inherent
Merely acquired
Cannot be limited or
restricted
Can be restricted,
modified or limited
CAPACITY TO ACT
Minority;
Insanity or Imbecility;
State of being Deaf-mute;
Prodigality - the state of
squandering money or property
with a morbid desire to prejudice
the heirs of a person. (Martinez v.
Martinez, 1 Phil. 182);
Absence;
Civil Interdiction;
Family Relations;
Alienage;
Trusteeship;
Insolvency. (Arts. 38 and 39,
NCC)
Active
ART. 37
Civil
Personality the external
manifestation of either juridical capacity or
capacity to act; may be defined as the
aptitude of being the subject of rights and
obligations. (Supra.)
Birth determines personality but
the conceived child is considered
born for all purposes that are
favorable to it, provided that it is
born later with the conditions
specified by the law. (Art. 40,
NCC) (1996 Bar)
EXCEPTION: If the fetus had an intrauterine life of less than 7 months, it is not
deemed born if it dies within 24 hours after
complete delivery from maternal womb.
(Art. 41, NCC)
ART. 42
Death Extinguishes Civil Personality
What Determines The Effects Of Death
(Keyword: CLW)
1. Law;
2. Contract; and
3. Will. (Art. 43, NCC)
Art. 43
Presumption On Survivorship - If there
is a doubt, as between two or more
persons who are called to succeed each
other, as to which of them died first,
whoever alleges the death of one prior to
the other, shall prove the same; in the
absence of proof, it is presumed that they
died at the same time and there shall be
no transmission of rights from one to the
other. (Art. 43, NCC)
Art. 46
Rights Of Juridical Persons
(Keyword: PAO)
1. To bring civil or criminal actions;
2. To acquire and possess property
of all kinds;
3. To incur obligations. (Art. 46,
NCC)
FAMILY RELATIONS
Marriage
(Keyword: SFG)
An inviolable social institution;
Foundation of the family;
Its nature, consequences and
incidents are governed by law and
not subject to stipulation except
marriage settlement may fix
property relations. (Art. 1, FC)
MARRIAGE
1. Both a contract
and a social
Institution
2. Nature,
consequences and
incidents are
governed by law
(exception:
marriage settlement
provisions)
3. Can be dissolved
only by death or
annulment
ART. 2
Essential requisites of a valid marriage
(Keyword: Leg-Con)
1. Legal capacity of the contracting
parties who must be a male and a
female; and
2. Consent freely given in the
presence of the solemnizing
officer.
Art. 3
Formal Requisites of Marriage
(Keyword: A-Li-Ce)
1. Authority of solemnizing officer;
2. Valid marriage license (subject to
exceptions); and
3. Marriage ceremony which takes
place with the appearance of the
contracting parties before the
solemnizing officer and their
personal declaration that they take
each other as husband and wife in
the presence of not less than 2
witnesses of legal age.
ORDINARY
CONTRACTS
1. Merely a contract
2. Agreement
depend primarily
on stipulations
entered into by
parties
3. Can be ended by
mutual agreement
and by other legal
causes
Art. 4
Effects Of Absence, Defect Or
Irregularity In The Requisites Of
Marriage
1. Absence Of Essential Or Formal
Requisites marriage is VOID AB
INITIO, except as stated in Article
35(2) of the Family Code where
marriage was contracted with
either or both parties believing in
good faith that the solemnizing
officer had the legal authority to do
so. (Art. 4, 1st par., FC.)
2. Defect In Essential Requisites
marriage is VOIDABLE. (Art. 4,
2nd par., FC);
3. Irregularity In Formal Requisites
marriage is VALID but will subject
the party or parties responsible for
the irregularity to civil, criminal
and/or administrative liability (Art.
4, 3rd par., FC).
Art. 7
Persons
Qualified
To
Solemnize
Marriage
(Keyword: CMP)
1. Mayors (Sec. 444 (xviii) of RA No.
7160, The Local Government
Code)
MARRIAGE
CERTIFICATE
Not an essential
requirement
Mere evidence of
Marriage
Must be
Registered in
Local civil
Registrar
Marriages
Exempted
From
Marriage License Requirement
(Keyword: MORAL)
10
The
ART. 20
Life of a Marriage License
The license shall be valid in any part
of the Philippines for a period of 120 days
from the date of issue, and shall be
deemed automatically cancelled at the
expiration of said period. (Art. 20, FC)
ART. 34
Ratification of Marital Cohabitation
Requisites for Ratification of Marital
Cohabitation
1. The man and woman must have
been living together as husband
and wife for at least five years
before the marriage;
2. The parties must have no legal
impediment to marry each other;
3. The fact of absence of legal
impediment must be present at
the time of marriage, and during
the 5 year cohabitation;
4. The parties must execute an
affidavit stating that they have
lived together for at least 5 years;
5. The solemnizing officer must
execute a sworn statement that he
ascertained the qualifications of
the parties and that he found no
legal impediment. (Manzano v.
Judge Sanchez, A.M. No. MTJoo-1329, March 8, 2001)
This
incapacity
need
not
necessarily be manifested before
or during the marriage although it
is a basic requirement that the
psychological defect be existing
during the marriage. (Art. 36, FC)
Essential marital obligations are
set forth under Art. 68 which
provides that the husband and
wife are obliged to live together,
observe mutual love, respect and
fidelity, and render mutual help
and support.
Psychological incapacity as a
ground for declaration of nullity of
11
Physical Incapacity
This refers to sexual
impotence or to the
physical
inability of a spouse to
perform sexual act.
It is a ground for
annulment of marriage
for being voidable.
Effect on
property
There is no
conjugal
partnership
(only a coownership).
How
marriage is
impugned
Directly or
collaterally
Only directly
Imprescriptibl
e
Within 5
years from
celebration of
marriage,
except if
there is fraud.
Period will be
counted from
discovery of
fraud.
Prescriptive
period
Judicial
declaration
Nature
Susceptibility
of
convalidation
Effect on
property
Distinction
between
Psychological
Incapacity and Physical Incapacity
Effect on
children
Nature
Effect on
children
Susceptibility
of
convalidation
VOID
MARRIAGES
Non-existent
from
solemnization
Illegitimate
(except under
Article 36 and
53)
Can never be
convalidated
Judicial
declaration
How
marriage is
impugned
VOIDABLE
MARRIAGES
Valid until
annulled
Legitimate
Prescriptive
period
Can be
convalidated
by
cohabitation
Of parties
Absolute
community
property
except if
other
property
regime was
agreed upon.
Necessary
even if void
Non-existent
from
solemnization
Can never be
convalidated
There is no
conjugal
partnership
(only a coownership).
Illegitimate
(except under
Article 36 and
53)
Necessary
even if void
12
Centralized Bar Operations 2007
Valid until
annulled
Can be
convalidated
by
cohabitation
of parties
Absolute
community
property
except if
other
property
regime was
agreed upon.
Legitimate
Necessary
Directly or
collaterally
Only directly
Imprescriptibl
e
Within 5
years from
celebration of
marriage,
except if
there is fraud.
Period will be
counted from
discovery of
fraud.
Void Marriages
(Keyword: BILAMPS)
Necessary
Art. 41
Requisites For The Declaration Of
Presumptive Death Of Spouse Under
Art. 41 (Keyword: SWRM)
13
homosexuality
or
lesbianism
existing at the time of the
marriage. (Art. 46, FC)
c. Testamentary
disposition
made by one in favor of
another shall also be revoked
by operation of law (Art. 44,
FC).
Art. 47
Persons Who May File For Annulment
And Their Corresponding Prescriptive
Periods
5.
6.
Ground for
Annulment
Who can
file action
Prescriptiv
e period
(1) Party
underage
Within 5yrs.
After 21y/o
(2)Parent or
guardian
Before 21
y/o
Fraud
The injured
party
Within 5yrs.
from
discovery of
fraud
Force,
intmidation
, or undue
influence
The injured
party
Within 5yrs.
from
cessation of
cause
Impotence
of one party
The potent
party
Within 5yrs.
after
marriage
Serious
sexually
transmissi
ble disease
The healthy
party
Within 5yrs.
after
marriage
Lack of
parental
consent
Insanity of
one party
(1) The
sane
spouse
(2)
Guardian of
insane
spouse
(3) Insane
spouse
Art. 46
Acts That Constitute Fraud Under Art.
45 (Keyword: CAPS) (1978 Bar)
1. Non-disclosure of a previous
conviction by final judgment of the
other party of a crime involving
moral turpitude;
2. Concealment by the wife of the
fact that at the time of the
marriage, she was pregnant by a
man other than her husband;
3. Concealment of a sexually
transmissible disease, regardless
of its nature, existing at the time of
the marriage; or
4. Concealment of dug addiction,
habitual
alcoholism,
or
Convalidati
on or
Ratification
Free
cohabitation
after
reaching
21.
Free
cohabitation
after
knowledge
of fraud.
Free
cohabitation
after cause
has
disappeare
d.
Cannot be
ratified but
action
prescribes.
Cannot be
ratified but
action
prescribes.
Before
death of
other party
-doDuring lucid
interval or
after
regaining
sanity, also
before
death of
other party
Free
cohabitation
after insane
regains
sanity.
14
3.
4.
5.
6.
7.
8.
LEGAL
SEPARATION
(a) The cause for
legal separation
arises after the
marriage celebration.
(c) Annulment
dissolves the marriage
bond; the parties are
free to marry again.
ANNULMENT
9.
10.
Art. 56
Grounds For Denying Legal Separation
(Keyword: C4MP)
1. Condonation of offense or act
complained of;
2. Consent given in commission of
offense or act complained of;
3. Connivance between parties;
4. Action barred by Prescription;
5. Both parties have given Ground
for
LS
(Mutual
guilt
or
Recrimination);
6. Collusion between parties. (Art.
56, FC)
Recrimination - a counter-charge in a suit
for divorce or legal separation that the
complainant is also guilty of an offense
constituting a ground for divorce or legal
separation. (Blacks Law Dictionary)
Note: The prescriptive period for the filing
of an action for legal separation is 5 years
from occurrence of cause. (Art. 57, FC)
Art. 55
Grounds For Legal Separation
(Keyword: BRA FLAPS) (1975 Bar)
1. Drug
addiction
or
habitual
alcoholism of respondent;
2. Contracting of respondent of
subsequent bigamous marriage
15
Art. 66
Effects Of Reconciliation
1. Legal separation proceedings, if
still pending, shall be terminated in
whatever stage;
2. Final decree of legal separation
shall be set aside, but separation
of property and any forfeiture of
share already effected shall
subsist, unless spouses agree to
revive their former property regime
or adopt any other regime. (Art.
66, FC);
3. Joint custody over the children is
restored.
Art. 63
Effects Of Decree Of Legal Separation
Art. 68
Personal Obligation Of Husband And
Wife: (Keyword: LLH)
1. Spouses
entitled
to
live
separately, but marriage bonds
not severed;
2. Absolute community or conjugal
partnership
dissolved
and
liquidated but offending spouse
shall have no right to any share of
net profits earned which shall be
forfeited in favor of common child,
child of offending spouse by
previous marriage, or in default
thereof innocent spouse;
3. Custody of minor children shall be
awarded to innocent spouse;
4. Offending spouse disqualified to
inherit from innocent spouse by
intestate succession. Moreover,
provisions in favor of offending
spouse in the will of innocent
spouse revoked by operation of
law. (Art. 63, FC);
5. Innocent spouse may revoke
donations made by him or her in
favor of offending spouse;
6. Innocent spouse may revoke
designation of offending spouse
as beneficiary in any insurance
policy, even if such designation
were irrevocable. (Art. 64, FC):
7. Cessation of the obligation of
mutual support. (Art. 198, FC);
8. The wife shall continue using her
name and surname employed
1. Live together;
2. Observe mutual love, respect and
fidelity;
3. Render mutual help and support
(Art. 68, FC)
Instances Where Wife Is Justified To
Leave Husband And Thereby Select Her
Own Domicile Or Residence
(Keyword: TIMVC)
1. If the husband lives as a
vagabond having no fixed home.
(1 Manresa 329);
2. If the husband maltreats her.
(Goitia v. Campos Rueda, 35 Phil.
252)
3. If the husband insists on his
immoderate or barbaric demands
from
the
wife
for
sexual
intercourse (Goitia v. Campos
Rueda, supra);
4. If the wife is asked by the husband
to leave the conjugal place
threatening to use violence upon
her if she return home. (Garcia v.
Santiago, 53 Phil. 952);
5. If
the
husband
commits
concubinage and continuously
indulges in such illicit relationship.
(Dadivas v. Villanueva, 54 Phil.
92).
16
Art 73
The Right Of Either Spouse To Engage
In A Profession Or Occupation Or To
Engage In Business
Art. 74
Property Relations Of The Spouses (In
Sequential Order)
(Keyword: SFL)
1. marriage settlements executed
before the marriage;
2. the provisions of the Family Code;
3. the local customs. (Art. 74, FC)
17
b. the other
participate
is unable to
(e.g. abroad)
Exclusive
Property
Of
Spouses:
(Keyword: PGRP)
1. Property brought to the marriage
as his or her own (paraphernalwife; capital-husband)
2. Those acquired by gratuitous title
3. Those acquired by right of
redemption, by barter or exchange
with the exclusive property of one
of the spouses;
4. Those
purchased
with
the
exclusive money of the spouses.
Rules Where An Improvement (Paid For
By Conjugal Funds) Is Introduced On
Land Exclusively Owned By One Of The
Spouses
a. Reverse accession (the land
follows the improvement) if the
cost of the improvement and the
increment,
i.e.
what
the
improvement contributes to the
increase in the value of the whole
thing, are more than the value of
the principal property at the time
of the improvement. Thus, the
entire property becomes conjugal.
b. Accession if the cost of the
improvement and the plus value
are less than the value of the
principal at the time of the
improvement. Thus, the entire
property becomes exclusive.
c. Ownership of the entire property
shall vest on the owner-spouse or
the partnership as the case may
be upon the reimbursement of the
improvement.
d. Reimbursement time is at the time
of the liquidation of the CPG.
e. The value to be paid is the value
at the time of the improvement
18
5. Delivery of
presumptive
legitimes in the
following instances:
a. if there is death of
one of the spouses,
the legitimes of the
heirs will no longer
be presumptive with
respect to the
deceased spouse
but actual;
b. legal separation;
c. annulment,
d. judicial separation
of property,
e. reappearance of
the absent spouse
which terminates the
2nd marriage.
Neither party can
encumber or dispose
by acts inter vivos
his or her share in
the
property
acquired
during
cohabitation without
the consent of the
other
until
after
termination of the
cohabitation.
Upon termination of
the union, the share
of a party shall
accrue to him or her
estate.
STEPS IN LIQUIDATION
APC
CPG
1. Inventory of:
1. Inventory of the
a. community
CPG assets.
property;
b. separate property
of the wife;
c. separate property
of the husband.
2. Payment of
2. Restitution of
community debts
advances made to
-first, pay out of
each spouse.
community assets;
-if not enough,
husband and wife
are solidarily liable
with their separate
property.
3. Delivery to each
3. Payment of debts
spouse his or her
to each spouse.
separate property, if
any.
4. Division of the net 4. Payment of
community assets.
obligations to 3rd
-with regard to the
persons.
family home:
a. to be adjudicated
to the spouse with
whom the majority of
the common children
choose to remain, or
b. according to
agreement of the
parties, or
c. court decision
There can be no
forfeiture of share of
a party in favor of
the common children
if there is no void
marriage and said
party acted in bad
faith.
5. Delivery of
exclusive
properties.
6. Payment of
losses and
deterioration of
movable belonging
to each spouse.
7. Delivery of
presumptive
legitimes.
8. Division of
profits(net
remainder of
conjugal
partnership
properties)
There
is
prohibition in
law.
no
the
Upon termination of
the union, the share
of a party who is
validly married shall
accrue
to
the
absolute community
or
conjugal
partnership existing
in said marriage.
There can be no
forfeiture if the party
in bad faith is
validly married to
another.
ART. 82
Donation Propter Nuptias a gift on
account of marriage (BLD).
(propter means before) wedding
gifts, but not all wedding gifts are
donations propter nuptias, for said
wedding gifts may come after the
celebration of marriage (Paras).
Requisites Of Donation Propter Nuptias
19
Art. 147
Special Co-Ownership
Distinctions Between Art. 147 and Art.
148 (1978 Bar)
Art. 86
Instances When The Donor May Revoke
A Donation By Reason Of Marriage
(Keyword: JACCRIL)
1. When marriage is annulled, and
donee acted in bad faith;
2. If marriage is not celebrated;
Article 147
Parties live exclusively
with each other without
marriage or under a
void marriage.
Parties are capacitated
to marry each other.
Wages and salaries are
owned in equal shares.
Properties acquired by
both of them through
their work and industry
are governed by the
rules on co-ownership.
Even if the contribution
is not actual but
consists only of efforts
exerted in the care and
maintenance of the
family and household,
the
same
is
still
considered
joint
contribution.
Coverage:
a. wages and salaries of either man
and the woman;
b. property acquired through work or
industry of either or both
Article 148
Parties do not live
exclusively with each
other as both or one of
them is married to
another.
Both or one of them is
not
capacitated
to
marry.
Ownership of wages
and salaries is not
provided.
(Salaries of the party
married
to
another
belong to the existing
ACP or CPG).
Only
properties
acquired by both of
them
through
their
actual
joint
contributions shall be
owned in common in
proportion
to
their
respective
contributions.
Classification Of Filiation
(Keyword: NA)
1. By
nature
(legitimate
illegitimate); and
2. By adoption. (Art. 163, FC)
or
ART. 164
Legitimate Child one conceived or born
during the marriage of the parents, unless
its status is impugned for causes provided
for in law. (Art. 164, FC)
Note: If there is no presumption about the
validity of the marriage, the child
concerned cannot invoke the presumption
of legitimacy. (Board of CID v. de la Rosa,
197 SCRA 853)
Artificial Insemination a medical
procedure by which the semen is
introduced into the vagina by means other
than copulation for the purpose of
procreation. (Pedro Solis, Legal Medicine,
p. 601)
Art. 157
Value Of Family Home To Be Exempt
(At The Time Of Constitution)
1. P300,000 for urban areas; and
2. P200,000 for rural areas. (Art.
157, FC.)
Art. 163
Paternity And Filiation
21
1.
Who are
considered as
legitimate or
illegitimate
child/children?
22
LEGITIMATE
Children conceived or born During a valid marriage.
As a result of artificial inseminati
provided that
BEFORE the artificial insemination:
Proof of
filiation
Rights of
legitimate and
illegitimate
children
1.
2.
3.
Who can claim
legitimacy or
illegitimacy?
When to claim
the status of
legitimacy or
illegitimacy?
23
4.
Art. 183
Adoption legal process pursuant to
state statute in which a childs legal rights
and duties toward his natural parents are
terminated and similar rights and duties
toward
his
adoptive
parents
are
substituted. (BLD)
the process of making a child,
whether related or not to the
adopter, possess in general, the
rights accorded to a legitimate
child (Prasnick v. Republic, 98
Phil. 665)
Domestic Adoption Act of 1998 (RA
8552)
Persons Qualified to Adopt (1976 Bar)
1. Any Filipino citizen;
a) Of legal age;
b) In possession of full civil
capacity and legal rights;
c) Of good moral character;
d) Has not been convicted of any
crime
involving
moral
turpitude;
e) Emotionally
and
psychologically capable of
caring for children;
f) At least 16 years older than
adoptee, and who is in a
position to support and care
for his/her children in keeping
with the means of the family.
24
3.
4.
5.
6.
PRESCRIPTION
Prescription one acquires ownership
and other real rights through the lapse of
time in the manner and under the
conditions laid down by law, and in the
same way, rights and actions are lost. (Art.
1106, CC)
CLASSIFICATION OF PRESCRIPTION
I. ACQUISITIVE PRECRIPTION
1. Ordinary Prescription
Requisites: (Keyword: COCPGJ)
a) Capacity
to
acquire
by
prescription;
ART. 216
26
2. Extraordinary Prescription
Requisites:
a) The capacity to acquire by
prescription;
b) The object must be susceptible of
prescription;
c) The possession must be in the
concept of owner, public, peaceful,
continuous and uninterrupted;
d) The period of possession must be
eight (8) years if movable or thirty
(30) years if it is immovable.
PRESCRIPTION
Concerned with the
fact of delay
Question or matter of
Question of inequity
time
LACHES
Statutory
Not statutory
Applies at law
Applies in equity
I. OBLIGATIONS
27
OBLIGATION
1)
2)
3)
4)
5)
Determinate
Generic
1. compel specific
performance;
2. damages,
exclusive or in
addition to specific
performance;
3. entitlement to
fruits, interests from
the time the
obligation to deliver
arises.
1.ask for
performance of the
obligation
2. ask that the
obligation be
complied with at the
expense of the
debtor
3. damages in case
of breach
RIGHTS OF A CREDITOR
OBLIGATIONS OF THE DEBTOR
Determinate
1. specific
performance;
Generic
1. deliver the thing
which is neither of
superior nor inferior
quality;
QUASI-CONTRACTS those
juridical relations arising from lawful,
voluntary and unilateral acts, based on
the principle that no one shall be
unjustly enriched or benefited at the
expense of another.
arises
whenever a person voluntarily takes
charge of the agency or management
of the business or property of another
without any power or authority from
the latter
2. Solutio indebiti arises whenever a
person unduly delivers a thing through
mistake to another who has no right to
demand it.
4. pay damages in
case of breach of the
obligation by reason
of
delay,
fraud,
negligence
or
contravention of the
tenor thereof.
NATURE OF OBLIGATIONS
1. Personal Obligations obligations to
do
a) Positive
b) Negative
2. Real Obligations obligations to give
a) Determinate or specific
b) Generic
28
3 Kinds:
1. Mora solvendi delay of the debtor to
perform his obligation
2. Mora accipiendi delay of the creditor
to accept the delivery of the thing w/c is
the object of the obligation
3. Compensatio morae delay of the
parties in reciprocal obligation
Negative Personal
Obligations
The creditor can:
(1) have the
obligation undone at
the expense of the
obligor; and
(2) ask for
damages.(Art. 1168)
When incurred:
GENERAL RULE: There must be a
DEMAND (judicial or extra-judicial) before
delay may be incurred.
EXCEPTIONS: (SLENA)
1. stipulation/obligation or law expressly
so declares
2. time is of the essence
3. demand is useless as when obligor
has rendered beyond his power to
perform
4. there is acknowledgment of default
5. law
BREACH OF OBLIGATIONS
1. Voluntary
debtor,
in
the
performance of the obligation, is guilty
of:
a.default (mora)
b.fraud (dolo)
c. negligence (culpa)
d.contravention of the tenor of the
obligation
FRAUD
Incidental Fraud/
dolo incidente
(Art. 1170)
Causal Fraud/
Dolo causante
(Art. 1338)
Purpose is to evade
the normal
fulfillment of the
obligation
Purpose is to secure
the consent of the
other to enter into a
contract
29
3. Results in the
non-fulfillment or
breach of the
obligation
Results in the
vitiation of consent
Determinate
4. Gives
rise to a
GivesGeneric
rise to a right of
Obligation
right Obligation
of the creditor to
an innocent
party
recover
damages
from
to
annul
the
contract
obligation is
obligation is not
the debtor
extinguished
extinguished based
REMEDIES
OF
CREDITOR
TO
PROTECT HIS CREDIT:
1) Exhaustion of debtors property
2) Accion
subrogatoria
to
be
subrogated to all the rights and
actions of the debtor save those which
are inherent in his person
3) Accion pauliana - impugn all the acts
w/c the debtor may have done to
defraud them.
NEGLIGENCE
FORTUITOUS EVENT
PURE OBLIGATION
one
whose
effectivity
or
extinguishment does not depend upon
the fulfillment or non-fulfillment of a
condition or upon the expiration of a
term or period
CONDITIONAL OBLIGATION
1.
Before
the
fulfillment of the condition, the right which
the creditor has already acquired by virtue
of the obligation is subject to a threat of
extinction.
2.
Upon fulfillment of
the condition, the parties shall return to
each other what they received.
EFFECTS OF LOSS, DETERIORATION
AND
IMPROVEMENT
IN
REAL
OBLIGATIONS
1. Loss
a. without
debtors
fault
obligation is extinguished
b. with debtors fault debtor pays
damages
2. Deterioration
a. without
debtors
fault
RECIPROCAL OBLIGATIONS
EXCEPTIONS:
1. pre-existing obligation
2. if obligation is divisible
3. in simple or renumenatory donations
4. in testamentary dispositions
5. in case of conditions not to do an
impossible thing
or
of
in
&
RIGHT TO RESCIND
GENERAL RULE: The right to rescind
needs judicial approval.
EXCEPTIONS:
1. If there is an express stipulation of
automatic rescission
2. When the debtor voluntarily
returned the thing
Constructive
fulfillment
of
Suspensive Condition: the condition
shall be deemed fulfilled when the
obligor prevents its fulfillment
31
Fulfillment
Influence on
Obligation
Retroactivity
of Effects
Effect of will
of debtor
Future
and
uncertain event
Future
and
uncertain event
which may or
may
not
happen
Influences the
very existence
of
the
obligation itself
Has retroactive
effect
If left to will of
debtor,
obligation
is
affected
TERM /
PERIOD
Future
and
certain interval
of time
Interval of time
which
must
come
Influence the
time
or
demandability
of obligation
No retroactive
effect unless
theres
an
agreement
If left to will of
debtor,
obligation
is
not affected
Facultative
May be
complied with by
substitution of
another object
due
Pertains only to
debtor
Loss of object
w/o fault of
debtor may
extinguish the
obligation
Loss before
object is due will
not make debtor
liable
Nature
Requisites
Effect of
Breach
Effect of
death of
debtor
Indivisibility
Refers to the
prestation /
objects of
obligation
Plurality of
subjects is
not required
Due to
breach,
obligation is
converted to
indemnity
since
indivisibility of
object is
terminated
Heirs of
debtor bound
to perform the
same
prestation
Alternative
Object
Compliance
Choice
Effect of
fortuitous loss
Effect of culpable
loss
Several objects
are alternatively
due
May be complied
with by the
delivery of any of
the object
alternatively due
May be
exercised by
debtor, creditor
or 3rd person
All objects due
must be lost to
extinguish the
obligation
Loss of any of
the objects
alternatively due
may make
debtor liable
KINDS OF SOLIDARITY
1. Active solidarity
solidarity of creditors
each
creditor
is
empowered to exercise against the
debtor not only the rights which
correspond to him, but also all the
rights which correspond to the other
creditors,
with
the
consequent
obligation to render an accounting of
his acts to such creditors
2. Passive solidarity
solidarity of debtors
Solidarity
Refers to the legal
tie / vinculum, to
the parties of the
obligation
Plurality is
indispensable
Converted into
indemnity but
solidarity character
remains
DEFENSES
AVAILABLE
TO
A
SOLIDARY DEBTOR:
1. Defenses derived from the very nature
of the obligation
2. Defenses personal to him or pertaining
to his own share
3. Defenses personal to the others, but
only as regards that part of the debt for
w/c the latter are responsible
Terminates
solidarity since
legal tie is not
transmissible to
heirs
EXCEPTIONS:
1. When the obligation expressly
stipulates the contrary
2. When the different prestations
constituting the objects of the
obligation are subject to different
terms and conditions
3. When the obligation is in part
liquidated and in part unliquidated
MODES OF EXTINGUISHMENT OF
OBLIGATIONS (LFC3NARP2)
1. Loss of the thing due
2. Fulfillment of resolutory condition
3. Compensation
4. Condonation or remission of the debt
5. Confusion or merger of rights of the
creditor and debtor
6. Novation
7. Annulment
8. Rescission
9. Prescription
10. Payment or performance
PAYMENT
OR
PERFORMANCE
(1998, 1977 Bar)
PURPOSE OF PENALTY:
1) To insure the performance of the
obligation
2) to liquidate the amount of damages to
be awarded to the injured party in
case of breach of the principal
obligation
3) in certain exceptional cases, to punish
the obligor in case of breach of the
principal obligation
Integrity of Payment
GENERAL RULE: A debt shall not be
understood to have been paid unless the
thing or service in which the obligation
consists has been completely delivered or
rendered, as the case may be.
EXCEPTIONS: (Keyword: PASS)
1. When the obligation has been
substantially performed in good faith
2. When
the
obligee
accepts
performance,
knowing
its
incompleteness or irregularity & w/out
expressing any protest or objection
3. When there is an express stipulation
4. When the debt is in part liquidated and
in part unliquidated
EXCEPTIONS:
1. when made by a third person who
has an interest in the fulfillment of
the obligation
34
transmission of ownership of a
thing by the debtor to the creditor as
an accepted equivalent of the
performance of the obligation.
Requisites:
1. existence of a money obligation
2. alienation to the creditor of a
property by the debtor with the
consent of the former
3. satisfaction
of
the
money
obligation of the debtor
c) Payment by Cession
Requisites:
1. plurality of debts
2. partial or relative insolvency of the
debtor
3. acceptance of the cession by the
creditors
DATION IN PAYMENT BYT CESSION
a) Application of Payment
DATION IN PAYMENT
1. one creditor
35
PAYMENT BY
CESSION
1. plurality of
creditors
2. not necessarily in
state of financial
difficulty
2. debtor must be
partially or relatively
insolvent
3. thing delivered is
considered as
equivalent
of performance
3. universality of
property of debtor
is what is ceded
4. payment
extinguishes
obligation to
the extent of the
value of the thing
delivered as agreed
upon, proved or
implied from the
conduct of the
creditor
4. merely releases
debtor for net
proceeds of things
ceded or assigned,
unless there is
contrary intention
Tender of Payment
GENERAL
RULE:
extinguished.
Obligation
is
EXCEPTIONS:
a. when by law, obligor is liable even
for fortuitous event;
b. when by stipulation, obligor is
liable even for fortuitous event;
c. when the nature of the obligation
requires the assumption of risk;
d. when the loss of the thing is due
partly to the fault of the debtor;
e. when the loss of the thing occurs
after the debtor incurred in delay;
f. when the debtor promised to
deliver the same thing to two or
more persons who do not have
the same interest; and
g. when the debt of a certain and
determinate thing proceeds from a
criminal offense.
Consignation
Effect:
GENERAL RULE: Consignation shall
produce effects of payment only if there is
a valid tender of payment.
3. In Obligations to Do
GENERAL RULE: Obligation extinguished
when prestation becomes legally or
physically impossible.
36
CONDONATION OR REMISSION OF
THE DEBT
ASSIGNMENT OF
RIGHTS
1. Governed by Arts.
1300 to 1304
1. Governed by Arts.
1624 to 1627
2. debtors consent
is required
2. debtors consent
is not required
3. extinguishes the
obligation and gives
rise to a new one
3. transmission of
right of the creditor
to third person
without modifying
or extinguishing the
obligation
5. as far as the
debtor is concerned,
takes effect upon
notification
COMPENSATION
CONFUSION
2. there must be at
least two
obligations
2.only one
obligation
substitution or change of an
obligation by another, resulting in its
extinguishment or modification, either
by changing its object or principal
conditions, or by substituting another
in place of the debtor, or by
subrogating a third person in the rights
of the creditor.
37
KINDS:
1. As to its essence
a) Objective/Real refers to the
change either in the cause, object
or principal conditions of the
obligations
b) Subjective/Personal refers to
the substitution of the person of
the debtor or to the subrogation of
a 3rd person in the rights of the
creditor
c) Mixed
Nominate contracts
2. As to its form/constitution
a) Express when it is declared in
unequivocal terms that the old
obligation is extinguished by a
new one w/c substitutes the same
b) Implied when the old & new
obligation are incompatible w/
each other on every point
2 FORMS OF SUBSTITUTION OF
DEBTORS:
1. Expromision effected with the
consent of the creditor at the instance
of the new debtor even without the
consent or even against the will of the
old debtor.
2. Delegacion effected with the
consent of the creditor at the instance
of the old debtor, with the concurrence
of the new debtor.
Relativity
GENERAL RULE: Contract is only valid
between parties, assigns and heirs.
EXCEPTIONS:
1. Creditor pays another creditor who is
preferred, without debtors knowledge;
2. A third person not interested in the
obligation pays with the express or
tacit approval of the debtor; or
3. Even without debtors knowledge, a
person interested in the fulfillment of
the obligation pays without prejudice
EXCEPTIONS:
1. Stipulation pour atrui - stipulation in
favor of a third person. (1977 Bar)
Requisites:
(Keyword: PFAR)
a. the stipulation must be part,
not whole of the contract;
b. the contracting parties must
have clearly and deliberately
conferred a favor upon a third
person;
c. the third person must have
communicated
his
acceptance; and
d. neither of the contracting
parties
bears
the
legal
38
representation
person.
of
the
third
Requisites:
a. Existence of a valid contract
CAUSE
CONSENT
manifeste
d by the meeting of the offer and
acceptance upon the thing and the
cause which are to constitute the
contract.
EFFECT
1. Absence of
cause
2. Failure of
cause
3. Illegality of
cause
4. Falsity of
cause
5. Lesion
The
contract must bind both parties; its
validity or compliance must not be left
to the will of one of them. (Art. 1308)
Autonomy
The
parties are free to stipulate anything
they deem convenient provided that
they are not contrary to law, morals,
good customs, public order and public
policy.
Requisites:
1. Legal capacity of the contracting
parties
2. Manifestation of the conformity of
the contracting parties
3. The parties conformity to the
object, cause, the terms and
conditions of the contract must be
intelligent, spontaneous and free
from all vices of consent
4. The said conformity must be real
and not simulated or fictitious
Offer a proposal made by one party to
another to enter into a contract
Acceptance manifestation by the
offeree of his assent to the terms of the
offer
Consensual
contracts
are
perfected from the moment there is a
manifestation of concurrence between
the offer and the acceptance regarding
the object and the cause.
Consensuality
Contracts
are perfected by mere consent and
from that moment, the parties are
bound not only to the fulfillment of
what has been expressly stipulated
but also to all consequences which,
according to their nature may be in
39
OBJECT
Requisites: (Keyword: CLPD)
1. It must be within the commerce of
man
2. It must be licit or not contrary law,
morals, good customs, public
order or public policy
3. It must be possible
4. It must be determinate as to its
kind
REFORMATION OF INSTRUMENTS
Requisites: (Keyword: MMP)
1. meeting of the minds to the
contract
2. true intention is not expressed in
the instrument by reason of
mistake,
accident,
relative
simulation, fraud, or inequitable
conduct
3. clear and convincing proof of
mistake,
accident,
relative
simulation, fraud, or inequitable
conduct
CAUSE
FORM OF CONTRACTS
GENERAL RULE: Contracts shall be
obligatory, in whatever form they may
have been entered into, provided all the
essential requisites for their validity are
present.
EXCEPTIONS:
VOID
40
VOIDABLE
Contracts validly
agreed upon but, by reason of lesion
or economic prejudice, may be
rescinded in cases established by law
4. Not cured by prescription
Cured by prescription
What contracts are rescissible:
1.
those entered into by guardians where
5. Cannot be ratified
Can be ratified
the ward suffers lesion of more than
of the value of the things which are
objects thereof;
2. those agreed upon in representation
6. Assailed not only by a
contracting party but even
Assailed only by a of absentees, if the latter suffer lesion
by a 3rd person whose
contracting party by more than of the value of the
things which are subject thereof;
interest is directly affected
3. those undertaken in fraud of creditors
when the latter cannot in any manner
claim what are due them;
7. Assailed directly or
4. those which refer to things under
Assailed directly
collaterally
litigation if they have been entered into
by the CONTRACTS
defendant without the
COMPARATIVE TABLE OF DEFECTIVE
knowledge and approval of the
litigants and the court;
5. all other contracts especially declared
by law to be subject to rescission; and
6. payments made in a state of
insolvency on account of obligations
not yet enforceable
Requisites:
1. the contract must be rescissible
2. the party asking for rescission must
have no other legal means to obtain
reparation for the damages suffered
by him
3. the person demanding rescission must
be able to return whatever he may be
able to return whatever he may be
obliged to restore if rescission is
granted
4. the things w/c are the object of the
contract must not have passed legally
41
Badges of Fraud:
1. consideration of the conveyance is
inadequate or fictitious;
2. transfer was made by a debtor after a
suit has been begun and while it is
pending against him;
3. sale upon credit by an insolvent
debtor;
4. evidence of indebtedness or complete
insolvency
5. transfer of all his property by a debtor
when he is financially embarrassed or
insolvent;
6. transfer made between father & son,
where there is present any of the
above circumstances
7. failure of the vendee to take exclusive
possession of all the property
2. Ratification
Requisites:
a. there must be knowledge of the
reason which renders the contract
voidable;
b. such reason must have ceased;
and
c. the injured party must have
executed an act which expressly
or impliedly conveys an intention
to waive his right.
VOID CONTRACTS
What contracts are void:
42
(Keyword: IICOP)
1. Those whose cause, object or
purpose is contrary to law, morals
good customs, public order or
public policy;
2. Those whose object is outside the
commerce of men;
3. Those which contemplate an
impossible service;
4. Those where the intention of the
parties relative to the principal
object of the contract cannot be
ascertained; and
5. Those expressly prohibited or
declared void by law.
It is patrimonial,
and presupposes a prestation
INEXISTENT CONTRACTS
What contracts are inexistent:
(Keyword: SE)
1. Those which are absolutely
simulated or fictitious; and
2. Those whose cause or object did
not exist at the time of the
transaction.
Principle of In Pari Delicto
GENERAL RULE: When the defect of a
void contract consists in the illegality of the
cause or object of the contract and both of
the parties are at fault or in pari delicto, the
law refuses them every remedy and
leaves them where they are.
Examples
of
natural
obligations
enumerated under the Civil Code:
1. Performance
after
the
civil
obligation has prescribed;
2. Reimbursement of a third person
for a debt that has prescribed;
3. Restitution
by
minor
after
annulment of contract;
4. Delivery by minor of money or
fungible thing in fulfillment of
obligation;
5. Performance after action to
enforce civil obligation has failed;
6. Payment by heir of debt
exceeding value of property
inherited; and
7. Payment of legacy after will has
been declared void.
ESTOPPEL
a. Estoppel by silence
b. Estoppel by acceptance of
benefits
2. Technical Estoppel
a. Estoppel by deed
b. Estoppel by record
3. Estoppel by judgment
4. Laches
CREDIT
LOAN TRANSACTIONS
CREDIT
Delivery by one party
and the receipt of
other party of a given
sum of money or other
consumable thing
upon an agreement,
express or implied, to
repay the same.
Ability of a
person to borrow
money or things
by virtue of the trust or
confidence reposed by
the lender that he will
pay what he
promised.
Characteristics:
1. Real Contract delivery of the thing
loaned is necessary for the perfection
of the contract
An accepted promise to make a future
loan is a consensual contract, and
therefore binding upon the parties but it is
only after delivery, will the real contract of
loan arise.
CREDIT TRANSACTIONS
All transactions or loan of goods,
services, or money in the present
with a promise to pay or deliver in
the future.
Types:
1. Secured transactions or contracts
of real security - supported by a
collateral or an encumbrance of
property
2. Unsecured
transactions
or
contracts of personal security supported only by a promise:
Security
A. COMMODATUM
NATURE:
1. Bailee in commodatum acquires the
use of the thing but not its fruits
(unless stipulated as an incidental part
of the contract).
2. Essentially gratuitous; it ceases to be
a commodatum if any compensation is
to be paid by the borrower who
acquires the use.
3. Similar to a donation in that it confers
a benefit to the recipient.
4. Use of the thing loaned must be
temporary, otherwise the contract may
be a deposit.
5. Subject matter is generally non
consumable whether real or personal
but if the consumable goods are not
for consumption as when they are
merely for exhibition, consumable
goods may be the subject of the
commodatum.
6. Bailor need not be the owner of the
thing owned.
7. Death of either party terminates the
contract unless by stipulation, the
commodatum is transmitted to the
heirs of either or both parties.
In case of extraordinary
expenses arising from the actual use
of the thing by the bailee, they shall be
borne equally by both the bailor and
the bailee, even though the bailee
acted without fault, unless there is a
stipulation to the contrary.
he borrower has no right
to retain the thing loaned as security
against the lender except for a claim
for damages suffered because of the
flaws of the thing loaned.
In case there are two or
more bailees their obligation shall be
COMMODATUM
Obligations of
commodatum:
the
bailee
in
1. Object
Non-consumable
Consumable
2. Cause
Gratuitous
3. Purpose
Use or temporary
Possession
Consumption
Matter
Real or personal
property
Only personal
property
5.Ownership
of the thing
Retained by the
bailor
Passes to the
debtor
1. 4. Subject
LOAN
DISCOUNTING PAPER
Interest is taken in
advance
Always on a
double name
paper (two
signature appear
with both parties
held liable)
Always on a
single name
paper (i.e.
Promissory Note
with no
indorsement
other than the
maker)
MUTUUM
Equal amount of
the same kind
and quality
Debtor
8. When to
return
In case of urgent
need, even before
the expiration of
the term
solidary.
Obligations
of
commodatum:
45
the
bailor
in
There is a transfer
of ownership of the
thing delivered
Relationship
Relationship is that
between the parties
of a landlord and
is that of obligor-obligee tenant
Creditor receives
payment for his loan
COMMODATUM
A contract whereby
one party delivers to another money or
other consumable thing with the
understanding that the same amount
of the same kind and quality shall be
paid.
The obligation is
to pay and not to return because the
consumption of the thing loaned is the
distinguishing character of the contract
of mutuum from that of commodatum.
No
estafa
is
committed by a person who refuses to
pay his debt or denies its existence.
SSIMPLE LOAN/
MUTUUM
Delivery of money
or some consumable
thing with a promise
to pay an equivalent
of the same kind and
quality
There is no transfer
of ownership of the
thing delivered
Owner of the
property rented
receives
compensation or
price either in
money, provisions,
chattels, or labor
from the occupant
thereof in return for
its use (Tolentino vs.
Gonzales, 50 Phil
558 1927)
BARTER
Subject matter is
money or fungible
things
Subject matter is
non-fungible, (non
consumable) things
In commodatum ,
the bailee is bound
to return the
identical thing
borrowed when the
time has expired or
purpose served
Mutuum may be
gratuitous and
commodatum is
always gratuitous
Onerous, actually a
mutual sale
FORM OF PAYMENT:
1. If the thing loaned is money, payment
must be made in the currency
stipulated, if it is possible; otherwise it
is payable in the currency which is
legal tender in the Philippines.
2. If what was loaned is a fungible thing
other than money, the borrower is
under obligation to pay the lender
another thing of the same kind, quality
and quantity. In case is impossible to
do so, the borrower shall pay its value
at the time of the perfection of the
loan.
INTEREST
RENT
Delivery of some
non-consumable
thing in order that
the other may use it
during a certain
period and return it
to the former.
46
2. must be lawful
3. must be in writing
Compound Interest:
GENERAL RULE: Unpaid interest shall
not earn interest.
EXCEPTIONS:
1. when judicially demanded
2. when there is an express stipulation
Guidelines for the application of proper
interest rates
1. If there is stipulation: that rate shall be
applied
2. The following are the rules of thumb
for the application/imposition of
interest rates:
a) When an obligation, regardless of
its source, i.e., law, contracts,
quasicontracts, delicts or quasidelicts
is
breached,
the
contravenor can be held liable for
damages.
b) With regard particularly to an
award of interest in the concept of
actual
and
compensatory
damages, the rate of interest, as
well as the accrual thereof, is
imposed, as follows:
i. When the obligation breached
consists of payment of a sum
of money (loan or forbearance
of money), the interest shall
be that which is stipulated or
agreed upon by the parties. In
absence of an agreement, the
rate shall be twelve percent
(12%) per annum computed
from default.
No interest, however,
shall be adjudged on
unliquidated claims or
damages except when or
until the demand can be
established
with
reasonable certainty.
EXTRAJUDICIAL
1. Creation
2. Purpose
Security or to
Custody and
insure the right safekeeping
of a party to
property
or to recover in
case of
favorable
judgment
3. Subject
Matter
Movables or
immovables,
but generally
immovables
Movables only
4. Cause
Always
onerous
May be
compensated or
not, but
generally
gratuitous
5. When
must the
thing be
returned
Upon order of
the court or
when litigation
is ended
Upon demand
of
depositor
6. In whose
behalf it is
held
Person who
has a
right
Depositor or
third
person
designated
demanded
separately.
(Sentinel
Insurance Co. vs. CA, 182 SCRA 517)
47
The
chief
difference
between a voluntary deposit and a
necessary deposit is that in the former, the
depositor has a complete freedom in
choosing the depositary, whereas in the
latter, there is lack of free choice in the
depositor.
Judicial Extra-judicial
DEPOSIT
MUTUUM
Principal purpose
is safekeeping or
custody
Principal purpose is
consumption
Depositor can
demand the return
of the subject
matter at will
Subject matter
may be movable or
immovable
property
Subject matter is
only money or
other fungible thing
If
the
depositary is
capacitated, he is subject to all the
obligations of a depositary whether or not
the depositor is capacitated. If the
depositor is incapacitated, the depositary
must return the property to the legal
representative of the incapacitated or to
the depositor himself if he should acquire
capacity.
The
incapacitated
depositary does not incur the obligation of
a depositary but he is liable:
1. to return the thing deposited while
still in his possession
2. to pay the depositor the amount
which he may have benefited
himself with the thing or its price
subject to the right of any third
person who acquired the thing in
good faith
Kinds of Deposit:
1. Judicial
(Sequestration)
takes
place when an attachment or seizure
of property in litigation is ordered.
2. Extra-judicial
a. Voluntary one wherein the
delivery is made by the will of the
depositor or by two or more
persons each of whom believes
himself entitled to the thing
deposited.
b. Necessary one made in
compliance with a legal obligation,
or on the occasion of any calamity,
or by travelers in hotels and inns,
or by travelers with common
carriers.
DEPOSIT
COMMODATUM
Purpose is
Safekeeping
Purpose is the
transfer of the use
May be gratuitous
Essentially and
always gratuitous
Movable/corporeal
things only in
case of extrajudicial
deposit
48
IRREGULAR DEPOSIT
MUTUUM
Lender is bound by
the provisions of the
contract
The irregular
depositor has a
preference over
other creditors with
respect to the thing
deposited
No preference in the
distribution of the
debtors property
for
not
the
for
EXCEPTIONS:
1. When the preservation of the thing
deposited requires its use
2. When authorized by the depositor
Effect if permission to use is given:
1. If thing deposited is non-consumable,
the contract loses the character of a
deposit and acquires that of a
commodatum despite the fact that the
parties may have denominated it as a
deposit, unless safekeeping is still the
principal purpose.
2. If thing deposited consists of
money/consumable
things,
the
contract is converted into a simple
loan or mutuum unless safekeeping is
still the principal purpose in which
case it is called an irregular deposit.
49
GUARANTY
A contract whereby a
person (guarantor) binds himself to
the creditor to fulfill the obligation of
the principal debtor in case the latter
fail to do so.
2. As to its Origin
a. Conventional - agreed upon by
the parties
b. Legal - one imposed by virtue of a
provision of a law.
c. Judicial - one which is required
by a court to guarantee the
eventual right of one of the parties
in a case.
Classification of Guaranty:
1. In a broad sense
a. Personal - the guaranty is the
credit given by the person who
guarantees the fulfillment of the
principal obligation.
b. Real - the guaranty is the
property, movable or immovable.
3. As to Consideration
a.
Gratuitous
the
guarantor does not receive any
price or remuneration for acting as
such.
Necessary Deposits
1. made in compliance with a legal
obligation
50
b.
2.
3.
4.
5.
6.
SURETYSHIP
A contract whereby a person binds
himself solidarily with the principal debtor.
The reference in Art. 2047 to
solidary obligations does not mean that
surety ship is withdrawn from the
applicable provisions governing guaranty.
A surety is almost the same as a solidary
debtor, except that he himself is a principal
debtor.
Characteristics of Guaranty and
Suretyship:
1. Accessory - It is an indispensable
condition for its existence that there
must be a principal obligation.
The guarantor cannot bind himself
GUARANTY
Surety assumes
liability as regular
party to the
undertaking
Collateral
undertaking
Surety is an original
promisor
Guarantor is
secondarily liable
Surety is primarily
liable
Guarantor binds
himself to pay if the
principal CANNOT
PAY
Surety
undertakes to pay
if the principal
DOES NOT PAY
Insurer of solvency
of debtor
SURETYSHIP
Liability depends
upon an
independent
agreement to pay the
obligation if primary
debtor fails to do so
He assumes a solidary
liability for the fulfillment of the
principal obligation.
5. Undertaking is to creditor and not to
debtor.
GUARANTY
Primarily a
Contract of security
contract of transfer
Unless the note is
promptly
presented
for payment at
maturity and due
notice of dishonor
given to the
indorser within a
reasonable time
he will be
discharged
absolutely from all
liability thereon
In either or both of
these particulars
does not generally
work as an absolute
discharge of a
guarantors liability
Continuing guaranty
Indorser can be
Guarantor cannot be
sued
sued as promisor
cannot be compelled to pay the
creditor unless the latter has
exhausted all the properties of the
principal debtor, and has resorted to
all of the legal remedies against such
debtor.
52
5.
6.
7.
8.
9.
he
has
left
a
manager
or
representative
If it may be presumed that an
execution on the property of the
principal debtor would not result in the
satisfaction of the obligation
If the guarantor does not set up the
benefit against the creditor upon
demand for payment from him, and
point out to the creditor available
property to the debtor within Philippine
territory, sufficient to cover the amount
of the debt
If he is a judicial bondsman or subsurety
Where the pledge or mortgage has
been given by him as special security
If he fails to interpose it as a defense
before judgment is rendered against
him
of
Indemnity
or
Benefit of Division
Should
there
be
several
guarantors of only one debtor and for
the same debt, the obligation to
answer for the same is divided among
all.
Liability: Joint
EXCEPTIONS:
1. Where the guaranty is constituted
without the knowledge or against
53
BOND
Bondsman
Art. 2071
Gives a right of
action after payment
Protective remedy
before payment.
Substantive right
Preliminary remedy
I. Common Elements of
Mortgage, and Antichresis
Pledge,
A. Essential Requisites
(Keyword: SOD)
1. Secures the fulfillment of a
principal obligation;
2. Pledgor, mortgagor, antichretic
debtor must be the absolute
owner of the thing pledged or
mortgaged; and
3. Pledgor, mortgagor, antichretic
debtor must have free disposal of
Extinguishment of guaranty
54
principal
obligation
with
the
understanding
that
when
the
obligation is fulfilled, the thing
delivered shall be returned with all its
fruits and accessions.
Kinds:
1.
Conventional
created by contract
2.
Legal created
by operation of law (examples: Art.
546, 1731 and 1914 NCC) (1994,
2004 Bar Exams)
Unless stipulated otherwise, pledge
extends to the fruits, interests or
earnings of the thing.
D. Indivisibility
PLEDGOR
EXCEPTION:
The
pledgee
may
appropriate the thing pledged if after the
first and second auctions, the thing is not
sold.
RIGHTS
OBLIGATIONS
EXCEPTIONS:
1. Where each one of several things
guarantees a determinate portion
of the credit
2. Where only a portion of the loan
was released
3. Where there was failure of
consideration.
To bid and be
preferred at the
public auction
PLEDGEE
RIGHTS
1. To bring actions
pertaining to an
owner
2. To sell at public
auction in case of
reasonable grounds
to fear destruction or
impairment of the
thing without his
fault
PLEDGE
OBLIGATIONS
1. Not to use thing
unless authorized or
by the owner or its
preservation
requires its use
2. Take care of the
thing with the
diligence of a good
father of a family
3. Option to demand
replacement or
immediate payment
of the debt in case of
deception as to
substance or quality
4. To sell at public
auction in case of
non-payment of debt
at maturity
5. To bid at the
public auction
6. To appropriate
the thing in case of
failure of the 2nd
public auction
7. To retain excess
value received in the
public sale
8. To possess the
thing
9. To object to the
alienation of the
thing
10. To retain the
thing until after full
payment of the debt
4. Responsibility for
acts of agents and
employees as
regards the thing
5. To advise pledgor of
danger to the thing
6. To advise pledgor of
the result of the public
auction
56
PLEDGE
REAL MORTGAGE
Constituted on
movables
Constituted on
immovables
Property is delivered
to pledgee or by
common consent to a
third person
Delivery is not
necessary
Generally,
mortgagor retains possession. If the
possession
is
transferred
to
the
mortgagee, it must not expressly be for
purpose of applying the fruits to the
interest then to the principal of the credit,
for then it would be an antichresis.
Foreclosure
Kinds:
1. Judicial ordinary action for
foreclosure under Rule 68 of the
Rules of Court
2. Extrajudicial when mortgagee is
given a special power of attorney
to sell the mortgaged property by
public auction, under Act No. 3135
Should
there
remain a balance due to the
mortgagee after applying the proceeds
of the sale, the mortgagee is entitled
to recover the deficiency.
ANTICHRESIS
Redemption
Property is delivered
to creditor
57
REAL MORTGAGE
Debtor usually
retains possession of
the property
Foreclosure sale
in chattel mortgage is by public auction
under Act No. 1508, but the parties may
stipulate that it be by private sale.
PLEDGE
Refers to real
property
Refers to personal
property
Perfected by mere
consent
Perfected by delivery
of the thing pledged
Creditor acquires
Creates a real over
only the right to
the property
receive the fruits of
the property, hence, it
does not produce a
real right
CHATTEL MORTGAGE
It is expressly
stipulated that the
creditor given
possession of the
property shall apply
all the fruits thereof
to the payment of
interest, if owing,
and thereafter to the
principaL
There is no such
obligation on part of
mortgagee
Only equity of
redemption is available to the mortgagor;
the latter can no longer redeem after the
confirmation of the foreclosure sale.
CHATTEL
MORTGAGE
Delivery of the
personal property to
the mortgage is not
necessary
PLEDGE
Delivery of the thing
pledged is necessary
2.
registration in the
registration not
Chattel Mortgage
necessary to be valid
Registry is necessary
for its validity
3.
If property is
foreclosed, excess
over the amount due
goes to the debtor
Debtor is not
entitled to excess
unless otherwise
agreed or except in
case of legal pledge
If there is deficiency
after foreclosure,
creditor is entitled to
deficiency from the
debtor, except under
Art. 1484
If there is deficiency,
creditor is not
entitled to recover
notwithstanding any
stipulation to the
contrary
CONCURRENCE
OF CREDITS
AND
PREFERENCE
CONCURRENCE OF CREDITS
Possession by
two or more creditors of equal rights or
privileges over the same property or all of
the property of the debtor.
PREFERENCE OF CREDITS
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
A.
Voluntary an insolvent
debtor owing debts exceeding 1,000
pesos may file with the RTC in which he
has resided for at least 6 months
preceding the filing.
Refectionary Credit
EFFECTS
OF
ORDER
DECLARING INSOLVENT:
a. All the assets of the debtor not
exempt from execution are
taken possession of by the
sheriff until the appointment of
a receiver or assignee.
b. Payment to the debtor of any
debts due to him and the
delivery to the debtor of any
property belonging to him and
the transfer of any property by
him are forbidden.
c. All civil proceedings pending
against the insolvent debtor
shall be stayed.
d. Mortgages or pledges duly
recorded and not dissolved
are not affected by the order.
B.
Involuntary on petition
of 3 or more creditors who are residents of
the Philippines, whose credits or demands
accrued in the Philippines and the amount
of which are in the aggregate of not less
than 1,000 pesos.
ACTS OF INSOLVENCY:
1. Intention to depart from the Philippines
to defraud creditors.
2. Absence from the Philippines to defraud
creditors.
3. Concealment of debtor to avoid legal
process.
4. Concealment or removal of his property
to avoid legal process.
5. Confession of judgment in favor of any
creditor to defraud the others.
6. Allowing default judgment in favor of a
creditor to defraud the others.
INSOLVENCY
60
SUSPENSION OF PAYMENTS
SUSPENSION
Effects of assignment:
1. The assignee takes the property in
the conditions that the insolvent
held it;
2. Legal title is vested in the
assignee and control is vested in
the court.
3. All actions to recover all estate,
debts and effects of the insolvent
shall be brought by the assignee
and not by the creditors.
INSOLVENCY
1. Purpose is to
suspend or
delay payment
of debts.
1. Purpose is to
discharge the
debtor from
payment of debts.
2. Debtor has
sufficient
property.
2. Debtor has no
sufficient property.
3. Amount of
indebtedness is
not affected.
3. Creditors receive
less or none at all.
4. Number of
creditors is
immaterial.
4. 3 or more
creditors is
required.
Requirements:
1. The offer of the terms must be
made after the filing in court of the
61
Basis of succession
1) Right of Private Property if the man
has the right to own private property, he
has the power to dispose of such property
freely, imposing such licit terms and
conditions as he might deem convenient.
2) Right of the family if the family is
recognized as the heart and soul of
society, the idea of succession must,
therefore, revolve around it.
3) Eclectic theories the raison detre of
the right of succession is the harmonious
combination of two institutions private
ownership and the family.
4)
The
recognized
necessity
of
perpetuating mans patrimony beyond the
limits of human existence. This necessity
in turn, is based on the necessity of giving
greater stability to the family and social
economy.
Elements of Succession
1) Subjective elements it consist of the
decedent and those who are called to
succeed the decedent either by will or by
operation of law, such as the heirs,
devisees, or legatees. Decedent the
person whose property is transmitted
through succession, whether or not he left
a will.
DEVISEES/LEGATEES
Called to succeed to
an indeterminate or
aliquot part of the
decedents
hereditary estate
(universal title)
Called to succeed to
individual items of
property (particular
title)
Called to succeed
either by means of a
will or by operation
of law
Called to succeed by
means of a will
62
SUBSCRIPTION
Mental act
Mechanical act
Purpose: to render
available proof
during the probate
of the will, not only
pf the authenticity of
the will, but also of
its due execution
Purpose:
identification
A copy of a holographic
will may still be admitted to probate.
The SC ruled that the will maybe
allowed because comparison can still
be made in the standard writings of
the testator. Thus, in Gan vs. Yap (104
Phil. 509) it held that Perhaps it may
be proved by a photographic or
photostatic
copy,
or
even
a
mimeographed or carbon copy, or
other similar means, if any, whereby
the authenticity of the handwriting may
be exhibited and tested before the
probate
court.
Evidently,
the
photostatic or Xerox copy of the lost or
destroyed holographic will maybe
admitted because then the euthenics
of the handwriting of the deceased
can be determined by the probate
court.
May
be
made
in
accordance with the forms required by,
either:
Philippine laws
may
be
made
in
accordance with the forms required by,
either of:
lex domicilii
lex nationalii
may
be
made
in
accordance with the forms required by,
either of:
lex nationalii
REPUBLICATION
The process of re-establishing a will
which has become useless because it
was void, or had been revoked.
May be made by:
Re-execution of the original
will, or
Execution of a codicil
Effects of republication by codicil:
1. the codicil revives the previous will
2. the old will is republished as of the date
of the codicil
Requisites and limitations:
a. To republish a will void as to its form, all
the dispositions must be reproduced or
copied in the new or subsequent will
Has the effect as if the testator
made the will as of the date of
republication.
Hence, the properties transmitted
are those he owns at the time of
republication.
b. To republish a will valid as to its form
but already revoked, the execution of a
codicil which makes reference to the
revoked will is sufficient
DISALLOWANCE
REVOCATION
1. Given by judicial
order
2. Must always be for a
legal cause
3. As a rule, always
total (except when the
ground of fraud or
undue influence
1. Voluntary act of
the testator
2. With or without
cause
3. Partial or total affects
only certain
portions of the will)
REVIVAL
Requisites:
1. the will must be extrinsically valid
2. the institution must be valid intrinsically
legitime must not be impaired, the heir
must be certain and there should be no
preterition
3. the institution must be effective no
predecease, no repudiation, no incapacity
of heir.
Presumptions:
1. Presumption of Equality Heirs
instituted without designation of shares
shall inherit in equal parts.
REPUBLICATION
REVIVAL
takes place by
operation of law
66
TESTATE:
The
compulsory heir who predeceased the
testator, the heirs of the former
acquires
the
RIGHT
OF
REPRESENTATION only to the
legitime.
67
3. Reciprocal
CONDITIONAL
MODAL
A mode merely
imposes an
obligation upon the
heir, devisee or legatee
but it does not affect
the
efficacy of his rights to
the succession
The condition
suspends but does
not obligate
If the condition is
suspensive, even if the
heir wants to
give security, he will
not be allowed to get
the property in the
meantime; instead the
property will be
placed under
administration
68
COMPULSORY HEIRS
If the testator is a
legitimate person
2. RELATIVE PROHIBITION
a) to contract a first marriage valid,
unless so onerous or burdensome
b) to remarry valid, unless so onerous or
burdensome.
Extrajudicial settlement of estate:
1. The decedent left no will
2. The estate has no debts
3. Heirs are all of age or the minors are
represented by their legal or judicial
representative.
4. By means of a public instrument filed in
the Office of the Register of Deeds.
If the testator is an
illegitimate
person
1. Legitimate
children and
descendants
1. Legitimate
children and
descendants
2. In default of the
foregoing,
legitimate
parents and
ascendants
2. Illegitimate
children
3. Widow or
widower
3. In default of the
foregoing,
illegitimate
parents
4. Illegitimate
children
4. Widow or
widower
69
7.
DISTRIBUTION of the estate in
accordance with the will of the testator
Collation
fictitious
mathematical
process of adding the value of the thing
donated to the net value of the hereditary
estate applicable to both donations to
compulsory heirs or strangers.(1978, 1977
Bar)
Act of charging or imputing such
value against the legitime of the value
against the legitime of the compulsory heir
to whom the thing was donated.
70
2. When a C or D leads a
DISHONORABLE
or
DISGRACEFUL
LIFE.
3. Conviction of a CRIME w/c carries with
it the penalty of CIVIL INTERDICTION.
4. When a C or D by FRAUD, violence,
intimidation or undue influence causes the
testator to make a will or to change one
already made.
5. C or D has been found guilty of an
ATTEMPT against the life of the testator,
his or her spouse, descendants or
ascendants.
6. MALTREATMENT of the testator by
word or deed, by child or descendant.
7. C or D has ACCUSED the testator of a
crime for w/c the law prescribes
imprisonment for 6yrs or more, if the
accusation has been found groundless.
8. A refusal without justifiable cause to
SUPPORT the parent or ascendant who
disinherits such C or D. (Art. 919, CC)
INEFFECTIVE DISINHERITANCE:
a. No cause stated in the will;
b. Not a true cause (denied by the
disinherited heir and not proven by the
instituted heir)
c. Not a legal cause (as provided by law)
d. Subsequent reconciliation
EFFECTS:
1. institution of heir is annulled in so far as
it may prejudice the legitime of the person
disinherited
2.devises/legacies and other testamentary
dispositions remain VALID to the extent as
will not impair the legitime.
VALID
DISINHERITANCE
PRETERITION
Always intentional
Omission may
either be intentional or
unintentional
May be w/ cause or
w/o cause
Disinherited heir
does not inherit
Annuls the
institution of heirs,
and therefore, heir
inherits
A will is always
required
May exist w/ or
w/o a will as when
everything has
been given to only
one of several
compulsory heirs
by way of donation
inter vivos
The institution is
always void, except
when the preterited
heir predeceases
the testator.
C. SPOUSE
1. When the spouse has been convicted of
an ATTEMPT against the life of the
testator, his or her descendants or
ascendants
71
Effect of Reconciliation:
1. A subsequent reconciliation between the
offender and the offended person deprives
the latter of the right to disinherit; and
2. Renders ineffectual any disinheritance
that may have been made.
EFFECT ON THE
LEGACY OR DEVISE
1. Belonging to the
testator at the time of
the execution of the
will and up to his
death.
Operative
2. Belonging to the
testator at the time of
the execution of the
will but alienated in
favor of a third person.
Revoked
3. Belonging to the
testator at the time of
the execution of the
will but alienated in
favor of the legatee or
devisee gratuitously.
No revocation
Clear intention to
Comply with legacy or
devise.
4. Belonging to the
testator at the time of
the execution of the
will but alienated in
favor of the legatee or
devisee onerously.
9. Already belonged to
the legatee or devisee
at
the time of the
execution of the will
even if another person
may have some
interest
therein.
Ineffective
Ineffective
72
Proper
if
there
is
no
repudiation.
A
renouncer
may
represent but may not be represented.
Order of Intestate Succession (1977
Bar)
A. Of a Legitimate Person
1. LEGITIMATE children or descendants
2. Legitimate parents or ASCENDANTS
3.ILLEGITIMATE Children or descendants
73
B. Of an Illegitimate Person
1.
LEGITIMATE
CHILDREN
or
descendants
2.
ILLEGITIMATE
CHILDREN
or
descendants
3. PARENTS by nature
4. SURVIVING spouse subject to the
concurrent right of brothers and sisters,
nephews and nieces
5. BROTHERS and sisters, nephews and
nieces
6. STATE
74
8.
INDIVIDUALS,
associations
or
corporations, not permitted by law to
inherit;
9. PHYSICIAN, surgeon, nurse, health
officer, or druggist who took care of the
testator during his last illness. (Arts. 1027,
1028, 739, CC)
EXPRESS PARDON
IMPLIED PARDON
Made by the
execution of a
document or any
writing in which the
decedent condones
the cause of
incapacity.
Effected when
testator makes a
will instituting the
unworthy heir with
knowledge of the
cause of incapacity.
Cannot be revoked
Public instrument
Authentic instrument
An
Acceptance
and
Repudiation of Inheritance which is
purely free and voluntary always
retroacts to the moment of the death
of the decedent.
(1) Compulsory
heirs
Exceptions:
(a) When the
donor should
have so expressly
provided; and
(b) When donee
should have
repudiated his
inheritance.
(2) Grandchildren
who survives
with their uncle
and aunts or
cousins and
inherits by
representation.
The following
collation:
75
are
not
subject
to
1. Absolutely no collation:
SUBSTITUTION,
if
proper;
REPRESENTATION,
if
proper;
ACCRETION,
when
proper;
INTESTACY.
Rules in intestacy:
Proximity rule
Equal
shares
among
relatives of equal degree
Exceptions:
I. When the legitime of compulsory heir is
thereby prejudiced; and
II. When it appears or may reasonably be
inferred that the intention of thetestator
was otherwise.
III. Effect of inclusion of intruder in
partition:
Between one true heir and several
mistaken heirs Partition is VOID
Between several true heirs and one
mistaken heir transmission to
mistaken heir is VOID
Through error or mistake, share of
true heir is allotted to mistaken heir
Partition shall not be rescinded unless
there be bad faith or fraud on the part
of other persons interested but the
latter shall be proportionately obliged
to pay to the person omitted the share
EXCEPTION:
A. Right of representation
B. Full blood brothers and sisters inherit
double the share of half-blood brother or
sister
IRON-BARRIER RULE
prohibits absolutely a succession AB
INTESTATO between the illegitimate
child and the legitimate relatives of the
father or mother of said illegitimate
child.
77
SURVIVING RELATIVE
1. legitimate children ALONE
TABLE OF INTESTATE
SHARES
(INTESTATE SUCCESSION)
ENTIRE ESTATE
3. illegitimate children
ALONE
NHE
ENTIRE ESTATE
NHE
ENTIRE ESTATE
1/3 IF MARRIAGE IN
ARTICULO MORTIS
IF LIVING TOGETHER
FOR 5 YEARS AND IN
ARTICULO MORTIS
ENTIRE ESTATE
7. a. 2 0r more legitimate
children and
Surviving spouse
NHE number of
children
Same share as 1 legitimate
child
b. 2 or more legitimate
children and
surviving spouse and
illegitimate children
1/3
1/3
1/8
ENTIRE ESTATE
legitimate or illegitimate
78
particularly
in
its
possession,
enjoyment, disposition, and recovery,
subject to no restrictions except those
imposed by the State or by juridical
transactions.
Traditional Elements of Ownership
(1977 Bar)
1. Right to consume or destroy or abuse
2. Right to possess
3. Right to use
4. Right to recover or vindicate
5. Right to enjoy
6. Right to the fruits
7. Right to encumber or alienate
8. Right to dispose
(Keyword: CUPFREED)
by LGUs
Private Ownership:
I. Patrimonial property of the state
Property
of
public
dominion, when no longer intended for
public use or for public service, shall
form part of the patrimonial property of
the State.
Interference
to
avert
imminent
danger/Doctrine of necessity (Art. 432)
Requisites:
a. The interference must be necessary to
avert imminent danger;
b. The threatened damage must be
greater than the damage caused to the
owner of the thing;
c. Only such interference as is necessary
shall be made in order to avert the
damage.
The
person
intervened was not at fault.
who
Requisites
of
Hidden
Treasure
(Keyword: HVO)
1. Hidden or unknown deposit
2. Of valuable objects
3. The lawful owner being unknown
Rules on hidden treasure:
b) Accion Publiciana
If
the
finder
is
a
trespasser: He is not entitled to any
share of the treasure.
If the finder is a laborer
hired to look for hidden treasure: He is
entitled to his wage or salary only.
f things found be of
interest to science or the arts: The
State may acquire them at their just
price, which shall be divided according
to the rules above.
c) Accion reivindicatoria
An action whereby the plaintiff
alleges ownership over a parcel of land
and seeks recovery of its possession.
Kinds of Accession:
1. Accession Discreta
d) Quieting of title
81
a) Natural fruits
Spontaneous products of the soil, and
the young and other products of animals
(Art. 442, CC.)
b) Industrial fruits
Those produced by lands of any
kind through cultivation or labor (Art. 442,
CC.)
c) Civil fruits
(b) Avulsion
the accretion which takes place
whenever the current of a river, lake, creek
or torrent segregates from an estate on its
bank a known portion of land and transfers
it to another estate. (Art. 459, CC);
Requisites: (Keyword: CSI)
a. The segregation and transfer must be
caused by the current of a river, creek or
torrent b. The segregation and transfer of
soil is sudden and abrupt
c. The portion segregated can be identified
2. Accession Continua
The right pertaining to the owner
of a thing over everything which is
incorporated or attached thereto, either
naturally or artificially.
82
compensation
for
any
damage
sustained thereby.
However,
the
former
owners of the new bed shall be the
owners of the abandoned bed in
proportion to the area lost by each.
The
owners
of
the
affected lands may undertake to return
the river or stream to its old bed at
their own expense; Provided, that a
permit therefore is secured from the
Minister of Public Works and works
pertaining thereto are commenced
within two years from the change in
the course of the river or stream.(Art.
58, P.D. No. 1067)
Those
formed
on
Philippines seas, lakes and on
navigable rivers belong to the STATE;
In BF
Loses the thing +
pay damages
In BF
Pay the value of the
accessory + pay
damages, or
Suffers the injury
to the thing + Pay
damages
In GF
Demand value of
accessory +
damages, or
In BF
* as if in GF
In BF
*as if in GF
Demand
separation even if
principal is
destroyed +
damages
Rule: if separation is
possible without injury, then separate
RULES in adjunction:
In GF
Appropriates the
thing after payment of
value of accessory in its
uncontroverted state.
In GF
Appropriate the
thing without
payment +
damages
In GF
Right to demand
payment of the
value of accessory,
or Right to demand
separation if no
injury to the thing
EXCEPT, when the
accessory is more
valuable than the
principal, the AO may
demand separation
(3) Specification
_ the giving of a new form to another
persons material through the
application of labor (Art. 474, CC).
83
RULES:
MATERIAL OWNER
(MO)
In GF
Right to demand value
of the material, BUT if
the material is more
precious, he may:
a. appropriate the thing
after paying M, or
b. Demand payment of
material
MAKER
In GF
Acquires the thing
after payment of
the value of the
materials
In GF
In BF
1. Appropriates the
To pay damages
thing without indemnity
to M + damages (but
not available if the
value of the work is
considerably more
than the material)
or
2. sell the material to
M+ damages
In BF
To pay damages
In GF
Appropriates the
thing without
payment +
damages
Mixture
Involves at least two things
Co-ownership results
Things mixed or confused may
either retain or lose their
respective nature
84
Rights of LO
LO in GF and Material owner
in GF
Material Owner in BF
In GF
BPS in BF
1. Right to acquire the improvements
without paying reimbursement, and
2. Right to demand damages
In BF
Same as though acted in good faith
Co-ownership
May be created by
law, contract,
succession,
fortuitous event or
occupancy
The purpose is the
common enjoyment
of the thing or right
owned in common
Has no juridical
personality which is
separate and
distinct from that of
the co-owners
An agreement not
to divide the
community
property for more
than 10 years is not
allowed by law
A co-owner has no
power to represent
the co-ownership
If a co-owner
transfers his share
to LO
a third
person,
in GF
and
the latter
BPS in GF
automatically
becomes a coowner
The division of the
benefits and
charges is fixed by
law
Obligations:
1. Must pay for necessary expenses for preserva
2. Pay BPS expenses made by 3rd persons in
production, gathering and preservation of the f
when appropriate (Art 443)
3. Pay damages
In GF
1. Appropriate the work without payment + dama
or
2. Demand the removal at BPS expense + dama
3. Compel the BP to buy the land, regardless o
value of the land or S t pay the rent
Obligations are the same as above
In BF
Same as though acted in good faith
Partnership
Always created by
contract
The purpose is to
obtain profits
Has a juridical
personality which is
separate and distinct
from the partners
No limitation upon
the duration of
partnerships
SOS)
A partner has the
1. Plurality of subjects
power to represent
2. Unity of the Object; and
the partnership
3. Recognition of the ideal or undivided
If a partner transfer
his share to a third
shares of the co-owners which determine
LO
theappropriation
latter
their ofrights
and obligations. (2 Tolentino,
1.person,
Right of
after payment
indemnity,
does not become a
Civil Code, p. 140)
or
unless
2.partner,
Right to
compel BP to pay the price of land and S,
agreed
upon
the
proper
rentby all of
Characteristics of Co-ownership
the partners
Exception:
1. More than 1 owner
The division
profits
Value
of the of
land
is greater than the value of the
and losses may be
subject to the
agreement of the
85
partners
Civil
Law
Study
Guide
The death of a coThe death of a
Bar Operations 2007
ner has no effect
partner shallCentralized
result in
upon the existence
the dissolution of the
of the co-ownership partner
Requisites of Possession
1. The corpus or holding or material
detention or enjoyment of a thing or right
and,
2. The Animus possidendi or intent to
possess the thing or right
(1977 Bar)
POSSESSOR IN
GF
Termination
of
co-ownership:
(Keyword: PPCD)
1. Partition
GENERAL RULE: Demandable as a
matter of right
EXCEPTIONS: (Keyword: ULAND)
POSSESSOR
IN BF
1. As to fruits Already
received:
the fruits until
entitled to all
possession is
legally
interrupted
Still
pending:
entitled to
pro-rate the
fruits growing
when his
possession is
legally
interrupted
Shall
reimburse the
fruits received
and those
which the
legitimate
possessor
could have
received.
2. As to
necessary
expenses
Entitled to
refund.
No right of
retention
86
Entitled to
refund.
Right of
retention
3. As to
useful
expenses
Entitled to
Not entitled to
refund.
refund.
Right of retention No right of
retention
4. As to
ornamental
expenses
Not entitled to
refund, but
may remove
such
improvements
if they do not
cause damage
to the
principal
thing
Not entitled
refund, but
may remove
such
improvements
if they do not
cause damage
to the
principal
thing
5. As to
prescription
Movables: 4
years
Immovables:
10 years
Movables:
years
Immovables:
30 years
6. Liability
for
deterioration
or loss
Not liable,
except in
cases where
he has acted
with
fraudulent
intent or
negligence,
after the
judicial
summons.
Consumable things
Liable even
due
fortuitous
event.
USUFRUCT
LEASE
Covers only
particular use
Created only by
owner
Constituted by law,
Constituted by
by will of private
contract
persons
in act inter vivos or
mortis causa, and by
prescription
Usufructuary
responsible for
ordinary repairs
Not responsible
Usufructuary
Not responsible
responsible for taxes
on the fruit
87
3. Termination of Usufruct
a) to deliver the thing to the owner (Art.
612, CC).
b) to reimburse or indemnify owner, in the
proper case
Extinguishment
of
the
usufruct:
(1989 Bar)
1. by death of the usufructuary
EXCEPTIONS:
contrary intention
definite period
when the usufruct is in favor of several
persons
successively
or
simultaneously
2. by the expiration of the period for which
it was constituted or the fulfillment of any
resolutory condition
3. by merger of the usufruct and
ownership in the same person
4. by renunciation of the usufructuary
5. by the total loss of the thing in usufruct
6. by the termination of the right of the
person constitution the usufruct
7. by prescription
8. non-fulfillment of a mode imposed on
the usufructuary
9. rescission or annulment of the contract
10. legal ways of extinguishing usufruct
11. mutual dissent
12. alienation to innocent purchaser for
value
Easement
or
servitude
an
encumbrance
imposed
upon
an
immovable for the benefit of another
immovable belonging to a different owner.
(1995 Bar)
The immovable in favor of which the
easement is established is called
dominant estate; that which is subject
thereto, the servient estate. (Art. 614,
CC.)
88
Extinguishment of easements:
1. Merger of ownership of the dominant
and servient estate
2. Non-user for 10 years
3. When either or both of the estates fall
into such condition that the easement
cannot be used
4. Expiration of the term or the fulfillment
of the condition
5. Renunciation of the owner of the
dominant estate
6. Redemption
7. Expropriation of the servient estate
8. Permanent impossibility to make use of
the easement
9. Annulment or cancellation of the
contract of easement
10. Registration of the servient estate as
free and without any encumbrance in the
Torrens System in favor of an innocent
purchaser for value
11. Cessation of necessity
any
act,
omission,
establishment, business or condition of
property or anything else which:
1. injures or endangers the health and
safety of other
2. annoys or offends the senses
3. shocks, defies or disregards decency or
morality
89
2. Derivative mode
Ownership is based on a right
previously held by another person
Law; tradition; donation; succession
Classification of Nuisances
1. Per se nuisance at all times and
under all circumstances, regardless of
location and surroundings
2. Per accidens considered nuisance by
reason
of
circumstances,
location,
surrounding
3. Public affects community or
neighborhood or any considerable number
of persons
4. Private affects only a person or a
small number of persons
3. Mixed mode
Prescription
I. Intellectual creation
mode of acquisition by virtue of which
the author acquires intellectual property
or ownership over the products of his
intellect, with the consequent power to
authorize or refuse publication or
production of such products.
II. Occupation
The object must be appropriable by
nature
Requisites: (Keyword: CICOS)
i. There must be a seizure or
apprehension;
ii. The thing seized must be corporeal;
iii. The thing seized must be without
any owner;
iv. There must be an intention to
acquire ownership over the thing; and
v. There must be compliance with the
rules prescribed by law.
Occupation
regarding
animals
happens by hunting or fishing
Bees 2 days
Domesticated animals 20 days
DOMESTIC ANIMALS
DOMESTICATED
ANIMALS
By nature wild
animals but have
been tamed
possess the habit of
returning to the
premises of the
possessor.
III. Law
IV. Tradition (1977 Bar)
A
consequence
of
certain
contracts such as sale by virtue of
which, actually or constructively,
the object is placed in the control
and possession of the transferee.
Kinds:
a. Real or material physical
delivery
b. Constructive
i. Simbolica
Requisites:
Transferor must have control
of
the
thing
(actual
possession)
Transferee must be put in
control
There must be intent to
transfer
ii. longa manu (long hand)
transfer of ownership is done by
pointing out to the thing
mere agreement is not enough,
there must be an accompanying
sign or gesture.
iii. brevi manu (short hand)
occurs when the transferee was
already in possession before he had
acquired ownership
iv. constitutum possesorium
opposite of brevi manu
the transferor already in possession
and continues to be in possession under a
different capacity after ownership had
been transferred
c. Quasi-tradition - delivery of incorporeal
property
d. By operation of law
V. Donation
An act of liberality whereby a person
disposes gratuitously a thing or right in
favor of another who accepts it. (Art. 725,
CC)
Requisites
1. decrease or reduction of the patrimony
of the donor;
2. increase of the patrimony of the donee ;
3. animus donandi or intent to make
donation; and
4. acceptance by the donee except
donation propter nuptias
Persons capacitated to make donations
1. those who have capacity to enter into
contracts;
2. those able to dispose of his property;
3. those not prohibited or disqualified by
law from making donations.
Civil Law
DONATION INTER
VIVOS
DONATION MORTIS
CAUSA
Takes effect
independently of
death of donor
Title or ownership
conveyed before death
of donor
Title or ownership
conveyed only upon
death of donor
Generally irrevocable
during the donors
lifetime
Always revocable
Generally comply
with formalities
91
required by ARTS. 748
749 of CC
Studyand
Guide
Acts of ingratitude
Formalities:
1. Movable Property
a) ORAL - with simultaneous delivery of
property donated
P5,000.00 or less
b) WRITTEN - without simultaneous
delivery
must be in writing, public or private,
including acceptance
exceeds P5,000.00
2. Immovable property
a) must be in public instrument specifying
property donated and burdens assumed
by the donee regardless of value
b) Acceptance must be either:
(1) In the same instrument
(2) In another public instrument, notify the
donor in authentic form, and noted in both
deeds, otherwise donation is void
VI. Succession
VII. Prescription
Modes of Extinguishing Ownership:
I. Voluntary (Keyword: AAD)
1. Abandonment
2. Alienation
a. onerous
b. gratuitous
3. Voluntary destruction
II. Involuntary (Keyword: JARLL)
1. Fortuitous loss or destruction
2. Accession continua
3. Rescissory actions
4. Judicial decree
5. By operation of law
SALES
Contract of sale it is a contract whereby
one of the contracting parties obligates
himself to transfer the ownership of and to
deliver a determinate thing and the other
to pay therefore a price certain in money
or its equivalent. (Art. 1458, CC)
Requisites of a contract of sale
1. Consent of the contracting parties;
2. Determinate subject matter.
3. Price certain in money or its equivalent.
Characteristics of a contract of sale
(Keyword: COB CONS)
1. consensual
92
The perfection of a
contract of sale gives rise to the
obligation on the part of the seller to
transfer
ownership
and
deliver
possession of the subject matter;
nevertheless it would be delivery or
tradition that would legally be the
mode to transfer ownership and
possession to the buyer.
Contract to Sell
By agreement,
ownership is reserved
in the vendor and will
not pass until full
payment
Full payment is a
positive suspensive
condition
Title remains in the
vendor and when he
seeks to eject because
of non-payment, he is
enforcing contract and
not resolving the same.
93
Earnest money
part of the price
given only when
there is already a
sale
when earnest
money is given,
the buyer is bound
to pay the balance
Option Money
money given as a distinct
consideration for an option
contract
applies to a sale not yet
perfected
When the would-be buyer
gives an option money, he
is not required to buy, but
may even forfeit it
depending on the terms of
the option.
94
These
remedies
are
alternative.
Important features of the Maceda Law
(R.A. 6552) (1999 Bar)
After
having
paid
installments for at least 2 years, the
buyer is entitled to a mandatory grace
period of 1 month for every year of
installment payments made, to pay the
unpaid installments without interest.
for
Except:
1. When true owner is estopped or
precluded by his conduct from denying the
vendors authority to sell;
2. When sale is made by the registered
owner or apparent owner in accordance
with recording or registration laws;
3. Where sale is made pursuant to a
statutory power of sale or under the order
of court;
4. Where purchase was made in merchant
store or in fairs or markets. ( Art. 1505,
CC)
Negotiable document of title a
document of title in which it is stated that
the goods referred therein will be delivered
to the bearer or to the order of any person
named in such document.
ownership is vested on
buyer upon delivery but he may revest
title to seller by returning within the
period fixed.
95
3. By waiver thereof.
Unpaid seller:
1. When the whole of the price has not
been paid or tendered; and
2. When a bill of exchange or other
negotiable instrument has been received
as a conditional payment and the condition
was broken by reason of dishonor,
insolvency of the buyer or otherwise. (Art.
1525, CC)
REDEMPTION
1. The sale to a
third person has
already been
perfected
2. There can be no
rescission of the
sale
3. Action is
directed against
the buyer
Characteristics of Partnership
(Keyword: CBONPP)
1. Consensual
2. Bilateral or Multilateral
3. Onerous
4. Nominate
5. Principal
6. Preparatory
Leonine Partnership a partnership
where one of the partners is made liable
for losses but is not entitled to share in the
profits. This is NOT ALLOWED UNDER
OUR JURISDICTION.
KINDS OF PARTNERS
1. as to liability
a. General - those who can be held liable
for partnership obligations even to the
extent of their personal property.
b. Limited - those who cannot be held
liable for partnership obligations.
EXCEPT when
1. Lease is recorded in the registry of
property
2. There is stipulation in the contract of
sale that purchaser shall respect the lease
3. Purchaser knows the existence of the
lease
4. Sale is fictitious
5. Sale is made with the right of
repurchase
2. as to contribution
a. Capitalist - contribute money or
property to common fund.
b. Industrial - contribute only their skill or
industry to the common fund.
PARTNERSHIP
3. as to management
a. Managing - those who manage or
administer partnership affairs.
b. Silent - those who have no voice in the
management of partnership affairs.
4. as to third persons
a. Ostensible - publicly known as such
b. Secret - those whose connection in the
partnership is not known
c. By estoppel - those who represent
themselves or consent to another or
others representing them to anyone as
partners, either in an existing partnership
or in one that is fictitious or apparent.
5. as to object
a. Universal
a.1. with all present property
_ contributions consists of(Art.
1778, NCC)
a.1.1. all the properties actually belonging
DISTINCTION BETWEEN CAPITALIST AND INDUSTRIALIST PARTNER
to the partners
a.1.2. profits acquired with said property
a.2 with all profits
b. Particulars - here the object are
determinate things, their use or fruits; a
specific undertaking, or the exercise of
profession or occupation (Art 1783, NCC)
6. as to duration
a. for a specific period or till purpose is
accomplished
b. partnership at will
b.1. here, no period expressed or implied,
but the partnership continued without
liquidation, by the partners who habitually
acted as such during the term (Art. 1783,
NCC)
99
DISTINGUISHING
CAPITALIST
PARTNER FACTOR
FACTOR
1. As to contribution
2. As to prohibition to
engage in other business
PARTNERSHIP
1. HOW CREATED
1. Contributes money or
property
1. VOLUNTARY agreemen
the parties
2. HOW LONG
2. Cannot generally
engageITinEXISTS
the same or similar enterprise
as that of his firm (the test is
3. LIABILTY
the possibility
of unfair TO STANGERS
competition (Art. 1809, NCC)
3. As to profits
4. As to losses
ALL PROFITS
7. NATIONALITY
7. a partnership is a nation
the country it was created
8. ATTAINMENT OF LEGAL
PERSONALITY
100
PARTNERSHIP V. CONJUGAL
PARTNERSHIP OF GAINS
FACTORS
1. HOW CREATED
3. LEGAL PERSONALITY
4. COMMENCEMENT OF THE
PARTNERSHIP
5. PURPOSE
6. DIVISION OF PROFITS
7. MANAGEMENT
7. as a rule, management
conferred upon the partne
as appointed by the other
otherwise, all are equally
considered agents of the
ORDINARY PARTNERSHIP
8. DISSOLUTION
9. LIQUIDATION OF
PROFITS
101
FACTOR
1. SCOPE
2. REPRESENTATION
PARTNERSHIP
(1988 Bar)
VS.
FACTOR
PARTNERSHIP
1. CREATION
1. is a form of agency
2. LEGAL PERSONALITY
2. a partner is both a
principal for his own interest
3. PURPOSE
and is an agent for
the firm
and the others
4. AGENCY OR
REPRESENTATION
CO-OWNERSHIP
5. TRANSFER OF INTEREST
6. LENGTH OF EXISTENCE IF
CREATED BY CONTRACT
7. PROFITS
7. may be stipulated
8. DISSOLUTION
8. dissolved by death or
incapacity of a partner
9. FORM
PARTNERSHIP
102
FACTOR
1. LEGAL PERSONALITY
2. LIABILITY
Principle
of
Delectus
Personae no one can become a
member of a partnership without the
consent of all the partners. (Art. 1804,
CC)
PARTNERSHIP
CONTRIBUTIONS
1. When IMMOVABLES or interest are
1. has juridicalcontributed:
or legal personality
a .shall appear in public instrument (Art.
1771, NCC)
b. inventory of said property shall be
2. as a rule, partnership
becomes
made, signed
by the parties and attached
liable to the third
person
forinstruments (Art. 1773, NCC)
to the public
contracts entered into by a partner
Otherwise partnership is
who acts within scope of authority
VOID
3. TRANSACTIONS
3. generally relates to a
2. Where CAPITAL OR P3,000 or MORE
continuing business of
is contributed, shall appear in Public
various transactions of a
Instrument which must be recorded in
certain kind
SEC
Except
is any of the
managers should oppose, the
decision of the majority shall
prevail. In case of tie, the partners
owing the CONTROLLING interest
shall prevail. (Art. 1801, NCC)
DUTIES OF PARTNERS
(Art. 1786, NCC)
1. The duty to contribute what had been
promised
2. The duty to deliver the fruits of what had
been delivered
3. the duty to warrant
RIGHTS of the PARTNERSHIP
1. has a personality separate and distinct
from the partners;
2. can acquire or possess property;
3. can incur obligations;
4. can bring actions; and
5. can be adjudged insolvent.
In case it should be
stipulated that that none of the
partners shall act without the consent
of the others, the concurrence of the
other shall be necessary for validity of
the act, and absence or disability of
any one of them cannot be alleged,
unless there is an imminent or grave
injury to the partnership. (Art. 1802,
NCC)
103
CHARGING
ORDER
upon the partners interest in the
104
Funds
when
partnership
cannot
recovery properties conveyed under
Art. 1819, NCC
1. when the partners act binds the
partnership under the provision of Art.
1818
2. when purchaser or his assignee, is a
holder for value, without knowledge that
partner had exceeded authority
Effects of Dissolution
Effect of Knowledge although no notice
was given knowledge of the partner is
also knowledge of the firm although no
notice, provided:
1. That the knowledge was acquired by a
partner who is acting in the particular
matter involved
105
GENERAL PARTNER
LIMITED PARTNER
1. can be held
personally liable for
partnership obligations
after all partnership
assets are Exhausted
1. cannot be held
personally liable
2. may participate
in the management of
the partnership
3. can contribute
money or property
Only
3. may contribute
money, property, or
industry to the
common fund
5. no limitation on
the right to engage
in another business
5. there is a limitation
on the right to engage
in another business,
or in the same kind
of business
Right of partners after DISSOLUTION
(Art. 1837, NCC)
a. if partnership contract is not violated
a. 1. partnership property applied
to discharge partnership liability
a.2. surplus to be paid in cash to
partners
b. When in contravention:
b.1. innocent partner
b.1.1. all rights specified
in Art.1837
b.1.2. to damages for
breach of agreement.
b.1.3. right to continue
partnership
either
by
themselves or jointly with
others
c. guilty partner
c.1. no share in goodwill
c.2. payment of damages
Right of partner when contract is
RESCINDED (Art. 1839, NCC)
1. Right of Lien or Retention
2. Right of subrogation
3. Right of Indemnification
AGENCY
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. (Art. 1868, CC)
DISTINCTIONS
1. Agency by Estoppel vs. Implied
Agency
Characteristics of Agency
(Keyword: PNBPCO)
1. Principal
2. Nominate
3. Bilateral
4. Preparatory
5. Commutative
6. generally, Onerous
FACTOR
IMPLIED
1. as
between
the principal
and the
Agent
2. as to third
person
2. principal
is always
liable
Capacity
Principal- must be capacitated to act for
himself
Agent- must be able to bind himself, but
only so far as his obligations to his
principal are concerned. Insofar as third
person, it is enough that his principal be
the one capacitated.
KINDS of Agency (Keyword: EIFCET)
1. express
2. implied
a. Acts of the principal
b. principals Silence
c. principals Lack of action
d. principals Failure to repudiate the
agency(Art. 1869, NCC)
3. as to form
a. oral
b. written
4. as to cause
a. onerous
b. gratuitous
5. as to extent
BY ESTOPPEL
2. if estoppel is
caused by the
principal, he is
liable but only if
the third person
acted on the
misrepresentation
If estoppel is
caused by the
agent, it is only the
agent who is
liable, never the
alleged principal
107
LOAN
1. agent may be
given funds by the
principal to advance
the latters business
1. borrower is given
money for the
purposes of his own,
and must generally
return it, whether or
not his own business
is successful
FACTOR
AGENT
1.representation
2. appointment
3. control
4. liability
FACTOR
AGENCY
LEASE OF PROPERTY
1. control
1. agent is controlled
by the Principal
2. object
3.representation
AGENCY
NEGOTIORUM GESTIO
1. contract
1. there is a contract,
expressly or impliedly
2. control
3. legal
relationship
3. created by law
108
6. AGENCY VS.
INDEPENDENT
CONTRACT
FACTOR
AGENCY
INDEPENDENT CONTRACT
1. control
1. independent contractor is
authorized to do the work
according to his own method
without being subjected to control
from others
2. person exercising
Control
3.representation
4. liability for
negligence
AGENCY
1. title to property
3.representation
4. period
109
AQUILIANA
CONTRACTUAL
1. Coverage
Nature of of Quasi-delict
Negligence is include
Negligence
is
acts,
negligence
direct,
Merely
to
whether punishable
by law
or incidental
not
substantive
The performance of the
punishable by law, whether criminal or not
and
contractual
criminal in character,
whetherobligation.
intentional
independent.
There is a
2. Criminal
or voluntary or(Rakes
negligent,
which
result in
vs.
preexisting
contact or
the damage toAtlantic
another.
(Elcanoobligation.
vs. Hill, 77Intent
7 Phil.
SCRA 98)
395)
(Rakes vs. Atlantic 7
Phil. 395)
2. Defense of
good father
of a family
3.Presumption
of negligence
This is a
complete and
proper
defense
insofar as
parents,
guardians,
employers
are
concerned
(Art. 2180,
last
paragraph)
There is no
presumption
of
negligence.
The injured
party must
prove the
negligence of
the defendant.
(Cangco vs.
MRC, 38
injury to another.
It is
broader in
scope than
crime.
Criminal intent
is not necessary
for quasi-delict
to exist. Fault or
negligent
without intent
will suffice.
Criminal
intent is
essential for
criminal
liability to
exist.
Right violated is
a private right.
Quasi-delict is a
wrongful act
against a
private
individual.
Right violated
is a public one.
Crime is a
wrong against
the State.
Every
quasidelict
gives rise
to liability for
damages.
Some crimes
(like contempt,
illegal
possession of
a
firearm) do not
give rise to
liability for
damages.
There is presumption
of negligence as long
as it can be proved
that there was breach
of the
contract. The
defendant must
prove
5. Proofs
Proof of the
that there wasneeded
fault or
no negligence in the
negligence
111
carrying out of the
requires only
Civil
Law
Study Guidepreponderance
terms
of the
contract.
(Cangco
vs. MRC,
38
Centralized
Bar Operations
2007
of evidence.
Phil 768)
6.
Sanction
or
penalty
Reparation or
indemnification
of the injury or
damage.
Punishment is
either
imprisonment,
fine or both;
sometimes
other
accessory
penalties are
imposed.
Any injury
or
damage
is
proximately caused by an act or failure to
act, whenever it appears from the
evidence in the case, that the act or
omission played a substantial part in
bringing about or actually causing the
injury or damage; and the injury or
damage was either a direct result or a
112
.
ASSUMPTION OF RISK
113
Damages
the
recompense
or
compensation awarded for the injury
suffered
Negligence a failure to observe that
degree of care, precaution and vigilance
that
circumstances
justly
demand,
whereby another person suffers injury.
Instances
where
negligence
is
presumed
1. Art. 2180,NCC (Vicarious Liability)
negligence of employer: RESPONDEAT
SUPERIOR negligence of employee is
conclusively presumed negligence of
employer
2. Art. 2184, NCC VEHICLE MISHAP
drivers negligence if found guilty of
reckless driving or violation of traffic
regulations: owner of the vehicle solidarily
liable with his driver if inside the vehicle
and could have, by the use of due
diligence, prevented the misfortune. (2002
Bar
3. Art. 2188 Defendant presumed
negligent if death or injury results from
possession of dangerous weapons or
substances
4. Art. 2183 Possessor of an animal is
responsible for the damage such animal
may cause.
114
subsidiary liability
employee must be
insolvent
employer must be
engaged in some
kind of industry
4.defense of good
father of a family/
due diligence in the
selection and
supervision of
employees
defense is not
available
Defenses in Quasi-Delict
(Keyword: NLCDAPR)
1. NEGLIGENCE of petitioner or of
another
2. LAST CLEAR CHANCE doctrine
3. CONTRIBUTORY NEGLIGENCE
4. DUE DILIGENCE in the selection and
supervision of employees
5. ASSUMPTION OF RISK
6. PRESCRIPTION 4 years from date
quasi-delict
occurred
or
was
committed
7. RES JUDICATA
117
Basis
Damages
Damages
Damages
Damages
Damages
Damages
Crimes or
delicts
Grantable
(Arts.
2202;
2206).
Grantable
[Art. 2219
(1); (3); (4);
(5) & (6)]
Grantable as
part of the civil
liability if
committed
with one or
more
aggravating
circumstances
(Art. 2230)
Not
applicable
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Grantable
when
pecuniary
loss has
been
suffered but
from the
nature of
the
case,
cannot
be proved
with
certainty
(Art. 2224)
Not
applicable
Grantable
as in
trespass to
dwelling
(Arts.
2221;
2222)
Quasidelicts
or
culpa
aquiliana
Grantable
(Art.2202)
Grantable
[Art. 2219
(2)]
Not grantable
unless
defendant
acted with
gross
negligence
(Art. 2231)
Not
applicable
Contracts
Grantable
(Art.2201)
Not
grantable
unless the
breach is
fraudulent
or done in
bad faith
(Art.2220)
Not grantable
unless
defendant
acted in
wanton,
fraudulent,
reckless,
oppressive or
malevolent
manner (Art.
2232)
Grantable
(Art. 2226)
QuasiContracts
Grantable
(Arts.
2201;
2167).
Not
applicable
Not grantable
unless
defendant
acted in
wanton,
fraudulent,
reckless,
oppressive or
malevolent
manner (Art.
2232)
Not
applicable
Damage to
property
Grantable
(Art. 2200)
Grantable
(Art.2220)
if injury to
property is
willful.
Grantable if
Not
necessary for
applicable
public good,
and is in
addition to
other damages
118
except
Civil
Law
Study Guide
nominal
damages
(Art.
Centralized
Bar Operations 2007
2229)
or as part
of the
damages
Grantable
(Art.2211)
Attorneys
Fees
Allowable (Art
2208[3] &
[9])
Grantable
(Art. 2222)
Grantable
(Art.2211)
Allowable
[Art.
2208(2);(11)]
Grantable
(Art. 2222)
May be
stipulated
(e.g. loan).
(Art. 1933,
third par.;
Art. 2209 &
2210)
Allowable as a
penalty
[Art.1226; Art
2208(11)]
Grantable
(Art. 2222)
Grantable
(solutio
indebiti)
when
acceptance
of undue
payment
was in bad
faith (Art.
2159)
Allowable
[Art. 2208
(5); (11)]
Grantable
(Art. 2222,
last
phrase)
Not
applicable
Allowable
[Art. 2208
(5); (9);& (11)]
CONFLICT OF LAWS
Conflict of laws a part of the municipal
laws of a state which directs its courts and
administrative agencies, when confronted
with a legal problem involving a foreign
element, whether or not they should apply
a foreign law or foreign laws
Elements of Conflict of Laws
(Keyword: PDLA)
1. part of municipal law of a state
2. there is a directive to courts and
administrative bodies
3. there is a legal problem involving a
foreign element
4. there is either an application or nonapplication of a foreign law
Doctrine of Forum non conveniens a
principle in Private International Law that
where the ends of justice strongly indicate
that the controversy maybe more suitably
tried elsewhere, then jurisdiction should be
declined and the parties relegated to the
relief to be sought in another forum. (2002
Bar)
Purpose of the Doctrine- to deter the
practice of global forum shopping, that is,
119
ENFORCEMENT
It exists when a
plaintiff wants the
courts to positively
carry out and make
effective in the
Philippines a foreign
judgment.
It implies a direct act
of sovereignty and
necessitates a
separate action
precisely to make
the foreign judgment
effective.
It necessarily carries
with it recognition
Example:
When an American in Manila who is sued
for bigamy, presents in defense a foreign
judgment of divorce decree dissolving his
prior marriage, what he wants is
recognition of the foreign judgment not
enforcement.
NB: Both in recognition and enforcement,
proof of the foreign judgment must be
presented.
Requisites
for
recognition
and
enforcement of a Foreign Judgment in
the Philippines (Keyword: PJN2R)
1. There must be a proof of foreign
judgment
2. Judgment be on a civil or commercial
matter
3. There must be no lack of jurisdiction,
no want of notice, no collusion, and no
fraud
Exceptions:
a. National law of the decedent (Art. 16, par 2,
Civil Code).
b. National law of the decedent ( Art. 1039,
Civil Code)
c.
POINT OF CONTACT
3.
Where debtor may be effectively served with
summons ( usually the domicile)
a. lex loci voluntatis or lex loci intentiones
( proper law of the contract) other theories:
1.
2.
3.
4.
Taxation of debts
d. Administration of debts
b. Domicile of creditor
e. Negotiability or non-negotiability of an
instrument( bill of exchange,for example)
f.
c.
j.
k.
Franchise
l.
i.
j.
k.
l.
POINT OF CONTACT
POINT OF CONTACT
(a)
lex locilaw
celebrationis
National
of the childis without
prejudice
to
the
under
(Art. 15, Civil exceptions
Code)
Art. 26,35 (1, 4,5,6), 36,37 and 38
National law (Art.15)
of the Family Code (bigamous,
polygamous and incestuous
National law (Art.15)
marriages) and consular marriages
National law (Art.15)
2.
(b) Mixed
3. Marriage
by proxy
( Note: a
Civil
Law Study
Guide
marriage
byOperations
proxy is considered
as
Centralized
Bar
2007
where the proxy appears)
POINT OF CONTACT
1. National law of the husband.
POINT OF CONTACT
The law alleged to have been violated: in
other words, it is the law of the place of
celebration (lex loci celebrationis) subject
to the exceptions, that furnishes the
grounds)
Nota Bene: The proper court to annul the marriage or to declare it null and void is the court
of the country of which the parties are nationals or domiciliaries.
124
POINT OF CONTACT
2. If obtained abroad:
a) between Filipinos
2.
a) national law ( therefore, not valid here
even if valid abroad; and this is true
regardless of the cause of the divorce)
b) between foreigners
c) Mixed
3. Guardianship
a) over the person
1. appointing court
NO residence requirement
1. court of the domicile of the ward
2. powers of guardian
b)
1. the court where the property is found
(lex rei sitae)
2. powers of guardian
POINT OF CONTACT
1.
a) lex nationalii or lex domicile or
Philippines law (Art. 816, Civil Code), or
Lex loci celebrationis (Art. 17, par 1, Civil
Code)
2)
4. Capacity to succeed
5. Revocation of Wills
a) If done IN the Philippines
5).
a) lex loci actus ( of the revocation)
(Art829, Civil Code)
b)
1. by a NON-DOMICILIARY
6)
POINT OF CONTACT
FACTUAL
SITUATION
7) Executors
and Administrators
1.
or extrinsic validity:
a) Formal
where appointed
Exceptions:
a) alienation and encumbrance
of property
b) powers
b) consular contracts
2. Capacity of the contracting parties
POINT OF CONTACT
7)
1.
loci
celebrationis
17, par.1,
a) Lex
place
where
domiciled(Art.
at death
or in
Civil
case Code)
of non-domiciliary, where assets are
found
a) lex situs ( Art. 16, par. 1, Civil Code)
b) Co-extensive with the qualifying or the
b)
law of the
Philippines
made may
in be
appointing
courtthat is- (if
powers
Philippine
Consulates)
exercised only
within the territorial
jurisdiction of the court concerned.
2. National law (art. 15, Civil Code)
without
prejudice
the apply
case of
Note: These
rulestoalso
to Insular
principal,
Government
Frank, 13 Phil.and
236, where
domiciliary, orv.administrators
the
Supreme
adhered to the theory
receivers
evenCourt
in non-successional
cases
of Lex loci celebrations
Exception:
a) alienation and encumbrance
of property
Exception:
a) lex situs (Art. 16, par. 1Civil Code)
127
3. Intrinsic validity (including
CivilofLaw
Study Guide
interpretation
instruments,
and amount
Centralized
Bar Operations 2007
of damages
for breach
POINT OF CONTACT
1.
a) lex situs
b) lex situs
c) lex situs
2. Lease of property
a) extrinsic validity
b) capacity of parties
c) intrinsic validity
2.
a) lex situs
b) lex situs
c) lex situs
3. Lease of Services
a) extrinsic validity
b) capacity of parties
c) intrinsic validity
3.
a) lex loci celebrationis
b) national law
c) lex loci voluntatis or lex loci intentiones
4.
a) fixed situs of the carrier (depot or
resting place
b) fixed situs of the carrier
c) fixed situs of the carrier
d) law of the destination (Art. 1753, Civil Code)
5. Contract of Agency
a) extrinsic validity
5.
a) lex loci celebrationis
(unless the agency deals with the conveyance or
encumbering of property- in which case the lex
situs of the property applies)
b) national law of the parties (unless the agency
deals with the conveyance or encumbering of
property- in which case the lex situs of the
property applies)
c) lex loci voluntatis or lex loci intentionis (unless
the agency deals with the conveyance or
encumbering of property- in which case the lex
situs of the property applies)
b) capacity of parties
c) intrinsic validity
6.
a) lex loci celebrationis
b) national law
c) lex loci voluntatis or lex loci intentionis
7. Commodatum
a) extrinsic validity
b) capacity of parties
c) intrinsic validity
7.
a) lex situs
b) lex situs
c) lex situs
8.
a) lex situs
b) lex situs
c) lex situs
POINT OF CONTACT
1.
a) General Law - law of the place of the
incorporation
Exceptions:
Synopsis of Conflict Rules
On Quasi-Delicts
FACTUAL SITUATION
1. Liability and Damages for Torts in General
b) For constitutional
purposes
-even if the
POINT OF
CONTACT
was commissi
incorporated
in of
the
1. corporation
Lex Loci Delicti
( law
the
Philippines,
it is
not deemed
a Filipino
place
where the
delict
was committed)
corporation and therefore cannot acquire
land,Liability
exploit for
ourforeign
naturaltorts may be enforced
Note:
and if:
operate public utilities
in resources,
the Philippines
unless 60% of the capital is Filipino owned.
a) the tort is not penal in character
c) For wartime purposes
pierce theof
veil
b) here,
if the we
enforcement
theoftortuous liability will
identity
and gopolicy
to
notcorporate
contravene
our public
the nationality of the
stockholders
c) controlling
if our judicial
machinery to
is adequate for such
determine if the corporation
enforcement
is an enemy corporation or
not (CONTROL TEST)
b) law of the place of incorporation
FACTUAL SITUATION
POINT OF CONTACT
f) domicile
2. Partnership
a) the existence or non-existence of legal
personality of the firm; capacity to
contract; liability of the firm and the
partners to third persons
2.
a) the personal law of the partnership
that
is the law of the place where it was
created.
c) Philippines law
e) Receivers
d) See rule on Corporation
130
CONFLICTS TERMS
Borrowing Statute the laws of the state
on jurisdiction used by another state in
deciding question involved in the choice of
law. It directs the state of the forum to
apply the foreign statute of limitations to
the pending claims based on foreign law
and has the practical effect of treating the
foreign statute of limitation as one of
substance. It bars the filing of a suit in the
forum if it is already barred by the statute
of limitations in the place where the cause
of action arose. Thus, when the country
has
a
borrowing
statute,
the
characterization of a statute into a
procedural or substantive law becomes
irrelevant. (1994 Bar)
persons or corporation which are nonresidents of the state and which voluntarily
go into the state directly or by agent or
communicate with persons in the state
from limited purposes, in actions which
concern claims relating to performance or
execution of those purposes. (1994 Bar)
Characterization otherwise called the
doctrine of qualification. It is the process of
determining under what category a certain
set of facts or rules fall. (1994 Bar)
System of qualified recognition
Philippine law adheres to a system of
qualified recognition. Section 0 of rule 39
of the rules of court provide that a foreign
judgment may be repealed by evidence of
want of jurisdiction, want of notice to the
party, collusion, fraud or clear mistake of
law or fact
131
Lex Fori
Lex causa
Lex situs
POSSESSION
Does not
necessarily imply
title
Actual control of
property by
physical
occupation
Mobilia
sequuntur
personam
Lex Domicilii
Lex patriae
Lex personali
or personal
law
Lex loci
celebrationis
Lex loci
solutionis
Lex loci
intentionis
Lex validatis
Lex
conveniens
It
is
enforceable
against the
whole world
including the
government,
or any of its
branches
It carries with
it the
character of
indefeasibility
It exposes
the party
holding it
to the
hazards of
litigation
It may be
considered
neither
good nor
bad.
BAD
Title when
conveyed to
another,
conveys no
property at
all.
Ex. Title
obtained
Ex. Title
through
registered
fraud or
under the
similar
Torrens
means, not in
system and
good faith, or
acquired in
for valuable
good faith
consideration
Certificate of Title mere evidence of
ownership. It is not the title to the land
itself, but a copy of the decree of
registration.
132
ALLUVION
Applied to the
deposit itself
Escheat Proceedings
7. Reclamation Method
4. Accretion
ACCRETION
TENENDUM
That clause in the
deed characterized
by the words to
hold.
133
Person
qualified
to
apply
for
registration (Keyword: P4A)
1. Those who by themselves or through
their predecessor-in-interest have
been in continuous, open, notorious
and exclusive
2. POSSESSION & OCCUPATION of
alienable and disposable lands of the
public domain under a bona fide claim
of ownership since June 12, 1945 or
earlier.
3. Acquirer of ownership of PRIVATE
LANDS BY PRESCRIPTION.
4. Acquirer of ownership of PRIVATE/
ABANDONED RIVER BEDS by right
of accession or accretion.
5. Acquirer of ownership of land in any
other manner.
a) An applicant seeking to establish
ownership over land must conclusively
show that he is the owner thereof in fee
simple, for the standing presumption is
that all lands belong to the public domain
of the State, unless:
i) acquired from the Government either by
purchase or by grant,
ii) lands possessed by an occupant and
his predecessors in interest since time
immemorial, for such possession would
justify the presumption that the land had
never been part of the public domain or
that it had been private property even
Delegated jurisdiction in
cadastral land and land registration
cases:
a. Were there is no controversy or
opposition, or
b. Contested lots the value of which does
not exceed 100,000 pesos
The
value
to
be
ascertained by:
a. The affidavit of the claimant or
b. Agreement of the respective claimants
if there are more than one, or
c. From the tax declaration of the real
property
8. Cancellation suit
MIRROR DOCTRINE
GENERAL RULE: where the certificate is
in the name of the vendor when the land is
sold, the vendee for value has the right to
rely on what appears on the face of the
title. He is under no obligation to look
beyond the certificate of title.
EXCEPTION: When there is anything in
the certificate which indicates any cloud or
vice in the ownership of the property.
9. Quieting of title
Quasi in rem
Decree of Registration
1. As long as the final decree has not
been entered by the NALTDRA and
136
prescription.
Tax
declarations
and
corresponding tax receipts are not
conclusive
evidence
of
ownership.
(Cervantes vs. CA G.R. No. 118982 Feb.
19. 2001)
Notice
of
lis
pendens
an
announcement to the whole world that a
particular real property is in litigation, and
serves as a warning that one who acquires
an interest over said property does so at
his own risk or that he gambles on the
result of the litigation over said property.
Cases where notice of lis pendens is
proper (Keyword: RQRPA)
1. an action to recover possession of
real estate
2. an action to quiet title thereto
3. an action to remove clouds thereon
4. an action for partition
5. any other proceeding of any kind in
court directly affecting the title to the
land or the use or occupation thereof
of the buildings thereon. (Alberto vs.
CA June 30, 2000)
Judicial Reconstitution
Partakes of a land registration
proceeding and is perforce a proceeding in
rem.
Administrative Reconstitution
The putting together again/ restoration
of the original copies of OCT and TCT that
were lost or destroyed due to fire, flood or
other natural calamities without necessity
of court proceedings.
It may be availed of only in case of
substantial loss or destruction of land titles
due to fire, flood or other force majeure
where the number of certificates of titles
lost or damaged is at least 10% of the total
number in the custody of the Register of
Deeds, but in no case shall the number of
the lost or damaged titles be less than 500
as determined by the Administrator of the
Land Registration Authority.
137
Classification of lands is an
exclusive prerogative of the President
upon the recommendations of the
Director of the Land Management
Bureau.
Disposable Lands:
1. Lands reclaimed by the government
by dredging, filing or other means;
2. Foreshore (which may be disposed of
only by lease);
3. Marshy land or land covered with
water bordering upon the shores or
banks of navigable lakes or rivers;
4. Lands not included in any of the
foregoing classes.
Rules
on
the
exploitation of:
disposition
and
138
EXCEPTIONS:
1. In favor of
a. the government
b. banks
2. Using such lands to satisfy a debt
contracted prior to the expiration of the
5-year period.
3. Transfer to person or entities not
qualified to acquire lands of the public
domain.
4. Transfer to an individual where the
result would be holdings in excess of
the maximum limit allowed by law (i.e.
12 hectares)
EXCEPTION:
succession
In
cases
of
hereditary
Every
conveyance
of
land
acquired under the free patent or
homestead, when proper, shall be
subject to repurchase by the applicant,
his widow, or legal heirs, within 5
years from the date of the
conveyance.
Prohibitions:
1. Subsequent alienation or encumbrance
from date of approval of the application
and for a term of 5 years from date of the
issuance of the patent.
139