Professional Documents
Culture Documents
SUCCESSION
I.GENERALPROVISIONS
A.DEFINITION/WHATISTRANSMITTED
Q:Whatissuccession?
A:Successionisamodeofacquisitionbyvirtueof
which the property, rights and obligations to the
extentofthevalueoftheinheritanceofaperson,
are transmitted through his death to another or
others either by his will or by operation of law.
(Art.774)
Q:Whatisthebasisofsuccession?
A:
1. Negative Theories refer to those
which deny to succession any rational
basis and which have been formulated
by the individualistic and socialistic
schools.
a. There can be no testamentary
succession because these rights
aremerelythecreationsofthewill
of a person who is devoid of any
will,beingalreadydead.
b. There can be no intestate
successionbecausethecommunity
of property in the family can only
be conceived of as long as the
latterexists.
2.
3.
EclecticTheoryAccordingtothisview,
the basis of testamentary succession is
the right of ownership but the basis of
legal or intestate succession is the ties
of blood and the right of family co
ownership.(Caguioa,p.2)
Q:Whatarethecharacteristicsofsuccession?
A:
1. Itisamodeofacquisition;
2. Onlyproperty,rightsandobligationsto
the extent of the value of the
inheritancearetransmitted;
3. Thetransmissiontakesplaceonlyatthe
timeofdeath;
4. The transmission takes place either by
willorbyoperationoflaw.
Q:Whataretherequisitesofsuccession?
A:DATE
1. Deathofdecedent;
2. Acceptance of the inheritance by the
successor;
3. Transmissibleestate;
4. Existence and capacity of successor,
designatedbydecedentorlaw.
B.SUCCESSIONOCCURSATTHEMOMENTOF
DEATH
Q:Whenarerightstosuccessiontransmitted?
Q:Whatistransferredbydeathinsuccession?
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CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q:Areafteracquiredpropertiesofthedecedent
transmissible?
A:
GR: Property acquired during the period
between the execution of the will and the
deathofthetestatorisnotincluded.
Theinheritanceofapersonincludesnotonly
thepropertyandthetransmissiblerightsand
obligations existing at the time of his death,
but also those which have accrued thereto
sincetheopeningofthesuccession.(Art.781)
A:Iftherightorobligationisintuitupersonae,itis
intransmissible,otherwiseitistransmissible.
Note:Intuitupersonaemeansstrictlypersonal.
Q:Whatrightsarenottransferredbythedeath
ofaperson?
A:
1. Purelypersonalrights;
2. Rights which are made intransmissible
bystipulationoftheparties;
3. Rights which are intransmissible by
provisionoflaw.
A:PAPULP
1. Partnershiprights
2. Agency
3. Personaleasements
4. Usufruct
5. Legalsupport
6. Parentalauthority
A:Thosewhicharemadeintransmissible:
1. bytheirnature;
2. bystipulation;or
3. byprovisionoflaw(Art.1311)
Note:Thisisanexceptiontothegeneralrulethat
contracts or obligations are binding upon the
parties,theirheirsorsuccessorsininterest.
A:
1. Monetary
obligations
are
not
transmittedtotheheirs.
2. Nonmonetary
obligations
are
transmittedtotheheirs.
Q:Mayheirsbeheldliableforthedebtsor
obligationsofthedecedent?
A:
GR:No.Itistheestatethatpaysforthedebts
leftbythedecedent.
Note:Theheirsarenotpersonallyliablewith
theirownindividualpropertiesforthemonetary
obligations/debtsleftbythedecedent.
A:Thechildrencannotbesubstitutedinanaction
for legal separation upon the death of their
mother who filed the case. An action for legal
separation is purely personal on the part of the
innocent spouse because such an action affects
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Q:Whatisthenatureofthetransactionentered
into by the heir pertaining to his hereditary
share in the estate pending the settlement of
theestate?
A:Theeffectofsuchtransactionistobedeemed
limited to what is ultimately adjudicated to the
heir. However, this aleatory character of the
contract does not affect the validity of the
transaction.
Q:Mayanheirconveyfutureinheritance?
A:Nocontractmaybeenteredintouponafuture
inheritance except in cases expressly authorized
bylaw(Art.1347).
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C.KINDSOFSUCCESSORS
Q:Whatarethekindsofheirs?
A:
1. Voluntary called to succeed either by
virtueofthewillofthetestator:
a. Devisee
b. Legatee
3. LegalorIntestatebyoperationoflaw
throughintestatesuccession.
Q:Whoaredeviseesandlegatees?
A:
HEIRS
DEVISEESORLEGATEES
Astorepresentationofdeceasedsjuridicalperson
Neverrepresentthe
Representthejuridical
personalityofthe
personalityofthe
deceasednomatter
deceasedandacquire
howbigthelegacyor
theirrights,withcertain
thedeviseis
exceptionstohis
obligations
Determinabilityofamountofinheritance
Arealwaysgivena
Inheritanundetermined
determinatethingora
quantitywhoseexact
fixedamount
amountcannotbe
knownaprioriand
whichcannotbefixed
untiltheinheritanceis
liquidated
Extentofsuccessionalright
Onlysucceedtothe
Succeedtothe
determinatethingor
remainderofthe
quantitywhichis
propertiesafterallthe
debtsandallthelegacies mentionedinthelegacy
ordevise
anddeviceshavebeen
paidorgiven
Astowhentheyexist
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Canexistwhetherthe
Onlyintestamentary
successionbetestateor
succession
intestate
Effectofpreterition
Theinstitutionofanheir
isentirelyannulled
Thelegaciesanddevises
remainvalidinsofaras
theyarenotinofficious.
Effectofdefectivedisinheritance
Incaseofimperfector
Thelegaciesand
defectivedisinheritance,
deviseesremainvalid
theinstitutionofanheir
insofarastheyarenot
isannulledtotheextent
inofficious.
thatthelegitimesare
impaired.
Q:Whoarethecompulsoryheirs?
A:
1. Legitimate children and descendants
(LCD)
2. Legitimate parents and ascendants
(LPA)
3. Survivingspouse(SS)
Legitimatechildrenanddescendants(LCD)
Q:Isanadoptedchildacompulsoryheir?
A: Legitimate children includes adopted
childrenandlegitimatedchildren.
Under R.A. 8552 or the Domestic Adoption Law
adoptedchildrenhavethesamerightsgrantedto
the legitimate children. Adopted children, for all
intentsandpurposesareconsideredaslegitimate
children.
Hence,theadoptedchildrencanalreadyexclude
legitimateparents/ascendants.
Legitimateparentsandascendants(LPA)
Q: When do legitimate parents and ascendants
inherit?
A:
1.
2.
3.
4.
Preterition
Imperfect/defectivedisinheritance
Afteracquiredproperty
Acceptance
or
repudiation
successionalrights
of
A:
1. PrimarycompulsoryheirsTheyarenot
excluded by the presence of other
compulsoryheirs.
3. Concurring compulsoryheirsTheyget
their legitimes together with the
primary or secondary heirs. Neither
excludes primary or secondary heirs,
noreachother.
E.g. Surviving spouse and illegitimate
childrenanddescendants.
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settlementoftheestate.Thisisallowedbecause
amarriagethatisnullandvoidcanbecollaterally
attacked.
2.
3.
However, in case of voidable marriages, if the
marriage is not annulled before the decedent
died,thesurvivingspousecanstillinherit
4.
Reason:Voidablemarriagescanonlybeattacked
inadirectproceeding,i.e.annulmentproceeding.
5.
6.
Illegitimatechildren
Note: Under the Family Code, there is no more
distinction between acknowledged natural children
andillegitimatechildren.Theyareallconsideredas
illegitimate.
Compulsoryheirsofapersonwhoisillegitimate:
1.
2.
3.
4.
Legitimatechildrenanddescendants;
Illegitimatechildrenanddescendants;
In default of the foregoing, illegitimate
parentsonly;
Survivingspouse.
Q:Inwhatwaysmaycompulsoryheirsinherit?
A:Compulsoryheirsinheriteither:
1. intheirownright;or
2. byrightofrepresentation
II.TESTAMENTARYSUCCESSION
WILLS
1.INGENERAL
A.DEFINITIONANDCHARACTERISTICS
Q:Whatisawill?
A:Awillisanactwherebyapersonispermitted,
withtheformalitiesprescribedbylaw,tocontrol
to a certain degree the disposition of his estate,
totakeeffectafterhisdeath.(Art.783)
Q:Whatarethecharacteristicsofawill?
A:Awillis:
1. StatutoryrightThemakingofawillis
only a statutory not a natural right.
Hence,awillshouldbesubordinatedto
boththelawandpublicpolicy.
284
7.
(1)PERSONALACT;
NONDELEGABILITYOFWILLMAKING
Q:Whatismeantbystrictlypersonalact?
A:UnderArt.784,itmeansthatinthemakingof
a will, preparation thereof cannot be wholly or
partially entrusted to a third person or made
through an agent or attorney. It refers to the
disposition of property. This is so because the
essence of making a will is the disposition of
property, hence, it cannot be delegated to
another.
A:No.Itisnotonlythedelegationwhichisvoid;
the testamentary disposition whose effectivity
will depend upon the determination of the third
person is the one that cannot be made. Hence,
the disposition itself is void. (Art. 787; Tolentino,
p.33)
Q:Whatcannotbedelegatedtothediscretionof
athirdperson?
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
2.
Ineffect,thethirdpersonwillonlybecarryingout
the will of the testator as determined by these
parameters.
(2)RULESOFCONSTRUCTIONAND
INTERPRETATION/LAWGOVERNING
FORMALVALIDITY
A:Asageneralrule,thelanguageofawillshould
be liberally construed and as much as possible,
the intention of the testator should be given
effect.
Incaseofdoubt,thatinterpretationbywhichthe
dispositionistobeoperativeshallbepreferred.
Reason: Testacy is preferred over intestacy. (Art.
791)
2. Technicalwordsaretobetakenintheir
technicalsense,unless:
a. The context clearly indicates a
contraryintentionor
b.
4. Everydeviseorlegacyshallcoverallthe
interest in the property disposed of
unless it clearly appears from the will
that he intended to convey a less
interest.(Art.794)
Q:Whatarethekindsofambiguitiesinawill?
A:
1. Latent ambiguities Ambiguities which
are not apparent on the face of a will
buttocircumstancesoutsidethewillat
thetimethewillwasmade.
E.g.
a. If it contains an imperfect
descriptionofpersonorproperty;
b. A description of which no person
orpropertyexactlyanswers
2.TESTAMENTARYCAPACITYANDINTENT
Q:Whocanmakeawill?
Thelawpresumescapacitytomakeawill;hence,
in order that a person may be disqualified to
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Note:Theabilityaswellasthepowertomakeawill
mustbepresentatthetimeoftheexecutionofthe
will.
A:
1. Atleast18yearsofage;and
2. Ofsoundmind
Itshallbesufficientifthetestatorwasableatthe
timeofmakingthewilltoknowthe:
a. natureoftheestatetobedisposedof;
b. properobjectsofhisbounty;and
c. characterofthetestamentaryact.
Q:Whoarethosepersonsexpresslyprohibited
bylawtomakeawill?
A:
1. Personsofeithersexunder18yearsof
age(Art.797)
2. Persons who are not of sound mind
(Art.798)
Note:Amarriedwomanmaydisposeofherseparate
property and her share in the conjugal or absolute
communityproperty.
286
A.AGEREQUIREMENT
Q:Canapersonundereighteenyearsoldmakea
will?
A:No.Personsofeithersexundereighteenyears
oldcannotmakeawill.(Art.797)
Q:Whenissoundnessofthemindrequired?
A:Itisessentialonlyatthetimeofthemaking(or
execution)ofthewill.(Art.798;AlsuaBettsv.CA,
92SCRA332;Rabuya,CivilLawReviewer,p.527)
Q:Whatisthestatusofthewillifthetestatoris
notofsoundmindatthetimeofitsexecution?
Q:Ifthereisnoproofastothesoundnessofthe
mindofthetestatoratthetimeheexecutedhis
will,whatisthestatusofhiswillassumingthat
he complies with all other requisites for its
validity?
A:Thewillisvalid.Thisissobecausegenerally,in
absence of proof to the contrary, the law
presumesthateverypersonisofsoundmind.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q: When Brenda was a baby, she was
accidentally dropped by her mother when her
mother saw a cockroach. As a result, she
suffered from insanity. When she was in her
thirties,sheexecutedawill.Aftersometime,her
brain damage was totally cured. What is the
statusofthewill?
Q:Willyouranswerbethesameifthesituation
was the reverse Brenda developed insanity
aftersheexecutedherwill?
A:No.Superveningincapacitydoesnotinvalidate
aneffectivewill,hencethewillisvalid.
Q:Mayanilliterateexecuteawill?
A:
GR:Yes,anilliteratecanmakeanordinaryor
notarial will because a person who does not
know how to read and write does not mean
hedoesnotunderstandthelanguage.
XPN:Theilliteratecannotmakeaholographic
will.
3.FORM
A.FORMALVALIDITYRULES
Q:Whatlawgovernstheformsandsolemnities
ofwills?
A:Itisthelawofthecountrywherethewillwas
executed that governs the form and solemnities
st
ofwills.(Art.17,1 paragraph;Art.815)
Q:Whataretheeffectsofawillexecutedbyan
alienabroad?
Q:Whataretheeffectsofawillexecutedbyan
alieninthePhilippines?
accordancewiththelawofthecountrywherehe
isacitizenorsubject,andwhichmightbeproved
and allowed by the law of his own country. (Art.
817)
A:No.Thesameholdstrueevenifitisauthorized
bythelawofthecountrywherethejointwillwas
executed.(Art.819)
(1)LAWGOVERNINGSUBSTANTIVEVALIDITY
Q:WhatarethemattersmentionedinArticle15
of the New Civil Code which are governed by
Philippinelaws?
A:1.familyrightsandduties
2.status;
3.condition;and
4.legalcapacityofpersons.(Art.15)
A:1.Orderofsuccession
2.amountofsuccessionalrights
3.intrinsicvalidityoftestamentaryprovisions
4.capacitytosucceed.(Art.16;Art.1039)
B.COMMONREQUIREMENTS
A:
1. Inwriting;
2. In a language or dialect known to the
testator.
3.
Note:Theobjectofthesolemnitiessurroundingthe
execution of wills is to close the door against bad
faith and fraud, to avoid substitution of wills and
testaments and to guarantee their truth and
authenticity.
(1)INWRITING
Q:Istherulethateverywillmustbeinwriting
mandatory?
A:Yes.Ifthewillisnotinwriting,itisvoidand
cannotbeprobated.(Rabuya,CivilLawReviewer,
p.531)
Note:Philippinelawsdonotrecognizethevalidityof
nuncupativewills,whichareoralwillsdeclaredor
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A:Itmustbeentirelyhandwrittenbythetestator
himself.(Art.810)
A:Notarialorattestedwillmaybe:
1. entirely handwritten by a person other
thanthetestator;
2. partly handwritten by the testator
himself and partly handwritten by
anotherperson;
3. entirely
printed,
engraved
or
lithographed;or
4. partlyhandwritten(whetherbytestator
or another person) and partly printed,
engravedorlithographed.(Rabuya,Civil
LawReviewer,p.531)
(2)LANGUAGE/DIALECTREQUIREMENT
C.NOTARIALWILLS
Note:Itwillbepresumedthatthewillwasexecuted
inalanguageordialectknowntothetestatorifthe
will was executed in a certain locality and that the
testatorwasaresidentofthatlocality.(Rabuya,Civil
LawReviewer,p.532)
A:Ifthetestatorresidesinacertainlocality,itcan
be presumed that he knows the dialect or the
language in the said locality. (Abangan v.
Abangan,G.R.No.13431,Nov.12,1919)
288
Q:Doesthisruleapplytowitnessesinanotarial
orattestedwill?
(1)ARTS.805806
Q:Whataretheformalitiesintheexecutionofa
notarialwill?
A:WESAPNAN
1. InWriting;
2. Executedinalanguageordialectknown
tothetestator;
3. Subscribedbythetestatorhimselforby
the testators name written by some
otherpersoninhispresenceandunder
hisexpressdirectionattheendthereof,
atthepresenceofwitnesses;
4. Attestedtoandsubscribedbyatleast3
credible witnesses in the presence of
thetestatorandofoneanother;
5. EachandeveryPagemustbesignedby
thetestatororbythepersonrequested
by him to write his name, and by
instrumental witnesses in the presence
ofeachother,ontheleftmargin;
6. Eachandeverypageofthewillmustbe
Numberedcorrelativelyinlettersplaced
ontheupperpartofeachpage;
7. Must contain an Attestation clause,
statingthefollowing:
a. Thenumberofpagesofthewill,
b. Fact that the testator signed the
willandeverypageinthepresence
ofwitnesses,orcausedsomeother
persontowritehisnameunderhis
expressdirection,
c. All witnesses signed the will and
everypagethereofinthepresence
ofthetestatorandofoneanother;
8. MustbeacknowledgedbeforeaNotary
public.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q: What is the rule in cases of omissions in the
will?
However,evidencealiundearenotallowedtofill
a void in any part of the document or supply
missing details that should appear in the will
itself. They only permit a probe into the will, an
exploration into its confines, to ascertain its
meaning or to determine the existence or
absence of the requisite formalities of law.
(Caedav.CA,G.R.No.103554,May28,1993)
(2)SPECIALRULESFORHANDICAPPED
TESTATORS
A:
1. If the testator is able to read, he must
personallyreadthewill;or
2. If the testator is unable to read, he
must designate two persons to read it
and communicate to him, in some
practicable manner, the contents
thereof.(Art.807;seeRabuya,CivilLaw
Reviewer,p.559)
A:Thewillshallbereadtohimtwice,oncebyone
ofthesubscribingwitnesses,andanothertimeby
the notary public before whom the will is
acknowledged.(Art.808;id.)
Note:Art.808appliesnotonlytoblindtestatorsbut
alsotothosewho,foronereasonoranother,are
incapableofreadingtheirwills,eitherbecauseof
poorordefectiveeyesightorbecauseofilliteracy.
(id.)
(3)SUBSTANTIALCOMPLIANCE
Q:Whenisawillnotrenderedinvalidbyreason
of defects or imperfections in the form of
attestationorinthelanguageusedtherein?
A:Ifthewillisexecutedinsubstantialcompliance
with all the requirements of Article 805, in the
absence of bad faith, forgery, fraud, undue and
improperpressureorinfluence.(SeeArt.809)
(4)REQUISITES
WITNESSES
Q:Whatarethequalificationsofwitnesses?
A:Witnessestoawillmustbe:S18ABCD
1. OfSoundmind.
2. Atleast18yearsofage.
3. Abletoreadandwrite
4. NotBlind,deafordumb
5. Not have been Convicted by final
judgmentoffalsificationofadocument,
perjuryorfalsetestimony.
6. DomiciledinthePhilippines
Awitnesswhoatteststheexecutionofawill,and
towhom,ortowhosespouse,parentorchild,or
anyoneclaimingtherightofsaidwitness,spouse,
parentorchild,adeviseorlegacygiven,shallbe
void, unless there are 3 other competent
witnessestosuchwill.(Art.823NCC)
Creditorsofthetestatorarenotdisqualifiedtobea
witnesstothewill.
Q:Steviewasbornblind.Hewenttoschoolfor
the blind, and learned to read in Braille
language.HespeaksEnglishfluently.Canhe:
1.Makeawill?
A:Steviemaymakeanotarialwill.Ablindmanis
notexpresslyprohibitedfromexecutingawill.In
fact, Art. 808 of NCC provides for additional
formality when the testator is blind. Stevie
however, may not make a holographic will in
Braille because the writing in Braille is not a
handwriting. A holographic will to be valid must
be entirely written, signed and dated by the
testatorinhisownhandwriting.
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UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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2.Actasawitnesstoawill?
A:IncaseStevieexecutesanotarialwill,ithasto
be read to him twice. First by one of the
instrumentalwitnesses,andsecondbythenotary
public before whom the will was acknowledged.
(2008BarQuestion)
D.HOLOGRAPHICWILLS
(1)REQUIREMENTS
Q:Whatisaholographicwill?
A:SEED
1. Signedbytestatorhimself
2. Executedinalanguageordialectknown
tohim(Art.804)
3. Entirelywritten
4. Dated;
5. Note: In case of any insertion,
cancellation, erasure or alteration in a
holographic will, the testator must
authenticate the same by his full
signature.(Art.814)
A:
GR:Whenanumberoferasures,corrections,
cancellation, or insertions are made by the
testator in the will but the same have not
been noted or authenticated with his full
signature, only the particular words erased,
corrected,alteredwillbeinvalidated,notthe
entiretyofthewill.
XPN:
1. Where the change affects the essence
ofthewillofthetestator;
290
Note:Whentheholographicwillhadonly
one substantial provision, which was
altered by substituting the original heir
with another, andthesame did not carry
therequisitefullsignatureofthetestator,
the entirety of the will is voided or
revoked.
2. Wherethealterationaffectsthedateof
thewillorthesignatureofthetestator.
rd
3. If the words written by a 3 person
were contemporaneous with the
execution of the will, even though
authenticated by the testator, the
entire will is void for violation of the
requisitethattheholographicwillmust
be entirely in the testators
handwriting.
DATE
A:Toestablishiftherewastestamentarycapacity
at the time the will was executed. Also, should
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
there be conflicting wills, it can establish which
willwasexecutedlater.
Q:Isitrequiredthatthedateofthewillshould
include the day, month and year of its
execution?
A:
GR: The "date" in a holographic will should
include the day, month, and year of its
execution.
Note:Inthiscase,thedatewaswrittenas"FEB./61"
(Roxas v. De Jesus G.R. No. L38338 January 28,
1985).
Theexactdatethoughindicatedonlybyimplication,
mustbewithcertainty.
(2)WITNESSESREQUIREDFORPROBATE
ALTERATIONS,REQUIREMENTS
A:Itisconsideredasnotmade,butthewillisnot
invalidated.(id.)
Note:Wherethetestatorhimselfcrossedoutthe
name of the heir named, and substituted the
name of another, without authentication, it was
heldthatthisdidnotresultinmakingtheperson
whose name was crossed as heir. (Kalaw v.
Relova,132SCRA237;id.)
E.JOINTWILLS
Q:ArejointwillsallowedinthePhilippines?
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Q:Whatarethekindsofjointwills?
A:
1. MutualWillsexecutedpursuanttoan
agreement between two or more
personstodisposeoftheirpropertyina
particular
manner,
each
in
consideration of the other separate
wills of two persons, which are
reciprocalintheirprovisions.
2. Reciprocal Wills the testators name
each other as beneficiaries under
similartestamentaryplans.
A:Yes,thewillmaybeprobatedinthePhilippines
insofar as the estate of Eleanor is concerned.
While the Civil Code prohibits the execution of
joint wills here and abroad, such prohibition
applies only to Filipinos. Hence, the joint will
which is valid where executed is valid in the
Philippines but only with respect to Eleanor.
Under Article 819, it is void with respect to
Manuel whose joint will remains void in the
Philippinesdespitebeingvalidwhereexecuted.
AlternativeAnswer:Thewillcannotbeprobated
in the Philippines, even though valid where
executed, because it is prohibited under Article
818 of the Civil Code and declared void under
Article819.Theprohibitionshouldapplyevento
the American wife because the Joint will is
offensivetopublicpolicy.Moreover,itisasingle
juridical act which cannot be valid as to one
testator and void as to the other. (2000 Bar
Question)
JohnandPaula.Britishcitizensatbirth,acquired
Philippine citizenship by naturalization after
theirmarriage.Duringtheirmarriagethecouple
acquiredsubstantiallandholdingsinLondonand
inMakati.PaulaboreJohnthreechildren,Peter,
Paul and Mary. In one of their trips to London,
thecoupleexecutedajointwillappointingeach
otherastheirheirsandprovidingthatuponthe
death of the survivor between them the entire
estate would go to Peter and Paul only but the
two could notdispose of nordivide the London
292
Q:Shouldthewillbeadmittedtoprobate?
Q:Arethetestamentarydispositionsvalid?
4.CODICILS,DEFINITIONANDFORMAL
REQUIREMENTS
Q:Whatisacodicil?
A:Acodicilisa supplementoradditiontoawill,
madeaftertheexecutionofawillandannexedto
betakenaspartthereof,bywhichanydisposition
madeintheoriginalwillisexplained,addedto,or
altered.(Art.825)
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q:Whatarethedistinctionsbetweenacodicil
andasubsequentwill?
A:
CODICIL
SUBSEQUENTWILL
Formsapartofthe
originalwill.
Itisaneworaseparate
will.
Supplementsthe
originalwill,
explaining,addingto,
oralteringanyofits
dispositions.
Makesdispositions
withoutreferencetoand
independentofthe
originalwill.
Doesnot,asarule,
revokeentirelythe
priorwill.
Ifitprovidesforafull
dispositionofthe
testatorsestate,may
revokethewholeprior
willbysubstitutinganew
andlastdispositionfor
thesame.
Awillandacodicil,
beingregardedasa
singleinstrumentare
tobeconstrued
together.
Apriorwillanda
subsequentwill,being
twoseparatewills,may
beconstrued
independentlyofeach
other.
5.INCORPORATIONBYREFERENCE
Q:Whatisincorporationbyreference?
A:Incorporationbyreferenceistheincorporation
of an extrinsic document or paper into a will by
referencesoastobecomeapartthereof.
Note:Thedocumentsorpapersincorporatedwill
be considered part of the will even though the
samearenotexecutedintheformofawill.
Thedoctrineofincorporationbyreferenceisnot
applicable in a holographic will unless the
documents or papers incorporated by reference
arealsointhehandwritingofthetestator.
A:EDIS
1. Document referred to in the will must
be in Existence at the time of the
executionofthewill;
2. The will must clearly Describe and
identifythesame;
3. It must be Identified by clear and
satisfactory proof as the document or
paperreferredtotherein;
4. It must be Signed by the testator and
the witnesses on each and every page,
except in case of voluminous books of
accountorinventories.(Art.827)
6.REVOCATION;KINDS
Q:Whatisrevocation?
Q:Whenmaythetestatorrevokeawill?
A:Awillmayberevokedbythetestatoratany
timebeforehisdeath.Anywaiverorrestrictionof
thisrightisvoid.(Art.828)
Q:Maytherightofthetestatortorevokethe
willbewaivedorrestricted?
A:No,thetestatorsrighttorevokeduringhis
lifetimeisabsolute.Itcanneitherbewaivednor
restricted.
Reason:Becauseawillisambulatory.(Art.828)
Q:Whatlawgovernsincaseofrevocation?
A:
1. If the revocation takes place in the
Philippines, whether the testator is
domiciled in the Philippines or in some
othercountryPhilippinelaws
2. Iftherevocationtakesplaceoutsidethe
Philippines:
a. by a testator who is domiciled in
thePhilippinesPhilippinelaws
b. byatestatorwhoisnotdomiciled
inthiscountry
i. Laws of the place where the
willwasmade,or
ii. Lawsoftheplaceinwhichthe
testator had his domicile at
the time of revocation. (Art.
829)
Q:Whatarethemodesofrevokingawill?
A:
1. Byimplicationoflaw;
2. By the execution of a subsequent
document;
3. By physical destruction through
burning, cancelation or obliteration.
(Art.830)
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REVOCATIONBYIMPLICATIONOFLAW
Q:Discussrevocationbyimplicationoflaw.
Q:Howarewillsrevokedbyoperationoflaw?
A:
1. When after the testator has made a
will, he sells or donates the legacy or
devise;
2. Provisions in awill in favor ofa spouse
who has given cause for legal
separation;
3.
4.
5.
Note:Theinstitutionofheirsisvoid.
REVOCATIONBYEXECUTIONOFASUBSEQUENT
INSTRUMENT
A:
1. The subsequent instrument must
complywiththeformalrequirementsof
awill
2. Thetestatormustpossesstestamentary
capacity
3. Thesubsequentinstrumentmusteither
contain a revocatory clause or be
incompatible with the prior will (totally
orpartially)
4. The revoking will must be admitted to
probate.
Q:Inwhatwaysmayrevocationbyasubsequent
willbedone?
A:Revocationmaybe:
a. Express by providing for a revocatory
clause;
b. Implied provisions are completely
inconsistentwithpreviouswill.
Note:Thewillcontainingtherevocatoryclausemust
itself be valid, and admitted to probate, otherwise,
thereisnorevocation.
Q:WhatisthePrincipleofInstanter?
A:Theexpressrevocationofthe1stwillrendersit
nd
voidbecausetherevocatoryclauseofthe2 will,
not being testamentary in character, operates to
revokethe1stwillinstantlyupontheexecutionof
thewillcontainingit.
Q:Cantherebeaninstancewhereasubsequent
will, which is incompatible with the prior will,
andsuchpriorwillsubsistatthesametime?
294
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
REVOCATIONBYPHYSICALDESTRUCTION
A:OTAP
1. Overtactofphysicaldestruction;
2. Testamentarycapacityofthetestatorat
the time of performing the act of
revocation;
3. AnimusRevocandiintentiontorevoke;
4. Performed by testator himself or other
person in the presence and express
directionofthetestator.
A:
1. Under the express direction of the
testator;and
2. Doneinthepresenceofthetestator.
A:None.Inrevocationofwills,whatisessentialis
the capacity of the testator to revoke. The
capacityofthepersondirectedbythetestatorto
revokehiswillisimmaterial.
Note:Thepresumptionis,however,notconclusive
andanyonewhohasprooftothecontrarymayrebut
thepresumption.
Q:WhatistheDoctrineofDependentRelative
Revocation?
Revocationofawillbasedonafalsecauseoran
illegalcauseisnullandvoid.
Q:Mr.Reyesexecutedawillcompletelyvalidas
to form. A week later, however, he executed
another will which expressly revoked his first
will, which he tore his first will to pieces. Upon
the death of Mr. Reyes, his second will was
presented for probate by his heirs, but it was
denied due to formal defects. Assuming that a
copyofthefirstwillisavailable,mayitnowbe
admittedtoprobateandgiveneffect?Why?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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A:Yes.Recognitioninawillofanillegitimatechild
does not lose its legal effect even if the will is
revoked.
7.ALLOWANCEANDDISALLOWANCEOFWILLS
A.PROBATEREQUIREMENT
Q:Whatisprobate?
A:Itisaspecialproceedingmandatorilyrequired
for the purpose of establishing the validity of a
will.
296
Nowillshallpasseitherrealorpersonalproperty
unlessitisprovedandallowedinaccordancewith
theRulesofCourt.(Art.838)
Evenifonlyoneheirhasbeeninstituted,theremust
stillbeajudicialorderofadjudication.
Evenifawillhasalreadybeenprobated,iflaterona
subsequentwillisdiscovered,thelattermaystillbe
presented for probate, as long as two wills can be
reconciled.
Q:Doesprescriptionapplytoprobateofwills?
A:
1. Specialproceeding;
2. Proceedinginrem;
3. Notcontentiouslitigation;
4. Mandatory;
5. Imprescriptible;
Q:Whatarethedifferentkindsofprobate?
A:
1. Antemortem testator himself
petitions the court for the probate of
hisownwill.
2. Postmortem another person applies
for probate of the will after the
testatorsdeath.
(1)ISSUESTOBERESOLVEDINPROBATE
PROCEEDINGS
(A)EXCEPTIONSWHENPRACTICAL
CONSIDERATIONS
DEMANDTHEINTRINSICVALIDITYOFTHEWILL
BERESOLVED
A:
GR: Probate courts cannot inquire into the
intrinsicvalidityofwill
Theonlyquestionsthatcanbedeterminedby
aprobatecourtarethe:
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
1.
2.
3.
Dueexecution
Testamentarycapacity
Identityofthewill
XPN:Practicalconsiderations(E.g.whenthe
willisvoidonitsface)
Q:Thetestatordevisedapartofhisestatetohis
concubine,whichfactofconcubinagewasstated
in his will. On probate, the court ruled that the
willwasvalidlyexecutedbutthedeviseinfavor
of the concubine is null and void. Can the
probate court pass upon the intrinsic validity of
thetestamentaryprovisionstatedinthewill?
Note:TheSCheldasbasisitsfindingthatinthe
eventofprobateofthewill,orifthecourtrejects
thewill,probabilityexiststhatthecasewillcome
up once again on the same issue of the intrinsic
validity or nullity of the will, the same will result
in waste of time, effort, expense plus added
anxiety.
Q:Canaprobatecourtdecideonquestionsof
ownership?
A:
GR:Aprobatecourthasnojurisdictionto
decidequestionsofownership.
XPN:
1. When the parties voluntary submit the
issueofownershiptothecourt;
2. When provisionally, the ownership is
passed upon to determine whether or
notthepropertyinvolvedispartofthe
estate.
3. The question of ownership is an
extraneous matter which the probate
courtcannotresolvewithfinality.
A:TheGuevararulingisnotapplicableinthiscase
because here, there was no attempt to settle or
distribute the estate among the heirs before the
probate of the will. The clear object of the
contractwasmerelyTasianasconveyanceofany
andallherindividualshareandinterest,actualor
eventual in the estate. There is no stipulation as
toanyotherclaimant,creditororlegatee.
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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predecessorininterest,thereisnolegalbartoa
successor (with requisite contracting capacity)
disposing of her or his hereditary share
immediately after such death, even if the actual
extent of such share is not determined until the
subsequentliquidationoftheestate.
Also,asFranciscossurvivingspouse,Tasianawas
his compulsory heir. Wherefore, barring
unworthiness or valid disinheritance, her
successional interest existed independent of
Francisco's last will and testament and would
exist even if such will were not probated at all.
Thus, the prerequisite of a previous probate of
the will, as established in the Guevara and
analogouscases,cannotapplytothecase.
Note:Neitherthealeatorycharacterofthecontract
nor the coetaneous agreement that the numerous
litigationsbetweenthepartiesaretobeconsidered
settled and should be dismissed, although such
stipulation gives the contract the character of a
compromise, affect the validity of the transaction.
(DeBorja,etal.v.Vda.deBorja,G.R.No.L28040,
Aug.18,1972)
Q:Whenapersondiestestate,mayhisheirsopt
for an extrajudicial partition instead of having
thewillprobated?
(2)EFFECTOFFINALDECREEOFPROBATE,RES
JUDICATAONFORMALVALIDITY
A:Afinaldecreeofprobateisconclusiveastothe
due execution of the will, i.e., as to the extrinsic
orformalvalidityonly.
B.GROUNDSFORDENYINGPROBATE
298
5.
6.
TheSignatureoftestatorwasprocured
byfraud.
ThetestatoractedbyMistakeordidnot
intendthattheinstrumenthesigned
shouldbehiswill(Art.839,NCC)
Note:Thelistisexclusive.
Awilliseithervalidorvoid.Thereisnosuchthingas
avoidablewill.
Q:Whendothefollowingconstituteasgrounds
fordisallowance?
1. Violence
A:wheninordertocompelthetestatorto
executeawill,seriousorirresistibleforceis
employed
2. Intimidation
A:whenthetestatoriscompelledbya
reasonableandwellgroundedfearofan
imminentandgraveeviluponhispersonor
propertyofhisspouse,descendants,or
ascendants,toexecutethewill
3. UndueInfluence
A:whenapersontakesimproperadvantage
ofhispoweroverthewillofanother,
deprivingthelatterofareasonablefreedom
ofchoice.
4. Mistake
A:Pertainstothemistakeinexecution
whichmayeitherbe:
1. mistake as to the identity or character
oftheinstrumentwhichhesigned,or
2. mistake as to the contents of the will
itself.
A:Therearenootherdefectsofthewillthatcan
causedenialofprobate.Art.805oftheCivilCode
provides that the will must be subscribed at the
end thereof by the testator, and subscribed by
threeormorecrediblewitnessesinthepresence
ofthetestatorandofoneanother.Thedriver,the
cook and the lawyer who prepared the will are
credible witnesses. The testator and the
instrumentalwitnessesofthewill,shallalsosign,
eachandeverypageofthewillproper,exceptthe
last,ontheleftmargin,andallthepagesshallbe
numbered correlatively in letters placed of the
upperpartofeachpage.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
testatorandthethreewitnesses,andthesecond
sheet contains the attestation clause, as in this
case, signed by 3 witnesses, marginal signatures
andpagingarenotnecessary.Afterall,theobject
of the law is to avoid substitution of any of the
sheetsofthewill. (Abanganv. Abangan,40Phil.
476 [1919]; In Re: Will of Tan Diuco, 45 Phil 807
[1924]).
B.INSTITUTIONOFHEIRS
A:Institutionofheirisanactbyvirtueofwhicha
testator designates in his will the person or
persons who are to succeed him in his property
andtransmissiblerightsandobligations(Art.840,
NCC).
Note:Institutioncannotbeallowedtoaffectthe
legitime.
Therecanbeaninstitutedheironlyintestamentary
succession.
Q:Whataretherequisitesofavalidinstitution?
A
1. Thewillmustbeextrinsicallyvalid;
Q:Whataretheeffectsifawilldoesnotcontain
aninstitutionofheir?
A:Thewillshallbevalideventhoughitdoesnot
contain an institution of heir, or such institution
should not comprise the entire estate, and even
thoughthepersonsoinstitutedshouldnotaccept
the inheritance or should be incapacitated to
succeed.(Art.841)
Note:Institutionofheirsisnotindispensableandits
absencewillnotrenderthewillvoid,providedthere
areothertestamentarydispositions,likedevisesand
A:
1. Equality heirs who are instituted
without a designation of shares inherit
inequalparts.
2.
Q:Whatarethekindsofinstitutionofheirs?
A:Institutionofheirmaybe:
1. withacondition
2. withaterm
3. for a certain purpose or cause (modal
institution)
A:Aconceivedchildmaybeinstituted,provided
theconditionsinArts.40and41arepresent
(Conceptuspronatohabetur).
A:
GR: The institution of heir is valid. The false
cause shall be considered simply as not
written.
XPN:Iffromthewillitself,itappearsthatthe
testator would not have madethe institution
if he has known the falsity of the cause, the
institutionshallbevoid.
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WhenDr.Rabadilladied,Mariafiledacomplaint
toreconveythelandallegingthattheheirsofDr.
Rabadilla violated the condition. Is the
institutionofDr.Rabadilla,amodalinstitution?
1.PRETERITION
Q:Whatispreterition?
Q:Whataretherequisitesofpreterition?
A:
1. There is a total omission in the
inheritance;
2. Thepersonomittedisacompulsoryheir
inthedirectline;
300
3.
4.
2.CONCEPT
Q:Whomaybepreterited?
A:Compulsoryheirsinthedirectline.
Q:Mayaspousebepreterited?
Q:Maythedecedentsparentsbepreterited?
A:Thereistotalomissionwhentheheir:
1. Receives nothing under the will
whetherasheir,legatee,ordevisee;
3. Willreceivenothingbywayofintestate
succession.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q:Whataretheeffectsofpreterition?
A:
1. Preterition annuls the institution of
heirs;
2. Devicesandlegaciesarevalidinsofaras
theyarenotinofficious;
3. If the omitted compulsory heir dies
before testator, institution shall be
effectual, without prejudice to right of
representation
3.COMPULSORYHEIRSINTHEDIRECTLINE
A:
1. Legitimate children and descendants
withrespecttotheirlegitimateparents
orascendants;
2. Legitimate parents ot ascendants, with
respect to their legitimate children and
descendants;
3. Illegitimatechildren
4. The father or mother of illegitimate
children
Note:Thesurvivingspouseisnotincluded.
According to Justice Jurado, an adopted child is by
legal fiction considered a compulsory heir in the
directline.
4.PRETERITIONVS.DISPOSITIONLESSTHAN
LEGITIME
5.EFFECTSOFPRETERITION,DEVISEESONLY
ENTITLEDTOCOMPLETIONOFLEGITIME
A:
GR: The effect of annulling the institution of
heirs will be, necessarily, the opening of a
totalintestacyexceptthatproperlegaciesand
devises must be respected. Here, the will is
notabrogated.
XPN:Ifthewillcontainsauniversalinstitution
of heirs to the entire inheritance of the
testator,thewillistotallyabrogated.
Reason: The nullification of such institution of
the universal heirs without any other
testamentarydispositioninthewillamountstoa
declarationthatnothingatallwaswritten.
Q:Whataretherightsofthepreteritedheirs?
A:Theyareentitlednotonlytotheirsharesofthe
legitime but also to those of the free portion
which was not expressly disposed of by the
testatorbywayofdevisesandlegacies.
Q:Whatistheeffectiftheheirpredeceasesthe
testator?
Thereisnorightofrepresentationintheascending
line.
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A:Anycompulsoryheirtowhomthetestatorhas
leftbyanytitlelessthanthelegitimebelongingto
himmaydemandthatthesamebefullysatisfied.
(Art.906)
C.SUBSTITUTIONOFHEIRS
1.DEFINITION
Q:Whatissubstitution?
A:Substitutionistheappointmentofanotherheir
so that he may enter into the inheritance in
defaultoftheoriginalheir.
2.KINDS
Q:Whatarethedifferentkindsofsubstitution?
A:
1. Simple/commontakesplacewhenthe
heirinstituted:
a. predeceasestestator;
b. repudiatestheinheritance;or
c. isincapacitatedtosucceed
Note:Simplesubstitutionwithouta
statementofthecauses,towhichit
refers,shallcomprisethe3above
mentionedsituations.
2. Brief/compendiouswhentwoormore
persons are substituted for one or for
twoormoreheirs.
Note:Thesubstituteentersintotheinheritancenot
asanheirsucceedingthefirstheir,butasanheirof
thetestator.
302
3.FIDEICOMMISSARYSUBSTITUTION
Q:Whatisfideicommissarysubstitution?
A:
PARTIES
Firstheiror
fiduciary
Secondheiror
fideicommissary
Testator
OBLIGATIONS
Hehastheobligationto
preserveandtransmitthe
inheritance.
Heeventuallyreceivesthe
propertyfromthefiduciary.
None
INDIRECT
SUBSTITUTION
(Fideicommissary
Substitution)
Thesubstitutereceives
thepropertyafterthe
heirfirstinstitutedhas
enjoyedthesamefor
sometime.
Therearetwo
liberalitieswhichare
botheffectivebut
successivelyenjoyed.
Thefirstheirinstituted
isobligedtopreserve
thepropertyforthe
benefitofoneormore
succeedingheirsand
hispowerofalienation
iscurtailedoratleast
limited.
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FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Nootherpurposethan
topreventthe
successionofthe
intestateheirs.
Hasafurthersocial
effectasitlimitsthe
freecirculationof
propertyandforsuch
reasonmanylaws
prohibitthesameor
limitit.
Thereisonlyone
transfer.
Thereare2transfers
Hasthefreeand
absolutedisposition
andcontroloverthe
property.
Theidentityofthe
substitutedoesnot
matter.
Noabsolutedisposition
becauseitissubjectto
theconditionthathe
willpreserveand
transmitthesameto
thefideicommissary.
Andalso,thereis
controlontheproperty
butthereisalimitto
thecirculationofthe
property.
Thefideicommissaryis
limitedtorelatives
withinonedegreefrom
thefirstheiror
fiduciary:parentchild.
A:
1. Thattheinstitutiondoesnotgobeyond
one degree from the heir originally
instituted;
2. That the substitution be expressly
made;
3. That both the fiduciary and beneficiary
be living at the time of the testators
death;
4. That it should be imposed on the free
portionandnotonthelegitime.
A:
1. Theremustbeafirstheirorfiduciary;
2. Anabsoluteobligationisimposedupon
the fiduciary to preserve and to
transmit to a second heir the property
atagiventime;
3. Thereisasecondheirwhomustbeone
degreefromthefirstheir;
4. The first andsecond heir mustboth be
living and qualified at the time of the
deathofthetestator.
1.
FIDUCIARY
Theremustbeafirstheirorfiduciary
Thefirstheirisalmostlikeausufructuarywithright
to enjoy the property. Thus, like a usufructuary, he
cannotalienatetheproperty.Thefirstheirisobliged
to make an inventory but he is not required to
furnishabond.
Q:Whataretheobligationsofafiduciary?
A:
1. Topreservetheinheritance;
2. Todelivertheinheritance;
3. To make an inventory of the
inheritance.
Q:Whatistheperiodofthefiduciarystenure?
A:
1. Primary rule the period indicated by
thetestator
2. Secondary rule if the testator did not
indicate a period, then the fiduciarys
lifetime
A:
GR:Thefiduciaryshoulddelivertheproperty
intact
and
undiminished
to
the
fideicommisaryheiruponarrivaloftheperiod
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2. ABSOLUTEOBLIGATION
TOPRESERVEANDTRANSMITPROPERTY
Anabsoluteobligationisimposeduponthe
fiduciarytopreserveandtotransmittoasecond
heirthepropertyatagiventime.
Note:"Giventime"meansthetimeprovidedbythe
testator;ifnotprovided,thenitisunderstoodthat
theperiodisthelifetimeofthefirstheir.
st
Q:Ifthetestatorprovidedthatthe1 heirshall
enjoythepropertyduringhislifeandthatupon
his death it shall pass to another expressly
designated by the testator, but without
imposing the obligation to preserve the
property, is there fideicommissary substitution
inthiscase?
A:None.Thereisnofideicommissarysubstitution
but merely a legacy of the usufruct of the
property.
3.FIDEICOMMISSARY
Thereisasecondheirwhomustbeonedegree
fromthefirstheir.
Q:Whatdoesonedegreemean?
304
CAPACITYTOSUCCEEDOFFIDUCIARYAND
FIDEICOMMISSARY
Thefirstandsecondheirmustbothbelivingand
qualifiedatthetimeofthedeathofthetestator.
Q:Whymustboththefirstandsecondheirbe
livingandqualifiedatthetimeofthedeathof
thetestator?
A:Thefideicommissaryinheritsnotfromthefirst
heirbutfromthetestator,thus,therequirement
that the fideicommissary be alive or at least
conceivedatthetimeofthetestatorsdeath.
Note:Thefideicommissarysubstitutionmustnotbe
imposedonthelegitime,onlyonthefreeportion.
Q:Dotheheirstoafideicommissarysubstitution
inheritsuccessively?
A:No.Boththefirstheirandthefideicommissary
inheritthepropertysimultaneously,althoughthe
enjoymentandpossessionaresuccessive.
Note:Fromthemomentofdeathofthetestator,the
rightsofthefirstheirandthefiduciaryarevested.
Q:Whatistheremedyofthefideicommissaryto
protecthimselfagainstalienationtoaninnocent
thirdperson?
A:Thenullityofthefideicommissarysubstitution
does not prejudice the validity of the institution
oftheheirsfirstdesignated;thefideicommissary
clauseshallsimplybeconsideredasnotwritten.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
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SUCCESSION
Q: If the testator gives the usufruct to different
personssuccessively,whatruleswillapply?
A:Theprovisionsonfideicommissarysubstitution
alsoapplyinacasewherethetestatorgivesthe
usufructtovariouspersonssuccessively.
Q:Raymond,single,namedhissisterRuffainhis
will as a devisee of a parcel of land which he
owned. The will imposed upon Ruffa the
obligation of preserving the land and
transferring it, upon her death, to her
illegitimatedaughterScarletwhowasthenonly
one year old. Raymond later died, leaving
behindhiswidowedmother,RuffaandScarlet.
IstheconditionimposeduponRuffatopreserve
the property and to transmit it upon her death
toScarlet,valid?
Q:IfScarletpredeceasesRuffa,whoinheritsthe
property?
A:Inafideicommissarysubstitution,theintention
of the testator is to make the second heir his
ultimate heir. The right of the second heir is
simply postponed by the delivery of the
inheritance to the first heir for him to enjoy the
usufruct over the inheritance. Hence, when the
first heir predeceased the testator, the first heir
did not qualify to inherit and the right of the
second heir to receive the inheritance will no
longer be delayed provided the second heir is
qualified to inherit at the time of the testators
death. In fideicommissary substitution, the first
andsecondheirsinheritfromthetestator,hence,
both should be qualified to inherit from the
testatoratthetimeofhisdeath.
D.CONDITIONALTESTAMENTARYDISPOSITIONS
ANDTESTAMENTARYDISPOSITIONSWITHA
TERM
Q:Whatisaterm?
Note:Adispositionwithasuspensivetermdoesnot
prevent the instituted heir from acquiring his rights
and transmitting them to his heirs even before the
arrivaloftheterm.
Reason: The right oftheheir institutedsubjecttoa
termisvestedatthetimeofthetestator'sdeathhe
willjustwaitforthetermtoexpire.
Iftheheirdiesafterthetestatorbutbeforetheterm
expires, he transmits his rights to his own heirs
becauseofthevestedright.
A:Ifthedispositionissubjecttoa:
1. Suspensive term The legal heirs can
enjoy possession of the property until
the expiration of the period but they
must put up a bond (caucion muciana)
in order to protect the right of the
institutedheir.
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E.LEGITIME
1.DEFINITION
Q:Definelegitime.
A:Legitimeisthatpartofthetestator'sproperty
which he cannot dispose of because the law has
reserved it for certain heirs who are, therefore,
calledcompulsoryheirs.(Art.886)
1.
Note:Thereiscompulsiononthepartofthetestator
toreservethatpartoftheestatewhichcorresponds
tothelegitime.
2.
Q:Howislegitimedetermined?
Tothenetvalueofthehereditaryestate,shallbe
added the value of all donations by the testator
thataresubjecttocollation,atthetimehemade
them.(Art.908)
Q: Cite the rules governing the donations made
bythetestatorinfavorofhischildren,legitimate
and illegitimate, and strangers and those which
areinofficious.
4.
A:
1.
2.
3.
4.
Donationsshallberespectedaslongas
thelegitimecanbecovered,reducingor
annulling, if necessary, the devises or
legaciesmadeinthewill;
Thereductionofthedevisesorlegacies
shall be pro rata, without any
distinctionwhatever.
Note:Iftheheirsordeviseesdonotchooseto
avail themselves of the right granted by the
preceding article, any heir or devisee who did
nothavesuchrightmayexerciseit;shouldthe
latternotmakeuseofit,thepropertyshallbe
soldatpublicauctionattheinstanceofanyone
oftheinterestedparties.(Art.913)
Thetestatormaydeviseandbequeaththefree
portionashemaydeemfit.(Art.914)
306
CIVILLAWTEAM:
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SUCCESSION
RULESONLEGITIME
Q:Canthetestatordeprivethecompulsoryheirs
theirlegitimes?
Note:Onlythelegitimeisreserved.Thefreeportion
maybedisposedofbywill.
Q:Mustcompulsoryheirsaccepttheirlegitimes?
Q:Whatarethekindsoflegitime?
A:
1. Fixed If the amount (fractional part)
does not vary or change regardless of
whether there are concurring
compulsoryheirsornot.
a. legitimate
children
and
descendants (legitimate childrens
legitimeisalways)
b. legitimateparentsandascendants
Note:Factorswhichaffectthelegitime:
1. Identity of the concurring compulsory
heirsand;
2. Numberofconcurringcompulsoryheirs.
A:Thetestatorcannotmakedonationsintervivos
which impinge upon the legitime or which are
inofficious.
A:
1. Rule of preference between lines
descending line is preferred over the
ascendingline;
2.
3.
Ruleofproximity;
Right of representation, in case of
predecease,
incapacity
and
disinheritance;
4. If all the legitimate children repudiate
their legitime, the next generation of
legitimatedescendants,succeedintheir
ownright.
A:
1. Ruleofproximitynearerexcludesthe
moreremote;
2. Divisionbyline;
3. Equaldivisionwithintheline.
A:
1. In case of preterition annulment of
institution of heir and reduction of
devisesandlegacies
2. In case of partial impairment
completionoflegitime
3. In case of inofficious donation
collation
Q:Whatisthescopeoftheprohibition?
A:
1. Any renunciation of future legitimes,
whetherforavaluableconsiderationor
not;
2. Any waiver of the right to ask for the
reductionofaninnoficiousdonation;
3. Compromise between the compulsory
heirs themselves during the lifetime of
thetestator.
Note:Theprohibitionisnotapplicableincasesof:
1. Renunciationsorcompromisesmadeafter
thedeathofthetestator;
2. Donations or remissions made by the
testator to the compulsory heirs as
advancesoftheirlegitime.
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A:
1. Legitimeofcompulsoryheirs
2. Donationsintervivos
3. Preferentiallegaciesordevises
4. Allotherlegaciesordevisesprorata.
(Nethereditaryestate=[Grossestate
DebtsandCharges]+donations)
4. Determine who are the compulsory
heirs and their corresponding legitimes
usingthetableoflegitimesbelow.
5. Determinethefreeportion.
Freeportion= nethereditaryestate
Less:
legitimes(totalamount)
6. Imputationofdonations
7. Distributionoftheremainingportionto
thelegateesanddevisees.
A:Donationsintervivosgiventochildrenshallbe
charged to their legitime, unless otherwise
providedbythetestator.
TABLESOFLEGITIMES.
LegitimatechildrenorDescendants
Shareoflegitimate
childrenand
descendants
ofthenetestate
Freeportion
ofthenetestate
LegitimateParentsandAscendants
Shareof legitimate
parentsand
ascendants
ofthenetestate
Freeportion
ofthenetestate
OneLegitimatechildordescendantand
SurvivingSpouse
Shareofalegitimate
child
ofthenetestate
Shareofthesurviving
spouse
ofthenetestate
Freeportion
ofthenetestate
Illegitimatechildrenandlegitimatechildren
Shareoflegitimate
childrenand
descendants
ofthenetestate
Shareofeach
illegitimatechildren
ofthelegitimeof
eachlegitimate
childrenorascendant
Freeportion
Whateverremains
Twoormorelegitimatechildrenor
descendantandSurvivingSpouse
Shareofalegitimate
child
ofthenetestate
Portionequaltothe
Shareofthesurviving legitimeofeachofthe
legitimatechildrenor
spouse
descendant
Freeportion
Whateverremains
308
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SUCCESSION
LegitimateParents;SurvivingSpouse;
IllegitimateChildren
LegitimateParentsorAscendantsand
SurvivingSpouse
Sharesand
of
legitimate
parents
and
ascendants
ofthenetestate
ofthenetestate
Surviving
spouse
1/8ofthenetestate
ofthenetestate
Illegitimate
children
ofthenetestate
Free
portion
1/8ofthenetestate
Shareof
legitimate
parentsor
ascendants
ofthenetestate
Shareofthe
surviving
spouse
Freeportion
IllegitimatechildrenandSurvivingSpouse
Shareof
illegitimate
children
1/3ofthenetestate
Shareof
the
surviving
spouse
1/3ofthenetestate
Free
portion
1/3ofthenetestate
SurvivingSpouseAlone;Exception:Marriagein
ArticuloMortis
LegitimateParentsorAscendantsand
IllegitimateChildren
Sharesand
of
legitimate
parents
and
ascendants
ofthenetestate
Illegitimate
children
ofthenetestate
Free
portion
ofthenetestate
SurvivingSpouse;LegitimateChildrenor
Ascendants;IllegitimateChildren
Shareof
legitimate
childrenand
descendants
ofthenetestate
Surviving
spouse
Equaltotheportionofthe
legitimeofeachlegitimatechild
Illegitimate
children
oftheshareofeachlegitimate
child
Freeportion
Whateverremains
Surviving
spouse
only
ofthenetestate
Free
portion
ofthenetestate
Surviving
spouse
only
(marriage
inarticulo
mortis,
testator
diedw/in3
months)
1/3ofthenetestate
Free
portion
2/3ofthenetestate
Surviving
spouse
only
(marriage
inarticulo
mortis,
testator
diedw/in
3mos.but
havebeen
livingas
H&Wfor
notless
than5yrs)
ofthenetestate
Free
portion
ofthenetestate
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IllegitimateParentsAlone;orWith
illegitimatechildrenorLegitimateChildrenor
Descendants;orWithSurvivingSpouse
Shareof
the
ofthenetestate
illegitimate
parents
alone
Free
ofthenetestate
portion
ofthenetestate
Shareof
illegitimate
parents
ofthenetestate
Shareof
the
surviving
spouse
Free
ofthenetestate
portion
IllegitimateChildrenAlone
Shareof
illegitimate
children
ofthenetestate
Free
portion
ofthenetestate
TABLEOFINTESTATESHARES
LEGEND:
Legit.ChildrenorDescendants
Legit.ParentsorAscendants
SurvivingSpouse
NephewsandNieces
LCD
LPA
SS
NN
Illegit.ChildrenorDescendants
Illegit.ParentsorAscendantsI
BrothersandSisters
ILCD
LPA
BS
INTESTATEHEIRS
SHAREINTHEFREEPORTION
AnyClassalone
ofthefreeportion
LCDalone
SS
(SS)
LCD
SS
Remainingportionofestateafterpayinglegitimes
LegitimestobedividedequallybetweentotalnumberofchildrenplustheSS
LCD
ILCD
Remainingportionofestateafterpayinglegitimes
Legitimestobedividedbytheratioof2:1
OneLCD
OneILCD
SS
Remainingportionofestateafterpayinglegitimestobedividedbytheratioof2:1
OnepartgoestotheILCD
Sameshareasalegitimatechild
LCD
ILCD
SS
Remainingportionofestateafterpayinglegitimestobedividedbytheratioof2:1
OnepartgoestotheILCD
Sameshareasalegitimatechild,providedlegitimesarenotimpaired
LPA
ILCD
(ILCD)
310
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SUCCESSION
LPA
SS
(SS)
LPA
SS
ILCD
(SS)
ILCD
SS
1/6
1/6
SS
or
ILPA
SS
BS,NN
SS
BS,NN
(BS,NN)
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StepsinDeterminingtheLegitimeofCompulsoryHeirs
Step 1: INVENTORY
(Gross Value of Estate)
Step 2: DEDUCT
OBLIGATIONS
Step 4: Collation
312
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SUCCESSION
2.COMPULSORYHEIRSANDVARIOUS
COMBINATIONS
Q:Whoarecompulsoryheirs?
A:Thefollowingarecompulsoryheirs:
1. Legitimate children and descendants,
withrespecttotheirlegitimateparents
andascendants;
2. In default of the foregoing, legitimate
parentsandascendants,withrespectto
their
legitimate
children
and
descendants;
3. Thewidoworwidower;
4. Acknowledged natural children, and
naturalchildrenbylegalfiction;
5. Otherillegitimatechildrenreferredtoin
article287.
NOTE:CompulsoryheirsmentionedinNos.3,4,and
5arenotexcludedbythoseinNos.1and2;neither
dotheyexcludeoneanother.
A:
1. PrimarycompulsoryheirsTheyarenot
excluded by the presence of other
compulsoryheirs.
E.g.legitimateascendants
3. Concurring compulsoryheirsTheyget
their legitimes together with the
primary or secondary heirs. Neither
excludes primary or secondary heirs,
noreachother.
Legitimatechildrenanddescendants(LCD)
Q:Isanadoptedchildacompulsoryheir?
Hence,theadoptedchildrencanalreadyexclude
legitimateparents/ascendants.
Legitimateparentsandascendants(LPA)
Q:Isthepresenceofillegitimatechildrenofthe
decedentexcludetheLPA?
A:No.Legitimateparentsandascendantsconcur
withtheillegitimatechildrenofthedecedent.
Survivingspouse(SS)
Q: Can a common law spouse be a compulsory
heir?
A:No.Theremustbevalidmarriagebetweenthe
decedent and the surviving spouse. If the
marriage is null and void, the surviving spouse
cannotinherit.
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Reason:Voidablemarriagescanonlybeattacked
inadirectproceeding,i.e.annulmentproceeding.
Note:Thesurvivingspouseisnotacompulsoryheir
ofhis/herparentinlaw.
Illegitimatechildren
Compulsoryheirsofapersonwhoisillegitimate:
1. Legitimatechildrenanddescendants;
2. Illegitimatechildrenanddescendants;
3. In default of the foregoing, illegitimate
parentsonly;
4. Survivingspouse.
Q:Inwhatwaysmaycompulsoryheirsinherit?
A:Compulsoryheirsinheriteither:
1. intheirownright;or
2. byrightofrepresentation
3.RESERVATRONCAL
Q:Whatisreservatroncal?
Note:Othertermsusedtorefertoreservatroncal:
1. Lineal
2. Familiar
3. Extraordinaria
4. Semitroncal
5. Pseudotroncal
A:
1. That the property was acquired by a
descendant (called praepositus or
propositus) from an ascendant or from
a brother or sister by gratuitous title
when the recipient does not give
anythinginreturn;
2. Thatsaiddescendant(praepositus)died
withoutanissue;
3. That the same property (called
reserva) is inherited by another
ascendant (called reservista) by
operation of law (either through
intestate or compulsory succession)
fromthepraepositus;and
4. Thattherearelivingrelativeswithinthe
third degree counted from the
praepositus and belonging to the same
line from where the property originally
came(calledreservatarios).(Art.891;
Chua v. CFI of Negros Occidental,
Branch V, 78 SCRA 412; Rabuya, Civil
LawReviewer,pp.634635)
Q:Doesreservatroncalexistinanillegitimateor
adoptiverelationship?
A:DDLRRP
1. Deathofthereservista
2. Death of all the relatives within the
third degree prior to the death of the
reservista
3. Accidental Loss of all the reservable
properties
4. Renunciation or waiver by the reserves
orreservatarios
5. Registration under Act 496 without the
reservablecharacterbeingannotatedif
itfallsintothehandsofabuyeringood
faithforvalue
6. By Prescription reservista seeks to
acquire(30yearsimmovable;8years
movable)
314
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q:Differentiatereservaminimaandreserva
maxima.
A:
RESERVAMINIMA
RESERVAMAXIMA
Allofthepropertieswhich
thedescendanthad
previouslyacquiredby
gratuitoustitlefrom
anotherascendantorfrom
abrotherorsistermustbe
consideredaspassingto
theascendantreservista
partlybyoperationoflaw
andpartlybyforceofthe
descendantswill.
Alloftheproperties
whichthedescendant
hadpreviouslyacquired
bygratuitoustitlefrom
anotherascendantor
fromabrotherorsister
mustbeincludedinthe
ascendantslegitime
insofarassuchlegitime
cancontain.
Appliesintestate
succession.
Alwaysfollowedin
intestatesuccession
Q:Whoarethepartiesinreservatroncal?
A:
1. Origin
2. Propositus
3. Reservista
4. Reservatartios/Reservees
ORIGIN
Q:Whomustbetheorigininreservatroncal?
Q:Inorderforreservatroncaltotakeplace,how
should the property be transmitted from the
origintothepropositus?
Q:Cantheoriginalienatetheproperty?
A:Yes.Whiletheoriginownstheproperty,there
is no reserva yet, and therefore, he has the
perfectrighttodisposeofit,inanywayhewants,
subject, however to the rule on inofficious
donations.
PROPOSITUS
Q:Whomustbethepropositus?
Note:Togiverisetoreservetroncal,thepropositus
must not have any legitimate children, otherwise,
the reservable property will be inherited by the
latter
Q:Canthepropositusalienatetheproperty?
Note:Thepropositusisreferredtoasthearbiterof
thereserva.
RESERVISTA
Q:Whoisthereservistainreservatroncal?
Ifheinheritedthepropertyfromthepropositus,not
by legalsuccessionor by virtue of legitime, thereis
noobligationtoreserve.
Note:Thereservablepropertyisnotpartofthe
estateofthereservista.
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Q:Canthereservistaalienatetheproperty?
A:Thereservistacanalienatethepropertybeing
theownerthereofbutsubjecttothereservation.
Q:Isthereservistarequiredtofurnishabond?
A:
GR:Heisrequiredtofurnishabond,security
or mortgage to guarantee the safe delivery
laterontothereservatariosoftheproperties
concerned,inthepropercases.
XPN: The bond, security or mortgage is not
needed when the property has been
registered or annotated in the certificate of
titleassubjecttoreservatroncal.
Note:Uponthereservistasdeaththeownershipof
thereservedpropertiesisautomaticallyvestedto
thereservatarioswhoareexisting.Hence,the
reservistacannotdisposethereservedpropertyby
williftherearereservatariosexistingatthetimeof
hisdeath.
Q:Whataretheobligationsofthereservista?
A:
1. Tomakeaninventoryofthereservable
property;
2. Toannotatethereservablecharacterof
the real property in the Register of
Deedswithin90daysfromthetimehe
receivestheinheritance;
3. Tofurnishabond,security,ormortgage
toanswerforthereturnofpropertyor
itsvalue;
rd
4. To preserve the property for the 3
degreerelatives.
RESERVATARIOS
Q:Whoarethereservatarios?
A:Thereservatariosarerelativeswithinthethird
degreeofthepropositus,whobelongtothesame
linefromwhichthepropertyoriginallycame,who
will become the full owners of the property the
moment the reservista dies, because by such
death,thereservaisextinguished.
Q:Whoaretherelativeswithinthethirddegree
fromthepropositus?
A:
1. Parents;
2. Grandparents;
316
3.
4.
5.
Fullandhalfbrothersandsisters;
Greatgrandparents,
Nephewsandnieces.
Q:Whataretherequisitesforpassingoftitleto
thereservatarios?
A:
1. deathofthereservista;and
2. the fact that the reservatarios survived
thereservista.
Note:Thereservatariosinheritthepropertyfrom
thepropositus,notfromthereservista.
Thereservatariosmustbelegitimaterelativesofthe
originandthepropositus.
Reservatroncalisgovernedbythefollowingruleson
intestatesuccession:(Applicablewhenthereare
concurringrelativeswithinthethirddegree)
1. Proximity The nearer excludes the
farther
2. The direct line is preferred over the
collateralline
3. Thedescendinglineispreferredoverthe
ascendingline
Q:Whataretherightsofthereservatarios?
A:
1. Toaskfortheinventoryofallreservable
property
2. The appraisal of all reservable movable
property
3. The annotationin the registry of deeds
of the reservable character of all
reservableimmovableproperty
4. Constitutionofthenecessarymortgage.
Q:Whendoesthereservatarioacquiretheright
overthereservableproperty?
A:Thereisrepresentationinreservatroncal,but
the representative must also be within the third
degree from the propositus. (Florentino v.
Florentino)
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
OPERATIONOFRESERVATRONCAL
Theoriginofthepropertyisthelegitimateascendant,brotherorsisterofthepropositus
UpondeathoftheORIGIN,hispropertyistransmittedtothePROPOSITUSeitherbydonationintervivos
ormortiscausa,aslongasitisbygratuitoustitle.
ORIGIN
PROPOSITUS
RESERVISTA
RESERVATARIO
ThePROPOSITUSisalegitimatedescendantorhalfbrother/sisteroftheORIGINoftheproperty.
Togiverisetoreservetroncal,thePROPOSITUSmustnot haveanylegitimate children,otherwise,the
reservablepropertywillbeinheritedbythelatter
ThePROPOSITUSisthedescendantwhosedeathgivesrisetothereservatroncal,andfromwhomthe
thirddegreeiscounted.
TheRESERVISTAistheascendantwhoinheritsfromthePROPOSITUSbyoperationoflaw.Itishewhohas
theobligationtoreserve.
TherelationshipbetweentheRESERVISTAandthePROPOSITUSmustbelegitimate.
TheRESERVISTAisanabsoluteorfullowner,subjecttoaresolutorycondition.
Resolutorycondition: IfatthetimeoftheRESERVISTASsdeath,thereshouldstillexistrelativeswithinthe
thirddegree(reservatarios)ofthepropositusandbelongingtothelinefromwhichthepropertycame.
TheRESERVATARIO'sarerelativeswithinthethirddegreeofthepropositus,whobelongtothesameline
fromwhichthepropertyoriginallycame,whowillbecomethefullownersofthepropertythemomentthe
reservistadies.
ThereservatariosinheritthepropertyfromthePROPOSITUS,notfromtheRESERVISTA.
UponthedeathoftheRESERVISTA,theRESERVATARIOnearestthedecedentPROPOSITUSbecomes,
automaticallyandbyoperationoflaw,theabsoluteownerofthereservableproperty.
4.DISINHERITANCE
A.DISINHERITANCEFORCAUSE
Q:Whatisdisinheritance?
Disinheritance,however,iswithoutprejudicetothe
right of representation of the children and
descendantsofthepersondisinherited.
A:Disinheritancemustbe:
1. Madeinavalidwill;
2. Identity of the heir is clearly
established;
3. Foralegalcause;
4. Expresslymade;
5. Causestatedinthewill;
6. Absoluteorunconditional;
7. Total;
8. Causemustbetrueandifchallengedby
theheir,itmustbeprovedtobetrue.
Note:Proponentofdisinheritancehastheburdenof
proof.
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(1)RECONCILIATION
(2)RIGHTSOFDESCENDANTSOFPERSON
DISINHERITED
Q:Whatisreconciliation?
A:Thereisreconciliationwhentwopersonswho
are at odds decide to set aside their differences
andtoresumetheirrelations.Theyneednotgo
backtotheiroldrelation.
Note:Ahandshakeisnotreconciliation.Ithastobe
somethingmore.Itmustbeclearanddeliberate.
A:
1. Ifmadebeforedisinheritancerightto
disinheritisextinguished.
2. If made after disinheritance
disinheritanceissetaside.
B.DISINHERITANCEWITHOUTCAUSE
318
Q:Whatarethegroundsfordisinheritance?
A:
1. Common causes for disinheritance of
children or descendants, parents or
ascendants,andspouse:
2. PeculiarCausesforDisinheritance
a. ChildrenandDescendants:
i. Conviction of a crime which
carrieswithitapenaltyofcivil
interdiction
ii. Maltreatment of the testator
b word or deed by the
childrenordescendant
iii. When the children or
descendant
has
been
convicted of adultery or
concubinage with the spouse
ofthetestator
iv. When the children or
descendant
leads
a
dishonorable or disgraceful
life
b. ParentsorAscendants:
i. When the parent or
ascendanthasbeenconvicted
of adultery or concubinage
with the spouse of the
testator
ii. When the parents have
abandoned their children or
induced their daughters to
live a corrupt or immoral life,
or attempted against their
virtue
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
iii.
iv.
c.
Spouse:
When the spouse has given
causeforlegalseparation
ii.
When the spouse has given
grounds for the loss of
parentalauthority
5.LEGACIESANDDEVISES
i.
Q:Whatcanbebequeathedordevised?
Q:Whomaybechargedwithlegaciesand
devices?
A:
1. Anycompulsoryheir
2. Anyvoluntaryheir
3. Anylegateeordevisee
4. Theestate,representedbytheexecutor
oradministrator(Jurado,p.345)
Q:Canthetestatorbequeathordeviseathingor
propertybelongingtosomeoneelse?
A:Itdependsonwhether:
1. Thetestatorthoughtthatheownedit
A:Ifatthetimethelegacyordeviseismade,the
thingdidnotbelongtothelegateeordeviseebut
lateronheacquiresit,then:
1. Ifheacquireditbygratuitoustitle,then
thelegacyordeviseisvoid.
2.
Q:Supposethepropertybequeathedordevised
has been pledged or mortgaged, who has the
obligation to free the property from such
encumbrance?
A:
GR:Thepledgeormortgagemustbepaidby
theestate.
Q:Whatisalegacyofcredit?
A:It takesplacewhenthetestatorbequeathsto
anotheracreditagainstathirdperson.Ineffect,
itisanovationofthecreditbythesubrogationof
thelegateeintheplaceoftheoriginalcreditor.
Q:Whatisalegacyofremission?
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319
Note:
1.
2.
3.
Q:Isalegacyordeviseconsideredpaymentofa
debt,ifthetestatorhasastandingindebtedness
tothelegateeordevisee?
A:No,legacyordeviseisnotconsideredpayment
of a debt because if it is, then it would be a
uselesslegacyordevisesinceitwillreallybepaid.
Q:Whatistheorderofpaymentoflegaciesand
devises?
A:
1. Remuneratorylegaciesordevises
2. Legaciesordevisesdeclaredbytestator
tobepreferential
3. Legaciesforsupport
4. Legaciesforeducation
5. Legacies or devises of a specific
determinate thing which forms part of
theestate
6. Allothersprorata
Note:
GR:Thealienationofthepropertyrevokes
thelegacyordevisenotwithstandingthe
nullityofthetransaction.
However,whetherornotthelegacyor
deviseisrevokedornotdependsonthe
basisforthenullityofthecontract:
Ifthenullityisbasedonvitiatedconsent,
thelegacyordeviseisnotrevoked
becausetherewasnointentiontorevoke.
Forallothergrounds,thelegacyordevise
isrevoked.
XPN:Ifthesaleispactoderetroandthe
testatorreacquireditduringhislifetime.
3.
Note:Theorderofpreferenceisapplicablewhen:
1. There are no compulsory heirs and the
entireestateisdistributedbythetestator
aslegacy/devise;or
2. There are compulsory heirs but their
legitimehasalreadybeenprovidedforby
the testator and there are no donations
intervivos.
Q:WhatisthedistinctionbetweenArt.911and
Art.950?
A:
Orderofpreference
Orderofpreference
underArt.911
underArt.950
LDPO:
1. Legitimeof
compulsoryheirs;
2. Donationsinter
vivos;
3. Preferential
legaciesor
devises;
4. AllOtherlegacies
ordevisesprorata
320
Totallossofthethingbequeathed.
Note:Thelossofthethingbequeathed
mustnotbeattributedtotheheirs.There
shouldbenofaultonthepartoftheheirs.
4.
1.
2.
3.
4.
5.
RemuneratoryL/D;
PreferentialL/D;
Legacyforsupport;
Legacyforeducation;
L/Dofaspecific,
determinatething
whichformsapartof
theestate;
6. Allothersprorata
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
III.LEGALORINTESTATESUCCESSION
A.GENERALPROVISIONS
1.RELATIONSHIP
Q:Whatislegalorintestatesuccession?
A:Thefollowingareappliedsuccessively:ISRAI
1. Institution of an heir (Bequest, in case
oflegaciesordevises)
2. Substitution,ifproper
3. Representation,ifapplicable
4. Accretion,ifapplicable
5. Intestacy, if all of The above are not
applicable
A:Intestatesuccessiontakesplacewhen:
1. there is no will; the will is void, or the
willisrevoked;
2. the will does not dispose all the
property of the testator. (partial
intestacy);
3. the suspensive condition attached to
theinheritanceisnotfulfilled;
4. The heir predeceased the testator or
repudiates the inheritance and no
substitution and no right of accretion
takeplace.
5. The heir instituted is incapacitated to
succeed.
E.g.
1.
2.
3.
4.
Preterition;
Arrivaloftheresolutorytermorperiod;
Fulfillment of a resolutory condition
attachedtotheinheritance;
Noncompliance or impossibility of
complyingwiththewillofthetestator.
Q:Whoareintestateheirs?
A:
1. Legitimatechildrenordescendants
2. Illegitimatechildrenordescendants
3. Legitimateparentsorascendants
4. Illegitimateparents
5. Survivingspouse
6. Brothers and sisters, nephews and
nieces
th
7. Other collateral relatives up to the 5
degree
8. TheState.
2.RIGHTOFREPRESENTATION
Q:Whatisrightofrepresentation?
Q:Whatistheeffectofrepresentation?
Note:Perstirpesmeansinheritancebygroup,all
thosewithinthegroupinheritinginequalshares.
Representationissuperiortoaccretion.
Q:Whendoesrightofrepresentationarise?
A:Representationmayariseeitherbecauseof:
1. death,
2. incapacity,or
3. disinheritance.
Q:Whenisrightorrepresentationnotavailable?
A:
1. As to compulsory heirs: In case of
repudiation,theonewhorepudiateshis
inheritance cannot be represented.
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2.
A:No.Inrepresentation,therepresentativedoes
notinheritfromthepersonrepresentedbutfrom
thetestatorordecedent.
Note:Thisruleappliesonlywhenthedecedentdoes
nothavedescendants.
Q:Whatistheeffectifthereisnouncleoraunt
uponwhomthechildren,whoseektoinvokethe
rightofrepresentation,canconcurwith?
Q:Mayanillegitimatesiblingofthedecedentbe
represented?
322
Reason:Thelawdoesnotcreateanyrelationship
between the adopted child and the relatives of
the adopting parents, not even to the biological
orlegitimatechildrenoftheadoptingparents.
Q:Whatistheruleonequaldivisionoflines?
A:
GR: Intestate heirs equal in degree inherit in
equalshares.
XPN:
1. In the ascending line, the rule of
divisionbylineistothematernalline
and to the paternal line, and within
eachline,thedivisionispercapita.
2. In the collateral line, the fullblood
brothers/sisters will get double that of
thehalfblood.
3. The division in representation, where
division is per stirpes the
representative divide only the share
pertainingtothepersonrepresented.
Fullbloodbrotherorsisterisentitledtodoublethe
shareofhalfbrotherorsister(Art.1006).
Compulsoryheirsshall,innocase,inheritabintesto
lessthantheirlegitimeasprovidedintestamentary
succession.
IRONCURTAINRULE
Q:Whatistheironcurtainrule?
Thereisabarrierrecognizedbylawbetweenthe
legitimate relatives and the illegitimate child so
that one cannot inherit from the other and vice
versa.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
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SUCCESSION
Rationale:Thelawpresumestheexistenceof
antagonismbetweentheillegitimatechildand
thelegitimaterelativesofhisparents.
Q:Distinguishtheapplicationofironcurtainrule
andrightofrepresentation.
A:
IRONCURTAINRULE
RIGHTOF
REPRESENTATION
Prohibitsabsolutelya
successionabintestato
betweenthe
illegitimatechildand
thelegitimatechildren
andrelativesofthe
fatherormotherof
saidillegitimatechild.
Note:Ironcurtainrule
imposesalimitationon
rightof
representation.
Rightcreatedbyfiction
oflawwherethe
representativeisraised
totheplaceand
degreeoftheperson
represented,and
acquirestherights
whichthelatterwould
haveifhewereliving
orcouldhave
inherited.
Appliesiftheonewho
diedfirstisthe
legitimateparentor
childofthe
illegitimatesparent.
Reason:illegitimate
inheritsfromhis
parentsestatewhich
includeshisparents
inheritancefromsaid
legitimaterelativeor
childwhodied.
Appliesiftheonewho
diedfirstisthe
illegitimatesparent.
Reason:illegitimate
willberepresentinghis
parentbecauseofthe
predecease,thebar
imposedbytheiron
curtainruleis
renderedoperativeto
preventsuch.
Appliestoboth
intestateandtestate
succession
Determiningfactor:whodiedfirst?Isitthe
parentoftheillegitimatechildorisitthe
legitimaterelativeorchildofhisparent?
Appliesonlyin
intestatesuccession
RightofRepresentationandIronCurtainRule
(D)
Legit X
legit
(X1)
illegit
(X2)
Illegit Y
legit
(Y2)
illegit
(Y1)
Since X and Y both predeceased D, only X1 can represent X. X2 cannot by virtue of the iron curtain
rule. Both Y1 and Y2 can represent Y
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B.ORDEROFINTESTATESUCCESSION
Q:Whatistheorderofpreferencebetweenlines
inlegalorintestatesuccession?
A:Successiontakesplace:
First,inthedirectdescendingline;
Second,inthedirectascendingline;
Finally,inthecollateralline.
Q:Whatistheorderofintestatesuccessiontoa
legitimatechild?
A:
1. The
legitimate
children
and
descendants of a person who is an
illegitimate child are preferred over
other intestateheirs, without prejudice
to the right of concurrence of
illegitimate children and the surviving
spouse.
324
theestatewhiletheillegitimateparents
gettheotherhalf.
4.
5.
6.
TheState.(id.,pp.691692)
IV.PROVISIONSCOMMONTOTESTATEAND
INTESTATESUCCESSION
A.RIGHTOFACCRETION
1.DEFINITIONANDREQUISITES
Q:Whatisaccretion?
Basis:Accretionisarightbasedonthepresumed
will of the deceased that he prefers to give
certain properties to certain individuals rather
thantohislegalheirs.Accretionispreferredover
intestacy.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Q:Whataretherequisitesofaccretion?
A:
1. Two or more persons must have been
called in the testators will to the same
inheritance, legacy or devise, or to the
sameportionthereof,proindiviso
2. There must be a vacancy in the
inheritance,legacyordeviseasaresult
ofpredecease,incapacityorrepudiation
Q:Intestamentarysuccession,inwhatinstances
mayaccretiontakeplace?
A:
1. Predecease
2. Incapacity
3. Renunciation
4. Nonfulfillment of suspensive condition
imposeduponinstitutedheir
5. Ineffectivetestamentarydisposition
Q:Inintestatesuccession,inwhatinstancesmay
accretiontakeplace?
A:
1. Predeceaseoflegalheir
2. Incapacityoflegalheir
3. Repudiationbylegalheir
Reason:Norepresentationinrenunciation.
In intestacy, apply representation first. If there is
none,thenaccretionwillapply.
In testacy, apply substitution first. If there is no
substitution, then accretion will apply. However, in
testamentary succession, the inheritance must not
havebeenearmarked.Accretioncannottakeplaceif
theinheritanceisearmarked.
B.CAPACITYTOSUCCEEDBYWILLORINTESTACY
1.PERSONSINCAPABLEOFSUCCEEDING
A:Itmeansthepersonisincapacitatedtosucceed
in any form, whether by testate or intestate
succession.
Q:Whoareabsolutelyincapacitatedtosucceed?
A:
1. Thosenotlivingatthetimeofdeathof
thetestator
2.
3.
A:ACO
1. Persons guilty of Adultery or
concubinage with the testator at the
timeofthemakingofthewill;
2. Persons guilty of the same Criminal
offense,inconsiderationthereof;
3. Apublicofficerorhiswife,descendants
andascendants,byreasonofhisOffice.
(Art.739)
A:PCAVAFPF
1. Parents who have abandoned their
children or induced their daughters to
lead a corrupt or immoral life, or
attemptedagainsttheirvirtues;
2. Persons Convicted of an attempt
against the life of the testator, his or
herspouse,descendantsorascendants;
3. Persons who Accused the testator of a
crime for which the law prescribes
imprisonment for six years or more, if
the accusation has been found to be
groundless;
4. Heir of full age who, having knowledge
of the Violent death of the testator,
should fail to report it to an officer of
the law within a month unless the
authoritieshavealreadytakenaction.
5.
6.
7.
8.
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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Note:Grounds1,2,3,5and6arethesamegrounds
asindisinheritance.
Numbers6,7and8coversix(6)actswhichrelateto
wills:
1. Causingthetestatortomakeawill
2. Causingthetestatortochangeanexisting
will
3. Preventing the decedent from making a
will
4. Preventing the testator from revoking his
will
5. Supplanting, concealing, or altering the
testator'swill.
6. Falsifyingorforgingasupposedwillofthe
decedent.
RELATIVEINCAPACITYTOSUCCEED
Q:Whatisrelativeincapacitytosucceed?
A:Itmeansthepersonisincapacitatedtosucceed
becauseofsomespecialrelationtothetestator.
A:UMA
1. Undueinfluenceorinterest(Art.1027)
2. Moralityorpublicpolicy(Art.739)
3. Actsofunworthiness(Art.1032)
A:PRGWPI
1. ThePriestwhoheardtheconfessionof
thetestatorduringhislastillness,orthe
minister of the gospel who extended
spiritual aid to him during the same
period;
326
4.
Note:Numbers1to4donotapplytolegitimes.
5.
Note:Number5isanabsolutedisqualification.
6.
Individuals,
associations
and
corporations not permitted by law to
inherit.
PRIESTS
Q:Whoarecoveredbythisdisqualificationto
inherit?
A:PMRC
1. Priest who heard the confession of the
testatorduringhislastillness;
2. Minister of the gospel who extended
spiritual aid to him during the same
period;
3. Relatives of such priest or minister of
thegospelwithinthefourthdegree;or
4. TheChurch,order,chapter,community,
organization, or institution to which
suchpriestorministermaybelong;
A:
1. Thewillwasmadeduringthelastillness
ofthetestator;
2. The spiritual ministration must have
beenextendedduringthelastillness;
3. The will was executed during or after
thespiritualministration.
1. Thepriestisthesonofthesickperson?
2. The priest was the sick persons
brother?
A:
1. Yes.Hecangetthelegitime.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
Note:Apriestisincapacitatedtosucceed
when the confession is made prior to or
simultaneouslywiththemakingofawill.
2.
Yes.Hecaninheritbyintestacy.
GUARDIANS
Q:Whatisthecoverageofthisdisqualification?
Q:Whendoesthedisqualificationapply?
A:
GR: The disqualification applies when the
disposition is made after the guardianship
beganorbeforeguardianshipisterminated
approval of final accounts or lifting of
guardianship.
ATTESTINGWITNESSES
Q:Whoarecoveredbythedisqualification?
A:
1. Attesting witness to the execution of a
will;
2. Theattestingwitness:
a. spouse,
b. parents,or
c. children,or
3.
Q:Willthedisqualificationstillapplyifthereare
otherwitnessestothewill?
A:Itdependsuponcompliancewiththerequisite
number of witnesses. If, notwithstanding the
disqualified witness, the number of witnesses is
sufficient,theformerisnotdisqualified.
PHYSICIANS
Q:Uponwhomdoesthedisqualificationapply?
A:PSNHD
1. Physician;
2. Surgeon;
3. Nurse;
4. Healthofficer;or
5. Druggist
Q:Whatmustbepresentforthisdisqualification
toapply?
A:
1. Thewillwasmadeduringthelastillness
2. The sick person must have been taken
caredofduringhislastillness.Medical
attendancewasmade.
3. Thewillwasexecutedduringorafterhe
wasbeingtakencaredof.
PROHIBITEDBYLAWTOINHERIT
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UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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2.UNWORTHINESSVS.DISINHERITANCE
Q:
Distinguish
Unworthiness
from
Disinheritance.
A:
DISINHERITANCE
UNWORTHINESS
Effectsontheinheritance
Exclusionfromthe
Deprivationofa
entireinheritance.
compulsoryheirofhis
However,donations
legitime.
intervivosarenot
affected.
Effectsofpardonorreconciliation
Reconciliationbetween
theoffenderandthe
Ifthetestatorpardons
offendedpartydeprives
theactofunworthiness,
thelatteroftherightto
thecauseof
disinherit,andrenders
unworthinessshallbe
ineffectualany
withouteffect.
disinheritancethatmay
havebeenmade.
Mannerofreconciliationorpardon
Expressorimplied
Grounds
Therearegroundsfordisinheritancewhicharealso
causesforincapacitybyreasonofunworthiness.
Effectofsubsequentreconciliationifdisinheritance
hasalreadybeenmadeonanyofthegrounds
whicharealsocausesforunworthiness
Themomentthetestatorusesoneofthecausesfor
unworthinessasagroundfordisinheritance,he
therebysubmitsittotheruleondisinheritance.
(Rabuya,CivilLawReviewer,pp.644649;704708)
C.ACCEPTANCEANDREPUDIATIONOFTHE
INHERITANCE
Q:Whatarethethreeprincipalcharacteristicsof
acceptanceandrepudiation?
A:
1. Itisvoluntaryandfree
2. Itisretroactive
3. Oncemade,itisirrevocable
A:
1. Certaintyofthedeathofthedecedent
2. Certaintyoftherightofinheritance
328
ACCEPTANCE
Q:Howmayinheritancebeaccepted?
A:
1. Express acceptance through a public
orprivateinstrument
2. Tacit acceptance through acts by
which the intention to accept is
necessarilyimpliedorwhichonewould
have no right to do except in the
capacityofanheir.
Q:Whenisinheritancedeemedaccepted?
A:
1. Whentheheirsells,donates,orassigns
hisrights
2. When the heir renounces it for the
benefitofoneormoreheirs
3. When renunciation is in favor of all
heirsindiscriminatelyforconsideration
4. Othertacitactsofacceptance:
a. Heir demands partition of the
inheritance
b. Heir alienates some objects of the
inheritance
c. Acts
of
preservation
or
administration if, through such
acts, the title or capacity of the
heirhasbeenassumed
d. Under Art. 1057, failure to signify
acceptance or repudiation within
30 days after an order of
distributionbytheprobatecourt.
REPUDIATION
Q:Whatarethewaysbywhichtherepudiation
of the inheritance, legacy or devise may be
made?
A:
1. Bymeansofapublicinstrument
2. Bymeansofanauthenticinstrument
3. Bymeansofapetitionpresentedtothe
court having jurisdiction over the
testamentaryorintestateproceedings.
Q:Whatistheeffectofrepudiationifanheiris
bothatestateandlegalheir?
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
SUCCESSION
heir, he may still accept the inheritance as a
testateheir.
Q:Whatistheremedyiftheheirrepudiatesthe
inheritancetotheprejudiceofhiscreditors?
Requisites:
1. Theheirwhorepudiatedhisinheritance
must have been indebted at the time
whentherepudiationismade
2. The heirdebtor must have repudiated
his inheritance according to the
formalitiesprescribedbylaw
3. Such act of repudiation must be
prejudicialtothecreditororcreditors.
4. There must be judicial authorization
(Art.1052)
D.COLLATION
Q:Whatiscollation?
A:
1. Absolutely no collation expenses for
support, education (elementary and
secondary only), medical attendance,
even in extraordinary illness,
apprenticeship, ordinary equipment or
customarygifts.
2. Generallynotimputedtolegitime:
a. Expenses incurred by parents in
giving their children professional,
vocational, or other career unless
the parents so provide, or unless
theyimpairthelegitime.
b. Wedding gifts by parents and
ascendants consisting of jewelry,
clothing and outfit except when
they exceed 1/10 of the sum
disposablebywill.
E.PARTITIONANDDISTRIBUTIONOFESTATE
1.PARTITION
Q:Whatispartitionanddistribution?
A:Itistheseparation,divisionandassignmentof
athingheldincommonamongthosetowhomit
maybelong.
Q:Whomayeffectpartition?
A:Thepartitionmaybeeffectedeither:
1. By the decedent himself during his
lifetimebyanactintervivosorbywill
2. By a third person designated by the
decedentorbytheheirsthemselves
3. By a competent court in accordance
withtheNewRulesofCourt
Q:Whocandemandpartition?
A:Any:
1. Compulsoryheir
2. Voluntaryheir
3. Legateeordevisee
4. Person who has acquired an interest in
theestate
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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Q:Whenpartitioncannotbedemanded?
A:Partitioncannotbedemandedwhen:PAPU
1. Expressly Prohibited by testator for a
periodnotmorethan20years
2. Coheirs Agreed that estate not be
divided for period not more than 10
years,renewableforanother10yrs
3. Prohibitedbylaw
4. To partition estate would render it
Unserviceable for use for which it was
intended
2.PARTITIONINTERVIVOS
Q:Cananestatebepartitionedintervivos?
3.EFFECTSOFPARTITION
Q:Whataretheeffectsofpartition?
A:
1. Confers upon each heir the exclusive
ownershipofpropertyadjudicated.
2. Afterthepartition,thecoheirsshallbe
reciprocally bound to warrant the title
to (warranty against eviction) and the
quality of (warranty against hidden
defects)eachpropertyadjudicated.
3. Theobligationofwarrantyshallceasein
thefollowingcases:
a. When the testator himself has
made the partition unless his
intention was otherwise, but the
legitime shall always remain
unimpaired.
b. When it has been expressly
stipulated in the agreement of
partition, unless there has been
badfaith.
c. When the eviction was due to a
cause subsequent to the partition,
orhasbeencausedbythefaultof
thedistributeeoftheproperty.
330
A:
1. Between a true heir and several
mistakenheirspartitionisvoid.
2. Between several true heirs and a
mistaken heir transmission to
mistakenheirisvoid.
3. Through the error or mistake; share of
true heir is allotted to mistaken heir
partition shall not be rescinded unless
thereisbadfaithorfraudonthepartof
the other persons interested, but the
latter shall be proportionately obliged
topaythetrueheirofhisshare.
Q:Whenpartitioncannotbedemanded?
A:Partitioncannotbedemandedwhen:PAPU
1. Expressly Prohibited by testator for a
periodnotmorethan20years
2. Coheirs Agreed that estate not be
divided for period not more than 10
years,renewableforanother10yrs
3. Prohibitedbylaw
4. To partition estate would render it
Unserviceable for use for which it was
intended
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
PARTNERSHIP
I.CONTRACTOFPARTNERSHIP
A.DEFINITION
Q:Whatispartnership?
A:Acontractwherebytwoormorepersonsbind
themselves to contribute money, property, or
industrytoacommonfund,withtheintentionof
dividingtheprofitsamongthemselves.
B.ELEMENTS
A:
1. Agreement to contribute money,
propertyorindustrytoacommonfund
(mutual contribution to a common
stock);and
2. Intention to divide the profits among
thecontractingparties(jointinterestin
the profits). (Evangelista v. Collector of
Internal Revenue, G.R. No. L9996, Oct.
15,1987).
Q:Whataretherequisitesofapartnership?
A:ICJ
1. Intentiontocreateapartnership
2. Common
fund
obtained
from
contributions
3. Jointinterestindividingtheprofits(and
losses)
Q:Whatarethecharacteristicsofapartnership?
A:BONCCPP
1. Bilateral it is entered into by two or
more persons and the rights and
obligations arising therefrom are
reciprocal
2. Onerouseachofthepartiesaspiresto
procure for himself a benefit through
thegivingofsomething
3. Nominate it has a special name or
designationinourlaw
4. Consensual perfected by mere
consent
5. Commutativetheundertakingofeach
of the partners is considered as the
equivalentofthatoftheothers
6.
A:
1. Yes. Both elements in a contract of
partnership
exist:
a)
mutual
contributiontoacommonstock,andb)
a joint interest in the profits. If the
contractcontainsthesetwoelements,a
partnershiprelationresults,andthelaw
itself fixes the incidents of this relation
if the parties fail to do so. In this case,
therewasmoneyfurnishedbyJoseand
received by Francisco for the purchase
of the cascoes and there was also an
intention to divide the profits
proportionately between them. Thus,
there is a partnership by virtue of the
verbal agreement between Jose and
Francisco.
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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INTENTTOCREATEAPARTNERSHIP
332
ofthepriceandthatanequaldivisionshouldbe
madebetweenthemofthelandthuspurchased.
Despite Catalinosdemand foran equaldivision
between them, Ceferino refused to do so and
even profited from the fruits of the land. Are
theypartnersorcoowners?
A:Theyarecoownersbecauseitdoesnotappear
thattheyenteredintoanycontractofpartnership
but only for the sole transaction of acquiring
jointlyorbymutualagreementofthelandunder
theconditionthattheywouldpayoftheprice
ofthelandandthatitbedividedequallybetween
them. (Gallemit v. Tabiliran, G.R. No. 5837, Sept.
15,1911)
COMMONFUND
Q: May a partnership be formed even if the
commonfundiscomprisedentirelyofborrowed
orloanedmoney?Whatwouldbetheliabilityof
thepartnersinsuchacase?
A: Yes. A partnership may be deemed to exist
among parties who agree to borrow money to
pursue a business and to divide the profits or
losses that may arise therefrom, even if it is
shownthattheyhavenotcontributedanycapital
of their own to a "common fund." Their
contribution may be in the form of credit or
industry, not necessarily cash or fixed assets.
Being partners, they are all liable for debts
incurred by or on behalf of thepartnership. (Lim
Tong Lim v. Philippine Fishing Gear Industries,
Inc.,G.R.No.136448,Nov.3,1999)
SHAREINPROFITSANDLOSSES
Q: Mariano and Isabelo entered into a
partnership agreement wherein they are to
contribute P15,000 each for the purpose of
printing 95,000 posters. Isabelo was unable to
printenoughposterspursuanttotheagreement,
thus he executed in favor of Mariano a
promissorynoteinanamountequivalenttothe
unrealizedprofitduetoinsufficientprinting.The
whole amount became due but Isabelo
defaultedpayment.IsMarianoentitledtofilea
casefortherecoveryoftheunrealizedprofitof
thepartnership?
A:No.Theessenceofapartnershipistosharein
the profits and losses, thus, Mariano should
shoulderthelosseswithIsabelo.(MoranJr.,v.CA,
G.R.No.L59956,Oct.31,1984)
Q: To form a lending business, it was verbally
agreedthatNoynoywouldactasfinancierwhile
CoryandKriswouldtakechargeofsolicitationof
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
membersandcollectionofloanpayments.They
agreed that Noynoy would receive 70% of the
profitswhileCoryandKriswouldearn15%each.
Thepartiesexecutedthe'ArticlesofAgreement'
whichformalizedtheirearlierverbalagreement.
Later,NoynoyfiledacomplaintagainstCoryand
Kris for misappropriation of funds allegedly in
their capacitiesas Noynoys employees. In their
answer, Cory and Kris asserted that they were
partners and not mere employees of Noynoy.
What kind of relationship existed between the
parties?
A: A partnership was formed among the parties.
The "Articles of Agreement" stipulated that the
signatoriesshallsharetheprofitsofthebusiness
in a 701515 manner, with Noynoy getting the
lion's share. This stipulation clearly proved the
establishmentofapartnership.(Santosv.Spouses
Reyes,G.R.No.135813,Oct.25,2001)
Q:Joseconveyedhislotsinfavorofhisfoursons
in order for them to build their residences. His
sons sold the lots since they found the lots
impractical for residential purposes because of
high costs of construction. They derived profits
from the sale and paid income tax. The sons
were required to pay corporate income tax and
income tax deficiency, on the theory that they
formed an unregistered partnership or joint
venturetaxableasacorporation.Didthesiblings
formapartnership?
A:No.Theoriginalpurposewastodividethelots
for residential purposes. If later, they found out
thatitisnotfeasibletobuildtheirresidenceson
the lots, they can dissolve the coownership by
reselling said lots. The division on the profit was
merely incidental to the dissolution of the co
ownership which was in the nature of things a
temporary state. (Obillos, Jr. v. CIR, G.R. No. L
68118,Oct.29,1985)
C.RULESTODETERMINEEXISTENCE
Q:Whataretherulestodeterminetheexistence
ofpartnership?
A:
1. Personswhoarenotpartnersastoeach
other are not partners as to third
persons.
2. Coownership/copossession does not
ofitselfestablishapartnership.
3. Sharing of gross returns does not of
itselfestablishapartnership.
4. Receipt of a person of a share in the
profitsisaprimafacieevidencethathe
Q: Distinguish partnership
ownership/copossession.
A:
from
co
COOWNERSHIP/
COPOSSESSION
Intenttoderiveprofits
Theprofitsmustbe
derivedfromthe
Thecoownerssharein
operationofthe
theprofitsderived
businessorundertaking
incidenttothejoint
bythemembersofthe
ownership.
associationandnot
merelyfromproperty
ownership.
Existenceoffiduciaryrelationship
Thereisawelldefined
Thereisnofiduciary
fiduciaryrelationship
relationshipbetween
betweenthemas
theparties.
partners.
Remedyfordispute
Theremedyforadispute
Theremedywouldbe
ordifferencebetween
anaction,asfor
themwouldbeanaction
instance,fornon
fordissolution,
performanceofa
termination,and
contract.
accounting.
Intent
Theremustbean
Thereisnointentto
unmistakableintention
formapartnership.
toformapartnership.
PARTNERSHIP
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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333
If,aftersuchpartition,anheirallowshissharesto
be held in common with his coheirs under a
singlemanagementtobeusedwiththeintentof
making profit thereby in proportion to his share,
therecanbenodoubtthat,evenifnodocument
orinstrumentwereexecutedforthepurpose,for
tax purposes, at least, an unregistered
partnership is formed. (Ona v. Commissioner of
Internalrevenue,45SCRA74[1972])
Q:Whatarethetypicalincidentsofpartnership?
A:
1. Thepartnersshareinprofitsandlosses.
(Arts.1767,179798)
2. They have equal rights in the
management and conduct of the
partnershipbusiness.(Art.1803)
3. Every partner is an agent of
partnership, and entitled to bind the
other partners by his acts, for the
purposeofitsbusiness.(Art.1818)
4. Allpartnersarepersonallyliableforthe
debts of the partnership with their
separateproperty(Arts.1816,182224)
exceptlimitedpartners.
5. A fiduciary relationship exists between
thepartners.(Art.1807)
6. On dissolution, the partnership is not
terminated, but continues until the
windingupofpartnershipiscompleted.
(Art1828)
A:
1. Distributionofprofits
a. Thepartnersshareintheprofits
accordingtotheiragreement
b. Intheabsenceofsuch:
i. Capitalistpartnerin
proportiontohiscontribution
ii. Industrialpartnerwhatis
justandequitableunderthe
circumstances
2. Distributionoflosses
a. The partners share in the losses
accordingtotheiragreement
b. In the absence of such, according
totheiragreementastoprofits
334
c.
Q:Whatistheruleregardingastipulationwhich
excludes a partner in the sharing of profits and
losses?
A:
GR:Stipulationisvoid.
XPN:Industrialpartnerisnotliableforlosses
[Art. 1797(2), NCC]. However, he is not
exempted from liability insofar as third
personsareconcerned.
Note:Lossisdifferentfromliability
If,besideshisservicestheindustrialpartnerhas
contributedcapital,heshallalsoreceiveashare
intheprofitsinproportiontohiscapital.
D.HOWPARTNERSHIPISFORMED
Q:Howarepartnershipsformed?
A:
GR:Nospecialformisrequiredforitsvalidity
orexistence.(Art.1771,NCC)
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
a.
mustregisterwithSEC.However,thisregistration
requirement is not mandatory. Article 1768 NCC
explicitlyprovidesthatthepartnershipretainsits
juridicalpersonalityevenifitfailstoregister.The
failure to register the contract of partnership
does not invalidate the same as among the
partners,solongasthecontracthastheessential
requisites, because the main purpose of
registrationistogivenoticetothirdparties,andit
can be assumed that the members themselves
knew of the contents of their contract. Non
compliance with this directory provision of the
lawwillnotinvalidatethepartnership.
A partnership may be constituted in any form,
except where immovable property of real rights
are contributed thereto, in which case a public
instrument shall be necessary. Hence, based on
the intention of the parties, a verbal contract of
partnershipmayarise.(SungaChanv.Chua,G.R.
No.143340,Aug.15,2001)
Note: Registration is merely for administration and
licensing purposes; hence, it shall not affect the
liabilityofthepartnershipandthemembersthereof
tothirdpersons.[Art.1772,(2),NCC]
A:Itisoneinwhichthetermofitsexistencehas
beenagreeduponbythepartnerseither:
1. Expresslythereisadefiniteperiod
2. Impliedly a particular enterprise or
transactionisundertaken
Note:Themereexpectationthatthebusinesswould
besuccessfulandthatthepartnerswouldbeableto
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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recouptheirinvestmentisnotsufficienttocreatea
partnershipforaterm.
CLASSIFICATIONSOFPARTNERSHIP
Q:Whendoesapartnershipcommencetoexist?
Q:Statetheclassificationsofpartnership.
A:Asto:
1. Object
a. Universalpartnership
i. of all present property (Art.
1778, NCC) comprises the
following:
propertywhichbelonged
toeachofthepartnersat
the time of the
constitution of the
partnership
2. Liabilityofpartners
a. General partnership One where
all partners are general partners
whoareliableevenwithrespectto
their individual properties, after
the assets of the partnership have
beenexhausted(Paras,p.411)
b. Limited partnership One formed
by 2 or more persons having as
members one or more general
partners and one or more limited
partners, the latter not being
personallyliablefortheobligations
ofthepartnership.
3. Duration
a. Partnership at will Partnership
for a particular undertaking or
venture which may be terminated
anytimebymutualagreement.
b. Partnership with a fixed period
Thetermforwhichthepartnership
is to exist is fixed or agreed upon
or one formed for a particular
undertaking.
4. Legalityofexistence
a. Dejurepartnership
b. Defactopartnership
Q:Whenisapartnershipatwillterminate?
A: It may be lawfully terminated at any time by
theexpresswillofallthepartnersoranyofthem.
Q:Howisapartnershipatwilldissolved?
A: Any one of the partners may dictate a
dissolutionofapartnershipatwill.
Note: The partner who wants the partnership
dissolved must do so in good faith, not that the
attendance of bad faith can prevent thedissolution
of the partnership, but to avoid the liability for
damagestootherpartners.
336
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
5.
6.
7.
Representationtoothers
a. Ordinaryorrealpartnership
b. Ostensible or partnership by
estoppel When two or more
persons attempt to create a
partnershipbutfailtocomplywith
thelegalpersonalitiesessentialfor
juridical personality, the law
considers them as partners, and
the association is a partnership
insofar as it is favorable to third
persons,byreasonoftheequitable
principle of estoppel (MacDonald
et. al. v. Natl. City Bank of New
York, G.R. No. L7991, May 21,
1956)
Publicity
a. Secret partnership Partnership
thatisnotknowntomanybutonly
astoitspartners.
b. NotoriousoropenpartnershipIt
is known not only to the partners,
buttothepublicaswell.
Purpose
a. Commercial or trading One
formed for the transaction of
business.
Q:Whatarethedifferentkindsofpartnership
undertheSpanishCivilCode?
A:
1. Sociedad Anonima similar to
anonymouspartnership
2. SociedadColectivawhichisgeneralor
collectivepartnership
3. Sociedad de Cuentas en Participacion
jointaccountpartnership
4. SociedadMercantileRegularColectiva
mercantilepartnershipcompany
5. SociedadLeonilapartnershipbywhich
theentireprofitsshouldbelongtosome
ofthepartnersinexclusionoftherest
Q:Whomaybepartners?
A:
GR: Any person capacitated to contract may
enterintoacontractofpartnership.
XPNs:
1. Personswhoareprohibitedfromgiving
each other any donation or advantage
2.
3.
Q:Whatistheprincipleofdelectuspersonae?
A:Thisreferstotherulethatisinherentinevery
partnership, that no one can become a member
of the partnership association without the
consentofallthepartners.
Note:Evenifapartnerwillassociateanotherperson
in his share in the partnership, the associate shall
not be admitted into the partnership without the
consent of all the partners, even if the partner
havinganassociateshouldbeamanager(Art.1804,
NCC).
Q:Whatarethedifferentkindsofpartners?
A:
1. CapitalistContributesmoneyor
propertytothecommonfund
2. Industrial Contributes only his
industryorpersonalservice
rd
3. General One whose liability to 3
persons extends to his separate or
personalproperty
rd
4. Limited One whose liability to 3
persons is limited to his capital
contribution
5. Managing Manages the affairs or
businessofthepartnership
6. Liquidating Takes charge of the
winding up of partnership affairs upon
dissolution
7. Partner by estoppel Is not really a
partnerbutisliableasapartnerforthe
rd
protectionofinnocent3 persons
8. Continuing partner Continues the
business of a partnership after it has
been dissolved by reason of the
admissionofanewpartner,retirement,
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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9.
10.
11.
12.
13.
14.
A:
1. PartnersPartners
2. PartnersPartnership
rd
3. Partnership3 persons with whom it
contracts
4. Partners3rd persons with whom
partnershipcontracts.
F.UNIVERSALVS.PARTICULAR;
GENERALVS.LIMITED
UNIVERSALPARTNERSHIP
A:
ALLPROFITS
ALLPRESENTPROPERTY
Whatconstitutescommonproperty
Onlyusufructof
Allpropertiesactually
thepropertiesof
belongingtothepartnersare
thepartners
contributedtheybecome
becomecommon
commonproperty
property
(ownedbyallofthepartners
andthepartnership)
Astoprofitsascommonproperty
Astoprofitsfromothersources:
Allprofits
acquiredbythe
GR:Asidefromthecontributed
industryofthe
properties,theprofitsofsaid
partnersbecome
propertybecomecommon
commonproperty
property
(whetherornot
theywere
XPN:Profitsfromother
obtainedthrough
sourcesmaybecomecommon
338
theusufruct
contributed)
ifthereisastipulationtosuch
effect
Astopropertiessubsequently
acquired:
GR: Propertiessubsequently
acquiredbyinheritance,legacy
ordonation,cannotbeincluded
inthestipulation
XPN:Onlyfruitsthereofcanbe
includedinthestipulation(Art.
1779,NCC)
Q:IftheArticlesofUniversalPartnershipfailto
specifywhetheritisoneofallpresentproperty
orofprofits,whatshallbethenatureofsuch?
PARTICULARPARTNERSHIP
Q:Whatisparticularpartnership?
Q:J,PandBformedalimitedpartnershipcalled
Suter Co., with P as the general partner and J
and B as limited partners. J and B contributed
P18,000andP20,000respectively.Later,JandB
got married and P sold his share of the
partnership to the spouses which was recorded
in the SEC. Has the limited partnership been
dissolvedbyreasonofthemarriagebetweenthe
limitedpartners?
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
individual interest did not become common
Q:Whoisageneralpartner?
property after their marriage. (Commissioner of
authorized
Q:Whataretheobligationsofapartner?
2. Whenheactsinbehalfandinthename
ofthepartnership
A:
1. Obligationsamongthemselves
GENERALPARTNERSHIP
2. Obligationstothirdpersons
Q:Whatisgeneralpartnership?
Q:Whatisthebasisforsuchobligations?
th
411,19696 ed)
Q:Whatarethedistinctionsbetweenageneralandalimitedpartner/partnership?
A:
GENERAL
LIMITED
ExtentofLiability
Personallyliableforpartnershipobligations
Liabilityextendsonly tohiscapitalcontributions
RightinManagement
Whenmannerofmanagementisnotagreedupon,
allgeneralpartnershaveanequalrightinthe
Noparticipationinmanagement
managementofthebusiness
Contribution
Contributecash,propertyorindustry
Contributecashorpropertyonly,notindustry
IfProperPartyto ProceedingsByorAgainstPartnership
Not proper party to proceedings by/against partnership,
unless:
Properpartytoproceedingsby/againstpartnership 1. Heisalsoageneralpartner;or
2. Where the object of the proceeding is to enforce a
limitedpartnersrightorliabilitytothepartnership
AssignmentofInterest
Interestisnotassignablewithoutconsentofother
Interestisfreelyassignable
partners
FirmName
GR: Namemustnot appearinfirmname
XPNs:
1. Itisalsothesurnameofageneralpartner;
Namemayappearinfirmname
2. Prior to the time when the limited partner became
such,thebusinesshadbeencarriedonunderaname
inwhichhissurnameappeared.
ProhibitiontoEngageinOtherBusiness
Prohibitedinengaginginbusiness
Noprohibition againstengaginginbusiness
EffectofDeath,Insolvency,Retirement,Insanity
Retirement,death,insolvency,insanityofgeneral
Doesnothavesameeffect;rightsaretransferredtolegal
partnerdissolvespartnership
representative
Creation
Asarule,itmaybeconstitutedinanyform,by
Createdbythemembersaftersubstantialcompliancein
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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contractorconductofthepartnership
goodfaithoftherequirementssetforthbylaw
Composition/Membership
Composedofoneormoregeneralpartnersandoneor
Composedonlyofgeneralpartners
morelimitedpartners
G.PARTNERSHIPBYESTOPPEL
Q:Whoisapartnerbyestoppel?
A:Onewho,bywordsorconductdoesanyofthe
following:
1. Directlyrepresentshimselftoanyoneas
apartnerinanexistingpartnershiporin
anonexistingpartnership
2. Indirectly represents himself by
consentingtoanotherrepresentinghim
as a partner in an existing partnership
orinanonexistingpartnership
A:
1. Defendant represented himself as
partner or is represented by others as
such, and did not deny/refute such
representation.
2. Plaintiffreliedonsuchrepresentation.
3. Statementofdefendantisnotrefuted.
Q:Whataretheliabilitiesincaseofestoppel?
A:
WhenPartnershipisLiable
Ifallactualpartnersconsentedtothe
representation,thentheliabilityofthepersonwho
representedhimselftobeapartnerorwho
consentedtosuchrepresentationandtheactual
partnerisconsideredapartnershipliability
WhenLiabilityisPRORATA
When there is no existing partnership and all those
represented as partners consented to the
representation, then the liability of thepersonwho
represented himself to be a partner and all who
madeandconsentedtosuchrepresentation,isjoint
orprorata
WhenLiabilityisSEPARATE
Whenthereisnoexistingpartnershipandnotallbut
only some of those represented as partners
consented to the representation, or none of the
partnership in an existing partnership consented to
such representation, then the liability will be
separate
340
H.PARTNERSHIPV.JOINTVENTURE
Q:Whatisajointventure?
A:Anassociationofpersonsorcompaniesjointly
undertaking some commercial enterprise;
generally,allcontributesassetsandsharerisks.It
requires a community of interest in the
performance of the subject matter, a right to
direct and govern the policy in connection
therewith, and a duty which may be altered by
agreementtosharebothinprofitsandlosses.
Partnership
JointVenture
Transactionsenteredinto
Thedurationofa
Limitedtotheperiodin
partnershipgenerally
whichthegoodsare
relatestoacontinuing
soldortheprojectis
businessofvarious
carriedonorasingle
transactionsofacertain
transaction.
kind.
Nature
Permanent,partnersare
interestedincarryingon
togetherofageneraland
continuingbusinessofa
Temporary,althoughit
particularkind.
maycontinuefora
numberofyears.
Note:Aparticular
partnershiphasalimited
andtemporaryoradhoc
nature,beingconfinedto
asingleundertaking.
FirmNameandLiablities
Theremustbea
partnershiporfirmname
Afirmnameisnot
underwhichthe
necessary,thusthe
partnershipshalloperate.
participatingpersons
Thenamesofthe
cantransactbusiness
partnersmayappearin
undertheirownname
thefirmnameandthe
andcanbeindividually
actofthepartnerswill
liabletherefore.
makethepartnership
liable.
Corporationaspartner
Corporationscan
Corporationcannotenter
engageinajoint
intoapartnership
venturewithothers
contract,thusitcannot
throughacontractof
beapartnerbyreasonof
publicpolicy;otherwise agreementifthenature
oftheventureinline
peopleotherthanits
withthebusinessofthe
officersmaybeableto
corporationanditis
bindit(Albano,CivilLaw
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
Reviewer,1998,p.570)
authorizedinits
charter.
LegalPersonality
A partnership acquires
personality
after
following the requisites
required by law. e.g. Art.
17711773,NCC
Ajointventurehasno
legalpersonality.
Note: SEC registration is
not required before a
partnershipacquireslegal
personality. (Art. 1768,
NCC)
I.PROFESSIONALPARTNERSHIP
Q:Whatisaprofessionalpartnership?
Q:Inaprofessionalpartnership,whoisdeemed
engagedinthepracticeofprofession?
A:Partnershipbetweenlawyersandmembersof
other profession or nonprofessional persons
should not be formed or permitted where any
partofthepartnershipsemploymentconsistsof
the practice of law. (Canons of Professional
Ethics)
Q:Whatarethecharacteristicsofapartnership
forthepracticeoflaw?
A:
a. A duty of public service, of which the
emolumentisabyproduct
b. Arelationasanofficerofcourttothe
administrationofjustice
c. A relation to clients in the highest
fiduciarydegree
d. A relationship to colleagues at the bar
characterized by candor, fairness, and
unwillingness to resort to current
business methods of advertising and
encroachment on their practice, or
dealingwiththeirclients.(IntheMatter
ofPetitionforAuthoritytoContinueUse
of Firm Name Sycip, Salazar, etc. /
Ozeata Romulo, etc., 92 SCRA 1
[1979], citing H.S. Drinker, Legal Ethics
[1953],pp45.)
A:Intheselectionanduseoffirmname,nofalse,
misleading, assumed, or trade names should be
used.(CanonsofProfessionalEthics)
J.MANAGEMENTOFTHEPARTNERSHIP
A:
Appointmentthrough
AppointmentOther
theArticlesof
ThanintheArticles
Partnership
Powerisirrevocable
withoutjustorlawful
cause
Note:Voterequiredfor
Powertoactisrevocable
removalofmanager
1. For just cause anytime,withorwithout
Vote
of
the cause(shouldbedoneby
thecontrollinginterest)
controlling
partners
(controlling
financialinterest)
2. Without cause or
for unjust cause
Unanimousvote
ExtentofPower
1. If he acts in good
faith,hemaydoall
Aslongasheisa
acts
of
manager,hecanperform
administration
allactsofadministration
(despite
opposition of his (ifothersoppose,hecan
beremoved)
partners)
2. If he acts in bad
faith,hecannot
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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Q:Whatistherulewheretherearetwoormore
managers?
A:
Withoutspecificationoftheirrespectiveduties
andwithoutstipulationrequiringunanimityof
action
GR: Each may separately execute all acts of
administration
(unlimited
power
to
administer)
XPN:Ifanyofthemanagersopposes,decision
ofthemajorityprevails
Note:IncaseoftieDecisionofthecontrolling
interest(whoarealsomanagers)shallprevail
Nature
GR:Unanimousconsentofallthemanaging
partnersshallbenecessaryforthevalidityofthe
actsandabsenceorinabilityofanymanaging
partnercannotbealleged.
XPN:Wherethereisanimminentdangerofgrave
orirreparableinjurytothepartnership.
A:
1. All partners shall be considered
managersandagents
2. Unanimous consent is required for
alterationofimmovableproperty
Q:AzucenaandPedroacquiredaparcelofland
andabuilding.AzucenaobtainedaloanfromTai
Tong Co., secured by a mortgage which was
executed over the land and building. Arsenio,
representative of Tai Tong, insured it with
Travellers Multi Indemnity Corporation. The
buildingandthecontentsthereofwererazedby
fire. Travellers failed to pay the insurance.
Hence, Azucena and Pedro filed a case against
TravellerswhereinTaiTongintervenedclaiming
entitlement to the proceeds from Travellers.
Whoisentitledtotheproceedsofthepolicy?
A:TaiToingisentitledtotheinsuranceproceeds.
Arseniocontractedtheinsurancepolicyonbehalf
of Tai Tong. As the managing partner of the
partnership, he may execute all acts of
administration including the right to sue debtors
of the partnership in case of their failure to pay
their obligations when it became due and
demandable. Or at the very least, Arsenio is an
agent of the partnership. Being an agent, it is
understoodthatheactedforandinbehalfofthe
342
Note:Ifrefusalofpartnerismanifestlyprejudicialto
theinterestofpartnership,courtsinterventionmay
besought.
A:
1. Separate or individual creditors should
first secure a judgment on their credit;
and
2. Applytothepropercourtforacharging
order subjecting the interest of the
debtorpartner in the partnership for
thepaymentoftheunsatisfiedamount
of the judgment debt with interest
thereon.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
Q:Whataretheeffectsoftheactsofpartners?
A:
ACTSOFAPARTNER
Actsforapparentlycarryingonintheusualwaythe
businessofthepartnership
1.
2.
Actsnotintheordinarycourseofbusiness
1.
2.
3.
4.
5.
6.
7.
Actsofstrictdominionorownership:
Assigning partnership property in trust for
creditors;
Disposingofgoodwillofbusiness;
Doinganactwhichwouldmakeitimpossibleto
carryontheordinarybusinessofpartnership;
Confessingajudgment;
Entering into a compromise concerning a
partnershipclaimorliability;
Submitting partnership claim or liability to
arbitration;
Renouncingclaimofpartnership
EFFECT
Withbindingeffectexcept:
Whenthepartnersoactinghasinfactnoauthorityto
actforthepartnershipintheparticularmatter,and
Thepersonwithwhomheisdealinghasknowledgeof
thefactthathehasnosuchauthority
Donotbind partnershipunlessauthorizedbyother
partners(par.2,Art.1818,NCC)
GR:Oneormorebutlessthanallthepartnershaveno
authority
XPNs:
1. authorizedbytheotherpartners;or
2. p
3. artners have abandoned the business (par. 2, Art.
1818,NCC)
Partnershipisnotliable to3rdpersonshavingactualor
presumptiveknowledgeoftherestriction
Actsincontraventionofarestrictiononauthority
Q:Whatistheeffectofconveyanceofarealproperty?
A:
TYPEOFCONVEYANCE
Titleinthepartnershipsname;
Conveyanceinpartnershipname
Titleinthepartnershipsname;
Conveyanceinpartner'sname
Titleinthenameof1ormorepartners,and
therecorddoesnotdisclosetherightofthe
partnership;Conveyanceinnameof
partner/sinwhosenametitlestands
Titleinnameof1ormoreorallpartnersor
3rdpersonintrustforpartnership;
Conveyanceexecutedinpartnershipname
orinnameofpartners
Titleinthenamesofallthepartners;
Conveyanceexecutedbyallthepartners
EFFECT
Conveyancepassestitlebutpartnershipcanrecoverunless:
1.
a. Conveyancewasdoneintheusualwayofbusiness,and
b. The partner so acting has the authority to act for the
partnership;or
2. The property which has been conveyed by the grantee or a
person claiming through such grantee to a holder for value
without knowledge that the partner, in making the
conveyance,hasexceededhisauthority
Conveyancedoesnotpasstitlebutonlyequitableinterest,
provided:
1. Conveyancewasdoneintheusualwayofbusiness,or
2. The partner so acting has the authority to act for the
partnership
Conveyancepassestitlebutthepartnershipmayrecoversuch
propertyifthepartnersactdoesnotbindthepartnership:
1. The partner so acting has no authority to act for the
partnership,and
2. The person with whom he is dealing has knowledge of the
fact unless the purchaser of his assignee, is a holder for
value,withoutknowledge
1.
2.
Conveyancewillonlypassequitableinterest,provided:
Theactisonewithintheauthorityofthepartner,and
Conveyancewasdoneintheusualwayofthebusiness
Conveyancewillpassalltherightsinsuchproperty
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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II.RIGHTSANDOBLIGATIONSOFPARTNERSHIP
Q:Whataretheresponsibilitiesofapartnership
topartners?
A:
1. Refund the amounts disbursed by
partnerinbehalfofthepartnershipplus
corresponding interest from the time
the expenses are made (e.g. loans and
advances made by a partner to the
partnership aside from capital
contribution)
2. Answer for obligations a partner may
have contracted in good faith in the
interestofthepartnershipbusiness
3. Answer for risks in consequence of its
management(Art.1796)
III.RIGHTSANDOBLIGATIONSOFPARTNERS
AMONGTHEMSELVES
A:
1. Contributionofproperty(Art.1786)
2. Contribution of money and money
convertedtopersonaluse(Art.1788)
3. Prohibition in engaging in business for
himself(Art.1789)
4. Contributeadditionalcapital(Art.1791)
5. Managing partner who collects debt
(Art.1792)
6. Partner who receives share of
partnershipcredit(Art.1793)
7. Damagestopartnership(Art.1794)
8. Renderinformation(Art.1806)
9. Accountableasfiduciary(Art.1807)
CONTRIBUTIONOFPROPERTY
A:ToCAFPI
1. Contribute at the beginning of the
partnership, or at the stipulated time,
the money, property or industry which
hemayhavepromisedtocontribute
3. AnswertothepartnershipfortheFruits
of the property the contribution of
which he delayed, from the date they
344
4.
5.
shouldhavebeencontributeduptothe
timeofactualdelivery
A:
KINDOFPROPERTY/THING
WHOBEARSTHE
RISK?
Specificanddeterminatethings
whicharenotfungiblewhere
onlytheuseiscontributed
partners
Specificanddeterminatethings
theownershipofwhichis
transferredtothepartnership
Fungiblethings(Consumable)
partnership
Thingscontributedtobesold
Thingsbroughtandappraisedin
theinventory
A:
1. Partners become ipso jure a debtor of
the partnership even in the absence of
anydemand(Art.1786,NCC)
2. Remedy of the other partner is not
rescissionbutspecificperformancewith
damagesfromdefaultingpartner
CONTRIBUTIONOFMONEYANDMONEY
CONVERTEDTOPERSONALUSE
Q:Whataretherulesregardingcontributionof
moneytothepartnership?
A:CRIP
1. To Contribute on the date fixed the
amount the partner has undertaken to
contributetothepartnership
2. To Reimburse any amount the partner
may have taken from the partnership
coffersandconvertedtohisownuse
3. To Indemnify the partnership for the
damages caused to it by delay in the
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
4.
CONTRIBUTEADDITIONALCAPITAL
Q:Whataretherulesregardingobligationsto
contributetopartnershipcapital?
A:
1. Partners must contribute equal shares
to the capital of the partnership unless
thereisstipulationtocontrary
2. Capitalist partners must contribute
additional capital in case of imminent
loss to the business of the partnership
when there is no stipulation to the
contrary; Refusal to do so shall create
anobligationontherefusingpartnerto
sellhisinteresttotheotherpartners
A:
1. Imminent loss of the business of the
partnership
2. Majorityofthecapitalistpartnersareof
the opinion that an additional
contribution to the common fund
wouldsavethebusiness
3. Capitalistpartnerrefusesdeliberatelyto
contribute (not due to financial
inability)
4. Thereisnoagreementtothecontrary
MANAGINGPARTNERWHOCOLLECTSDEBT
A:
1. Apply sum collected to 2 credits in
proportiontotheiramounts
2. If he received it for the account of
partnership, the whole sum shall be
appliedtopartnershipcredit
Note:Requisites:
1. Atleast2debts,onewherethecollecting
partner is creditor and the other, where
thepartnershipisthecreditor
2. Bothdebtsaredemandable
3.
PARTNERWHORECEIVESSHAREOF
PARTNERSHIPCREDIT
Q:Whatistheobligationofapartnerwho
receivesshareofpartnershipcredit?
A:Tobringtothepartnershipcapitalwhathehas
received even though he may have given receipt
forhisshareonly.
Note:Requisites:
1. Apartnerhasreceivedinwholeorinpart,
hisshareofthepartnershipcredit
2. Other partners have not collected their
shares
3. Partnershipdebtorhasbecomeinsolvent
Q:Mayapersonwhohasnotdirectlytransacted
in behalf of an unincorporated association be
held liable for a contract entered into by such
association?
A:Yes.Theliabilityforacontractenteredintoon
behalf of an unincorporated association or
ostensible corporation may lie in a person who
may not have directly transacted on its behalf,
butreapedbenefitsfromthatcontract.(LimTong
Limv.PhilippineFishingGearIndustriesInc.,G.R.
No.136448,Nov.3,1999)
PROHIBITIONINENGAGINGINBUSINESS
A:
INDUSTRIALPARTNER
CAPITALISTPARTNER
Prohibition
Cannotengagein
Cannotengagein
business(withsame
businessforhimself
kindofbusinesswith
unlessthepartnership
thepartnership)forhis
expresslypermitshimto
ownaccount,unless
doso
thereisastipulationto
thecontrary
Remedy
Capitalistpartnersmay:
Capitalist partner, who
1. Exclude him from
violatedshall:
thefirm
1. Bring
to
the
2. Avail themselves of
common fund any
the benefits which
profits accruing to
he
may
have
him from said
obtained
transaction;and
3. Damages, in either
2. Bears all losses
case (Art. 1789,
(Art.1808,NCC)
NCC)
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Q:JoeandRudyformedapartnershiptooperate
a car repair shop in Quezon City. Joe provided
thecapitalwhileRudycontributedhislaborand
industry. Onone side of their shop, Joe opened
and operated a coffee shop, while on the other
side, Rudy put up a car accessories store. May
theyengageinsuchseparatebusinesses?Why?
DAMAGESTOPARTNERSHIP
Q:Whatistherulewithregardtotheobligation
of a partner as to damages suffered by the
partnershipthroughhisfault?
A:
GR: Every partner is responsible to the
partnership for damages suffered by it
throughhisownfault.Thesedamagescannot
be offset by the profits or benefits which he
may have earned for the partnership by his
industry.
XPN:Ifunusualprofitsarerealizedthrough
extraordinaryeffortsoftheguiltypartner,the
courtsmayequitablymitigateorlessenhis
liabilityfordamages.(Art.1794,NCC)
DUTYTORENDERINFORMATION
Q:Whatisthedutyofthepartnerswithrespect
toinformationaffectingthepartnership?
ACCOUNTABLEASFIDUCIARY
A:Everypartnermustaccounttothepartnership
for any benefit, and hold as trustee for it any
profitsderivedbyhimwithouttheconsentofthe
346
RIGHTSOFGENERALPARTNERS
Q:Whatarethepropertyrightsofapartner?
A:SIM
1. RightinSpecificpartnershipproperty
2. Interestinthepartnership(shareinthe
profitsandsurplus)
3. RighttoparticipateintheManagement
A:
1. Equal right to possession for
partnershippurposes
2. Right is not assignable, except in
connectionwithassignmentofrightsof
allpartnersinthesameproperty
3. Right is limited to his share of what
remains after partnership debts have
beenpaid
4. Right is not subject to attachment or
executionexceptonaclaimagainstthe
partnership
5. Rightisnotsubjecttolegalsupport
A:
1. Rightswithheldfromtheassignee:
Such assignment does not grant the
assigneetherightto:
a. Tointerfereinthemanagement
b. To require any information or
account
c. Toinspectpartnershipbooks
2. Rightsofassigneeonpartnersinterest:
a. To receive in accordance with his
contracttheprofitsaccruingtothe
assigningpartner
b. To avail himself of the usual
remedies provided by law in the
eventoffraudinthemanagement
c. Toreceivetheassignorsinterestin
caseofdissolution
d. To require an account of
partnershipaffairs,butonlyincase
the partnership is dissolved, and
suchaccountshallcovertheperiod
from the date only of the last
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
IV.OBLIGATIONSOFPARTNERSHIP/PARTNERS
TOTHIRDPERSONS
Q:Whataretheeffectsofconveyanceofa
partnerofhisinterestinthepartnership?
A:
1. Conveyance of his whole interest
partnership may either remain or be
dissolved
2. Assigneedoesnotnecessarilybecomea
partner;hecannot:
a. interfere in the management or
administration;or
b. demand information, accounting
and inspection of the partnership
books.
Note:Buttheassigneehasthefollowingrights:
1. receive in accordance with his contract
the profits which the assigning partner
wouldotherwisebeentitled
2. avail himself of the usual remedies
provided by law in event of fraud in
management
3. receive assignors interest in case of
dissolution
4. requireandaccountofpartnershipaffairs
but only in case the partnership is
dissolved, and such account shall cover
the period from the date only of the last
accountagreedtobyalltheparties
CRIMINALLIABILITYFORMISAPPROPRIATION:
ESTAFA
A:
1. Everypartnershipshalloperateundera
firm name. Persons who include their
names in the partnership name even if
theyarenotmembersshallbeliableas
apartner
2. All partners shall be liable for
contractual obligations of the
partnershipwiththeirproperty,afterall
partnership
assets
have
been
exhausted:
a. Prorata
b. Subsidiary
3. Admission or representation made by
any partner concerning partnership
affairswithinthescopeofhisauthority
isevidenceagainstthepartnership
4. Noticetopartnerofanymatterrelating
topartnershipaffairsoperatesasnotice
topartnershipexceptincaseoffraud:
a. Knowledgeofpartneractinginthe
particular matter acquired while a
partner
b. Knowledgeofthepartneractingin
the particular matter then present
tohismind
c. Knowledge of any other partner
who reasonably could and should
have communicated it to the
actingpartner
5. Partners and the partnership are
rd
solidarily liable to 3 persons for the
partner'stortorbreachoftrust
6. Liability of incoming partner is limited
to:
a. His share in the partnership
propertyforexistingobligations
b. His separate property for
subsequentobligations
7. Creditorsofpartnershiparepreferredin
partnership property & may attach
partner'sshareinpartnershipassets
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V.DISSOLUTION
Dissolution
Achangeinthe
relationofthe
partners
causedbyany
partnerceasing
tobe
associatedin
carryingonthe
business.
Windingup
Termination
Settlingthe
partnership
businessor
affairsafter
dissolution
Pointintime
whenall
partnership
affairsare
woundupor
completed;the
endofthe
partnershiplife
Q:Whatarethecausesofdissolution?
A:
1. Withoutviolatingtheagreement:
a. Terminationofthedefinitetermor
specificundertaking
b. Expresswillofanypartneringood
faith, when there is no definite
termandnospecifiedundertaking
c. Express will of all partners (except
those who have assigned their
interests or suffered them to be
charged for their separate debts)
either before or after the
termination of any specified term
orparticularundertaking
d. Expulsion of any partner in good
faithofamember
2. Violatingtheagreement
3. Unlawfulnessofthebusiness
4. Loss
a. Specific thing promised as
contribution is lost or perished
beforedelivery
b. Lossofaspecificthingcontributed
beforeorafterdelivery,ifonlythe
useofsuchiscontributed
5.
6.
7.
8.
348
Deathofanyofthepartners
Insolvency of any partner or of the
partnership
Civilinterdictionofanypartner
BydecreeofcourtunderArt.1831,NCC
a. apartnerhasbeendeclaredinsane
orofunsoundmind
b. a partner becomes in any other
way incapable of performing his
partofthepartnershipcontract
c.
d.
e.
f.
Q:Whataretheeffectsofdissolution?
A:
1. Partnershipisnotterminated
2. Partnership continues for a limited
purpose
3. Transaction of new business is
prohibited (De Leon, Comments and
Cases on Partnership, Agency, and
Trust,p.229,2005ed)
A:
GR: The partnership ceases to be a going
concern
XPN:Thepartnerspowerofrepresentationis
confinedonlytoactsincidenttowindingupor
completing transactions begun but not then
finished.(Art.1832,NCC)
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
2.
Q:Thearticlesofcopartnershipprovidethatin
case of death of one partner, the partnership
shallnotbedissolvedbutshallbecontinuedby
thedeceasedpartnersheirs.WhenH,apartner,
died,hiswife,W,tookoverthemanagementof
some of the real properties with permission of
the surviving partner, X, but her name was not
included in the partnership name. She
eventuallysoldtheserealpropertiesafterafew
years. X now claims that W did not have the
authoritytomanageandsellthosepropertiesas
shewasnotapartner.Isthesalevalid?
A:Yes.Thewidowwasnotamereagent,because
she had become a partner upon her husband's
death,asexpresslyprovidedbythearticlesofco
partnership, and by authorizing the widow to
managepartnershippropertyXrecognizedheras
a general partner with authority to administer
andalienatepartnershipproperty.Itisimmaterial
thatW'snamewasnotincludedinthefirmname,
sincenoconversionofstatusisinvolved,andthe
articlesofcopartnershipexpresslycontemplated
the admission of the partner's heirs into the
partnership.(Goquiolayv.Sycip,G.R.No.L11840,
Dec.16,1963)
A:
GR: Each partner is liable to his copartners
for his share, of any liability created by any
partner for the partnership, as if the
partnershiphadnotbeendissolved.
XPNs:Partnersshallnotbeliablewhen:
1. the dissolution, being by act of any
partner, the partner acting for the
partnership had knowledge of the
dissolution;or
2. the dissolution, being by the death or
insolvency of a partner, the partner
acting for the partnership had
knowledge or notice of the death or
insolvency(Art.1833,NCC)
A:
GR: Yes. A partner continues to bind
partnership even after dissolution in the
followingcases:
1. Transactions to wind up partnership
affairs/complete
transactions
unfinishedatdissolution;
2. Transactions which would bind
partnership if not dissolved dissolution
hadnottakenplace,providedtheother
party/obligee:
a.
i.
ii.
b.
i.
ii.
iii.
Didnotextendcredittopartnership;
Had known partnership prior to
dissolution;and
Had no knowledge/notice of
dissolution/fact of dissolution not
advertisedinanewspaperofgeneral
circulation in the place where
partnershipisregularlycarriedon.
XPNtoXPN:Windingupofpartnershipaffairs
1. Partnerhasbecomeinsolvent
2. Actisnotappropriateforwindingupor
forcompletingunfinishedtransactions
3. Completely new transactions which
would bind the partnership if
dissolution had not taken place with
thirdpersonsinbadfaith.
4. Partner is unauthorized to wind up
partnership
affairs,
except
by
transactionwithonewho:
a.
i.
ii.
b.
i.
ii.
iii.
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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A:
GR:No.
XPN:Saidliabilityisdischargedwhenthereis
anagreementbetween:
1. Partnerhimself;
2. Person/scontinuingthebusiness;and
3. Partnershipcreditors
WINDINGUP
Note:Examplesofwindingup:
1. Payingpreviousobligations
2. Collectingassetspreviouslydemandable
350
Annotated,Volume5,p.485,19696thed)
Q:Whoarethepersonsauthorizedtowindup?
A:
1. Partnersdesignatedbytheagreement
2. Intheabsenceofsuch,allpartnerswho
have not wrongfully dissolved the
partnership
3. Legal representative of last surviving
partnerwhoisnotinsolvent
Q:Whatarepartnershipassets?
A:
1. Partnershipproperty
2. Contributionsofthepartnersnecessary
for the payment of all liabilities [Art.
1839(2),NCC]
Q:Whatistheorderofpaymentinwindingup?
A:
1. Those owing to creditors other than
partners
2. Thoseowingtopartnersotherthanfor
capitalorprofits
3. Those owing to partners in respect of
capital
4. Those owing to partners in respect to
profits[Art.1839(2),NCC]
Q:Whatisthedoctrineofmarshallingofassets?
A:
1. Partnership creditors have preference
inpartnershipassets
2. Separate or individual creditors have
preference in separate or individual
properties
3. Anything left from either goes to the
other.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
Q: What are the rights of a partner where
dissolution is in contravention of the
agreement?
Q:Whataretherightsofinjuredpartnerwhere
partnershipcontractisrescinded?
A:
1. Right of a lien on, or retention of, the
surplus of partnership property after
satisfying partnership liabilities for any
sum of money paid or contributed by
him;
2. Right of subrogation in place of
partnership creditors after payment of
partnershipliabilities;and
3.
A:
1. Assetsofthepartnershipinclude:
a. Partnership property (including
goodwill)
b. Contributionsofthepartners
2. Orderofapplicationoftheassets:
a. First, those owing to partnership
creditors
b. Second, those owing to partners
other than for capital and profits
suchasloansgivenbythepartners
oradvancesforbusinessexpenses
c. Third,thoseowingforthereturnof
the capital contributed by the
partners
d. Fourth, the share of the profits, if
any,duetoeachpartner
Q:Whatispartnerslien?
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Q:Canapartnerdemandforhisshareduringthe
existenceofapartnership?
Q:Whataretheeffectswhenthebusinessofa
dissolvedpartnershipiscontinued?
A:
1. Creditors of old partnership are also
creditors of the new partnership who
continues the business of the old one
without liquidation of the partnership
affairs.
2. Creditors have an equitable lien on the
consideration
paid
to
the
retiring/deceased partner by the
purchaser when retiring/deceased
partner sold his interest without final
settlementwithcreditors.
3. Rights of retiring/estate of deceased
partner:
a. To have the value of his interest
ascertained as of the date of
dissolution;and
b. Toreceiveasordinarycreditorthe
value of his share in the dissolved
partnershipwithinterestorprofits
attributable to use of his right, at
hisoption.
Prescriptionbeginstorunonlyuponthedissolution
of the partnership, when the final accounting is
done.
352
Q:Whoarethepersonsrequiredtorenderan
account?
A:
1. Windinguppartner;
2. Survivingpartner;and
3. Person or partnership continuing the
business
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
Does Philip have any right to petition for the
dissolution of the partnership before the
expirationofitsspecifiedterm?Explain.
VI.LIMITEDPARTNERSHIP
A.DEFINITION
Q:Whatislimitedpartnership?
A:Oneformedbytwoormorepersonshavingas
members one or more general partners and one
or more limited partners, the latter not being
personallyliableforpartnershipdebts(Art.1843)
Q:Whatarethecharacteristicsoflimited
partnership?
A:
1. It is formed by compliance with the
statutoryrequirements
2. One or more general partners control
thebusinessandarepersonallyliableto
creditors
3. One or more limited partners
contribute to the capital and share in
theprofitsbutdonotparticipateinthe
management of the business and are
not personally liable for partnership
obligations beyond their capital
contributions
4. The limited partners may ask for the
return of their capital contributions
underconditionsprescribedbylaw
5. Partnership debts are paid out of
common fund and the individual
propertiesofgeneralpartners
B.HOWLIMITEDPARTNERSHIPIS
FORMED/AMENDED
A:
1. Certificate of articles of limited
partnership which states the matters
enumeratedinArt.1844,NCC,mustbe
signedandsworn;and
2. Certificate must be filed for record in
theofficeoftheSEC.
Q:Doesalimitedpartnershiphaveapersonality
separateanddistinctfromthatofthepartners?
Whataretheconsequencesofsuch?
A:
1. Whenthepartnershipisdissolved
2. Whenallthelimitedpartnersceasedto
besuch
A:
1. Itmustfallunderthefollowingchanges
andconditions:
a. There is a change in the name of
the partnership or in the amount
orcharacterofthecontributionof
anylimitedpartner
b. Apersonissubstitutedasalimited
partner
c. An additional limited partner is
admitted
d. A person is admitted as a general
partner
e. A general partner retires, dies,
becomes insolvent or insane, or is
sentenced to civil interdiction and
the business is continued under
Article1860
f. There is a change in the character
ofthebusinessofthepartnership
g. There is a false or erroneous
statementinthecertificate
h. There is a change in the time as
stated in the certificate for the
dissolution of the partnership or
forthereturnofacontribution
i.
A time is fixed for the dissolution
ofthepartnership,orthereturnof
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
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j.
2.
3.
MustberecordedintheSEC
LIMITEDPARTNER
Q:Whataretheliabilitiesofalimitedpartner?
A:
ASCREDITOR
Deficiencyin
contribution
Unpaid
contribution
ASTRUSTEE
Specificpropertystatedas
contributedbutnotyet
contributed/wrongfullyreturned
Money/otherproperty
wrongfullypaid/conveyedtohim
onaccountofhiscontribution
A:
1. Allowed
a. Grantingloanstopartnership
b. Transacting
business
with
partnership
c. Receiving pro rata share of
partnership assets with general
creditorsifheisnotalsoageneral
partner
2.
Prohibited
a. Receiving/holding
partnership
propertyascollateralsecurity
b. Receiving
any
payment,
conveyance,releasefromliabilityif
rd
itwillprejudicerightof3 persons
Note:Violationoftheprohibitionwillgiverisetothe
presumption that it has been made to defraud
partnershipcreditors.
354
Q:Whendoesageneralpartnerneedconsentor
ratificationofallthelimitedpartners?
A:Whenhe:
1. does any act in contravention of the
certificate;
2. does any act which would make it
impossible to carry on the ordinary
businessofthepartnership;
3. confesses
judgment
against
partnership;
4. possesses partnership property /
assigns rights in specific partnership
property other than for partnership
purposes;
5. admitspersonasgeneralpartner;
6. admits person as limited partner
unlessauthorizedincertificate;or
7. continues business with partnership
property on death, retirement, civil
interdiction, insanity or insolvency of
generalpartnerunlessauthorizedinthe
certificate.
PARTNERSHIPTORT
Q:Whenisthereapartnershiptort?
A:Where:
1. by any wrongful act or omission of any
partner,actingintheordinarycourseof
business of the partnership or with
authority of his copartners, loss or
injuryiscausedtoanyperson,notbeing
apartnerinthepartnership;
2. one partner, acting within the scope of
his apparent authority, receives money
or property from a third person, and
misappliesit;or
3. the partnership, in the course of its
business, receives money or property,
anditismisappliedbyanypartnerwhile
itisinthecustodyofthepartnership.
C.RIGHTSANDOBLIGATIONSOFALIMITED
PARTNER
A:To:
1. havepartnershipbookskeptatprincipal
placeofbusiness;
2. inspect/copy books at reasonable
hours;
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
PARTNERSHIP
3.
4.
5.
6.
7.
Q:Whoisasubstitutedlimitedpartner?
A:Apersonadmittedtoalltherightsofalimited
partner who has died or assigned his interest in
thepartnership
A:
GR: He has all the rights and powers and is
subjecttoalltherestrictionsandliabilitiesof
hisassignor.
Q:Whataretherequirementsfortheadmission
ofasubstitutedlimitedpartner?
A:
1. All the members must consent to the
assigneebecomingasubstitutedlimited
partner or the limited partner, being
empoweredbythecertificatemustgive
the assignee the right to become a
limitedpartner;
2. The certificate must be amended in
accordancewithArt.1865,NCC;and
3. The certificate as amended must be
registeredintheSEC.
A:
1. All liabilities of the partnership have
been paid or if they have not yet been
paid, the assets of the partnership are
sufficienttopaysuchliabilities;
2. The consent of all the members
(generalandlimitedpartners)hasbeen
obtained except when the return may
berightfullydemanded;and
3. The certificate of limited partnership is
cancelledoramended
Q:Whataretheliabilitiesofalimitedpartner?
1. Tothepartnership
A:Sincelimitedpartnersarenotprincipalsinthe
transaction of a partnership, their liability as a
rule,istothepartnership,nottothecreditorsof
the partnership. The general partners cannot,
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3. Toseparatecreditors
A:Thewaiverorcompromise:
1. ismadewiththeconsentofallpartners;
and
2. does not prejudice partnership
creditorswhoextendedcreditorwhose
claims arose before the cancellation or
amendmentofthecertificate.
A:
1. When his demand for the return of his
contributionisdeniedalthoughhehasa
righttosuchreturn;or
2. When his contribution is not paid
although he is entitled to its return
because the other liabilities of the
partnership have not been paid or the
partnership property is insufficient for
theirpayment.
SUMMARYOFRIGHTSANDOBLIGATIONSOFPARTNERS
GENERALPARTNER
LIMITEDPARTNER
Rights
1.
1.
2.
3.
4.
Rightinspecificpartnershipproperty
Interestinthepartnership(shareintheprofitsandsurplus)
Righttoparticipateinthemanagement
Righttoassociateanotherpersonwithhiminhissharewithout
theconsentofotherpartners(subpartnership)
5. Right to inspect and copy partnership books at any reasonable
hour.
6. Right to a formal account as to partnership affairs (even during
existenceofpartnership)
a. if he is wrongfully excluded from partnership business or
possessionofitspropertybyhiscopartners.
b. ifrightexistsunderthetermsofanyagreement.
c. asprovidedinArt.1807,NCC
d. wheneverthecircumstancesrenderitjustandreasonable.
1.
2.
3.
4.
356
Obligations
Obligationsof partnersamongthemselves
Contributionofproperty
Contributionofmoneyandmoneyconvertedtopersonaluse
Prohibitioninengaginginbusinessforhimself
Contributeadditionalcapital
2.
3.
4.
5.
6.
7.
Tothepartnership
Sincelimitedpartnersarenotprincipalsin
thetransactionofapartnership,their
liabilityasarule,istothepartnership,not
tothecreditorsofthepartnership.The
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PARTNERSHIP
5.
6.
7.
8.
9.
Managingpartnerwhocollectsdebt
Partnerwhoreceivesshareofpartnershipcredit
Damagestopartnership
Renderinformation
Accountableasfiduciary
Obligationsofpartnersto3rd persons
generalpartnerscannot,howeverwaive
anyliabilityofthelimitedpartnerstothe
prejudiceofsuchcreditors.
1.
5.
6.
Tothepartnershipcreditorsandother
partners
Toseparatecreditors
Otherobligations
Asinageneralpartnership,thecreditorof
alimitedpartnermay,inadditiontoother
Duty to render on demand true and full information affecting
remediesallowedunderexistinglaws,
partnership to any partner or legal representative of any
applytothepropercourtforacharging
deceasedpartnerorofanypartnerunderlegaldisability.
ordersubjectingtheinterestinthe
Dutytoaccounttothepartnershipasfiduciary.
partnershipofthedebtorpartnerforthe
paymentofhisobligation.
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AGENCY
Q:Whatiscontractofagency?
A:Bycontractofagencyapersonbindshimselfto
render some service or to do something in
representation or on behalf of another, with the
consentorauthorityofthelatter.(Art.1868NCC)
A:BUNCPP
1. Bilateral If it is for compensation
becauseitgivesrisetoreciprocalrights
andobligations
2. Unilateral If gratuitous, because it
creates obligations for only one of the
parties
3. Nominate
4. Consensual It is perfected by mere
consent
5. Principal
6. Preparatory It is entered into as a
meanstoanend
Q:Whataretheclassificationsofagency?
A:
1. Astomannerofcreation
a. Express agent has been actually
authorized by the principal, either
orallyorinwriting
b. Implied agency is implied from
the acts of the principal, from his
silence or lack of action or his
failure to repudiate the agency,
knowing that another person is
acting on his behalf without
authority
2. Astocharacter
a. Gratuitous agent receives no
compensationforhisservices
b. Onerous agent receives
compensationforhisservices
3. Astoextentofbusinessoftheprincipal
a. Generalagencycomprisesallthe
businessoftheprincipal
b. Special agency comprises one or
morespecifictransactions
4. Astoauthorityconferred
a. Couchedingeneraltermsagency
is created in general terms and is
deemed to comprise only acts in
358
b.
A:CORS
1. Consent (express or implied) of the
partiestoestablishtherelationship;
2. TheObjectistheexecutionofajuridical
actinrelationtothirdpersons;
3. TheagentactsasaRepresentativeand
notforhimself;and
4. The agent acts within the Scope of his
authority.
A:
GR: There are no formal requirements
governingtheappointmentofanagent.
XPN:Whenthelawrequiresaspecificform.
i.e.whensaleoflandoranyinteresttherein
isthroughanagent,theauthorityofthelatter
must be in writing; otherwise, the sale shall
bevoid(Art.1874,NCC)
Q:Whoarethepartiestoacontractofagency?
Distinguish.
A:
1. Principal One whom the agent
represents and from whom he derives
authority; he is the one primarily
concernedinthecontract.
2. Agent One who represents the
principalinatransactionorbusiness.
Note:Fromthetimetheagentactsortransactsthe
business for which he has been employed in
representationofanother,athirdpartyisaddedto
the agency relationship the party with whom the
business is transacted. (De Leon, Comments and
Cases on Partnership, Agency, and Trust, p. 352,
2005ed)
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AGENCY
Q:Whatarethequalificationsofaprincipal?
A:
1. Naturalorjuridicalperson
2. Hemusthavecapacitytoact
Note:Ifapersoniscapacitatedtoactforhimselfor
hisownright,hecanactthroughanagent.
Insofarasthirdpersonsareconcerned,itisenough
that the principal is capacitated. But insofar as his
obligationstohisprincipalareconcerned,theagent
mustbeabletobindhimself.
Q:Whatisthetermjointprincipals?
Q:Whataretherequisitesforsolidaryliabilityof
jointprincipals?
A:
1. Therearetwoormoreprincipals;
2. They have all concurred in the
appointmentofthesameagent;and
3. Agent is appointed for a common
transactionorundertaking.(DeLeon,p.
604,2005ed)
Q:Whatarethekindsofagents?
A:
1. Universal agent one employed to do
all acts which the principal may
personally do, and which he can
lawfully delegate to another the power
ofdoing
2. General agent one employed to
transactallbusinessoftheprincipal,or
allthebusinessofaparticularkindorin
aparticularplace,doallactsconnected
with a particular trade, business or
employment
3. Special or particular agent one
authorized to do act in one or more
specific transactions or to do one or
more specific acts or to act upon a
particularoccasion
Q:Canagencybecreatedbynecessity?
A:No.Whatiscreatedisadditionalauthorityin
anagentappointedandauthorizedbeforethe
emergencyarose.
Q:Whataretherequisitesfortheexistenceof
agencybynecessity?
A:
1. Realexistenceofemergency
2. Inability of the agent to communicate
withtheprincipal
3. Exercise of additional authority is for
theprincipalsprotection
4. Adoption of fairly reasonable means,
premisesdulyconsidered
Q:Whatistheruleregardingdoubleagency?
A:
GR:Itisdisapprovedbylawforbeingagainst
publicpolicyandsoundmorality.
XPN:Wheretheagentactedwithfull
knowledgeandconsentoftheprincipals.
A:ThecontractbetweenAandBisasalenotan
agency to sell because the price is payable by B
upon60daysfromdeliveryevenifBisunableto
resell it. If B were an agent, he is not bound to
pay the price if he is unable to resell it. As a
buyer,ownershippassedtoBupondeliveryand,
under Art. 1504, NCC, the thing perishes for the
owner. Hence, B must still pay the price. (1999
BarQuestion)
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II.POWERS
Q:Whatarethekindsofagencyastoextentof
powersconferred?
A:Anagencymaybecouchedingeneraltermsor
couchedinspecificterms.
Q:Whatisanagencycouchedingeneralterms?
Q:Whenisanexpresspowernecessary?
Q:Whatismeantbyactsofadministration?
Q:Whenispaymentanactofadministration?
A:Whenpaymentismadeintheordinarycourse
ofmanagement.
360
A.TOBINDPRINCIPAL
A:
1. When the agent acts as such without
expressly binding himself or does not
exceed the limits of his authority. (Art.
1897)
2. If principal ratifies the act of the agent
which exceeded his authority. (Art.
1898)
3. Circumstances where the principal
himself was, or ought to have been
aware.(Art.1899)
4. If such act is within the terms of the
powerofattorney,aswritten.(Art.1900
&1902)
5. Principalhasratified,orhassignifiedhis
willingnesstoratifytheagentsact.(Art
1901)
A:
GR: Knowledge of agent is knowledge of
principal.
XPNs:
1. Agents interests are adverse to those
oftheprincipal;
2. Agents duty is not to disclose the
information (confidential information);
or
3. Where the person claiming the benefit
of the rule colludes with the agent to
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AGENCY
defraud the principal. (De Leon,
Comments and Cases on Partnership,
Agency,andTrust,p.367,2005ed)
Q:Whataretheeffectsoftheactsofanagent?
A:
1. Withauthority
a. Inprincipalsnamevalid
b. In his own name not binding on
the principal; agent and stranger
are the only parties, except
regarding things belonging to the
principal or when the principal
ratifies the contract or derives
benefittherefrom
2. Withoutauthority
a. Inprincipalsnameunauthorized
and unenforceable but may be
ratified, in which case, may be
validated retroactively from the
beginning
b. In his own name valid on the
agent,butnotontheprincipal
A:
AUTHORITY
Sumtotalofthepowers
committedtotheagent
bytheprincipal
Relatestothe
subject/businesswith
whichtheagentis
empoweredtodealor
act
Limitationsofauthority
areoperativeasagainst
thosewhohave/charged
withknowledgeofthem
Contemplatedtobe
madeknowntothird
personsdealingwiththe
agent
INSTRUCTIONS
Contemplatesonlya
privateruleofguidance
totheagent;
independentand
distinctincharacter
Referstothemanneror
modeofagentsaction
Withoutsignificanceas
againstthosewith
neitherknowledgenor
noticeofthem
Notexpectedtobe
madeknowntothose
withwhomtheagent
deals
Q:Whenistheprincipalboundbytheactualor
apparentauthorityoftheagent?
A:Theprincipalisboundbytheactsoftheagent
on his behalf, whether or not the third person
dealingwiththeagentbelievesthattheagenthas
actual authority, so long as the agent has actual
authority,expressorimplied.
Q:Whatisdoctrineofapparentauthority?
A:
ApparentAuthority
Thatwhichisthough
notactuallygranted,
theprincipal
knowinglypermitsthe
agenttoexerciseor
holdshimoutas
possessing
Foundedinconscious
permissionofacts
beyondthepowers
granted
AuthoritybyEstoppel
Ariseswhentheprincipal,
byhisculpablenegligence,
permitshisagentto
exercisepowersnot
grantedtohim,even
thoughtheprincipalmay
havenonoticeor
knowledgeoftheagents
conduct
Foundedontheprincipals
negligenceinfailing
properlytosupervisethe
affairsoftheagent
A:No.Agentsarenotapartywithrespecttothat
contractbetweenhisprincipalandthirdpersons.
As agents, they only render some service or do
somethinginrepresentationoronbehalfoftheir
principals.Therenderingofsuchservicedidnot
make them parties to the contracts of sale
executedinbehalfofthelatter.
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SUMMARYOFRULES;ACTSOFANAGENT
1.
2.
Inbehalfoftheprincipal,withinthescopeofauthority
Bindsprincipal;
Agentnotpersonallyliable
Withoutorbeyondscopeofauthority
Contractisunenforceableasagainsttheprincipalbutbindstheagenttothethirdperson
Bindingontheprincipalwhen:
1. Ratifiedor
2. Theprincipalallowedtheagenttoactasthoughhehadfullpowers
Withinthescopeofauthoritybutintheagentsname
1. Notbindingontheprincipal;
2. Principalhasnocauseofactionagainstthe3rdpartiesandviceversa
Note:Whenthetransactioninvolvesthingsbelongingtotheprincipal:
Remedyoftheprincipaldamagesforagentsfailuretocomplywiththeagency
Withinthescopeofthewrittenpowerofattorneybutagenthasactuallyexceededhisauthorityaccording
toanunderstandingbetweenhimandtheprincipal
1. Insofaras3rdpersonsareconcerned(notrequiredtoinquirefurtherthanthetermsofthewritten
power,agentactedwithinscopeofhisauthority;
2. Principalestopped
Withimpropermotives
Motiveisimmaterial;aslongaswithinthescopeofauthority,valid
Withmisrepresentationsbytheagent
1. Authorizedprincipalstillliable
2. Beyondthescopeoftheagentsauthority
GR:Principalnotliable
XPN:Principaltakesadvantageofacontractorreceivesbenefitsmadeunderfalserepresentationofhis
agent
Mismanagementofthebusinessbytheagent
1. Principalstillresponsiblefortheactscontractedbytheagentwithrespectto3rd persons;
2. Principal,however,mayseekrecoursefromtheagent
Tortcommittedbytheagent
Principalcivillyliablesolongasthetortiscommittedbytheagentwhileperforminghisdutiesinfurtherance
oftheprincipalsbusiness
Agentingoodfaithbutprejudices3rd parties
Principalisliablefordamages
B.EXCEPTION
Q:Whenistheactofanagentnotbindingtothe
principal?
A:Ifanagentactsinhisownname.Insuchcase,
theagentistheonedirectlyboundinfavorofthe
person with whom he has contracted, as if the
transactionwerehisown.(Art.1883,NCC)
362
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AGENCY
III.EXPRESSVS.IMPLIEDAGENCY
Q:Distinguishexpressandimpliedagency.
A:
EXPRESSAGENCY
IMPLIEDAGENCY
Astodefinition
Onewheretheagent
hasbeenactually
Onewhichisimpliedfrom
authorizedbythe
theactsoftheprincipal,
principal,eitherorally
orinwriting
Astoauthority
Whenitisincidentaltothe
transactionorreasonably
necessarytoaccomplishthe
purposeoftheagency,and
Whenitisdirectly
therefore,theprincipalis
conferredbywords
deemedtohaveactually
intendedtheagentto
possess
Q:Distinguishagencyfromguardianship.
A:
AGENCY
Agentrepresentsa
capacitatedperson
Agentderives
authorityfromthe
principal
Agentisappointedby
theprincipalandcan
beremovedbythe
latter
Agentissubjectto
directionsofthe
principal
Agentcanmakethe
principalpersonally
liable
Q:
Distinguish
administration.
A:
AGENCY
Agentisappointed
bytheprincipal
Representsthe
principal
Agentdoesnotfile
abond
Agentiscontrolled
bytheprincipal
thrutheagreement
GUARDIANSHIP
Guardianrepresentsan
incapacitatedperson
Guardianderivesauthority
fromthecourt
Guardianisappointedby
thecourt,andstandsin
locoparentis
Guardianisnot subjectto
thedirectionsoftheward,
butmustactforthewards
benefit
Guardianhasnopowerto
imposepersonalliability
ontheward
agency
from
judicial
JUDICIALADMINISTRATION
JudicialAdministratoris
appointedbythecourt
Representsnotonlythe
courtbutalsotheheirsand
creditorsoftheestate
JudicialAdministratorfilesa
bond
Hisactsaresubjectto
specificordersfromthe
court
Q:Distinguishagencyfromleaseofservices.
A:
AGENCY
LEASEOFSERVICES
Agentrepresentsthe
Workerorlessorof
principal
servicesdoesnot
representhisemployer
Relationshipcanbe
Generally,relationship
terminatedatthewill
canbeterminatedonly
ofeitherprincipalor
atthewillofboth
agent
Agentexercises
Employeehasministerial
discretionarypowers
functions
Q:Distinguishagencyfromtrust.
A:
AGENCY
TRUST
Agentusuallyholds
Trusteemayholdlegal
notitleatall
titletotheproperty
Agentusuallyactsin
Trusteemayactinhis
thenameofthe
ownname
principal
Trustusuallyendsbythe
Agencyusuallymay
accomplishmentofthe
beterminatedor
purposesforwhichitwas
revokedanytime
formed
Agencymaynotbe
Trustinvolvescontrol
connectedatallwith
overproperty
property
Trusteedoesnot
Agenthasauthority
necessarilyoreven
tomakecontracts
possesssuchauthorityto
whichwillbebinding
bindthetrustororthe
onhisprincipal
cestuiquetrust
Agencyisreallya
Trustmaybetheresultof
contractualrelation
acontract,itmayalsobe
createdbylaw
IV.AGENCYBYESTOPPEL
Q:Whenisthereanagencybyestoppel?
Q:Whataretherulesregardingestoppelin
agency?
A:
1. Estoppel of agent One professing to
act as agent for another may be
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2.
Estoppelofprincipal
a. AstoagentOnewhoknowsthat
another is acting as his agent and
fails to repudiate his acts, or
accepts the benefits, will be
estopped to deny the agency as
againsttheother.
b. As to subagent To estop the
principal from denying his liability
to a third person, he must have
known or be charged with
knowledge of the fact of the
transaction and the terms of the
agreementbetweentheagentand
subagent.
c. As to third persons One who
knowsthatanotherisactingashis
agent or permitted another to
appearashisagent,totheinjuryof
third persons who have dealt with
theapparentagentassuchingood
faith and in the exercise of
reasonable prudence, is estopped
todenytheagency.
3.
4.
Q:Distinguishimpliedagencyfromagencyby
estoppel.
A:
IMPLIEDAGENCY
AGENCYBYESTOPPEL
Astoliabilitybetweenprincipalandagent
Ifcausedbytheagent,he
Agentisatrueagent,
isnotconsideredatrue
withrightsandduties
agent,hence,hehasno
ofanagent
rightsassuch
Astoliabilitytothirdpersons
1. If caused by the
principal, he is liable,
1. The principal is
but only if the 3rd
alwaysliable
person acted on the
2. Theagentisnever
misrepresentation;
personallyliable
2. If caused by the agent
alone,onlytheagentis
364
liable
V.GENERALvs.SPECIALAGENCY
Q:Distinguishageneralagentfromaspecial
agent?
A:
GeneralAgent
SpecialAgent
ScopeofAuthority
Specificactsin
pursuanceofparticular
Allactsconnectedwith
instructionsorwith
thebusinessor
restrictionsnecessarily
employmentinwhichhe
impliedfromtheactto
isengaged
bedone
NatureofServiceAuthorized
Involvescontinuityof
Nocontinuityofservice
service
ExtenttowhichtheAgentmayBindthePrincipal
Maybindhisprincipalby
Cannotbindhisprincipal
anactwithinthescope
inamannerbeyondor
ofhisauthorityalthough
outsidethespecificacts
itmaybecontrarytothe
whichheisauthorizedto
lattersspecial
perform
instructions
TerminationofAuthority
Dutyimposeduponthe
Apparentauthoritydoes
thirdpartytoinquire
notterminatebymere
makesterminationofthe
revocationofhis
relationshipeffective
authoritywithoutnotice
uponrevocation
tothethirdparty
ConstructionofPrincipalsInstruction
Strictlyconstruedasthey
Merelyadvisoryin
limittheagents
nature
authority
Q:Whoisafactor/commissionagent?
Q:Whoisabroker?
Q:Whatisfactorage?
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AGENCY
Q:Whatisordinarycommission?
Q:Whatisguarantycommission?
A:Itisthefeewhichisgiveninreturnfortherisk
that the agent has to bear in the collection of
credits.
VI.AGENCYCOUCHEDINGENERALTERMS
Q:Whatisanagencycouchedingeneralterms?
A:Onewhichiscreatedingeneraltermsandis
deemedtocompriseonlyactsofadministration
(Art.1877,NCC).
VII.AGENCYREQUIRINGSPECIALPOWEROF
ATTORNEY
Q:Whatisspecialpowerofattorney(SPA)?
A:No.SPAisnotrequiredtobeinwritingand
neednotbenotarizedinordertobevalid.(De
Leon,CommentsandCasesonPartnership,
Agency,andTrust,p.443,2005ed)
Q:Istheinterventionofanotarypublicrequired
forthevalidityofanSPA?
A:
GR: A power of attorney is valid although no
notary public intervened in its execution.
(Barrettov.Tuason,G.R.Nos.L36811,36827,
36840, 36872, Mar. 31, 1934) (De Leon, p.
443,2005ed)
cannotbeadmittedinevidenceunlessitiscertified
as such in accordance with the foregoing provision
of the rules by a secretary of embassy or legation,
consulgeneral,consul,viceconsul,orconsularagent
or by any officer in the foreign service of the
Philippinesstationedintheforeigncountryinwhich
the record is kept of said public document and
authenticated by the seal of his office. (Medina v.
Natividad,G.R.No.177505,Nov.27,2008)
Q:Whenisaspecialpowernecessary?
A:CALLMOSPRINGCOW
Q:Whatarethelimitationstoaspecialpowerof
attorney?
A:
1. A special power to sell excludes the
powertomortgage
2. A special power to mortgage does not
include the power to sell (Art. 1879,
NCC)
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
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3.
VIII.AGENCYBYOPERATIONOFLAW
IX.RIGHTSANDOBLIGATIONSOFPRINCIPAL
A:To:
1. comply with all obligations which the
agent may have contracted within the
scopeofhisauthority(Art.1910,NCC);
2. advancetotheagent,shouldthelatter
so request, the sums necessary for the
execution of the agency (Art. 1912,
NCC);
3. reimburse the agent for all advance
madebyhim,providedtheagentisfree
fromfault(Ibid.);
4. indemnify the agent for all damages
whichtheexecutionoftheagencymay
have caused the latter without fault or
negligenceonhispart(Art.1913,NCC);
and
5. paytheagentthecompensationagreed
upon, or if no compensation was
specified, the reasonable value of the
agents services. (De Leon, Comments
and Cases on Partnership, Agency, and
Trust,pp.545555,2005ed)
A:
GR:Yes.
XPNs:
1. If the agent acted in contravention of
the principal's instructions, unless
principal derives benefits from the
contract;
2. When the expenses were due to the
faultoftheagent;
366
3.
4.
Q:Whatistheliabilityoftheprincipalregarding
contractsenteredintobytheagent?
A:
GR: The principal must comply with all the
obligations which the agent may have
contractedwithinthescopeofhisauthority.
XPN:Wheretheagentexceededhisauthority.
XPNtotheXPN:Whentheprincipalratifiesit.
A:
GR: Where the fault or crime committed by
the agent is not in the performance of an
obligation of the principal, the latter is not
boundbytheillicitactsoftheagent,evenifit
isdoneinconnectionwiththeagency.
XPNs:
1. Where the tort was committed by the
agent because of defective instructions
from the principal or due to lack of
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
AGENCY
2.
necessaryvigilanceorsupervisiononhis
part;or
When the tort consists in the
performance of an act which is within
the powers of an agent but becomes
criminal only because of themanner in
which the agent has performed it; the
principal is civilly liable to 3rd persons
whoactedingoodfaith.
Q:Whenistheprincipalnotboundbytheactof
theagent?
A:
1. GR:Whentheactiswithoutorbeyond
the scope of his authority in the
principalsname.
XPNs:
a. Where the acts of the principal
have contributed to deceive a 3rd
personingoodfaith
b. Where the limitation upon the
power created by the principal
couldnothavebeenknownbythe
rd
3 person
c. Where the principal has placed in
thehandsoftheagentinstruments
signedbyhiminblank
d. Where the principal has ratified
theactsoftheagent
2. Whentheactiswithinthescopeofthe
agents authority but in his own name,
except when the transaction involves
thingsbelongingtotheprincipal.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Note:Thelimitsoftheagentsauthorityshallnotbe
consideredexceededshouldithavebeenperformed
in a manner more advantageous to the principal
thanthatspecifiedbyhim.
14.
15.
RESPONSIBILITIESANDOBLIGATIONSOFAN
AGENT
Q:Whatarethespecificobligationsofanagent
totheprincipal?
A:CAFOFANALADRIPBIR
1. Carry out the agency which he has
accepted
2. Answer for damages which through his
nonperformance the principal may
suffer
3. Finish the business already begun on
the death of the principal should delay
entailanydanger
4. Observe the diligence of a good father
of a family in the custody and
16.
17.
preservationofthegoodsforwardedto
himbytheownerincasehedeclinesan
agency,untilanagentisappointed(Art.
1885,NCC)
advance the necessary Funds should
there be a stipulation to do so (Art.
1886,NCC)
Act in accordance with the instructions
of the principal, and in default thereof,
to do all that a good father of a family
woulddo(Art.1887,NCC)
Not to carry out the agency of its
execution would manifestly result in
loss or damage to the principal (Art.
1888,NCC)
Answer for damages if there being a
conflictbetweenhisinterestsandthose
of the principal, he should prefer his
own(Art.1889,NCC)
not to Loan to himself if he has been
authorized to lend money at interest
(Art.1890,NCC)
render an Account of his transactions
andtodelivertotheprincipalwhatever
he may have received by virtue of the
agency(Art.1891,NCC)
Distinguish goods by countermarks and
designate the merchandise respectively
belonging toeach principal, in the case
of a commission agent who handles
goodsofthesamekindandmark,which
belong to different owners (Art. 1904,
NCC)
be Responsible in certain cases for the
actsofthesubstituteappointedbyhim
(Art.1890,NCC)
Payinterestonfundshehasappliedto
hisownuse(Art.1896,NCC)
Inform the principal, where an
authorized sale of credit has been
made,ofsuchsale(Art.1906,NCC)
Bear the risk of collection and pay the
principaltheproceedsofthesaleonthe
same terms agreed upon with the
purchaser, should he receive also on
sale, a guarantee commission (Art.
1907,NCC)
Indemnifytheprincipalfordamagesfor
his failure to collect the credits of his
principal at the time that they become
due(Art.1908,NCC)
be Responsible for fraud or negligence
(Art. 1909, NCC; De Leon, Comments
and Cases on Partnership, Agency, and
Trust,pp.478479,2005ed)
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
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A:No,Theforfeitureofthecommissionwilltake
place regardless of whether the principal suffers
any injury by reason of such breach of loyalty. It
does not even matter if the agency is for a
gratuitous one, or that the principal obtained
betterresults,orthatusageandcustomsallowa
receiptofsuchabonus.
Note:Anagenthasanabsolutedutytomakeafull
disclosure or accounting to his principal of all
transactionsandmaterialfactsthatmayhavesome
relevance with the agency. (Domingo v. Domingo,
G.R.No.L30573,Oct.29,1971)
A:
1. Iftheagentactedonlyasamiddleman
with the task of merely bringing
togetherthevendorandvendees;
2. If the agent informed the principal of
the gift/bonus/profit he received from
the purchaser and his principal did not
objectthereto;or
3. Where a right of lien exists in favor of
theagent.
A:
GR:Jointlyliable.
XPN:Solidarityhasbeenexpresslystipulated.
Each of the agents becomes solidarily liable
for:
1. thenonfulfillmentoftheagency;or
2. faultornegligenceofhisfellowagent.
Q:Whatistherulewithregardtotheexecution
oftheagency?
A:
GR: The agent is bound by his acceptance to
carryouttheagency,andisliablefordamages
which, through his nonperformance, the
principalmaysuffer.
368
XPN:Ifitsexecutioncouldmanifestlyresultin
lossordamagetotheprincipal
A:
1. Agentexpresslyboundhimself;
2. Agentexceedshisauthority;
3. Acts of the agent prevent the
performance on the part of the
principal;
4. When a person acts as agent without
authorityorwithoutaprincipal;or
5. A person who acts as an agent of an
incapacitated principal unless the third
person was aware of the incapacity at
thetimeofthemakingofthecontract.
Q:Whatisthescopeoftheagentsauthorityas
tothirdpersons?
A:
1. WhereauthorityisnotinwritingEvery
person dealing with an assumed agent
must discover upon his peril, if he
wouldholdtheprincipalliable,notonly
the fact of the agency but the nature
and extent of the authority of the
agent.
2. Where authority is in writing 3rd
personisnotrequiredtoinquirefurther
thanthetermsofthewrittenpowerof
attorney.
Note:Athirdpersonwithwhomtheagentwishesto
contract on behalf of the principal may require the
presentation of the power of attorney or the
instructionsasregardstheagency.
A:
GR: There must be a stipulation in the
contract that the agent shall advance the
necessaryfunds
XPN:Whentheprincipalisinsolvent.
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
AGENCY
RIGHTSOFAGENTS
Q:Whataretheinstanceswhentheagentmay
retaininpledgetheobjectoftheagency?
A:
1. If principal fails to reimburse the agent
the necessary sums, including interest,
which the latter advanced for the
execution of the agency (Art. 1912,
NCC);or
2. If principal fails to indemnify the agent
for all damages which the execution of
theagencymayhavecausedthelatter,
without fault or negligence onhis part.
(Art.1913,NCC)
A:Ifthetwocontractsareincompatiblewitheach
other, the one of prior date shall be preferred.
Thisissubjecthowevertotheruleondoublesale
underArt.1544,NCC.
Note:Rulesofpreferenceindoublesale
1. Personal property possessor in good
faith
2. Realproperty
a. Registrantingoodfaith
b. Possessoringoodfaith
c. Person with the oldest title in good
faith(Art.1544,NCC)
PROHIBITEDACTSOFANAGENT
Q:Whataretheprohibitedactsofanagent?
A:
1. Personalacts
2. Criminalorillegalacts
Note:e.g.:
1. Righttovote
2. Makingofawill
3. Underoathstatements
4. Attendingboardmeetingsofcorporations.
(DeLeon,p.358,2005ed)
X.IRREVOCABLEAGENCY
Q:Whenisagencyirrevocable?
A:
1. Ifabilateralcontractdependsuponit
2. if it is the means of fulfilling an
obligationalreadycontracted
3. ifpartnerisappointedmanagerandhis
removal from the management is
unjustifiable.(Art1927)
4. if it has been constituted in the
common interest of the principal and
theagent(Art.1930)
5. Stipulationpouratrui
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A:Bothprincipalandagentmustbe:
1. Present
2. Capacitated
3. Solvent (De Leon, Comments and Cases
on Partnership, Agency, and Trust, p.
610,2005ed)
Q:Cantheheirscontinuetheagency?
A:
GR:No.
XPNs:
1. Agency by operation of law, or a
presumedortacitagency
2. Agency is coupled with an interest in
the subject matter of the agency (e.g.
powerofsaleinamortgage)
A:EDWARD
1. Expirationoftheperiod
2. Death, civil interdiction, insanity or
insolvencyofprincipaloroftheagent
3. Withdrawalbytheagent
4. Accomplishment of the object or the
purposeoftheagency
5. Revocation
6. Dissolution of the firm or corporation
which entrusted or accepted the
agency.
REVOCATION
Q:Isacontractofagencyrevocable?
A:
GR: Yes. Agency is revocable at will by the
principal.
XPNs:Itcannotberevokedif:
1. abilateralcontractdependsuponit
2. itisthemeansoffulfillinganobligation
alreadycontracted
370
3.
4.
Q:Whatarethekindsofrevocation?
Q:Howisagencyimpliedlyrevoked?
A:Principal:
1. appoints a new agent for the same
business or transaction (Art. 1923,
NCC);
2. directly manages the business
entrustedtotheagent(Art.1924,NCC);
or
3. after granting general power of
attorney, grants a special one to
another agent which results in the
revocationoftheformerasregardsthe
special matter involved in the latter.
(Art.1926,NCC)
A:Anyoneoftheprincipalsisgrantedtherightto
revoke the power of attorney without the
consentoftheothers.
Q:Isnoticeofrevocationnecessary?
A:
1. As to the agent Express notice is not
necessary; sufficient notice if the party
to be notified actually knows, or has
reason to know, a fact indicating that
his
authority
has
been
terminated/suspended;
revocation
without notice to the agent will not
renderinvalidanactdoneinpursuance
oftheauthority
rd
2. As to 3 persons Express notice is
necessary
a.
As to former customers Actual
notice must be given to them
because they always assume the
continuance of the agency
relationship
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
AGENCY
b.
Q:Whatistheeffectofthedirectmanagement
bytheprincipal?
A:
GR:Theagencyisrevokedfortherewouldno
longer be any basis for the representation
previously conferred. But the principal must
act in good faith and not merely to avoid his
obligationtotheagent.
Q:RichardsoldalargeparceloflandinCebuto
Leo for P100 million payable in annual
installmentsoveraperiodoftenyears,buttitle
willremainwithRicharduntilthepurchaseprice
is fully paid. To enable Leo to pay the price,
Richard gave him a powerofattorney
authorizing him to subdivide the land, sell the
individual lots, and deliver the proceeds to
Richard,tobeappliedtothepurchaseprice.Five
years later, Richard revoked the power of
attorney and took over the sale of the
subdivision lots himself. Is the revocation valid
ornot?Why?
DEATH
A:
GR:Theagencyisterminatedbythedeathof
the principal even if the agency is for a
definiteperiod.
XPNs:
1. If it has been constituted in common
interest of the principal and the agent
or in the interest of the third person
who accepted the stipulation in his
favor;or
2. Anythingdonebytheagentwithoutthe
knowledgeofthedeathoftheprincipal
or on any other cause which
extinguishes the agency is valid and
shall be effective on third persons who
may have contracted with him in good
faith.
Q:Isthesaleofthelandbytheagentafterthe
deathoftheprincipalvalid?
A:Article1931,NCCprovidesthatanactdoneby
theagentafterthedeathoftheprincipalisvalid
andeffectiveifthesetworequisitesconcur:
1. that the agent acted without the
knowledgeofthedeathoftheprincipal;
and
2. that the third person who contracted
with the agent himself acted in good
faith.
Goodfaithheremeansthatthethirdpersonwas
not aware of the death of the principal at the
timethathecontractedwithsaidagent.(Rallosv.
FelixGoChan,G.R.No.L24332,Jan.31,1978)
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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CHANGEOFCIRCUMSTANCESSURROUNDING
TRANSACTION
Q:Whatistheeffectofachangeofcircumstance
surroundingthetransaction?
A:
GR:Theauthorityoftheagentisterminated.
XPNs:
1. If the original circumstances are
restored within a reasonable period of
time, the agent's authority may be
revived;
2. Wheretheagenthasreasonabledoubts
as to whether the principal would
desire him to act, his authority will not
beterminatedifheactsreasonably;or
3. Where the principal and agent are in
close daily contact, the agent's
authoritytoactwillnotterminateupon
a change of circumstances if the agent
knows the principal is aware of the
change and does not give him new
instructions. (De Leon, pp. 616617,
2005ed)
WITHDRAWALBYTHEAGENT
Q:Cantheagentwithdrawfromtheagency?
A:
3. Without just cause The law imposes
upon the agent the duty to give due
noticetotheprincipalandtoindemnify
the principal should the latter suffer
damagebyreasonofsuchwithdrawal.
4. With just cause The agent cannot be
heldliable.
372
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM
COMPROMISE
COMPROMISE
I.DEFINITION
Q:Whatisacompromise?
A:
1. Consensual
2. Reciprocal
3. Nominate
4. Onerous
5. Accessory (in the sense that a prior
conflictispresupposed)
6. Once accepted, it is Binding on the
parties, provided there is no vitiated
consent(McCarthyv.BarberSteamship
Lines,45Phil.488).
7. It is the Settlement of a controversy
principally, and is but merely
incidentally, the settlement of a claim.
(Ibid)
Q:Whatarethekindsofcompromise?
A:
1. Judicialtoendapendinglitigation
2. Extrajudicial to prevent a litigation
fromarising
Q:Whatisthebasicdutyofacourtwhenevera
suitisfiled?
A:
1. If willingness to discuss a possible
compromise is expressed by one or
bothparties;or
2. if it appears that one of the parties,
before the commencement of the
actionorproceeding,offeredtodiscuss
a possible compromise but the other
partyrefusedtheoffer.
Q:XisindebtedtoYintheamountofP50,000
with the stipulation that the same shall earn
interest at 40% per annum. When X failed to
pay,Ysuedhim.Inanefforttosettlethecase,X
offered to pay the principal but begged for the
reduction of the interest. Y refused,hence, trial
wasconducted.Canthejudgereducetherateof
interest?
A:Yes.Thecourtsmaymitigatethedamagetobe
paidbythelosingpartywhohasshownasincere
desireforacompromise.(Art.2031,NCC)
II.VOIDCOMPROMISE
Q:Whenisacompromisevoid?
A:
1. Civilstatus
2. Validity of a marrieage or a legal
separation
3. Anygroundforlegalseparation
4. Futuresupport
5. Jurisdictionofcourts
6. Futurelegitime
III.EFFECT
A:Ithastheeffectofresjudicata.Acompromise
has upon the parties the effect and authority of
resjudicata.(Art.2037,NCC)
Q:Whatrequirementisnecessaryinorderthata
compromisebeexecuted?
A:Inorderthatacompromisemaybeexecuted,
there must be approval of the court. (Art 2037,
NCC)
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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A:Ifoneofthepartiesfailsorrefusestoabideby
the compromise, the other party may either
enforcethecompromise,orregarditasrescinded
and insist upon his original demand. (Art 2041,
NCC).
374
CIVILLAWTEAM:
ADVISER:ATTY.ELMERT.RABUYA;SUBJECTHEAD:ALFREDOB.DIMAFELIXII;
ASST.SUBJECTHEADS:KARENFELIZG.SUPNAD,LAMBERTOL.SANTOSIII;MEMBERS:PAULELBERTE.AMON,ALSTONANARNA,OZANJ.
FULLEROS,CECILIOM.JIMENO,JR.,ISMAELSARANGAYA,JR.;CONTRIBUTORS:LOISERAEG.NAVAL,MONICAJUCOM