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Persons

Concept of Juridical Capacity - it is


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.

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