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I. GENERAL PRINCIPLES
Essential requisites of marriage
Newspaper of General Circulation 1. Legal capacity of the contracting parties
Requisites: a. Parties must be a man and a woman
1. Published for the dissemination of local b. No legal impediment to marry
news and general information c. Must be at least 18 years old.
2. Has a bona fide subscription list of paying 2. Consent freely given in the presence of a
subscribers; solemnizing officer.
3. Published at regular intervals; and
4. In the Philippines (Marcelo vs. PCIB, GR Formal requisites of marriage
No. 182735, December 4, 2009). 1. Authority of the solemnizing officer
2. Valid Marriage License
Non-retroactivity of laws 3. Marriage ceremony
General Rule: Laws have no retroactive effect.
Note: Absence of any essential and formal
Exceptions [T-PRINCES] requisites will make the marriage VOID.
1. Tax laws; However, mere irregularity in the formal
2. Penal laws favorable to the accused; requisites will not invalidate the marriage.
3. Remedial or Procedural laws;
4. Interpretative laws; In declaring a marriage void on the ground of
5. It creates New substantive rights; psychological incapacity, is there a need to
6. Curative laws; have an actual medical examination of the
7. Emergency laws; spouse concerned?
8. Statute provides for retroactivity.
No. If the totality of evidence presented is
Exceptions to the exception: enough to sustain a finding of psychological
1. Ex post facto laws; or incapacity, then actual medical examination of
2. Law that impair the obligation of contracts. the person concerned need not be resorted to.
(Kalaw vs. Fernandez, GR No. 166357, January
II. CONFLICT OF LAWS 14, 2015) BERSAMIN CASE

Forum non conveniens Difference between property regime under


Under this doctrine, the court, in conflict of law Article 147 and Article 148.
cases, may refuse impositions on its jurisdiction Article 147 Article 148
where it is not the most convenient or available Applicability
forum and the parties are not precluded from Requisites In cases of
seeking remedies elsewhere. It entails a 1. Parties must be cohabitation not falling
recognition not only that other tribunals are capacitated to under Art. 147.
better suited to rule on and resolve a marry each
controversy, but also, that these tribunals are other;
Parties do not have
better positioned to enforce judgments and, 2. Live exclusively
with each other as the capacity to marry
ultimately, to dispense justice. (Saudi Arabian
husband and wife; due to some legal
Airlines vs. Rebesencio, GR No. 198587, 3. Without the impediments.
January 14, 2017) benefit of
marriage or under
Renvoi Doctrine void marriage.
A procedure whereby a legal matter is referred Salaries and wages
by the conflict of laws rules of the forum to a Owned in equal Separately owned by
foreign state, the conflict of law rules of which, in shares. the parties. If any of
turn refers the matter back to the law of the them is married,
forum (remission) or a third state (transmission). his/her salary is the
property of the CPG of
Double Renvoi Theory the legitimate
It occurs when the local court, in adopting the marriage.
foreign court theory, discovers that the foreign Property acquired by either exclusively by
court accepts the renvoi. own funds
Belongs to such party Belongs to such party.
III. FAMILY CODE subject to proof of

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acquisition by Foreign Divorce


exclusive funds. General Rule: Foreign divorce is not valid in the
Property acquired by both through their Philippines.
work/ industry
Governed by rules on Owned by them in Exception: Between a Filipino and an alien
co-ownership. common in proportion provided the following requisites are present:
to respective 1. there is a valid marriage celebrated between
contributions. a Filipino citizen and a foreigner; and
Property acquired while living together 2. a valid divorce according to the national law
Presumed to be No presumption of of the foreigner is obtained abroad by alien
obtained by their joint joint acquisition. spouse capacitating him/her to remarry (Art.
efforts, work, or 26[2], FC)
industry and shall be When there is
owned by them in evidence of joint The 2nd paragraph of Article 26 of the Family
equal shares. acquisition but none as Code includes involving parties who, at the time
to the extent of actual of the celebration of the marriage were Filipino
Efforts in care and contribution, there is a citizens, but later on, one of them becomes
maintenance of family presumption of equal naturalized as a foreign citizen and obtains a
and household sharing. divorce decree. The Filipino spouse should
considered likewise be allowed to remarry as if the other
contribution in party were a foreigner at the time of the
acquisition. solemnization of the marriage. (Republic vs.
Forfeiture Orbecido III, GR No. 154380, October 5, 2005).
When only one of the If one of the parties is
Although Article 26 only refers to divorce, the
parties to a void validly married to
principle therein applies in a marriage between a
marriage is in good another, his or her
Filipino and an alien who obtains a foreign
faith, share of party in share in the co-
judgment nullifying the marriage on the ground
bad faith in the co- ownership shall accrue
of bigamy. The principle in the second
ownership shall be to the CP or CPG
paragraph of Article 26 applies because the
forfeited. existing in such valid
foreign spouse, after the foreign judgment
1. In favor of their marriage.
common children; nullifying the marriage, is capacitated to remarry
2. In case of default If one party, who acted under the laws of his or her country. If the
or waiver by any or foreign judgment is not recognized in the
in bad faith, is not
all common Philippines, the Filipino spouse will be
children or validly married to
discriminated the foreign spouse can remarry
descendants, each another, his/her estate
while the Filipino spouse cannot remarry. (Fujiki
vacant share shall shall be forfeited in the
belong to same manner provided vs. Marinay, GR No. 1196049, June 26, 2013)
respective for in Art. 147.
surviving Divorce between Filipinos is void and ineffectual
descendants; under the nationality rule adopted by Philippine
The above rules apply
3. In their absence, law. Hence, any settlement of property between
to the innocent even if both parties are the parties of the first marriage involving
party. in bad faith.
Filipinos submitted as an incident of a divorce
obtained in a foreign country lacks competent
judicial approval, and cannot be enforceable
Note: What will be forfeited is ALL the shares
against the assets of the husband who contracts
of the bad faith party and not merely the
a subsequent marriage. (Lavadia vs. Heirs of
share in the net profit.
Juan Luces Luna, GR No. 171914, July 23,
2014) BERSAMIN CASE.
Doctrine of Triennial Cohabitation
Under this rule, if the wife remains virgin for at
In a voluntary judicial separation of property,
least 3 years from the time the spouses started
is there a need to deliver the presumptive
cohabiting, the husband must show that he was
legitime?
not impotent during the said period and the
burden will be upon him to overcome the
YES. Article 102 of the Family Code applies also
presumption of impotence.
to the voluntary judicial separation of property.
Under Article 102(5) of the Family Code, the

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presumptive legitimes of the common children despite their de facto separation. The husband
shall be delivered upon partition. (Noveras vs. to be eligible to adopt his illegitimate children,
Noveras, GR No. 188289, August 20, 2004). the wife must first signify her consent to the
adoption. The law also requires the consent of
Illegitimate Children the adopters children if they are 10 years old or
General Rule: Those conceived and born older. (Castro vs. Jose Maria and Ana Maria
outside a valid marriage are illegitimate Gregorio, GR No. 188801, October 15, 2014).

Exceptions: V. LAND, TITLE AND DEEDS


1. A child born before judicial decree declaring
a marriage void due to psychological Mirror Doctrine
incapacity under Art. 36 of the Family Code All persons dealing with a property covered by
has become final and executory;
Torrens certificate of title are not required to go
2. A child born of a second marriage that was
contracted after the judgment annulling or beyond what appears on the face of the title.
declaring null and void the first marriage but Where there is nothing on the certificate of title
the partition of property is not yet recorded to indicate any cloud or vice in the ownership of
in Registry of Property. the property, or any encumbrance thereon, the
purchaser is not require to explore further than
When can an illegitimate child use the what the Torrens title upon its face indicates in
surname of his father? quest for any hidden defect or inchoate right that
1. If their filiation has been expressly may defeat his right thereto.
recognized by the father through the record
of birth appearing in the civil register; or
Exceptions to the application of the mirror
2. When an admission in a public document or
doctrine
private handwritten instrument is made by
1. Purchaser or mortgagee is a Bank/financing
the father.
institution
2. Owner still holds a valid and existing
IV. ADOPTION certificate of title covering the same property
because the law protects the lawful holder of
Adoption of the spouses a registered title over the transfer of a
General Rule: Husband and wife shall JOINTLY vendor bereft of any transmissible right;
adopt 3. Purchaser in bad faith
4. Purchases land with a certificate of title
Exceptions: containing a notice of lis pendens
5. Sufficiently strong indications to impel closer
1. One spouse seeks to adopt the child of the
to inquiry into the location boundaries and
other; condition of the lot
2. One spouse seeks to adopt his/her own 6. Purchaser had full knowledge of flaws and
illegitimate child, provided that the other defects in the title
spouse consented; or 7. Person buys land and not from the
3. Spouses are legally separated from each registered owner but from whose rights to
other. the land had been merely annotated on the
certificate of title.
Under the Torrens system of land registration,
WRITTEN Consent necessary for adoption
the registered owner of realty cannot be
1. Adoptee if 10 years or older;
deprived of her property through fraud, unless a
2. Adoptees biological parents, if known, or
transferee acquires the property as an innocent
legal guardian, or the other proper
purchaser for value. A transferee who acquires
government instrumentality which has legal
the property covered by a reissued owners copy
custody of the child;
of the certificate of title without taking the
3. Adopters legitimate and adopted children
ordinary precautions of honest persons in doing
who are 10 years or over and, if any,
business and examining the records of the
illegitimate children living with them; and
proper Registry of Deeds, or who fails to pay the
4. Adopter spouse.
full market value of the property is not
considered an innocent purchaser for value.
The law on adoption requires that the adoption
(Cusi vs. Domingo, GR No. 195825, February
by the father of a child born out of wedlock
17, 2013) BERSAMIN CASE
obtain not only the consent of his wife but also
the consent of his legitimate children. In the
The Regalian doctrine dictates that all lands of
absence of any decree of legal separation or
the public domain belong to the State. The
annulment, the spouse remained legally married

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applicant for land registration has the burden of Republic, GR No. 179987, September 3,
overcoming the presumption of State ownership 2013) BERSAMIN CASE
by establishing through incontrovertible
evidence that the land sought to be registered is Self-help doctrine
alienable or disposable based on a positive act 1. Actual or threatened physical invasion or
of the government. (Republic vs. De Joson, GR usurpation
No. 163767, March 10, 2014) BERSAMIN 2. Reasonable force is exercised
3. Force is exercised by the owner or lawful
CASE
possessor
4. No delay in the exercise
VI. PROPERTY
Alluvion vs. Avulsion
Test to determine if property is movable Alluvion Avulsion
1. Test of exclusion if the property is Gradual and Sudden and abrupt
excluded from the enumeration under Art. imperceptible process
415 of the Civil Code, the property is Source of the soil is Source of the portion
considered movable or personal. not identifiable of land is identifiable
2. Test by description A property is and verifiable
considered personal if, by its nature, it can New area belongs to Ownership of the
be moved from place to place and can be the owner of the portion attached is
removed from the real property without property to which it is retained by the owner
impairment of the real property. attached from whose property it
is attached
Note: The Test of Exclusion is the SUPERIOR
Sediments are Known portion is
test.
attachment detached and the
same is thereafter
Rules on acquisition of lands of public
attached to another
domain
parcel of land.
General Rule: All lands of public domain belong
to the State. Lands that are not clearly under
Quieting of title
private ownership are also presumed to belong
An action that may be brought to remove or
to the State and, therefore, may not be alienated
prevent a cloud from being cast upon the title to
or disposed.
real property or any interest therein.

Exceptions:
Requisites of quieting of title
1. Agricultural lands of the public domain are
1. Plaintiff must have legal or equitable title
rendered alienable and disposable through
2. A cloud in such title exists
any of the exclusive modes enumerated
3. Such cloud must be due to some instrument,
under Section 11 of the Public Land Act. If
record, claim, encumbrance or proceeding
the mode is judicial confirmation of imperfect
which is apparently valid but is in truth
title under Section 48(b) of the Public Land
invalid, ineffective, voidable or
Act, the agricultural land subject of the
unenforceable, and is prejudicial to the
application needs only to be classified as
plaintiffs title; and
alienable and disposable as of the time of
4. Plaintiff must return to the defendant all
the application, provided the applicants
benefits he may have received from the
possession and occupation of the land dated
latter.
back to June 12, 1945, or earlier.
Limitations on the use of co-owned property
2. Lands of the public domain subsequently
1. Must be according to the purpose for which
classified or declared as no longer intended it was intended
for public use or for the development of 2. Use must not prejudice the interest of the
national wealth are removed from the co-ownership
sphere of public dominion and are 3. Other co-owners must not be prevented
considered converted into patrimonial lands from using it according to their own rights.
or lands of private ownership that may be
alienated or disposed through any of the How acts of co-owners should be decided?
modes of acquiring ownership under the 1. Preservation of the thing one co-owner
may decide to perform with prior notice
Civil Code. (Heirs of Malabanan vs.

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2. Management or administration Decided by the title constituting it or the law provides


co-owners representing the majority of otherwise. (Art. 562, NCC)
interest
3. Alteration or acts of ownership Unanimous
Usufruct distinguished from Lease
decision is required.
Usufruct Lease
Partition of co-owned property Always a real right May be a real right or
General Rule: Demandable as a matter of right personal right
Owner gives the Lessor need not be
Exceptions: usufruct the owner
1. A stipulation against partition not exceeding Usufruct has the right Lessee is generally
10 years exists; to use and right to all entitled to use of the
2. Condition of indivision is imposed by the the fruits and benefits thing only
donor or testator not exceeding 20 years Usufruct is responsible As a general rule,
3. Legal nature of the co-owned property for ordinary repairs lessee is not under the
prevents partition; and taxes on the fruits obligation to undertake
4. Partition would render the thing repairs or pay taxes
unserviceable; Usufruct is constituted Lease is by acts inter
5. Partition is prohibited by law by will, by acts inter vivos generally by
6. Another co-owner has possessed the vivos and by last will contracts
property as exclusive owner for a period and testament
sufficient to acquire it by prescription.

Condominium Corporation VII. SUCCESSION


A condominium corporation shall not, during its
existence, sell, exchange, lease or otherwise Requirements of a valid notarial will (Art.
dispose of the common areas owned or held by 805, NCC)
it in the condominium project unless authorized 1. Subscribed by the testator or his agent in his
by the affirmative vote of all the stockholders presence and by his direction at the end
or members. (RA No. 4726, Sec. 16) thereof, in the presence of the witnesses;
2. Attested and subscribed by at least 3
The management body, unless otherwise credible witnesses in the presence of the
provided for by the declaration of restrictions, testator and of one another;
may acquire and hold, for the benefit of the 3. The testator, or his agent, must sign every
condominium owners, tangible and intangible page, except the last, on the left margin in
personal property and may dispose of the same the presence of the witnesses;
by sale or otherwise; the beneficial interest in 4. The witnesses must sign every page, except
such property shall be owned by the the last, on the left margin in the presence of
condominium owners in the same proportion as the testator and of one another;
their respective interests in the common areas. 5. All pages numbered correlatively in letters
A transfer of a condominium shall transfer to the on the upper part of the page;
transferee ownership of the transferors 6. Attestation clause, stating:
beneficial interest in such personal property. (RA a. The number of pages of the will;
No. 4726, Sec. 22). b. The fact that the testator or his agent
under his express direction signed the
Order of Preference in case of Conflict of will and every page thereof, in the
Possession presence of the witnesses;
1. Present possessor shall be preferred c. The fact that the witnesses witnessed
2. If there are two possessors, the one longer and signed the will and every page
in possession thereof in the presence of the testator
3. If dates of possession are the same, the one and one another.
with a title
7. Acknowledgement before notary public.
4. If all conditions are equal, the fact of
possession shall be judicially determined.
Attestation clause
Usufruct It is the act of the witnesses in witnessing the
The right of a person (the usufructuary) to enjoy execution of the will in order to see and take
the property of another (the owner) with the note mentally that such will has been executed
obligation of returning it at the designated time in accordance with the requirements prescribed
and preserving its form and substance, unless by law.

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The attestation clause is the affair of the


witnesses, therefore, it need not be signed by GROSS ESTATE (Value of the property at the
the testator (Fernandez vs. Vergel de Dios, GR time of death)
No. L-21151, February 25, 1924). Less: LIABILITIES (Debts and Obligations
existing at the time of death)
Doctrine of dependent relative revocation GROSS ESTATE BEFORE COLLATION
The revocation of the first will depends on the Add: DONATION (Collation)
validity of the subsequent will. It applies only if it NET ESTATE (Basis for Computation of
appears that the testator intended his act of Legitime)
revocation to be conditioned on the making of a
new will or on its validity, or efficacy. Rule on surviving spouse as sole
compulsory heir (Art. 900, NCC)
Preterition General Rule: of the estate.
It is the omission of one, some, or all of the
compulsory heirs in the direct line, whether living Exceptions: 1/3 of the estate, if the following
at the time of the execution of the will or born circumstances are present:
after the death of the testator. (Art. 854, NCC) 1. Marriage was in articulo mortis;
2. Testator died within 3 months from the time
It has been defined as the total omission of a of marriage;
compulsory heir from the inheritance. It consists 3. Parties did not cohabit for more than 5
in the silence of the testator with regard to a years; and
4. Spouse who died was the party in articulo
compulsory heir, omitting him in the testament,
mortis at the time of the marriage.
either by not mentioning him at all, or by not
giving him anything in the hereditary property Exception to the exception: of the estate if
but without expressly disinheriting him, even if they have been living as husband and wife for
he is mentioned in the will in the latter case. more than 5 years before the marriage.
(Heirs of Policronio Ureta v. Heirs of Liberato
Ureta, GR No. 165748, September 14, 2011) Reserva troncal
It is the reservation by virtue of which an
Preterition vs. Imperfect disinheritance ascendant who inherits from his descendant any
Imperfect property which the latter may have acquired by
Preterition
Disinheritance gratuitous title from another ascendant, or a
Person omitted must Person disinherited brother or sister, is obliged to reserve such
be a compulsory heir may be any property as he may have acquired by operation
in the direct line compulsory heir. of law for the benefit of relatives who are within
Attempt to deprive the Attempt to deprive the the 3rd degree and who belong to the line from
heir is implied. heir is always express. which said property came (Art. 891, NCC).
May be intentional or Always intentional.
unintentional Requisites of reserva troncal
Effect is total Effect is partial 1. Property was acquired by operation of law
annulment of the annulment of the by an ascendant from his descendant upon
institution of heir institution of heirs up to the death of the latter;
the extent of the 2. Property was previously acquired through
gratuitous title by the descendant from
prejudice to the
another ascendant or from a brother or
disinherited heir. sister;
3. Descendant died without any legitimate
Effects of a valid disinheritance issue in the direct descending line who could
It is not just deprivation of the legitime, but inherit from him; and
TOTAL EXCLUSION of the disinherited heir 4. There are relatives within the 3rd degree
from inheritance. Thus, the disinherited heir belonging to the line from which said
property came.
forfeits:
1. His legitime;
Successional Barrier (Iron Curtain Rule)
2. His intestate portion, if any; and
3. Any testamentary disposition made in a prior It is a barrier separating or dividing the members
will of testator. of the legitimate family from those of the
illegitimate family.
FORMULA FOR COMPUTATION OF BASIS
FOR LEGITIME

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Under this rule, an illegitimate child has no right 3. There is a stipulation that the obligor will not
to inherit ab intestate from the legitimate children be excused even if there is a fortuitous
and relatives of his father or mother; nor shall event
4. Assumption of risk is required by the nature
such children or relatives inherit in the same
of obligation
manner from the illegitimate child. (Art. 992, 5. Thing to be delivered is generic
NCC) 6. Obligor is also at fault

Right of Representation: Testamentary Term/Period and Condition Distinguished


Succession vs. Intestate Succession Term/Period Condition
Testamentary Intestate Succession Interval of time which is Fact or event which is
Succession future and certain future but uncertain
Available in case of Available only in case Must necessarily come, May or may not
disinheritance, of incapacity and although it may not be happen
incapacity, and predecease. known when
predecease. Exerts an influence Exerts an influence
Covers only the Covers the full upon the time of upon the very
legitime intestate shares demandability or existence of the
Available only to the Extends not only to extinguishment of an obligation itself.
descendants descendants, but to obligation
the nephews and No retroactive effect Has retroactive effect
nieces, provided they unless there is an
should survive along agreement to the
with their uncle or contrary
aunt. When it is left When it is left
exclusively to the will of exclusively to the will
the debtor, the of the debtor, the very
Rules on imputation of donation inter vivos existence of the existence of the
(Art. 1062, NCC) obligation is not obligation is affected.
1. Donation is made to compulsory heirs affected, empowers the
General Rule: It should be imputed to the court to fix the duration
heirs legitime (considered as an advance on of the obligation
the legitime) Must be possible, Must be possible,
otherwise the otherwise the
Exceptions: obligation is void obligation is void
a. Donor expressly provided otherwise;
and
Dacion en pago vs. payment by cession
b. Donee repudiates his inheritance.
Dacion En Pago Payment By Cession
Note: In case either exception applies, the Ownership of the thing Creditors do not
donation will have to be imputed to the free delivered is transferred acquire ownership but
portion. to the creditor must sell the thing and
apply the proceeds to
2. Donation is made to strangers imputed to the debts
free portion. Debt is extinguished Debts are extinguished
only up to the extent
covered by the
VIII. OBLIGATIONS AND CONTRACTS proceeds of the sale
Only one creditor Two or more creditors
Fortuitous Events Insolvency of the Insolvency of the
General Rule: The obligor is not liable for any debtor is NOT required debtor is required
loss due to fortuitous event which occurred
before the delivery. Expromission vs. Delegacion
Expromission Delegacion
Exceptions: Initiative for change Initiative comes from
1. Obligor delays does not come from the debtor
2. Obligor promised the same thing to two or
the debtor
more persons who do not have the same
interest Consent of the debtor Consent of the debtor,
is not present and not creditor, and third

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even necessary person are present 2. Instrument does not express the true
Debtor is released Debtor is not released intention of the parties; and
Insolvency of the new Insolvency of new 3. Failure of the instrument to express the true
intention of the parties due to mistake, fraud,
debtor before or after debtor revives the inequitable conduct or accident.
the novation does not obligation of the debtor
revive the obligation if: IX. SALE
1. Insolvency is
existing at the time Contract of Sale vs. Contract to Sell
of novation
2. Of public Contract of Sale Contract to Sell
knowledge or Title passes to the Ownership is reserved
known to the buyer upon delivery of in the seller and is not
debtor the thing sold pass until full payment
of the purchase price
Alternative vs. Facultative Obligations Non-payment of the Full payment is a
Alternative Facultative price is a negative positive suspensive
Effect of Fortuitous Loss resolutory condition condition, the failure of
Only the impossibility Impossibility of the loss and the remedy of the which is not a breach
of all the prestations principal prestation is seller is to exact casual or serious but
due without the fault of sufficient to extinguish fulfillment or to rescind simply prevents the
the debtor the obligation, even if the contract obligation of the
extinguished the the substitute is vendor to convey the
obligation possible. title from having
Choice binding force
Right to choose may Only the buyer can Vendor loses and Title remains in the
be given to the choose the substitute cannot recover vendor if the vendee
creditor ownership of the thing does not comply with
Nature sold and delivered the condition
Various prestations all Only the principal until the contract of precedent of making
of which constitute prestation constitutes sale is resolved and payment at the time
parts of the obligation the obligation, the set asside. specified in the
accessory being only a contract.
means to facilitate
payment Sale vs. Contract of Piece of Work
Effect of the Nullity of Prestations Sale Contract of Piece of
Nullity of one of the Nullity of the principal Work
prestation does not prestation invalidates Risk of Loss
invalidate the the obligation. Borne by the buyer Borne by the worker or
obligation which, is still contractor
in force with respect to Object of the Contract
those which have no Sale of manufactured Service dominate the
vice. item contract
Applicability of Statute of Fraud
Joint and Solidary Obligations Governed by the Not governed by the
Joint Obligations (Obligacion Mancomunada) Statute of Fraud Statute of Fraud
The whole obligation is to be paid or fulfilled Existence of Things
proportionately by different debtors or The thing transferred The thing transferred is
demanded proportionately by different creditors. is one which would not in existence and
have existed and would never have
Solidarity Obligations (Obligacion Solidaria) would have been the existed but for the
Each one of the debtors is bound to render, subject of sale order of the buyer
and/or each one of the creditors has a right to
Rules in determining if the contract is one of
demand entire compliance with the prestation.
Sale or a Piece of Work
Reformation of Instruments If ordered or If manufactured
Requisites: manufactured in the especially for the
1. Meeting of the minds of the parties to the ordinary course of customer and upon the
contract; business special order, and not
for the general market

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Sale vs. Barter 4. Two or more buyers who are at odds over
Sale Barter the rightful ownership of the subject matter
Nature must present conflicting interest.
Thing is given in Thing is given in
exchange of a price exchange of another Rules of Preference in Double Sale
certain in money or its 1. Movable properties first possessor in
equivalent good faith is preferred
2. Immovable properties the order of
Applicable Law
preference is as follows:
Law on Sales Law on Barter or a. The buyer who first registered in good
exchange of another faith
thing b. First possessor in good faith
Applicability of Statute of Fraud c. Oldest title.
The rules on Statute of The rules on Statute of
Frauds, which apply to Frauds, which apply to Right of First Refusal
the sale of real the sale of real and An agreement which gives the first priority to the
property and personal personal property prospective buyer to purchase the property
property bought at bought at P500 or should the owner decide to sell the same. The
P500 or more apply more, do not aply. owner should offer the property first to such
If the consideration is partly in money and person.
partly in another thing
Remedies of the Unpaid Seller
1. Transaction is characterized by the manifest
1. Before delivery no obligation to deliver the
intention of the parties.
thing sold, if the buyer has not paid the
2. If there is no manifest intention price.
a. Barter if the value of the thing is more 2. After delivery
valuable than money a. Lien on the goods or right to retain them
b. Sale if the value of the thing is equal or for the price
less than the amount of money. b. Right of Stoppage in transit
c. Right of Resale
d. Right to Rescind the sale
Earnest money vs. Option money
Earnest Money Option Money RECTO LAW
Part of the purchase Given as a distinct Remedies of the seller in a contract of sale of
price consideration for an personal property on installment basis
option contract 1. Exact fulfillment of the obligation in case
When given, the buyer The would-be buyer is the buyer failed to pay
is bound to pay the not required to buy 2. Cancel the sale if the buyer failed to pay
balance two or more installments; or
Given when there is Sale is not yet 3. Foreclose the chattel mortgage
already a perfected perfected
MACEDA LAW
sale
Applies to contracts of sale of real estate on
Title passes to the Ownership is reserved
installment payments, including residential
buyer upon delivery of to the seller and is not
condominium apartments. It does not apply to:
the thing sold pass until full payment
1. Sale of industrial lots
In case of non- In case of non-
2. Sale of commercial buildings;
payment, an action for payment, there can be
3. Sales to Agricultural Tenants; and
specific performance no action for specific
4. Straight Sale or Sale not on installment
or for rescission can performance.
basis.
be filed

Conventional Redemption
Requisites of Double Sale
By express agreement, the seller is given the
1. Two or more transactions must constitute
right to repurchase the thing sold.
valid sales
2. Must pertain exactly to the same object or
Period to exercise conventional redemption
subject matter
The right of redemption should be exercised
3. Must be bought from the same or immediate
within the following period:
seller
1. Within the period agreed upon which should
not exceed 10 years from the date of the
contract

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2. In the absence of agreement, the seller Pre-emption Redemption


should redeem within 4 years from the date As to the Time of Exercise of Right
of the contract. Before sale After sale
Remedy of Rescission
Legal Redemption
No rescission because There can be
The right to be subrogated, upon the same
the sale does not yet rescission of the
terms and conditions stipulated in the contract,
exist original sale
in the place of one who acquires the thing by
Against whom the action is directed
purchase or dation in payment, or by any other
transaction. Prospective seller Buyer

Conventional vs. Legal Redemption X. PARTNERSHIP


Conventional Legal
Redemption Redemption What acts need unanimous approval of all
partners?
As to Constitution
1. Assign the partnership property in trust for
By express reservation Does not have to be
creditors or on the assignees promise to pay
in a contract of sale at expressly reserved the debts of the partnership
time of perfection and covers sales and 2. Dispose of the goodwill of the business
other onerous 3. Do any other act which would make it
transfers of title. impossible to carry on the ordinary business
As to who may exercise the right of a partnership
4. Confess a judgment
Seller Third party to the sale
5. Enter into a compromise concerning a
As to the Effect of its Exercise partnership claim or liability
Extinguishes the Actually constitutes a 6. Submit a partnership claim or liability to
underlying contract of new sale in substitute arbitration and
sale as though there of the original sale. 7. Renounce a claim of the partnership.
was never any
contract at all XI. CREDIT TRANSACTION

Pacto de Retro vs. Mortgage Commodatum vs. Mutuum


Pacto de Retro Mortgage Commodatum Mutuum
Nature Object
Ownership is Ownership is not General Rule: Non- Consumable/Fungible
immediately transferred but the consumable/Non-
transferred subject to property is merely fungible.
resolutory condition of subject to a charge or
repurchase by the lien as security Exception: If the
vendee purpose of the contract
Interest is not the consumption
of the object
Failure of seller to Mortgagor does not
repurchase loses his lose his interest if he Cause
interest in the property, fails to pay his debt at Essentially gratuitous Generally gratuitous
title to which vests maturity but subjects although it may also
upon the buyer by the property to be onerous for there
operation of law foreclosure and public may be stipulation of
sale interest
Foreclosure and Redemption Purpose
No obligation upon the Duty of the mortgage Use or temporary Consumption
purchaser to foreclose to foreclose if he possession
nor the vendor to wishes to secure a Subject Matter
redeem after the perfect title thereto, Any property Personal property
maturity of the debt and mortgagor has Ownership of the thing
right to redeem after Retained by bailor Passes to the debtor
maturity of the debt Return of the thing
and before the Exact thing loaned Equal amount of the
foreclosure. same kind and quality
Risk of Loss
Pre-emption vs. Redemption Bailor Debtor or bailee

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Time of Return principal, and is creditor or principal or


In case of urgent need Upon expiration of the usually not liable by want of notice of
and commission of any term only unless notified of the the default of the latter,
default of the principal. no matter how much
acts of ingratitude,
he may be injured
even before the thereby.
expiration of the term
Benefit of excussion or exhaustion
Return of the thing loaned The guarantor cannot be compelled to pay the
General Rule: The bailor cannot demand the creditor unless:
return of the thing loaned until after the 1. creditor has exhausted all the property of the
expiration of the period stipulated, or after the debtor;
accomplishment of the use for which the 2. creditor has resorted to all the legal
commodatum has been constituted. remedies against the debtor.

Exceptions: Benefit of excussion is not available


1. In case of urgent need 1. If the guarantor has expressly renounced it
2. If he has bound himself solidarily with the
2. Precarium
debtor
3. Bailor commits any of the act of ingratitude. 3. In case of insolvency of the debtor
4. when he has absconded, or cannot be
Requisites for the payment of interest sued within the Philippines unless he has
1. Payment of interest is agreed upon left a manager or representative
2. Stipulation to pay interest must be in writing 5. If it may be presumed that an execution on
the property of the principal debtor would
3. Rate must not be against the law or against
not result in the satisfaction of the
morals and public policy. obligation
6. If the guarantor did not set it up against the
Compounding interest creditor upon the latters demand for
General Rule: Interest due and unpaid shall not payment from him; and
earn interest. 7. If the guarantor did not point out to the
creditor available property of the debtor
within Philippine territory, sufficient to cover
Exceptions:
the amount of the debt.
1. Judicial demand
2. Compounding interest is agreed upon. Benefit of division
The obligation is divided among the co-
Guaranty vs. Suretyship guarantors if the following are present:
Guaranty Suretyship 1. there are several guarantors of only one
Liability depends upon Surety assumes debtor
an independent liability as regular party 2. they are guarantors of the same debt.
agreement to pay the to the undertaking
obligation if primary Pactum Commissorium
debtor fails to do so An agreement whereby the creditor
Collateral undertaking Original promissor automatically becomes the owner of the things
Secondarily liable Primarily liable given by way of pledge or mortgage, or dispose
Guarantor binds Surety undertakes to of them in case of non-payment.
himself to pay if the pay if the principal
principal cannot pay does not pay Requisites of pactum commissorium
Insurer of solvency of Insurer of debt 1. The property was pledged or mortgaged by
debtor way of security for the payment of the
Guarantor can avail Surety cannot avail the principal obligation
the benefit of same benefits 2. There is a stipulation for an automatic
excussion and division appropriation by the creditor of the thing
in case the creditor pledged or mortgaged in the event of non-
proceeds against him payment of the principal obligation within the
stipulated period.
Not bound to know Ordinarily, held to
every default of his know every default of
A stipulation which authorizes a transfer of
principal his principal
ownership of mortgaged property upon the
Often discharged by Will not be discharged
the mere indulgence of either by the mere default of the debtor on his obligation is
the creditor or indulgence of the considered a pactum commissorium. (Spouses

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Pen vs. Spouses Julian, GR No. 160408, Even if the plaintiff was guilty of antecedent
January 11, 2016) BERSAMIN CASE. negligence, the defendant is still liable because
he had the last clear chance of avoiding the
Judicial Foreclosure vs. Extrajudicial injury.
Foreclosure
Judicial Extrajudicial Registered-owner rule
Foreclosure Foreclosure The registered owner of the motor vehicle
Governing Rule involved in a vehicular accident could be held
Rule 68 of the ROC Act No. 3135, as liable for the consequences.
amended
Court Intervention A provision in the agreement to sell that the
There is a court No court intervention owner will be free from all liability arising from
intervention the use and operation of the vehicle sold to the
Right of Appeal buyer did not bind the third person who were
Appealable Not appealable, expected to simply rely on the data contained in
immediately executory the registration certificate of the erring bus.
Cutting Off of Rights (Metro Manila Transit Corporation vs. Cuevas,
Order of the court cut Foreclosure does not GR No. 167797, June 15, 2015) BERSAMIN
offs all rights of the cut off the rights of all CASE.
parties impleaded parties involved
Right of Redemption XIII. TRUST
There is equity There is a right of
Resulting trust vs. Constructive Trust
redemption, except on redemption.
Resulting Trust Constructive Trust
banks which provides
for a right of Intention to Create Trust
redemption Presumed or implied It is created
Period of Redemption by law from the nature irrespective of or even
of the transaction contrary to the
Starts from the finality Starts from the date of
of the judgment until registration of the intention of the parties
order of confirmation certificate of sale to promote justice,
frustrate fraud and to
Necessity of a SPA
prevent unjust
Not required Required
enrichment
Prescriptive Period
10 year prescriptive 10 year prescriptive
XII. TORTS
period shall be period shall be
counted from the time counted from the time
Requisites of Res Ipsa Loquitur
repudiation is made that the constructive
1. the accident is of a kind which ordinarily
does not occur in the absence of someones known to beneficiary trust arises
negligence Examples
2. it is caused by an instrumentality within the Illustrated in Articles Illustrated in Articles
exclusive control of the defendant 1448, 1449, 1451, 1450, 1454, 1455, and
3. the possibility of contributing conduct which 1452, and 1453. 1456.
would make the plaintiff responsible is
eliminated.

Egg-Skull or Thin Skull Rule


The tortfeasor is required to take the victim as
he finds him. A tortfeasor whose act,
superimposed upon a prior latent condition,
results in an injury may be held liable for
damages. He is liable even though the negligent
act caused an injury that is greater than what is
usually experienced by a normal person
because of a prior condition of the plaintiff.

Doctrine of Last Clear Chance

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Comparative Table of Defective Contracts


Void Voidable Rescissible Unenforceable
As to Defect
Lack of essential Vices of consent Injury or damage either Lack of form,
elements or illegality to one of the parties or authority, or capacity
to a third person of both parties not
cured by prescription
As to Effect
As a general rule, do Valid and enforceable Valid and enforceable Cannot be enforced
not produce any legal until annulled by a until annulled by a by a proper action in
effect competent court competent court court
As to Prescription of action or defense
Action for the Action for annulment or Action for rescission Corresponding action
declaration of nullity defense of annulability may prescribe for recovery, if there
does not prescribe may prescribe was total or partial
performance of
unenforceable
contract under No. 1
or 3 of Art. 1403 may
prescribe
As to Effect of Prescription
Not cured by Cured by prescription Cured by prescription Not cured by
prescription prescription except in
case of Art. 1403,
Nos. 1 or 3
As to Susceptibility of Ratification
Cannot be ratified Can be ratified Need not be ratified Can be ratified
As to Who May Assail Contracts
Contracting party and a Contracting party only Contracting party and a Contracting party
third person whose third person who is
interest is directly prejudiced or damaged
affected by the contract
As to How Contracts May be Assailed
Directly or collaterally Directly or collaterally Directly only Directly or collaterally

Domestic Adoption vs. Inter-Country Adoption


Domestic Adoption Inter-Country Adoption
Kind of Proceedings
Judicial Extra-judicial
Governing law
RA No. 8225 RA No. 8043
Definition of a child
Person below 18yo (Sec. 3[a]) Person below 15younless sooner emancipated by
law (Sec. 3[b])
Who may adopt?
1. Any Filipino citizen; Alien or Filipino citizen permanently residing
2. Any alien possessing the same qualifications abroad (Sec. 9)
for Filipino nationals;
3. The guardian with respect to the ward (Sec. 7)
Qualifications
Filipino citizen 1. At least 27yoand at least 16 years older than
1. Legal age, in possession of full civil capacity the child to be adopted, at the time of
and legal rights; application unless the adopter is the parent by
2. Of good moral character, has not been nature of the child to be adopted or the spouse
convicted of any crime involving moral of such parent;
turpitude; 2. If married, his/her spouse must jointly file for
3. Emotionally and psychologically capable of the adoption;

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caring for children; 3. Has the capacity to act and assume all rights
4. At least 16 years older than the adoptee, and responsibilities of parental authority under
except if the adopter is the biological parent of his national laws, and has undergone the
the adoptee, or is the spouse of the adoptees appropriate counseling from an accredited
parent (Sec. 7[a]) counselor in his/her country;
4. Has not been convicted of a crime involving
Alien moral turpitude;
1. Same as qualifications of Filipino citizens; 5. Is eligible to adopt under his/her national law;
2. His/her country has diplomatic relations with 6. Is in a position to provide the proper care and
the Philippines support and to give the necessary moral values
3. He/she has been living in the Philippines for at and example to all his children, including the
least 3 continuous years prior to filing of child to be adopted;
application and maintains such residence until 7. Agrees to uphold the basic rights of the child as
adoption decree is entered; embodied under Philippine laws, the UN
4. He/she has been certified by his/her Convention on the Rights of the Child, and to
diplomatic/consular office or any appropriate abide by the rules and regulations issued to
government agency that he/she has legal implement the provisions of this Act;
capacity to adopt in his/her country; 8. Comes from a country with whom the
5. His/her government allows the adoptee to enter Philippines has diplomatic relations and whose
the country as his/her adopted child. government maintains a similarly authorized
and accredited agency and that adoption is
allowed under his/her national laws; and
9. Possesses all the qualifications and none of the
disqualifications provided herein and in other
applicable Philippine laws (Sec. 9)
Who may be adopted?
1. Any person below 18 years of age who has Only a legally free child may be the subject of inter-
been administratively or judicially declared country adoption (Sec. 8)
available for adoption;
2. The legitimate son/daughter of one by the other
spouse;
3. An illegitimate son/daughter by a qualified
adopter to improve his/her status to that of
legitimacy;
4. A person of legal age if, prior to adoption, said
person has been consistently considered and
treated by the adopter/s as his/her own child
since minority;
5. A child whose adoption has been previously
rescinded; or
6. A child whose biological or adoptive parent/s
has died: provided that no proceedings shall be
initiated within 6 months from time of death of
said parents (Sec. 9)
Where to file application?
Family Court of the place where adopter resides Either with the RTC having jurisdiction over the
child, or within the ICAB, through an intermediate
agency, whether governmental or an authorized
and accredited agency, in the country of the
prospective adoptive parents (Sec. 10)

Grounds for disinheritance


Descendants Ascendants Spouse
(Art. 919, NCC) (Art. 920, NCC) (Art. 921, NCC)
Convicted of an attempt
against the life of the
testator, his or her
spouse, descendants or
ascendants.
Accused the testator of a
crime for which the law
prescribes imprisonment

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for 6 years or more, if the


accusation has been
found groundless.
By fraud, violence,
intimidation, or undue
influence causes the

testator to make a will or
to change one already
made.
A refusal without
justifiable cause to
support the parent or
ascendant who disinherits
such child or descendant.
Convicted of adultery or
concubinage with the
spouse of the testator.
Maltreatment of the
testator by word or deed,

by the child or
descendants.
He leads a dishonourable

or disgraceful life
Conviction of a crime
which carries with it a

penalty of civil
interdiction.
Loss of parental authority
for causes specified in
the Code.
Parents have abandoned
their children or induced
their daughters to live a

corrupt or immoral life, or
attempted against their
virtue.
An attempt by one of the
parents against the life of
the other, unless there
has been a reconciliation
between them.
The spouse has given
cause for legal
separation.
The spouse has given
grounds for loss of
parental authority.

Note: The enumerations are EXCLUSIVE.

Summary on rules on legitime


Children or descendants Parents or ascendants Surviving spouse
Legitimate children of the estate divided
alone (Art. 888, NCC) equally.
Legitimate children of the estate. Equal to one share of
and surviving spouse one legitimate child.
(Art. 892[2], NCC)

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One legitimate child of the estate of the estate.


and surviving spouse
(Art. 892[1], NCC)
Legitimate children Legitimate: of the
and illegitimate estate.
children (Art. 176, FC)
Illegitimate: each will get
share of one legitimate
child.
Legitimate children, Legitimate: of the A share equal to that
illegitimate children, estate. of one legitimate
and surviving spouse child.
(Arts. 895, NCC) Illegitimate: each will get
share of one legitimate
child.
One legitimate child, Legitimate: of the estate of the estate.
illegitimate children
and surviving spouse Illegitimate: each will get
(Ibid) share of one legitimate
child.
Legitimate parents/ of the estate.
ascendant alone (Art.
889, NCC)
Legitimate parents of the estate. of the estate.
and surviving spouse
(Art. 893, NCC).
Legitimate parents, of the estate. of the estate. 1/8 of the estate.
illegitimate children,
and surviving spouse
(Art, 899, NCC)
Surviving spouse GR: of the estate.
alone (Art. 900[2],
NCC) XPN: Articulo mortis
1/3 of the estate.

XPN to the xpn: If


there is cohabitation
as husband and wife
for more than 5 yrs.
of the estate.
Surviving spouse and 1/3 of the estate. 1/3 of the estate.
illegitimate children
(Art. 894, NCC)
Surviving spouse and of the estate. of the estate.
illegitimate parents
(Art. 903, NCC)
Illegitimate children of the estate
alone (Art, 901, NCC)
Illegitimate of the estate of the estate
children/descendants
and legitimate
parents/ ascendants
(Art. 896, NCC)
Illegitimate parents of the estate.
alone (Art. 903, NCC)

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Summary on division of shares in intestate succession


Other
Survivors LC/LD ILC/ILD SS LP/LA ILP B/S, N/N State
Collaterals
LC/LD
100%, - - - - - - -
alone
Proportion of 2:1
(each ILC shall
LC and ILC - - - - - -
receive share of
1 LC)
Equal to
the
LC and SS Equally - - - - - -
share of
1LC
Proportion of 2:2:1
LC, SS and
(SS: Share of 1LC - - - - -
ILC
ILC: of 1LC)
LP alone - - - 100% - - - -
Paternal
line:
divided
equally

Maternal
Legitimate
line: ,
ascendants
- - - divided - - - -
other than
equally
parents
(Note:
Rule on
Proximity
must be
observed.)
LP & ILC - - - - - -
LP & SS - - - - - -
LP, SS,
- - - - -
ILC
ILC alone - 100% - - - - - -
ILC & SS - - - - - -
SS alone - - 100% - - - - -
SS & ILP - - - - - -
SS & B/S,
- - - - - -
N/N
ILP alone - - - - 100% - - -
B/S alone
(whether
all full- - - - - 100% - -
blood or all
half-blood)
Proportion
of 2:1
(half-
B/S (some
blood
full-blood
- - - - - shall - -
and some
receive
half-blood)
share of
the share
of full-

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blood)*
100%, per
N/N alone - - - - - - -
capita
100%
(Note:
Other Rule on
- - - - - -- -
collaterals proximity
must be
observed)
State - - - - - - - 100%

Legend: LC/LD = Legitimate children/Legitimate descendants; ILC/ILD = Illegitimate children/Illegitimate


descendants; SS = Surviving Spouse; LP/LA = Legitimate Parents/Legitimate Ascendants; ILP =
Illegitimate Parents; B/S = Brothers and sisters; N/N = Nephews and Nieces.
*This division is also applicable to nephews and nieces who are full-blood and half-blood relatives of the
decedent.

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