the fitness to be the subject of juridical relations
Concept of Capacity to Act – it is
the power to do acts with legal effects Juridical Capacity - Inherent in every natural person - Aptitude to be the subject of juridical relations - Lost only thru death - Cannot be limited or restricted Capacity to Act - Power to execute acts with legal effects - Not inherent; is acquired - May be lost thru other means or circumstances - Can be limited or restricted by certain circumstances Elements of a Right
1. Subject 2. Object 3. Efficient cause Illustration:
A and B entered into a contract of sale
over A’s car where they agreed to buy and sell the same for Php 400,000.00. A and B are the passive and active subjects. The car is the object and the price is the efficient cause. Note:
The estate of decedent is a
person. The estate or the mass of property, rights and assets left by the decedent, instead of the heirs directly, become vested and charged with his rights and obligations which survive after his demise. Restrictions on the Capacity to Act
Art. 38. Minority, insanity or imbecility,
the state of being a deaf-mute, prodigality and civil interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated person from certain obligations, as when the latter arise from his acts or from property relations, such as easements. Other Limitations on the Capacity to Act
Art. 39. The following circumstances, among others,
modify or limit capacity to act: age, insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family relations, alienage, absence, insolvency and trusteeship. The consequences of these circumstances are governed in this Code, other codes, the Rules of Court, and in special laws. Capacity to act is not limited on account of religious belief or political opinion. A married woman, twenty-one years of age or over, is qualified for all acts of civil life, except in cases specified by law. On Age or Minority ○ The age of majority now is 18 years old per R.A. 6809. ○ Note that in some instances, the law recognizes the effects of contracts entered into by minors. ○ Also, minors who entered into contracts are not excused from the fulfillment of their obligations under the same. Example: One below 18 years old - - Cannot contract a valid marriage. If he does, the marriage is void - Cannot give valid consent to a contract. If he does, the contract is voidable On Penalty
In the commission of certain offenses,
accessory penalties are imposed by law, like perpetual or temporary disqualification to hold office, suspension from public office, curtailment of the right to vote or be voted for and the right to exercise a profession or calling, or even civil interdiction. Civil Interdiction
Civil interdiction deprives the offender during
the time of his sentence of the rights of parental authority and guardianship, either as to person or property of any ward, of marital authority, of the right to manage his property and the right to dispose of such property by any act or conveyance inter vivos (Art. 34 of the Revised Penal Code) From GMA News Online… On Mental Alienation Monomania of wealth does not imply that a person is not capable of executing a contract. The Supreme Court said that in our present knowledge of the state of mental alienation, one cannot make the conclusion that one who suffers from monomania of wealth is insane and should be presumed that his mind is deranged when he executes an onerous contract. (Standard Oil Co. vs. Codina Arenas, 19 Phils. 363) On Prodigality Acts of prodigality must show a morbid state of mind and a disposition to spend, waste, and lessen the estate to such an extent that is likely to expose the family to want of support or to deprive the compulsory heirs of their legitime. Prodigals are subject to guardianship. (Rule 93, Sec. 2, Rules of Court) On Alienage
Aliens cannot acquire land in the
Philippines. The 1987 Constitution provides that save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. (Sec. 7, Art. XII, 1987 Constitution.) But… Note:
The rule is not absolute as the
Constitution also provides that notwithstanding the provisions of Sec. 7, a natural born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law. Note:
The limitation provided by law is that if
such former natural-born citizen acquires land in Metro Manila, he can do so but not exceeding 5,000 square meters. If outside, the limit is three (3) hectares. It can be acquired for all purposes. On Relations
Example: A husband and
wife cannot donate to each other. The prohibition extends to common-law relationships.
NATURAL PERSONS
Art. 40. Birth determines
personality; but the conceived child shall be considered born for all purposes that are favorable to it, provided it be born later with the conditions specified in the following article. Art. 41. For civil purposes, the fetus is considered born if it is alive at the time it is completely delivered from the mother's womb. However, if the fetus had an intra- uterine life of less than seven months, it is not deemed born if it dies within twenty- four hours after its complete delivery from the maternal womb. Born – considered enough for legal purposes if it is alive when delivered from the mother’s womb unless –
If the fetus is less than 7 months, then it has
to live within 24 hours.
Therefore, any fetus more than 7 months
should just be born. Examples:
1. Donations made to a conceived
and unborn children may be accepted by those who would legally represent them if they are already born (Art. 742, Civil Code) 2. Every donation inter vivos, made by a person having no children or descendants, legitimate or legitimated by a subsequent marriage, or illegitimate, may be revoked or reduced as provided by the happening of any of these events: 1. If the donor, after the donation, should have legitimate or illegitimate children, even though they be posthumous x x x (Art. 760, Civil Code) 2. The preterition or omission of one, some, or all of the compulsory heirs in the direct line, whether living at the time of the execution of the will or born after the death of the testator, shall annul the institution of heir x x x (Art. 854, Civil Code) Note: A conceived child has the right to receive support from his progenitors; He may not be ignored by his parents in their testament. In Geluz vs. CA G.R. No. L-16439, July 20, 1962, it was held that the death of a person does not cover the case of an unborn fetus that is not endowed with personality which the trial court and the CA predicated. It was held that the immorality or illegality of an act does not justify an award of damage that, under the circumstances, have no factual or legal basis. Read the case of De Jesus vs. Syquia, 58 Phils. 866 Extinguishment of Civil Personality
Art. 42. Civil personality is
extinguished by death. The effect of death upon the rights and obligations of the deceased is determined by law, by contract and by will. Some Presumptions…
Art. 43. If there is a doubt, as between
two or more persons who are called to succeed each other, as to which of them died first, whoever alleges the death of one prior to the other, shall prove the same; in the absence of proof, it is presumed that they died at the same time and there shall be no transmission of rights from one to the other. Rules: ○ If both are under 15, the older is presumed to have survived; ○ If both are above the age of 60, the younger is deemed to have survived; ○ If one is under 15 and the other is above 60, the former is deemed to have survived; ○ If both be over 15 and under 60, and the sex be different, the male is deemed to have survived; if the sex be the same, the older; ○ If one be under 15 or over 60, and the other between those ages, the latter is deemed to have survived. JURIDICAL PERSONS
Art. 44. The following are juridical persons:
(1) The State and its political subdivisions; (2) Other corporations, institutions and entities for public interest or purpose, created by law; their personality begins as soon as they have been constituted according to law; (3) Corporations, partnerships and associations for private interest or purpose to which the law grants a juridical personality, separate and distinct from that of each shareholder, partner or member. Art. 45. Juridical persons mentioned in Nos. 1 and 2 of the preceding article are governed by the laws creating or recognizing them.
Private corporations are regulated by laws of
general application on the subject.
Partnerships and associations for private interest
or purpose are governed by the provisions of this Code concerning partnerships. Within the context of Philippine law, a "corporation" is treated as an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence [Sec. 2, Corporation Code]. Corporation, classes:
Stock corporations - [1] capital stock
divided into shares; and [2] authorized to distribute profits
Non-stock corporations - organized not
for profit Other Classes of Corporations
Public Corporations – those formed or organized
for the government or a portion of the State or any of its political subdivisions and which have for their purpose the general good and welfare. Examples: National Power Corporation; Philippine National Oil Company; Government Services and Insurance System Private Corporations – those formed for some private purpose, benefit, aim or end Other Classes of Corporations
Ecclesiastical or Religious Corporations –
composed exclusively of ecclesiastics organized for spiritual purposes and for administering properties held for religious ones. They are organized to secure public worship or perpetuating the right of a particular religion. Under these are the religious societies or corporation sole. Other Classes of Corporations
Corporation Sole – those that consist of one
person or individual only and who are made as bodies corporate and politic in order to give them some legal capacity and advantage, which, as natural persons, they cannot have. Under the Code, a corporation sole may be formed by the bishop or presiding elder of religious denominations Other Classes of Corporations
Close Corporations – those corporations
whose shares or stocks are held by limited number of persons like a family or a closely-knit group Open Corporations – formed to openly include outsiders or stockholders or investors Other Classes of Corporations
De Jure Corporations – incorporated in
strict or substantial adherence to the provisions of the law De Facto Corporations – they exist by virtue of an irregularity or defect in the organization although there is colorable compliance with the conditions by which corporations de jure are created Other Classes of Corporations
Domestic Corporations – those organized
and created under Philippine laws Foreign Corporations – those organized or existing under laws other than the Philippine laws and whose laws allow Filipino citizens and corporations to do business in its own country or state Other Classes of Corporations
Quasi-Public Corporations or Public Service
Corporations – they are corporations not strictly public in the sense of being organized for governmental purposes but whose operations contribute to the convenience or welfare of the general public such as telephone, gas, water and electric companies Corporation, kinds by method of creation:
○ by special law or charter
○ by being organized under the corporation code Advantages
1) Capacity to act as a single unit – Any
number of persons may unite in a single enterprise without using their names, without difficulty or inconvenience, and with the valuable right to contract, to sue and be sued, and to hold or convey property in the corporate name; Advantages
2) Limited liability – generally,
stockholders/members are not personally liable for the liabilities or debts of the corporation; Advantages
3) Continuity of existence – The rights
and obligations of a corporation are not affected by the death, incapacity or replacement of individual members, but the corporate business continues uninterrupted and unaffected as long as the corporate entity continues; Advantages
4) Feasibility of greater undertaking –
The modern corporation makes great undertakings feasible since it enables individuals to cooperate in order to finance or work on large scale enterprise; and Advantages
5) Standard method of organization,
management and finance – In a corporation, there is a general standardization of organization, management, finance, liability and remedies because of the provisions of the Corporation Code. Disadvantages
1. To have a valid and binding act,
formal proceedings, such as board meetings, are required; Disadvantages
2. Business transactions are limited
to its incorporation rights; and Disadvantages
3) Corporations are subject to
governmental regulations, supervision and control including the submission of reportorial requirements not otherwise imposed in other business form. Art. 46. Juridical persons may acquire and possess property of all kinds, as well as incur obligations and bring civil or criminal actions, in conformity with the laws and regulations of their organization. Art. 47. Upon the dissolution of corporations, institutions and other entities for public interest or purpose mentioned in No. 2 of Article 44, their property and other assets shall be disposed of in pursuance of law or the charter creating them. If nothing has been specified on this point, the property and other assets shall be applied to similar purposes for the benefit of the region, province, city or municipality which during the existence of the institution derived the principal benefits from the same. CITIZENSHIP and DOMICILE CITIZENSHIP - the status of being a citizen or of owing a certain allegiance to a certain state for the privilege of being under its protection. It is membership in a political community.
NATIONALITY - membership in an ethnic,
racial or cultural group.
CITIZENSHIP AND DOMICILE
Art. 48. The following are citizens of the Philippines:
(1) Those who were citizens of the Philippines at the time of the adoption of the Constitution of the Philippines; (2) Those born in the Philippines of foreign parents who, before the adoption of said Constitution, had been elected to public office in the Philippines; (3) Those whose fathers are citizens of the Philippines; (4) Those whose mothers are citizens of the Philippines and, upon reaching the age of majority, elect Philippine citizenship; (5) Those who are naturalized in accordance with law. (Modified by Art. IV of the 1987 Constitution Art. 48 is deemed modified by Art. IV of the 1987 Constitution, viz:
Sec. 1. The following are citizens of the
Philippines: (1) those who are citizens of the Philippines at the time of the adoption of this Constitution; (2) Those whose fathers and mothers are citizens of the Philippines; (3) Those who are born before January 17, 1973 of Filipino mothers, who elect Philippine citizenship upon reaching the age of majority; and (4) Those who are naturalized in accordance with law. Section 2. Natural-born citizens are those who are citizens of the Philippines from birth without having to perform any act to acquire or perfect their Philippine citizenship. Those who elect Philippine citizenship in accordance with paragraph (3), Section 1 hereof shall be deemed natural-born citizens. Section 3. Philippine citizenship may be lost or reacquired in the manner provided by law.
Section 4. Citizens of the Philippines who marry
aliens shall retain their citizenship, unless by their act or omission, they are deemed, under the law, to have renounced it.
Section 5. Dual allegiance of citizens is inimical
to the national interest and shall be dealt with by law. Three Kinds of Citizens: 1. Natural born citizens - citizens right from the moment of birth 2. Naturalized citizens - citizens who are made so through naturalization 3. Citizens by election - those who, having been born of Filipino mothers, elect Filipino citizenship within a reasonable time after reaching the age of majority (See the Burca case, L-23252, Jan. 30, 1967) The Philippines has continued to adopt the jus sanguinis rule. The rule of jus soli has never been extended to the Philippines (Sia Reyes vs. Deportation Board, 122 SCRA 478, overturning the statement made in the case of Roa vs. Collector of Customs, 3 Phils. 313) Domicile means the permanent home, and it connotes the place to which, whenever absent for business or pleasure, no matter how long, a person intends to return (Ong Huan Tin vs. Republic, 19 SCRA 966) Art. 49. Naturalization and the loss and reacquisition of citizenship of the Philippines are governed by special laws. An application for a foreign passport is a renunciation of Philippine citizenship (Yu vs. Defensor-Santiago, 169 SCRA 364; Labo Jr. vs. Commission on Elections, 176 SCRA 1) Art. 50. For the exercise of civil rights and the fulfillment of civil obligations, the domicile of natural persons is the place of their habitual residence. Imelda R. Marcos vs. COMELEC, et. al. 248 SCRA 300 …an individual does not lose his domicile even if he has lived and maintained residences in different places. Residence, it bears repeating, implies a factual relationship to a given place for various purposes. The absence from legal residence or domicile to pursue a profession, to study or to do other things of temporary or semi-permanent nature does not constitute loss of residence. Note:
As enunciated in the Imelda Marcos vs.
COMELEC case, domicile once acquired is retained until a new one is gained. Inspite of her having been born in Manila, Tacloban, Leyte was her domicile of origin by operation of law. This was not established only when she reached the age of 18 years old, but when her father brought his family back to Leyte. Con’t….
To successfully effect a change of
domicile, one must demonstrate: (1) an actual removal or an actual change of domicile; (2) a bona fide intention of abandoning the former place of residence and establishing a new one; (3) acts which correspond with the purpose. Art. 51. When the law creating or recognizing them, or any other provision does not fix the domicile of juridical persons, the same shall be understood to be the place where their legal representation is established or where they exercise their principal functions. Quiz: 1. Distinguish JURIDICAL CAPACITY from CAPACITY TO ACT. 2. List at least 3 restrictions on the CAPACITY TO ACT. 3. Give at least 3 rights of a juridical person. 4. Distinguish DOMICILE from RESIDENCE.