CI

VILLAW
BAR201
8

i
.per
sons

1.Ret r
oactivit
yofLaws,NCCAr t.4Lawss hallhavenor et r oact iveef fect ,unless
thecontraryispr ovi
ded.
Excepti
onst oRul e:
(
1)Whent helawi t
sel fsoexpr essl ypr ovides .--Thi shast woexcept ions:
(a)whent her etr oact i
vityofapenalst atut ewi l
lmakei tanex
postf acto l
aw,( “Noexpostf actol aw orbi llofat taindershal l
beenact ed.”Sec.22, Ar ti
cleIII
,1 987Const i
tution)and
(b)When t he r et r
oact ive ef fectoft he st atute wi llconst itute
i
mpai rmentoft he obl i
gat i
on ofcont ract .( “Sec.1 0. No l aw
i
mpai ri
ngt heobl igationofcont ractsshal lbepassed. ”Sec.1 0,
Arti
cleIII
,1987Const i
tution)
(
2)I ncaseofPenalst at utes.--Penall awsshal lhaver etroactiveef fect
i
nsof aras theyfavort heaccusedwhoi snotahabi t
ual cri
mi nal,even
thoughatt he time oft he enact mentofsuch l aws f i
nal
sentencehasal readybeen render ed.( Art.22,RPC)
(
3)I ncaseofRemedi alst atutes .--Remedi alst at utesar et hosewhi ch
refertot he met hodofenf orci ngr ightsorofobt ainingr edressoft heir
i
nvasi on.
(
4)I ncaseofCur ativest atutes .
- -Cur ativest at utesar et hosewhi ch
under taketo cur eer rorsandi rregulariti
es .
(
5)I ncaseofl awsi nterpret i
ng ot hers .
--Thesear el awswhi char e
i
nt endedt o clari
fydoubt sori nt erpretanexi st i
ngl aw.
(
6)I ncaseofl awscr eat i
ngnew r ights.-- pr ovi dedt hati tdoesnot
prejudice anotheracqui redr ightoft hesameor i
gin.
(
7)Ifthel aw isofanemer gencymeasur eandaut hor izedbyt hepol ice
powerof theSt ate.
(
8) Taxl aws–whi chi mposet axesmaybegi venr etroactiveef fect.
Liabil
it
yf or taxes i si nci dent alt o soci al exi st ence.( Lorenzo vs.
Posadas,64Phi l353)

2.Terr
it
ori
ali
tyPri
nci
ple–Operat
ionofl
awi sco-
ext
ensi
vewi
tht
err
it
ori
al
soverei
gnty(Art
.14,NCC),parti
cul
arl
yincaseofpenall
aws,andlawsof
publi
csecuri
tyandsafet
y.

Terr
it
ori
ali
tyandGeneral
ityPri
nci
ple-
Art.14.Penall
awsandt hoseofpubli
csecurit
yandsaf etyshall
be obl i
gatoryupon allwho l
ive orsoj
ournin Phil
i
ppine ter
ri
tory,
subj
ectto t he pri
nci
ples ofpubli
cinter
nati
onallaw and tot reaty

Ci
vi
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 st
ipul
ati
ons.

There ar
e 2 pr i
nci
ples i
nvol
ved here:Terri
tor
ial
i
ty and Gener al
it
y.
Ter
r i
tor
ial
i
ty meansthatourcr i
minall
awsar eenforceableonly
wit
hinPhili
ppi
neterr
it
ory. Excepti
ontotheter
ri
tor
ial
it
ypr i
ncipl
eis
Art
icl
e2ofRPC.

Generali
tywhichmeanst hatwithi
nt hePhili
ppineterr
itor
y,ourcri
minal
l
aws wi l
lapplytoanyone,cit
izenoral ien.Ourpenall awsequal lyappl
yto
al
ienswho l i
ve orsojour
nint he Phil
i
ppi nesbased on t he pri
nci
plethat
duringthei
rstay, theyoweal legi
ancet ot hecountrythought emporar
yi n
nature.Thesamer ule isembodi edinAr ti
cle2oftheRPC.

UNI
VERSALI
TYANDTERRI
TORI
ALI
TYPRI
NCI
PLE:

Universali
ty:Penallawsand those ofgeneralwelfar
e and t
hose of
public securi
ty ar
e bindi
ng on al
lwho r eside and soj
our
ni nthe
Phi
lippineterr
it
ory.(Art
.14)

Prohi
bit
it
velawsconcerningpersons,thei
ractsandtheirpropert
y,and
thosei
ntendedtopromot epubli
cor derandgoodmor als
,shallnotbe
madenugat orybyanyf orei
gnlawsorj udgmentsnorbyanact ionor
agreementmadeinaf oreigncount
ry.(Art
.17,p.3)

Basi
softher
uleist
her i
ghtoft
heSt
atet
opr
otecti
tsel
fandi
tspol
i
cies
i
nordert
oachievei
tsends.

“Art
.14.Penallawsandthoseofpublicsecuri
tyandsaf etyshallbe
obli
gat
oryuponallwholi
veorsojourni
nPhil
ippineter
ri
tory,subj
ectto
thepri
nci
plesofpubl
i
cint
ernat
ional
lawandtotreat
ysti
pulati
ons”

Thus,anyof fensecommit
tedbyanyperson( Fi
li
pinoorali
en)wit
hinthe
terri
toryofthecountr
yisanoffenseagainsttheState.TheStatehas,
therefore,t
hepowert opr
osecuteandpunisht heoff
ender,nati
onalof
foreigner.

Except
ions:
(1
.) Those, who under principl
es of publ
i
ci nt
ernallaw enjoy
di
plomati
ci mmuni
ti
es( f
rom suit)such asheadsofst at
es,for
eign
ambassadorsordi
plomat
sprovidedtheydonottr i
avelncogni
to.

NOTE:
Consul
sdonothavei
mmuni
ti
es

(
2.) Those expr
essl
y excl
uded f
rom ourj
uri
sdi
cti
on due t
otr
eat
y

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 st
ipul
ati
ons

EXTRATERRI
TORI
ALJURI
SDI
CTI
ON:

“
Thejur
idicalpoweroftheStateextendi
ngbeyondthephysi
cal
t
h
l
i
mit
sofapart
icularst
ateorcount
ry.
”(Bl
acksLawDicti
onar
y.,6 Ed.
)

WheretheSt
atehasjuri
sdi
cti
onoverspeci
fi
ccr
imesal
thought
he
samewascommit
tedout
sideit
sjur
isdi
cti
on.

“Art.2( RPC)Appl i
cati
onofi t
spr ovi
sions.–Exceptaspr ovided
i
nt het r
eatiesandl awsofpr efer enti
alappli
cation,thepr ovi
sionsoft hi
s
Code shal lbe enf orced notonl ywi thinthe Phi l
ippine Ar chi
pelago,
i
ncludingi t
sat mospher e,it
si nteriorwatersandmar i
ti
mezone,butal so
outsideitsjuri
sdicti
on,agai nstt hosewho:
1. Shouldcommi tanof fensewhi leonaPhi l
ippineshipor
ai
rship;
2. Shoul df orgeorcount erf
eitanycoi norcur rencynot eifthe
Phil
ippine I slands or obl igat i
ons and secur it
ies i ssued by t he
Gover nmentoft hePhi l
ippineI slands;
3. Shoul dbel iabl
ef oract sconnect edwi t
ht hei ntr
oduct i
on
i
nto t heseI slandsoft heobl igat i
onsandsecur it
iesment ionedint he
preceding number ;
4. Whi l
ebei ngpubl icof fi
cersorempl oyees,shoul dcommi t
an of fensei ntheexer ci
seoft heirfuncti
ons;or

5. Shoul
dcommitanyoft
hecr
imesagai
nstnat
ionalsecur
it
y
andt
he l
awofnati
ons
,xxx

3. LexRei
Sit
ae

Art
.16.Realproper
tyaswel
lasper
sonalpr
oper
tyi
ssubj
ectt
othel
aw oft
he
count
ry whereiti
ssit
uat
ed.

However ,int
estat
eandt estament
arysuccessi
ons,bot hwit
hr espectt ot he
orderof successionandt otheamountofsuccessional
rightsandtot heintr
insic
vali
dit
yof t estamentarypr ovisi
ons,shal
lberegulat
edbyt henati
onall aw oft he
personwhose successioni sunderconsi
derati
on,whatevermaybet henat ure
ofthepropertyand r
egar dlessofthecountrywherei
nsai dpr opertymaybe
found.

ONSTO LEXREISI
EXCEPTI TAE:

(
1) I
n case ofsuccessi
onalr
ight
stor
ealpr
oper
ty,t
he l
aw t
hat

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 governsisthenati
onall
aw ofthedecedent(Art
.16,par
.2Civi
lCode)
;
aswel lascapaci
tytosucceed(ininher
it
ance)i
salsogover
nedbythe
nat
ional l
awofthedecedent(Art
.1039,CC);

(
2) Cont r
actsi nvol
vi
ngrealpropert
ybutwhi chdonotdealwi
tht
he
t
it
let
osuchr ealpropert
yshallnotnecessar
il
ybegovernedbythel
ex
r
eisi
tae.Thepr operlawoft
hecont r
actgoverns

(3) I ncontr
actswherer
ealpr opert
yisgi venbywayofsecur i
ty,the
pri
ncipalcont
ractofi.
eloan isgover ned byt he pr
operl aw oft he
contr
act;t
heaccessor
ycontr
actofmor tgageisgoverned,however ,by
thel
awoft hestat
ewheret
her ealpropertymor t
gagedissit
uated.

4. Formal i
ti
es(LEXLOCICELEBRATI ONIS)
–Thef or
msandsol emnit
iesofcont
ract
s,wil
l
sandot herpubli
c
i
nstrumentsaregovernedbyt hel
awofthecountryi
nwhi chtheyar
e
executed.(Ar
t.17,par
.1)Referst
otheformalorext
ri
nsicval
i
dity

5. RenvoiDoct
ri
ne–Wher eourlaw provi
desthatafor
eignl
aw shoul
dbe
appl
i
ed, suchappli
cat
iont
akesplacedespit
eanyprovi
sionoft
hatfor
eign
l
awthat anot
herlawshoul
dapplyincaseofconfl
ict
.

6. Nati
onalit
yPr i
ncipl
e
“Art
.15.Lawsr el
ati
ng tofamilyri
ghtsand duti
es,ort
othe st
atus,
condit
ionandl egalcapaci
tyofpersonsar
ebindingupont
heci
ti
zensof
thePhili
ppineseventhoughlivi
ngabroad.
”

I
nt hePhi l
i
ppines,wef ol
l
ow thenational
it
yorci
tizenshipt
heory,thatis,
t
henat ionall
aw oftheper soni sappli
edinmattersinvol
vingper sonal
r
elati
ons. Int heU.S,andGr eatBri
tai
n,thedomi ci
li
aryorterr
it
or i
ali
ty
t
heor yisf ol
l
owed such t hat
,t he l
aw ofthe domi ci
lei
sappl i
ed on
mat t
ersinvol
vingpersonalrel
ati
ons.

i
i
. FAMI
LYCODE

VALIDI AGE–i
TYOFMARRI ndeter
mini
ngt
heval
i
dit
yofmar r
iage,i
tist
obe
t
estedbyt
hel
awi
nforceatt
het
imethemar
ri
agewascont
ract
ed.

1. REQUISITESFORVALI DITYOFMARRI AGE:

a.Essenti
alrequisi
tes:
i. Legalcapacityofthecontr
act
ingpart
ieswhomustbeamal
eanda
female;and
 Legal capacit
ydef i
ned:maleorf
emaleoft
heageof18year
sor

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 upwards notunderany ofthe i
mpediment
si n Ar
ti
cl
es 37
(i
ncest
uousmar r
iages)
,38voi
dmarri
agesbyreasonofpubli
c
poli
cy)
.(Ar
t.5)

 “t
ogr antthechangesi nnameandsexsoughtbypet i
ti
onerwil
l
substant
ial
lyreconfigureandgr eat
lyalt
erthelawsonmar r
iage
andf ami
lyrelat
ions–i twil
lal
lowtheunionofamanwi t
hanother
manwhohasunder gonesexr eassi
gnment,amale-t
o-female
postoperati
vetranssexual Si
.( l
veri
ovs.Republi
c,537SCRA373)
Suchamar ri
ageisvoi d.

i
i
.Consentfreel
ygivenint
hepresenceoft
hesolemni
zi
ngoffi
cer(Ar
t.
2,FC)– consentofthecontr
acti
ngpart
iesandnotthei
rparent
s
shoul
dthey18yearsol
dandup.

b.For
mal
requi
si
tes:(
Art
.3)

1
.Aut
hor
it
yoft
hesol
emni
zi
ngof
fi
cer

Theaut
hori
tyoftheof
fi
cerorclergymanshownt ohaveperf
ormeda
marr
iage cer emonywil
lbepresumedintheabsenceofanyshowi
ngtot
he
cont
rary. (Al
cantar
avs.Al
cantar
a,531SCRA446)

Aut
hor
izedsol
emni
zi
ngof
fi
cer
sar
e:

1
.1.i
ncumbentmemberoft hej udici
ar ywit
hint
hecourt’ ;
1
.2.anypr iest
,r abbi,i mam,ormi nisterofanychurchorr el
i
gious
sectdul y aut horized by hi s church orrel
igi
ous sectand
regist
eredwi ththeci vi
lregist
rargener al
,act
ingwi thi
nthelimit
s
ofthewr it
tenaut hor i
tygrantedhi m;
1
.3.anyshi pcapt ainorai r
planechi efonlywhent hemar ri
ageisin
art
iculomor ti
s;
1
.4.anymi li
tar
ycommanderofauni ttowhichachaplainisassi
gned,
i
nt heabsenceoft helatter,duringmi l
i
tar
yoperationwher ethe
mar ri
ageisinar ti
cul omor ti
s;
1
.5.anyconsul -gener al,consulorvi ceconsulwheret hemar ri
ageis
abroadbet weenFi li
pinociti
zens;
1
.6.mayor s(Local Gover nmentCode)

Absenceofauthor
it
yofthesolemnizi
ngof f
icer-themar r
iageis
voi
d,however,whereeit
herorbot hoft hecont ract
ingpart
ies
bel
ievi
ngi
ngoodf ait
hthatthesolemni
zingof f
icerhadthelegal
aut
hori
tyt
odoso,themar r
iageisval
id(Art
.35,p.2)

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 2. A valid mar ri
age li
cense exceptwher e no mar riage li
cense i
s
necessar y:
a. marr i
agein arti
cul
omor ti
s(art
.27)
b.r esi
denceofei t
herorbothpar t
iesar einfarareasandnomeans
oftransportat
iontoappearbefor ethelocalcivi
lregistr
ar;(Ar
t.28)
c. marr i
age among Musl ims oramong member s oft he ethni
c
cult
ural communi ti
es, provided t hey ar e sol emnized in
accordancewi t
hthei
rcustoms ,ri
tes,practi
ces;(Art.33)
d.co- habitat
ion foratl eastfive year s and wi thoutany l egal
i
mpedi ment stomar r
yeachot her;(Art.34)

3. Amar r
iagecer emonywhi chtakespl
acewiththeappearanceof
t
hecont ract
ing part
iesbeforethesol
emnizi
ng of
fi
cerand thei
r
personaldecl ar
ati
ont hatt
heytakeeachotherashusband and
wif
ei nthepresenceofnotl esst
hantwowi
tnessofl
egalage.

Not
et hat“Noprescri
bedf orm orreligi
ousrit
eforthesolemnizati
onof
t
hemar ri
agei srequi
red. Itshallbenecessar yhowever ,contr
acting
par
ti
estoappearper sonall
ybeforet hesolemnizi
ngoffi
ceranddecl are
i
nthepr esenceofnotl essthant wowi tnessesoflegalagethatt hey
t
akeeachot herashusbandandwi fe.”(
Art.6)

Ef
fectofabsenceordef
ecti
nanyoft
her
equi
si
tes:

a.Theabsenceofanyoft
heessent
ialf
orf
ormalr
equi
si
tesshal
lrendert
he
marr
iagevoi
d(Ar
t.4)

Note:CaseofNavar r
ovs.Domagtoy,July19,1996wheret hecourthel
d
that“wherej udgesolemnizi
ngamar riageoutsi
dehiscourt’ ,
thereisar esult
antirr
egul
ari
tyi
nthef ormalrequi
si
te,whi
ch,whileitmay
notaf f
ectthevalidi
tyoft
hemarri
age,maysubj ectt
heoffi
ciat
ingoff
ici
alt
o
admi ni
str
ati
vel i
abil
i
ty.
”

b.A defectin any ofthe essent

ialr
equi
si
tes shal
lrendert
he mar
ri
age
voi
dable;(
Art
.4,par.2)

c.Anirr
egular
it
yi nthefor
malrequi sit
esshallnotaf
fectthevali
dit
yofthe
marr
iagebutt hepart
yorpar t
iesr esponsi
blefort
hei r
regul
ari
tyshal
lbe
ci
vi
ll
y,cr
iminal
lyandadmini
str
ativelyli
abl
e.(
Ar t
.4par.3)

VOI
DMARRIAGES:
1.Voi
dmar
ri
agesunderAr
t.35

1
.1. t
hosecont
ract
edbyanypar
tybel
ow1
8year
sofage

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 1
.2. Those solemnized by any per
son notlegal
l
y author
ized t
o
per
for
m mar r
iages
1
.3. Thosesolemnizedwithoutal
i
cense
1
.4. Thosebigamousorpol ygamousmarri
agesnotfal
l
ingunderArt.
41

Ar
ti
cl
e41r
efer
stoaval
i
dbi
gamousmar
ri
age

1
.5. Thosecontr
actedthroughmi st
akeofonecont
ract
ingpart
yast
o
t
heident
it
yoftheother;and
1
.6. Thosesubsequentmar r
iagesthatar
evoi
dunderArt.53

2. Psychol ogi
calIncapacityofoneorbot hoft hecontr
act
ingpar
ti
esto
per
for
m his orheressenti
almarit
alobli
gat
ions(Art
.36)
3. I ncest
uousmar ri
ages ,whetherther
elat
ionshi
pbetweent
hepart
iesbe
l
egi
ti
mat eori
ll
egit
imate(Art.37)

3.
1 Bet
weenascendant
sanddescendant
sofanydegree;and
3.
2 Bet
weenbrot
hersandsi
ster
s,whet
heroft
heful
lorhalf-
blood

4. Mar
ri
agesdecl
aredvoi
dbyr
easonofpubl
i
cpol
i
cy(
Art
.38)

4.
1.Bet ween col l
ater al blood r elati
ves, whet her legit
imat
e or
i
ll
egit
imate,up t othef ourt
hcivildegree;
4.
2.Bet weenst ep-parent sandst ep-chil
dren
4.
3.Bet weenpar ents-in- l
awandchi l
dren-in-l
aw
4.
4.Bet weentheadopt i
ngpar entandt headopt edchil
d;
4.
5.Bet weent hesur vivingspouseoft headopt i
ngpar entsandt he
adoptedchil
d;
4.
6.Bet ween the sur viving spouse oft he adopt ed chil
d and the
adopter;
4.
7.Bet weenanadopt edchildandal egit
imatechildoftheadopter
4.
8.Bet weentheadopt edchildr
enoft hesameadopt er
4.
9.Bet weenpar ti
eswher eone,wi t
ht heintent
iontomar rytheother
,
ki
ll
edthatotherperson’

5. Mar r
iagesunderArt
.40
“The absol
ute nul
li
ty ofa pr
evi
ous mar
ri
age may be i
nvoked f
or
purposesofremarri
ageonthebasi
sofafi
nalj
udgmentdecl
ari
ngsuch
previ
ousmar ri
agevoid.

6. Marr
iagesunderAr
t.44
“
Ifbothspousesoft hesubsequentmar riageactedi
nbadf ai
th,sai
d
marr
iage shal
lbe void ab i
nit
io and al
ldonati
onsbyreason ofthe

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 marr
iageandtest
amentarydisposi
ti
onsmadebyonei
nfavoroft
he
ot
herarer
evokedbyoperati
onoflaw.”

7. Fail
uretocomplywi t
hther ecordingrequir
ements underArt.52(Art
.
53)
Eit
heroftheformerspousesmaymar r
yagai naf
tercomplyi
ngwiththe
requi
rementsinArt
.52;otherwise,thesubsequentmarr
iageisvoi
d.

“Thejudgmentofannul mentorofabsolutenul
l
ityofthemar ri
age,t
he
part
it
ion and di
str
ibuti
on ofthe pr
operti
esoft he spouses,and t
he
deli
veryofthechil
dren’
appropri
ateci
vil
regist
ryandregi
stri
esofproper
ty.(Art.52)

VOI
DABLEMARRI
AGES(
Art
.45)

KI
NDS:
1.Nopar ent
alconsentf oracont r
act i
ngpar tywhoi s18year sofageorover
butbelow21year sofage;
2.Unsoundmi nd
3.Consentwasobt ainedthroughf raud
3.
1 Non- disclosureofapr eviousconvi ct
ionbyf i
nalj
udgmentofa
cri
mei nvol vi
ngmor al
turpitude
3.
2 Conceal mentbyt he wi f
e oft he factthatatt he t
ime ofthe
mar r
iage,shewaspr egnantbyamanot herthanherhusband
3.
3 Conceal mentofsexual lytransmissibl
edisease,regardl
essofit
s
nature,existi
ngatt hetimeoft hemar r
iage;or
3.
4 Conceal ment of dr ug addi ction, habitual al
coholi
sm, or
homosexual i
tyorlesbianism exi
stingatthetimeofthemar ri
age

No othermi sr
epresentat
ion ordeceitasto character
,heal
th,
rank,for
tuneorchast i
tyshallconst
it
utesuchfraudaswi l
lgi
ve
groundsforacti
onfortheannulmentofmar r
iage.(
Art.46)

4. Consentwasobt ai
nedbyf or
ce,i
nti
midat
ion,orunduei
nfl
uence
5. Physi
cali ncapabil
it
yt o consummat ethe marri
age which appear
s
i
ncurable
6. Aff
li
cti
onwi thasexuallytr
ansmissi
bledi
seasefoundtobeseriousand
appearstobei ncurabl
e

MARRI
AGEUNDERARTI
CLE26

Al
lmarri
agessol
emni
zedoutsi
deofthePhili
ppines,i
naccor
dancewit
h
t
hel
aws i
nf or
ceinthecount
rywheret heyar esolemni
zed,and val
i
d
t
her
eassuch,shal
l al
sobevali
dint
hePhi l
i
ppinesexcept
:

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 7.thosecontr
actedbyanypar t
ybel ow18yearsofage
8.Thosebigamousorpol ygamousmar ri
agesnotfal
l
ingunderArt
.41
9.Those contr
acted thr
ough mi st
ake ofone contr
acti
ng par
tyastot
he
ident
it
yoftheother;and
10.
Thosesubsequentmar ri
agesthatarevoi
dunderAr t
.53

Ar
t.26,2ndpar
.:

“Where a mar
ri
age between A Fi
l
ipi
no cit
izen and a f
oreigneri
s vali
dly
cel
ebrat
edandadi vorceisther
eaft
erval
idl
yobt ainedabroadbyt heali
en
spous
ecapacit
ati
nghim orhertoremarr
y,theFi l
ipi
nospouseshallli
kewi
se
havecapaci
tyt
oremarry”

DONATI
ONSBYREASONOFMARRI AGE–thosemadebeforet
hecel
ebrat
ionof
t
hemarri
age, inconsi
der
ati
onoft
hesame,andi
nfavororoneorbot
hoft he
f
utur
espouses(
Art
.82)

Limit
ati
on–I fthefut
urespousesagreeuponar egimeot herthantheACP,
theycannotdonatetoeachotheri
nthei
rmarr
iagesettlementsmor ethan1
/5
ofthei
rpresentpr
opert
y.Anyexcessshal
lbeconsideredvoid.(
Ar t
.84)

REVOCATIONOFDONATI ONBYREASONOFMARRI AGE:( Ar

t.86)DPNmay
ber
evoke byt hedonori nthefoll
owingcases:
1.Ifthemar ri
agei snotcel ebrated orjudi
cial
l
ydecl ared voi d ani ni
ti
o
exceptdonat i
onsmadei nthemar ri
agesettlements,whi chi nt hese
casesar econsi der
edvoi dift
hemar r
iagedoesnott akeplace.
2.Whent hemar r
iaget akesplacewi t
houttheconsentoft hepar entsor
guardian,asr equir
edbyl aw;
3.Whent hemar ri
agei sannull
ed,andt hedoneeact edinbadf ai
th;
4.Uponl egal separat
ion,thedoneebei ngtheguiltyspouse
5.Ifi
tiswi t
har esolut
or ycondit
ionandt hecondi
tioniscompl i
edwi th
6.Whent hedoneehascommi t
tedanactofi ngrati
tudeaspr ovidedi nthe
provisi
onsoft heCi vil
Codeondonat i
onsingener al
.

PROPERTYRELATI ONS
Ki
nds:
b.AbsoluteCommuni tyPropert
y
c.Conjugal Par
tner
shipofGains
d.Compl eteSeparati
onofPropert
y
e.Anyot herregi
me

MARRI
AGESETTLEMENT;For
m andModi
fi
cat
ion(
Art
.76and77)
a.Mustbeinwri
ti
ng

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 b.Signedbytheparti
es
c.Executedbefor
ethemar ri
age
d. Anysubsequentmodif
icati
onmustbemadebef
oret
hecel
ebr
ati
onoft
he
marr
iage

ABSOLUTECOMMUNITYOFPROPERTY
WhenACPgover
nsproper
tyr
egi
meoft
hespouses:

1.whent
hespouseshaveent er
edint
omar ri
agewithouthavingchosen
any pr
opert
yregi me;
2.whent
hepropert
yr egi
mechoseni
svoid
3.whent
hechooset heACPtogovernthei
rproper
tyrelat
ionsdur
ingthe
marri
age

*
Whatconst
it
utesCommuni
tyPr
oper
ty

Consi
sts ofal
lthe pr
oper
ty owned by the spouses att
he t
ime oft
he
cel
ebrat
ionoft
hemarri
ageoracqui
redther
eaft
er.(Art
.91)

Presumpt
ionofpr
opert
yacquir
eddur
ingt
hemar
ri
age,i
sthati
tbel
ongst
othe
communit
ypropert
y(Art
.93)

Winni
ngsi
sgameofchance,bet
ti
ngoranyot herki
ndofgambl
i
ngbutnot
l
osseswhi
chshal
lbebor
nebyt
heloser
.(Ar
t.95)

*
Excl
udedf
rom ACP

1.Pr opert
y acqui
red duri
ng the marri
age by gr
atui
tousti
tl
e by ei
ther
spouse,and t he f
rui
ts as wellas t
he income t
hereof,ifany,unl
ess
expressl
ypr ovi
dedbyt hedonor ,t
est
atororgrant
orthattheyshal
lform
partoftheACP

2.Pr
opertyforpersonalandexcl
usi
veuseofeitherspouse.However
,
j
ewel
ryshal
lfor
m partofthecommuni
typr
oper
ty;

3.Property acqui
red bef
oret
he mar
ri
age by ei
therspouse who has
l
egi
ti
matedescendant sbyafor
mermarri
age,andt
hef r
uit
saswellasthe
i
ncomet hereof;

CONJUGALPARTNERSHI
POFGAI
NS

Concept:The husband and wi

fe pl
ace in a common fund t
he proceeds,
pr
oducts,f
rui
tsandi ncomefr
om thei
rseparat
epr oper
ti
esandthoseacquir
ed
byeitherorbot h spousest
hrough thei
reffort
sorbychance,and upon

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 di
ssolut
ionoft hemar r
iageorofthepar t
nership,t
henetgainsorbenef
it
s
obt
ainedbyei therorbothspousesshallbedi vi
dedequal
lybet
weenthem,
unl
essot her
wiseagreedinthemarr
iagesett
lement.(
Art
.105)

- Whatf
ormsPar
tofCPG–

1.Allpropert
y acquir
ed dur
ing t
he marri
age,whetherthe acqui
sit
ion
appearstohavebeenmade,cont r
act
edorr egi
ster
edinthenameofone
orbothspouses,i
spresumedtobeconjugalunl
essthecont
rar
yisproved.
(Ar
t.116)

2.Ar
t.1
17

1
.t hoseacqui
redbyoneroust
it
leddur
ingt
hemar
ri
ageatt
heexpense
ofthecommonf und;

2.Thoseobtainedf
rom thel
abor
,indust
ry,wor
korpr
ofessi
onofei
ther
orbothofthespouses;

3.The fr
uit
s,natural
,indust
ri
al
,orcivildue orrecei
ved duri
ng the
marri
agef rom t
hecommonpr oper
ty,aswellasthenetfr
uit
sfrom
theexcl
usiveproper
tyofeachspouse;

4.Theshareofeitherspousei
nthehi ddentreasur
ewhicht helaw
awardstothefi
nderorowneroftheproper
tywher et
hetreasur
eis
found;
5.Thoseacquir
edthr
oughoccupat
ionsuchasfi
shingorhunt
ing;

6.Li
vestockexi
sti
ngupont
hedissol
uti
onofthepart
nershi
pinexcess
ofthe numberofeach ki
nd broughtt
ot he marr
iage by ei
ther
spouse;and

7.Those which ar
e acquired by chance,such as wi
nni
ngs f
rom
gamblingorbett
ing.Lossesshal
lbebor neexcl
usi
vel
ybythel
oser
-
spouse.

3. Wheneveranamountorcr editpayablewi
thi
naper i
odoft i
mebelongs
to one ofthe spouses,the sumswhi ch maybe col l
ected dur
ing t
he
mar ri
age i
n part
ialpaymentsori nstal
lment
son t he pr
inci
palshallbe
exclusi
vepropert
yofthespouse.However ,i
nterestfal
l
ingduedur i
ngthe
mar ri
ageonthepr i
nci
palshal
lbel
ongt otheconjugalpart
nershi
p.(Art
.119)

4.Art.120Ownershi
pofi
mprovement
smadeonthesepar
ateproper
tyof
thespousesatt
heexpenseofthepar
tner
shi
poref
for
tsofeit
herorboth

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 spousesdepending oncostofimprovementmadebyt heCP and the
resul
ti
ngi
ncreaseinvalue. I
fiti
smor et
hantheval
ueofthepropert
yat
theti
meofimprovement ,t
heenti
repr
opert
yofonespouseshal
lbel
ongto
theCPG.(Ar
t.120)

- Excl
udedf
rom t
heCPG

a.Thatwhichi
sbroughttothemar r
iageashisorherown;
b.Thatwhicheachacquiresduri
ngthemar r
iagebygrat
uit
oustit
le;
c.Thatwhi ch i
sacquired byr i
ghtofr edempti
on,bybar terorby
exchangewith propertybel
ongingtoonlyoneofthespouses;and
d.Thatwhichispurchasedwi t
hexclusi
vemoneyoft hewi f
eoroft he
hus
band ( Ar
t.109)

- Di
ssol
uti
onoft
heCPG;samegr
oundsasi
ntheACP(
Art
.126)

COMPLETESEPARATI
ONOFPROPERTY

PROPERTYREGI
MEORUNI
ONSWI
THOUTMARRI
AGE

Art
.147.Whenamanandawomanwhoar ecapaci
tatedtomarryeachother
,
l
iveexcl
usivel
ywitheachotherashusbandandwi f
e,wi t
houtthebenef
itor
marri
ageorunderavoi dmarr
iage,t
hei
rwagesandsal ar
iesshal
lbeownedby
t
hem inequalsharesandtheproper
tyacqui
red bybothofthem thr
ought
heir
workorindust
ryshall
begovernedbytherul
esonco- ownershi
p.Xxx

Whenonl yoneoftheparti
estoavoidmar ri
ageisingoodfait
h,theshareof
thepart
yinbadf ai
thintheco-ownershipshal
lbef or
fei
tedinfavoroftheir
commonchi l
dren,i
ndefaul
toforwaiverofal
lofthecommonchi l
drenortheir
descendant
s,each vacantshar
e shallbel
ong t othe r
especti
ve sur
vivi
ng
descendant
s.Intheabsenceofdescendants,suchshareshal
lbelongtothe
i
nnocentpart
y.

 Rel
ati
onshi
psi
ncl
udedunderAr
t.1
47:

1. themanandt hewomanmust(a)becapaci
tat
edt
omarryeach
ot
her;(b)li
veexclusi
vel
ywi t
heachot
herashusbandandwif
e;and)c)be
wi
thoutthebenef
itofmarri
age;

2. Voi
dmar
ri
agesunder
:

(
a)Ar
ti
cl
es36(
psychol
ogi
cal
incapaci
ty;

(
b)Ar
t.44mar
ri
agewher
etheabsentspousehasbeendecl
ared

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 presumpti
vel
ydeadandthepr
esentspouseaswel he2nd spouseoft
last he
subsequentmar
ri
agear
einbadfai
th;and

© Ar
t.53.Fai
l
uret
ocompl
ywi
tht
her
ecor
dingr
equi
rement
s
af
teramar
ri
agei
sdecl
aredvoi
d

Art.148.I ncasesofcohabi tat

ionnotfal
l
ingunderAr t
.147,onl yproper
ti
es
acquiredbybot hofthepar t
iesthrought
heiractual
joi
ntcont
ri
butionofmoney,
property,ori
ndustryshallbeownedbyt hem incommoni nproporti
ontothei
r
respectivecontr
ibuti
ons.Int heabsenceofpr oof,thei
rcontr
ibuti
onshallbe
deemedequal .

Inoneofthepar t
iesi
sval
i
dlymarri
edt oanot
her ,hi
sorhershareint he
co-ownershi
pshallaccr
uetotheACPorCPGexi st
ingi nsuchvali
dmar r
iage.
Ift
hepar t
ywhoact edinbadfai
thisnotval
idlymarri
edt oanother,hi
sorher
shareshal
lbefor
feit
edinthemannerprovi
dedi nar
t.147.

 Rel
ati
onshi
psi
ncl
udedunderAr
t.1
48:

1
. amanandawomanl ivi
ngtoget
herashusbandandwi f
e,wi
thout
he benef i
tofmarri
age,butareNOTCAPACI TATEDtomar r
y;
2. anadulterousrel
ati
onship;
3. abigamousorpol ygamousmar ri
age;
4. i
ncestuousvoidmar ri
agesunderArt
.37;and
5. voi
dmar r
iagesbyreasonofpubli
cpoli
cyunderArt.38

PATERNI
TYANDFI
LIATI
ON

Legit
imatechil
dren-Chil
drenconcei
vedorbor
ndur
ingt
hemar
ri
ageoft
he
par
entsare legit
imat
e.(
Art.1
64)

Il
l
egi
ti
mateChil
dren-Childrenconcei
vedand bor
nout
sideavali
dmar r
iage
ar
e i
ll
egi
ti
mate;unl
essotherwi
seprovi
dedbyt
heFami
lycode.(
Art.1
65)

Legit
imatedChil
dren-Onl
ychil
drenconceivedandbornout si
dewedlockof
parentswho,att
hetimeoftheconcepti
onoftheformer
,werenotdisqual
i
fi
ed
byanyi mpedi
menttomarryeachothermaybel egi
ti
mated.(
Art
.177)

NOTE:R. A.9858 amended Ar ti

cle1 77 ofthe Famil
y Code,“ Chi
ldr
en
concei
vedand born out
side ofwedl ock ofpar ents who,att he ti
me of
concepti
onoft hefor
mer, werenotdi squali
fi
edbyanyi mpedimentt omar r
y
eachother,orweresodisqual
ifi
ed onl
ybecause ei therorboth oft hem were
bel
ow1 8year sofage,maybe legit
imated.”( passedonOctober13,2009)

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 Legi
ti
mati
onshal
lt
akepl
acebyasubsequentval
idmarr
iagebet
weenpar ent
s.
Theannul
mentofavoidabl
emarr
iageshallnotaf
fectthel
egi
timat
ion.(Ar
t.
178)

Theeff
ect
sofl
egi
ti
mat
ionshal
lret
roactt
othet
imeoft
hechi
l
d’ .(
Art
.
180)

ADOPTEDCHILDREN
Purel
yper
sonal
bet
weent
headopt
edchi
l
dandt
headopt
edpar
ent
.

I
MPUGNI
NGTHELEGI
TIMACYOFACHI
LD

Ar
t.166.Legi
ti
macy ofa chi
l
d may be i
mpugned onl
y on t
he f
oll
owi
ng
gr
ounds:

1
.) Thati twas physical
l
yi mpossibl
ef ort he husband t
o have sexual
i
nter
cour
sewithhi swif
ewi thinthefir
st1 20 daysoft he300 dayswhich
i
mmediatel
ypreceded t
hebirthofthechil
dbecauseof :

a.
) t
he physi
calincapaci
tyofthe husband t
o have sexual
i
nter
cour
se wit
hhiswife;

b.
) t
hef
actt
hatt
hehusbandandwi f
ewerel
ivi
ngseparatel
yin
sucha wayt
hatsexual
int
ercour
sewasnotpossi
ble;

c.
) ser
iousi
l
lnessofthehusband,whi
chabsol
utel
ypr
event
ed
sexual i
nter
course;

2.) Thatitisprovedthatforbi
ologi
calorothersci
enti
fi
creasons,t
hechil
d
coul
dnothavebeent hatofthehusband,exceptintheinst
anceprovidedi
n
thesecondpar.OfArt
.164;or

3.
) Thati ncaseofchi ldrenconcei vedthr
oughar ti
fi
ciali
nseminat
ion,the
wri
tt
en aut
horizati
on orrat
if
icati
on ofwi t
herpar entwasobt ai
ned through
mist
ake,f
raud,viol
ence,i
nti
mi dat
ion,orundueinf
luence.

Wherethehusbandwasabletopr oveanyoft hegroundsenumeratedabove,

thechi
l
dwi l
lnei
therbeconsi
deredl egit
imat
eorill
egit
imateinsofarashei s
concer
nedbecausetheyarenotrelatedtoeachother.Insofarast
hemot her
i
sconcerned,t
hechil
dwil
lbeconsi deredheri
ll
egi
ti
mat echi
ld.

Art
.167.Thechi ldshal
lbeconsider
edl
egi
ti
mat
eal
thought hemothermay
have declar
ed agai
nsti
tslegi
ti
macyormayhave been sent
enced asan
adul
teress.

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 FAMI
LYHOME–wheni
sitdeemedconst
it
uted?

Afamilyhomei sdeemedconst i
tut
edonahouseandl otfr
om theti
mei ti
s
occupi
ed asa fami l
yresi
dence;thereisno need t
o consti
tut
ethe same
j
udici
al
lyorext
raj
udici
aly.Ver
l sonlavs.CA,497SCRA385

i
i
i.Pr
oper
ty

 Abui l
dingisbyi t
selfanimmovableproper
tyirr
especti
veofwhetherornot
saidst
ructur
eandt helandonwhichiti
sadheredtobelongt
othesameowner .
Hence,aval i
dr ealestat
emortgagecanbeconst i
tut
edonlyonthebuil
ding
erect
edont helandbelongingt
oanother.

 Chattelmor t
gageonr ealpropert
y–Undercer tainconditi
ons,aproper tymay
have a char acter differ
entf r
om t hatpr ovided i n Art
icl
e 415 and 41 6
(enumer at
ionsofi mmovabl e and movabl e properti
es). The par t
iest oa
contractofchattelmortgagemay,byagr eement ,treataspersonalthatwhi ch
bynat urewoul dber eal,i.
e.buil
dingwhi chbyi tsnatureisconsider edreal
property.Saidchattelmortgageoverabui ldingisbindingbetweent hepar t
ies
tosaidagr eement sincet heyareest oppedf r
om cl ai
mingot her
wise. Wi th
respecttothirdpersons,notpart
iestot hecont r
act,thebuildi
ngisconsi der
ed
i
mmovabl eproperty.

 Machinery,receptacles,inst
ruments,ori mplements– Themachi nery,et c.
mustbepl acedbyt heowneroft hetenementorhi sagentt obeconsi dered
asimmovabl e proper t
y. Machi neryismovabl e by nature and becomes
i
mmobi li
zedonlywhenpl acedonapl antbyt heowneroft hepropertyorplant,
butnotsowhenpl acedbyat enant
,us uf
ructuar
y,oraper sonhavingonlya
temporaryri
ght,unlesssuchper sonactedasanagentoft heowner .

Thus,wher eat enantplacest hemachi neryundert heexpresspr ovisi

onof
l
easet hatitshallbecomepar toft heplantbelongingtot heownerupont he
ter
mi nati
onoft hel easewit
houtcompensat i
ont othelessee,thet enantacts
asanagentoft heownerandt heimmobi li
zati
onofthemachi ner yt
akespl ace
byr easonofper manentdest inati
ontot hemachi nery. Butiftheat t
achment
orimmobi li
zat
ioni sfort
heuseoft helesseewhi chdoesnotinuret othelessor
attheendoft hel easecontract,t
heni tr
emai nspersonalproperty.

Fort
hemachiner
y,etc.tobeconsider
edi
mmovabl
epropert
y,sai
dmachinery,
et
c.musttenddi
rect
lytomeettheneedsoft
hei
ndust
ryorworkscarr
iedonin
abuil
dingoronapi eceland. Themovabl
e(machi
nery,et
c.)mustfi
rstbe

Ci
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 “essent
ial
l
yandpri
ncipal
element sofanindust
ryorworkswit
houtwhi
ch,such
i
ndus t
ryorworkswoul d be unablet ofuncti
on orcarr
yon the i
ndustr
ial
purposeforwhi
chitwasestabl
ished.”

Wher ethemovablesaremer elyinci

dentale.
g.cashr egister
s,typewri
ter
s
foundinhotel
sandrest
aurant
saremer el
yinci
dent
alforthesebusinessescan
conti
nueorcarryonthei
rfunct
ionswit
houttheseequipment sandthusretai
n
thei
rnatur
easmovablepropert
y.

 OWNERSHI
P–Li
mit
ati
onsont
her
ightofowner
shi
p:

1.thoseimposedbyt hestateint heexerci

seoft hepoweroft axati
on,
poli
cepowerandpowerofemi nentdomain;
2.thoseimposedbyl aw suchasl egaleasementandt her equir
ementof
l
egiti
mesuccession;
3.thoseimposedbyt hegr ant
oroft hepropert
yont hegrantee,eit
herby
contracte.
g.donat
ion,orbylastwi l
l
;
4.those imposed byt he ownerhi msel
fsuch asvol untaryeasement ,
mor t
gage,pledgeandlease;and
5.thoseimposedbyt heConst i
tut
ione.g.prohi
bit
ionofali
enationinfavor
ofali
ens

 Art
icl
e441.t
otheownerbel
ongsthenatur
al,i
ndust
ri
alandci
vil
frui
ts.Thusal
l
fr
uit
sbelongtotheownerofat hi
ng.Excepti
ons;aperson,otherthanthe
ownerofaproper
ty,ownst
hefr
uit
sther
eof:

a. possessi
oningoodfait
hbyanother– t
hepossessori
ngood
f
ait
hi senti
tl
edtothefr
uit
srecei
vedbefor
ethepossessi
oni
s
l
egall
yint
err
upted(
Art
.544)
;

b. usufr
uct– the usuf
ructuar
yisent
it
led t
o al
lthe f
rui
tsoft
he
propert
yinusuf
ruct(
Art.566);

c. l
easeofr ur
allands–thelesseei
senti
tl
edtothefr
uit
softheland
t
ogetherwiththeowner,getti
ngt
hecivi
lfr
uit
sint
heform ofr
ents
pai
dbyt helessee;(
Art
.1680and1 654)
;

d. pl
edge – t
he pl
edge isent
it
led t
or ecei
ve the f
rui
ts,i
ncome,
di
vi
dends,print
erest
swhichthepledgeearnsorpr oducesbut
wi
ththeobli
gati
ont ocompensateorset-offwhather ecei
ves
wi
ththosewhi
char eowi
nghim.(Art
.2102);
;

e. ant
ichr
esi
s–thecr
edi
toracquirest
heri
ghtt
orecei
vethef
rui
tsof
ani
mmovableofhi
sdebtor,butwit
htheobl
i
gati
ontoappl
ythem,

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 f
ir
st,t
otheint
eresti
fowi
ng,andt
hent
othepr
inci
palamountof
t
hecredi
t.(
Art
.2132)

 Whent hef r
uit
sorcr ophaveal readybeengat heredorhar vest
edwhent he
ownerr ecoversthepossession,t hepossessori nbadf ait
hshallreturnthe
frui
tsgathered buthast he ri
ghtt o deductthe expensesofpl ant
ing and
harvest
ing.Apossessorinbadf aithorgoodf ait
hisenti
tl
edt orei
mbur sement
forthenecessaryexpensesofpr eservat
ionoftheland(Art.452);

 Thegoodf ai
thorbadf ai
thofthepossessori smat er
ialwher
ethefrui
tsaresti
l
l
pending (
ungathered)atthe time he gave up hi spossessi
on. A builder
,
plant
erorsower,inbadf ai
thhasnor ightofreimbursementforexpenses,nor
tothefrui
ts.Theownerget sthef r
uitswithoutindemnitybythepri
ncipl
eof
accessi
on cont i
nua. But t he poss essor in bad f ai
th i
s entit
led to
reimbur
sementf orthenecessaryexpensesofpr eservati
onoft
heland.

 Art.449.Bui l
der,sower,orplanter(BPS)inBadf ait
h–TheBPSFORFEI TS
whathehasbui lt
,plantedorsownwi t
hout anyrighttobepai dindemni t
y
therefore.Hei s,however,enti
tl
edt orei
mbursementf ornecessar
yexpenses
ofpr eservat
ionoft helandincur
redbyhi m(Art
.452)butwi t
houttherightof
retenti
onunt i
lrei
mbur sementwhichi sgivent
oapossessori ngoodf ai
th(Art.
546)

-I ftheproductshaveal readybeengat hered(separatedfr

om thel
and)
byt hebuilder,pl
anterorsowerandt heyareor dereddeli
veredtothe
owneroft he l
and,t he bui l
deret c.should be r eimbur
sed forthe
expensesi ncurr
edf ortheproduct i
on,gat her
ingandpr eser
vati
onofthe
frui
ts(Art
.443)i fthecr opisst i
llstandingorgr owing atthetimethe
owneroft helandrecover sit,theplanterinbadf ai
thlosest
hem wit
hout
therightt
oanyi ndemni ty(Art.449).

 Accr
eti
onsaf
fect
ingl
andsr
egi
ster
edundert
heTor
renssyst
em:

- I
ncaseofdi minuti
onofar ea–accr et
ionar enatur
alincidentstoland
borderi
ng onr unni
ng riversorst r
eamsandar enotaf fectedbyt he
regi
str
ati
on law. Hence,r egi
str
ation does notpr otectt he r
iparian
owneragai nstdiminuti
onoft hear eaofhi slandthrought hegr adual
changesint hecour seoft headjoiningst r
eam.Accr et
ionswhi cht he
banksofr iver
smaygr aduall
yreceivef r
om theeffectoft hecurrent
becomest heproper t
yoft heownersoft hebanks.

- I
n case ofincr
eas
ei n ar
ea – al
though an al
l
uvion i
sautomati
cal
l
y
ownedbyt heri
par
ianownerfr
om themomentt hesoi
ldeposi
tcanbe

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 seen,i tdoesnotaut omat i
call
ybecomer egister
edl and,justbecause
thel andwhi chr ecei
vessuchaccr etioniscover edbyaTor renstit
le,
therebymaki ngt heall
uvialpropertyimpr escr i
pti
ble. Owner shi
pofa
pieceofl andi sonethingandr egistr
at i
onundert heTor r
enssystem of
thatowner shipi sanother. So,all
uvialdeposi tacquiredbyar i
pari
an
ownerofr egister
edlandbyaccr eti
onmaybesubj ect
edt oacquisi
ti
on
through prescr i
pti
on by a thir
d per son,by f ai
lure ofthe ownert o
registert
hesai daccreti
onwi t
hinthepr escribedper iod.

 CO-
OWNERSHI
P

 Co-
owner
sobl
i
gat
iont
ocont
ri
but
etoexpenses:

1. Pr eservat
ion of the thi
ng co- owned – t he expenses of
pr
eser
vat i
onoft hethi
ng orri
ghtownedi ncommonandt heamountof
t
axesduet hereonshouldbebornebyALL.Aco- ownerwhoadvanced
t
hem has a r i
ghtt o demand reimbursementfrom the other
si n
pr
oport
iont otheirr
especti
veint
erest
sintheco-ownershi
p.Thesear e
NECESSARYEXPENSES

2. Usef ulexpenses–evenifthevalueoft
hecommunitypropertyi
s
ther
ebyincreased,theyarenotcover
ed,thepur
poseofco-owner shi
p
notbeing forpr of
it
,unlesssuch expenseswereincur
red wit
ht he
consentoftheothers.

3. Expenses f orpureluxury ormer e pl

easur
e – are notalso
ref
undable not being f
or preservati
on. However , should any
i
mpr ovements be made to embell
ish t
he thi
ng orri
ghtowned i n
common,t heconsentoftheMAJORI TYoftheco-ownersisrequi
red
andallshal
lcontr
ibut
e.

4. Anyal terati
on made on t he ri
ghtort hing owned i n common
needst heUNANI MOUSCONSENToft heco- owner sandnotamer e
majori
tysi nceact sofal ter
ationisanactofowner shipandnotmer e
administr
at i
on. Al terat
ioni sachangei nt
het hingwhi chinvolvesa
changef rom thest ateoressencei nwhi cht
heot hersbelieveitshould
remain,orwi thdrawaloft het hi
ngfrom t
heuset owhi chtheywi shitto
beint
ended;oranyot hert r
ansformati
onwhichpr ejudicesthecondi t
ion
orsubstanceoft hethi
ngori tsenjoymentbytheot hers.

 SALE MORTGAGE OF COMMON PROPERTY – each co- ownerhas the

absoluter
ighttofr
eelydisposeofhispr
oindivi
soshareandoft hefr
uit
sand
otherbenefi
tsari
si
ngf r
om thatshar
ebutthetransf
ereedoesnotacquir
eany
specifi
cordeterminat
ephysicalpor
ti
onofthewhole,hisr
ightbei
ngli
mitedto

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 t
hepor
ti
onwhi
chmaybeal
l
ott
edt
ohi
m upont
hepar
ti
ti
onoft
hepr
oper
ty.

- I
fadeedofsal eappearstoconveyadef i
nit
eorsegr egatedport
ion
oftheproper
tyunderco- ownershi
pthati
sst i
l
lundivi
ded,doesnot
maket hesal
eanul l
i
typerse.Thesal eisvalidsubjectonlyt
ot he
condit
iont
hattheint
erest
sacqui r
edbythevendeemustbel i
mited
tothepartthatmaybeassi gnedtotheco- owner -vendori
nt he
di
visi
onupontheterminat
ionoftheco-ownership.

- Eveniftheco-ownersel lst
hewhol eproper
tyashisown,t hesalei
s
val
idinsofarashi sidealpor ti
onisconcerned unlessthesaleis
author
izedbytheot herco- owners.Sinceaco- ownerisenti
tl
edto
sel
lhisundivi
dedshar e,asal eoftheentir
epr opert
ybyoneco-
ownerwi l
lonl
ytransfertheright
sofsaidco-ownertothebuyer,and
thebuyerthusbecomesaco- ownerofthepropert
y.

 PARTITION–Ar t
icl
e494gr ant
st heeachco- ownertherightt
odemandatany
ti
me par t
it
ion oft he t
hing owned i n common,i nsofaras his sharei s
concernedf or“
noco- ownershal lbeobli
gedtor emainintheco-owner ship.
”
The acti
on to demand par t
it
ion isimprescri
pti
ble orcannotbe bar r
ed by
l
achesabsentacl earr
epudiationoftheco- ownershipbyaco- ownercl earl
y
communi catedtotheotherco- owners.

 EXCEPTI
ONt
other
ightt
odemandpar
ti
ti
on:

1
. whentheco-ownershaveagreedtokeept hethingundivi
dedfora
cer
tai
nperi
odoft i
me,notexceedi
ng10year s; whichterm maybe
ext
endedpr
ovidedeachext
ensi
ondoesnotexceed1 0years.

2. whenthepar t
it
ionisprohi
bit
edbyt
hedonorort
est
atorf
oracer
tai
n
per
iodnotexceeding20years;

3. whent hepar
ti
ti
onisprohi
bit
edbylaw i
.e.thecommuni
tyorconj
ugal
propert
yofthehusbandandwi f
e;thef amil
yhome;par
tywall
sand
fences;

4. whenparti
ti
onwouldrendert
hethi
ngunser
viceabl
efort
he usewhich
i
tisint
ended. Theco=ownershi
pinthi
scasemaybet er
mi nat
edin
accor
dancewit
hArti
cl
e498.

5. when anotherco-ownerhas possessed t

he proper
ty as excl
usi
ve
owner and for a peri
od suf
fi
cientto acqui
rei tby prescri
pti
on
(r
epudiat
ionoft
heco- owner
shi
phavingbeensuccessful
)

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  REDEMPTI
ONi
nco-
owner
shi
predoundst
othebenef
itofal
l
.

Wher eal otandimprovementwer emor t

gagedbyt hedeceasedpar ents,aco
-owner shipexistedamongt hehei r
sdur i
ngt heperiodgivenbylawt oredeem
thefor eclosedpr opert
y. Redempt ionbyonehei rdur i
ngt hi
speriodwoul d
i
nuret ot hebenef i
tofall.Butwher et hehei rpurchasedt hepropert
yf r
om the
mor t
gagee( towhom t hepr opertywassol datt hef or
eclosuresal
e)af tert
he
redempt ionper i
odhadexpi redandaf terthemor tgageehadconsol idatedits
owner shipandanewt it
lewasi ssuedi nhisname,t her
ewasnol ongeranyco
-owner shipt o speakof . Whent hehei rsal l
owed theoneyearper iod of
redempt iont oexpirewi thoutredeemi ngt hei
rpar ent
’
permittedt heconsolidati
onofowner shipandt heissuanceofanew t i
tle,t
he
co-owner shi
pwasext i
nguished.

 Aft
erpar t
it
ion,co-ownershipceasest oexi
sts;notr i
ghtoflegalredempt i
on
exi
sts-Wher ethepar t
ys eekingt oredeem i
st heownerofapor t
ional r
eady
determinedandi dent
if
ies,hecannotbeconsi deredaco- ownerand,hence,
hecannotr edeem underAr t.1620ofthe NewCi vilCode.Oncet hepr opert
y
i
s subdi vi
ded and di str
ibuted among t he co-owner s,the communi tyis
consideredt ohavebeent erminatedandtherei snor easontosust ai
nany
ri
ghtoflegal redempti
on.

 Registrat
ioninthenameofco- ownermer el
ycreatesat r
ust–r egistr
ati
onof
l
ands ubj
ectofco- ownershi
pinthenameofoneco- ownerisnotr epudi
ati
on
ofco- ownershipforpurposesofprescr
ipt
ion.Arti
cle494(5)providesthatno
prescript
ion shal
lrun infavourofa co- ownerorco- heirsasl ong ashe
expresslyorimpliedl
yrecognizestheco-ownershi
p.Ther egi
strati
onmer el
y
createdat r
ustinfavourofhisco-owner
s.

 Anor alpar
ti
ti
onamongco- heirsi
sval i
danddoesnotf al
lundert heStatuteof
Frauds–Or alpar
ti
ti
onisvali
dast hereisnol awt hatrequi
redpar ti
ti
onamong
heir
st obeinwr i
ti
ngtobeval i
d.Ther equi r
ementt hatparti
ti
onbeputi na
publi
cdocumentandr egist
eredhasf orit
spur poset heprotect
ionofcr edit
ors
andatt hesamet i
met heprotecti
onoft hehei rsthemselvesagai nsttardy
cl
aims.Par ti
ti
onisnotcoveredbyt heSt atuteofFr audsbecausepar t
it
ionis
notaconveyanceofpr opert
ybutsimpl yasegr egati
onanddesi gnati
onoft he
partoftheproper
tywhichbelongstotheco- owners.

 Possessi
onasaf actcannotber ecognizedatt hesamet i
meint wodi f
ferent
personal
i
ti
esexcepti nthecaseofco- possession–( Ar
t.538)possessionasa
factmaexi statt
hesamet imeintwoormor edi st
inctpersonali
ti
esbut,asa
generalr
ule,thel
aw wi l
lrecogni
zedonlyoneast heact ualorrealpossessor.
Thustheruleonpr ef
erenceofpossessionasf oll
ows:
Ci
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 1
. Thepr
esentoract
ual
possessorshal
lbepr
efer
red

IfX,thr
oughf or
ceandinti
midat
ion,ej
ectedY,act
ualpossessor
,from
t
he land,Y willst
il
lbe consi
der
ed ast he pr
esentpossessorand wil
lbe
pr
eferredbecauseXcannotbesaidtohaveacquir
edpossession(
Art
.536)

2. i
ftherearet
wopossessor
sthelongeri
npossessi
on
I
fbothXandYoccupiedapor t
ionofalandbothclai
mingownershi
pof
t
he enti
re par
celofl
and butY wasf ir
stistaki
ng possessi
on,Y shal
lbe
pr
efer
red.

3. I
fthedatesofpossessi
onaret
hesame,thepossessorwit
hat i
tl
ei.e.
r
ightordocumentevi
denci
nghi
sri
ghtt
osuppor
thispossessi
on;and

I
ftheypossessedatt hesamet i
mebutXi sasquat terwhileYi sa
l
essee,pref
erenceshallbeinfavorofY.Thel easecontractwit
ht he
ownerisY’ .
4. i
falltheabovear eequal
,the factofpossessi lbe j
on shal udi
ciall
y
det
ermined,andi nthemeanti
me,t hethi
ngshallbeplacedinjudicial
deposi
t(Art
s.2005-2009)

 USUFRUCT–gi vesarightt
oenj
oytheproper
tyofanotherwit
ht heobl
i
gat
ion
ofpr
eservi
ngit
sform andsubst
ance,unl
esst
hetit
leconsti
tut
ingitort
hel
aw
ot
herwi
seprovi
des(art
.562)

 Obl
i
gat
ionsoft
heusuf
ruct
uar
y:

a.BEFOREt
heU.begi
ns

 t
omakeaninvent
oryoft
hepr
oper
ty;and
 t
ogi
vesecur
it
y

b.dur
ingt
heusuf
ruct

 totakecar eoft heproperty

 toreplacewi t
ht heyoung thereofanimalsthatdieorarelosti
n
certai
ncaseswhent heusufructi
sconsti
tutedonf l
ockorherdof
l
ivestock
 tomakeor dinaryrepair
s
 tonot i
fytheownerofur gentext
raor
dinar
yr epair
s
 to permitwor ksand i mprovementsbyt he naked ownernot
prejudici
altotheusuf r
uctuary
 topayannual taxesandchar gesoftheFRUI TS

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  t
opayi nteres
tonCAPI TALpaidbythenakedowner
 t
opaydebt swhent heusufr
uctisconsti
tut
edont hewholeofa
pat
rimony
 t
os ecurethenakedowner ’ ’
i
ncer t
aincases
 t
o notif
yt he ownerofanypr ej
udi
cialactcommi t
ted byt
hir
d
per
sons;and
 t
opayf orcour texpensesandcostsregardi
ngtheusufr
uct

c.att
het
ermi
nat
ionoft
heusuf
ruct

 toreturnthet hi
nginusufructtot
henakedownerunl essther
eis
ari
ghtofr et
enti
on
 topayl egalint
erestatthetimet hattheusufructlasts,onthe
amountspentbyt heownerf orextraor
dinar
yr epai
rs( Art
.594)
;
andt hepr operint
erestonthesumspai dastaxesbyt heowner
(Ar
t.596) ;and
 toi ndemni f
yt he naked owner f or any losses due t o hi
s
negligenceorofhi str
ansfer
ees(Arts.589-590)

 Whennosecur
it
yisneededt
obegi
venbyt
heusuf
urct
uar
y:

1. thedonorwhohasr
eservedt
heusuf ructoft
hepropert
ydonated;
2. the par
ent
swho arethe usufruct
uariesofthei
rchil
dren’ ,
exceptwhent
heparent
scontractasecond(orsubsequent
)mar r
iage;

3. whenthenakedownerr
enouncesorwai
veshi
sri
ghtt
othei
nvent
oryor
secur
it
y;

4. wher
ethet i
tl
econst
it
uti
ngt
heusuf
ructr
eli
evest
heusuf
ruct
uar
yfr
om
t
heobli
gat
ion;

5. wher
etheusuf
ructuar
yaskst
hathebeexemptf
rom t
heobl
i
gat
ionand
noonewi
ll
beinjur
edther
eby

6. whent heusuf r
uctuaryisunderobl i
gati
ont ogivesecuri
tybutcannot
aff
ordt odosoandnoonei swil
li
ngt ogivesecuri
tyfort
hem,thecourt
onhumaneconsi derati
ons(i
.e.poorf amil
ybadlyinneedofahouse_
mayal low t
heusuf r
uctuarytoenjoythepr opert
yupont aki
nganoat h
–“byvirtueofapr omiseunderoat h”
-t otakecareoftheproper
tyand
ret
ainitunti
ltheterminati
onoftheusuf ruct(Ar
t.612)Il
ieuofgivi
nga
securi
ty.

NOTE:undert
hisi
nst
ance(
no.6)t
heusuf
ruct
uar
ycannotal
i
enat
eor

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 l
easetheproper
tyf
orthi
smeansthathedoesnotneediti
fhedoes
al
ienat
ehi
sr i
ghtofusuf
ruct
. Theoat
hiswhatiscall
ed“CAUCI
ON
JURATORI
A”

i
v.modesofacqui
ri
ngowner
shi
p

A. donat
ion

o Ki
nds:

1. SI
MPLE– ort hatcvauseofwhi
chi
sthepur
eli
ber
ali
tyoft
he
donori
nconsi
der
ati
onofthedonee’

2. r emunat
ory orcompensatory– thatwhi ch i
s given outof
grat
it
udeonaccountoft heservi
cesrendered bythedoneet othe
donor,pr
ovi
dedtheydonotconst
it
uteademandabl edebt
.

3.modal–thatwhi
chi
mposesuponthedoneeaburden(e.
g.ser
vices
tobeperf
ormedint
hef
utur
e)l
essthant
hevalueoft
hegif
t;

4. oner ous–thatthevalueofwhichi
sconsi
deredt
heequi
val
entof
theconsi
derat
ionforwhichiti
sgivenandist
husgover
nedbytherul
es
onobli
gati
onsandcont r
acts(Ar
t.733)

NOTE:Ill
egalori
mpossibl
econdit
ionsinSIMPLEandREMUNATORY
donat
ionsshal
lbeconsi
deredasnotimposed.(
Art
.727)

I
nmodaldonat ions,aburden( whi
chisnecessari
l
yfutur
e)l
essthanthe
val
ueofthegiftisimposedupont hedonee.Ift
heburdenisconsi
dered
the equi
val
entoft he t
hing orri
ghtgiven,then t
he donat
ion i
san
onerousone.

I
fthedonat i
oni sonerous( ormodalast otheonerouspor t
ion)
,the
i
ll
egalori mpossi
ble condit
ion wi
llr
enderthe donati
on voi
d. Being
contr
actualin nat
ure,t he rul
e appl
icabl
e would be Art.1183 on
obl
igati
onsandcontracts.

 REVOCATI
ON OFDONATI ON – af
fect
sthewhol
edonat
ionandi
sal
l
owed
dur
ingt
hel
ifet
imeoft
hedonor
:

1
. bi
rth,appear
ance,oradopti
onofachi
ldoft
hedonorsubsequenttothe
donati
on;
2. non-ful
fi
ll
mentofaresol
utor
ycondi
ti
onimposedbyt
hedonor( Art
.765)

Ci
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 3. I
ngr
ati
tudeoft
hedonee(
Art
.765)

 REDUCTION OF DONATI
ON – thi
sgeneral
l
yaf f
ectsapor t
ion onl
yofthe
donat
ionandi
sal
loweddur
ingt
heli
fet
imeofthedonororaf
terhi
sdeath:

1
. fai
lureofthedonort oreservesuf
ficientmeansf orsupportofhi
mselfor
hisdependentrelati
ves(Art.750)
2. fai
lureofthedonort oreservesufficientpropert
ytopayof fhi
sexist
ing
debts(Art
.759)
3. I
nof f
ici
ousness;t
hedonat ionexceedst hatwhichthedonorcangiveby
will(
Art
s.752,771 )
;and
4. bir
th,appearance,oradopt i
onofachi l
doft hedonor(Ar
t.760)

 Whomayaskf orr
eduction? Onl
ythosewhoatthetimeofthedonor ’
haveari
ghttothelegit
imeandt hei
rheir
sandsuccessor
sinint
erestmayask
fort
hereduct
ionofi noff
ici
ousdonati
ons.Theycannotrenouncet hei
rri
ght
duri
ngt
heli
feti
meoft hedonor.(Art
.771)

Donees,deviseesandl egat
eeswhoar enotent
it
ledtothelegi
ti
meandt he
credi
tor
s oft he deceased can nei
therask f
ort he r
educti
on noravai
l
themsel
vesthereof(Ar
t.772)

b. Successi
on

Q:Whati smeantbysuccession?
A:Successionisamodeofacqui si
ti
onbyvir
tueofwhi cht
heproperty,r
ight
sand
obli
gat
ionst
ot heextentoft
heval
ueoftheinheri
tance,ofapersonare
tr
ansmitt
edthroughhisdeatht
oanotherorother
seitherbyhi
swi l
lorby
operat
ionoflaw.(Ar
t.774,NCC)

Q:Whendoessuccessi ont akeplace?

A:Successi
ontakespl ace:
a.Deathoft hedecedent
b.Expresswi l
lofthet est
atorcall
i
ngsuccessi onand/orprovisi
onofl
aw
prescr
ibi
ng successor s
c.Ther i
ghtsorpr operti
essubjectofsuccessionaret r
ansmissibl
e
d.Transfer
eei ssti
llali
ve(didnotpredeceaset hetest
ator)
e.Transfer
eei scapaci t
atedtoinherit
f.Thetransfereeaccept edofthei nheri
tance.(Ar
t.774-777,NCC)

Q:Whatdoest hei
nher i
tanceconsistsof
?
A:Theinher
it
anceincludesall
thepr oper
ty,r
ightsandobli
gat
ionsofaperson
whi
charenotexti
nguishedbyhi sdeathandal sothosewhi
chhaveaccrued
t
heret
osincetheopeningofthesuccession.(Art.776and781,NCC)
Ci
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 Q:Wheni stheri
ghtofsuccessi
ont
ransmi
tt
ed?
A:Theri
ghtstothesuccessi
onaret
ransmi
tt
edfr
om t
hemomentoft
hedeat
hof
t
hedecedent.(Art
.777,NCC)

Q:Whatar ethetypesofsuccessi
on?
A:Successi
onmaybe:
(1)Test
amentary;
(2)Legalori
ntestat
e;or
(3)Mixed(Art
.778,NCC)

Q:Defi
netestamentar
ysuccession.
A:Test
amentarysuccessi
onisthatwhichresul
tsf
rom t
hedesignat
ionofanhei
r,
madeinawil
lexecutedintheform pr
escri
bedbylaw.(Art
.779,NCC)

Q:Howi smixedsuccessioneff
ected?
A:Mi xedsuccessi
onisthatef
fectedpart
lybywi
l
landpar
tl
ybyoper
ati
onofl
aw.
(Ar
t.780,NCC)

Q:Whati sawi l
l
?
A:Anactwher ebyaper sonisper
mi t
ted,wit
hthefor
malit
iesprescr
ibedbylaw,
tocontr
ol,t
oacer t
aindegreethedisposi
ti
onofhisest
ate,tot
akeef f
ectaf
terhi
s
death.(Art
.783,NCC)

Q:Mayat est
atordesi
gnat
eanotherpersontomakeawi l
lforhim?
A:No,becausethemakingofawil
l i
sastri
ctl
ypersonalact,hence,itcannotbe
l
efti
nwholeorinpartt
othedi
scret
ionofathirdperson,oraccompl i
shedthrough
t
heinst
rumental
i
tyofanagentoranattor
ney.(Art
.784,NCC)

Q:Whatmaybeent rustedbythetestat
ortoat hir
dperson?
A:Thetestatormayent rustt
oathirdperson,thedist
ri
buti
onofspecif
icpropert
y
orsumsofmoneyt hathemayl eaveingener alt
ospecifi
edclassesorcauses,
andthedesignati
onoft hepersons,i
nsti
tut
ionsorestabli
shmentstowhichsuch
proper
tyorsumsar et obegivenorapplied.(Art.786,NCC)

Q:Doest heinvali
dit
yofoneofsever aldisposi
ti
onscontainedinawi llr
esultin
theinval
i
dityoftheotherdisposi
ti
ons?
A:No.Thei nvali
dit
yofoneofsever aldisposi
ti
onscontainedinawi l
ldoesnot
resul
tintheinval
idi
tyoftheotherdisposi
ti
ons,unlessi
tist
obepr esumedt hatthe
test
atorwouldnothavemadesuchot herdisposi
ti
onsi
fthef i
rsti
nvali
ddisposit
ion
hadnotbeenmade.( Art.792,NCC)

Q:Whati
sther
uleasr
egar
dsaf
ter
-acqui
redpr
oper
ty?

Ci
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lLawBarRevi
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 A:Pr opert
yacquir
edaftert
hemaki ngofawillshal
lonl
ypassthereby,asifthe
test
atorhadpossessedi
tatt
hetimeofmakingthewi l
l
,shoul
ditexpr
esslyappear
bythewi l
lt
hatsuchwashisi
ntent
ion.(
Art
.793,NCC)

Q:Whatlawgovernst
hevali
dit
yofthewill
?
A:Thevali
dit
yofawil
lastoit
sform dependsupont
heobser
vanceoft
hel
aw i
n
f
orceatt
hetimeiti
smade.(Art
.795,NCC)

Q:Whoar ecapacitat
edtoexecuteawi l
l
?
A:Apersonwhoexecut esawill
mustbe:
Notexpressl
yprohibi
tedbyl
aw
Aged18year soldandabove
Ofsoundmi nd,attheti
meofitsexecuti
on(
Art
.796-
798,NCC)

Q:Wheni sat estat

orof“soundmi nd”?
A:Tobeofsoundmi nd,iti
snotnecessarythatthetest
atorbei nfullpossession
ofal lhisreasoningfacult
ies,ort
hathismindbewhol lyunbroken,uni mpaired,or
unshat ter
edbydi sease,i
njuryorothercause.Itshal
lbesuffi
cientifthet estat
or
wasabl eatt hetimeofmaki ngofthewil
ltoknow thenatureoft heest at
et obe
dispos ed of,t he properobj ect
s ofhi s bounty,and the char acteroft he
testament aryact.(Art
.799,NCC)

Q:Whatistheexcept i
ontothegeneralruleont hepr
esumptionofsoundnessof
mindoft
hetestator?
A:Thesoundnessofmi ndofthetest
atorshallnotbepresumed:
(1)Whenthet estat
or,onemonthorl ess,beforemakinghi swi
llwaspublicl
y
knowntobeinsane;or
(2)Wasunderguar di
anshi
patthet i
meoft hemaki ngoft hewil Tor
l( r
esand
LopezdeBuenov.Lopez,48Phi l
.117;Art.799,NCC)

Q:Whatistheeff
ectofthesuperveningincapaci
tyofthetest
ator?
A:Superveni
ngincapacit
ydoesnoti nvali
dateaneffecti
vewill
,nori
sthewi
l
lof
ani
ncapableval
i
datedbyt hesuperveni
ngofcapacity.(Ar
t.801,NCC)

Q:Whataret herequisi
tesforaval i
dnot arialwil
l
?
A:Aval
idnot ari
alwil
lmustbe:
a.Inwr it
ing
b.Inal anguageordi alectknownt ot het est
ator
c.Subscr ibedatt heendbyt het estatorhimselforbythetest
ator
’
writt
enbysomeot herper soninhispr esence,andbyhisexpr
essdir
ecti
on
d.Attested&subscr i
bedbyt hr
eeormor ecredi
blewit
nessesi
nthepresence
ofthet estat
orandofoneanot her

Ci
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 e.Eachandever ypage,exceptt helast,mustbesi gnedbyt het estat
ororby
t
heper sonrequestedbyhi mt owr i
tehi sname,andbyt hei nstr
ument al
wit
nessesofthewi l
l,ontheleftmargin
f. Eachandever ypageoft hewi l
lmus tbenumber edcor r
elati
velyinl et
ter
s
pl
acedont heupperpar tofeachpage
g.Cont ai
nanat t
estati
onclause,stat
ingt hefollowing:
(
a)Thenumberofpagesuseduponwhi cht hewil
li
swr it
ten
(
b)Thefactthatthetestatorsi
gnedt hewi llandeverypage,orcaused
some otherpersont owrit
ehi sname,underhi sexpr essdirecti
on,
i
nthe presenceofthei nstrument al
witnesses
(
c)Allt
heinstrumentalwi t
nesseswi tnessedandsi gnedt hewi l
landal l
i
tspages inthepresenceoft het estatorandofoneanot her
(
d)Itmustbeacknowl edgedbef oreanot arypubli
cbyt het estatorand
the witnesses.(Art
.804- 806,NCC)

Q:Whatar etheaddit
ionalrequisi
tesofanot ari
alwil
lifthetest
atorbedeafor
deaf-mute?
A:Theaddi t
ionalr
equi
rement sare:
(
1)Testat
ormustpersonall
yr eadthewil
l
,ifabletodoso;
(
2)Otherwise,heshalldesignatetwopersonstoreadi tandcommunicateto
hi
m,in somepr acti
cabl
emanner ,i
tscontents.(
Art
.807,NCC)

Q:Whataretheaddit
ional
requisi
tesofanot
arial
wi l
li
fthetest
atori
sbli
nd?
A:Thewil
lshal
lbereadtothetestat
ortwi
ce:
1.Oncebyoneoft hesubscri
bingwit
nesses
2.Oncebyt henot ar
ypubl i
cbeforewhom t hewi l
lisacknowl
edged.(
Art
.
808,NCC)

Q:I stheuseoft hetestatorofat humbmar ki

nsteadofhi ssignaturevalid?
A:I nonecasedeci dedbyt heSC,i twashel
dt hatsincethet estat
orissuf f
ering
from parti
alpar alysi
s,theactofusi nghismar kinsteadofhi susualsignat ureis
vali
d.I tli
kewisest atedthatthemannerofusi ngamar ki
naut henticat
inghi swil
l
i
samat t
erofpr ef er
ence.Bot ht heuseofasi gnatureorat humbmar ki sgood.
Astatuter equir
ingawi l
ltobe" signed"i
ssati
sfi
edift hesignatureismadebyt he
test
ator'smar k.(Lopezv.Li boro,81Phil
.249)

Q:How abouti ft
het estat
ormakesuseofacr ossasasi gntoauthenti
catethe
wi l
l
,ist hewi l
lbevali
d?
A:I fthe“ cross”asusedi nthewill
toauthenticat
et hesamei stheusualsi
gnature
oft he t estator
,then t he wil
lis val
idf orcompl ying wit
ht he r
equirements
establishedbyl aw. However ,ifthe“cr oss”isnott heusualsi
gnatureoft he
testator,thewi lli
svoi d. Iti
sf orther easont hatacr ossdoesnothavet he
trustwor t
hinessofat humbmar k.(Garci
av.Lacuest a,90Phil.1
89)

Ci
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 Q:Whati
st her
esul
tofanunsi
gnedatt
estat
ioncl
ause?
A:Anunsignedat
test
ati
oncl
auseresul
tsinanunattest
edwi
l
l.(
Aluadvs.Al
uad,
Oct
ober17,2008)

Q:Whati sthetwo-f
oldpur
poseofacknowledgementinanotari
alwi
ll
?
A:Theacknowl edgementi
nanot ar
ialwil
lhasatwo-fol
dpurpose:tosaf
eguar
d
the t
estat
or’ ;and t
o assur
et hathisest
ateis
administ
eredinthemannert hatheintendsi obedone.(
tt Leevs,Tambago,
February12,2008)

Q:Whatexcl udest hecoll

ater
alrel
ati
vesfrom succeedi
ngt otheestat
eoft he
decedent?
A:Onl ythe pr esence ofdescendants,ascendants orill
egit
imat
e chil
dren
excl
udescollateralrel
ati
vesfrom succeeding t
othe estat
e ofthe decedent
.
(Car
losvs.Sandoval,574SCRA116)

Q:Yi soneoft het hreeinstrument alwitnessesint hemaki ngoft hewi l

lofX,a
l
awyerand att he same t i
me t he Not ary Publ i
c befor
e whom t he wi l
lis
acknowl edged. I st hewi l
lat t
ested and s ubscribed byatl eastt hreecr edible
witnesses?
A:No. Thenot arypubl icbef orewhom t hewi llwasacknowl edgedcannotbe
consideredast hethirdinstr
ument alwit
nesssi ncehecannotacknowl edgebef ore
himselfhishavingsignedt hewi ll.Toacknowl edgebef oremeanst oavow;t oown
asgenui ne,toassent ,toadmi t;and" bef ore"meansi nfr
ontorpr ecedi ng in
spaceorahead of .Consequent l
y,ifthet hird witnesswer ethenot arypubl i
c
himself,hewoul dhavet oavowassent ,oradmi thi shavingsi
gnedt hewi lli
nf r
ont
ofhi mself
.Thiscannotbedonebecausehecannotspl i
thi
sper sonalityintot wo
sot hatonewi llappearbef oret heot hert oacknowl edgehispar t
icipat i
oni nt he
maki ngoft hewi l
l.Toper mi tsuchasi tuati
ont oobt ai
nwouldbesanct i
oni nga
sheerabsur di
ty.(Cruzv.Vill
as or,54SCRA31 )

Q: Shoul dtheat
test
ati
onclausebeinthedial
ectorlanguageknownbyt he
testat
or?
A:No,becauset heat t
est
ati
onclausedoesnotfor
m partofthetest
ament
ary
disposi
ti
on.

Q:Whatar etheformalit
ieswhi charer equir
edi ntheexecut
ionofaholographi
c
wil
l
?
A:From t
heprovisi
onsofAr t
s.804and81 0oftheNCC,i ti
scleart
hatt
hetestat
or,
i
ntheexecuti
onoft hehol ographi
cwi l
l
,thewi l
lmustbe:
(1)ent
irel
ywr i
tt
enbyt hehandoft hetestat
orhimsel
f;
(2)dat
edbyt hehandoft hetestatorhimself
;
(3)si
gnedbyt hehandoft hetestatorhi
mself;and

Ci
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 (
4)executedi
nalanguageordi
alectknownt
othet
est
ator
.
(Art
s.804and810,NCC)

Q:Aret hereexceptionst ot
her ul
et hattheor i
ginalcopyoftheholographicwil
l
shouldbepr esentedt otheprobat
ecour tf
orvisualexaminat
ionbeforeitcanbe
admitt
edt oprobate?
A:Yes .I
tispossibl
et hataphotostati
ccopy,orevenami meographedorcar bon
copymaybesubst i
tutedfortheor i
ginaldocument .Thisi
sso,becausei nthese
cases,compl i
ancewi ththerequir
ement ss t
atedi nArt
icl
e811oft heNCCwoul d
sti
l
lbepossible.(Ganv.Yap,104Phi l.509,August30,1 958)

Q:Howdoyouaut henti
cateaddit
ionaldi
sposi
ti
ons?
A:Toauthent
icateaddit
ionaldi
sposit
ions
,thesamemustbesi
gnedanddat
edby
t
hetest
ator.(
Art.812,NCC)

Q:Whatar et her ul
eswhen,i nahol ographicwi l
l
,t herear edisposit
ionswhi ch
wer enotsignedbyt het estator?
A:Jur i
sprudencepr ovidest hatwhenanumberofdi spositi
onsappear ingi na
hol ographicwi l
lar esi gnedwi thoutbei ngdat edandt hel astdispositi
onhasa
signatureanddat e,suchdat eval i
datest hedispositi
onspr ecedingi t
,what everbe
the t i
me ofpr i
ordi spositi
ons .I n case ofi nsert
ions,cancel l
ation,erasur e or
alterati
onsinahol ogr aphicwi l
l,thet estatormustaut hent i
catethesamebyhi sful
l
signature.Ther equi rement sinAr t
icle81 3,oft heNCC af f
ectt hevalidit
yoft he
dispos it
ioncont ainedi nt hehol ogr aphi cwi l
l
,butnoti tspr obate.I ft
het est
ator
fail
st osignanddat esomeoft hedi sposi t
ions,theresultisthatt hesedispos it
ions
cannotbe ef fect uat ed.Such f ai
lure however ,does notr endert he whol e
testamentvoi d.( Art.81 3,NCC)

Q:Art
icl
e815oft heNCCprovi
desthatwhenaFi li
pinoisinaf or
eigncountr
y,he
i
sauthori
zedt omakeawi l
linanyoft heformsestabl
ishedbyt helaw ofthe
count
ryinwhichhemaybe.Suchwi l
lmaybepr obatedi nthePhil
ippi
nes.I
sthe
l
awmandat ory?
A:No.The Ar t
icl
eis merel
y per
mi ssive.The word“ aut
hori
zed” makes i
t
permi
ssi
ve.(Art
.815,NCC)

Q:Whatlawgovernst
hef ormali
ti
esforwil
lsexecutedbyanali
enabr oad?
A:Anali
enwhoexecut esawi llabr
oadmaymakeawi l
linaccordancewit
hthe
f
ormali
ti
es(ext
ri
nsi
cvali
dit
y)prescri
bedbyt helawof:
(a) Theplaceofhisresi
denceordomi ci
l
e;
(b) Hisowncount r
yornat i
onal
it
y;
(c) ThePhili
ppi
nes;
(d) Thelawoftheplaceofexecut i
on.(Art.1
7,par
.1.;Ar
t.81
6,NCC)

Q:Whyar
ejoi
ntwi
l
lspr
ohi
bit
edi
nthePhi
l
ippi
nes?

Ci
vi
lLawBarRevi
ewNot
es Page29
 A:Jointwil
lsarepr ohi
bit
edinthePhi l
ippi
nesbecauset hey:
(
1 ) encour ageundueinfluence,mur der,orattempttokil
lt
heother
because generall
y,j
ointwill
sbenefiteachot her;
(
2) r uncount ertothei
deat hatwill
sarer evocable.Itmakesr
evocati
on
mor e di ff
icul
t.E.g.,t
eari
ngi tupdestroysthewi llofanot
her.
(
3) under minethepersonal el
ementofawi ll
.Itbecomesamultipl
ewil
l.
(Art
.818, NCC)

Q:Whoar equal
if
iedtoactasinstrumentalwitnessest
otheexecuti
onofawill
?
A:Accordi
ngtoAr t
icl
e820oft heNew Ci vi
lCode,awi t
nesstotheexecut
ionof
anordi
narywil
lmusthavethef oll
owingqualif
icati
ons:
(
1) Hemustbeofsoundmi nd;
(
2) Hemustbeof1 8year sofageormor e;
(
3) Hemustnotbebl ind,deaf ,ofdumb;and
(
4) Hemustbeabl etor eadandwr i
te.(Art
.820,NCC)

Q:Whoar edi
squal
if
iedtoactasinstrumentalwi t
nessest ot
heexecut
ionofawil
l
?
A:Thefol
l
owingaredisqual
i
fi
edf rom beingwitnessest oawill
:
(
1) Anypersonnotdomi ci
ledinthePhi l
i
ppi nes;
(
2) Thosewhohavebeenconvi ctedoffalsifi
cati
onofadocument,per
jur
y
orfal
setesti
mony.
(
3) Anypersonwhoi snotofsoundmi nd;
(
4) Anypersonwhoi slessthan1 8yearsofage;
(
5) Anypersonwhoi sbli
nd,deaf ,ordumb;and
(
6) Anypersonwhocannotr eadandwr ite.(Art
s.820and821,NCC)

Q:Whenisasubsequentdocumentacodi ci
landwhenisi
tanot
herwi
l
l?
A: I
tisacodici
lwhenitexpl
ains
,addsto,oral
ter
saprovi
sioni
napri
orwi
l
l.I
tis
anot
herwi
lli
fitmakesanindependentdi
sposi
ti
on.(
Art
.825,NCC)

Q:Ifawi l
l
,executedasrequiredbyt hisNCC,i ncorporatesintoitselfbyr eference
any documentorpaper ,whatr equisi
tes mustbe pr esenti n bef ore such
documentorpaperwi l
lbeconsi der edapar tofthewill
?
A:Suchdocumentorpapershal lbeconsi deredapar toft hewi lli
ft hef ol
lowing
requi
sit
esar epresent:
(1)Thedocumentorpaperr efer r
edt oi nthewillmustbei nexi stenceatt he
ti
meoft heexecutionoft hewi ll
;
(2)Thewi l
lmustclearlydescr ibeandi dentifyt
hesame,st atingamongot her
thi
ngsthenumberofpagest hereof;
(3)I
tmustbei denti
fi
edbycl earandsat i
sfact
orypr oofast hedocumentor
paperreferr
edtotherein;and
(4)I
tmustbesi gnedbyt het estatorandt hewitnessesoneachandever y
page,exceptincaseofvol umi nousbooksofaccountori nvent ori
es.(Art
.
827,NCC)

Ci
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 Q:Cantherevocat
ionofawill
bewaived?
A:No,therevocat
ionofawi l
lcanneverbewai
ved.Anywai
verorr
est
ri
cti
onof
t
hisr
ighti
svoid.(
Art.828,NCC)

Q:Howi sawi l
lrevoked?Whatl awgover nsrevocation?
A:I
tdependsupont hepl acewher etherevocati
onismade.
1.Ifdoneout si
det hePhi l
i
ppines:
a.I
fthetest atorisnotdomi ci
l
edi nthePhil
ippines:
i
.Thel awoft heplacewher ethewill
wasmade;or
ii
.Thel awoft heplacewher ethetestatorwasdomi ci
l
edatthet
ime
oft her evocation
b.I
fthet estatorisdomi ci
l
edinthePhi l
i
ppines:
(i)Phi li
ppinelawbecausehi sdomi cil
eishere;or
(ii
)Lawoft heplaceofrevocati
onpur suanttoArt
.17,NCC

2.I
fdonei
nthePhi
l
ippi
nes
,fol
l
owPhi
l
ippi
nel
aw.(
Art
.829,NCC)

Q:Whati sdest
ruct
ionofthewillwhichi
scont
emplatedinordertoconsi
dert
he
wil
lrevokedbydestr
ucti
on?
A:Theremustbeaphysi caldest
ruct
ionoft
hewil
li
tsel
f.(
Art.830,NCC)

Q:I ft
het est
atort
otal
l
ydestroyedt
hewil
landhechangedhismind,i
sther
e
revocat
ion?
A:Yes.Theactwasal r
eadyconsummat
ed.Hisr
emedyi
stoexecut
eanot
herwi
ll
.
(Art
.830,NCC)

Q:Whatisthediff
erencebetweenani nvali
dwil
landaval
i
dbuti
nef
fect
ivewi
l
l?
A:An invali
dr evoki
ng willcannotr evoke anot
herwil
l
.Buta val
idthough
i
nef
fect
ivewillcanrevoke.(
Art.832,NCC)

Q:Whatis‘
republ
i
cati
on’?
A:I
tist
heprocessofre-establ
i
shingawill
,whi
chhasbecomeusel
essbecausei
t
wasvoi
d,orhadbeenr evoked.(Art
.835,NCC)

Q:Howi sr
epubl
icati
onmade?
A:Republi
cat
ion maybe made by:a)r
e-execut
ion oft
he or
igi
nalwi
l
l;orb)
execut
ionofacodici
l
.(Ar
t.835,NCC)

Q:Whati st
heeff
ectoftheal
l
owanceofawil
l
?
A:Subjecttotherightofappeal
,theal
l
owanceofthewill
,eit
herdur
ing t
he
l
if
eti
me oft he t
est
atororafterhi
sdeat
h,shal
lbe concl
usi
ve astoitsdue
execut
ion.(
Art
.838,NCC)

Ci
vi
lLawBarRevi
ewNot
es Page31
 Q:Whatar ethegr oundsf ort hedisal
lowanceofawi l
l?
A:Ar t
icle839oft heNew Ci vilCodepr ovides“ Thewi l
lshallbedi sall
owedi nany
ofthef oll
owi ngcases:
(1)I fthef ormal i
ti
esrequiredbyl awhavenotbeencompl i
edwi t
h;
(2)I fthet estatorwasi nsane,orot herwisement allyincapableofmaki ngawil
l,
atthe t imeofi tsexecut i
on;
(3)I fitwasexecut edthroughf orceorunderdur ess,orthei nfl
uenceoff ear
,
orthreat s;
(4)I fitwaspr ocur edbyundueandi mpr operpr essur eandi nfl
uence,ont he
partoft he benefici
aryorofsomeot herper son;
(5)I fthesi gnatureofthet est
atorwaspr ocur edbyf raud;
(6) I fthet estatoractedbymi st
akeordi dnoti ntendt hatthei nstr
umenthe
si
gned shoul dbehi swillatthetimeofaf f
ixi
nghi ssi gnaturethereto.

Thi
senumerat
ioni
sexcl
usi
ve.Theyeit
hermaket
hewi
l
lvoi
dorval
i
d.Ther
eis
nosuchthi
ngasavoidabl
ewil
l
.(Ar
t.839,NCC)

Q:Whatismeantbyinst
it
uti
onofhei
r?
A:I
nst
it
uti
onofheirisanactbyvirt
ueofwhichat
est
atordesi
gnat
esinhiswil
l
t
hepersonorpersonswhoar etosucceedhi
minhi
spropert
yandtransmi
ssi
ble
r
ight
sandobli
gati
ons.(Ar
t.840,NCC)

Q:Whatispreteri
ti
onanditseff
ects?
A:Preter
it
ionoromi ssi
onofone,some,oral lofthecompul sor
yhei r
si nthe
dir
ectli
ne,whetherli
vi
ngatt heti
meoft heexecut i
onoft hewillorbornafterthe
deathofthetestat
or,shal
lannultheinsti
tuti
onofheir.Devisesandl egaciesare
val
idinsof
arastheyarenotinoffi
cious.(
Ar t
.854,NCC) .

Q:Whatistheeff
ectifanheirwhowastotal
l
yomi t
tedwasgivenadonati
onor
gi
venaverysmallshare?
A:Iftheheirwasgi venashare,evenifverysmallorminimal
,thereisno
pret
eri
ti
on.Allhehast odoistoaskf
orthecompleti
onofhi
sshare.(ART.855,
NCC;Reyesvs.Barret
to-Dat
u,19SCRA85).

Ift
hehei
rhasbeengi
venadonati
on,t
herei
snopret
eri
ti
onsi
ncet
hedonat
ion
i
sconsi
der
edanadvancei
nher
it
ance.(Ar
t.1
073,NCC).

Q:Ifanhei rwasomi t
ted,fr
om wherewil
lhisshar
ebetaken?
A:I
tshallbetakenf r
om:
(
a) Theestatenotdi sposedofbythewil
l;or
(
b) Proport
ionatel
yf rom t
hesharesoft
heot hercompul
sor
yhei
rs,i
fthef
ir
sti
s
notenough.(Ar t
.855,NCC) .
Q:Whati ssubst i
tut
ionofhei r
s?

Ci
vi
lLawBarRevi
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 A:Subst
it
uti
onofheirsi
stheappoi
ntmentofanotherheirsothathemayenter
i
ntothei
nheri
tancei
ndefaul
toft
heheiror
igi
nal
l
yinsti
tut
ed.(ART.857,NCC)
.

Q:Whati sfi
dei
commi ssar
ysubsti
tuti
on?
A:Fedeicommissar
ysubsti
tut
ioni
sonebyvi r
tueofwhichatestat
ori
nsti
tut
esa
fi
rstheirand chargeshim to preserve and t
ransmitthe whol
e partofthe
i
nherit
ancetoasecondhei r
.(Art
.863,NCC;Rabadi l
lavsCA,et.al
.,G.R.No.
113725,June29,2000).

Q:Whatar ether
equisi
tesorl i
mitati
onsoff i
deicommissar
ysubstitut
ion?
A:Theyar e:
(
1) Theremustbeaf irstheir
;
(
2) Obligati
onmustbei mposedupont hefi
rsthei
rtopreserveandt r
ansmi
tthe
property;
(
3) Theremustbeasecondhei r;
(4)Thefir
standsecondhei rsmustbeonl yonedegr eeapart
;
(5)Bothhei r
smustbeal i
veoratl eastconceivedattheti
meoft hedeathofthe
t
est at
or;
(
6) Itmustbeexpressed( Art.867);
(
7) Itmustnotburdent helegit
ime(Ar ts.864,872,904,NCC) ;
(
8) Itmustnotbecondi ti
onal.

Q:Whati ssubst i
tuci
onsubmodoandst ateitsrequi
sit
es?
A:Substi
tucionsubmodoi swhati sother
wi seknownasamodalsubst ituti
on.It
s
requi
sit
esar easf oll
ows:
1. Thetestatorstatestheobj ectoftheinsti
tut
ion;
2. Thet est
ators tatesthepur poseorappl i
cati
onofthepr oper
tyleftbythe
t
estator;
3. The testat
orst atest he charge imposed byt he test
atorupon the hei
r.
(JohnnyRabadi avsCA,etal
l
l ,G.R.No.1 13725,June29,2000)

Q:Whatisadisposi
tioncaptat
ori
a?
A:I
tisanydisposit
ionmadeupont hecondit
ionthattheheirshal
lmakesome
pr
ovi
sioninhi
swi l
li
nf avoroft
hetest
atororofanyotherper
son.(Art
.875,NCC)

Q:Isdi
sposit
ioncaptat
or i
aval
i
d?Why?
A:No. Iti
svoi d,becauseitmakesthemakingofawil
lcont
ract
ualorwi
tha
consi
derat
ion.Basical
ly,awil
li
sanactofpur
eli
ber
ty.

Q:An adopt ed chil

di nher
it
slike a l
egit
imate chi
l
d. Isthe said enti
tl
ed to
representhi
sfatherint
heinheri
tanceofhisfat
her’ ?Why?
A:No.Whi leiti
struethatt
headopt edchil
dshallbedeemedtobeal egit
imate
chil
dandhast hesamer i
ght
sast helat
ter
,theseri
ghtsdonoti
ncludetherightof

Ci
vi
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ewNot
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 repr
esentat
ion. The relat
ionshi
p creat
ed by the adopti
on is bet
ween t he
adopti
ng parentsand the adopted onl
yand doesnotext end tothe bl
ood
rel
ati
vesofeitherpart
y. (Republ
icvsCA,G. R.No.92326,Januar y24,1 992;
Testi
covs.DelVal,1
2SCRA406;Del aPuert
avs.CA,181,SCRA862) .

Q:Whati sreservatroncal
?
A:Reser vaTroncalisasyst em ofreservebyvir
tueofwhichanascendantwho
i
nher i
tsfrom hi
sdescendantanypr opertywhi
chthelat
termayhaveacquiredby
gratuit
oust i
tl
ef rom anotherascendant ,ora brot
herorsister
,isobli
ged to
reservesuchpr opertyashemayhaveacqui r
edbyoper at
ionoflaw forthe
benef i
tofrelat
iveswhoar ewithi
nt hethir
ddegreeandwhobel ongtothel i
ne
from whichsaidpr opert
ycame.( Art.891,NCC).

Q:Whatar et herequi
sit
esofr eservatroncal?
A:Theyar ethefoll
owing:
(
a) Property was i
nherit
ed by oper ati
on oflaw by an ascendantfr
om a
descendantupont hedeathoft hel att
er;
(
b) Acquisit
ionbythedes cendantf rom anascendantupont hedeathofthe
l
att
er
(
c) Descendantshoul dhavedi edwi t
houtanylegi
ti
matei ssueinthedir
ect
descendinglinewhocoul dinheri
tfrom him;
(
d) Theremustber elati
vesoft hedescendantwhoar ewit
hint het
hir
ddegree
andwhobel ongtotheli
nef rom whi chtheproper
tycame.

Q:Whatr equisi
tesmustbecompl iedwithi nor
dert hatthereservatar
iosmay
quali
fyassuch?
A:Theyarethef ol
lowing:
(
a) Theymustbel egi
ti
mater elati
vesoft hedescendant-proposit
us andthe
ori
gin;
(
b) Theymustber el
ated t
ot he des cendant-proposit
us wi t
hinthethi
rd
degree;
(
c) Theymustbel ongtotheli
nef rom whichthereservabl
epr opert
ycame;
(
d) Theymustsur vi
vethereservista.

Q:Howi sr eser
vaext ingui shed?
A:Reser vaisextinguishedby:
(
a) Thedeat hoft heascendant -reservi
sta;
(
b) Thedeat hofal lrelat i
vesoft he descendant-proposit
uswi t
hinthethir
d
degreewhobel ongt ot hel inef r
om whi cht hepropertycame.I nsuchcase,the
acti
ve subjectoft he reser ve di sappears ,asa consequence ofwhi ch t
he
resol
utorycondi t
ionwhi chl imitsthet i
tl
et othereser
vista al
sodisappears
;
(
c) Lossoft he reser vabl e propertyf orcausesnotdue t ot he f
aultofor
negli
genceoft her eservista;
(
d) Wai verorr enunci ationbyt her eservat
ari
os. Ther enunci
ati
onmaybe

Ci
vi
lLawBarRevi
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 befor
eoraf terthedeat hoft hereser vi
sta. I fther enunciati
oni smadebef ore
thedeat hoft her eservista,suchr enunci ati
oncannotaf f
ectothert hirddegree
rel
ati
veswhomaybebor nsubsequent l
yandwhosur vi
vedther eservist
a;ifiti
s
madeaf t
erthedeat hoft her eser
vist
a,t her eser vati
onisextinguishedbutonl y
i
nsofarast heshar eoft her enounceri sconcer ned.Ther enunciationmaybe
eit
herexpressori mpl i
ed;
(
e) Prescri
ption oft he r ightoft he r eservat ari
os,when t he ascendant–
reser
vista holdst he pr operty adver sely agai nstt hem int he conceptofan
absol
ut eowner .(SeeMaghi rangvs.Bal cita,48Phi l551;Caril
lovs.Del aPaz,18
SCRA467;Sumaya,et .al.vsIAC,etal .,Sept ember2,1 991

Q:Whatisthelegalef
fectofar enunci
ati
onorcompr omi seasr egardsafuture
l
egiti
me?
A:Everyr
enunciat
ionorcompr omiseasr egardsaf uturelegi
timebet weent he
personowingi
tandhi scompul soryhei
rsisvoi dandt helat
termaycl ai
mt he
sameupont hedeathoft heformer;buttheymustbr ingtocol l
ationwhatever
theymayhaver ecei
vebyvi r
tueoft herenunciat
ionorcompr omi se.(
Art
.905,
NCC)

Q:Whati st he eff
ectoft est
amentar
ydisposi
ti
onswhich ar
einof
fi
ciousor
excessi
ve?
A:Theimpair
edordi mini
shedlegi
ti
meofthecompulsor
yheir
sshal
lbereduced
uponhispeti
ti
on.(Art
.907,NCC)

Q:WhatismeantbyNetAssetoftheEst
ate?
A:I
tisthedi
ff
erencebet
weent hegrossest
atel
essal
ldebt
sandchar
ges.(
Art
.
908,NCC)

Q:WhatisthemeaningofNetHer edit
aryEst
ate?
A:I
tisthesum ofnetassetoft
heestatepl
ustheval
ueofcol
l
ati
onabl
edonat
ions
.
(Ar
t.908,NCC)

Q:Whatismeantbycoll
ati
on?
A:I
tisaf
ict
it
iousmat
hemat i
calpr
ocessofaddi
ngt
heval
ueoft
het
hingdonat
ed
t
othenetval
ueoftheheredi
tar
yestat
e.

Q:Whereshalldonati
ongiventochil
dreni
scharged?
A:I
tshal
l bechargedtothei
rlegi
ti
meandt heexcesst
othef
reepor
ti
on.Wheni
t
i
sinof
fi
cious,i
tshall
bereduced.(Art
.909,NCC)

Q:Whereshall
donationmadetostrangersischarged?
A:I
tshallbechargedtothepartoftheest at
eofwhi chthetestatorcouldhave
di
sposedbyhislastwil
l
.Wheniti
sinoffi
ciousitshal
lbereduced.(Art.909,NCC)

Ci
vi
lLawBarRevi
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 Q:Wher eshalldonati
onreceivedbyil
legi
ti
matechi
l
drenduri
ngthel
if
eti
meofhis
fat
herormot herischarged?
A:Itshal
lbechar gedt othei
rlegi
ti
me.Shouldtheyexceedthepor
ti
onthatcan
befreel
ydisposedof ,t
heyshallbereduced.(
Art
.910,NCC)

Q:Whati stheor derofpr efer encei nthepaymentofi nheri

tancet ot
hoseentit
led
t
hereto?
A:Theor derofpr eferencei s:
(1)Thel egi
timesshal l
firstbepai d;
(2)Thent hedonat i
onsi ntervi vos;
(3)Next ,t
hepr ef
erreddevi sesandl egacies
;and
(4)Lastly, the other devi ses and l egacies and allot her test
amentary
disposit
ionstot akeef fectmor ti
scausa,shal lbereducedpr or at
a,wi
thout
dist
incti
on,incaset hef reepor ti
onisnotsuf f
ici
ent
.(Art.911,NCC)

Q:Whatar etherequi si
teofavaliddisinherit
ance?
A:Fordisi
nheri
tancet obeval i
dthef ol
lowingr equisi
tesmustbecompl
i
edwi
th:
(1)Itmustbedonei navali
dwill(Art916,NCC) ;
(2)Itmustbeexpr ess(Art
.918,NCC) ;
(3)Itmustbewi t
hal egalcause( Art
.91 6,NCC) ;
(4)Theremustbeat ruecause( art
s.91 7and91 8,NCC);
(5)Theremustbeanexi st
ingcause;
(6)Itmustbet otalorcompl et
e;
(7)Thecausemustbest atedint hewill(Art918)
;
(8)Theheirdisinher i
tedmustbei dentif
ied;
(9)Thewi l
lmustnothavebeenr evoked.

Q:Whatismeantbyi mper f
ectdisinherit
ance?
A:Imperfectdisi
nheri
tancer eferstodi si
nheri
tancewit
houtspecifi
cati
onoft he
cause,orforacauset hetr
uthofwhi ch,ifcontr
act
ed,i
snotproved,orwhi chis
notoneoft hoserecognizedbyl aw.(Ar t
.918,NCC)Inotherwords,itr
efer
st oal
l
ofthosecaseswher et hedi si
nherit
ancei snotmadei naccor dancewitht he
requi
si
teformalit
iesprescri
bedbyl aw.

Q:Whatar etheeffect
sofi mperfectorineffect
ivedisi
nherit
ance?
A:Theyar e:
1) Thei nst
it
uti
onofhei rsisannulled,butonlyinsof arasitmaypr ejudi
cethe
persondi si
nheri
ted,thati
s,insof arashislegit
imeisconcer ned;
2) Thedevi ses,l
egacies,andot hertestamentarydisposit
ionsshallbevali
dto
suchext entaswi l
lnotimpairthelegit
ime.Art.918,NCC)

Q:Whatar
ethegr
oundsf
ordi
si
nher
it
anceofchi
l
dren?

Ci
vi
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ewNot
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 A:Thef oll
owi ngshallbesuf fi
cientcausesf ort hedi sinherit
anceofchi ldrenand
descendant swhet herl
egi t
imateori l
l
egiti
mat e:
1.Whenachi l
dordescendanthasbeenf oundgui lt
yofanat t
emptagai nst
thelif
eoft hetestator,hisorherspouse,descendant s,orascendant s;
2.Whenachi l
dordescendanthasaccusedt het est
atorofacr i
mef orwhich
thelaw pr escri
besi mpr i
sonmentf orsi xyear sormor e,ift
heaccusat i
on
hasbeenf oundgr oundless ;
3.When a chi l
d or descendant has been convi cted of adul t
ery or
concubi nagewi t
ht hespouseoft het estator ;
4.Whenachi l
d ordescendantbyf r
aud,vi olence,i nti
mi dat
ion,orundue
i
nf l
uencecausest het estat
ort omakeawi llort ochangeoneal ready
made;
5.Ar efusalwithoutjusti
fi
ablecauset osuppor tthepar entorascendantwho
disi
nher i
tssuchchi l
dordescendant ;
6.Mal t
reatmentoft hetestatorbywor dordeed,byt hechi l
dordescendant ;
7.Whenachi l
dordescendantl eadsadi shonor ableordi sgracefull
i
fe;
8.Convi cti
onofacr i
mewhi chcar ri
eswi thi tthepenal t
yofci vili
nterdi
cti
on.
Art.91 9,NCC)

Q:Whatar ethegr oundsf ordi si

nher it
anceofascendant s?
A:Thef oll
owi ngshal lbesuf fi
cientcausesf orthedi si
nher i
tanceofpar entsor
ascendantswhet herlegit
imat eori ll
egit
imat e:
1.When t he par ents have abandoned t heir chil
dren or i nduced t heir
daughter stoli
veacor ruptori mmor al l
if
e,orattempt edagai nstthei
rvirtue;
2.Whent hepar entorascendanthasbeenconvi ctedofanat temptagai nst
theli
feoft het est
ator,hi sorherspouse,descendant s,orascendant s;
3.Whent hepar entorascendanthasaccusedt hetestatorofacr imef or
which the l aw pr escribes impr isonmentf orsi x year s ormor e,i ft he
accusationhasbeenf oundt obef al
se;
4.When t he par entorascendanthas been convi ct
ed ofadul t
ery or
concubi nagewi ththespouseoft hetest at
or;
5.Whent hepar entorascendantbyf r
aud,vi ol
ence,i nti
mi dati
on,orundue
i
nfluencecausest het est
at ort omakeawi llort ochangeoneal ready
made;
6.Thel ossofpar entalauthor it
yf orcausesspeci fiedint hi
sCode;
7.The r efusalt o suppor tthe chi ldren ordescendant swi thoutjusti
fiable
cause;
8.Anat t
emptbyoneoft hepar entsagai nsttheli
feoft heot her,unlessther e
hasbeenar econcili
ati
onbet weent hem.( Art
.920,NCC)

Q:Whatarethegroundsfordisi
nheri
tanceofaspouse?
A:Thefol
l
owingshallbesuf
fici
entcausesfort
hedisinher
it
ingaspouse:
1. Whent hespousehasbeenconvi ct
edofanat temptagai
nstt
heli
feoft
he
test
ator
,hi
sorherdes cendants
,orascendants;

Ci
vi
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 2. Whent hespousehasaccusedt het est
at orofacr i
mef orwhichthel aw
prescr
ibesimpr i
sonmentofsi xyear sormor e,andt heaccusati
onhas
beenfoundt obef alse;
3. When t he spouse byf raud,violence,i nti
mi dat
ion,orundue i nf
luence
causethetestat
ort omakeawi l
lortochangeoneal readymade;
4. Whent hespousehasgi vencausef orlegal separati
on;
5. Whent hespousehasgi vengroundsf orthel ossofpar ent
alaut
horit
y;
6. Unjust
ifi
abl
er ef
usalt osupportt
hechi l
drenort heotherspouse.(Art
.921 ,
NCC)

Q:Whatar
etheeff
ect
sofreconci
l
iat
ionbet
weent
heof
fenderandt
heof
fended
i
ncaseofdi
si
nher
it
ance?

A:Subsequentreconci
l
iati
onbetweentheoffenderandt heof
fendedperson
depri
ves the l
att
eroft he r
ightto di
si
nheri
tand r ender
sineff
ectualany
di
sinher
it
ancethatmayhavebeenmade.(Art
.922,NCC)

Q:Whati st heef fectofvaliddisi

nher i
tance?
A:Theef fectsar easf oll
ows:
(1) The di sinheri
ted compul sor
y hei ris compl etely excl
uded from the
parti
cipat
ioni nthei nherit
ance,notonl yasacompul soryhei rwit
hrespecttothe
l
egiti
meandasavol untaryhei rasr egar ddevi sesandl egaci
es,butalsoas
i
ntestatehei rast othef r
eepar t
,wher et her eisnoi nstit
ut i
onofanyhei r
,orwi t
h
respecttothel egi t
imeonl ywher etherei sinstitut
ionofhei r
;
(2) Thechi l
drenanddescendant soft heper sondi sinherit
edheirshallt
ake
hisplaceandacqui rether ightofcompul soryhei rswi thr especttothelegit
ime
and,wher et herei snoi nstit
uti
onofhei rort hei nsti
tutiondoesnotcovert he
wholef r
eepor ti
on,alsot ohisshareoft hef reepor tion;and
(3) Thedi sinheri
tedpar entsshall nothavet heusuf ructoradminist
rat
ionof
theproper t
ywhi chconst i
tutethelegit
ime.( Art.923,NCC)

Q:Isthel egacyordeviseofat hi ngbelongingent ir

elytoathirdpersonval i
dor
void?
A:Ifthet estat
orknowingt hatt het hi
ngbequeat heddoesnotbel ongt ohim,
orderst hatitbe acquir
ed in or derto give i
tt ot he l
egat
ee ordevi see,the
disposit
ionisval
id.
.Ift
heowneroft hepropert
yr efusestoali
enateitordemands
anexcessi vepri
ce,theheirort heest at
eisboundt ogiveonlythejustvalueof
thething.(Art
.931,NCC)

Q:Isthelegacyordeviseofat hi
ngbelongi
ngent ir
elytoalegat
eeordevisee
vali
dori
neffect
ive?
A:Thelegacyordeviseofathi
ngbel ongi
ngentir
elytolegat
eeordevi
seeatthe
ti
meoft heexecuti
onofthewillshal
lbeinef
fecti
ve.Itisobvi
oust
hatisal
ready
ownedbyt helegateeordevi
seecannotbet ransmitt
edt ohi
m.Howeverifthe

Ci
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 test
atorexpressl
yor derstheinterestpert
ainingtoanot herbeexti
nguishedor
paid,t
henthelegacyordevi seisvali
dtosuchi nter
est.(Art
.932,NCC)
Eveni ft
hethingissubsequent lyali
enatedbyt hel egat
eeordeviseetoat hi
rd
person,i
tremainsvoi d.Thelegacyordevi seisnotr evi
vedbecauseitwasvoi d
atit
sincepti
on.Butift heal
ienati
onistothet est
atorhimselfandhecontinuesin
hispossessi
onatt hetimeofhi sdeath,t
hedi sposit
ionbecomesvali
d.(Ar t
.933,
NCC)

Q:Whatisthelegal
effecti
fthet
estat
oror
dersthepaymentofwhathebel
i
eves
heowesbutdoesnotinfactowe?
A:Thedi
sposi
ti
onshall
beconsideredasnotwri
tt
en.(
Art.939,NCC)

Q:I
ftheest
ateofthetest
atorshoul
dnotbesuff
ici
entt
osati
sfyal
lt
hel
egaci
es
anddevi
ses,whatist
heorderofpaymentthatmustbefol
l
owed?

A:Ift
heestateshouldnotbes uf
fi
cientt
ocoveral lt
hel
egaciesordevi
ses,t
heir
paymentshallbemadei nthefoll
owingor der:
1.Remuner at
orylegaciesordevises;
2.Legaciesordevisesdeclaredbyt hetestatortobepref
erenti
al;
3.Legaciesforsupport;
4.Legaciesforeducati
on;
5.Legaciesordevisesofaspeci fi
cdetermi natethi
ngwhichformsapartofthe
estat
e;
6.Allot
hersprorata.(Art
.950,NCC)

I
NTESTATESUCCESSI
ON

Q:Whati sl
egalsuccessi
on?
A:Legal successi
onisthatki
ndofsuccessi
onprescr
ibedbyt
helawand
presumedt obet hedesir
eofthedeceasedwhichtakespl
acewhenthe
expressedwi l
lofthedecedenthasnotbeensetdowninawil
l.

Q:Whenmayl egalorintestatesuccessiont akepl ace?

A:Ifmayt akepl ace:
i
ftheper sondi eswi t
houtawi l
l,orwithavoi dwi ll
,oronewhi chhassubsequent l
y
l
ostitsvali
dity;
Whent hewi l
l doesnoti nstit
uteanhei rt
o,ordi sposeofallthepr opert
ybelonging
tothetestator.I nsuchacase,l egalsuccessi onshal lt
akeplaceonl ywithrespect
totheproper tywhi cht het est
atorhasnodi sposed;
I
fthesuspensi vecondi tionattachedt otheinstituti
onofheirdoesnothappenori s
notfulf
il
l
ed,ori fthehei rdiesbef or
ethet estator,orrepudiatestheinheri
tance,
therebeingnosubst i
tution,andnor ightofaccr eti
ontakespl ace;
Whent hehei rinsti
tutedi si
ncapableofsucceedi ng,exceptincasespr ovi
dedin
thecode.

Ci
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 Q:Mayapr obatecourtdetermineowner shi
pofthesubject?
A;Thejuri
sdi
cti
onofther egi
onal t
ri
alcourtasaprobatecourtorintest
atecourt
rel
atesonl
ytomattershavingtodowi ththesett
lementoftheestateandpr obat
e
ofthewil
loft
hedeceasedper sonsanddoesnotext endtothedet erminat
ionof
questi
onsofownershipthatari
sedur i
ngtheproceedings.

Q:Whati stheef fectofthepri

ncipl
ethenear estexcl
udesthefar
thestt
other
ight
ofrepresentat
ion?
A:Itiswit
houtpr ejudi
cet ot
herightofrepresentat
ionbecausebyvir
tueof
represent
ati
ont hef ar
therbecomesj ustasnear.

Q:Betweenagrandfat
herandabr other
,whowi l
li
nheri
tintest
atefrom t
he
decedent
?
A:Alt
houghi
tist
ruethatbothasjustasnearindegr
ee,stil
liti
sthegrandfather
alonewhoshoul
dinheri
tbecausethedirectl
i
neispref
erredovert hecoll
ateral
l
ine.

Q:Howmustshar esbedi
videdbetweenr elati
vesinthesamedegr ee?
A.Relati
vesint
hesamedegreeshall
inheritinequalshares,subjecttot
he
provi
sionsofar
t1006wi
threspectt
or el
ati
vesoff ull
andhal fbl
ood,andofar
t
987par2,concerni
ngdi
visi
onbetweent hepat er
nalandmat er
nal l
i
nes.

Q:Mayapersonwhor epudi
atesberepr
esented?
A:No,andhei
rrepudi
ati
ngcannotberepresent
ed.

Q:Inasit
uationwhereisthesol
ehei
roral
lhei
rsr
epudi
atethei
nher
it
ance,who
maybecal l
edt osucceed?
A:Therel
ati
vesoft hefol
lowi
ngdegr
ee,i
nthei
rownri
ghtandnotbyri
ghtof
repr
esentat
ion.

Q:Supposeoneofthetwoheirsisi
ncapacit
atedandtheotherrepudiated,how
maythei
rchil
dreni
nheri
t?
A:Thechi
ldr
enoftheincapaci
tat
edmayi nheri
tbyri
ghtofrepresentat
ionandt he
chi
ldr
enoftheonewhor epudi
atedareexcludedforhecannotber epresented.

Q:Defi
neri
ghtofrepresent
ati
on.
A:Ari
ghtcreatedbyfi
cti
onoflawwher einarepr
esentat
iveisrai
sedt
otheplace
anddegreeofthepersonrepr
esented,andacqui
restheright
swhicht
helat
ter
woul
dhavei fhewereli
vingorabl
et oi
nheri
t.

Q:Whenmayt heri
ghtofr
epresent
ati
onexi
st?
A:Rightofrepr
esent
ati
onexi
stswhenther
eispredecease,i
ncapaci
tyand
di
sinheri
tance.

Ci
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 Q:From whom doestherepr
esentati
veinheri
t?
A:Therepr
esentat
ivedoesnotinher
itfr
om theper
sonrepresent
edbutr
ather
fr
om thepersonwhom thepersonrepresent
edcouldhaveinher
it
edf
rom.

Q:Inint
estat
esuccessi on,ri
ghtofrepresent
ati
onwil
lcoverwhatproper
ti
es?
A:Therightofrepresentat
ionwhenpr operinint
est
atesuccessi
oncover
sallt
he
personbeingrepresentedwoul dhaveinheri
ted.

Q:Intestat
esuccessi
on,t
heri
ghtofr
epresent
ati
onwil
lcoverwhatpr
opert
ies?
A:Ther i
ghtofr
epresent
ati
onwhenproperint
est
atesuccessi
ononl
ycoversthe
l
egit
ime.

Q:Mayanadopt edchi
ldr
epresent?
A:No,becausether
eisnofi
l
iat
ionwhetherbybloodorbylawbet
weent he
adoptedchil
dandthepar
entoftheadopter.Whi
leapersont
hruhi
slegal
actuat
ioncangi
vehimsel
fanheir,hecannotbythesameacti
ongi
veshis
rel
ati
vesanheir
.

Q:Mayanadopt edchi
ldberepresent
ed?
A:No,becausether
eisnofi
l
iati
onwhet herbybl
oodorbylawbet
weent he
adoptedchil
dandthepar
entoftheadopt er
.Whil
eapersont
hruhi
slegal
actuat
ioncangi
vehimsel
fanheir,hecannotbythesameacti
ongi
veshis
rel
ati
vesanheir
.

Q:Towhom wil
lt
herepresent
ati
vesucceed?
A:Ther
epr
esent
ati
vedoesnotsucceedthepersonrepr
esent
edbutt
heone
whom t
heper
sonrepresent
edwouldhavesucceeded.

Q:Wher emayt herightofrepresent

ati
ontakeplace?
A:Theri
ghtofrepresentat
iontakesplaceonlyi
nthedirectdescendi
ngl
i
nebut
neveri
ntheascending.

Q:Mayt heri
ghtofrepresent
ationoccuri
nthecoll
aterall
ine?
A:Yes,i
nthecoll
ateral
line,i
ttakespl
aceonlyinf
avoroft hechi
l
drenoft
he
brot
hersorsi
ster
s,whet hert
heyar eoft
hefull
orhalfblood.

Q:Bet
weenthenephewandgr andnephewofthedecedent
,whowi l
linher
it
?
A:Onl
ythenephewwi l
li
nheri
t,t
her i
ghtofr
epr
esentat
ioni
nthecoll
aterall
i
ne
t
akesplacei
nfavoronl
yofthechildr
enofthebrot
hersorsi
ster
s.

Q:I
fanil
legi
ti
mat echi
ldpredeceasedhisparent
s,howwill
hei
nher
itf
rom hi
s
gr
andparent
s?
A:Theyshal
linheri
tbyri
ghtofrepresent
ati
on.(Art
.990,NCC)

Ci
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 Q:Inwhatextentt
herightt
oinheriti
nthecoll
ater
al l
i
ne?
A:Ther i
ghttoinher
itabi nt
estateshal
lnotext endbeyondt
hef
if
thdegr
eeof
rel
ati
onshi
pinthecol
later
alli
ne.(Art
.1010,NCC)

Q:Whenwillt
heSt ateenti
tl
edtosucceedtheenti
reest
ateofadeceasedper son?
A:I
ntheabsenceofcompul sor
yheir
s,sur
vivi
ngspouseandcol
lat
eralr
elat
ivesup
t
othefi
ft
hdegr ee.(Art
.1011)

Q:Whati saccret
ion?
A:Accreti
onisar ightbyvir
tueofwhich,whentwoormor eper sonsarecall
edto
the same inheri
tance,devise orlegacy,the par
tassigned tot he one who
renounces,orcannotr ecei
vehisshare,orwhodiedbeforethetestat
or,i
sadded
orincorporat
edt ot hatofhisco-hei
rs,co-devi
ses,orco-legatees.(Ar
t.1015,
NCC)

Q:Whendoest herightofaccr eti

ont akeplace?
A:I
ntestamentarysuccessi ont herightofaccr et
iont
akespl
aceinthefoll
owi
ng
cas
es:
(1)Predeceaseoft heinsti
tutedhei r
.
(2)I
ncapacityoftheinsti
tutedhei r.
(3)Repudiati
onbyt heinsti
tutedhei r.
(4)Nonfulf
il
lmentofthesuspensi veconditi
onimposedupont
heinst
it
utedhei
r.
(5)I
neffect
ivetestamentarydi spositi
ons.

I
nintestat
esuccessi
ontherightofaccr
eti
ont
akespl
acei
nthef
oll
owi
ngcases:
(
1)Pr edeceaseofalegal
heir.
(
2)Incapacityofal
egalheir
.
(
3)Repudi at
ionbyalegalheir
.

Itmustbe not ed,however,that,st

ri
ctly speaki
ng,itis onl
yi n case of
r
epudiati
ont hatther
ecanbeaccr eti
oninintestat
esuccessionbecausei tisonly
t
hen thatthereisa vacancyi nthe inher
it
ance.However ,whet herthe rul
esof
i
ntest
ate succession oraccret
ion shal
lbe appl ied i
n case ofpredecease or
i
ncapacit
y,theresult
sarethesame.

Q:Whatr equi
sit
es mustexi stsin or derthataccreti
on willtake pl
ace i
n
t
estament ar
ysuccession?
A:Thef ol
l
owingmustexi st:
(1)Thattwoormor eper sonsbecal l
edtothesamei nher
it
ance,ort ot
he
samepor t
ionthereof,proindivi
so;and
(2)Thatoneoftheper sonst huscall
eddi ebef
orethetest
ator
,orrenouncet
he
i
nherit
ance,orbei ncapacitat
edtor ecei
veit
.(Art
.1016,NCC)

Ci
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 Q:Whatisearmar
king?
A:I
tmeanst hatt
herei spar
ti
cul
ardesi
gnat
ionorphysi
calsegr
egat
ionf
rom al
l
ot
hersofthesameclass.

Q:Ifaper
sonrepudi
ateshi
sshar
eint
hei
nherit
ance,t
owhom wi
l
lhi
sshar
ego?
A:Thevacat
edsharewil
lgotohi
sco-
hei
rs.(
Art.1
018,NCC)

Q:Cananhei
rwhorepudi
ateshi
sinher
it
anceber epresent
ed?
A:No,f
oronewhor
enouncescannotber epr
esented.

Q:Howwi ll
theco-hei
rsi
nheri
tift
hevacatedshareisthelegi
ti
me?
A:Shouldt
hepartrepudi
atedbethelegi
ti
me,t heotherco-heir
sshal
lsucceedt
o
i
tint
heirownri
ght,andnotbytheri
ghtofaccreti
on.(Art
.1021,NCC)

Q:Howwi l
lt
heco- heir
sinher
iti
fthevacatedshar
eist
hefreeport
ion?
A:Ifthevacat ed shareisthefreepor t
ion,t
heotherco-hei
rsshalli
nher
itby
accr
etion.(
Art.1021,NCC)

Q:Intestamentarysuccessi
on,towhom thevacantshar
egoi ftherei
snori
ghtof
accreti
onandnosubst it
uti
on?
A:Itshallpasst
ot hel
egalheirsofthet
estat
or,whoshal
lreceiveitwi
tht
hesame
chargesandobl i
gati
ons.(Art
.1022,NCC)

Q:Whatar ethethr
eeki
ndsofrelat
iveincapaci
ty?
A:Thethreeki ndsofrel
ati
veincapacityare:fi
rst
,becauseofpossi
bleundue
i
nfl
uence;second,becauseofpubl i
cpol i
cyandmor al
i
ty;andt
hir
d,becauseof
unwort
hiness.

Q:Whatar et hosedonationst hatareconsideredvoidbyr easonpubl

i
cmor ali
ty?
A:Thefoll
owingdonat i
onsshal l
bevoi d:
1.Those made bet ween per sons who wer e guilt
y of adult
ery or
concubi nageatthet i
meoft hedonation;
2.Thosemadebet weenper sonsf oundguil
tyofthesamecr imi
naloffence,
inconsiderati
onther eof;
3.Thosemadet oapubl icofficerorhiswife,descendantsandascendants,
byr easonofhisof f
ice.( Ar
t.1028,NCC)

Q:Ist
hereaneedthatthespousebeconvi
ctedofadult
ery?
A:No.Ther eneednotbeanycr i
minalconvi
cti
onfort hegui
l
toft
hespouse
becausethegui
l
tofthespousecanbeprovencivi
ll
y.

Q:Whoar ei
ncapabl
eofsucceedi
ngbyr easonofworthi
ness?
A:Thefol
l
owi
ngareincapabl
eofsucceedingbyreasonofunworthi
ness:
(1
) Parentswhohaveabandonedt heirchi
l
drenorinducedthei
rdaught
ers

Ci
vi
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 toleadacor ruptori mmor alli
fe,oratt
empt edagai nsttheirvi r
tue;
(2) Anyper sonwhohasbeenconvi ctedofanat t
emptagai nsttheli
feof
thet estator
,hisorherspouse,descendant s,orascendant s;
(3) Anyper sonwhohasaccusedt het estatorofacr imef orwhi chthelaw
prescr i
besi mpr i
sonmentf orsixyear sormor e,iftheaccusat ionhasbeen
foundgr oundless;
(4) Anyhei roff ullagewho,havi ngknowl edgeoft hevi ol
entdeat hoft he
testator,shouldf ai
ltorepor titt
oanof f
iceroft hel aw wi thinamont h,unless
theaut hor i
ti
eshaveal readyt akenact i
on;t hispr ohibit
ionshal lnotapplyt o
caseswher ein,accor di
ngt olaw,thereisnoobl igati
ont omakeanaccusat ion;
(5) Anyper sonconvi ctedofadul teryorconcubi nagewi t
ht hespouseof
thet estator
;
(6) Anyper sonwhobyf raud,violence,i nti
mi dati
on,orunduei nfl
uence
shoul dcauset hetestat
ortomakeawi ll
ortochangeoneal r
eadymade;
(7) Anyper sonwhobyt hesamemeanspr event sanot herfrom maki nga
will
,orf rom revokingoneal r
eadymade,orwhosuppl ant s,conceal s,oralt
ers
thelatter’ ;
(8) Anyper sonwhof al
sifi
esorforgesasupposedwi l
loft hedecedent .(Art.
1032,NCC)

Q:Whataretheinstancest
hatt
hecausesofunwor thi
nesswil
lnotaf
fect
?
A:I
fthetest
atorhadknowledgeoftheunwor thi
nessther
eofatthet
imehemade
t
hewi l
l
,orif,havingknownoft hem subsequentl
y,heshouldcondonethem i
n
wri
ti
ng.(Ar
t.1033,NCC)

Q:Howmayt hecausesofunworthinesserased?
A:Sinceactsofunwor t
hinessar
eof f
ensesdirect
edagainstthedecedent
,onl
y
thedecedentandnoot hercaner asetheef f
ectsofsuchunwor t
hiness
.Hecan
dothisbypardoni
ngtheof f
enseeit
herexpresslyori
mpli
edly.

Q:Ifaper sonisi
ncapacit
atedtoinheri
t,mayhest i
ll
berepresented?
A:Yes.I fthepersonincapaci
tatedt oinher
ithavechil
drenordescendants,the
l
attershouldacquir
ehisrightt
othel egit
ime.However,theincapaci
tat
edheirhas
no r i
ghtofusuf r
uctoradmi nist
rati
on overt he pr
oper t
yr ecei
ved by the
representat
ive.(
Art
.1035,NCC)

Q:Whatlawgover
nsthecapaci
tyt
osucceedofthedecedent
?
A:Capaci
tyt
osucceedisgover
nedbythelawofthenat
ionofthedecedent
.(Ar
t.
1039,NCC)

Q:Whatar etherequisit
esbeforeaccept
anceorr epudiat
ionisdone?
A:Therequisi
tesbef
or eapersonmayacceptorr epudiateaninheri
tancear
e:
a. Theheirmustbecer tai
nofthedeathofthedecedent ;
b. Theheirmustbecer tai
nofhisr
ightt
othei nheri
tance;and

Ci
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 c. Thehei
rmusthavef
reedi
sposal
ofhi
spr
oper
ty.(
Art
.1043,NCC)

Q:Howi saccept ancemade?

A:Accept ancemaybeexpr essort acit.
Anexpr essaccept ancemustbemadei napubl i
corpr i
vat edocument .A
taci
taccept ancei soner esul t
ingf r
om act sbywhi cht hei ntentiont oaccepti s
necessaril
yimpl ied,orwhi chonewoul dhavenor i
ghtt odoexcepti nthecapaci t
y
ofanhei r.
Act sofmer epr eser vationorpr ovi
sionaladmi ni
str
ationdonoti mpl yan
acceptanceoft heinher i
tancei f,t
hroughsuchact s,thet i
tl
eorcapaci t
yofanhei r
hasnotbeenassumed.( Ar t.1049,NCC)
Ani nher itanceisdeemedaccept ed:
(1)Ifthehei r
ssel l
s ,donat es,orassignshi sri
ghtt oast ranger ,ortohisco
-heirs,ort oanyoft hem;
(2)I ft he heirr enouncest he same,even t hough gr atuitousl
y,fort he
benef itofoneormor eofhisco- heir
s ;
(3)Ifher enouncesi tforapr iceinfavorofal lhisco- heirsindiscri
minately;
buti fthi srenunci ationshoul dbegr atuit
ous ,andt heco- heir
sinwhose
favori ti smadear et hoseuponwhom t hepor t
ionr enounced s hould
devol vebyvi rtueofaccr etion,thei nheri
tanceshal lnotbedeemedas
accept ed.( Art.1050,NCC)

Q:Howisrepudiat
ionmade?
A:Ther
epudiati
onofani nherit
anceshall bemade:
a.byapubl i
ci nstr
ument ;
b.byanaut hent i
cinstrument ;and
c.byapet i
ti
ont ot hecour thavingjuri
sdict
ionoverthetest
ament
aryor
int
estateproceedi ngsbutmustbepr esent
edwithi
n30daysf r
om order
ofcourtfort hedistr
ibutionoftheestate,ot
herwi
se,thi
sisdeemedtobe
anaccept ance.( Art
.1 051,NCC)

Q:Whatiscoll
ati
on?
A:Collat
ion means computi
ng oradding cer
tai
n val
ues tothe est
ate,and
char
gingt hesametot helegi
ti
me.Ital
someanscomput i
ngoraddingcertai
n
val
uestotheestat
e,andchargi
ngthesametothefreepor
ti
on.(Ar
t.1
061,NCC)

Q:Whati st hestatusofownershi
p oftheestat
eoft hedecedent,beforeit
s
par
ti
ti
on,wher ether
earetwoormor eheir
s?
A:Wheret herearetwoormoreheir
s,thewholeestat
eoft hedecedenti
s,befor
e
i
tspart
it
ion,ownedi ncommonbysuchhei rs
,subjectt
ot hepaymentofdebtsof
t
hedeceased.  (
Art
.1078,NCC)

Q:Whatispar
ti
ti
on?
A:Ever
yactwhichisi
ntendedt
oputanendt
oindi
vi
si
onamongco-
hei
rsand

Ci
vi
lLawBarRevi
ewNot
es Page45
 l
egat
eesanddevisesisdeemedt
obeapar ti
ti
on,alt
houghi tshoul
dpurportt
obe
asal
e,anexchange,acompromi
se,oranyot
hertransact
ion.(Art
.1082,NCC)

Q:Canaco- hei
rhavetherighttodemandthedivi
sionoft
heest ate?
A:Ever yco-heirhastherighttodemandt hedivisi
onoft heest at
eunlessthe
t
estatorshouldhaveexpresslyforbi
ddeni
tspart
it
ion,i
nwhi chcaset heper
iodof
i
ndi
vi si
onshallnotexceedtwent yyear
sasprovi
dedi nar
ticle494.Thispowerof
t
het estat
ort
opr ohi
bitt
hedivisi
onappli
est
othelegiti
me.(Art.1083,NCC)

Q:Canapar ti
ti
on,j udi
cial
orextr
a-judicial,ber esci
ndedonaccountofl esi
on?
A:Yes,apartit
ion,judi
cialorext
ra-judicial,mayal sober escindedonaccountof
l
esi
on,whenanyoneoft heco-hei r
sr ecei vedt hi
ngswhoseval ueisless,byat
l
eastone-fourt
h,t hanthesharet owhi chhei sentit
led,consider
ingthevalueof
t
hethingsatthet i
met heywereadj udicated.( Art.1
098,NCC)

Q:Canapar t
it
ionmadebyt het est
atorbeimpugnedont hegr oundoflesion?
A:No,thepartit
ionmadebyt hetestat
orcannotbei mpugnedont hegr oundof
l
esi
on,exceptwhent helegi
ti
meoft hecompulsoryheir
sistherebyprejudiced,or
whenitappearsormayr easonablybepr esumed,thatt
heintenti
onofthet est
ator
wasotherwi
se.(Art.1
099,NCC)

PRESCRI
PTI
ON

Q:Whatar et hetwokindsandper i
odofacquisi
tiveprescripti
onofr i
ghts?
A:Acqui sit
ivepr escri
pti
oniseit
heror di
naryorext r
aordinary.Ordinaryacquisit
ive
prescript
ionr equir
espossessioningoodf ai
thandwi thj ustti
tl
ef ortenyear s.In
extraordi
nar yprescri
pti
on,ownershipandotherr ealri
ghtsoveri mmovablepr oper t
y
are acqui r
ed through unint
err
upted adverse possession t her
eoff orthi
rty years
withoutneedoft i
tl
eorofgoodf ait
h.(Gesmundon,etal .v.CAGRNo.119870,Dec.
23,1 999,citi
nghei sofSegundaMani
r ngdingv.CA,276SCRA601)( Ar
t.11
08,NCC)

Q:Againstwhom maypr escri

pti
onr un?
A:Pr
escr i
ption,bot hacqui si
ti
veandext i
nctive,runsagai
nst
:
a)Mi norsandot heri ncapaci
tatedper sonswhohavepar ents,guardi
ansorot
her
legal r
epr esentati
ves;
b)Abs ent eeswhohaveadmi nist
rators,eit
herappoint
edbyt hem befor
ethei
r
appear ance,orappoi nt
edbyt hecour ts;
c)Per sonsl ivi
ngabr oad,whohavemanager soradmini
str
ator
s;and
d)Jur i
dical persons,excepttheSt ateandi t
ssubdivi
si
ons.(Art
.1108,NCC)

Q:Doespr escri
pti
on run bet
ween husband and wi
fe,orbetween parentsand
chi
ldr
en,orbetweenguardianandward?
A:Prescr
ipt
iondoesnotr unbetweenhusbandandwi f
e,eventhoughtherebea
separ
ati
onofpropertyagr
eeduponinthemar r
iageset
tl
ementsorbyjudi
cial
decree.

Ci
vi
lLawBarRevi
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Neit
herdoespr escr
ipt
ionrunbetweenparent
sandchi
ldr
endur
ingt
hemi nori
tyor
i
nsanit
yorthelatt
er,andbetweenguardi
anandwardduri
ngt
hecont
inuanceofthe
guardi
anshi
p.(
Ar t
.1109,NCC)

Q:Whatar ethet
hingsorpr
operti
esthatcannotbeacqui
redbyprescri
pti
on?
A:Pr oper
ti
es ofspouses,parents and chil
dren,wards and guardi
ans,under
rest
ri
cti
onsimposedbylaw.(Ar
t.1109,
NCC)

Q:Doesprescri
pti
onobt
ainedbyaco-
propri
etororco-
ownerbenef
itt
heother
s?
A:Yes,prescri
pti
onobt
ainedbyaco- pr
opriet
ororaco- ownershal
lbenefi
tthe
ot
hers.(
Art.1
111,NCC)

Q:Whatar ethetwokindsofacquisi
ti
vepr escri
pti
on?
A:Acquisi
ti
veprescri
pti
onofdomi nionand ot herrealr
ightsmaybeordinaryor
ext
raordi
nary.
Ordinar
yacquisi
ti
veprescr
ipt
ionr equirespossessi
onoft hi
ngsi
ngoodfait
hand
wit
hjustti
tl
efort
hetimefi
xedbyl aw.( Ar
t.1117,NCC)

Q:Whatarethecharacter
ist
icsofpossessi
onneededf
orpur
posesofpr
escri
pti
on?
A:Possessi
on has to be i nthe conceptofan owner,publi
c,peacefuland
uni
nter
rupt
ed.(Ar
t.1
1 18,NCC)

Q:Ar e act
sofpossessorychar act
erexecuted i
n virt
ue ofli
cense orbymer e
t
oleranceoftheowneravai
lablef
orpurposesofpossessi
on?
A:No,act sofposses sor
y charact
erexecuted i
n virt
ue ofli
cense orby mere
t
oleranceoft heownershallnotbeavail
ableforthepur poseofpossessi
on.(
Art
.
11
1 9,NCC)

Q:Howiscivi
li
nter
rupt
ionpr
oduce?
A:Ci
vi
li
nter
rupt
ioni
sproducebyjudi
cial
summonst
othepossessor
.(Ar
t.1
123,NCC)

v.Landt
it
lesanddeeds

 TheRegal i
andoct ri
nedoesnotnegat eNATIVETITLEt olandsheldinpri
vat
e
ownershipsi nceti
mei mmemor i
al.InCar i
novs.InsulartheSupremeCour t
rul
edandr ecogni
zedtheexistenceofnativeti
tl
etoland,orownershipofl
and
byFili
pinosbvi r
tueofpossessi onunderacl aim ofowner shi
p si
ncetime
i
mmemor ialandi ndependentofanygr antfr
om theSpani shCr ownasan
except
iont ot het
heoryofjur
ar egal
ia.

 Regist
rat
iondoesnotvestti
tl
e. Iti
smerel
yevidenceofsucht i
tl
eovera
part
icul
arland.Ourl
andregi
str
ati
onl
awsdoesnotgivet
heholderanybet
ter
t
it
lethanwhatheactual
l
yhas.

Ci
vi
lLawBarRevi
ewNot
es Page47
  Registr
ati
onisnotamodeofacquir
ingowner
shi
pbutismerelyaprocedure
t
oes t
abli
shevi
denceoft
it
leoverr
ealt
y.Iti
smerel
yevidenceofownership
previ
ouslyconf
err
edbyanyofther
ecogni
zedmodesofacquir
ingowner
ship.

 A certi
fi
cateoft i
tl
eissuedpursuantt
oapubl iclandpatenthasthesame
vali
dit
yandef f
icacyasacert
if
icateoft
it
lei
ssuedthroughor
dinar
yregi
str
ati
on
proceedings.

 A cert
if
icat
eoft i
tl
eshal
lnotbesubjectt
ocoll
ater
alatt
acknorshal
litbe
al
ter
ed,modi f
iedorcancel
l
edexceptinadir
ectproceedi
ngi
naccordance
wi
thlaw.

 Privat
ecorporat
ionsorassociat
ionsmaynotholdsuchal
i
enablel
andsofthe
public domai
n exceptby l ease,fora peri
od notexceedi
ng 25 years,
renewablefornotmor ethan25year sandnottoexceed1,000hect
aresin
area.

 Pri
vatecor porati
onsorassoci ati
onsaredisqual
if
iedfrom acquiringali
enable
l
andsoft he publi
c domai n.However ,where atthe ti
me t he corporati
on
acquir
edt heland,itspr edecessor
-in-
int
eresthadbeeni npossessi onand
occupat i
onthereofint hemannerandf ortheperiodprescri
bedbyl aw asto
enti
tl
e hi m to r egist
rat
ion in his name,t hen the pr oscri
ption against
corporati
onsacqui ri
ngal ienabl
elandsoft hepublicdomai nexceptt hrough
l
ease doesnotappl yfort he l
and wasno longerpubl i
cl and butpr ivat
e
property.

 I
ft hepossessionofal i
enableand disposabl
eland commenced onl yaft
er
June1 2,1 945,onecanst i
llapplyforregist
rat
ionoft hepr oper
tythrough
prescri
pti
on( Sec.14[2]PRD) . Pr
operti
esclassi
fiedasalienablepubli
cland
maybeconver tedintopri
vatepropert
ybyor di
naryprescri
pti
onof1 0yearsor
extraor
dinaryprescri
pti
onof30year s,wit
houtneedoftit
leorgoodf ai
th.

 Appl
i
cat
ionf
orconf
ir
mat
ionoft
it
leundert
hePRD:

1. The publ
i
c shal
lbe gi
ven not
ice ofthe i
nit
ialhear
ing bymeansof
publ
i
cation,mai
l
ingandposti
ng.Therequir
ementofgi vi
ngnoti
cebyal
lthr
ee
modesisMANDATORY.

 Purposeofpubl i
cati
on-(a)t
oconferj
uri
sdict
ionupont hecour t
overther es;and( b)toappr
isethewholewor l
doft hepending
regist
rat
ioncasesot hatt
heymayassertthei
rright
sori nt
erest
s
i
nt heland,ifany,andopposetheappl
i
cati
on,ifsomi nded.

Ci
vi
lLawBarRevi
ewNot
es Page48
  Alandregist
rati
onisaproceedi
ngi
nrem,andt
heproceedi
ng
r
equir
esconst r
ucti
vesei
zur
eofthel
andasagai
nstal
lper
sons,
i
ncl
udingthestate.

 Publi
cationisanewspaperisnecessar ytoaccordwitht
hedue
processr equi
rement
. Publicat
ion i
n a newspaperofgeneral
ci
rculat
ionremainsanindi
spensabl
epr ocedur
alrequi
rement
.

2. AMENDMENT OF THE APPLI CATION - Wher et he amendment

consist
si nasubstanti
alchangeintheboundari
esorincr
easei
nar eaofl
and,
orinvolvetheincl
usionofadditi
onalare,t
heamendmentshallbesubjectto
thesamer equi
rementofpubl i
cat
ionandnoticeasinthecaseofanor i
ginal
appli
cation.

Wherenopubli
cati
onhasevenbeenmadeexceptt heini
ti
alpubli
cati
on,
and thi
sdid notincl
udet headdi t
ionalar
ea,t heregi
str
ati
oncour thad no
j
urisdi
cti
onoverthesaidincludedandaddi t
ionalar
eaandi t
sadj udi
cati
ont o
theappli
cantovert
headditionalar
eaisanulli
ty.

3. ORDEROFGENERALDEFAULT–i fnoper sonappearsandanswer s

wit
hint hetimeall
owed,thecourtshal
l,up[
onmot ionoftheappli
cat
ion,or
der
adef aulttobeent er
edandr equi
retheappl i
canttopresentevi
dence.The
not
icest ates:TO ALLWHOM I TMAYCONCERN” -al ltheworldaremade
parti
esdef endantsand shal
lbei ncl
uded inthedefaultorder
,thegener al
defaultisaddr
essedtothewholewor l
d.

4. ORDER OF SPECI AL DEFAULT – when an appear ance has been

ent
eredandananswerfi
led,adefaultordershallbeenter
edagainstpersons
whodidnotappearandanswer.Thiss peci
alorderofdefaul
tisdi
rectedonly
agai
nstt
hosewhodidnotentert
heirappearanceandf i
leananswer.

5.WHEN JUDGMENTBECOMESFI NAL–t hejudgmentr enderedinal and

regi
strati
oncasebecomesfi
nalupontheexpirat
ionoffi
fteen(15)daystobe
countedf rom t
hedat
ethepart
yconcernedreceivesnot
icethereof
,incl
uding
theSolici
torGener
alwhoappearsf
ortheStat
e.

6. Wr
itofpossessi
oni
nlandr
egi
str
ati
oncases–

Af
tert
heregi
str
ati
onofalandisdecreedi
nfavoroft
heappli
cant,heas
wellasanysubsequentpur
chaseroftheproper
tyhasther
ightt
othetit
leand
possessi
onoftheland,andtothatendhemayaskt hepropercour
tfort he
i
ssuanceofawr i
tofpossessi
on,providedthesamehasnotbeeni ssued
before.

Ci
vi
lLawBarRevi
ewNot
es Page49
 Awr i
tofpossessi
onmaybei ss
uednotonl
yagainstthepersonwho
hasbeendef eat
edinar egi
str
ati
oncasebutal
soagai
nstanyoneunl awf
ull
y
andadver sel
yoccupyingthelandoranyporti
onther
eofDURI NG theland
regi
str
ati
onpr oceedi
ngsUPTOTHEI SSUANCEofthefi
naldecree.

7. Wri
twillNOTissueagai
nstper
sonst
aki
ngpossessi
onAFTERi
ssuance
off
inal
decree

Whent hepar tiesagai nstwhom awr itofpossessi

oni ssoughtent ered
i
ntopossessionaf tert hei ssuanceoft hefi
naldecree,andnoneoft hem had
beenapar tyi nther egistrati
onpr oceedings ,t
hewr i
tofpossessi onwi l
l,not
i
ssue.Aper sonwhot ookpossessi onoft hel andafterfi
nal;adjudicat
ionof
thesamei nr egist
rationpr oceedingscannotbesummar i
l
youst edthrougha
writofpossessionsecur edbyamer emot ionandt hatregardlessofanyt i
tl
e
orlackoft i
tl
eofper sonst oholdpossessi onoft helandi nquest i
on,t hey
cannotbeoust edwi thoutgi vingthem thei
rdayi ncourtinproperindependent
proceedi
ngs. Ther emedyi stoinsti
tuteasepar at
eact i
onf orunlawfulent r
y
ordetai
nerorf orreinvi ndicatoryacti
on,asthecasemaybe.

8. Decr
ee ofr egi
str
ation cannotbe i ssued unti
lafterthe judgment
becomes f inal- Execut i
on pending appeali s notapplicabl
ei nland
regist
rati
on pr oceedi
ngs. I tisf r
aughtwi th dangerous consequences.
I
nnocentpur chasersmaybe mi sl
ed into purchasi
ng realproperti
esupon
rel
ianceonaj udgmentwhi chmayber eversedonappeal .

9. TheTor rensti
tl
ebecomesi
ndefeasi
bleandi
ncont
rover
ti
ble af
terone
yearf
rom t
hei
ssuanceoft
hedecr
ee.

1
0. REMEDI
ESofaggr
ievedpar
ty:

a. Mot
ionf
ornew tri
alorreconsi
derati
on– wit
hintheper
iodf
or
t
aki
nganappeal
(15daysfrom r
eceiptoft
hedecisi
on)

GROUNDS(
FAME;newl
ydi
scover
edevi
dence)

b. Appeal
–wi
thi
n15daysf
rom r
ecei
ptofacopyoft
hedeci
si
on

c. Rel
i
eff
rom j
udgmentorr
eli
eff
rom deni
alofappeal

Veri
fi
ed,fi
ledwi t
hin60 daysaf t
ert hepet
it
ionerlear
nsoft he
j
udgment,f i
nalorder,orotherpr
oceedingtobesetasi de,and
notmorethan6mont hsaft
ersuchjudgmentorfinalorderwas
ent
ered,orsuchpr oceedi
ngwast aken

Ci
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es Page50
 d. Revi
ewofDecr
ee(
Sec.32PD1
529)

Wi t
hin one (1) year f
rom t he issuance of t
he decree of
regist
rat
ionandthattheregist
rati
onwaspr ocur
edthr
oughactual
fraudprovidedthatthepropertyhas notpassedtoaninnocent
purchaserforval
ue

e. Reconveyance(Sec.53and96)– providedt
hepr
oper
tyhasnot
passedtoaninnocentpur
chaserf
orvalue

f. Damages(Sec.32)
g. Cl
aim agai
nsttheAssuranceFund
h. Reversi
on(Sec.101,CANo.1 41
i
. Annul
mentofJudgment
k. Cri
minalPr
osecutionundertheRevi
sedPenal
Code

11. CADASTRALPROCEEDI NGS–i ntheabsenceoff r

aud,ti
tl
etolandin
cadastralpr
oceedingsisvested ont heowner ,upont heexpir
ati
onoft he
periodt oappealfrom t
hedeci si
onoradj udicati
onbyt hecadastr
alcourt
,
withoutsuchappealbeingper f
ected,andf r
om t hatt
imethelandbecomes
regist
eredproper
tywhichcannotbel ostbyadversepossessi
on.

12. Prohi
bit
ionagainstal
ienat
ionofl
andsacqui
redundert
heHOMESTEAD
andFREEPATENTPr ovisi
ons

Sec.118.Excepti nfavoroft hegover nmentoranyofi tsbr anches,

unit
sori nst
it
uti
onsorlegallyconstit
utedbanki ngcorp.l andsacqui redunder
thefreepatentorhomest eadpr ovi
sionsshallnotbesubj ecttoencumbr ance
orali
enationfr
om thedateoft heappr ovaloftheapplicationandf orat erm of
fi
veyear sfr
om andaf t
erthedat eofi ssuanceofthepat entorgr antnorshall
theybecomel i
abletot hesat i
sfact
ionofanydebtcont r
actedpr i
ort othe
expir
ationofsai dperi
od;buti mpr ovement sorcr opsont helandmaybe
mortgagedorpl edgedtoqualif
iedper sons,associ
ati
ons ,orcor porat
ions.

Noali
enati
on,transfer
,orconveyanceofanyhomest eadaft
er5years
and bef
ore 25 yearsafterthe i
ssuance oft
it
le shal
lbe val
id wi
thouthe
appr
ovaloft
heSecr et
aryofAgricul
tur
eandNaturalResour
ces,xxx.

Anyencumbr ancemadeont hepar celoflandacquir

edunderaf ree
pat
entorhomesteadwi t
hinf
iveyear
sf r
om thegrantofsuchpat
entresult
sin
t
hecancell
ati
onofthegrantandthereversi
onofthelandtopubl
i
cdomai n.

Theprohi
bit
ionst
art
sfrom t
hedat
eofapprovalupt
oandincl
udi
ngthef
if
th
yearf
rom andaf t
erthedateoft
hei
ssuanceofthepat
entorgr
ant
. The

Ci
vi
lLawBarRevi
ewNot
es Page51
 patentisconsi
deredissuedoncetheorderf
ori
tsi
ssuancei
spromulgatedand
theref
ore,thefiveyearperiodiscomputedfr
om thi
sdateandnotf r
om the
date ofr egi
str
ati
on withthe Regi
sterofDeedsorf rom t
he date ofthe
certi
fi
cateofti
tl
e.

13. PERI ODOFREPURCHASE–Whenmor tgageandconveyanceall

owed
al
ready,t
he5- yearperi
odf orlegalr
edempt
ionst
art
sfrom thedat eoft
he
execut
ionofthedeedofsal e,andnotfr
om thedat
eofr egist
rat
ionint
he
off
iceoft
heRegisterofDeeds .

Thefiveyearperi
odofr edempt i
onf i
xedi nSec.11
9ofthePLAofhomest ead
soldatext
raj
udici
alfor
eclosurebeginstor unfr
om thedat
eaf t
ertheexpirati
on
ofthe1yearper i
odofr epurchaseallowedi nanextraj
udici
alfor ecl
osure.
Fiveyearperiodstart
st orunaf tertheexpirat
ionoftheredempt ionper i
od
underAct.3135,asamended,wi t
hinwhi chtoexer
ciset
herightt
or epurchase
underthePLA.

1
4.FORECLOSURESOFMORTGAGE:

 MORTGAGOR’ –Aftert
heexecution
ofa r ealestat
e mor t
gage,the mort
gagorhas an equity of
redemption exerci
sabl
e withi
nt he peri
od sti
pulat
ed int he
mor t
gagedeed. I ncaseofj udi
cialf
orecl
osure,theequit
yof
redemptionsubsist
saftert
hesaleandbeforeitisconfi
rmedby
thecourt.

 However,incaseofj udi
cialfor
eclosur
eofmor tgageinf avorof
bankingi
nsti
tut
ions,Sec.78oft heGeneralBankingLawsgr ant
s
themor t
gagorar i
ghtofr edemptionwhichmaybeexer ci
sed
withi
noneyearf rom t
hesal e–whi chi
sf r
om ther egi
str
ationof
thesalewit
htheregist
erofdeeds.

vi
.obl
i
gat
ionsandcont
ract
s

SOURCESOFOBLIGATION
Art
.11
57.
 Obli
gat
ionsar i
sefr
om:
(1) Law;
(2) Contr
acts;
(3) Quasi-
contracts;
(4) Actsoromissionspunishedbyl
aw;and

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 (
5) Quasi
-del
i
cts.(
1089a)

DUTI
ESOFDEBTORI
NANOBLI
GATI
ONTOGI
VEADETERMI
NATETHI
NG(
See 
Art
s.
11
63,11
64,1
166.
)

1
. Topr
eser
veort
akecar
eoft
het
hingduewi
tht
hedi
l
igenceofagood
f
atherofaf
amil
y

DI
LIGENCE OF A GOOD FATHER OF A FAMILY– or
dinar
y car
e orthat
di
li
gencewhichanaver
ageorreasonabl
ypr
udentper
sonwouldexerci
seoverhis
ownpropert
y

NOTE:
 RuleonStandardofCar
e
• Thatwhichthelawrequi
res;or
• Thatsti
pul
atedbytheparti
es;or
• Intheabsenceofthetwo,dil
igenceofagoodf
atherofaf
ami
l
y

2. To del
iverthef
rui
tsofthethi
ng:Ri
ghtt
othef
rui
tsoft
het
hingf
rom t
he
ti
met
heobli
gati
ontodel
iveri
tari
ses.

WHENOBLI
GATI
ONTODELI
VERARI
SES

• GENERALRULE:
 From t
heti
meoft
heper
fect
ionoft
hecont
ract(
i.
e.
meet
ingoft
hemindsbet
weenthepar
ti
es)

• EXCEPTIONS
a. whent hepar t
iesmadeast i
pulat
ionasr egardsther i
ghtoft
hecredi
tor
tothef
rui
tsofthethi
ng
b. when t he obl
igat
ion i
ssubjectto a suspensive condi
ti
on orperi
od;
ari
sesuponfulf
il
l
mentoft hecondi
ti
onorarri
val oft
heper i
od

KI
NDSOFDELAY
1
. Mor
aSol
vendi
– defaul
tonthepartofthedebtor
:
• Mor
aSol
vendi
Exr e–  def
aulti
nrealobli
gat
ions
• Mor
aSol
vendi
Exper sona–  
defaulti
npersonalobl
i
gat
ions

• GENERALRULE:Thoseobl
igedtodeliverort odosomet hi
ngincuri
n
delayfr
om theti
met heobli
geejudiciall
yorextr
ajudi
ciall
ydemands
fr
om them t
he f
ulfi
l
lmentoft heirobl
i
gat
ion.

• EXCEPTIONS 
(nodemandnecessar y)
a. Whent heobligat
ionort
helawexpr essl
ysodeclare;or
b. Whenf rom thenatur
eandt hecir
cumst ancesoftheobli
gat
ioni
t
appear
s t
hatthedesignat
ionofthet imewhent hethingi
stobe

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 deli
ver
edort
he ser vi
cei stober enderedwasacont r
oll
i
ngmot i
ve
fort
heest
abl
ishment ofthecont
ract;or
c. When demand woul d be useless,as when t
he obli
gorhas
r
ender
edi
t beyondhi spowertoper f
orm

2. Mor a Acci
piendi
 – def
aulton par
tofcredi
torwhen he unj
ust
if
iabl
y
ref
usest
oaccepttheperformanceoftheobl
i
gat
ion.

3. Compensat io morae– 
both part
ies ar
e in def
ault(
in r
eci
procal
obl
i
gat
ions)
;ther
eisnoacti
onabl
edefaul
tonthepar
tofbot
hpar
ti
es

RULEONFORTUI
TOUSEVENT:

• GENERALRULE:Nol
i
abi
l
it
yforf
ort
uit
ousevent
• EXCEPTI
ONS:

1. Whenexpr essl
ydecl aredbyl aw (badfait
h,subj ectmatt
eri s
gener
ic,debt
orisindelay)
2. Whenexpr essl
ydeclaredbyst i
pul
ati
onorcontract
3. Whennat ureofobli
gati
onr equi
resassumpti
onofr i
sk
4. Whent heobl i
gorisi ndef aul
torhaspr omised to del
i
verthe
samethingtotwoormor eper sonswhodonothavet hesamei nt
erest
(Ar
t.1
1 65[
3])

REMEDI
ESAVAI
LABLETOCREDI
TORSFORTHESATI
SFACTI
ONOFTHEI
RCLAI
MS

1. Exactfulf
il
lmentoft heobl i
gati
onbyspeci f
icorsubst i
tuteperformance
withar i
ghttodamagesi nei thercase;
2. I n case ofr eciprocalobl igati
ons,pet i
ti
on the cour tt oresolve the
cont
ract;
3. Pur sue the leviable( notexemptf rom at t
achmentundert he law)
propertyofthe debtor;
4. Acci ondirecta (
Ar t
s .1729and1 652):
Rightoft helessortogodi rectl
yto
sublessee forunpai dr entsoft he lessee.Ri ghtoft he l
abor ersor
personswho fur
nish mat er
ial
sf ora piece ofwor kunder t
aken bya
contractortogodi r
ectlyto t
heownerf oranyunpai dclaimsduet othe
contractor
5. Acci onsubr ogatoria –t obesubr ogatedt oalltherightsandact ionsof
thedebt or savet hosewhi char einherenti
nhi sperson

6. Acci
onPauli
ana– 
aski
ngthecourtt
oresci
ndortoimpugnallt
heacts
whi
cht
he debtormayhavedonetodefr
audthecr
edi
tor
s(Art
s.1
380- 1
389)

PUREANDCONDI
TIONALOBLI
GATI
ONS

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 PURE –onewhoseef fect
ivi
tyorext
ingui
shmentdoesnotdependuponthe
ful
fi
l
lmentornon-ful
fi
l
lmentofaconditi
onorupontheexpi
rat
ionofaper
iod
andisdemandabl
eatonce

CONDITIONAL – onewhoseeff
ecti
vi
tyissubor
dinat
edtothef ul
fi
l
lmentor
non-f
ulf
il
l
mentofaf ut
ureANDuncer
tai
neventoruponapasteventunknown
tot
hepar t
ies

CONDITI
ON 
- Fut
ure and uncer
tai
n eventora pasteventunknown t
othe
par
ti
es

1
. Suspensi
ve  – happeningofconditi
ongivesri
setoobl
igat
ion
• Effect
s:
a. Ef fectivi
tyret
roactstothedayoftheconsti
tuti
onoft
heobl i
gat
ion
b. No r etr
oactivi
ty with ref
erence to fruit
s or i
nter
est and
pr
escr
ipt
ion
c. Cr editormaypr eser
ver i
ght
s
d. Debt or–r ecoveryofpaymentbymi st
akeorevenw/ omi st
ake

I
MPOSSI
BLEANDI
LLEGALCONDI
TIONS

• GENERALRULE: Theyshall annultheobli

gati
on whi
chdependsupont
hem
• EXCEPTI
ONS:
a. pre-exi
sti
ngobligati
on
b. ifobl
igati
onisdivisi
ble
c. insimpleorremuner atorydonati
ons
d. test
ament ar
ydispositi
ons
e. conditi
onsnottodoani mpossibl
ethi
ng

OBLI
GATI
ONS WI OD – 
TH A PERI Anobli
gat
ionwhichdependsonaf
utur
eand
cer
tai
nevent(
See 
Art
s1193,1196)

WHEN STIPULATION SAYS “PAYABLE WHEN ABLE”– ITIS WITH A PERI

OD,
REMEDY:
1. Agreementamongparti
es
2. Cour tshal
lfi
xper
iodofpaymentwhenpar
ti
esunabl
etoagr
ee

KI
NDS:
1. Resolutor
y (in di
em )– demandabl
e atonce butt
erminat
esupon
ar
rival
ofthedaycer t
ain
• Daycertai
n–thatwhi
chmustnecessar
il
ycome,al
thoughi
tmay
notbeknownwhen
2. Suspensi (exdi
ve  e )–obl
i
gat
ionbecomesdemandableont heday

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st
ipul
ated

TERM CONDI TION

I
ntervalof t ime whi ch isf uture and Factoreventwhi chi sfut
ureoruncertai
n
certain orapasteventunknownt othepart
ies
Ti
me w/ c must necessar il
y come Fut ureanduncer tainfactoreventwhich
al
thoughi tmaynotbeknownwhen mayormaynothappen
Exerts an i nfl
uence upon t he time of Exer t
s an i nf
luence upon t he very
demandabi li
ty orext i
nguishmentofan exi stenceoft heobl i
gati
onit
self
obli
gat i
on
Does nothave any r et
roactive effect Hasr etr
oacti
veef f
ect
unless t herei s an agr eementt ot he
contr ary
Wheni ti
sleftexclusi
vel
yt othewi ll
ofthe Wheni tislef
texclusivel
ytothewil
lofthe
debt or ,t
heexi st
enceoft heobl i
gati
oni s debtor,theobli
gationisvoid
aff
ect ed

WHENCOURTSMAYFI
XPERI
OD:

1. I
ft he obl
igat
ion does notf i
x a peri
od,butf r
om its nat
ure and
ci
rcumst
ancesit canbei nf
erredthataper
iodwasint
endedbytheparti
es
2. I fthedurati
onoftheperioddependsuponthewil
lofthedebtor
3. I ncaseofr eci
procalobli
gati
ons,whenther
eisajustcauseforfi
xi
nga
per
iod
4. I fthedebtorbi
ndshimsel fwhenhismeansper
mithimtodoso

PERI
ODFORWHOSEBENEFI
T

• GENERALRULE:  Whenaper i
odisdesignatedfortheperformanceor
ful
fi
ll
mentofanobl i
gation,itispresumedt ohavebeenest abl
ishedforthe
benefitofbothcredi
toranddebt or
.
• EXCEPTION: Wheni tappearsfrom t
het enoroftheobli
gati
onorother
cir
cumst ancesthattheper iodhasbeenest abli
shedinfavorofoneort he
other.

PERI
ODFORTHEBENEFI
TOFTHECREDI
TOR

• Credit
ormaydemand t heful
fi
l
lmentoftheobl
igati
onatanyti
mebutt
he
debtorcannotcompel
himtoacceptbef
oret
heexpir
ati
onoft
heper
iod

PERI
ODFORTHEBENEFI
TOFTHEDEBTOR

• Debt
ormay oppose any pr
emat
ure demand oft
he cr
edi
torbuthe may

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 renouncet hebenef i
toft heper i
odbyper f
orminghisobligat
ioni
nadvance
(Manr esa;WHENDEBTORLOSESRI GHTTOPERI OD:
• I
nsol vencyofdebtor,unl
esssecur it
yprovi
ded
• Didnotdel i
versecuri
typromi sed
• I
mpai redsecur
it
yt hr
oughhi sownact sorthroughfor
tui
touseventunl
esshe
givesnewsecur it
iesequallysati
sfactor
y
• Violatesundert
akinginconsiderati
onofextensionofperi
od
• Attempt stoabscond

FACULTATI
VE -
 onl
yonepr estat
ionhasbeenagr
eeduponbutanot
hermaybe
gi
veninsubst
it
uti
on

EFFECTOFLOSSORDETERI
ORATI
ONTHRUNEGLI
GENCE,DELAYORFRAUDOF
OBLIGOR:

• Oft
hingi
ntendedassubst
it
ute-noli
abi
l
it
y
• Oft
hesubsti
tut
eaft
ersubst
it
uti
onismade–wi
thl
i
abi
l
it
y

ALTERNATIVE –boundbydi
ff
erentpr
estat
ionsbutonlyonei
sdue
RIGHTOFCHOI CEINALTERNATIVEOBLI GATIONS• As a gener
alr
ule
t
herightofchoi
ce bel
ongst
odebtor

EFFECTOFLOSSOFOBJECTSOFALTERNATI VEOBLIGATI
ONS
1
. I
fther
ightofchoi
cebel
ongst
othedebt
or

• I
ft hroughaf ort
uit
ouseventallwerelost
,debtorcannotbeheldli
able
fordamages
• I
f1ormor ebutnotallofthethi
ngsarelostoroneorsomebutnotallof
t
hepr estat
ionscannotbeper for
medduet ofort
uit
ouseventorf
aultof
t
hedebt or,credit
orcannotholdthedebtorli
abl
efordamagesbecause
t
hedebt orcanst i
ll
complywithhisobli
gati
on
• I
fal lt hi
ngs,exceptone,wer el ost
,t he debt
ormustcompl y by
performingt hatwhichremain

• I
fall
werelostbyfaul
tofthedebt
ort
helateri
sli
abl
efort
heval
ueoft
he
l
astt
hingorservi
cewhichbecameimpossibl
e

2. Ifri
ghtofchoi cebelongstot hecredit
or
• If1oft hethi
ngsi slostthroughaf ortui
tousevent,thedebt orshall
per f
orm t he obl
i
gat i
on bydel i
vering thatwhi ch t
he credi
tors houl
d
choose f r
om among t he remainderort hatwhich remainsifonl y1
subsists
• Ifthel ossof1oft hethingsoccur sthrought hefaul
tofthedebt or,t
he
creditormaycl ai
m anyoft hosesubsi sti
ngort hepriceofthatwhi ch,

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 through the faul
toft he former,has di
sappear
ed wit
har i
ghtto
damages
• I
fal lt
hethingsarelostt
hroughthefaul
toft
hedebtor,t
hechoi
cebythe
credit
orshallfal
lupont hepri
ceofany1oft hem,alsowit
hindemnit
y
fordamages.

ALTERNATI
VEvs.FACULTATI
VE

ALTERNATI VE FACULTATI VE
a)Varioust hingsareduebutt hegi vi
ng a)Onl yonet hingisduebutasubst it
ute
pri
nci pallyofonei ssuffi
cient may be gi
ven t
o render
payment /f
ulfi
ll
menteasy
b)I
fone ofpr est
ati
onsi si l
legal,ot hers b)I fpr incipalobligations is void and
maybeval i
dbutobligationr emai ns there is no necessi ty of gi ving t he
substi
tute;nul l
it
yofPcar ri
eswi t
hi tnull
ity
ofS
c)Ifitisimpossi bl
et ogiveal lexceptone, c)I fitisi mpossibletogi vet heprincipal,
thelastonemustst i
llbegi ven thesubst it
utedoesnothavet obegi ven;
i
fi tisimpossi bletogi vet hesubst i
tute,
theprincipal muststi
llbegi ven
d)Rightt ochoosemaybegi venei t
hert o d)Ther ightofchoi cei sgivenonl yt othe
debtororcr editor debtor
CULTATI VE
JOINTANDSOLI DARYOBLI GATI ONS( See  Art
s.1207–1 222)EXCEPTI ONSTOTHE
PRESUMPTI ON
1. whenexpr esslyst atedthatt hereissolidarity
2. whent helawr equi ressolidari
ty
3. whent henat ureoft heobl igati
onr equiressol i
dari
ty
4. whenachar georcondi ti
oni simposeduponhei rsorl egateesandt he
testament expr esslymakest hechar georcondi ti
oninsolidum ( Manresa)
5. when a sol i
dar yr esponsi bi
li
tyi simput ed bya f i
nalj udgmentupon
sever al defendant s(Guti
er r
ezv.Gut i
errez)

EFFECTSOFJOINTLIABI
LITY
1. Demandononepr oducesdelayonlywit
hr especttothedebt
2. Inter
rupt
ioni
npaymentbyonedoesnotbenef i
torprejudi
cet
heot
her
3. Vicesofonedebtortocredi
torhasnoeffectont heothers
4. Insol
vencyofonedebtordoesnotaf f
ectotherdebtors

JOI
NTDIVISI
BLEOBLI GATIONS
1. Eachcr edi
torcandemandf ort
hepaymentofhispropor
ti
onat
eshar
e
ofthecredit
,whil
eeachdebtorcanbehel
dli
abl
eonlyfort
hepaymentofhi
s
propor
tionat
eshareofthedebt
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 2. Aj oi
ntcredit
orcannotacti
nrepr
esent
ati
onoft
heothercr
edi
tor
swhile
ajoi
nt debtorcannotbecompell
edtoanswerf
ort
heactsorli
abil
i
tyof
theot
her debt ors

JOINTINDIVI
SIBLEOBLI GATI
ONS
1. Iftherear
e2ormor edebt
ors,theful
fi
l
lmentoforcompliancewit
hthe
obli
gati
onrequirestheconcurr
enceofallthedebtors,al
thougheachf orhi
sown
share.Theobl
igati
oncanbeenforcedonl
ybypr oceedi
ngagainstal
lofthedebt
ors.

2. I ft
herear
e2ormor ecredi
tor
s,t
heconcurr
enceorcollect
iveactofal
l
the credi
tor
s,al
though each f
orhisown shar
e,isalso necessaryforthe
enforcementoftheobl
i
gation

EFFECTOFBREACH
• I
foneoft hejointdebt or
sf ail
stocompl ywi t
hhi sunder t
aking,theobl igati
on
cannol ongerbef ulfi
ll
edorper f
ormed.Consequent l
y,iti
sconver tedintoone
ofi ndemni tyfordamages.I nnocentj oi
ntdebt orshallnotcont ri
but et othe
i
ndemni tybeyondt hei rcorrespondingshareoft heobligati
on.ILI
TY
S
I
NDI VISI BILI
TY SOLIDARI TY
Refer stot hepr estat
ionwhi chconst i
tut
es Ref erstot helegaltieandconsequent l
y
theobj ectoft heobl i
gation to
Thesubjectsorpar ti
esoft heobligati
on
Plurali
tyofsubj ectsi
snotr equired Plur
ali
tyofsubjectsisindispensable
I
ncaseofbr each,obl i
gationi sconver t
ed Whent her eisli
abili
tyont hepar toft he
i
nto1ofi ndemni t
yfordamagesbecause debt ors because of t he br each, the
ofbr each,i ndivisi
bil
i
tyoft heobl i
gati
oni s soli
dari
lt
yamongt hedebt orsremai ns
terminat ed
OLIDARI TY
SOLI DARY–  mustbeexpr essedi nstipul
ati
onorpr ovi
dedbyl aw orbynat ureof
obli
gat ion

• I
nst
ances 
wher
elawi
mposessol
i
dar
yobl
i
gat
ion:

a. Obli
gati
onsar i
si
ngf r
om tor
t
b. Obli
gati
onsar i
si
ngf r
om quasi
-contract
s
c. Legalprovi
si
onsr egardi
ngobl
igati
onofdeviseesandlegat
ees
d. Li
abil
it
yofprincipal
s,accompl
ices,andaccessori
esofafel
ony
e. Bail
eesincommodat um

• EFFECTS:
a. Paymentmade bef ore debtis due,no int
erestcan be char
ged,
ot
herwi
se–inter
estcanbecharged
b. I nsol
vencyofone–othersarel
i
ableforshar
epro-rat
a
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 c. I
fdifferenttermsandcondit
ions– col
l
ectonl
ywhati sdue,lat
eron
col
l
ectf rom any
d. Nor eimbursementifpaymentismadeafterprescr
ipt
ionorbecame
i
l
legal
e. Remi ssi
onmadeaf t
erpaymentismade– co-debt orst
il
lenti
tl
edto
rei
mbur sement
f. Eff
ectofi nsol
vencyordeat
hofco-debtor–st
il
lli
abl
eforwholeamount
g. Faultofanydebt or–everyonei sresponsi
ble–pr i
ce,damageand
i
nter
est
h. Compl
ete/per
sonaldef
ense–t
otalorpar
ti
al
(upt
oamountofshar
e
onl
y)i
fnotper
sonal
 t
ohim

EFFECTOFLOSSORI MPOSSIBILITYOFTHEPRESTATI ON:

1. I
fwi
thoutf
aul
t–nol iabi
li
ty
2. Ifwi
thfaul
t–ther
eisl i
abi
li
ty(
alsofordamageandi
nter
est)
3. Lossduetofort
uit
ouseventaf terdef
aul
t–ther
eisl
iabi
li
ty(becauseof
defaul
t)

DI
VISI
BLEANDI
NDI
VISI
BLEOBLI
GATI
ONS(
SeeAr
ts.1
223–1
225)

DI
VISI
BLE-   obli
gat
ionthati
scapabl
eofpart
ialperf
ormance
• Executionofcert
ainnoofdayswork
• Expressedbymet ri
caluni
ts
• Natureofobli
gati
on–susceptibl
eofpart
ialf
ulf
il
l
ment

I
NDI
VISIBLE– onenotcapabl eofpar
ti
alper
for
mance
• Togi vedef
init
ethings
• Notsusceptibl
eofpar t
ial
perf
ormance
• Providedbylaw
• Intenti
onofparti
es

OBLI
GATI ONSWI THAPENALCLAUSE( SeeArts.1
226–1 230)
One to which an accessory under
taki
ng is att
ached forthe pur
pose of
i
nsuri
ng it
sper f
ormancebyvi rt
ueofwhi cht heobligorisboundtopaya
st
ipul
atedindemnit
yorper f
orm asti
pulat
edpr est
ati
onincaseofbreach

CHARACTERI STICSOFPENALCLAUSES:
1. Subsi
diary- 
Asageneral
rul
e,onlypenalt
ycanbedemanded,pri
nci
pal
cannotbe demanded,except:Penal
tyisj
ointorcumul
ati
ve
2. Excl usi
ve-  t
akespl
aceofdamage,damagecanonl ybedemandedin
t
hef
f. cases:

a. St
ipul
ati
on–gr
ant
ingr
ight

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 b. Ref
usal
topaypenalt
y
c. Wit
hdolo(notofcr
edit
or)

CAUSESFORREDUCTI ONOFPENALTY:
1. Part
ial
/i
rr
egul
arperf
ormance
2. Penal t
yprovi
dedisi
niqui
tous
/unconsci
onabl
e

MODESOFEXTI NGUISHMENTOFOBLI GATI

ON(
Art
.1231
):
1. Paymentorper formance
2. Los soft hethi
ngdue
3. Condonat i
onorr emi
ssionofdebt
4. Conf usionormer gerofri
ghts
5. Compensat ion
6. Novat ion
7. Annul ment
8. Resci ssi
on
9. Fulfi
ll
mentofr esolut
orycondit
ion

PAYMENTORPERFORMANCE-del
i
ver
yofmoneyandper
for
mance,i
nanyot
her
manneroft
heobl
i
gat
ion

REQUI
SITESFORVALI DPAYMENT/ PERFORMANCE
1. Wi t
hrespecttoprest
ati
onit
self
a. I denti
ty
b. I ntegri
tyorcomplet
eness
c. I ndivi
si
bil
it
y

2. Wit
hrespecttoparti
es- mustbemadebypr operpar
tytopr
operpar t
y
a. Payor
i
. Payor-t heoneper f
orming,hecanbet hedebtorhimselforhi
s
heir
s orassi gns orhis agent,oranyone inter
ested inthe
ful
fi
ll
mentoft heobli
gati
on;canbeanyoneasl ongasi tiswit
h
thecredi
tor'
sconsent

i
i
. 3RD per
son pays/
perf
orms - onlyt he credi
tor
's consent
;If
perf
ormanceisdonealsowit
hdebt or'sconsent-het akesthe
pl
aceofthedebtor
.Therei
ssubrogati
onexceptifthe3rd per
son
i
ntendeditt
obeadonation

i
i
i. 3rd 
personpays/
perfor
mswi t
hconsentofcr
edi
torbutnotwit
h
debtor
'sconsent
,therepaymentisonl
ytotheextentthatt
he
paymenthasbeenbenefici
alt
odebt
or

b. Payee

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 i
. Payee-credi
tororobl
i
geeorsuccessori
nint
erestoft
ransf
eree,
oragent

i
i
. 3r
d person-i fanyoft hef f.concur:
• I
tmusthaver edoundedt otheobl
igee'
s
• benefitandonl yt otheextentofsuchbenefi
t
• I
tf al
lsunderar t1 241,par1 ,
2,3–t hebenefi
tist
otalso,
performancei s total

i
i
i. Anyoneinpossessi
onofthecredit–butwi
l
lappl
yonl
yifdebt
hasnotbeenprevi
ousl
ygarni
shed

PAYMENTMADETOANI NCAPACITATEDPERSON,VALIDIF
1. I
ncapacit
atedpersonkeptt
hethi
ngdel
i
vered,or
2. Insofarasthepaymenthasbeenbenef
ici
alt
ohim

PAYMENTTO3RD  PARTYNOTAUTHORI ZED, VALI

DIFPROVEDANDONLYTOTHE
EXTENTOFBENEFIT;PRESUMEDI F
1. Aft
erpayment ,3r
d personacquirest
hecredit
or’
2. Cr edi
torrat
if
iespaymentto3r d 
person
3. By creditor
’ ,debt orhas been led t
o make t
he payment
(est
oppel
)

PAYMENT MADE I N GOOD FAI TH TO A PERSON IN POSSESSI

ON OF CREDIT
SHALLRELEASEDEBTOR;REQUI SITES:
1. Paymentbydebt ormustbemadei ngoodfai
th
2. Cr edi
tormustbe i n possessi
on ofthe cr
editand notmer
elythe
evi
denceofindebtedness

• NOTE:Wi
thr
espectt
oti
meandpl
aceofpayment-
 mustbeaccor
ding
t
otheobl
i
gat
ion

WHEREPAYMENTSHOULDBEMADE
1. I
ntheplacedesignatedintheobli
gat
ion
2. I fthereisnoexpr esssti
pul
ati
onandt heundertaki
ngistodel
ivera
specif
icthi
ng– att hepl acewher ethethingmi ghtbeatt hemomentthe
obli
gati
onwasconstituted
3. I nothercase–i ntheplaceofthedomi ci
leofthedebt
or

• Ti
meofpayment-t i
mest i
pul
ated
• Eff
ectofpayment
– ext
ingui
shobli
gat
ion
Except
: 
ordert
oretai
ndebt

SPECI
ALRULES/
FORMSOFPAYMENT

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1
. APPLICATI
ONOFPAYMENTS–  t
he desi
gnati
on of the debtwhich
paymentshallbemade,outof2 ormoredebt sowing t
hesamecr edi
tor:
st
ipul
ati
onorappli
cat
ionofpar
tygivenbenefi
tofperiod–OK;t obevalid:
mustbedebtor’

REQUI
SITESFORTHEAPPLI CATI
ONOFPAYMENT:
a. Var iousdebtsoft
hesamekind
b. Samedebt or
c. Samecr edi
tor
d. Al ldebtsmustbedue

• EXCEPTION:theremaybeappl i
cat
ionofpaymentevenifalldebt
sare
notyetdueif
:
a. Par t
iessostipul
ate
b. Whenappl icati
onofpaymenti smadebyt hepart
yf orwhose
benefi
ttheterm hasbeenconsti
tuted
c. Paymenti snotenought oext
inguishall
debt
s

HOW APPLI
CATI
ONI
SMADE:

a. Debt ormakest hedesignati

on
b. I fnot,cr
edit
ormakesi tbysostat
ingi ntherecei
ptt
hathei ssues–
unl
essthereiscausef ori
nval
idati
ngthecontract
c. I fnei
therthedebt ornorcr edi
torhasmadet heappl
icati
onori ft
he
appl
icati
onis notval
id,thenappli
cat
ion,ismadebyoperat
ionoflaw

2. CONSI
GNATI
ONWI
THOUTPRI
ORTENDER 
–al
l
owedi
n:

a. Credit
orabsentorunknown/doesnotappearatt hepl
aceofpayment
b. I
ncapacit
atedt oreceivepaymentattheti
meitisdue
c. Refusestoissuer ecei
ptw/ojustcause
d. 2ormor ecr edit
orclai
mingthesamer i
ghttocol
lect
e. Ti
tl
eofobl i
gationhasbeenl ost

LOSSOFTHETHI
NGDUE

LOSSOFTHETHI
NGDUE 
–par
ti
alort
otal
/incl
udesi
mpossi
bil
i
tyofper
for
mance

WHENISTHEREALOSS
a. Whent heobjectperi
shes(
physical
l
y)
b. Wheni tgoesoutofcommer ce
c. Wheni tdisappear
sinsuchawayt hat
:it
sexi
stencei
sunknownori
t
cannotber
ecovered

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WHENISTHEREI
MPOSSI BILITYOFPERFORMANCE:
a. Physi
cal i
mpossibil
it
y
b. Legalimpossibil
i
ty
i
. Di
rectl
y–causedaswhenprohi
bit
edbylaw
i
i
. I
ndir
ectly–causedaswhendebt
orisr
equir
edt
oent
erami
l
it
ary
dr
aft

OBLI
GATIONTODELI VERASPECI FICTHING
• GENERALRULE:Ext i
nguished
• EXCEPTIONS:
a. Debt ori
satfault
b. Debt ori
smadel i
abl
eforfort
uit
ouseventbecauseofaprovisi
on
oflaw, contr
actualsti
pulat
ion ort he nat
ure oft
he obl
igati
on
requi
res assumptionofri
skonpar tofdebtor

OBLI
GATIONTODELIVERAGENERI CTHING
• GENERALRULE:Notext i
ngui
shed
• EXCEPTI
ONS:
a. I ft
hegeneri
ct hi
ngisdel
imit
ed
b. ft hegeneri
cthinghasalr
eadybeensegr
egat
ed
c. Monet aryobli
gati
on

OBLIGATIONTODO
• GENERALRULE:Debtori
srel
easedwhenpr
est
ati
onbecomesl
egal
l
yor
physi
call
y
impossi
blewi
thoutf
aul
tonpar
tofdebtor

REBUSSI
CSTANTI
BUS-  
agreementisval
idonlyift
hesamecondi
ti
onsprevai
l
ingat
t
imeofcont
ract
ingcont
inuetoexistatt
heti
meofperf
ormance;Obli
gor
mayberel
easedinwholeorinpartbasedonthi
sgr
ound.

REQUI
SITES
a. Theeventorchangecoul dnothavebeenf oreseenattheti
meofthe
executi
onoft hecontract
b. Theper formancei sextremelydif
fi
cul
t,butnotimpossi
ble(
becausei
fit
i
simpossible,iti
sext
inguishedbyimpossibi
li
ty
c. Theeventwasnotduet otheactofanyoftheparti
es
d. Thecont ractisforafutureprest
ati
on

CONDONATI
ON

CONDONATI
ON/
REMI
SSI
ONOFTHEDEBT–gr
atui
tousabandonmentofdebt
;

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 r
ightt
ocl
aim;donat
ion;r
ulesofdonat
ionappl
i
es;expr
essor
impl
i
ed

REQUI SITES:
a. Ther emustbeanagr eement
b. Ther e mustbe a subj ectmat t
er( objectoft he r emissi
on,
otherwisethere wouldbenot hingt ocondone)
c. Causeofconsi derationmustbel i
ber ali
ty
(Ess
entiall
ygr atuit
ous ,anactofliberal i
ty)
d. Parti
es mustbe capaci tated and mustconsent ;r equir
es
acceptanceby obli
gor; i mpli
ed i n mor t
is causa and
expressedintervi
vos
e. For mali
tiesofadonat i
onar erequiredi nthecaseofanexpr ess
r
emissi
on
f. Revocabl e–subj ectt oruleoni nofficiousdonati
on(excessi ve,
l
egiti
mei s impai redandi ngrati
tudeandcondi t
ionnotfol
lowed
g. Obl i
gati
onr emittedmusthavebeendemandabl eatt het i
meof
r
emissi
on
h. Wai versorr emi ssionar enottobepr esumedgener all
y
F
CONFUSI ONORMERGER

Wherethechar
act
erofdebt
orandcr
edi
tori
smer
gednsameper
sonwi
th
r
espectt
osameobli
gat
ion

REQUI
SITES:
a. Itmustt akeplacebet weenpr
inci
pal
debt
orandpri
ncipal
credi
toronl
y
b. Mer germustbecl earanddef
init
e
c. Theobl i
gati
oni nvol
vedmustbesameandi dent
ical–oneobl i
gat
ion
onl
y
d. Revocabl
e,i
freasonf
orconf
usi
onceases,t
heobl
i
gat
ioni
srevi
ved

7.COMPENSATI
ON

COMPENSATI ON–Setoff
;iti
samodeofexti
ngui
shmentt
ot heconcur
rent
amountthe obl
i
gati
on ofper
sonswho ar
einthei
rown ri
ghtreci
procal
ly
debt
orsorcr
edit
ors

REQUI
SITES:
a. Bot hpart
iesmustbemut ual
l
ycredi
tor
sanddebtors-inthei
rownri
ght
andasprinci
pal
s
b. Bot hdebtsmustconsistinsum ofmoneyori fconsumable,ofthe
samekindorqualit
y
c. Bot hdebtsaredue
d. Bot hdebtsarel
iqui
dat
edanddemandable(det
ermined)

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 e. Nei
therdebtmustbe ret
ained i
n a cont
roversy commenced by
3r
d per
sonandcommuni
cat
edw/debtor(nei
therdebtisgar
nished)

KI
NDSOFCOMPENSATI
ON

a. Legal–  byoper at
ionofl
aw;aslongas5r equi
si
tesconcur-eveni
f
unknownt oparti
esandifpayabl
eindiffplaces;i
ndemnityforexpenseof
exchanges;eveni
fnotequal
debts–onl
yuptoconcur r
ingamount

b. Convent i
onal–  agreement of par
ti
es i
s enough, f
orget ot
her
requi
rementaslongasbot
hconsent
ed

c. Facul tat
ive– 
onepar tyhaschoi
ceofclaimi
ng/opposi
ngonewhohas
benef
itofperi
odmaychooset ocompensat
e:
i. Notallr
equisi
tesarepr
esent
ii
. Deposit
um;commodat um;criminalof
fense;cl
aim f
orf
utur
e
support
;taxes

d. Judi cial
–  setof
f;uponorderofthecourt
;needspl
eadi
ngandpr
oof
;
al
lrequi
rements mustconcurexceptl
iqui
dati
on

e. Tot
al–  when2debt
sar
eofthesameamount
f. Par
ti
al–  when2debt
sar
enotofthesameamount

NOVATION-ext
inguishmentofobl i
gat i
onbycr eating/substi
tut
inganew onei
nit
s
pl
ace
• Changingobj ectorpr i
ncipal condit
ions
• Substi
tuti
ngper sonofdebt or
• Subrogating3r d personi nrightofcr edit
or
EFFECTSOFNOVATI ON:
a. Extinguishmentofpr incipalcar r
iesaccessory,except:
i
. St i
pulati
ont ocont rary
i
i. St i
pulati
on  pouraut r
ui unlessbenef i
ciar
yconsents
i
ii
. Modi ficatorynovat i
ononl y;obl i
gedtow/ cisl
essoner
ous
i
v. Ol dobl i
gationisvoi d

b. Ol
dobl
i
gat
ionsubs
ist
sif
 newobl
i
gat
ion 
isvoi
dorvoi
dabl
e butannul
l
ed
al
ready
(
except
:int
ent
ionofpar
ti
es)

c. I
fol
dobl
i
gat
ionhascondi
ti
on

i
. I
f Resolutor
y and i
t occur
red – ol d obli
gat
ion al
ready
ext
ingui
shed;nonewobl
i
gati
onsincenot
hingt
onovate

Ci
vi
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 i
i
. I
fSuspensive 
andi
tneveroccur
red–asi
fnoobl
i
gat
ion;al
so
not
hingt
onovat
e

d. I
fold obl
igati
on has condi
ti
on,mustbe compati
ble wi
tht
he new
obl
i
gat
ion;ifnewisw/ocondit
ion–deemedatt
achedtonew

e. I
fnewobl i
gat
ionhascondit
ion
i
. I
fresol
utor
y:vali
d
i
i. I
fsuspensive 
and di
d notmat
eri
ali
ze:ol
d obl
i
gat
ion i
s
enf
orced

KI
NDSOFNOVATI
ON:

a. REAL/OBJECTI
VE– change object, cause/
consi
der
ati
on or
pr
inci
pal condi
ti
on
b. PERSONAL/SUBJECTIVE
i
. Subst
it
uti
ngper
sonofdebtor(
passi
ve)

• EXPROMI SION; 
ini
ti
ati
vei sfrom 3rdper
sonornew debt or;new debtor
andcredit
ortoconsent ;olddebtorrel
easedf r
om obli
gat i
on;subjectto
ful
lrei
mbursementandsubr ogati
onifmadew/consentofol ddebtor;i
f
w/o consentoragai nstwi l
l,onlybenef i
cialrei
mbur sement;ifnew
debtori
sinsol
vent,notresponsibl
esincew/ohi sconsent

• DELEGACI ON; i
niti
ati
ve of old debtor;al
lparti
es to consent;ful
l
rei
mbur sement ;ifinsol
ventnew debt or– notr
esponsi
ble 
olddebtor
becauseobl i
gationexti
nguishedbyval i
dnovati
onunless:insol
vency
alr
eadyexi sti
ngandofpubl i
cknowl edgeorknow tohim att i
meof
delegacion
1.
Delegant e– ol
ddebt or
2.Delegatari
o–cr edi
tor
3.Delegado–newdebt or

i
i
. Subr
ogati
ng3r d persontoright
sofcredi
tor
 (acti
ve)
1. Convent ional- agr eementand consentofal lpart
ies;
cl
earl
yest abli
shed
2. Legal- Takes pl ace by oper
ati
on of l aw;no need for
consent;notpr esumedexceptasprovidedfori
nlaw:

PRESUMEDWHEN:
a. Credit
orpays anotherpr ef
erred credi
toreven w/o debtor’
knowl
edge
b. 3rdpersonnoti
nter
estedinobl
igat
ionpaysw/approvalofdebtor
c. Personinter
est
edinfulf
il
l
mentofobligati
onpaysdebtevenw/o

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 knowl
edgeofdebt
orom

DIFFERENT FROM PAYMENT OF 3RD CHANGEOFDEBTOR

PERSON
1.debtorisnotnecessarilyr
eleasedfrom 1 .debt orisr el
eased
debt
2.canbedonew/ oconsentofcr edi
tor 2.needsconsentofcr edit
or–expr essor
i
mpl i
ed
3.oneobl igat
ion 3.t wo obl igati
ons;one i sext i
nguished
andnewonecr eated
4.3rd personhasnoobl igat
iontopayi f 4.newdebt orisobli
gedt opay
Insol
vent
pe
CONVENTI ONALSUBROGATI ON ASSI GNMENTOFRI GHTS
governedbyAr t
s.1300-1304 gover nedbyAr ts.1624t o1 627
debtor’ debt or’
exti
nguishestheobl i
gat
ionandgi vesrise transmi ssi
on ofr i
ghtoft he credi
torto
toanewone thir
d per son wi thout modi fyi
ng or
extinguishingtheobl i
gat i
on
defectsandvicesintheol dobli
gati
onar e def ectsand vi cesi nt he old obli
gati
on
cured andnotcur ed
takeseffectuponmomentofnovat i
onor asf arast hedebt orisconcer ned,takes
subrogati
on effectuponnot if
icati
on

PRI
NCI
PALCHARACTERI
STI
CSOFCONTRACTS:

1
. Autonomyofwi l
l
s –  par ti
esmayst i
pulateanythingasl ongasnoti l
legal
,
i
mmor al,etc.
2. Mut ual
ity– per for
manceorval i
dit
ybi ndsbot hparti
es ;notleftt
owi l
lofone
ofpar t
ies
3. ObligatoryForce–  part
iesareboundf rom perfect
ionofcont ract:
4. Fulf
ill
whathasbeen  expressl
ysti
pulat
ed
5. All
consequencesw/ cmaybei nkeepingwi thgoodf ait
h,usageandl aw
6. Relati
vity 
– bindingonlybet weent hepar t
ies,theirassigns,heirs;st
rangers
cannotdemandenf orcement

EXCEPTIONTORELATI VI
TY:
1.Accionpauliana
2.Acciondirecta
3.St
ipulat
ionpourautr
ui

REQUI
SITESOFSTI
PULATI
ON 
POURAUTRUI

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vi
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1. Parti
esmusthavecl ear
lyanddel i
berat
elyconferredafavorupona3rdperson
2. Thest i
pulati
oni nfavorofa3r d 
personshoul dbeapar tof,notthewhole
cont
ract
3. Thatt hef avorablesti
pulat
ionshouldnotbecondi ti
onedorcompensat edby
anykindofobl igat
ionwhatsoever
4. Nei ther of the cont ract
ing parti
es bearst he legalrepresent
ati
on or
authori
zatonof3rdpar
i t
y
5. The t hi
rd person communi cat
eshisaccept ance beforerevocati
on bythe
ori
ginalparti
es
6. Ar t1312;Art131 4

KI
NDSOFCONTRACTS

1
. Ast
oper
fect
ionorf
ormat
ion

a. Consensual – per
fect
edbyagr eementofpar
ti
es
b. Real– 
per f
ectedbydelivery(commodatum,pledge,deposi
t)
c. Formal/sol
emn–  perf
ect edbyconf
ormit
ytoessenti
alfor
malit
ies
(donat
ion)

2. Ast
ocause
a. Oner ous– 
withvaluabl
econsiderat
ion
b. Gr at
uit
ous– f
oundedonl iber
ali
ty
c. Remuner at
ive – prest
ati
on is given f
or ser
vice pr
evi
ousl
y
r
enderednotasobl i
gat
ion

3. Astoimportanceordependenceofoneuponanot her
a. Pr i
ncipal – contractmaystandalone
b. Accessor y–  dependsonanot hercontractf
oritsexi
stence;may
notexistoni tsown
c. Pr eparator y– notanendbyi t
self;ameanst hroughwhichfutur
e
contractsmaybemade
4. Astoparti
esobl i
ged
a. Uni l
ateral – onl
yoneoft heparti
eshasanobl igati
on
b. Bi l
ateral
 – bot h part
ies are requi
red t o render reci
procal
pr
estat
ions

5. Ast
onameordesi
gnati
on
a. Nomi nat
e
b. Innominate
I
. Doutdes–Igivethatyoumaygive
I
I. Doutfaci
as–Igivethatyoumaydo
I
II
. Faci outdes–Idot hatyoumaygive
I
V. Faci outfaci
as–Idot hatyoumaydo

Ci
vi
lLawBarRevi
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es Page69
ESSENTI ALELEM ENTS OFCONTRACTS:
1. Consent
2. Subj
ectMatter
3. Consider
ati
on

WHENOFFERBECOMESI
NEFFECTI
VE:

1
. Death, civi
lint
erdict
ion, i
nsanit
y or insol
vency of ei
ther par
ty bef
ore
acceptanceisconveyed
2. Expressorimpli
edrevocati
onoft heof
ferbytheoffer
ee
3. Qualif
iedorcondit
ionalacceptanceoftheof f
er,whichbecomesacounter-
off
er
4. Subject mat
ter becomes i
l
legal or i
mpossi
ble bef
ore accept
ance i
s
communi
cat
ed

RULEONCONTRACTSENTEREDI
NTOBYMI
NORS

• GENERALRULE:  VOI DABLE

• EXCEPTIONS:
a. Uponr eachingageofmaj or
it
y–t heyr at
ifyt
hesame
b. Theywer eent ereduntobyaguar dianandt hecourthavi
ngjur
isdict
ion
hadappr ovedt hesame
c. Theywer econt ract
sfornecessit
iessuchasf ood,butheret
heper sons
whoar eboundt ogivet
hem suppor tshouldpayt her
efor
d. Mi norisest oppedf orhavingmi srepresent
edhi sageandmi sledt he
otherparty(whenagei sclosetoageofmaj ori
tyasintheMer cadov
Espir
it
uandSi aSuanvAl cantar
acases. )

DI
SQUALI
FIEDTOENTERI
NTOCONTRACTS:
(cont
ract
sent
eredi
ntoar
evoi
d)

1. Thoseunderci vi
lint
erdict
ion
2. Hospitali
zedlepers
3. Prodi
gal s
4. Deafanddumbwhoar eunabl etoreadandwr it
e
5. Thosewhobyr easonofage,di sease,weakmi ndandot hersi
mil
arcauses,
cannotwi t
houtout si
de aid,t ake care ofthemsel ves and manage their
property,becominganeasypr eyfordeceitandexploitati
on
I
ncapaci t
y
I
NCAPACI TY DISQUALIFICATI ON
Restrai
ns the exer ci
se oft he rightt o Restr
ainstheveryr ighti
tsel
f
contr
act
May st il
lent er into contr
act through Absol ut
elydisqualif
ied
parent,guardianorlegalrepresent
ative

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Baseduponsubjecti
veci
rcumstanceof Baseduponpubli
cpoli
cyandmor
ali
ty
cert
ainpers
on
Contract
s entered int
o ar e mer el
y Cont
ract
sent
eredi
ntoarevoi
d
voi
dable

SI
MULATEDCONTRACTS

1. Absol
ute 
–noi ntent
iontobeboundatall
,fi
cti
ti
ousonl
y–voidfr
om begi
nni
ng
2. Rel ati
ve –thereisintenti
ontobeboundbutconcealed;conceal
edcontr
act
bi
nds:
a. Nopr ejudiceto3rdper
sons
b. Notcont raryt
ol aw,moral
s,et
c.

OBJECT
REQUI
SITES:

1. Withi
nthecommer ceofman-ei t
herexi
sti
ngori
npotency
2. Li
citornotcontrar
yt ol
aw,goodcustoms
3. Possibl
e
4. Determinat
east oitski
ndordeter
minabl
ew/ oneedt
oenteri
ntoanew
contr
act
5. Tr
ansmi ssi
ble

AbsenceofCausa Void–pr oducenol egal effect

I
ll
egali
tyofCausa Void–pr oducenol egal effect
Fal
sit
yofCausa Voidabl e–par t
ymustpr ovet hatcauseis
untruthful
;pr esumpt i
on ofval i
dit
y but
rebuttable
Causanotst
atedi
ncont
ract Presumedt oExist-bur denofpr oofis
ont heper sonassail
ingitsexi st
ence
I
nadequacyofCausa DoesnotI nvali
dateCont ractperse
Exceptions:
•f
raud
•mistake
•
unduei nfl
uence
•cases speci fi
ed by l aw- cont ract
s
entered when war d suf f
er slesion of
mor et han25

ause
CAUSE MOTIVE
Di
rectandmostpr
oxi
mat
ereasonofa I
ndi
rectorr
emot
ereasons

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contr
act
Object
iveandj
uri
dical
reasonofcont
ract Psychol
ogical
orpurel
ypersonal
reason
Cause us always same f or each Themot i
vediffer
sforeachcont r
acti
ng
contr
acti
ngpar
ty part
y

• NOTE: Legali
tyorill
egal
it
yofcauseaff
ectstheexist
enceofval i
dit
yofthe
cont
ract;Legali
tyori
ll
egal
it
yofmoti
vedoesnotaf
fecttheexi
stenceorval
i
dit
y
ofcontract

CAUSAI
NSOMECONTRACTS:

1. Onerouscontr
acts –thepr estat
ionofpromiseofat hingorser vi
cebythe
ot
her
2. Remuner at
orycontracts
 –theser vi
ceorbenefi
tremunerated
3. PureBeneficence –mer el
iberali
tyoft
hedonororbenefactor
4. Accessory 
–i denti
calwi t
h cause ofpr i
nci
palcontract,the l
oan whi
ch i
t
der
ivedi
tsl
ifeandexi st
ence( ex:mort
gageorpledge)

FORMSOFCONTRACT5–  i
n some ki
nd ofcont
ract
sonl
yascont ract
sare
gener
all
yconsensual
;for
misamannerinwhichacont
racti
sexecut
ed
ormanif
est
ed

WHENFORM I
SIMPORTANT:
1. Forval
i
dit
y(for
mal/sol
emncontract
s)
2. Forenforceabi
li
ty(
stat
uteoff
rauds)
3. Forconvenience

• GENERAL RULE:contractis val

i
d and bi
ndi
ng i
n what
everf
orm
pr
ovi
dedt
hat3essent
ial
requi
sit
esconcur

• EXCEPTI ONS
a. Law requirescont ractt obeins omef ormf orvalidi
ty-donat i
onand
acceptanceofr ealproperty
b. Lawr equir
escont r
actt obeinsomef ormtobeenf orceable-Statuteof
Frauds;contractisval idbutri
ghttoenf or
cecannotbeexer ci
sed;need
rat
if
icati
ont obeenf orceabl
e
c. Lawr equir
escont racttobeinsomef ormf orconveni ence-cont r
actis
vali
dandenf orceable,neededonlyt obind3rd parties
Ex:publi
cdocument sneededf orthef f
:
i
. Cont r
acts w/ c obj ect is cr eati
on, t ransmi
ssion or
reformationofrealri
ghtsoverimmovabl es
i
i. Cession, r epudi
ati
on, r enunciat
ion of her edit
ary
ri
ghts/CPG

Ci
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 i
i
i. Powertoadministerpropertyforanother
i
v. Cessi
on ofact ion ofr ights proceeding f
rom an act
appeari
nginapubl i
cinst.
v. Allot
herdocswher eamounti nvolvedisinexcessof500
(mustbewr i
tt
enevenpr i
vatedocs)

REFORMATIONOFCONTRACTS–  r emedytoconf ormtor eal

int
enti
onofparti
es
due to mist
ake,fraud,inequi
tabl
e conduct,
accident
CAUSES/
GROUNDS:
1. Mutual
:instrumentincludessomet hingw/ cshouldnotbethereoromi t
whatshouldbet here
a. Mut ual
b. Mi stakeoff act
c. cl earandconvi ncingproof
d. causesf ai
lureofinstrumenttoexpresstrueint
enti
on

2. Unil
ater
al
a. onepar t
ywasmi staken
b. ot her ei
ther acted fr
audul
ent
ly or i
nequi
tabl
y or knew but
conceal
ed
c. par tyi
ngoodf ait
hmayaskf orr
eformat
ion

3. Mist
ake by3r
dper sons–duetoi
gnor
ance,l
ackofski
l
l,negl
i
gence,
badf
ait
hofdraft
er,cler
k,t
ypi
st

4. Ot
her
sspeci
fi
edbyl
aw 
–toavoi
dfr
ust
rat
ionoft
ruei
ntent

• Requi
si
tes:
a. Ther eisawrit
teninst
rument
b. Ther eismeeti
ngofmi nds
c. Tr ueint
ent
ionnotexpressedi
ninst
rument
d. Cl earandconvinci
ngproof
e. Fact sputi
nissueinpleadi
ngs

• NOTE:pr
escr
ibesi
n10year
sfr
om dat
eofexecut
ionofi
nst
rument

WHENREFORMATI ONNOTAVAI LABLE:

1. Si
mpledonati
oni
ntervi
vos
2. Wi l
ls
3. Whenr ealagr
eementisvoi
d
4. Estoppelwhenpar
tyhasbroughtsui
ttoenf
orcei
t

Ci
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KI
NDSOFDEFECTI
VECONTRACTS:

1
. RESCISSI
BLE CONTRACTS  – Those which have caused a part
icul
ar
economicdamageei t
hertooneofthepart
iesort
oa3rd per
sonandwhi ch
maybesetasi deevenifval
i
d.Itmaybesetasi
deinwholeorinpar
t,t
ot he
ext
entofthedamagecaused'

REQUI
SITES:
a. Contractmustberesci
ssi
ble
i
.  Under ar t1381:Cont r
acts ent
ered i
nto by per
sons
exer
cisi
ngfi
duci
arycapacit
y

1
. Entered into byguar dian wheneverwar ds uffer
s
damagebymor et han1 /4ofvalueofobj ect
2. Agreed upon i nr epr esentati
on ofabsent ees,i f
absenteesuf fer
sl esionbymor et
han¼ ofval ueof
property
3. Contracts wher er escission is based on f raud
commi ttedoncr editor(accionpauli
ana)
4. Objects of l i
ti
gation; cont ract enter
ed i nt
o by
defendantw/ oknowl edgeorappr ovalofli
ti
gantsor
j
udicialauthori
ty
5. Paymentbyani nsolvent–ondebt sw/car enotyet
due;prejudicesclaim ofot hers
6. Provi
dedf orbyl aw -ar t1526,1 534,1538,1539,
1542,1556,1 560,1 567and1 659

i
i
.  Underart1
382 -Payment smadei nastateofinsol
vency
1. Pl
ainti
ffhasnoothermeanst oobtainrepar
ati
on.
2. Pl ainti
ffmustbeablet oret
urnwhat everhemaybe
obli
gedt oret
urnduetoresci
ssion
3. The t hings must not have been passed t o
3rd 
par t
ieswhodidnotactinbadf ai
th
4. I tmustbemadewi thi
nthepr escri
bedperiod(of4
year
s)

OBLI
GATI ON CREATED BY THE RESCI SSI
ON OF THE CONTRACT: Mut
ual
Rest
it
uti
on
a. Thi ngsw/caretheobj
ect
soft
hecont
ractandt
hei
rfr
uit
s
b. Pr i
cewithint
erest

MUTUALRESTI
TUTIONNOTAPPLICABLEWHEN
a. cr edi
tordi
dnotr
ecei
veanyt
hingf
rom cont
ract

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 b. thi
ngalreadyi
npossessi
onofpart
yingoodfai
th;subjectt
oindemni
ty
only;i
fther
ear
e2ormor eal
i
enat
ions–li
abi
l
it
yof1 st
inf
ractor

BADGESOFFRAUD
a. consi der at
ionoft heconveyancei si nadequat eorf i
ct i
ti
ous
b. t ransferwasmadebyadebt orafterasui thasbeenbegunandwhi l
eit
i
spendi ngagai nsthi m
c. sal euponcr editbyani nsolventdebt or
d. evi denceofi ndebt ednessorcompl etei nsolvency
e. t ransfer of al lhi s pr oper t
y by a debt or when he i sf i
nanci all
y
embar rass edori ns olvent
f. transfermadebet weenf atherandsonwher etherei spr esentanyof
theaboveci rcumst ances
g. f ailureoft hevendeet otakeexcl usivepossessi onoft hepr oper t
y
RescissioninAr t
1191RESCI SSI ONI NART.1 191 RESCI SSI ONPROPERI NART.1 381
I
ti s a pr i
nci palact i
on r etali
at oryi n itisasubsi di
ar yremedy
character
Onlygr oundi snon- performanceofone’ Ther e ar e 5 gr oundst or escind.Non-
obli
gationorwhati sincumbentuponhi m per for mance by t he ot her i s not
i
mpor tant
Appli
esonl yt or eciprocal obli
gat ion Appl i
est obot hunil
at eralandr eciprocal
obligat i
ons
Onlyapar tyt ot hecont ractmaydemand Evenat hirdper sonwhoi spr ej
udicedby
ful
fi
l
lmentorseekt her escissionoft he t he
contract cont r
actmaydemandt her escissionof
thecont ract.
Courtmayf ixaper iodorgr antext ensi
on Cour tcannotgr antext ensionoft i
mef or
ofti
mef orthef ulfi
l
lmentoft heobl igati
on f ulf
il
lmentoft heobligation
I
tspur posei st ocancel thecont ract I
tspur posei stoseekr epar at i
onf ort he
damageori njurycaused,t hus
all
owi ngpar ti
al r
escissionoft hecont ract
ResciProperi n
2. VOI DABLECONTRACTS–  i
ntri
nsicdef ect;val i
dunt i
lannulled;def ectisduet o
viceofconsentorl egal incapaci ty

• CHARACTERI STI
CS:
a. Ef f
ectiveunti
lsetaside
b. Maybeassai ledorat t
ackedonlyinanacti
onf
orthatpur
pose
c. Canbeconf i
rmed( NOTE:conf i
rmat
ioni
sthepropert
ermforcuri
ngt
he
defectofavoidabl
econt ract)
d. Canbeas sai
ledonlybyt hepart
ywhoseconsentwasdefecti
veorhi
s
hei
rsoras si
gns

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 WHATCONTRACTSAREVOI DABLE:
a. Mi nors(below1 8)
b. I nsaneunlessact edinluci
dinter
val
c. Deafmut ewhocan’
d. Per sonsspeciall
ydisquali
fi
ed:ci
vi
li
nter
dict
ion
e. I nst at
eofdr unkenness
f. I
nst at
eofhypnot i
cspell
KINDSOFFRAUDI NTHEPERFORMANCEOFOBLI GATI
ONORCONTRACTS

a. CausalFraud 
(dolocausant
e)–decept
ionofseri
ouscharact
erwit
hout
which the ot
herpar ty woul
d nothave enter
ed int
o;contractis
VOIDABLE( Ar
t.1338)

b.
  I
ncident
alFraud 
(dol
oincident
e)–decepti
onwhi charenotser
iousand
wit
houtwhichtheotherpartywoul
dsti
llhaveenteredi
ntothecontr
act
;
hol
dstheguilt
ypart
yli
ableforDAMAGES( Ar
t.1
344)

c. Toler
ated Fraud 
– includes minimi
zi
ng the defect
s of the t
hing,
exaggerat
ionofit
sgodqual it
iesandgivi
ngi
tquali
ti
esitdoesnothave;
LAWFULmi sr
epresent
ation

• NOTE:
• Expressi
onofanopinion –notf r
audunlessmadebyexper tandot her
partyrel
i
edontheformer’
• Fraud by t
hir
d person – does notviti
ate consent;onl
y action for
damagesexceptifthereiscollusi
onbetweenonepar tyandt het hi
rd
person,orr
esul
tedtosubstant
ialmist
ake,mutualbetweenparti
es .

CAUSESOFEXTI
NCTI
ONOFACTI
ONTOANNUL

a. PRESCRIPTI
ON- Peri
odtobr i
nganact i
onforAnnulment
i
. I
nti
mi dati
on,vi
olence,undueinfl
uence-4year s 
from t
ime
defectofconsentceases
i
i
. Mistake,fr
aud–4year sf
rom ti
meofdi scover
y
i
i
i. Incapacity-From ti
meguar di
anshipceases

b. RATI
FICATI
ON
• REQUISI
TES
i
. knowl edgeofr easonrender
ingcontr
actvoi
dable
i
i. such r eason must have ceased, except i ncase of
rat
if
icationeffectedbyt heguardi
antocontract
sentered
i
ntobyan  i
ncapacitat
ed,
i
ii
. t he injured party musthave executed an actwhi ch

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 expr
essl
yori
mpl
i
edl
yconveysani
ntent
iont
owai
vehi
s
ri
ght

c. LOSSOFTHETHING whi
chist
heobjectoft
hecont
ractthr
oughf
raud
orf
aul
toft
heper
sonwhoisent
it
ledt
oannult
hecont
ract

• NOTE:  Obj
ecti
slostt
hroughafort
uit
ousevent,thecontr
actcanstil
lbe
annulled,butt
hepersonobli
gedtor et
urnthesamecanbehel dliabl
e
onlyfortheval
ueofthethi
ngattheti
meofthel oss,butwi
thouti
nterest
thereon.

• Rati
fi
cati
oncleansest
hecont
ractofi
tsdef
ect
sfr
om t
hemomenti
twas
consti
tut
ed.

3. UNENFORCEABLE CONTRACT– val

id butcannotcompelit
s execut
ion
unl
essr
ati
fi
edext
ri
nsi
cdef
ect
;pr
oducelegal
eff
ect
sonl
yaft
err
ati
fi
ed

KI
NDS:

a. Unauthori
zedorNosuf fi
cientauthor
it
y –enter
edi nt
ointhenameof
anot
herwhen:
i. Noaut hor
it
yconferred
ii
. Inexcessofauthori
tyconfer
red(ul
travir
es)

b.
  Curabl
ebyRat i
fi
cat
ion-
 Bot
hpar
ti
esi
ncapabl
eofgi
vi
ngconsent-
2
minoror2i
nsaneper
sons

c. Curabl
ebyAcknowledgment-  Fai
l
ur etocompl ywithStatut
eofFr auds
i. Agreementt obeper formedwi t
hinayearaf t
ermaki ng
contr
act
ii
. Specialpr
omi setoanswerf ordebt ,defaul
tormi scarri
age
ofanother
ii
i. Agreementmadei nconsider ati
onofpr omi set
omar r
y
iv. Agreementforsaleofgoods ,chatt
elsorthingsinactionat
pri
cenotlesst han500;except i
on:auctionwhenr ecorded
sal
einsalesbook
v. Agr eementf orleaseofpr opertyformor ethanoneyear
andsaleofreal pr
opertyregar dlessofpr i
ce
vi. Representat
ionast ocreditofanot her

TWOWAYSOFCURI
NGUNENFORCEABLECONTRACTS:

a. Fai
l
ure ofdefendantt
o obj
ectintime,tothe present
ati
on of
par
oleevi
denceincour
t,t
hedefectofunenf
orceabi
li
tyi
scured

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 b.
  Acceptance of benefi
ts under the contr
act.I ft here is
perf
ormance i n ei
ther par
t and there i
s accept ance of
perf
ormance,i tt
akesitoutofunenf or
ceable contr
acts;also
est
oppel set
sinbyaccept
ingperf
ormance,t
hedef ecti
swai ved

4. VOI
DORI
NEXI
STENT– 
ofnol
egal
eff
ect

CHARACTERI STI
CS:
a. I tproducesnoef fectwhat soevereitheragai
nstorinfavorofanyone
b. Ther eisno act i
onf orannul mentnecessaryassuchi sipso jur
e.A
judici
aldeclarati
ont othatef fecti
smer el
yadeclar
ati
on
c. I tcannotbeconf irmed,r atif
iedorcur ed
d. I fperformed,r estorationisinor der,excepti
fparidel
i
ctowillappl
y
e. Ther i
ghttosetupt hedef enseofnul lit
ycannotbewaived
f. I
mpr escri
ptibl
e
g. Anyonemayi nvoket henul li
tyoft hecontr
actwheneveri t
sjuri
dical
effectsareasser tedagai nsthi m

KI
NDSOFVOI
DCONTRACT:

a. Thoselackinginessenti
alelement
s:noconsent
,noobject
,nocause
(i
nexi
stentones
)– essent i
alfor
mali
ti
esare notcompli
ed wi
th (ex:
donat
ionpr opt
ernupti
as–shoul dconf
ormtoformal
i
ti
esofadonati
on
tobe 
valid)

i
. Thosew/car eabsolut
elysimulatedorf
ict
it
ious–nocause
i
i
. Thosewhichcauseorobj ectdidnotexi
stattheti
meof
thetr
ansact
ion–nocause/ object
ii
i. Thosewhoseobj ectisoutsidethecommer ceofman–no
obj
ect
iv. Thosew/ccont empl
ateanimpossibl
eservi
ce–noobj
ect
v. Thosew/cintenti
onofpart
iesrel
ati
vetopri
nci
pal
obj
ectof
thecont
ractcannotbeascert
ained

b. Pr
ohi
bit
edbyl
aw

c. Thoseexpr
essl
yprohi
bit
ed ordecl
ared voi
d byl
aw -Contr
act
sw/
c
vi
olat
eanyl
egalpr
ovi
si
on,whetheri
tamountstoacr
imeornot

d. I
ll
egal/
Il
li
citones –Thosewhosecause,obj
ectorpur
poseiscont
rar
yto
l
aw,mor als,goodcustoms,publ
i
corderorpubl
icpol
icy;
Ex:Contr
actt osel
lmarij
uana

KI
NDSOFI
LLEGALCONTRACTS

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 PARIDELI
CTODOCTRI
NE

• Bothpart
iesareguil
ty,noact
ionagai
nsteachother
;thosewhocomei n
equi
tymustcomewi thcl
eanhands;appl
iesonl
ytoil
l
egal cont
ract
sandnotto
i
nexi
stentcont
racts;doesnotappl
ywhenasuper i
orpubli
cpoli
cyinter
venes

• EXCEPTI
ON TO PARIDELI
CTO RULE –I fpur
posehasnotyetbeen
accompli
shedandI
fdamagehasnotbeencausedtoany3rdper
son

OTHEREXCEPTI
ONS:

a. PaymentofUsur
iousi
nter
est
b. paymentofmoneyordel
iver
yofpropertyforanill
egalpurpose,wher
ethepar
tywho
pai
dordeli
ver
edrepudi
atest
hecontractbefor
et hepurposehasbeenaccompli
shed,
orbef
oreanydamagehasbeencausedt oa3r dperson
c. paymentofmoneyordel
i
ver
yofpr
oper
tymadebyani
ncapaci
tat
ed
per
son
d. agreementorcont ractwhi chisnotil
legal perseandthepr ohibit
ionisassi
gnedf
orthe
protecti
onofthepl ai
nt i
ff
e. paymentofanyamounti nexcessoft hemaxi mum priceofanyar ti
cl
eorcommodi t
y
fi
xedbyl aworr egulati
onbycompet entaut hori
ty
f
. contractwherebyal aborerundert
akest owor klongerthant hemaxi mum numberof
hoursfixedbylaw
g. onewhol osti
ngambl ingbecauseoff raudulentschemespr acticedonhimisal
l
owed
torecoverhislosses( Art
.313RPC) eveni fgambl i
ngisprohibited.

REQUI
SITESOFI
LLEGALCONTRACTS:

a. Cont
racti
sforani
l
legal
pur
pose
b. Cont
ractmustber epudiatedbyanyoft hepart
iesbef
orepur poseisaccompli
shedor
damageiscausedt o3rdparti
es
c. Courtbel
ievesthatpubli
ci nt
erestwil
lbeservedbyal l
owingr ecover
y(di
scret
ionary
uponthecourt)–basedonr emorse;i
ll
egal
i
tyisaccompl i
shedwhenpar t
iesenter
ed
i
ntocontr
act;befor
eittakeseffect
–par t
yw/cisremorsefulprevent
sit

EFFECTSOFI
LLEGALCONTRACTS

a. I
fonepar
tyisi
ncapacit
ated,courtsmayall
ow r
ecoveryofmoney,pr
oper
tydel
i
ver
ed
byi
ncapaci
tat
edpersoni
nthei
nterestofjust
ice;par
idel
i
ctocannotappl
ybecause

1
. est
oppelin pai
s( byconduct )incapaci
tat
ed person doesnot
know whathe i s ent
eri
ng into;unablet o understand t
he
consequencesofhisownact i
on
c. est oppelbysi
lence
d. est oppelbyacceptanceofbenefi
ts

Ci
vi
lLawBarRevi
ewNot
es Page79
 2.Techni
cal
est
oppel

a. Estoppel byrecord
b. I
fagr eementi snotil
legal
persebutmer el
yprohi
bit
edand
prohibit
ionisdesignatedf
ort
heprotect
ionoftheplai
nti
ff–
mayr ecoverwhathehaspai dordeliveredbyvirt
ueof
publi
cpol icy
c. Estoppel byjudgment
d. Estoppel bylaches

LACHESORSTALEDEMANDSMUTUALRESTI
TUTI
ONI
NVOI
DCONTRACTS

•GENERALRULE:par
ti
esshoul
dretur
ntoeachot
herwhatt
heyhavegi
ven
byvi
rt
ueoft
hevoi
dcontr
acti
ncaseLACHES

•Failur
eornegl ect,f
oranunreasonabl
eandunexpl ai
nedlengthofti
met odo
thatwhi ch,byexer ci
si
ng duedi l
i
gence,could orshould havebeendone
earl
ier;i
ti snegli
genceoromi ssi
ontoassertar ightwi
thinreasonablet
ime
warranti
ng a pr esumpti
on thatthe par
ty ent
it
led to asserti
tei t
herhas
abandonedi tordecli
nedtoasserti
t

•ELEMENTS
•Wherenul
l
it
yarosefr
om defectinessent
ialel
ement
s
a. r et
urnobj
ectofcontractandfrui
ts
b. r et
urnpri
cepl
usi nt
erest

•EXCEPTI
ON:

Norecoverycanbehadi ncaseswher enul l

it
yofcont r
actarosef r
om
i
l
legal
i
tyofcontractwherepart
iesar
einpar i
deli
cto;except:
a. i ncapacit
ated– notobli
ged tor et
urn whathe gave butmay
recoverwhathehasgiven1.conductonpar tofthedefendant,or
ofone underwhom he cl aims,giving ri
se t
ot he sit
uati
on of
whichcompl ai
ntismadeandf orwhi chthecompl aintseeksa
remedy

b. ot
herpar
tyi
slessgui
l
tyornotgui
l
ty

2. del ay i
n assert
ing t
he complainant
’ ,the complai
nant
havi
ng knowledgeornot i
ce,oft hedefendant’
aff
ordedtheopport
unit
ytoinsti
tut
easuit
3. l ackofknowl edgeornoti
ceont hepartoft
hedefendantt
hatthe
complai
nantwouldassertt
her i
ghtonwhichhebaseshissui
t

Ci
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lLawBarRevi
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es Page80
NATURALOBLI
GATI
ONS

•theyarereal
obl
i
gat
ionst
owhi
cht
helawdeniesanact
ion,butwhi
cht
hedebt
or
mayerf
orm
voluntar
il
y.

i
njur
ytot
hedefendanti
ntheeventr
eli
efi
saccor
dedt
othecompl
ainant
,ort
hesui
t
i
nnothel
dtobebarred.

• Iti
spatr
imoni
al,andpr esupposesaprestat
ion.
• Thebindi
ngti
eoft heseobl i
gati
onsi
sintheconscienceofman,f
orundert
he
l
aw,theydonothavet henecessaryeff
icacytogiveri
set
oanacti
on.

LACHESPRESCRIPTI
ON -Concernedwit
heff
ectofdel
ayConcer
nedwit
hfactof
del
ayQuest
ionofi
nequi
tyofper
mit
ti
ngt
heclai
mtobeenfor
cedQuest
ionormatt
er
oft
ime

EXAMPLESOFNATURALOBLI
GATI
ONSENUMERATEDUNDERTHECI
VILCODE:

1.Perf
or manceaftert
heci vil
obl i
gat i
onhaspr escribed
2.rei
mbur sementofat hirdper sonf oradebtthathaspr escr
ibed
3.rest
itut
ionbyminoraf terannul mentofcont ract
4.Deli
verybymi norofmoneyorf ungi bl
ethinginfulfi
l
lmentofobli
gat
ion
5.Performanceafteractiontoenf orcecivi
lobli
gationhasfai
led
6.paymentbyhei rofdebtexceedi ngvalueofpr opert
yinheri
ted
7.paymentoflegacyaf terwillhavebeendecl are

KINDS:
1.est
oppeli
npais(byconduct)
a.est
oppelbysi
lence
b.est
oppelbyacceptanceofbenef
it
s

2.Techni
calest
oppel
a.I
faa.Estoppelbydeed
b.Est
oppelbyrecord
c.Est
oppelbyjudgment
d.Est
oppelbylaches

LACHES:Fai l
ureorneglect,foranunr easonableandunexplai
nedlengthofti
met o
dothatwhich,byexer
cisingduedi l
igence,couldorshoul
dhavebeendoneear l
ier
;it
i
snegl i
gence oromission to asserta ri
ghtwi thi
nreasonabl
et i
me warranti
ng a
presumpti
onthatthepartyentit
ledtoassertitei
therhasabandoneditordecl
inedto
asserti
t

Ci
vi
lLawBarRevi
ewNot
es Page81
vi
i
.Par
tner
shi
pandagency

A.PARTNERSHI
PDEFI
NITI
ON

Byt he cont
ractofpar t
nershiptwo ormor e per
sonsbi nd t
hemsel
vest o
contri
butemoney,property,ori
ndustr
yt oacommonf und,wi
ththei
ntent
ion
ofdividi
ngtheprofi
tsamongt hemselves. Twoormor epersonsmayal so
for
m apar t
nershi
pfortheexerciseofaprofessi
on(Art.1767)

B.ELEMENTS
Whatarethechar
act
eri
sti
corel
ement
soft
hecont
ractofpar
tner
shi
p?

Thecont
ractofpar
tner
shi
pis:

a.CONSENSUAL–becausei tisper f
ectedbymer econsentoft hepar tner s
,
alt
houghsuchconsentmustbemani fest edincer t
aincasesbyt hepr oper
formali
ties.
b.NOMI NATE–becausei thasapar ticularnameundert heCi vi
lCode
c.BI LATERAL/ MULTI LATERAL–becausei tgi vesr i
set or eciprocalobli
gations ;
becausei tisent er
edi ntobet weent woormor eper sons.
d. PRI NCIPAL:becausei tsexistencedoesnotdependont hel i
feofanot her
contract.
e.ONEROUS – because t her ei sa val uabl e consider ati
on;because cer tain
contri
but i
onshavet obemade.
f. PREPARATORY–becausei ti
sameansf orenter i
ngi ntofurthercontracts;in
thesenset hataf t
erithasbeenent eredi nt o,othercont ractsessent i
alint he
carryi
ngoutofi tspurpos escanbeent eredi nto.
g.Ther emustbeacont ributionofmoney,pr operty,ori ndustryt oacommon
fund.
h.Theobj ectmustbeal awful one.
i
.Ther emustbeani ntentionofdi vi
dingt hepr ofi
tamongt hepar tnerssi
ncet he
fi
rmi sforcommonbenef itorinter
estoft hepar tners.
j
.Ther emustbet heaffectiosoci etati
s-t hedesi retoformul ateanACTI VEuni on.
k.Anew per sonali
ty-thatoft hef irm-mustar i
se,di sti
nctf r
om t hesepar ate
personalit
yofeachoft hemember s.

Whatar
etheessenti
alf
eat
uresofpartner
shi
p?
a. Ther
emustbeaval i
dcontract
;
b. Ther
e mustbe mut ualcontri
but
ion ofmoney propert
y ori
ndust
rytoa
commonf und;
e. Thepar
ti
esmusthavecapaci t
ytoenteri
ntoacontr
act;
f. Theobj
ectmustbelawful
;
g. Thepur
poseoft heparti
esmustbet oobtai
nprof
it
swhichshal
lbedivi
ded

Ci
vi
lLawBarRevi
ewNot
es Page82
 amongthemselves;
h. Thear
ti
clesofco-part
ner
shi
pmustnotbekeptsecr
etamongmember
s.

Whatar
ethel egalcharacteri
sti
csofpar t
nershi
ps?
a.Partnership derives i
ts exist
ence from the voluntary agreementoft he
member s;
b.Ithasaj uri
dicalpersonali
tyseparat
eanddi sti
nctfr
om thepar t
ners;
c.Thepar tnersarel i
abl
epr o-rat
aforthecontractual
li
abil
i
ti
esoft hepart
nership;
d.thereismut ualagencybet weenthepartners;
e.Thepar t
nersarel i
ableafterexhausti
onofpar t
nershi
passet stotheextentof
theirpersonalpropertyex ceptt
helimit
edpar t
ners.

C.RULESTODETERMI
NEEXI
STENCE

Whatarether
ulesf
ordet
ermi
ningt
heexi
stenceofapar
tner
shi
p?
Theyar
e:

1.Excepti nt he case ofa par t

ner ship byest oppel s,per sonswho ar e not
partner sast oeachot herar enotpar tnersast othirdper sons.
2.Co- owner shiporco- possessi ondoesnotofi tsel
fest ablishapar t
nership,
whet hersuchco- owner sorco- possessor sdoordonotshar eanypr ofi
ts
madebyt heuseoft hepr operty
3.The shar i
ng ofgr oss r eturns does notofi tselfestabl i
sh a part
nership,
whet herornott heper sonsshar i
ngt hem haveaj ointorcommonr ightor
i
nter estinanypr opertyf r
om whi cht her et
urnsar ederived;
4.Ther eceiptbyaper sonofashar eoft heprofit
sofabusi ness ispr
imaf acie
evidencet hathei sapar tneri nt hebusi ness,butnosuchi nf
erenceshallbe
drawni fsuchpr ofit
swer er eceivedi npayment :
a.Asadebtbyi nstal
lment sorot her wise;
b.Aswagesofanempl oyeeorr entt oal andlord;
c.Ananannui tytoawi doworr epr esent ati
veofadeceasedpar tner
d.Asi nterestonal oan,t hought heamountofpaymentvar ywiththeprofit
sof
thebusi ness
e.Ast heconsi derati
onf orthesal eofagoodwi l
lofabusi nessorot herproperty
byinst all
ment sorot herwi se.(Art.1759)

D.HOW PARTNERSHI
PISFORMED

Whataret
hef
ormal
i
ti
esneededi
napar
tner
shi
p?
Thef
oll
owi
ng:

a) Forval i
dit
yofthecontr
act(amongtheparti
es)aswellasenfor
ceabi
li
ty,no
for
mi srequir
edasagener al
rul
e,r
egardl
essofthevalueofthecont
ri
butions
.
Theref
ore,thecont
ractmayevenbeor al
.(Magalonav.Pesayco59Phil
1 53)

Ci
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lLawBarRevi
ewNot
es Page83
 Excepti
on:Wheneverrealproper
ti
esorr
ealri
ghtsinrealpr
opert
iesar
e
contr
ibut
ed--r
egardl
essoftheval
ue–apubl
i
cinst
rumenti
sneeded.

b) Foreff
ectivi
tyofthepar
tner
shi
pcontracti
nsofaraninnocentthi
rdpersons
ar
econcerned,thesamemustber egi
ster
edifr
eal pr
opert
iesareinvol
ved.

I
nwhatform shallapart
ner
shipbeconstit
uted?
A partnershi
pmaybeconst it
utedi nanyform,hence,itmaybeoralorin
wri
ti
ng;butwher eimmovablepr opert
yorrealri
ght
sarecontri
but
edt
heret
o,
t
hepar t
nershi
pcont
ractmustbei napubli
cinst
rument(
Art.1
771)

Whatar
etheformali
ti
esneededforthecr
eat
ionofapart
ner
shi
p?
a) PersonalProper
tyLessthanP3,
000(tot
al)–maybeoral

b) P3, 000ormor e– mustbei napubl i

cinstrumentandr egi
steredinthe
Secur i
ti
esandExchangeCommi ssion.Buteveni ft
hisisnotcompl i
edwith,
partnershi
pissti
llval
i
dandpossessesadi st
inctpersonal
i
ty.Evidentl
y,t
he
requir
ement sar
emer el
yforadmi
nistr
ati
veandl i
censi
ngpurposes.

c) RealPr opert
y–r egardlessoftheval uecont r
ibuted,apubl ici
nstrumentis
needed,wi thanat t
achedi nventory;other
wi set hepar tnershipisVOI D and
hasnoj uri
dicalper
sonali
tyevenasbet weent hepar t
ies.(Art1773,CivilCode).
Mor eover,tobeef f
ecti
veagai nstthir
dparties,thepar tnershipmustal sobe
regi
s t
eredintheRegi st
ryofPr opertyofthepr ovincewher etherealpr opert
y
contri
butedisfound.Afterall
,thereisanalienationhereofar eal
rightonr eal
property.

d) Limi t
ed Part
ner
ship – mustbe r egi
stered assuch inthe Of
fi
ce ofthe
Securit
iesandExchangeCommi ssi
on;ot her
wise,iti
snotvali
dasal imit
ed
part
nership.However ,even wi t
houtsuch r egi
str
ati
on,itmay st i
l
lbe
considered a general par
tner
ship, and as such, possesses juri
dical
personali
ty.

E.PARTNERSHI
PTERM

Howmayt hedurat
ionofthepart
nershi
pbeagr
eedupon?
a.Express–Thishasadefini
teperi
od
b.I
mpl i
ed–Uponachi evementofit
spur
pose

Whendotherel
ati
onshipsofapartnerbegi
nwhi
cheachother?
The r
elat
ionshi
p begins f
rom the momentofthe execut
ion oft
he
cont
ract
.

Ci
vi
lLawBarRevi
ewNot
es Page84
 Whendoesthepart
nershipend?
Itendsontheexpir
ationofaf ixedt
erm oraccompli
shmentofaparti
cular
undert
aki
ng.Exceptthatifi
tdoesendonthi
sbasis,i
tbecomesapar
tnership
atwil
l.

Whatar ethei
nst
anceswherei
tbecomesapar t
nershipatwil
l?
a.Thereisnoterm,expr
essori
mpli
ed.Hence,thereisanagr eementt
hati
twil
l
conti
nuetoexi
st.
b.Partnersorsomeofthem whohaveactedhabitual
lyconti
nuesthebusi
ness
wit
houtorli
qui
dati
onoft
hepart
nershi
paff
air
s.

F.UNI
VERSALVS.PARTI
CULAR;GENERALVS.LI
MITED

Cl
assi
fypar
tner
shi
ps?Ast
oobj
ect–

1
. Uni versalpart
ner shi
pwhi chareoftwokinds:
i.universalpartnershipofall
presentpr
operty
ii
.uni versal
partner s
hipofprofi
ts
2. Par ti
cularPart
ner ship
i.e.A par t
nershipf orthe practi
ce ofa pr of
essi
on i
s a par
ti
cul
ar
par
tnership

Ast
oli
abi
l
it
yoft
hepar
tner
s-

1
.Generalpar
tnership–wher eallt
hepar t
nersaregeneralpar
tnerswhoar
e
l
i
abl
ewithal
ltheirproper
tyaf
teral
lpar
tnershi
passet
sareexhausted

2.Li
mit
edpar t
ner
ship–wherether
eisatl
eastonegener
alpar
tnerandatleast
oneli
mit
edpartner,t
hel
i
mi t
edpart
nerbeingli
abl
eonlytot
heext entofhis
cont
ri
but
ion.

UNI
VERSALPARTNERSHI
P:

Def i
neauni ver
salpart
ner
shipofallpresentpropert
y:
Auni ver
salpartner
shipofallpresentpropertyisoneinwhi cht
hepart
ners
contri
buteallt
hepropert
ywhi chactuall
ybelongstothem toacommonfund,
withtheintent
ionofdivi
dingthesameamongt hemselves,aswel
lasal
lthe
profi
tswhichtheymayacqui r
etherewith(Art
.1778)

Whatisauniver
salpartner
shipofallpresentpr
operty?
Inpart
nershi
pofallpresentproperty,t
hecontri
buti
onofthepar
tner
sconsi
sts
of:
a) Al l
thepropert
iesactual
lybelongingtothesaidpart
ner
s;
b) Thepr ofi
tsacquir
edwi t
hsaidpr operti
es.

Ci
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es Page85
 Defi
neauniversalpart
ner
shi
pofpr of
it
s:
Auniver
salpart
nershi
pofprofi
tscomprisesal
lthatt
hepar
tnersmayacquire
byt
heiri
ndustr
yorwor kdur
ingtheexist
enceofthepart
ner
ship(Ar
t.1780)

Dist
ingui
shuniversalpar
tnershi
pofal lpr
ofi
tsf
rom univer
salpar
tner
shipofal
l
presentpr
operty.
Thef ol
l
owingar ethedisti
ncti
onsbetweenuni ver
salpart
nershi
pofallpr
ofi
ts
anduniversal
partnershi
pofal l
presentproper
ty:

I
nuni
ver
sal
par
tner
shi
pofal
lpr
ofi
ts–

a) Onlytheusuf
ructoftheproper
ti
esofthepar t
nersbecomesthecommon
pr
opert
y(ownedbyt hem andthepart
nershi
p);nakedownershi
pisr
etai
ned
byeachoft
hepartners
.(seeal
soJacsonv.Bl
um,1Phi l
4)

b) Al lpr
ofi
ts acquir
ed by the i
ndust
ry orwork ofthe part
ner
s become
commonpr operty(regar
dlessofwhetherornotsai
dprofit
swereobtained
thr
oughtheusufructcont
ri
buted)
.

I
nuni
ver
sal
par
tner
shi
pofal
lpr
esentpr
oper
ty–

a) Allthepropert
yactual
l
ybel
ongi
ngtothepar
tner
sar
econtri
buted–and
sai
dpropert
iesbecomecommonproper
ty(
ownedbyal
lthepar
tnersandby
thepart
ner
ship)

b) Asar ule,asi
def
rom t
hecontri
butedproperti
esonl
ythepr
ofi
tsofsai
d
cont
ri
but
edcommonpropert
y(notot
herprofi
ts)
.

I
sfutur
epropertyincl
udedinuniversalpar
tnershi
pofallpresentpropert
y?
No.Thef ol
l
owi ngaret hereasonswhyf ut
ur e(byi
nher i
tance,legacy,and
donati
on)proper t
y cannotbe i ncluded i
nt he st
ipulati
on regardi
ng the
uni
versal
partnershi
pofallpr
esentpr oper
ty:

a) First,asarule,cont
ract
sr egardingsuccessi
onalr
ight
scannotbemade.
b) Secondl y, a par t
nership demands t hat the contr
ibut
ed t hi
ngs be
det
ermi nat
e,known,andcer t
ain.
c) Thirdly,auni ver
salpartnershi
pofal lpresentproper
ti
esr eal
lyimpl
i
esa
donati
on,and i tiswell-
known t hatgener al
l
y,futur
e propert
ycannotbe
donated.

PARTI
CULARPARTNERSHI
P:

Whati
saPar
ti
cul
arPar
tner
shi
p?

Ci
vi
lLawBarRevi
ewNot
es Page86
 I
sapar t
nershi
pwherefori
tsobj
ectar
edetermi
nat
et hingsfort
heuseoft
hei
r
f
rui
ts,orspeci
fi
cunder
taki
ng,ort
heexer
ciseofaprofessi
on.

Whataretheobjectsofaparti
cularpart
ner
shi
p?
a.Determinat
ethi
ngs–t heiruseorf
rui
ts
b.Specif
icundert
aking
c.Exerci
seofprofessi
on

Howmaythedurat
ionoft
hepartnershi
pbeagreedupon?
a.Expr
ess–Thishasadefi
niteperiod
b.I
mplied–Uponachievementofitspur
pose

Whendotherel
ati
onshipsofapartnerbegi
nwhi
cheachother?
The r
elat
ionshi
p begins f
rom the momentofthe execut
ion oft
he
cont
ract
.

Whendoesthepart
nershipend?
Itendsontheexpir
ationofaf ixedt
erm oraccompli
shmentofaparti
cular
undert
aki
ng.Exceptthatifi
tdoesendonthi
sbasis,i
tbecomesapar
tnership
atwil
l.

Whati
sapartner
shipatwil
l
?
Iti
saconti
nuedbusinessbythehabi
tualmanager
sal
thought
heper
iodhas
endedort
hepur posehasbeenaccompli
shed.

Whatar etheinst
anceswhereitbecomesapar tnershi
patwi
ll?
a.Thereisnoterm,expressori
mpl ied.Hence,thereisanagr
eementt
hati
twil
l
conti
nuetoexist.
b.Partnersorsomeoft hem whohaveact edhabituall
ycont
inuet
hebusi
ness
wit
houtli
quidati
onofthepar
tnershipaf
fai
rs.

Whataretheef
fect
sofapar
tner
shipatwi
l
l?
Theri
ghtsandduti
esoft
hepartnersr
emaint
hesameast
heywher
eatsuch
ter
minati
on.

GENERALDI
STI
NGUI
SHEDFROM LI
MITEDPARTNERSHI
P

Ast
oli
abi
l
it
yoft
hepar
tner
s-

1.Gener alpart
nership–wher eal lthepar t
nersaregeneralpart
nerswhoar e
li
ablewithallt
heirproper
tyafteral
l part
nershi
passet
sareexhausted.
2. Li
mitedpar t
nershi
p–wher ethereisatleastonegener
al par
tnerandatleast
onel i
mitedpar t
ner,theli
mitedpar tnerbeingli
abl
eonlytotheext entofhis
contri
bution.

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 G.PARTNERSHI
PBYESTOPPEL

Whatisest oppel?
Estoppeli s a barwhi ch precl
udes a per son from denying orassert
ing
anythingcont r
arytothatwhichhasbeenest abl
ishedat ruthbyhisowndeed
orrepr esentat
ion,ei
therexpressorimplied.Throughest oppel,anadmi
ssion
orr epresentati
on isrendered concl
usive upon t he person maki
ng i
tand
cannotbedeni edordisprovedasagainsttheper sonrelyi
ngthereon.

Whatismeantbypar t
nerbyest oppel?
Apartnerbyestoppelref
erstoaper sonwhor epresentshi
msel f
,orconsent
s
toanotherorothersrepresenti
nghimt oanyone,asapar tnerei
therinan
exi
sti
ngpartner
shiporinonet hati
sfict
it
iousorapparent.(
Art1825,NCC)

Whencanapar tner
shipbyestoppel exi
st?
Ifal
ltheact ualpart
nersconsentedt other epresentat
ion,t
hent heliabil
it
yof
theper sonwhor epresent
edhi mselftobeapar tnerorwhoconsent edto
such representati
on and the actualpartnersisconsi der
ed a par tnershi
p
l
iabi
li
ty.Thisisacaseofpar tnershipbyest oppel.Theper sonbecomesan
agentoft hepartnershi
pandhisactorobl i
gationthatofthepartnership.

Howdoesapersonnotapar
tnerbecomeapartnerbyestoppel
?
Hebecomesapart
nerbyest
oppelsunderanyofthef
oll
owingcases:

a. Hedi r
ectlyrepr
esentshimsel
ftoanyoneasapart
neri
nanexist
ing
par
tner
shi
pori nanon- exi
sti
ngpart
ner
shi
pwithoneormoreper
sonsnot
act
ualpar
tners;or

b. Hei ndi
rect
lyrepr
esent
shimsel
fbyconsent
ingt
oanot
herrepr
esenti
ng
himsel
fasapar t
nerinanexi
sti
ngpar
tner
shi
porinanon-
exi
sti
ngpart
nershi
p
(Art
.1825)

I
faper sonisadmi ttedasapar t
neri
ntoanexisti
ngpartnership,shallhebe
l
iablef oral
ltheobl igati
onsoft hepart
nershi
pi ncur
red byt hepar tner
shi
p
beforehisadmi ssi
on?
Yes,heshallbel iableforallt
heobli
gati
onsari
singbeforehisadmi ssi
onas
thoughhehadbeenapar tnerwhensuchobl i
gati
onswer eincurredbuthis
l
iabil
i
tyshal
lbesat i
sfiedonlyoutofpartner
shi
ppr opert
y,unl essthereisa
sti
pulati
ont
ot hecont rar Ar
y.( t
.1826)

Forobligati
onsoft hepar t
nershi
pincur
redaft
erhewasadmi t
tedintothe
part
nership,t
owhatext entshal
lhebeli
able?
Fortheseobligat
ions,heshallbeli
abl
etotheext
entofhi
ssepar
atepropert
y

Ci
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 af
tert
hepar
tner
shi
passet
shavebeenexhaust
ed.

Wheni sanexi sti

ngoract ualpar tnershi
pboundbyt her epresentati
onmade
byori nbehal fofaper son( part
nerbyest oppel)t
hathei samemberoft he
partnership?
Theonl yinstanceunderourl awwhenanexi sti
ngpar tner shipisboundbyt he
representat i
onmadebyori nbehal fofapar t
nerbyest oppel iswhenal l
ofthe
Partnershadgi ventheirconsentt osuchr epresentation.I twillbeonlythen
thatapar tnershipobli
gat i
onshal lr esul
t.(Art
.1825,NCC. )I nsuchacase,
anyt hi
r dper sonwho,r el
yingonsuchr epresent
ations ,gavecr edittothe
partnership,canhol dt hepar t
nershipaswel lasalloft hepar t
ners,i
ncludi
ng
thepar tnerbyest oppel ,l
iableinaccor dancewi t
hAr t1 816oft heNCC.A
good exampl e ofthiswoul d be t hose who,notbei ng member soft he
partnership,includetheirnamesi nt hefi
rm name.( Art1815,NCC)

Whati st hechar act eroft hel i

abili
tyofapar t
nerbyest oppelt opersonswho,
rel
ying ont her epr esent ati
ont hatt hef ormeri sapar tneri nanact ualor
appar entpar tnershi p,havegi vencr edittosuchpar tnership?
Thechar act eroft hel i
abilit
yofapar tnerbyest oppel toaper sonwho,r elyi
ng
ont her epr esent ati
ont hatt hef ormeri sapar t
neri nanact ualorappar ent
partnership,have gi ven cr editt o such par t
nership shal ldepend upon
whet hera par tner ship obl i
gation hasbeen cr eat ed ornot .Ifpartnership
obli
gat i
on has been cr eated,he i sliable as though he wer e an actual
memberoft hepar tnership.However ,whennopar t
ner shi
pobl i
gat
ionhas
beencr eat ed,suchaswhent herei sact ual
l
ynopar tner shi
porevenwher e
therei s,notal loft he member st hereofhad gi ven t heirconsentt ot he
represent ation,hei smer el
yl i
ablepr oratawi ththeotherper sonsconsent i
ng
tother epr esent ation.( Art.1825,NCC)

Doesest oppelcreateapar tnershi

p?
I
tmustbeemphasi zedt hatestoppel doesnotcr
eatepar t
nershi
pasbet ween
all
egedpar t
ners.Acont ract,expressorimpli
ed,isessenti
altothefor
mat i
on
ofapar tnershi
p.Thel awconsi dersthem aspart
nersandt heassoci
ati
onasa
partnersandt heassociat i
onasapar t
ner
shi
ponlyinsof arasi ti
sfavorabl
e
tothir
dper sonsbyr easonofequi t
ablepri
nci
pleofestoppel.

H.PARTNERSHI
PVS.JOI
NTVENTURE

Di
sti
ngui
shpar
tnershi
pf r
om joi
nt-st
ockcompany
a. I napart
nershipthecapitalisnotdi
videdint
oshar
eswhilei
naj
oint
-
st
ockcompanythecapitali
sdivi
dedi nt
osharesasi
nacorpor
ati
on;

b. I napar
tnershi
pthemanagementasagener
alr
ulei
svestedinal
lthe
par
tner
s,whi
l
ei najoint
-st
ockcompanyt
hemanagementisentr
ust
edtoa

Ci
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 boar
dofdi
rect
ors;

c. I n apar
tner
shi
pt hepar
tnercannotassi
gnhi
sint
eresti
nthepart
nership
toat hi
rdper
sontherebymakinghim apar t
nerwit
houttheconsentoft he
otherpart
ner
s,whil
ei najoi
nt-st
ockcompanyamembercant ransferhis
shareorsharesto anot
heratanyt imewi t
houtt
heconsentoft heot her
member s;

d. Apar t
nershi
pisanassoci
ati
onofper
sonswhi
l
eaj
oint
-st
ockcompany
i
sanassoci
ati
onofcapi
tal
.

I
. PROFESSI
ONALPARTNERSHI
P

Par
ti
cul
arPar
tner
shi
p-i
.e.Apar
tner
shi
pfort
hepr
act
iceofapr
ofessi
oni
sa
par
ti
cul
arpar
tner
shi
p

J.MANAGEMENT–Ar
ts.1
800-
1803

What ar ethe ri
ghts and obl
i
gations of a managing par
tner,whose
appoint
mentiscont
ainedint
hearti
cl
esofco-part
nershi
p?
a. Thepar t
nerwhohasbeenappoi ntedmanagerint hear
ticl
esofco-
part
nershi
pmay:

1. Execut
eallact sofadmi nist
rati
on,despi
tetheoppositi
onofhi s
par
tner
s;unl
essheshouldacti nbadf ai
th;
2. Hi spoweri sirrevocabl
e– meani nghecanber emovedf rom
managementonlyforj
ustandl awfulcauseandbyvot eofcontr
oll
i
ngi nt
erest
;
3. Hecannotexecut eactsofst r
ictdomini
onwithoutt
hecons entof
al
lt
heotherpart
ner Ar
s.( t.1800)

b. The par t
nerwho has been appoi
nted managi
ng par
tneraf
tert
he
const
it
uti
onofthepar
tner
shi
pmay:

1. Execut
eal lactsofadmi nis
trati
on,despitet
heopposi
ti
onofhi s
par
tner
s,unl
essheshoul dactinbadf ai
th;
2. Hi spoweri sr evocabl
e– meani ng hecanber emoved f
rom
managementatanyt i
mef oranycausewhat soever.
3.Healsocannotexecuteactsofst ri
ctdomi ni
onwit
houtt
heconsentof
al
lt
heotherpart
ners.(Ar
t.1800)

Whataret hepower soft woormor emanagingpart

nerswhoserespecti
ve
duti
esarenotspecif
ied?
Ift
woormor epar t
ner shavebeenappointedmanaging par
tner
swi t
hout
speci
fi
cati
onoft hei
rr espect
ivedut
ies
,orwithoutasti
pul
ati
onthatoneof

Ci
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 t
hem shal
lnotactwi
thoutt
heconsentofal
ltheot
her
s,t
hei
rpower
sar
ethe
f
oll
owing:

1. Eachonemaysepar at
elyexecut
eallactsofadmi nist
rati
on;
2. I foneormor eofthemanagi ngpartnersshal
l opposet heact
sofothers,
thenthe deci si
onoft hemaj or
it
yofthemanagi ngpar tnersshal
lpr
evail
;
3. I ncaseofat i
e,thent hemat t
ershallbedeci dedbyavot eoft he
contr
oll
i
ng int
erest;but
4.Noonemayexecut eact sofstri
ctdomini
onwi thouttheconsentofallthe
other partner
s.(Art.1801)

How shal
lmanagementbeexer cisedincaseiti
sst i
pul
atedt hatnoneofthe
managi
ngpar t
nersshal
lactwi t
houtt heconsentoftheothers?
1. Theconcur renceofal
l shal
l benecessaryfort
heval i
dityofanyact;
2. Theabsenceordi sabi
lityofanyoft hem cannotbealleged;unlesst
here
i
s i mmi nentdangerori
rreparabl einj
uryt
othepar t
nership.(Art
.1800)

Whoshal lmanaget hepar t

nershi
pi ncasenomannerofmanagementhas
beenagr eedupon?
1. Al lthe part
ner sshallbe consi dered agentsoft he part
nershi
p and
whateverany one oft hem may do al one,provided itis an actof
administ
rati
onshallbi ndt
he par tnership;
2. I ncaseoneormor eopposet heactofone,i tshallbesettl
edbyt he
vot
eof majori
tyofallthepar t
ners;
3. I ncaseoft i
e,itshal
lbeset tl
edbyt hevoteofcontroll
ingint
erest;
4. Noneoft hepar t
ner
swi thouttheconsentoft heothers,may:

a. Makeanyimpor tantal
terati
onintheimmovableproper
tyoft he
part
nershi
p, even i fit may be usefulto t he
part
nership;
b. I fthe r
efusalorconsentby t he otherpart
nersismanifestl
y
prej
udici
al t
o t
he inter
estoft he par
tner
shi
p,the court’
i
nter
ventionmaybesought . (Art
.1803)

Ifappoint
mentismadeintheArt
iclesofPar
tnershi
p,ist
hepowerr
evocabl
e
ori
rrevocabl
e?
Powerisi
rr
evocabl
ewit
houtjustorl
awfulcause.

Inremovi ngthemanagingpart
nerappoi
ntedint heArt
icl
esofPar
tnership,
whatist
hevot erequi
red?
(
1)To r emove him forJUST cause,t
he controll
i
ng part
ner
s(contr
oll
ing
f
inanci
alinter
est
)shouldvot
etoOUSTHIM.( Ar
t.1800,par.
1)

(
2)Tor
emovehi
m WI
THOUTCAUSE,orFOR AN UNJUSTCAUSE,t
her
e

Ci
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 mustbeUNANI
MITY(
incl
udi
nghi
sownvot
e).

Whati sthe ext

entofpoweroft he managi
ng par
tnerso named i
nt he
Art
iclesofPart
nershi
p?
(1
)I fheactsi nGOOD fait
h,hemaydoal lactsofADMINISTRATI
ON (not
owner shi
p)despi
tetheopposi
ti
onofhi
spart
ners.

(
2)Ifi
nBADf ai
th,hecannot(
however
,heispresumedtobeact i
ngingood
f
ait
h;moreover
,ifhe real
lyi
sin bad f
ait
hthe cont
rol
l
ing i
nter
estshoul
d
r
emovehi
m. )

I
fappoint
menti smadeothert
hanintheArt
icl
esofPar
tner
shipisthepower
r
evocabl
e ori rrevocabl
e?
Powert oactmayberevokedatanyti
me,wit
horwithoutjustcaus
e.

Whatisthelogi
cbehi
ndt
herul
estat
edabove?
Suchappoint
mentisameredel
egat
ionofpower
,revocabl
eatanyt
ime.(
11
Manresa381).

Whati stheext entofpowerofsuchmanager ?

Extentofpower :Aslongasher emainsmanager ,hecanper form allact sof
ADMI NISTRATI ON,butofcour se,i ft
heotherpeopl eopposeandheper si
sts
,
hecanber emoved.
Whatar ethepower sofamanagi ngpar t
ner?
Amanagi ngpar t
nercanbepr esumedt ohaveal lt
heinci
dentalpower sto
carryouttheobj ectofthepar tnershi
pint hetransact
ionofbusiness,subj ect
totheexcept i
on,however ,thatwhenpower sarespecifi
cal
lyr est
ri
ct ed,he
cannotexer ci
se the powersexpr essl
ydeni ed him.When t he articlesof
associati
ondonotspeci fythepower soft hemanagi ngpartner,hehas,on
pri
nciple,thepower sofagener alagent ,and evenmor e;and whent he
objectoft he company i sdet ermined,t he managerhasal lthe power s
necessaryf ortheatt
ainmentofsuchobj ect.

Whatistherulewhent
her
ear et
woormoremanagers?
Specif
ic Rul
es-Each mayseparat
elyexecut
e al
lactsofadmi
nist
rat
ion
(unl
i
mitedpowerstoadmi
nist
er)
.

Whatistheexcepti
ontother
ule?
Exceptifanyoft hemanagersshoul
doppose.(
Her
ethedeci
si
onoft
he
MAJORITYshallprevai
l
.)

Whohast
her
ightt
ooppose?

Ci
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 Ther i
ghttoopposeisnotgi
vent onon-
managersbecausei
nappoi
nti
ngthei
r
other par t
ners as managers, t
hey have str
ipped t
hemsel
ves of al
l
parti
cipat
ionintheadmi
nist
rat
ion.

Whenmusttheot hermanagersmaket heopposi

ti
on?
Befor
etheactsproducelegaleff
ectsinsofarast
hirdper
sonsareconcer
ned.
Reason– forthem todelayorf orthem toprotestaft
erthi
rdpart
iesare
af
fectedwoul
dbeunf ai
rtosaidthir
dpar ti
es.Moreover
,theactsoft
hefir
m
wouldbeunst
able.

Supposether
eisati
e,whati
sther
ule?
Thepartner
sowningtheCONTROLLING I
NTERESTpr
evai
l
s–pr
ovi
dedt
hey
areal
somanagers.

Whathappenswhent herehasbeenanef f
ecti
veopposit
ion,butst
il
lthe
managergoesaheadandexecut et
heactopposed?
Oppositi
onbyonepar tnertotheproj
ect
edactbyanot herissuff
ici
entto
preventit
;andift
helatt
er,i
gnori
ngsuchobj
ecti
on,goesaheadandexecutes
t
heact ,itshal
lbevoid,notonl
yasamongt hemember sbutalsoastothir
d
persons,whohadknowl edge,orwhocoul
dhaveknown,ofsuchoppos i
ti
on.

Whenwi llt
heactbeval iddespit
eopposi ti
onofothermanagers?
Itwil
lbevali
dwi t
hr especttothet hi
rdpersonwhocont r
actedwit
hapar tner,
i
fsuchthirdpersoni snotoftheopposi t
ion,andthecont
racti
sonewi t
hinthe
scopeoft headmi nist
rat
ionofthepar tnershi
p.Thepart
nercontr
acti
ngisan
agentoft hepartnershipandwi thinthescopeofhi sauthor
it
y,hiscontract
withaninnocentthir
dper sonbindsthepr i
ncipal
.

Whati ft
hereisaspeci
fi
cat
ionofdut
iesamongt hemanagers?
I
ft heseparateduti
esofthemanager sarespecifi
ed,suchaswhenonei s
givenchargeofsalesandanotherofpurchases,eachoneisconsi
deredas
exclusi
veandsolemanagerastotheactswithi
nthesphereofhi
sauthori
ty.

Whenmustt her
ebeunani mit
yi ntheactuati
onsofthemanagers?
I
ncasei tshouldhavebeenagr eedthatnoneoft hemanagingpartnersshal
l
actwi t
houtt he consentoft he others,the concurr
ence ofallshallbe
necessaryforval
idit
yoft heacts,andtheabsenceordi sabi
li
tyofanyoneof
them cannotbe al leged,unless ther
ei si mminentdangerofgr ave or
i
rrepar
ableinj
urytothepar t
nership.

Suppose one the managersisabsentorincapaci

tat
ed,i
sunani
mit
yst
il
l
requi
red?
Yes,f
ortheabsenceorincapaci
tyi
snoexcuse.

Ci
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 Whati sthe except
ion t
ot he rul
et hatabsence ori
ncapacit
yis no
excuse?Whenthereisimminentdangerofgr
aveorirr
epar
abl
einjuryt
othe
part
nershi
p.

I
nj ointmanagement ,whohast hedut yinsecuri
ngt heconsentoft heot her
partner?
I
nsuchcase,t heobl i
gat i
ontosecur etheconsentoft heot herpartnerrests
upont hepartnerenteringi nt
othecont r
act
.Itisnoti mposedupont hethird
personwhoent er
sintot hecontr
actandwhoi snotr equiredt overi
fywhet her
thepar t
nerenteri
ngi nt
ot hecontracthaspr evi
ouslyobt ainedt heconsentof
theot hers.I
tispr esumed t hatsuchconsenthasbeengi ven,unlesst he
contraryhasbeenpr eviouslymanifestedtothethi
rdper son.

Whathappenst oacont r
actenter
edi ntobyonepar t
nermade,notonl y
wit
houttheconsentoftheotherbutevenagai nsthi
swill
,ifthethir
dperson
act
edingoodf ait
handthetr
ansacti
onr ef
erstomat t
erswithinthebusi
ness
oft
hepar tner
ship?
Thecontractcannotbeannul
l
ed,withoutprej
udicetotheli
abili
tyofthegui
lt
y
part
ner
.

Whati st
her easonf ortheabovest atedr ul
e?
Thereasonf orthisruleisthenecessityofpr otecti
ngthi
rdper sonsf rom f
raud
anddeceit,ofwhi cht heycanbeeasyvi ct i
ms .Furt
hermor e,ther equi
rement
ofthe pr evi
ous appr ovalby the ot herpar t
nerobvi ouslyr eferstot he
executi
onoff ormalcont ract
si nwri
ting,andnott orout
inet r
ansact i
ons,such
asordinarypurchasesandsal esforaf i
rm engagedi nt
hebusi nessofbuying
andselli
ngmer chandiseofal lki
nds,nat urall
ycomewi thi
nt hescopeoft he
generalauthori
tyoft hemanagerofabusi ness.

Whatt heni st hedut yofat hi

rdper sondeal i
ngwi t
hapar tnershiprequiri
ng
unani mityi nt heact uat i
onsofitsmanager s?
Ther ulet hatt hi
rdper sonsar enotr equiredt oinquireast owhet herornota
partnerwi thwhom het ransactshast heconsentofal lthemanager s,forthe
presumpt i
oni sthatheact swi thdueaut horit
yandcanbi ndt hepar tnershi
p
appliesonl ywhent heyi nnocent l
ydealwi t
hapar tnerappar entlycarryi
ngon
i
nt heusualwayt hepar tnershipbusi ness.BecauseunderAr t.1802,i tis
i
mper ativet hati funani mityisr equi
redi tisessentialthatt herebeunani mi t
y;
otherwi se,t heactshal lnotbeval i
d,thati s,thepar tnershipi snotbound.I t
woul d bewi set hereforei fthet hir
d per soncoul di nquirewhet herornot
unani mityi sr equi r
ed,andi fso,i fsuchunani mi t
yispr esent.Thi sisforhi s
ownpr ot ection.Thus ,ithasbeenhel dt hatasal ebyapar tnerofpar tnershi
p
assetswi thoutt heconsentoft heothermanager sisnotval id.

I
I. RI
GHTSANDOBLI
GATI
ONSOFPARTNERSAMONGTHEMSELVES

Ci
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 PROPERTYRI
GHTSOFAPARTNER

Whatar
ethepr opert
yri
ghtsofapar t
ner?
a. Hi sright
sinspecif
icpartner
shi
pproper
ty;
b. Hi sinter
esti
nthepartnershi
p;and
c.Hisr
ightstopart
ici
pateinthemanagement.(Ar
t.1810)

Asr egar
dsspeci
fi
cpartner
shi
ppr oper
ty,whatrel
ati
onshipexi
stsbet
ween
andamongthepartner
s?
Apartneri
saco-ownerwithhispar
tnersofspeci
fi
cpartner
shippr
opert
y.(Ar
t.
1811)

Whataret
hei
nci
dent
soft
hisco-
owner
shi
p?
Theyare:

a.Apar tnerhasanequalri
ghtwit
hhispart
nerst
opossessspecif
icpartner
ship
propertyf orpar
tner
shi
ppurposes;subj
ecttoanyagreementbet weent he
partners;buthehasnori
ghtt
opossesssuchproper
tyforanyotherpurposes
withouttheconsentofhi
spar
tners;

b. A part
nercannotassignhi sr i
ghttospeci fi
cpar t
ner
shipproper
tyf orhi
s
personalpurposebuthecanassi gnitinconnectionwiththeassi
gnmentof
theri
ghtsofallt
hepar t
nersi
nt hesamepr opert
yforpar
tnershi
ppurpose.
c.Apar t
ners’
orexecutionforhispersonalobligat
ions,butcanbeat tachedorsubjectt
o
executi
onf oracl
aim agai
nstthepar t
nership.

d.Whenpar t
nershi
ppropert
yisatt
achedforapart
ner
shi
pdebt,t
hepart
ners,or
anyofthem,ortherepresent
ati
vesofadeceasedpar
tner
,cannotcl
aim any
ri
ghtunderthehomesteadorexempti
onlaws.

e.A part
ner’
suppor
t Ar
.( t.1811)

Whatisthenat
ureofapar
tner
’ ?
Apartner’ .
Thepartner
’ Ar
.( t
.1812)

Whataret
heright
sofapar t
nerinaspecif
icpartnershi
ppropert
y?
(1)A par
tnerhas an equalr ightwit
hi s partnersto possess speci
fi
c
part
ner
shi
ppropert
yforpartner
shippur
poses ;buthehasnor i
ghttopossess
suchpr
opert
yforanyotherpurposewit
houttheconsentofhispartners;

Ci
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 (2)Apartner’
i
nconnect i
onwi t
htheassi
gnmentofri
ght
sofallt
hepar
tner
sinthesame
proper
ty;(Reason:I
tishar
dtodeter
minehow muchi
texact
lyi
sunti
laf
ter
l
iqui
dati
on)

(3)A par t
ner
’
attachmentorexecution,exceptonacl aim againstt
hepart
nership.When
par t
nershi
ppropert
yisattachedforapart
nershipdebtthepar
tners,oranyof
them,ort herepresentat
ivesofadeceasedpar t
nercannotclai
m anyr i
ght
underthehomest eadorexempt i
onlaws;(Reason)
(4)A par t
ner
’
supportunderArt.291.

Whatisthe eff
ectofthi
sprovi
si
on t
othe separ
ate and di
sti
nctj
uri
dical
per
sonal
i
tyofthepar
tner
shi
p?

Thi
sAr ti
cl
eseemst obei nconsist
entwi t
ht heideaofasepar atejur
idi
cal
personal
it
yofthepar tner
ship.Thepar t
nership,asajur
idi
calperson,owns
everypropert
yint hecommonpat ri
mony.Thesoci alpat
rimonydoesnot
belongtothepar
tners,buttothepartner
shipitsel
f.

Whatisapar tner
’ ?
A partner’
surpl
us.The part
ner
’ Ar
.( t
.
1812)

Whatisapar t
ner’ ?
A part
nerhasnoi ndivi
dualpropert
yi nanyspeci fi
cassetsofthefi
rm,but
eachpar tner’
aft
erpar t
nershipdebt
sar epaidandpar t
nershipaccountshavebeensettl
ed.
Theinterestofonepar t
nerintheassetsofapar t
nershipdoesnotenti
tl
ehim
toanypar ti
cularpor
ti
onofsuchasset s,butmer el
yconf ersuponhi
m ar i
ght
toanaccount ingwit
hot hermember softhepar t
nership,andwhenaff
airsof
thepartnershi
paresettl
ed,suchpartnershall
receivethesharetowhi
chhei s
enti
tl
ed.

A partner ,however ,subjectto agr eementbet ween t he par

tner
s,hasan
equalr ightwi t
h hispar t
nerst o possessspeci f
icpar tner
ship pr
opertyf or
part
ner ship purposes,buthasno r ightto possesssuch pr opert
yf orhi s
personalorot herpur poseswi t
houtt heotherpartner’ .Onepar tner
hasnor ighttotheexcl usi
vepossessi onandcont rolofspecif
icpartnership
propertyasagai nsttheotherpar tner,unti
labal anceofaccount sisst ruck
betweenhi m andhisco- part
nerandt heamountofhi sinter
esti
sascer t
ained.

Ci
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 Whatconst it
utesapar t
ner’ ?
Thei nterestofapar t
nerinpartnership pr
opert
yand businessisthenet
balance f ound to be due him af t
erpaymentofpar tnershi
p debt
s and
adjustmentofpar t
nershi
p accountsbet ween hi
mselfand hisco-part
ner.
Suchi nteresti s“propert
y”andissus cepti
bleofbei
ng sei
zedunderl egal
process ,orofbei ngsoldandconveyed,aswel lasofbeingmadel i
abl
ef or
hi
ssepar atedebts.

Isapartner ’
hi
s personaldebt s?
Yes,beinghi spersonalproperty,hi
sinteresti
nthepart
nershi
pondue
appl
icati
ontoa compet entcourtbyanyj udgmentcredi
tormaybechar gedfor
thepaymentoft heunsat i
sfi
edamountoft hejudgmentdebtwi t
hint
erestt
hereon.
Thecourtwhichi ssued t hechar gi
ngor dermayeven:

a. appointarecei
verofthedebtorpart
ner’ ,andany
other moneydueort ofal
lduetohiminrespectofthepar
tnershi
p;
b. makeal l
otherorder
s,dir
ecti
ons,account
sandi nqui
ri
eswhichthe
debtor par
tnermighthavemade,orwhi chthecir
cumstancesof
thecasemayr
equi
re. (Art
.1814)

Maythei
nter
estsochar gedber edeemedandwithwhatproper
tyshall
itbe
redeemed?
a. Thei nt
erestchargedmayber edeemedatanyt
imebef or
eforecl
osure;
or
b. I ncaseofsaledirect
edbyt hecourtmaybepurchasedwit
houtcausi
ng
a di
ssolut
ion.

1. Wi
thseparat
epr opert
y,byanyoneormoreofthepart
ners;or
2. Wi thpart
nershippropert
y,byanyoneormoreofthepart
nerswit
hthe
consent ofall
thepartner
swhosei
nter
est
sarenotsochargedor
sol
d.(Ar
t.1
814)

Whatotherr
ightmayapar t
nerwhoseint
eresthasbeensochar
gedavail
of?
Wit
hrespecttohisint
eresti
nthepart
nershi
p,hemayavailhi
mselfoft
he
exempt
ion laws,afterpart
ners
hipdebtshavebeenpaid.(Ar
t.1
814)

Canapar tnerassi
gnhiswholei nt
eresti
nt hepar
tner
shi
ptoanotherwit
hout
theconsentoftheotherpar
tners?
Yes,becausehi sint
eresti
nt hepar t
nershipi
shispersonalpr
opert
y.(Art
.
1813)

Wil
lt
heassi
gneebecomeapar
tner
?
No,unl
essconsent
edt
obyt
heotherpar
tner Ar
s.( t
.1813)Theassi
gnori
sst
il
l

Ci
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 t
hepar
tner
,wi
thar
ightt
odemandaccount
ingandset
tl
ement
.

Whatar ethe eff

ect
sofconveyance bya part
nerofhisi nter
esti
nt he
par
tner
ship?
I
fapartnerconveyshi
swhol
eint
eresti
nthepar
tnershi
p,ei
theroftwot
hings
mayhappen:

1)Thepar
tner
shi
pmayst
il
lremain;or
2)Thepar
tner
shi
pmaybedi ssol
ved.

Butsuchmereconveyancedoesnoti
tsel
fdi
ssol
vet
hef
ir
m;t
her
efor
e,i
n
gener
alt
hepar
tner
shi
pr emai
ns.

I
ntheabsenceofanagreementtot
hateff
ect,theconveyancebyapart
nerof
hi
s whol
eint
eresti
nthepar
tnershi
pdoesnotdissol
vethepartner
shi
p.(
Art
.1813)

OBLI
GATI
ONSOFPARTNERSTOTHEPARTNERSHI
P:

Whatarethespecif
icsobli
gati
onsofapar t
ner?
a.Dutytocontri
bute
b.Dutytocreditt
hefir
m
c.Dutytopaydamagescausedbyhi sfault
d.Obli
gati
ontoaccountf orandholdastrusteeunaut
hor
izedpr
ofi
ts
e.Obli
gati
onnott oengageinanotherbusiness

Whatarether
ulesofthepartnersregardingt hedut ytocont r
ibut e?
a.Thecontr
ibut
ionmustbemadeatt het i
met hepartner shipi
sent
ered
i
nto unl
essadi ff
erentperiodi ssti
pulated.
b.Nodemandi sneededt oputt hepar t
nerindef aul
t
c.Thepart
nermustexer ci
seduedi l
igencei npr eser
vingt heproper
tyto
be contr
ibut
edbef oreheact ual
lycont ri
butest hesame.
d.Apartnerwhopr omisestocont ributetot hepar t
ner shipbecomesa
debtorofthepar tnershi
p.

Whatar ether ulesont hedut ytodelivert hefruit

s?
a.Ifpropertyhasbeenpr omised,thef ruitsthereofshoul dal
sobegi ven.
b.Thef r
uit
sr eferredtoar ethosearisingf rom thetimet heyshouldhavebeen
deli
vered,withoutaneedofanydemand.
c.Ifapar t
neri sin bad faith,he isl iable notonlyf orthe f
ruit
sact ual
l
y
produced,butal sof orthosethatcoul dhavebeenpr oduced.
d.Ifmoneyhasbeenpr omi sed,interestanddamagesf rom thet i
mehe
shouldhavecompl i
edwi thhisobli
gat i
onshoul dbegi ven.
e.Nodemandi sneededt oputt hepar t
neri ndef aul
t
f.I
tisdeli
very,act ualorconstructi
vet hatt r
ansfersowner shi
p

Ci
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 Whataretherul
esont hedut
ytowar rant
?
a.Thewarrant
yincaseofevictionrefer
stospeci
ficanddet
erminat
ethings
al
readycommuni cat
ed.
b.Therei
sevict
ionwheneverbyf i
naljudgmentbasedonarightpri
ort
ot he
sal
eoranacti mput abl
etothepar tner
,thepart
nershi
pisdepri
vedoft he
wholeorapartofthethi
ngpurchased.

Whenisapar
tnerconsi
der
edadebt oroft
hepart
nershi
p?
Apar
tneri
sconsi
deredadebtorofthepart
ner
shi
pforwhateverhemayhave
pr
omisedt
ocontri
butet
her
eto.(Ar
t.1786)

Whatisther
emedyagainstapart
nerwhofail
stocont
ribut
e?
Act
ionisoneforcol
l
ect
ionbecausethedef
ault
ingpar
tneri
sadebt
or.

Whataretheobl
i
gat
ionsofapar
tnerwi
thr
espectt
ohi
spr
omi
set
ocont
ri
but
e
proper
ty?
Theyare:

a. Tocont r
ibut
et hepropert
yatt hebegi
nni
ngoft hepartnershi
poratt
he
ti
me sti
pulat
ed.
b. Toanswerf orthewar r
antyi
ncaseofevicti
oninthesamecasesandi n
thesame mannerast hevendorisboundwit
hrespecttothevendee;
c. Tobel i
ableforthefrui
tst
hereoffr
om t
hetimethepr opert
yshoul
dhave
beendeli
veredwithouttheneedofanydemand.( Ar
t.1786)

Howi sappr
aisalmadeifthecont
ri
buti
onisaproper
ty?
Fi
rst
ly,asprescr
ibedinthecontr
actandi nt
heabsencet
her
eof
,byexper
ts
chosenbypartnersandatthecur
rentpri
ce.

I
fthecapitalorpar tther
eofwhichapar tneri
sboundt ocont r
ibut
econsist
sof
goods,howshal lsai
dgoodsbeappr ai
sed?
Theappr aisalmustbemadei nthemannerpr escr
ibedint hecont
ractof
part
nership.I ntheabsenceofsti
pulat
ion,itshallbemadebyexper tschosen
bythepar t
ner sandaccor di
ngto cur
r entprices. Anysubsequentchange
ther
eofshal lbefortheaccountoft
hepar t
nership.(Ar
t.1787)

Aft
ert he goods have been cont r
ibut
ed by the part
ner,willt
he r
isk of
subsequentchangeintheirvaluesti
l
lbeburdenedbyt helat
ter
?
No,iti
sshift
edtothepartnership.

Whatarethel
iabi
li
ti
esoft
hepart
nerwhohasundert
akentocont
ri
buteasum
ofmoneyandf ai
l
stodoso?
Thepar
tnerbecomesadebtorf
orthei
nter
estanddamagesfr
om theti
mehe

Ci
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 shoul
dhavecompl
i
edwi
thhi
sobl
i
gat
ion,wi
thoutnecessi
t Ar
yofdemand.( t
.
1788)

Whatr ul
eshallapplyi
nt heeventapart
nerconver
tspart
ner
shi
pmoneyt ohi
s
personaluse?
The partnershallbe l
iableforthe amounthe mayhave taken f
rom t
he
partner
shipcofferswit
hi nt
erestanddamagesf r
om theti
meheconver t
ed
theamountt ohisownuse.( Art
.1788)

Whatar et heconsequencesi fani ndustri

alpartner,wit
houtconsentoft he
otherpartners,engagesi nanot herbusi ness?Or ,Mayani ndustr
ialpar
tner
engageinbusi nessforhimself
?
a.Hecanbeexcl udedint hef
irm.
b.Ther emai ni
ngpar t
nerscanavai loft hebenef i
tssaidi ndustr
ialpar
tner
earnedplusdamages .
*Thecapi tal
i
stpar t
nershavet her ightt o excl
udehi m from thef ir
m with
damages;or
*The capital
istpartners can availt hemselves oft he benefit
s which the
i
ndustri
alpartnermayhaveobt ainedwi thar i
ghttodamages( Art
.1789)

An i
ndust
ri
alpartnercannotengage i
n busi
nessforhi
msel
f,unl
esst
he
par
tner
shi
pexpresslyper
mit
shimtodoso.(Art
.1789)

Whati ft
her eisnocompet i
ti
onbet weenthebusinessofthepart
ner
shi
pand
thei ndustr
ialpartner?or,Doest hi
sprohi
bit
ionapplytoabusinesst
hesame
ast hebusinessoft hepar t
nershi
p?
Sti
lltheindustrialpart
nerisli
ablebecauseallhisi
ndustr
ymustbedevotedto
thepar t
nership.Thepr ohibi
ti
onext endstoanyki ndofbusinessbeitthe
sameordi ffer
entf r
om thebusinessofthepartner
ship.

Howmuchi stobecontr
ibut
edinthepart
ner
ship?
Thepart
nersshal
lcont
ri
buteequalshar
estothecapi
taloft
hepar
tner
shi
pif
ther
eisnosti
pul
ati
ontothecont
rary.

I
ncaseofi mminentl ossofthebusinessofthepar t
nershi
pwhi chpar t
ners
arerequired to contri
bute addi
ti
onalcapit
alto save the busi
nessoft he
part
nership?
Thecapitali
stpartnersareunderobli
gat i
ont
ocont r
ibuteaddit
ionalcapit
alto
savethevent ur
eunl essther
eisanagr eementt
othecont rar
y(Art.1791)

Whati sthe remedy in case a capit

ali
stpart
nerr ef
uses to contr
ibute
addi
ti
onalfundwhenheisboundt odoso?
Thecapit
ali
stpart
nerwhor ef
usestocontri
buteaddi
ti
onalcapit
alt
osavet he
vent
ureshallbeobl
igedt
osellhi
sinter
esttotheot
herpartner
s.(Ar
t.1791)

Ci
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 Ifapar t
nerfail
stocontri
but
ewithinasti
pulat
edti
mewhatwaspr omi
sed,
maypar t
nershi
pcontr
actberesci
nded?
Generalrul
e,No,rescissi
onisnottheproperremedy;theremedyshoul
d
coll
ectwhati sowi
ng. Howeveri fthedefaul
ti
ngpart
nerisal
readydead,
resci
ssi
onisproper
.

Whichpartneri snotboundt ocont ri

but
eaddi ti
onalf
unddespi teimminent
l
ossofthebusi nessofthepartner
ship?
Theindust
rialpar t
nerisnotbound t o contri
buteaddit
ionalfund because
havi
ngcontributedhisenti
reindustr
yhehasnot hi
ngmoret ocontri
bute.But
i
fhei spartlyindustr
ialandcapitali
stpartner
,asacapi t
ali
stpart
nerhei s
bound t
o cont ri
bute addi
ti
onalfund unlessthereisan agr eementt othe
cont
rar
y.(Art.1791)

Whatar etheruleswhent hereexi st

sacr edi
ttot hefi
rm andpaymenti s
made toapar t
nerwhoi sal
soacr editorofthesamedebt or
?
a.Ift
hemanagingpar t
nergivesreceipttothef i
rm,itist
hefir
m’
exti
ngui
shed.
b.Ifmanagingpartnersgivesreceiptforhisdebt ,amountcollect
ionshal
lbe
appli
edinproport
ion.
c.Bywayofexcept i
on,ofthecreditorappliesbywayofappl icati
onprovi
ded
thedebttothepartnerismor eoneroust othedebt or
.

Whatar ether equisit

esifadebtiscol l
ect
edwherethedebtorowesbotha
part
nerinhi sper sonalcapacit
yandt hepar
tner
shi
p?
a.Twodebt sf rom thesamedebt or
b.Bothdebt sar edueanddemandabl e
c.Col l
ecti
ng par t
neri s a managing par
tner
,ifnotthereis a bas
isfor
suspi
ciont hatt hepar t
nerisacti
ng forhisownbenefit
. Also,heisina
posit
iontogi vepr efer
encetohiscredit.

Whatistheobl i
gati
onofapar tnerwhohasr eceivedinwhol eori npart,his
shar
eofapar t
nershi
pcr edi
twhent heotherpart
ner shavenotcol lect
edtheir
shar
eandt hepar t
nershi
pdebtorthereaf
terbecomesi nsolvent?
Thepart
nerwhohascol lect
edhissharemustbr ingtothepar tnershipcapi
tal
whathereceivedevent houghhemayhavegi venar eceiptforhisshareonly.
Thi
srul
eappl i
eswhet herthepartnerwhor ecei
veshi sshareisaut hori
zedto
manageornot .(Art
.1793)

I
fthepar t
nershipsuffer
slossordamageduet ot
hefaultornegli
genceofa
part
ner,whoshal lberesponsi
ble?
I
tistheverypar t
nerwhobyhi sf aul
tornegl
i
gencecausedlossordamageto
t
hepar t
nership.(Art
.1794)

Ci
vi
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01
 Cant hepar t
nerwhoi sr
esponsi
bleforthedamagecompensat ethem wit
h
theprof i
tsandbenef i
tswhi
chhemayhaveear nedfrom thepart
nershi
pby
hisi
ndust ry?
No. Butt hecourt
smayequi t
ablyreducehisresponsibi
li
tyi
fthroughhi
s
extr
aor di
nar yef
fort
sinotheract
ivi
ti
esoft hepar
tner
ship,prof
it
smayhave
beenr eali
zed.(Art
.1794)

Whyaredamagesnotoffsetbybenefi
ts?
a.Part
nerhasadutytosecurebenefi
ts,dut
yalsonottobeatf
aul
t.
b.Si
nceitisaduty,compensati
ontakespl acepresuppose2per
sonswho
ar
erecipr
ocal
lyl
i
ableofeachother.

I
II
.OBLI
GATI
ONSOFPARTNERSHI
P/PARTNERSTOTHI
RDPERSONS

Whati st her uler egar ding thel iabil

it
yoft hepar tnersf ort hecontractual
obli
gationsi ncur red by t he par t
ner ship? Or ,How ar e par t
nersincl
uding
i
ndust r
ialonesl iablef orcont r
actual obli
gati
onsoft hepar tner shi
p?
Allt
hepar t
ner s,includingt heindust ri
alpartners,areliabletocr edit
orsofthe
part
ner shi
pf ort heobl i
gat i
onscont ractedinthenameandf ortheaccountof
the par t
nershi p.The debt s and obl igat
ions oft he par tnershi
p are,in
substance,al sot hedebt sandobl igati
onsofeachi ndi vi
dualmemberoft he
fi
rm.Thel i
abilit
yt odebt or( partners)ispr or ataandsubsi diarywithal
ltheir
propertyforcont r
act ual obligati
onsoft hepartnershi
p.( Art
.1816)

Whati smeantbyt het er

m“ prorata”inthedi str
ibut
ionofthepart
nershi
p
l
iabi
li
tyamongt hepart
ners?
Prorata,asusedi nthelaw,mustbeunder st
oodt omeanequall
yorjoint
ly
and notpr opor
ti
onat
elywhichisi t
sliter
almeani ng becausepro-r
ati
ng is
based on t he numbers ofpartners and noton t he amountoft heir
contr
ibut
ionstothecommonf und,subjecttoadjustmentamongthepart
ners.

Thefactt hatapar tnerhasl eftt

hecountr
yandt hepaymentofhi sshareof
theli
abi l
i
tycannotbeenf orced(Co-Pit
cov.Yul o,8Phi l544.
);orhi
sli
abili
ty
wascondonedbyt hecreditor(I
sl
andSales,I nc.v.Uni t
edPioneer
sGen.
ConstructionCo.,65SCRA 554. )cannotincreasethel i
abil
i
tyoftheot her
part
ner s.
Pr o-
rat
aliabil
it
yher e,doesnotmeanpr oport
ionatetothepart
ner’
contr
ibutionbutisunder st
oodt omeanequal l
ydividedamongt hepart
ners.

Whati smeantbyt hesubsidi

aryli
abil
it
yoft hepar t
nerswi t
hr egar
dstothe
part
nershipdebtsandobli
gati
onstothi
rdper sons?
Theliabil
i
tyoft hepar
tnerstothecreditor
soft hepar tner
shipissubsidi
ary
becauset heybecomel i
ableonl
yafterallthepartnershipassetshavebeen
exhausted,unlessa parti
cul
arpartnerassumesa separ ate obli
gat
ion to

Ci
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 perf
orm a par t
nership contr
actor make hi msel
f sol
idar
yl i
abl
e on a
part
nershi
pcontract.Itmeanst hatpart
ner
shipasst
sfir
stbeexhaustedfor
t
hepaymentofpar t
nershi
pobl i
gati
ons,befor
ethepar t
nersshal
lbecome
l
iabl
ewi t
hthei
rpersonalpropert
y.

Howdoyour econci l
et heexcept i
onofani ndustri
alpar t
nerfrom l
ossandhis
pro-rate l
iabili
tyf orpartnershipcontractualobli
gati
ons?
Theexcept i
onofani ndus tri
alpart
nerf r
om lossisapplicabl
eonl yamongt he
partners t
hemsel ves,butthei ndust
ri
al part
nerisnotexemptf rom partner
ship
l
iabi
lit
ytot hi
rd par t
ycreditors.Theindust r
ialpart
nerisli
ableforhispro-r
ate
sharetot heextentofhi s personal propertyaft
erpar t
nershipasstshavebeen
exhausted.Butt hei ndustri
al par t
nercanseekr ei
mbur sementf orwhathehas
paidfrom theot herpar t
ners,for amongt hemselvesheshal lbeexempt ed
fr
om loss .

Wheni sapart
ner
shipcontractualobli
gati
oni ncur
red?
Apar t
ner
shi
pcontractual
obli
gationarisesfrom acontractwhichisenter
ed
i
ntointhe nameandf ortheaccountoft hepartnershi
p,forapparentl
ycarryi
ngon
t
heor dinarybusi
nessofthepartnershi
p,byapar tnerauthori
zedbyt hepartner
shi
p.
(
Art.181 8)

Whatistheef fectofasti
pul
ati
onamongt hepar
tner
scontr
arytothepro-
rat
a
and subsidi
aryliabil
it
yofthepart
ners?
Suchsti
pulationisval
idandenforceabl
eamongthepar
tners,butvoi
dandof
noef
fect i nsof arasitaf
fectst
herightsoft
hir
dpar
tycr
edi
tors
.

I
sani ndust r
ialpartnerexempt edf r
om liabil
i
tytot hi
rdpersonsf ort
hedebt s
ofthepar tner shi
p?
No.Theexempt ionoft heindust ri
alpartnertopayl ossesrelatesexcl usively
totheset tlementoft hepar tnershipaffairsamongt hepar t
ner sthems el
ves
andhasnot hingt odowi ththel iabil
i
ti
esoft hepar tnerstothirdper sons.An
i
ndust ri
alpar tnerthereforeisnotexempt edfrom li
abili
tyt
ot hirdper sonsf or
thedebt soft hepartnershi
p.Nei t
heronpr inci
plenoronaut hori
tycant he
i
ndust ri
alpar t
nerber el
i
evedf r
om l i
abil
i
tyt othi
rdper sonsf
ort hedebt softhe
partner p(
shi Compani aMar i
timav.Munoz,9Phi l
.326)

I
ntheabsenceofanyagreementt
othecontr
ary,whoshal
lactasagentofthe
part
nershi
p?
Everypart
neri
sanagentoft
hepart
nershi
pforthepur
poseofit
sbusiness.
(
Art
.1818)

Whatist
hemutual
agencyrul
e?
Art1818pr
ovi
desfort
hemutualagencyr
ulewhi
chstat
esthat,“ever
ypart
ner
isanagentoft
hepartner
shi
pforthepur
poseofit
sbusiness,andtheactof

Ci
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 ever
y partner,incl
uding t
he execution i
nt he par
tner
shi
p name ofany
i
nstr
ument ,forapparent
lycarr
yingoni ntheusualwayt hebusi
nessofthe
part
nershi
p ofwhi ch he isa memberbi ndsthe part
ner
shi
p,unlessthe
part
nersoact inghasi nfactnoaut hor
it
yt oactforthepart
nershi
pinthe
part
icul
armat t
er,andthepersonwi t
hwhom hei sdeali
nghasknowledgeof
thefactt
hathehasnosuchaut hor
it
y.”

Shouldat hir
dpersoninquireont herestr
icti
onsimposedbyt hepar t
ner shi
p
uponapar tnerbef
oredealingwiththepartnershipthroughthesaidpartner?
No.Thi r
dpersonsarenotboundt oinquir
ei nt
ot heexistenceoftherest
ricti
on
butmayr elyonthepr esumpt i
onthatapar tnermaybi ndthepar t
ner shi
p
(Li
tt
on v.Hi l
l& Coron,67 Phi l509).However ,no actofpar t
neri n
contravent
ion ofa restr
icti
on oraut hori
ty shallbind the partner
shipt o
personshavingknowledgeoft herest
ri
cton(
i Art1818,lastpar.
)

Whencanapart
nerbindt hepar
tnershi
p?A par
tnerbi
ndst
hepar
tner
shi
p
whent
hefol
l
owi
ngrequisi
tesar
epresent:

(
a) Whenhei
sexpressl
yauthor
ized ori
mpl
iedl
yauthori
zed;
(
b) Whenheact
sinbehalfandi
nt henameofthepart
nershi
p.

Whataret he i
nst
ancesofi
mpl
i
ed aut
hor
izat
ion ofapar
tnert
o bi
nd t
he
par
tner
shi
p?
Thefol
l
owing:

(
a) Whent heot herpart
nersdonotobject,alt
hought heyhaveknowledgeof
theact
;
(
b) Whent heactisfor“appar
entl
ycarr
yingoni ntheusualwaythebusiness
ofthepartner
ship.
”(Thisi
sbindingont hebi ndi
ngont hefir
m evenift he
part
nerwasnotauthori
zed,pr
ovidedt
hatt hethir
dpartyi
singoodfai
th)

Whenwi ll
theactofthepar t
nernotbindthepartnershi
p?
a)When,al t
houghf or“apparentl
ycarryi
ngtheusualwayt hebusinessofthe
par
tnershi
p,”st
il
lthepartnerhasinfactnoauthori
tyandthe3rdpersonsknow
t
hatthepar t
nerhasnoaut hori
ty.
b)When the actisnotf orappar ent
lycarr
ying on inthe usualwayoft he
par
tnershi
pandt hepartnerhasnoaut hor
it
y.

Howispart
ner
shipt
ortcommitt
ed?
Apar
tner
shipt
orti
scommi t
tedi
nanyoft
hef
oll
owi
ngways:

a.Where,byanywrongfulactoromissionofanypart
neract i
ngintheordinary
cour
seofthebusi
nessofthepartnershi
porwithauthori
tyofhisco-par
tners,
l
ossorinj
uryi
scausedtoanyperson,notbeingapartnerinthepart
nership;

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 b.Wher eonepar tneractingwi thi
nthescopeofhi sappar
entauthori
tyrecei
ves
moneyorpr opertyofat hir
dper sonandmi sappl
i
esit
;or
c.Wher ethe par t
ner shi
pi nt he course ofitsbusi
nessrecei
vesmoneyor
propert
y ofa t hir
d per son and the money orpr oper
ty so received i
s
misappli
edbyanypar tnerwhi l
ei ti
sinthecustodyofthepar t
nershi
p.(Art
.
1822;Art.1823)

Wher e,byanywr ongfulactoromissi

onofanypar t
neractingintheor di
nary
courseoft hebusinessoft hepartnershi
porwi t
htheaut hor
it
yofhi sco-
part
ners,lossorinjur
yi scausedtoanyper son,notbeingapar tnerinthe
part
nership,oranypenal t
yincur
red,thepartner
shi
pi sli
abletherefortothe
sameext entasthepartnersoact
ingoromi t
ti
ngtoact.(Ar
t1822NCC)

Whoshallbechargedli
abl
ef orpar
tner
shiptor
t?
Allpar
tner
s areliabl
e sol
idari
l
y withthe part
nershi
pforany penal
ty or
damagearisi
ngfr
om apar t
nershi
ptort
.(Art
.1824)

Cant hepar tnership behel dl i

ablef orthewr ongfulactoromi ssionofa
part
nerevent hought heot herpar tnersdi dnotpar ti
cipateinsuchactor
omission?
Thel aw expr esslyprovidest hatthepar t
ner shi
pisli
ablef orthewr ongfulact
oromi ssionofanypar tneractingint heordinarycourseoft hebusinessofthe
part
ner shipiflossorinjuryresult
st hereby.Thisrul
eremai nstrueevent hough
theotherpar tner sdi
dnotpar ti
cipateinorr atif
y,orhadnoknowl edgeoft he
actoromi ssi
on.

Whataret
her
equi
sit
esforli
abil
i
tyunderArt
icl
e1822?
Thef
oll
owi
ngaret
herequisi
tesforl
i
abil
i
tyunderArt
icl
e1822:

1) Thepartnermustbegui
lt
yofawrongfulactoromissi
on;and
2) Hemustbeact ingint
heordi
narycourseofbusinessorwit
htheaut
hor
it
y
ofhi
sco-
par t
ner
sevenift
heacti
snotconnectedwi t
hthebusi
ness.

Whatar ether
equisit
espr escribebylaw i
nor derthatapar tnershi
pmaybe
hel
dliabl
etoathi
rdper sonfort heactofoneofthepar t
ners?
I
tmustbe obser ved thatt he actofone oft he partnersf orwhi
ch a
part
nershi
pmaybehel dli
able,mayconst it
uteeit
heracont ractualobl
i
gati
on
(Ar
t1816,NCC)oranobl igationari
singfr
om acr iminaloff
enseoraquasi -
del
i .(
ct Art
s1822,1823,1824,NCC. )

I
nthecaseofacont
ract
ual
obl
i
gat
ion,t
hef
oll
owi
ngr
equi
si
tesmustconcur
:

1
) t
hecontr
actmustbeent
eredint
oint
henameandf
ort
heaccountoft
he
par
tner
shi
pandunderi
tssi
gnat
ure;

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 2) t
hepar
tnermustbeaut
hor
izedt
oactf
ort
hepar
tner p.(
shi Art1816,NCC)

I
nt hecaseofanobl i
gationari
si
ngfrom acriminalof
fenseoraquasi-
deli
ct,
theonlyrequi
sit
eprescri
bedbyt hel
awisthattheactmustbeper f
ormedby
apar t
nerinntheordi
nar ycour
seofthebusinessofthepartner
shi
pwi t
hthe
authori
tyofhi
sco-partner.(
s Ar
t1822,NCC)

Whencant hefir
m andtheot herpartner
snotbehel dli
able?
a)I
ft he wrongfulactoromi ssi
on was notdone wi thinthe scope oft he
par tner
ship busi
nessand f ori t
sbenef i
torwi ththe author
it
yoft he co-
par tner
s.
b)I
ft heactoromi ssionwasnotwr ongful
c)I
ft heactoromi ssion,al
thoughwr ongful
,didnotmaket hepart
nerconcerned
l
iabl ehimself
.
d)I
ft he wrongfulactoromi ssion wascommi t
ted af
terthe f
irm had been
dissolvedandsamewasnoti nconnecti
onwiththeprocessofwindingup.

Basedont heprincipleofmut ualagency,isthepartnershi

pliablefortort
s
commi tt
edbyapar tner?
Basedi nt hesai
dpr inciple,t
hepart
nershi
porever ymemberofapar tnershi
p
i
sliablefortort
scommi t
tedbyoneoft hemember sactinginthescopeoft he
fi
rm business,alt
hought heydonotparti
cipat
ein,rat
if
yorhaveknowl edgeof
such torts.Such liabili
tyisnotdependenton t he personalwr ong ofthe
i
ndividual memberoft hepartner
shi
pagainstwhichtheliabi
li
tyi
sasser t
ed.

Whati sthe testto determine whetherornott he othermember sofa

part
ner shi
pareliabl
easaj ointt
ort
-feasor
stoget
herwiththeguil
typartner
?
Thet estoftheliabi
l
it
yisbasedonadet ermi
nati
onoft hequesti
onwhet her
thewr ongwascommi tt
edi nbehalfofandwi t
hinthereasonablescopeof
businessofthepar t
nership.Ifi
twassocommi tt
ed,thepar t
ner
sar el
iableas
j
ointtort-f
easor.

Cant hepar t
ner ship best i
l
lheldl iabl
ef ort hewr ongf
ulactofoneofi t
s
partnereveni ft helatteractedout sidetheagencyorcommonbusi nessof
thepar tnership?
Ifthe i njur
yr esultsfrom a want on orwi l
l
fulactofone oft he parti
es
commi tt
edout si
det heagencyorcommonbusi ness,t
hent hepersondoing
theactandcausi ng theinjur
yi sal oner esponsibl
e,unlesstheactwhi ch
const i
tutedt het ortwasaut hori
zedbyt hemember soft hepartner
shipor
subsequent l
yr ati
fi
edbyt hem,theacti t
selfhavingbeendonei ntheirbehal
f
nd
andi nterest.(See40Am.Jur261- 262;Ironv.Sauve,27Wash( 2 )562)

Ar
t1823pr
ovi
desthatt
hepart
nershi
pisboundtomakegoodt
heloss:
1
)Wher eoneofthepart
neract
ingwithi
nthescopeofhi
sapparentaut
hor
it
y

Ci
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 recei
vesmoneyorpr opert
yofat hi
rdpersonandmisappli
esit;
2)Wher ethe par
tnershi
pint he course ofit
sbusinessreceivesmoneyor
propert
y ofa thir
d person and the money orpr opert
y so r ecei
ved i
s
misappli
edbyanypar t
nerwhil
eitisi
nthecustodyofthepartnershi
p.

Whydoest helaw provideforsol

idaryliabi
li
tyi
ncasesfal
li
ngunderAr t1
822
and1823?
The obli
gati
on ofpar t
nerstot hir
d per sons i
s sol
i
dary because t
he law
prot
ectsthelat
ter,whoi ngoodf ai
thr eli
edupont heaut
horit
yofapar tner,
whethersuchauthori
tyi
sr eal
orappar ent.(MunasquevCA139SCRA533)

I
V. DI
SSOLUTI
ON–Ar
t.1
830

Whatar ethet hreefi

nal
stagesofapart
nershi
p?
Thet hreefinal st
agesofapartner
shi
pare:
(1)dissolut
ion;
(2)wi ndi
ngup;and
(3)termination.

Thedissolut
ionofapar t
nershipisthechangei nt her el
ati
onofthepar tners
causedbyanypar t
nerceasi ngtobeassoci at
edi nt hecarryi
ngonoft he
ness.(
busi Art1828,NCC)Thewi ndingupr eferstot heprocessofli
quidat i
ng
part
nershi
paf f
airs.Ter minat
ion,i
npoi ntoftime,r eferstothatmomentwhen
part
nershi
p af f
airs ar e wound up.The par t
nership,although dissolved
conti
nue to existand i t
sl egalper sonali
tyi sr etai
ned atwhi ch time i t
completes the wi nding-up ofi ts affai
rs,including the parti
ti
oni
ng and
di
str
ibuti
onofthenetpar tnershi
passet stothepar tners.

Definedissolut
ionofpartner
ship.
Dissolut
ion ofapar tnershi
pist he change i
nt he r
elat
ion ofthe par
tner
s
caus ed byanypar t
nerceasing to be associat
ed inthe carr
ying on t
he
businessofthepar t
nership(Ar
t.1828)

Dissoluti
on ist he change i
nt he r
elat
ion oft he part
ner
scaused byany
partnersceasi ngt obeassociatedinthecar r
yingonoft ness.(
hebusi Ar
t
1828)I ti
st hatpointi
ntimewhent hepartnersceaset ocar
ryonthebusi
ness
together.Itrepresent
sthedemiseofapar tnership.(
68CJS842)

Whatiswindi
ngup?
Windi
ngupi sthepr
oces
sofset
tl
ingt
hebusi
nessorpar
tner
shi
paf
fai
rsaf
ter
di
ssol
uti
on.

Whatist
ermi
nat
ion?
Ter
minat
ioni
sthatpoi
nti
nti
mewhenal
lpar
tner
shi
paf
fai
rsar
ecompl
etel
y

Ci
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 woundupandf
inal
l
yset
tl
ed.I
tsi
gni
fi
est
heendoft
hepar
tner
shi
pli
fe.

Whatistheprincipalsigni
fi
canceofdissol
uti
on?
Theprinci
palsignif
icanceofdissol
uti
onisthat,t
hereaft
er,nonewpar tner
shi
p
busi
ness shoul d be under t
aken,butaf f
airs shoul
d be l i
quidat
ed and
di
str
ibuti
onmadet ot hoseenti
tl
edtothepar t
ners’ .(Test
ateEstat
eof
Motav.Serra,47Phi l464)

I
st he par tnership ter
minated upon di ssol
uti
on? Or, Does di ssol
uti
on
ter
mi nat
et hepar tnershi
p?
The dissolution ofa par t
nershi
p mustnotbe under stood to mean i t
s
ext
inguishment .Thepartnershipcont
inuesunti
lthewindi
ngupi scompl eted.
Thusdi ssolution ref
erstot he change in par
tnershi
prel
ation and nott he
actualcessat i
onoft hepartnershi
pbusiness.

No.On dissol
uti
on,the par
tnershi
pisnoteter
minat
ed. The part
nershi
p
conti
nuest
oexistforthepurposeofwindi
ngupofpartner
shi
paffai
rs.(Ar
t.
1829)

Whatarethecausesofdi
ssol
uti
onofapar
tner
shi
p?
Di
ssol
uti
oniscaused:

1
)Wi t
houtviolat
ionoftheagreementbet weenthepar t
ners
:
(
a)Byt heterminati
onoft hedefini
tet erm orpart
icul
arundertaki
ngspecif i
edin
theagreement ;
(
b)Byt heexpr esswillofanypar tner ,whomustacti ngoodf ai
th,whenno
defi
niteterm orpart
icul
arundertakingisspeci
fi
ed;
(
c)Byt heexpresswillofallt
hepar tnerwhohavenotassi gnedt hei
rint
erestsor
suffer
edt hem tobechar gedf ort hei
rseparatedebtseitherbeforeoraf t
er
theterminati
onofanyspeci f
iedterm orparti
cularundert
aking;
(
d)Byt heexpulsionofanypar tnerf r
om thebusinessbonaf i
deinaccor dance
withsuchapowerconf err
edbyt heagreementbet weenthepar t
ners.

2)I
n cont ravent i
on of t he agr eement bet ween t he par tners wher e t he
cir
cumst ancesdonotper mitdi ssoluti
onunderanyot herprovisi
onoft his
art
icle,byt heexpr esswi l
lofanypar tneratanyt i
me.
3)Byanyeventwhi chmakesi tunlawf ulforthebusi nessoft hepartnershi
ptobe
carri
edonorf orthemember stocar ryitoninpar t
ner ship.
4)Whenaspeci f
ict hi
ng,whi chapar tnerhadpr omi sedt ocont ri
butetot he
partnership,per i
shesbef oret hedel i
very,inanycasebyt helossoft hething,
whent hepar tnerwhocont r
ibutedi thavingr eservedt heowner shipthereof,
hasonl yt r
ansf er
redt othepar t
nershiptheuseorenj oymentoft hesame;but
thepar tnershipshal lnotbedi ssolvedbyt helossoft het hi
ngwheni toccur s
aft
ert hepar tnershiphasacqui r
edt heowner shi
pt her eof:

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 5)Bythedeathofanypartner
;
6)Bytheinsol
vencyofanypartnerorofthepar
tner
shi
p;
7)Bycivi
li
nter
dict
ionofanypartner
;
8)Bythedecreeofcourtunderthefol
lowingar
ti
cl
e(Ar
t.1
830)

Dot her i
ghtsandpower softhepar tnersandtheexistenceofthepart
ner
ship
ter
mi nateupondi ssol
uti
on?
Thet erm“ dissoluti
on”isthusdescr ipti
veoft hatchangei nthepart
ner
ship
rel
ationwhi chul timat
elyculminatesi ni t
ster
mi nat
ion.Dissol
uti
onisnotin
i
tselfat erminationoft hepartner ship oroft heri
ghtsand power softhe
partners,formanyoft heseper sistdur i
ng t
hewi nding up pr
ocesswhich
fol
lowsdi ssolut
ion.(40Am Jur.291. )

Whati stheef f
ectofdi ssolut
ionofthepar tnershi
p?
The dissoluti
on oft he partnershi
p affects onlyfut
ure obli
gati
ons oft he
business,and as t o pastt ransacti
ons the par t
ner
shi
p cont i
nues unt i
lit
sat
isfi
esal lit
spr e- exist
ingobli
gations.Dissoluti
onofpartnershi
pdoesnot
abrogatei t
scont racts,whichcont i
nueunt ilperf
ormedorot herwi
sebecome
operati
ve.Di ssoluti
onhasnoef f
ectondebt sduef rom thepar tnershi
pt o
thi
rdpar t
iesexceptt hatpart
nersmaynotactf oreachotheranyf urthert
han
mayj oi
ntdebt ors.

LI
MITEDPARTNERSHI
P

A.DEFI
NITI
ON

1
.DefineaLimitedpart
nership?
Ali
mitedpartner
shi
pi sonef ormedbyatl
eastonegeneralpar
tnerandone
l
imi
tedpar t
ner,butthelimitedpart
nerassuchshal
lnotbeboundbyt he
obl
i
gationsofthepar
tnershipbeyondhi
scapi
tal
cont
ri
buti
on.(Ar
t.1843)

2.Whatar
ethechar
act
eri
sti
cfeat
uresofal
i
mit
edpar
tner
shi
p?

Theyar ethef oll

owi ng:
1.A l i
mited par t
ner shi
p i s formed by compl i
ance wi t
h t he st at
utory
requir
ement s;
2.Thereshoul dbeoneormor egener alpartnerswhomanaget hebusi nessand
areli
ableaf t
erpar tner
shipassetshavebeenexhaust edtotheext entoftheir
personal propertyforobl i
gati
onsoft hepar tner
shi
p;
3.Thereshoul dbeoneormor el
imitedpar tnerswhocont ri
butet oit
scapi tal
,
shareinthepr of
its,butdonott akepar tinmanagementandar enotl i
ablefor
theobligationsoft hepar t
nershi
ptot heext entoft
heirpersonalproperty.
4.The par t
ner shi
p debt sar e sat
isf
ied fi
rstf orm t
he partnershi
p asset sand
subsidi
arilyfrom theper sonalpr
oper tyofthegener alpar
tners.

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 B.HOW LI
MITEDPARTNERSHIPISFORMED/AMENDED
Whatar
etherequi
rement
stof
orm al
i
mit
edpart
ner
shi
p?

Theyar
easf
oll
ows:

1.Thepar tner smustsi gnandsweart oacer ti

fi
cat ewhi chshal lstate:
a. Thenameoft hepar tnership,addi ngtheret othewor d“Li
mi ted”;
b. Thechar acteroft hebusi ness ;
c. Thel ocationoft hepr incipal placeofbusi ness;
d.The name and pl ace ofr esi
dence ofeach member ;gener aland l imited
part
ner sbei ngr espect i
velydesi gnat ed;
e.t hetermf orwhi cht hepar tnershipi st oexist
f. Theamountofcashandadescr i
ptionofandt heagr eedval ueoft heot her
proper t
ycont ributedbyeachl imitedpar t
ner ;
g.Theaddi ti
onalcont ributions ,i
fany,t obemadebyeachl imit
edpar tnerand
theti
mesatwhi chorevent sont hehappeni ngofwhi cht heyshal lbemade;
h.Thet i
me,i fagr eedupon,whent hecont ri
butionofeachl i
mi t
edpar tnerist o
beret urned.
i
.t heshar eoft hepr ofitsort heot hercompensat ionbywayofi ncomewhi ch
eachoft helimi t
edpar t
nershal lrecei vebyr easonofhi scompensat ion;
j
.t heright,ifgiven,ofal imitedpar tnert osubst i
tuteanassi gneeascont ri
butor
i
nhispl ace,andt het ermsandcondi ti
onsoft hesubst i
tution.
k.Ther i
ght ,ifgi
ven,oft hepar t
nerst oadmi tadditionallimitedpar t
ner;
l
.t heri
ght ,ifgiven,ofoneormor eoft helimit
edpar tners,ast ocont r
ibut i
onsor
ascompensat ionbywayofi ncome,andt henat ureofsuchpr iori
ty;
m.Ther ight,ifgiven,oft her emai ni nggener alpar tnerorpar tnerst ocont i
nue
thebusi nessont hedeat h,civi
l i
nter dict
ion,insanityori nsolvencyofagener al
part
ner ;and
n.Ther i
ght ,ifgiven,ofal imitedpar tnertodemandandr eceivepr oper tyother
thancashi nret ur
nf orhi scont ri
but i
on.

2.Fi
li
ngf
orr ecor
dt hecer
tif
icat
eint
heof
fi
ceoft
heSecur
it
iesandExchange
Commissi
on.(Art
.1844)

Must the certi

fi
cat
e of li
mited par
tner
ship cont
ain al
lthe r
equisi
tes
enumeratedabove?
Notnecessari
l
y.Whatisrequir
edissubst
anti
alcompl
iancei
ngoodfai
thwith
theaboverequir
ements
.(Art
.1844)

Whatist heeff
ectofnon-compliancewitht
hest
atutor
yprovisi
onsgover
ning
theformati
onofal i
mit
edpartnershi
p?
Thepar t
nershi
pf or
medisnotal imit
edpart
ner
shipbutshall
beconsider
eda
generalpart
nershi
pwhereallthepartner
sar
epersonal
lyl
iabl
e.

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 Whenshall
thecert
if
icatebeamended?
Anychangeinthepar t
nershi
pwhichdoesnotbri
ngaboutadissol
uti
onwi
l
l
caus
etheamendmentoft hecert
if
icat
easint
hefol
lowi
ngcases:

1.Thenameoft hepar tner shipi schanged;

2.Achangei ntheamountorchar act erofthecont r
ibuti
onofanyl i
mit
edpar tner;
3.Aper sonsi ssubst it
ut edasal i
mi tedpar t
ner ;
4.Anaddi tional li
mi tedpar tneri sadmi t
ted;
5.Anewgener al par t
neri sadmi tt
ed;
6.Agener alpar tnerr etires,di es,becomesi nsolventorinsane,orissentenced
toaci vilinter dicti
onandt hebusi nessi scont i
nuedunderanagr eementt o
thatef fectst atedi nt hecer t
ifi
cat e,orwi t
ht heconsentofal lt
hepartners;
7.Thechar acteroft hebusi nessi schanged;
8.Ther eisaf alseorer roneousst atementi nthecer tif
icat
e;
9.Thet i
mest at edi nt hecer ti
ficatef orthedi ssolut
ionoft hepartner
shiporf or
ther eturnoft hecont ributionhavebeenchanged;
10.
At imei sf i
xedf orthedi ssolutionorf orther eturnofacont r
ibut
ion,wher e
origi
nal lynot i
mehasbeenspeci fiedint hecer ti
fi
cate.(Art
.1864)

Whataretherequi
si
tesf
ort
heamendmentoft
hecer
ti
fi
cat
e?
Theyare:

1.The amended cer tifi

cate mustcont ai
nt he provi
sions requi
red ofany
cert
if
icateoflimit
edpar tner
ship.
2.Theamendedcer t
if
icatemustsetfort
hclearl
ythechangeorchangesmade.
3.Theamendedcer ti
ficatemustbesi gnedandswor nt obyal lt
hepar tner
s
i
ncludingt hesubsti
tutedli
mitedpart
nerorthenewl imitedpart
nerorthenew
generalpar t
nerasthecasemaybe.
4.The amended cer t
ifi
cate mustbe fi
led wi
tht he Securit
iesand Exchange
commi ssion.(Ar
t.1865)

Incaseofcancel
l
ati
onoft
hecert
if
icat
ewhoshal
lsi
gnsuch?
Thewr i
ti
ngtocancelt
hecer
ti
fi
catemustbesi
gnedbyallt
hepar
tner
s Ar
.( t
.
1865).

Whoshal
lexecut
ethewri
ti
ngtoeit
heramendorcancel
thecer
ti
fi
cat
e?
I
tshal
lbethepart
nerdesi
gnat
edinthecer
ti
fi
cat Ar
e.( t
.1865)

Whatistheprocedur
etobet akenbyapar tnerwhodesi
resthecancellat
ion
oramendmentofacer t
if
icateintheeventt hepar
tnerdesignatedint he
par
tner
shiptoexecut
ethewr i
ti
ngref
usetodoso?
Thepersondesi
ri
ngthecancell
ati
onortheamendmentoft hecerti
fi
cat
emay
pet
it
ionthecourttoordersuchcancel l
ati
onoramendmentt hereof
. The

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 Cour tthenf i
ndi
ngthatthepeti
ti
onerhasther i
ghttodoso,shallorderthe
Secur i
ti
es and Exchange Commi ssi
on to record the cancel
l
ation or
amendmentoft hecerti
fi
cat
eandi nthelat
tercasewil
lordert
obef i
ledwith
the Secur i
ti
esand Exchange Commi s
sion acert
if
ied copyofthe decree
sett
ingf ortheamendment.(Ar
t.1865)

Whenshallthecert
if
icat
ebeconsi
deredamendedorcancel
led?
Thecert
if
icateisconsider
edamendedorcancell
eduponf i
li
ngf
orr
ecor
d
wit
htheSecurit
iesandExchangeCommissi
onthef
oll
owing:

1.Thewrit
ingeithert
oamendorcancelt
hecerti
fi
catesi
gnedbyall
thepar
tner
s.
2.A cert
if
ied copyoft he or
derofthe cour
tin case t
he amendmentwas
order
edbyt hecourt Ar
.( t
.1865)

C.RI
GHTSANDOBLI
GATI
ONSOFALI
MITEDPARTNER

Whatar
ether
ight
sofapurel
yli
mit
edpart
neri
nali
mi t
edpartnershi
p?
Ali
mit
edpart
nerhast
hesamer i
ght
sasageneralpar
tnerto:

1.Havet hepar tnershipbookskeptatt hepr i

ncipalplaceofbusi nessoft he
partnershi p;
2.Havet her i
ghtt oinspectandcopyanyoft hem atar easonabl ehourona
businessday;
3.Have on demand t rue and f ul
li nf
ormat i
on ofal lt hings af fecti
ng the
partnershi p;
4.have a f or malaccount i
ng ofpar t
nershi
p af f
airswheneverci r
cumst ances
renderi tjustandr easonable;
5.Havedi ssolutionandwi ndingupbydecr eeofcour t
;
6.Andasal i
mi tedpartner,heshal lhavet herighttor ecei vesshar ei nthe
profit
s orot hercompensat ion by way ofi ncome st ipulated f orint he
cert
ifi
cat e pr ovided,thataf tersuch paymenti smade whet herf rom the
propertyoft he par t
nership orthatofa gener alpar t
ner ,the par tnershi
p
assetsar ei nex cessofal lliabi
li
ti
esoft hepar t
nership,exceptl i
abili
ti
esto
l
imitedpar tnersonaccountoft heircontri
buti
onsandt ogener alpar t
ners;
7.Tother eturnofhi scontri
butionasst i
pulatedinthecer t
ifi
cat e;(Art.1851)

Whatarethesi
mil
arr
ight
sofal
i
mit
edpar
tnert
othatofagener
alpar
tner
?
Thesear
e:

1.Ri
ghttohavepar t
nershi
pbookskeptatprinci
pal
placeofbusiness
2.Rightt
oinspect/
copybooksatreasonablehour
3.Rightt
ohaveondemandt rueandful
linf
oofallt
hingsaf
fecti
ngpartner
shi
p
4.Rightt
ohavef ormalaccountofpartner
shipaff
airswhenevercir
cumstances
r
enderitj
ustandreasonable

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 5.Righttoaskfordi
ssol
uti
onandwi ndingupbydecreeofcour
t
6.Righttorecei
veshareofpr
ofi
ts/
othercompensati
onbywayofincome
7.Righttorecei
veretur
nofcontri
butionspr
ovi
dedthepartner
shi
passet
sar
ein
excessofall
it
sli
abil
i
ti
es

Whatareotherr
ight
savai
labl
etoali
mitedpar
tner
?Hehasal
sot
her
ightt
o
havedi
ssol
uti
onandwindi
ngupbydecreeoft
hecourt
.

Whenshallali
mitedpart
nerbeheldli
ableasagener alpartner
?
I
ftheli
mit
edpar t
ner,i
naddit
iontotheexist
enceofhisrightsandpowersasa
l
i
mi t
edpartner
,takesparti
nt hecontr
olofthebusiness,meani ngt
akespar
t
i
nmanagement ,heshallbel
iabl
easagener alpar
tner(Art.1848)

Whatar et her ightsandl i

abil
iti
esofaper sonwhoi sbothagener aland
l
imit
edpar tnerinthesamepar tnershi
p?
Hehast hesamer i
ghtsandpower sandsubj ecttothesamer est
rict
ionsofa
generalpartner,asthoughthepar t
nershipisnotal i
mitedpart
nership,hence,
heisliabl
ewi t
hhi sseparat
epr opert
yf ortheobl i
gati
onsoft hepar t
nership.
Hisonlyrightasal i
mitedpar t
neri sasr egardshiscontri
buti
on.Asr egards
hiscontri
butionhei senti
tl
edt ot hesamer i
ghtliketheotherlimi
tedpar t
ner s
tohavear eturnofhiscont r
ibutionasthoughhewaspur el
ylimi
tedpar tner.
(Art
.1853)

Whataret
heli
abi
l
it
iesofal
i
mit
edpar
tnert
othepar
tner
shi
p?
Al
imit
edpart
neri
s:

1.Li
ableforthedif
fer
encebetweenwhathehasactual
lycont
ri
butedandwhat
heissupposedtocontri
but
easstatedint
hecer
ti
fi
cat
e;
2.Li
ableforanyunpaidcontr
ibut
ionwhichheagr
eedinthecer
ti
fi
catet
omake
atafut
uretime;(Ar
t.1858)

AGENCY:

Bythecontr
actofagencyapersonbi
ndshimsel
ftorendersomeservi
ceortodo
somethi
nginr epr
esent
ati
onoronbehal
fofanot
her,wit
htheconsentoraut
hor
it
yof
thel
att
er.(
Art.1868)

Whatarethecharacteri
sti
csofthecont r
actofagency?
Theyare:
1. Consensual –becauset hecontr
actisperf
ectbymereconsent.
2. Pr i
ncipal–becausei tcanstandalone,i
tdoesnotneedanother
cont
ractf
oritt
o exi
st.
3. Nomi nat e–becaus eithasaspecifi
cnameundert heCi
vil
Code
4. Uni l
ateral(
iti
swit
houtcompensat ion)–becauseitcr
eat
esobligat
ions

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onlyon oneparty–theagent
.
5. Bi
l
ater
al(i
fiti
swithcompensati
on)–becauseitcreat
esar eci
procal
ri
ghtsand obl
igat
ions
.
6. Pr
eparat
ory–becausei ti
sameansforenter
ingintofur
thercontr
act
s.

Di
sti
nguishAgencyfr
om Part
ner
shi
p.
Anagentdoesnotactforhi
msel
fbutf
orhi
spri
nci
pal
,whil
eapar
tneract
sfor
hi
mselfandfortheot
herpart
ner
sandfort
hepart
ner
shi
p.

Dist
inguishAgencyf rom Loan
Anagentmaybegi venfundsbythepr i
nci
paltoadvancet
helat
ter’ ,whi
le
abor rowerisgivenmoneyf orpurposesofhisown,andhemustgeneral
l
yr et
urni
t,
whet herornothisownbusi nessi
ssuccessful
.Alothoweverdependsontheint
ent
ofthepar t
ies.

Dist
ingui
shAgencyf om Negot
r i
orum Gest
io.
I
nbot hthereisrepresentat
ion.ButinAgencytherepresentati
onisconferr
edwhi l
e
i
nNegot ioum GestiotheNegot i
orum Gest
oractsnotonlywi t
houttheauthori
tyofthe
ownerbutal sowithouthisknowledge.Theagentactsaccor di
ngtot heexpresswill
oftheprinci
pal,whil
et hegestoract
saccordi
ngtothepr esumedwi l
loft
heowner .
Agencyisacont ractwhileNegotior
um Gesti
oisaquasi-contract
.

Disti
nguishAgencyfrom LeaseofSer vi
ce.
Theagentr epresent
stheprinci
pal
,thelessorofser
vicedoesnotrepr
esenthis
empl oyer.Theagentexerci
sesdiscreti
onarypowers,t
heemployeeorlessorof
servi
ceexer ci
sesminist
eri
alpowers.

Di
sti
nguishAgencyt oSellf
rom Sal
e.
I
nagencyt osellownershi
ptothegoodsisnottr
ansfer
redtot
heagent,whi
lei
nsal
e
ownershipi
stransfer
redtothebuyer.Theagentaccount
sfort
hepri
cetothe
pr
inci
pal,whi
lethebuyerisdir
ectl
yresponsi
blef
orthepri
ce.

Howisagencycreat
ed?
Agencymaybe:
1. Expr
ess–theagenti sgivenactualauthor
it
ybytheprinci
paleit
her
or
all
yorin writ
ing.
2. I mpli
ed:
a. f rom theactsoftheprincipal
;or
b. f rom hissi
lenceorlackofaction;or
c. hi sfai
luretorepudiat
et heagencyknowingthatanotherper
son
i
sacti
ng onhisbehalfwit
houtauthor
it
y.(Ar
t.1869)

I
nwhatfor
m shal
lthecont
ractofagencybeenter
edi
nto?
Asagener
alrul
e,agencymaybeor al
,unl
essthel
awrequi
resaspeci
fi
cfor
m.(
Art
.

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1869)
I
nwhatform shallt
heagentaccepttheagency?
Accept
ancebyt heagentmaybe:
1. Express;or
2. I mpl i
edf r
om:
a. hi sactswhichcarr
youttheagency;or
b. hi ssil
enceorinact
ionaccor
dingt
ot heci
rcumst
ances
.(Ar
t.1
870)

Whatarethewaywher ebythepr incipalmayannouncet heappoi ntmentofanagent?

Theannouncementmaybeei ther:
1. Byspeci
al i
nformat i
on–t hatist
heprincipal especi
allyi
nformsanother
thathehasgivenapowerofat torneytoat hi
rdperson,thel at
tertherebybecomesa
dulyaut
horizedagentwithrespectt othepersonwhor eceivedthespeci al
i
nformati
on;or
2. Bypubl i
cadver ti
sement–i nwhichcaset heagenti sconsideredas
suchwithregardst
oanyper son.(Art.1873)

Inwhatfor
m shall
acont ractofagencybeent eredint
o?
sageneralr
uleagencycanbeor alorwri
tt
en,butwheretheagencyisfort
hes
aleof
apieceofl
andoranyi nteresttherei
n,t
heauthori
tyoftheagentshoul
dbeinwri
ti
ng
ot
herwiset
hesaleisvoid.(Art.1874)

Ast
oscopeofbusi
nesshowi sagencycl
assi
fi
ed?
Agencyi
sclassif
iedint
o:
1. Generalagency;and
2. Speci alagency.(Art
.1876)

Whati
sgener
alagency?
Theagencyi
sgeneral
wheni
tcompr
isesal
lt
hebusi
nessoft
hepr
inci
pal
.

Whenisagencyspeci
al?
Agencyisspeci
alwheni
tcover
sonl
yoneormor
especi
fi
ctr
ansact
ions
.(Ar
t.
1
876).

Ast
otheext
entofthepowerconf
err
edhowi sagencycl
assi
fi
ed?
Iti
scl
assi
fi
edint
o:
1. Agencycouchedi
ngeneralt
erms;and
2. Agencycouchedi nspecif
ict
erms.

Whatact smaytheagentperfor
mi fhisagencyiscouchedingeneralt
erms?
Anagencycouchedingener alt
ermscompr i
seonlyactsofadmi
nistr
ati
on,eveni
f
thepri
ncipal
shoul
dstat
ethathewi thholdsnopoweroft hatt
heagentmayexecute
suchactsashemayconsi derappropriat
e,oreventhoughtheagencyshould
author
izedageneral
andunl i
mit
edmanagement .(Art
.1877).

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Statet heactsf
orwhi chaspeci alpowerofat tor neyi sneeded.
Speci alpowersofat t
or neyar eneededi nt hef ol lowingcases:
1. Tomakes uchpayment sasar enotusual l
yconsi deredasact sof
admi nistr
ati
on;
2. Toef fectnovat ionswhi chputanendt oobl i
gat ionsal r
eadyi nexistence
atthe ti
met heagencywasconst i
tut ed;
3. Tocompr omi se,t osubmi tquest i
onst oar bitr
at ion,torenouncet he
ri
ghtt o appealf r
om aj udgment ,towai veobj ectionstot hevenue
ofanact i
onorto abandonapr escr i
ptional readyacqui red.
4. Towai veanyobl i
gat iongr at uitous l
y.
5. Toent eri ntoanycont r
actbywhi chowner shipofani mmovabl eis
tr
ansmi t
tedor acqui redei thergr atuitousl yorf oraval uabl econsi derat
ion;
6. Tomakegi f
ts,exceptcust omar yonesf orchar i
tyort hosemadet o
empl oyeesin thebusi nessmanagedbyt heagent ;
7. Tol oanorbor rowmoney,unl esst hel atteractbeur gentand
i
ndispensabl ef
or thepr eser vationoft het hingswhi char eunder
admi nistr
ati
on.
8. Tol easeanyr eal proper tyt oanot herper sonf ormor ethanoneyear .
9. Tobi ndt hepr i
ncipal tor endersomeser vicewi thoutcompensat i
on;
10. Tobi ndt hepr i
ncipal inacont r
actofpar tnershi p;
11. Toobl igatet hepr i
nci palasaguar ant ororsur et y;
12. Tocr eateorconveyr eal ri
ght soveri mmovabl epr oper t
y;
13. Toacceptor er epudi ateani nher i
tance;
14. Tor ati
fyorr ecogni zeobl i
gat ionscont ractedbef or
et heagency;
15. Anyot heractofst ri
ctdomi nion( Ar t.1878)

I
fanagenti
sgivenaspecialpowertosel
lthepropert
ybelongingt
ohispr
inci
palhas
heal
sothesamepowert omor t
gagethesame?
No.Aspecial
powertosellexcl
udesthepowert omortgage;andaspeci
alpowerto
mort
gagedoesnoti
ncludethepowert osell
.(Ar
t.1
879)

Doesaspeci alpowert
ocompr omisei
mplythepowert osubmi tt
oarbit
rati
on?
No.Aspeci alpowertocompr omisedoesnotauthori
zesubmi ssi
ontoar bi
tr
ation.
(Art
.1 880)Incompr omisei
tistheagentwhoagr eestosomeconcessi onsbuti n
arbi
trati
onitisathi
rdpersonwhoact sasarbit
rat
or.Whi l
eiti
st r
uethattheprincipal
mayhavet rusti
ntheagent’ ,hemayhavenott rustin
thi
rdper sonwhot heagentmayhavet rust
ed.

Whatar et
her equi
si
testobefoll
owedsot hatt
hepri
nci
palwill
beboundtot
hir
d
per
sonswithwhom t heagenthascontr
acted?
Theyare:
1. Theagentmustactwi t
hinthescopeofhi
sauthori
ty
2. Theagentmustacti nthenameoronbehal fofthepri
nci
pal
.

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Whatar etheeff
ectsiftheagentact sinhisname?
1. Thepri
ncipal hasnor i
ghtofactionagai nstt
heper sonswit
hwhom t he
agenthas contracted;
2. Thet hi
rdper sonsli
kewisehavenor ightofact i
onagainstt
hepri
ncipal
;
3. Theagenti stheonlyonedi r
ectl
yboundi nfavoroft het
hir
dpersons
wit
hwhom hehascont racted,asifthet r
ansacti
onwer ehisown,
exceptwhent hecont r
act i
nvolvesthingsbelongi
ngtothe
pri
ncipal.(
Art
.1893)
4. Thepr i
ncipal hasarighttodemandf rom theagentdamagesf orhis
fai
l
uret o complywi ththeagency.( Art.1884)

Whatar etheobl
igati
onsoft heagent ?
Theyaret
hef ol
lowing:
1. Tocarryouttheagency;
2. Toanswerf orthedamageswhi cht hroughhi snonper formancet he
pri
ncipalmay suffer;
3. Tof i
nishthebusi nessalr
eadybegunont hedeat hoft hepr inci pal,
shoulddelay entai
lanydanger .(Art.1884)
4. Toadvancet henecessar yfundsshoul dt herebeast i
pul ationt odoso;
(Art
. 1886)
5. Toacti naccor dancewi t
hthei nstruct i
onsoft heprincipal .( Art.1887)
6. Nott ocarryoutt heagencyi fitsexecut ionwoul dmani festl
yr esul tin
l
ossor damaget othepr i
ncipal (Ar t
.1888)
7. Toanswerf ordamagest othepr incipalshoul dhepr eferi ncaseof
confl
ict,hi
s owni nter
eststot hoseoft hepr i
ncipal(Ar t
.1 889)
8. Tor enderanaccountofhi stransact i
onsandt odel
ivert ot hepr i
nci pal
whatever hemayhaver eceivedbyvi r
tueoftheagency.( Ar t
.1 891)
9. Topayi nterestonf undshehasappl i
edt ohisownuse.( Art.1 896)
10. Toanswerf orhisfraudornegl igence.( Ar t
.1909)

I
st heprincipalboundbyt heact soft heagentwhi char ewi thi
nt hescopeofhis
authori
tybuti nviol
ati
onoft hei nstructi
onsoft he princi
pal?
Thepr i
nci pali
sbounds olongast heagent ’
authori
ty,becauseat hirdpersonsdeal i
ngwiththeagenti sonlyboundt oinvest
igat
e
theauthor it
yoftheagentbuti snotdut yboundt oi nvesti
gat etheinst
ructi
onsofthe
pri
ncipal..Theinstr
uctionsconcer nonl ytheagentandt hepr i
ncipal
,henceifthe
agentviolatessaidinstructi
onshewi l
lbeli
abletothepr incipalforanylossor
damager esult
ingtherefrom.( Ar t
.1 887)

I
ncaseanagenthasbeenempower edtoborrowmoney,canhehimsel
fbethe
l
ender?
Yes,hecanbet
helenderbutatt
hecurrentr
ateofi
nter
est.Ther
eisnopr
ejudi
cein
t
hiscaseupont
hepri
ncipalsi
ncethesamerateofi
nter
estist
obepaidwhoeveri
s

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t
hel
ender
,bet
heagentoranyot
herper
son(
Art
.1890)

I
ftheagenthasbeenauthor
izedt
olendmoneyatint
erest
,cantheagenthi
msel
fbe
t
heborrower?
No,unl
essther
eisconsentf
rom t
hepri
nci
palonthegroundthatwhi
l
etheagent
maybeagoodl enderhemaynotbeagoodborrower.(Ar
t.1890)

Whendoesanagentwhoact sassuchi ncurper

sonal l
i
abil
it
y?
Theagentwhoact
sassuchi ncur
spersonal l
i
abil
i
ty:
1. Whentheagentexpressl
ybindshimself
;and
2. Whent heagentexceedshisauthori
ty.(
Art.1
897)

Whoshallbeboundbyt hecont
ractent
eredintobyanagentwhoact
sint
hename
ofthepri
nci
palandwit
hinthescopeofhisauthor
it
y?
I
tisthepri
nci
pal.Theagenthasnoli
abil
i
ty.

I
ncaset heagentact sinthenameoft hepri
ncipal buti
nexcessofhisauthor
it
yand
thepri
ncipaldoesnotrati
fythecontract,canthet hir
dpartyholdtheagent
personall
yli
able?
Thethir
dpar t
ycanhol dtheagentper sonall
yli
able,butifthethir
dpart
yisawareof
theli
mitsofthepower softheagent,thecont r
actshal l
bevoi d.Asarulet
heagenti
s
notboundunl esstheagentundert
akest osecur ethepr i
ncipal’ .(
Art.
1898)

Ast othir
dpersonswheni sanactofanagentdeemedt obewi thi
nthescopeofhi s
authori
ty?
Sof arasthi
rdpersonsareconcerned,anactisdeemedtohavebeenper for
med
wit
hinthescopeoft heagent’ ,i
fsuchacti
swit
hinthepowerofat t
orney,
aswr i
tt
en,eveniftheagenthasinfactexceededthel
imi
tsofhisauthor
it
yaccording
toanunder st
andi
ngbet weentheprinci
palandtheagent
.(Ar
t.1900)

Whoisacommi ssi
onagent?
Acommi ssi
onagentisonewhoi saut
hori
zedtobuyorsel
lfort
hepri
nci
palpersonal
pr
opert
yandf orwhichpurposesai
dpersonal
proper
tyi
splacedinhi
spossession.

Whatistheobli
gati
onofthecommi ssionagentwhohandlesgoodsofthesame
ki
ndandmar kbelongi
ngtodifferentowners?
Thecommissi
onagentshalldisti
nguishthem bycounter
mar ksanddesi
gnat
ethe
merchandi
serespecti
vel
ybelongingt oeachpri
ncipal
.(Art
.1904)

Canthecommi ssi
onagentsel
loncredi
t?
Thecommissionagentcannotsel
loncr
editwi
thoutt
heexpr
essori
mpl
i
edconsent
oft
hepri
ncipal(Ar
t.1
905)

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Whati
sthel
iabil
i
tyofthecommi ssionagentwhosel l
soncredi
twit
houttheexpress
ori
mpl
iedconsentofthepri
ncipal?
1. Hei sli
abl
etotheprincipalf
orthecashpr i
ceoft
hegoods’
2. Butt hecommi ssi
onagentshal lbeenti
tl
edtothei
nter
estorbenefi
t,
whi
chmay r esultf
rom t
hecreditsale.(
Art
.1 905)

Whatistheobl i
gat
ionofthecommi ssi
onagentwhoi saut
hori
zedbythepri
nci
palt
o
sel
loncredi t
?
Thecommi ssi
onagentmustfur
nishtheprinci
palwit
hastatementoft
henamesof
thebuyers.Ifhefail
stodosothesaleshallbeconsi
deredtohavebeenoncash
basi
sinsofarasthepr i
nci
pal
isconcerned.(Art
.1906)

WhoisaGuar ant
eeCommi ssi
onagentora“ delcr
edere”agent
?
Aguarant
eecommi ssi
onisonewhor eceivesonasal e,i
naddit
iontot
heordinar
y
commissi
on,anothercall
edaguaranteecommi ssi
on,inwhichcaseheshal
lbearthe
ri
skofcol
l
ecti
onandshal lpaythepri
ncipaltheproceedsofthesaleonthesame
ter
msagreeduponwi t
hthepurchaser.(
Art.1907)

Enumer at
et heobli
gati
onsofthepr incipal
.
Theyar e:
1. Tocomplywithallt
heobl igati
onswhi chtheagentmayhavecont racted
within t
hescopeofhi saut hori
ty.(
Ar t
.1910)
2. Toadvancet otheagent ,shouldthel at
tersorequest
,thesums
necessaryfortheexecuti
onoft heagency.Shoul dtheagenthaveadvancedt hem,
hemustr eimbursetheagent,eveni fthebusinessorunder taki
ngwasnotsuccessf ul
,
providedift
heagenti sf
reefrom allfault
.Ther eimbursementshalli
ncludeinterest
ont hesumsadvanced,f r
om thedayonwhi chtheadvancewasmade.( Art
.1 912)
3. Toi ndemnifytheagentf oralldamageswhi chtheexecuti
onoft he
agencymayhavecausedt helatt
er,withoutfaultornegli
genceonhi spart
.(Art.
1913).

I
stheprinci
palboundbytheobli
gat
ionsi
ncur
redbytheagenti
nexcessofhis
aut
hor
ity?
Thepr
incipalshal
lnotbeboundunl
essherat
if
iesi
texpr
essl
yorimpl
iedl
y.(
Art.1
910)

Whati st
her emedyoft heagentIthecasewher ethepri
ncipaldoesnotrei
mburse
theagentforthefundsadvancedbyhi m andfort
hedamagest heagenthas
suff
eredintheexecut i
onoftheagency?
Theagentmayr etai
nIpledgethethingswhicharetheobjectoftheagencyunt
ilt
he
pri
ncipal
effectsthereimbursement.(Art
.1914)

Whenshal
lthepri
nci
palbeheldsol
idari
lyl
iabl
ewi t
htheagent
?
Evenwhentheagenthasexceededhisauthori
ty,t
hepri
nci
pali
ssol
idai
rl
yli
abl
ewith
t
heagenti
fthefor
merallowedthelat
tertoactasthoughhehadful
lpowers.(
Art
.

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1
911
).

Underwhatcircumstancesshal
ltwoormor epri
nci
pal
sbeheldsoli
dar
il
yli
abl
etot
he
agent?
Underthefol
lowingcir
cumst ances:
1. Therearetwoormor eprinci
pals
;
2. Thet woormor epri
ncipalshaveappoi
nttheagentf
oracommon
tr
ansacti
on. (Ar
t.1
91 5)

Underwhatcasesshal
lt
hepr
inci
pal
benotl
i
abl
efort
heexpensesi
ncur
redbyt
he
agent
?
Underthef
oll
owing:

1
. I
ftheagentact
edincont
ravent
ionoft
heprinci
pal
’ ,unl
ess
the l
att
ershoul
dwisht
oavailhi
mselfoft
hebenefi
tsder
ivedf
rom t
he
contract
;
2. Whatt
heexpenseswer eduet ot
hefaultoftheagent.
3. Whentheagentincurredthem wit
hknowl edgethatanunf
avorabl
e
resul
twould ensue,i
fthepr i
ncipalwasnotawar ether
eof .
4. Whenitwassti
pulatedthattheexpenseswouldbebor nebytheagent,
orthat thelaterwouldbeal l
owedonl yacertai
nsum.(Art
.1918)

Howi sagencyext inguished?

Agencyi sext
inguished:
1 . Byitsr evocat i
on;
2. Byt hewi thdrawal oftheagent;
3. Byt hedeat h,civili
nterdi
cti
on,i
nsanityorinsol
vencyofthepr
incipalor
ofthe agent;
4. Byt hedi ssolut
ionoft hefi
rm orcorporat
ionwhichentrust
edor
acceptedthe agency;
5. Byt heaccompl ishmentoft heobjectorpurposeoftheagency;
6. Byt heexpi rati
onoft heperiodforwhichtheagencywasconst i
tuted.
(Ar
t.1919)

I
sagencygeneral
lyrevocabl
e?
Yes.Thepri
nci
palmayr evoketheagencyatwi
l
l,andcompel
theagentt
oret
urnt
he
documentevi
dencingtheagency.(
Art.1
920)

Whenshallther evocationoftheagencynotprej
udicethirdper
sons?
1. I
ftheagencyhasbeenent rust
edforthepur poseofcont
ract
ingwi
th
speci
fi
edper sons,itsrevocat
ionshal
lnotprej
udi
cet helatt
eri
ftheywerenotgi
ven
noti
cether
eof .(Art.1921)

2. I
ftheagenthadgener
alpower
s,r
evocat
ionoft
heagencydoesnot

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prejudicethi
rdper
sonswhoactedingoodfai
thandwi
thoutknowl
edgeofthe
revocat i
on,t
houghnoti
ceoft
herevocati
oni
nanewspaperofgeneral
cir
culat
ioni
sa
suffi
cientwarni
ngtothi
rdper
sons.(
Art.1
922)

Giveinst
ancesofimpli
edrevocat
ionoft
heagency.
1. Theappoi
ntmentofanewagentforthesamebusi
nessort
ransact
ion
r
evokest heprevi
ousagencyfrom t
hedayonwhichnoti
cet
hereofwasgi
ventot he
f
or meragent.(Ar
t.1
923)

2. Theagencyisrevokedi
fthepri
ncipal
di r
ectl
ymanagesthebusi
ness
ent
rust
edt
otheagent
,deal
i
ngdi r
ect
lywit
hthir
dper sons.(Ar
t.1
924)

Whenisagencyirr
evocable?
1. I
fabi
l
ater
alcontractdependsupontheagency;
2. Wher etheagencyi sameansoff ul
fi
l
li
nganobligati
onalready
cont
racted;
3. Wher eapar t
nerisappoint
edmanagerofapar tnershi
pinthecont
ract
ofpart
nershi
pandhisremoval f
rom managementisunj
usti
fi
able.(Art
.1927)

Whatismeantbyanagencycoupl edwithanint
erest?
Anagencyiscoupledwit
hani nter
estif
:
1. theagencyiscreat
ednotonl yf
ortheinterestoft
heprinci
palbutal
so
fort
heint
erestofathi
rdperson;or
2. t heagencyiscreat
edf ort
hemut uali
nterestofbotht
heprinci
paland
t
heagent.

Anagencycoupl
edwi
thani
nter
estcannotber
evokedbyt
hesol
ewi
l
loft
he
pr
inci
pal
.

Cantheagentwi t
hdrawf r
om t
heagencyatanyt i
me?
Li
kethepri
nci palwhocangener al
lyrevoketheagencyatwi l
l
,theagentl
ikewise
maywithdrawf rom theagencyatanyt i
me,bygivingduenoticetothepri
nci
pal.
However,i
ft heprincipalshoul
dsufferanydamagebyr easonofthewit
hdrawal,the
agentmustindemni fyhi m,unl
essthewi t
hdr
awal oftheagentisbaseduponthe
i
mpossibi
li
tyofcont inuingtheperf
ormanceoft heagencywi t
houtgravedetr
imentto
hi
mself
.(Art.1928)

Whatistheobli
gati
onoftheagentaf terhi
swithdr
awalfr
om theagency?
Theagent,evenifheshoul
dwi thdrawfrom t
heagencyforavali
dreason,must
cont
inuetoactunti
lthepri
ncipalhashadtheoppor t
uni
tytot
akethenecessar
ysteps
tomeetthesit
uati
on.(ar
t.1929)

Whendoesdeathofthepri
nci
palnotr
evoketheagency?
Theagencyshal
lremai
ninful
lfor
ceandeff
ectevenaft
erthedeat
hoft
hepr
inci
pal
if:

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 1. t
heagencywasconst
itut
edinthecommoni nt
erestoft
hepri
nci
pal
and
theagent
;or
2. t heagencywasconst
itut
edintheint
erestofathir
dpersonwhohas
accept
edthesti
pul
ati
oni
nhi
sfavor.(Art
.1930)

Howdoesdeat hofthepri
ncipal af
fectt
heval
idi
tyoft heactsoft
heagentwhowas
notawar eofthedeathofthepr i
ncipal
?
Anythingdonebyt heagent,withoutknowl
edgeoft hedeathoftheprinci
palorof
anyot hercausewhichext
inguishestheagency,i
sval i
dandshallbefull
yeff
ecti
ve
wit
hr especttothi
rdper
sonswhomayhavecont ractedwithhimingoodf ai
th.(
Art.
1931)

Doesdeathoftheagentext
ingui
shesagency?
Yes,buthi
shei
rsmustnotif
ythepri
nci
palther
eof,andinthemeant
imeadoptsuch
measureasthecir
cumstancesmaydemandi ntheint
erestoft
hepr
inci
pal
.(Ar
t.
1932)

vi
i
.sal
es

 CONTRACTOFSALEFROM CONTRACTTOSELL:

1.Inacontractofsale,tit
lepassest othevendeeupont hedeli
veryofthe
thi
ng sold,whi l
ei n Cont ractt o sell
,by agr eement,owner shi
pi s
reser
vedint hevendorandi snottopassunt i
lful
lpaymentoftheprice;
2.Incontr
actofsale,nonpaymenti sanegat i
veresolut
orycondit
ion;whil
e
i
ncont r
acttosell
,ful
l paymenti saposi ti
vesuspensivecondit
ion;
3.Incontr
actofsal e,thevendorhasl ostandcannotr ecoverowner shi
p
unti
landunl esst
hecont ractisresolvedorr esci
nded;whil
eincont ract
tosell
,tit
ler emainsint hevendor ,andwhenheseekst oej ectthe
vendee because of noncompl iance by such vendee wi th the
suspensi
vecondi ti
onst ipulat
ed,hei senforcingthecontractandnot
resol
vi
ngi t
.

 EMPTI
OSPERATAEANDEMPTI
OSPEI
:

.empt
1 i
oressper
ataeist
hesal
eofathinghavingapot ent
ialexi
stence;
eempt
whi
l i
ospeii
sthesal
eofahopeorexpectancy;

2.i
nERS,theuncert
aint
yiswi t
hr egar
dtothequant
it
yandqual
it
ybutnot
wit
hregar
dtotheexistenceoft hethi
ng;i
nES,theuncer
tai
ntyi
swith
r
egardtot
heexist
enceoft hething;

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 3.I
nERS,t
hecontractdeal
swit
haf ut
uret
hing;i
nES,thecont
ractdeal
s
wit
hapr
esentt
hingwhichist
hehopeorexpect
ancy;

4.I
nERS,t hesaleissubjectt
ot hecondit
ionthatthethingshouldexist
,so
thati
fitdoesnot,thereisnocontractforlackofanessent ialrequi
si
te;
i
nES,t hesalepr oduceseffectsevent houghthet hingi
tselfdoesnot
comei nt
oexist
ence,sincethesubjectmat t
eristhehopeitself.

 BARTER–“ i
ftheconsiderat
ionoft hecontractconsi
stspartl
yi nmoney,and
part
lyinanothert
hing,thetr
ansactionshallbecharacteri
zedbyt hemanifest
i
ntenti
onofthepar t
ies.Issuchi nt
enti
ondoesnotcl earl
yappear ,i
tshal
lbe
consi
deredabar t
eriftheval
ueoft hethinggivenaspar toftheconsider
ati
on
exceedstheamountoft hemoneyori t
sequi val
ent;otherwise,i
tisasale.”
Suchthat,i
fthecashaddedt ot het
hingtradedismor ethanthevalueofsuch
thi
ng,thecontr
acti
sasal e;i
fless,t
hecont r
actisabarter
.

 Apr omisetobuyandsel
l adet
erminatet hi
ngforapricecer
tai
nisr
eciprocall
y
demandable.Anaccept edunil
ateralpromisetobuyort osel
ladetermi nat
e
thi
ngf orapr i
cecert
ainisbindi
ngupont hepr omi
ssoryofthepromi seis
supportedbyaconsi
derati
ondist
inctfr
om theprice.

 Whobet weent
hevendorandthevendeemustbeart
heriskoflossaf
tert
he
contr
actofsale hasbeen per
fect
ed,butbef
orethe t
hing sol
d hasbeen
del
ivered?

Ift
heobjectofacontr
acti
slostbefor
edeli
ver
y,iti
st hevendorwhoi sst
illthe
ownerandmustbeart helossandnotthevendee.Thi sisinconfor
mitywi th
thepri
nci
pleofresperi
tdomini
.Theowneroft het hingmustbeartheriskof
l
oss.
 EARNESTMONEY’“ Wheneverearnestmoneyisgiveninacont r
actofsal e,i
t
shal
lbeconsideredaspartofthepri
ceandaspr oofoft heperf
ecti
onoft he
contr
act.
” Earnestmoneyi spartofthepurchasepr i
ceadvanced byt he
vendeetothevendorasatokenoftheperf
ect
ionoft hecontr
act.

 SALEOFPERSONALPROPERTYBYI
NSTALLMENT,r
emedi
esoft
hevendor

1.exactful
fi
ll
mentoftheobl igat
ionshoul
dt hevendeef ai
lt
opay;
2.cancelthesale,shoul dt
hevendee’
i
nstal
lments;
3.Forecl
ose the chattelmor t
gage on the t
hing sol
d,ifone hasbeen
consti
tut
ed,shouldt he vendee’
i
nstal
lments.I
nt helastcase,heshallhavenof urt
heracti
onagainstt
he
purchasertorecoveranyunpai dbalanceoft heprice.Anyagreement
tothecontrar
yshallbevoi d.(
Art.1
474)
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 Asti
pul
ati
onthatt
heinst
all
mentsorrentspai
dshallnotber
etur
nedtot
he
vendee orlessee shal
lbe vali
di nsofaras the same may notbe
unconsci
onabl
eunderthecir
cumstances(Art
.1486)

 Acontractexecut
edbyanagentwi
thoutaut
hor
it
ytosel
li
snotvoi
dbutsi
mpl
y
unenf
orceable.

 Theacceptanceandencashmentbyt heownerofacheckr epr

esenti
ngthe
purchasepri
ceofhispr
opert
ysoldthr
oughhisagentconst
it
uter
ati
fi
cati
onof
thecontr
actofsal
eandproducest
heef f
ect
sofanexpresspowerofagency.

 I
nacontractofsal
e,t
hevendorl
osesownershi
poverthepropert
yandcannot
r
ecoveri
tunti
landunl
essthecont
racti
sresol
vedorr
escinded.

 Anopt i
ontobuyorapr omisetosel
li
sdi
ff
erentanddi
sti
nctf
rom t
herightto
repur
chasethatmustbereser
vedbymeansofsti
pul
ati
onstot
hateff
ectinthe
contr
actofsal
e.

 A contractofsaleisconsensuali
nnatureandisperf
ecteduponthemere
meetingoft hemi nds.Whent her
eismer el
yanoff
erbyonepar t
ywit
hout
acceptancebyt heother
,ther
eisnocontr
act.
 Possessionalongwithownershipi
str
ansferr
edt
othevendeebyvi
rt
ueofthe
notar
izeddeedofconveyance.

 I
fthedeedofsaleisvoid,thent
heact
ionforthedeclar
ati
onoft
hecont
ract
’
nul
li
tyi
simprescr
ipt
ibl
e.Anact i
onf
orreconveyanceofthepr
oper
tyonavoi
d
cont
ractdoesnotprescr
ibe.

 Underapactoder et
rosale,ti
tl
etoandowner shipofpr
opertyar
eimmediat
ely
vest
edinthevendeear et r
o,subjectonlyt
ot heresol
utor
ycondit
iont
hatt
he
vendorr
epurchasesitwi
thinthesti
pulat
edperiod.

 Anequi t
ablemor t
gagehasbeendef ined“ asonewhi chalt
houghlacki
ngin
somef ormali
ty,orfor
m orwords,orot herrequisi
tesdemandedbyas t
atue,
never
thelessreveal
st hei
ntent
ionoft hepar ti
est ochargerealpr
opertyas
secur
it
yf oradebt,andcont
ainsnot
hingi mpossibleorcontr
aryt
olaw.”

 R.A.No.6552ot herwiseknownast he“Realt

yInst
all
mentBuyerPr otecti
on
Act”recognizesin condi ti
onalsalesofallkindsofr ealestat
e( i
ndustri
al,
commer cial
,resi
dential)ther i
ghtoft hesell
ertocancelthecont r
actupon
nonpaymentofani nstall
mentbyt hebuyer,whichcancell
ati
onmaybedone
outsi
de the cour
tpar ticul
arl
ywhen t he buyeragreesto such cancell
ati
on

Ci
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24
 providedt hatsuchcancel
lat
ionbyt hesel
lermustbei naccor dancewi t
hSec.
3(b)ofR. A.No.6552,whi chr equir
esanot ar
ialactofr escissi
onandt he
refundt ot hebuyerofthef ul
lpaymentoft hecashsur renderval ueoft he
payment sont hepropert
y..Ademandl ett
erisnotthesameast henoti
ceof
cancellat
ionordemandf orresci
ssionbyanot ari
alactrequir
edundersai dlaw.

 Betweent wotransact
ionsconcer ni
ngthesamepar celofland,theregi
stered
t
ransactionpr
evail
sovertheear l
ierunr
egist
eredri
ght. Knowl edgegainedby
t
hef i
rstbuyerofthesecondsal ecannotdefeatt
hef i
rstbuyer’ ,except
wheret hesecondbuyerr egi
stersingoodfaitht
hesecondsal eaheadoft he
fi
rst
.

 A contr
actofsal e mayeitherbe absol
ute orcondit
ional– one form of
condi
ti
onalsaleiswhati
snow popularl
ytermedasa“ Contractt
oSel l
”where
ownershi
p ort i
tl
eisret
ained unt
ilthe f
ulf
il
l
mentofa posi ti
ve suspensi
ve
condi
ti
onnor mall
ythepaymentoft hepurchasepri
ceint hemanneragr eed
upon.

EFFECTOFSALEONTHESELLER
I
. GENERALOBLI GATI ONS:
A. Topr eser
vet hethingwi t
hthepr operdil
igenceofagoodf at herofa
famil
y(Art
.1163)
.
a. Det eri
orati
on,lossorimpr ovement( TheoryofRisks)
1. Ifthet i
tl
ehaspassed,t heriskisupont hebuyer ,whet her
ther
e hasbeenact ualdeli
veryornot .
B. Todel i
verthethingsoldwi t
hi t
saccessionsandaccessor ies( Art
.1 537)
a. FORM ( MANNEROFDELI VERY)
1. Physical orReal (
Art.1497)
2. Const ructi
ve
i. RealProperty:bypubli
cinstrument.
aa. Pr ovidednoact ualimpedimentt ophysi cal
deli
very (e.g.whenat hirdpartyisinl
awf ul
possessi
on)orcont
rar
y st
ipul
ati
onexi sts.

bb. Except
:regi
ster
edpr opert
y(Act496).
Regi
str
ati
on i
stheoper at
iveactoftr
ansfer(
butt
he
cont
racti
sbi
ndi
ng betweent hepart
ies
).

i
i
. Per
sonal
Proper
ty
aa. Deli
ver
yofthekeys(Art
.1498,par
.2)
bb. Commonagr eement(Art
.1499)
cc. Bynegoti
abl
edocumentoft i
tl
e(Ar
ts.1
513,
1
514)
.

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25
 i
i
i
I.
ncorpor
eal
propert
y(Ar
t.1501):Byexecuti
onofa
publi
c inst
rument
,deli
veryoft
it
le,ort
he
exerci
sebyt
hevendee ofhisri
ght
swi t
hthe
vendor’ .(Quasi
-tr
adi
ti
on).

3. DeConsitut
o(const
it
ut um possessor
ium):
Byr
etenti
onoft het
hingbysel l
erunderanotherr
ight(
Art
.
1
500) subordi
natet
ot herightofthebuyer
.

C. Tr
ansf
erofOwnershipt otheBuyer
a. Gener al
lyowner shipistr
ansf er
redupondeliveryto(Art.1
477,
1496)and acceptancebyt hebuyer( Art
.1585)expressorimplied.
1. Wher ethebuyerr ef usestoacceptwithoutj
usti
fi
cation
(Art. 1588)t i
tl
epasseswhent hegoodsar eplacedatt he
disposal
of thebuyer .
2. Del i
veryt othecarrierisdeli
veryt
othebuyerunl esstit
leis
r
eser ved(Art.1523,par.1)
3. I nsal
es‘ F.A.S.”
4. I nsal
es“ C.I.
F.”or‘F.O.B.”

b. Whendel
iverydoesnott ransf ert it
le:
1. I
n“ del
iveryonappr oval ,t r
ialorsat i
sfaction”(Ar t
.1 502,par.
2-5), ti
tl
epasses–
i
. Upont hebuyer ’ ;
i
i. Upont hebuyer ’
the cont r
act;
i
ii
. Upont her etentionbyt hebuyerbeyondt het ime
fi
xed(or reasonabl et i
me)wi t
houtnot iceofr ejecti
on.
2. IncaseofExpr essreser vationoft it
leint hesel l
er,madeso
that ti
tl
edoesnotpass-
i
. Until
payment( Ar t.1478)
i
i. Until
fulfi
ll
mentoft hecondi ti
on( 1503,par .1)
notwit
hst andingdel iver y
3. Impl i
edr eservationoft itl
ear iseswhen-
i
. Goodsar edel i
ver abl et otheor deroft heshi pperor
agent (Art.1503,par .2)
aa. Butwher egoodsar edel i
ver abletot heor der
ofthe buyerorhi sagentandt hesel lerretainsthe
bil
lof l
adi ng(Ar t.1 503,par .3)t i
tlepassessubj ect
totheli
enof thesel lerf orsecur i
typur poses .
i
i. I
fabi l
lofl adi
ngi st r
ansmi ttedwi thadr aftattached
(1503, par .
4),inwhi chcaset it
lepassesupon
acceptance;i
fthe dr af ti
sdishonor ed,thebuyer
shouldret
urnthebil
lof l
ading

Ci
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 i
i
i. Buti
fthebil
lprovi
desthatthegoodsar edel i
verabl
e
to thebuyer,ortheor
deroft hebuyer ,ofi
tis
i
ndorsedi
n blank,t
hebil
ltransfer
stit
letothebuyer
forval
ueand wit
houtnoticethatthedraftwas
nothonor
ed.

4. Sal
etot
wodi
ff
erentper
sonsbyt
hesamesel
l
er

5. Whenthesel
l
erisnottheowner(Ar
t.1
505)
:Thebuyerhas
no bett
ert
it
le,excepti
ncasesof
:

i
. Est
oppel
oft
heownert
odenyt
hesel
l
er’ (
Art
.
1
438)
i
i
. Recordingl
aws;
i
i
i. Statut
orypowertoselloror derofthecour tt
othe
of
fi
cer (
tosel
l)
i
v. Salesinmerchat
’ ,fair
s,ormar kets
aa. Compar ethi
swi t
ht her ul
ethatpossessionof
movablesingoodf ai
thisequival
entto
t
it
le.Ar
t. 559
bb. Whent hesell
erhasavoi dabletit
le(Art
.
1506)
,the sal
eisgoodi fboughf orvalue
andwit
houtnot
ice beforetheseller’
avoi
ded.

DOCUMENTSOFTI TLETO GOODSDEFI NED (Art.1636,No. 1

):“
…anydocument
usedintheordi
narycour
seofbusinessinthesal
eort ransf
erofgoods ,aspr
oofof
the poss
essi
on orcontrolofthe goods,oraut hor
izing… t
he possessorofthe
documentt ot r
ansf
er or recei
ve,eit
her by indorsementor del i
very,goods
repr
esentedbysuchdocument.”

TI
MEANDPLACEOFDELI
VERY:

a.TI
ME-
i
.Asst i
pulated.
ii
.Ifthereisnostipulati
on,atar easonableti
meandhour( whi
chis
aquestionoffact)(Art.1521)
b.PLACE–
i
.Asst i
pulatedorest abl
ishedbyusage( Art
.1521)
ii
.Intheabsenceofst ipulat
ionorusage:
1.Att hepl
aceofbusi nessorresidenceofthesel
ler
2.Ifthethi
ng( specifi
c)wasel sewhere,andtheparti
esknew
it
,wher ethet hi
ngwasatt heti
meofsal e(appl
yingthe

Ci
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 rul
eofAr t.1251).
a.Thepossessor( ifat hi
rdper son)mustacknowl edge
hol di
ngt hegoodsf orthebuyer .
3.I
fitiss
tipulatedthatthesel l
erwi l
lsendt hegoodst ot
he
buyer(Art.1523);
a.Thesel l
ermus tarranget het ransport
ati
on,on
reasonabl eterms ,tothepl aceofbusi nessor
residenceoft hebuyer( par.2)
b.Thesel l
ermus tinsurethegoodsi fsti
pulat
edor
requi r
edbyusage;
c.Ot herwise,thesellermustgi venot icesothatt
he
buyermayi nsure.I fnonot icei sgi
ven,thegoods
travelattheseller’ (
par .3)

I
I. Del
iver
ytothecar
ri
eri
sdeemedasdel
iver
yt othebuyer(
butcar
ri
ermust
acknowl
edgeholdi
ngthegoodsf
ort
hebuyer
)(Art.1523)

A. Unl essthecontraryint
entappears,ort
it
lei
sreser
ved,expr
essl
yof
i
mpli
edly,orstoppageintr
ansitisexer
cised.
B. Subj ecttothesell
er’ .1523for
i
nsur
ancepur poses.

I
II
. Expensesofdel
i
ver
yar
ebor
nebyt
hesel
l
er(
Art
.1247)(
Art
.1521
,lastpar
.)

A. I nsal
es,“
C.I.
F”,t
hepri
ceincl
udesi
nsuranceandf
rei
ghtt
othepl
aceof
dest
inat
ionbutgoodstr
avelatther
iskoft
hebuyer

B. I nsales“F.
O.B.
”(fr
eeonboar d)or“
F.A.S”(
freeal
ongsideship)t
he
goodsaredel
iver
edatthespeci
fiedplaceatnoexpensetothebuyer,andti
tl
etot
he
goodsispr
esumedt opassatt
hatplace.

RI
GHTSOFTHEUNPAI
DSELLEROFGOODS

I
. Def
ini
ti
onof“
unpai
dsel
l
er”(
Art
.1525,par
.1)

A. Anunpai
dsel
leri
sone-
a. Towhom t
hewholepri
cehasnotbeenpai
dortender
ed;or
b. Whohasbeencondi ti
onal
l
ypaidbyanegoti
abl
einst
rument
whi
chhasbeendi
shonor
ed.(Ar
t.1
525)

B. Anunpai
dsell
ermaybeone-
a. Whosegoodsar einhi
spossessi
onandproper
tyi
nthegoods
hasnotpassedt
othebuyer;or
b. Whosegoodsar einhi
spossessi
onbutpr
opert
yinthegoods

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haspassedt
othebuyer;or
c. Whosegoodshasnotpassedt ot hebuyerbutpropert
yinthe
goodshasnotpassedtothebuyer
;or
d. Whosegoodsar enoti
nhi
spossessi
onandpr opert
yinthe
goodshaspassedtothebuyer
.

I
I. Right
sofanunpaidsell
er(Ar
t.1 526)
A. ALi enonthegoodsorr ightt oretai
nt hem (Art.1526,par .1)
a. Whent helienexists:
1. Cases(Art
.1 527)wheni tari
ses–
i
. Wher et hesaleiswi t
houtst i
pulat ionast ocredit;
i
i. Wher et hesaleisoncr edit,butt het erm credithas
expired.
i
ii
. Whent hebuyerbecomesi nsol vent
2. I tmaybeexer cisednotwi t
hstandingt hesel l
er’
possessi
onas agentorbai l
eef orthebuyer( Ar t.1527,par .
2)
3. Ef f
ectonther ighti
ftherehasbeenpar ti
aldeli
very:
i
. Thel i
enmaybeexer cisedont her emainder( Art
.
1528)
aa. Except ion:
aaa. Whenbysuchpar tialdel
ivery,the
i
ntenti
on wast owai vethel i
enorr ightofr et
ention(Art
.
1528)

b.Whenthel
ienislost
.
1. I
nstances(Ar
t.1529)
i
. Whent hesell
erdeli
ver
sthegoodstothecarri
eror
other bail
eefortr
ansmissiontot
hebuyerwit
hout
reser
vingthe ownershi
pinthegoods.
i
i
. Whent hebuyerorhisagentlawf
ull
yobtai
ns
possessi
onof t
hegoods ;
i
i
i. Bywai verthereof
.

2. Ef
fectofaj
udgementf
ort
hepr
iceofgoodsobt
ainedby
t
hesel
l
er
i
. Thel
i
eni
snotl
ost(
Art
.1529,par
.2)

B. Ri
ghtt
ost
opi
ntr
ansi
t(Ar
t.1
626No.
2)(
Stoppagei
ntr
ansi
t)
.

a. Requi
sit
esfortheexer
cise.
1. Thebuyerisorbecomesi nsol
vent(
Art.1 526,No.2and
Ar
t. 1530).
i
. Whent hebuyerissaidtobeinsolvent:SeeArt
.
1
636, No.2(doesnotrequirej
udici
alproceedings)
.

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29
 2. Thegoodsarei
nt r
ansi
t(Art.1530)
i
. Whengoodsar edeemedt obei ntransit–
aa. From thetimet heyar edeliveredt ot
he
car
ri
eror bai
leefortransmi ssiontot hebuyer
unt
ilt
hebuyert
akes deli
very
bb. Ift
hebuyerr ej
ect sthem andt hecarri
er
cont
inues i
npossessi on.
i
i. Whengoodsar enolongeri ntransit(SeeArt.
1531
,par.
4)

aa. I
fthebuyerorhi
sagentobtainsdel
iver
;
bb. I
fatdest
inat
iont
hecarri
erorbail
ee
acknowledges holdi
ngt hem f
orthe
buyer;
cc. I
fthecar
ri
erorbai
leewrongful
l
ywit
hhol
ds
possessi
onfrom t
hebuyer
.

b. Howst
oppageintransi
tisexerci
sed(Ar
t.1532)
:
1. Byobtai
ningactualpossessi
onofthegoods(
Art
.1532,
par
.1)
;
2. Bygi
vi
ngnot
iceoft
heclai
m( Art
.1 532,par.
1).
i
. Towhom mustnoti
cebegi ven–
aa. Tothepersoninactualpossessi
onoft
he
goods;
bb. Tohi
spr
inci
pal
.

i
i
. Obli
gati
onoft hecarrierorbail
eeinpossessionof
t
he goods.
aa. Tor e-deliverthegoodst othesel
ler
.
aaa. Ifthegoodsar ecoveredbynegot i
abl
e
documentoft it
le–
aa. Thedocumentmustbesur rendered(Art.
1532, par.2)
.
ii
i
. Obl i
gati
onoft hesell
er .
aa. Topayt heexpensesofdel iver
(ar
t.1532,par .2)
CONDITIONSANDWARRANTI ES
I
. Condit
ions(precedent)
A. Uponf ail
ureofthecondi
ti
ons(Art.1545):thepartywhoseobligati
onis
dependentuponitneednotper f
orm.

I
I. War
rant
ies(st
ipul
ati
onspromissor
y):Ki
nds–
A. Expr ess(Ar
t.1546)
:aff
irmati
onoffacti
nduci
ngt
hebuyert
opur
chase
i
nrel
i
ancether
eon.

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 B. I mpl i
es(Ar
ts.1547and1 562):t
hatthesel
lerhasari
ghtt
osell
;that
ther
ear enohiddendefectsorencumbr ances;t
hatthegoodsareofmerchantabl
e
quali
tyandfi
tforaknownpur pose.
a. Ast atementofthes el
ler
’ ,unl
essheisan
expertandwasr el
iedupon.(Art.1546)

I
II
. War r
ant yAgainstEvi
cti
on.
A. Requi sit
es–
a. Evi cti
on(dispossession)oft hebuyer( Ar t
.1 548)(thi
sis
applicabl
etoaj udgmentdebtorinjudicialsal
esunl essthejudgmentpr ovides
otherwise,Art.1552).
1. Thevendeei sdeprivedoft hewhol eoramat erialpar
tof
thethingpurchased.
2. Byaf i
naljudgment( Art.1 557)(t
hebuyerneednotappeal ,
Art.1549)
3. Basedonar ightanter i
ort othesale,including–
i. Adversepossessi oncompl etedbef orethesale(Ar
t.
1550)
ii
. Sal
ef ortaxdel i
nquencynotnot i
fi
edt othebuyer
(Art. 1551).

b. Ther ehasbeennoexpr
esswai
verbyt
hebuyerwi
th
knowl
edgeoft
her
isk(
Art
.1554)
.

c. Thesell
er(
vendor)i
sdulysummonedi nt
hesui
tagai
nst
t
hebuyer(
Art
.1558)andmadeaco-
defendant(
Art.1559)
.(SeeRul
e9,sec.1
,
Rul
esofCour
t)
.

B. Ef
fectofthewarrant
y(Art
.1555)
a. Thesel leringoodfai
thmust–
1. Returnt
hevalue(nott
hepri
ce)atthet
imeofevi
cti
on;
2. Ret urnt
heincomeorfrui
tst
hatthebuyerhadt
osurrender
;
pl
us
3. Costsofthesui
t;and
4. Expensesofthecontr
act
.

b. Thesel lerinbadfait
hissubjecttot
heliabil
i
ti
esofthesel
l
erin
goodfait
hunder–
1. Ther ul
esoftheprecedingparagraph(par.
a);
2. Pl uspaymentofdamages,i nter
estandornamental
expenses(usef
ulexpensesaret oberecoveredfrom t
hepar t
ycausi
ngtheevict
ion,
notfr
om thesell
er)
.

Ci
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31
 c. Lossofani
mpor
tantpar
t(Ar
t.1
556)(
par
ti
alEvi
cti
on)
.The
r
emedi
esar
e–
1
. I
ndemni
tyORr
esci
ssi
on,att
hebuyer
s’ .

C. Wai
verofwar
rant
yagai
nstevi
cti
onbyt
hebuyer(
vendee)
:

WarrantyagainstRedhibit
or y(Hidden,Physi
cal)Vices(ofmovables).
A. Requi si
tes–Thevi cesmustbe–
a. Notvi sibleorcoul
dnotbeknownt ot hebuyer,evenifanex per
t
(Ar
t.1561)
;
b. Theymustbeser i
ous(astor endert
het hi
ngunf i
t)(
Art.1561)
becauseofthei mpli
edwar rant
yofqualit
y(Art
.1 562)oroffit
nessforapur pose
knownt othesell
er;
Except: Salesunderapatentort r
adename( Ar
t.1563)wher eno
i
mpliedwar r
antyexists.

c. Ther ewer enotknownt othebuyer ;

d. Theyexi stedpr i
ortothesale;
e. Theymustbenot if
iedtothesel l
erwithinareasonabl
eti
mef r
om
di
scovery(Ar
t.1586)
f. Act
ionmustbewi t
hin6mont hs(Art
.1 571
)or40days( f
rom
del
iver
y)incaseofanimal s(Art.1
577)pr escr
ipt
ion).
g. Nost ipul
at i
onagainstthewar rantyhasbeenagr eed

B. Thevi
ceneednotbeknownt
othevendor(
Art
.1566)
.

C. Ef
fect
sofwar
rant
yagainstdef
ectsorvi
ces:
a. Thevendeemayel ectbetween(Art
.1567)–
1. Wit
hdrawalfr
om thecont
ract
;or
2. Reductionofthepri
ce(wit
hdamagesincaseofbadf
ait
h)

b. I
fthet
hingisl
ostduetohi
ddenvice(Art.1568)
1. IftheVendori
sawareofthevice:Hemust–
i. Ret
urnthepr
ice(nott
heval ue);and
ii
. Ref
undtheexpensesofthecont ract
;and
ii
i. Paydamages .
2. I ftheVendori
snotawareofthevi ce:Hemust–
i. Ret
urnthepr
icewithi
nterest;and
ii
. Ref
undexpenses.

c. I
fthet
hingisl
ostbyfort
uit
ouseventorbyt
hefaul
tofthebuyer–
1. Ifthevendori
singoodfait
h:Hemustret
urnthepri
celess
t
he valuewhenlost.
2. I fthevendori
sinbadfai
th:Hemust–

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 i
. Ret
urnt
hepri
cel
esst
heval
ue;and
i
i
. Paydamages
.

OBLIGATIONSOFTHEBUYER
I
. ToAcceptDeliver
y:
A. I fther
ewasnopr eviousexaminati
on,t hebuyermusthavea
reasonabl
eoppor t
unityt
oexami ne(Art
.1584,par .1&2) .
a. Thesel l
ermustal l
owthebuyert oexamine,ift
hebuyerso
demands.
b. Excepti ncaseofast i
pulat
iont hatthegoodsarenott obe
deli
veredbythecarri
erunlesspaidfor(C.
O.D.)(thebuyeri snotenti
tl
edtoan
examinati
onunlessthecontractorusagetothecont r
arypermit
sexami nati
on)(
Art
.
1584,par.3)
.

B. Unj usti
fi
edr
efusal
oft
hebuyert
oacceptdoesnotbart
ransf
eroft
it
le
(
andr
isk)(
Art
.1588).

2. Butt
hesel
l
ermaymakeconsi
gnat
ion(
Art
.1256)
.

C. Thebuyerjust
if
iabl
yrefusi
ngt
oacceptneednotr
etur
nthet
hing(
Art
.
1
587)butonl
yhast
onot
if
ythesell
er.

I
I. PaymentofPr
iceandInt
erest:
A. t i
meandPlace(Ar
t.1528):
a. Accor di
ngtostipul
ati
on(
unl
essthebuyerlosest
hebenef
itoft
he
peri
od).
b. Att heti
meandpl aceofdel
i
ver
y,ift
hereisnocontr
ary
st
ipul
ati
on,

B. Suspensi
onofpaymentbyt hebuyer(Art.1
590)afterdeli
very.
a. Gr ounds–
1. Actual
disturbanceofpossessionorowner shi
p;or
2. Reasonabl egr oundtofearadist
urbancecausedby–
i. Vindicatoryact
ion;
ii
. Foreclosureofmor t
gage( whi
chgr oundsare
excl
usi
ve)

b. Ther
eisnor
ightt
osuspendpaymenti
f:

1
. Thest
ipulat
ionpr
ovidesforpaymentdespi t
eri
skof
di
stur
bance; or
2. Thevendorcausethedisturbancetocease;or
3. TheVendorgivessecuri
tyfortheretur
nofthepri
ce;or
4. Thedist
urbanceisbymer eactoftrespass.

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33
 C. PaymentofI
nter
estont hePrice:)Art
.1598).Thisdut
yari
ses–
a. Evenbef oredefault,i
f–
1. Thest i
pul
ati
onsopr ovides;or
2. Thet hingproducesf r
uitswhichper
tai
ntot
hebuyer
under Art
icle1164.

b. Af
terdefaul
t(morat
oryi
nter
est
)from theti
meofthe
sel
l
er’ (art
.1169,l
astpar
.onreci
procalobli
gati
ons
).

D. Legal
Guar
anti
esf
orPaymentofthePrice:
a. Suspensi
onofdeli
very(r
etent
ion)byt
hesell
er–
1
. Incashsal
es,i
fthepaymentisnott
endered(
art
.
1
524)
;
2. I
nsalesoncredi
t,i
fthebuyerl
osest
hebenef i
tof
t
heter
m underAr
t.1
198(art.1536)ort
hebuyeri
sinsol
vent
(
Art
.1527)
.

c. Sell
er’ (
Art
.1526)
.
d. Stoppagei
ntr
ansi
t,i
fthebuyeri
sinsol
ventandthepr
icei
s
unpai
d(Ar
t.1
530)
.
1
. Whengoodsareintransi
t(Ar
t.1
531):t
hegoods
mustbe i
nthepossessionofthecarr
ierassuch,not
asbai
leef
ort
he buyer.

2. Howst
oppageismade( Ar
t.1532)
i
. Resumi
ngactualpossessi
on,
i
i. Givi
ngoppor
tunenoticetothecar
ri
eror
bai
l
ee.
3. Ef
fectofnot
iceont
hecar
ri
erorbai
l
eeAr
t.1
532,
par
.2)

i
. Thecarri
erorbail
eemustredel
i
ver
,unless
t
he negot
iabl
ereceipti
ssuedi
snotsur
rendered
t
othecar
ri
er orbail
ee.

e. Resal
eofgoods( Art.1533)( wit
houtbr i
ngi
nganaction)
.
1. Ther
emedyi sappl i
cableincaseof
i
. Peri
shabl egoods ;or
i
i. Expressr eservati
onintheeventofdefault
;or
i
ii
. Def aultforanunr easonableti
meont hepar t
oft
he buyer,Pr ovi
ded:thesel l
erhasal
ienormade
stoppagei ntransi
t.

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 2. Procedur
einResale(Seep.54).
i
. Resal
emaybepubl i
corpri
vate.
i
i. Noti
cetothebuyerisnotessent
ial
.
I
II
. Thesel leri
stoexerciser
easonablecareand
j
udgment
i
v. Thesel lercannotbuydir
ectl
yorindi
rectl
y.

3. Thebuyeratresal
eacquiresgoodti
tl
eagainstt
he
ori
ginal buyer,butnotagai
nstt
heholderindue
courseofa negoti
abledocumentoftit
le(
Art.
1535).

4. Eff
ectont
hesel
ler
:
i
. Hei
snotaccount
abl
efort
heprof
it
.
i
i. Hemaysuefordamagesduet
othebr
each.

f
. Resci
ssi
onofTr
ansferofTit
le
1. I
ncaseofgoods(corpor eal
movabl es)–
i
. Ext
raj
udici
alrescissi
on( Art
.1534)
,if–
aa. Expr essl
yr eserve,or

bb. Thebuyerisi
ndefaul
tforanun
reasonabl
eti
meinpayingthepr
ice.

Aaa. Notice(orsomeotherover
tact
)isrequi
red(ot
herwi
set
ransf
eroft
it
lei
snot
resci
nded)butneednotbecommunicatedtothebuyer;

Bbb. Fai
l
uretogi
venot
icei
srel
evantont
hequest
ionofdef
aul
tforan
unr
easonabl
eti
me;and

cc. Thes
ell
erhasal
i
enormadest
oppagei
ntr
ansi
t(Ar
t.1
534)

i
i
. Judi
cial
(Ar
t.1
191
),i
f–

aa. Thebuyerf
ail
stoacceptatt
hest
ipul
atedt
ime,wi
thoutj
ustr
easons.

bb. Thebuyerf
ail
stot
endert
hepr
iceuponr
ecei
pt,i
fnoper
iodwasst
ipul
ated
(Ar
t.1
593)
.

Nonot
iceordemandisrequi
red(
Art
.1534)unl
esst
hegoodshavenotbeen
del
i
ver
ed.(SeeArt
.1597)

2. I ncaseofr
eal
proper
ty(Ar
t.1592)
.Thebuyermaypayunt
ilgivenjudi
cial
or
not
ari
aldemandf
orr
esci
ssi
on,despit
easti
pul
ati
ontot
hecont
rar
y( pacto

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35
comi
sor
io)
.
Except
ions:

i
. Ther
uledoesnotappl
ywher
eti
tl
ewasr
eser
vedbyt
hesel
l
er

i
i. I
ncaseofdangeroflossofthethi
ngandpri
ce,af
terdel
iver
y(Art
.1591
),
t
hesel
l
ermaysuei
mmediatel
yforresci
ssioneveni
fhepri
ceisnotyetdue.

i
i
i. Nei
therdoest
her
uleappl
ytoamer
econt
ractt
osel
l

3. Act
ionf
ort
hePr
iceandDamages

I
. Act
ionforthepr
ice(
ofpersonal
proper
ty)(ar
t.1595)
.
A. Gr ounds–
a. Af t
erowner
shiphaspassed,andpr i
cei
snotpai
d,i
fno
per
iodf
or paymentwasgi ven.

b. Fai
l
uret
opay,wher
eitissti
pul
atedt
obepayable
i
rr
espect
iveof del
iveryort
ransf
eroft
it
le,al
though
t
it
lehasnotpassed.

1
. Def
enseoft
hebuyer
:
i
. Thatt
hesel
l
eratanyt
imebef
orej
udgment
,mani
fest
edei
ther–

aa. I
nabil
i
tytoper
for
m;or
bb. I
ntent
ionnott
operf
orm.

c. Ref
usal
oft
hebuyert
oacceptdel
i
ver
yoft
hegoods
,if
:

1. Thegoodswer eofferedandr efused;and

2. Thegoodscannotr eadil
yber esold;and
3. Thebuyerdidnotnotifyrepudiat
ionbef orethegoods
wer
e placedinafull
ydel i
ver
ablest ate;and
4. Thesel
lernoti
fi
est
hebuyert hathehol dsthegoodsas
bai
leef
or t
hebuyer .Thent hesellermayt r
eatt
he
goodsast
hebuyer
’ .

I
I. Act
ionfordamagesf
ornon-
acceptance(
Art
.1596)oft
hegoods
A. Gr ounds–
a. Thebuyer ’ (t
he
goods mayberesol
d)

b. Thebuyer
’
goods ar
epl
acedi
nadel
i
ver
abl
est
ate.

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36
 B. Measureofdamages
a. Gener al
ly–
1
. Thelossnat
ural
lyanddirect
lyresul
ti
ng(i
nthe
ordi
narycourse)f
rom thebreach.

b. Whent
her
eisanavai
l
abl
emar
ket–

1
. Thedi
ff
erencebet
weenthecont
ractpr
ice
andthe mar
ketpr
iceatt
heti
mewhen
accept
anceshoul
d bemade.

i
. I
fnot
imewasfixedf
oraccept
ance,
t
hen themar
ketpri
ceatthet
imeof
r
efusal
.

c. Whenrepudi
ati
oni
smadeornoti
fi
edbeforet
he
sel
l
er completepr
epar
ati
onsf
orful
fi
l
lment–

1. Thel
iabil
i
tyisforexpensesi
ncur
red,and
2. Theprofi
tthesell
erwouldhaveobtai
ned
under thecontract
.

I
II
. Act
ionf
orTot
alResci
ssi
on(
Art
.1597 )byt
hesel
l
er(
agai
nstt
he
buyer
)

A. Requi
sit
es:
a. Thegoodswer enotdeliver
ed.
b. Thebuyerei ther–
1. Repudiates
;or
2. Mani f
estsinabil
i
tytoper
form;or
3. Commi tsbreachofcont
ract;
c. Thesel lergi
vesnot i
ceofhisel
ecti
ontoresci
nd.

I
V. Buyer
’ ’ (
Art
.1598)
.

A. Thesel
l
erhasnoopt
iont
oret
aint
hegoodsbypayi
ng
damages.
B. Thej
udgmentmaybeabsol
uteorcondi
ti
onal
ast
hecour
t
deems f
it
.

V. Buyer
’ (
Art
.1599)
.(expr
essor
i
mpl
i
ed)
A. Buyer
’ :

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 a. Toacceptorkeept hegoodsandsetoffdamagesagainst
t
he pri
ce;
b. Toacceptt hegoodsandsuef ordamages;
c. Torefuseorr et
urnt
hegoodsandsuef ordamages;
d. Torescindthecontract
,ref
useorret
urnthegoodsand
r
ecover thepri
ce

B. Theopti
onsarealt
ernati
ve,butt
hebuyermayaskforresci
ssi
on
aft
er aski
ngforspecif
icperf
ormance,i
fthel
att
eri
simpossibl
e
(Ar
t.1
191
, par.
2)

C. Thebuyercannotrescind,i
f–
a. Heknewoft hebr eachofwar
rant
ywhenheaccept edthe
goods; or
b. Hef ail
stonot i
fythesel
l
eri
nduetimeoftheelect
iont
o
r
esci
nd; or
c. Hef ail
storeturnthegoodsi
nsubstant
ial
l
ythesame
condi
ti
on,

1
. Unl
esst
hedeter
iorat
ionwasduet
othebr
eachof
warrant
y.

D. Ef
fect
sofBuyer
’ (
Art.1
599,par.
4)
a. Thebuyerceasest obeli
ableforthepri
ceupontenderor
r
etur
n ofthegoods.
b. Hemayr ecoverthepr
icepaid–

1. Concur
rent
lywi
tht
her
etur
n,or
2. I
mmediatel
yaft
ert
het
ender.

c. I
fthes
ell
err
efusest
oacceptt
heret
urn;t
hebuyerhol
ds
t
he goodsasbail
ee.I
nwhichcase,t
hebuyer–

1
. Hasal
ienonthegoodstosecur
erepaymentofthe
pr
ice; and
2. Hasar
ightofst
oppageintr
ansi
tandresal
e,ast
he
sel
l
er hasunderArt
icl
e1526.

E. Lossi
nCaseofBr
eachofWar
rant
yofQual
i
ty(
Art
.1599,par
.5)

a. Thel
i
abili
tyconsi
stsint
hedif
fer
encei
nval
ueatthet
imeof
del
iver
yandt heval
ueift
hewar
rant
ywerenot
br
oken.
1
. Unl
essspeci
alci
rcumst
ancesshowgr
eat
er

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38
damage.

I
. CausesofExti
nguishment–
A. Gener alcauses( Art
.1231 )–
a. Paymentorper formance
b. Lossoft hethingdue
c. Condonat ionorr emissi
on
d. Conf usionormer ger
e. Compensat i
on
f. Novation
g. Annul ment
h. Resci ssi
on
i
. Fulf
il
lmentoft her esol
utor
ycondi
ti
on
j
. Prescri
ption

B. Speci
alCauses–
a. Redempt i
on.
1. Convent
ional
2. Legal

I
I. Ar
ti
cl
e1600appl
i
est
oper
fect
edaswel
lasconsummat
edsal
es.

I
. Concept.
A. Def ined:
Convent
ionalr
edemptionshall
takepl
acewhenthevendorreser
vestheri
ghtt
o
r
epurchasethethi
ngsold,wit
htheobl
igat
iont
ocomplywiththeprovi
si
onsofArt
icl
e
161
6andot hersti
pul
ati
onswhichmayhavebeenagreedupon

B. Nature: Conventionalredempti
onis–
a. Anacci dental
element( mustbesti
pulat
ed)
;
b. Anexpr esscondi t
ion;
c. Apot estat
iveresolutor
ycondi
ti
on
d. Ar
eal
rightandenfor
cedagai nstathir
dpersoncli
mingundert
hepur
chaser

I
I. Convent
ional
redempt
ioni
ncl
udest
ransact
ionspr
esumedt
obeequi
tabl
e
mort
gages.

A. Equi tabl
emortgagedefi
ned–onei nwhichal
thoughitl
ackssomef ormal
i
ty,
for
m ofwordsorot
herrequi
si
tes,pr
escr
ibedbyastatut
e,showtheintenti
onoft
he
part
iest
ochargearealpr
opert
yassecurit
yforadebtandcontainsnothi
ng
i
mpossibl
eorcontr
arytol
aw.

B. Thef
oll
owi
ngar
epr
esumedt
obeequi
tabl
emor
tgages–

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 a. Cont
ract
sofsal
ewi
thr
ightt
orepur
chasei
nthef
oll
owi
ngcases–(
Art
.
1
602)

(
1) When the pri
ce ofa sal
e wi
thr
ightt
orepur
chase i
s
unusual
l
yinadequat
e;

(
2) When t
he vendorr
emai
ns i
n possessi
on as l
ess
ee or
ot
her
wise;

(
3) When upon or after the expi
rat
ion of the ri
ght to
r
epur
chase anot
heri nst
rumentextendi
ng the peri
od of
r
edempti
onorgrant
inganewper i
odisexecuted;

(
4) When the purchaserr
etai
ns f
orhi
msel
fa par
toft
he
pur
chaseprice;

(
5) Whenthevendorbi
ndshi
msel
ftopayt
het
axesont
he
t
hings
old;

(
6) Inanyot hercasewher
eitmaybef air
lyi
nferr
edt hatt
he
realint
enti
onoft hepart
iesi
sthatthetransact
ionshall
securethepaymentofadebtortheper f
ormanceofany
otherobli
gati
on.

b. Cont
ract
sofabsol
utesal
eint
hecasesment
ionedi
nAr
t.1
602(
Art
.1604)

c. Whenat ransact
ionpurport
ingtobeacontr
actofsal
ewi
thr
ightt
o
repur
chasei
sofdoubtf
ulint
erpret
ati
on(Art
.1603)

1. Asti
pulat
ionthati ncaseoff ail
ureofthevendor -a- r
etroaslesseetopay
rental
s,t
heleaseshal lautomat i
call
yterminateandt her i
ghtofowner shipofthe
vendeeshallbecomeabsol ute–isvalid,notcontrar
yt olawnoroppr essive.Iti
sa
clausecommont o“pact oder etr
o”andhasr eceivedcour tsanct
ion
2. Al though“ pactum commi ssori
um”(ast ipulat
ionforautomat i
cvest i
ngofti
tl
e
overthesecurit
yi nthecr edit
orincaseoft hedebt or’ )i
svoid,suchacl ause
i
nacont racti
sconcl usivepr oofthati
tisamor tgageandnotasal ewi thpactode
retr
o

C. Ef
fectwhent
het
ransact
ioni
sdeemedanequi
tabl
emor
tgage.

a. Fr uit
s,moneyorotherbenefi
trecei
vedasrentsbythevendeeareconsi
der
ed
asi
nter
estwhichshal
lbesubj
ecttotheusuryl
aws .(
Art.1
602,lastpar
)
b. t heapparentvendormayaskfortheref
ormationofthei
nstrument
.

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I
II
. Per
iodofRepur
chaseorRedempt
ion.

A. Wher
enoperi
odisagr
eedupon–
a. Fouryearsf
rom t
hedat
eoft
hecont
ract(
Art
.1606,par
.1)

B. Whenaper i
odisagr
eedupon–( whi
chincl
udesasti
pulat
ionofr
edemption
“atanyti
me”
)
a. Wit
hintheper
iodst
ipul
ated,whi
chcannotexceed10years(Ar
t.1
606,
par.2)

C. Theper iodmaybeext endedt o30daysaf terf

inalj
udgmentwasr enderedin
acivi
lcaseclaimingthatthecont r
actwasat r
uesalewi t
hrightt
or epurchase(Art
.
1606,par .
3)
a. Pendencyofl i
ti
gationsuspendstheperiodofredempt i
on
b. Thet hir
tydayextensi
oni sapplicabl
eevenshouldthecasebef i
l
edaf t
erthe
expir
ationoftheredemptionper i
od,ifthepar
ti
esdisputeit
snatureasapact o-de-
ret
rosal ewit
htheall
egati
ont hatitdoesnotexpressthei
rtr
ueagr eement .

D. Theperiodduri
ngwhichvendorcannotredeem whenaddedtotheper i
odof
permi
tt
edr
edempti
on,mustnott
otalmorethan1 0year
s.(Rosal
esvs.Ryes,25Phi
l
495)

E. Redempt i
onper
iodwasnotext
endedbyt
heenemyoccupat
ion(
River
ovs.
Ri
ver
o,80Phi
l802)

F. Rul i
ngsont heper i
odwi thinwhi chtomakear epurchase–
a. Thel egal per iodof4year smaybeext endedbyst i
pulati
on,pr ovi
dedt hatthe
newper iodstipulat eddoesnotexceed1 0year s.
b. Ast i
pul ati
ont hatthevendorcannotr edeem t hepr opertyunt i
laft
er3year s
shouldbeconst ruedt oal lowr edempt ionwi t
hin4year s,afterthel apseoft he3
years,countedf rom suchl apse.
c. Anagr eementgr ant i
ngt hevendort her ighttorepurchasewhenhe“has
establ
ishedacer tainbusi ness ”isnotaper iod.I nsuchacaset hevendormay
redeem within4year s.
d. Wher et herei sanagr eedper i
od,theper iodinexcessof1 0yearsisvoid
e. Ast i
pul ati
ongr antingt hevendor sther ighttoredeem “ atanyt imethevendor s
havet hemoney”shoul dbeconst r
uedt oallowr edempt i
onwi thin1 0years
f. Thes t
ipulat i
onper i
odofr edempt i
oni ssuspendedbyt hef i
li
ngofanact i
on
broughtingoodf aithrelati
ngt ot hevalidit
yofasal ewi thpacto- de-retr
o(itbeing
clai
medt obeanequi tablemor tgage)andagai ncommencest or unonl yafter
decisi
ondecl ar i
ngi ttobeasal ehasbecomef i
nal
g. Wher et hecour t
sar efunct i
oni
ngr egul arly,t
her edempt iontermi snot
suspendedorext endedbywar .

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I
V. Whomayr
edeem orexer
ciset
her
ightofr
edempt
ion–

A. Thevendori nwhosef avort

herighti
sreserved.
Thefollowingareincl
uded–
a. Whent hevendor sareco-ownerssel
li
ngjoint
lyandinthesamecont ractan
undi
vi
dedimmovabl e.
1. Rightofeachco- owner.
i. Toredeem onlyhisshar
e( Ar
t.1612,par.
1)
2. Ri ghtofthevendee.
i
. Hemaycompel all
theco-ownerstoredeem thewhole( Ar
t.1
61 3)
.Also
whenthewholepropertyisadj
udicat
edtothevendeei nparti
ti
on(Art
.1611)

b. Whenaco- ownersel
lshi
sshar
eofanundi vi
dedi
mmovableseparat
ely(
Art
.
1614)
.
1. Ri
ghtoft
hevendor-
co- owner
i
. Hemayonlyredeem hi
sshar
e(Art
.1614)
i
i. Hecannotbecompelledt
oredeem t
hewhol e(Ar
t.1
614)

B. Hei
rsofthevendor(Ar
t.161
2,par.
2)
a. Ri ghtofeachheir.
1
. Eachcanredeem onl
ythepar
twhi
chhemayhave
acqui
red.

b. Ri
ghtoft
hevendee
1. Hemaycompel
all
thehei
rst
oredeem t
hewhol
e(Ar
t.
1
613)

NOTE:
Theruleoft
heCodei
nsonesal
e,oner
edempt
ion;excepti
ncaseofdeat
hof
t
hebuyeraretr
o.

C. Credi
tor
softhevendor(Ar
t.1610)
a. Requi sit
e–
1
. Thecr
edi
tor
smusthavealreadyexhaust
edt
hepr
oper
ti
esoft
hevendor(
Art
.
1
610)

V. Fr
om whom oragai
nstwhom mayr
edempt
ionbemade–
A. Thevendee

B. Theheirorhei
rsofthevendee–
a. I ft
hereismorethanonehei
r(Ar
t.161
5);
1. Agains
teachofthehei
rsforhi
srespect
iveshar
e.
i. Excepti
on:
a. Whenthet
hingsoldi
sawar dedtoonl
yoneheir

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 C. Ever ypossessorwhoseri
ghti
sderi
vedf
rom t
hevendee(
Art
.1608)
a. Wi thoutprej
udi
cetotheprovi
si
onsoftheMort
gageLawandActNo.496
(LandRegist
rat
ionAct
)

VI
. Obli
gationsoft hevendor -
a-ret
ro
A. Thevendor ’ (Art
.1616):
a. Tor eturnthepri
ceofthesale
b. Tor eturntheexpensesoft hecontr
actandyot herl
egi
ti
mat
epaymentsmade
byreasonoft hesale
c. Tor ei
mbur sethenecessar yandusefulexpensesmadeonthet
hingsol
d,
af
tertheiramounti sdet er
mi ned.

B. Ef
fectoft
hevendor’ –
a. Gener alr
ule:
Owner
shipconsol
i
dat
esi
nthevendee

b. Except
ion:
1. Whenthesubj
ectmat
terconsi
stsofr
eal
proper
ty(
Art
.
1
608)
i
. Requi
si
tes–
aa. Consoli
dat
ionofowner
shi
pmustbebyvi
rt
ueofaj
udi
cial
order
,af
terhear
ing
thevendor
.

VII
. Obl i
gationsofthevendee-a-r
etr
o
A. Tor eturnthethingsol
dfreefr
om al
lchargesandmort
gagesconst
it
utedby
t
hevendee( Art.1618)
1. Excepti
on:
i
. Leasecont r
actsingoodfai
thandaccordingt
ocust
om,whichmustbe
respected.

VI
II
. Rightsofthevendee- a-
ret
ro
A. Tocompel thevendororapartofanundi
vi
dedimmovabletoredeem t
he
wholepr
opertyupont hevendeeacquir
ingt
heenti
rei
mmovable(Art
.1611)i
n
par
ti
ti
onproceedings.

B. Tobesubr
ogat
edt
othevendor
’ (
Art
.1609)

I
X Rulesonpr o-r
ati
ng off r
uitsexi
sti
ngattheti
meofr edempti
on.
A. I ftherearevisi
blefruit
sattheti
meoft heexecuti
onofthesal
e–
a. Nor ei
mbur sementorpr o-r
ati
ng(Art
.1617,par
.1 )i
srequi
red.–
i
. I
findemni t
yforfrui
tswaspai dbyt hevendeewhent hesal
ewasexecuted( Ar
t.
1
617,par.1)

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 B. Ifnovi
siblefrui
tsattheti
meoft hesal
eexist
ed–
a. Fr uitsmustbepr o-rat
ed(Art
.1617,par.
2).
1. Shar
eoft hevendee:
i
. Thatporti
oncorrespondingtotheti
mehepossessedt helandi
nthel
astyear
,
count
edfrom theanniversaryoft
hedat eofthesal
e.

I
.  LEGALREDEMPTIONConcept
.
A. Def i
ned.(
SeeArt
.1619)

B. Ali
enati
onmustbeby–
a. Sal e
b. Dat ioni
npayment
c. Othert
ransact
ionswher
ebyowner
shi
pist
ransf
err
edbyoner
oust
it
le(
Art
.
161
9)

C. Dist
ingui
shedf r
om Pre-empti
on
a. Legal Redempt ion
1. Theri
ghtisbornafterthesal
e
2. I tresci
ndst hecont
ractandleaveswithouteff
ectasal
ethathasbeen
per
fect
edandconsummat ed
3. Theact i
oni sdi
rect
edagainstthepurchaser.

b. Pre-
Emption
1. Theri
ghtisbor
nbefor
ethesale.
2. Thecont r
actofsal
edoesnotyetexi
st
3. Theact i
onisdi
rect
edagai
nsttheprospect
ivevendor

D. Ther
ulesar
eappl
i
cabl
etobot
hmovabl
esandi
mmovabl
es

I
I. InstancesbyCo- owner s
A. Redempt i
onbyCo- owner s
a. Pur pose–t oendindivisi
onoratl eastr educet henumberofco-owners,
keepingst ranger soutoftheco- owner ship
b. Requi sites
1. Co- ownershi
pmus texi st
2. Ther emustbeal i
enationoft heshar esofal l
otherco-ownersoranyofthem
3. Al ienationmustbet oast ranger ,notaco- owner
4. Al ienationt osai
dstrangermustbebef orepar ti
ti
on
c. Whomayexer ciser edempt i
on–
1. Aco- owner( Art
.1 620)
i. Ef fectiftwoormor eco-owner
sdesiretoredeem:
aa. Theymayonl ydosoi npr opor ti
ont otheshar et heymayrespect
ivel
yhavein
thethingownedi ncommon( Ar
t.1 620,par .2)
d. Obl i
gati
onoft her edempt i
oner–

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 1
. Topaythepr i
ceofthesal
e(Art
.1620,par.
1).
i
. Excepti
on:
aa. Whent hepri
ceisgrossl
yexcessi
ve–
aaa. Topayonl
yar
easonabl
eprice(Art
.1620,par
.1)

e. Legal
Redempt
ionbyCo-
hei
rs(
Art
.1088)i
savar
iet
yoft
hisbyCo-
owner
s

B. Redempt i
onbyAdj oi
ningOwners.
a. I nstances–
1. Rurallands.
i
. Purpose: Tof avorthedevel opmentofr uralpr
opertyi
ntheint
erestof
agri
cult
ure
i
i. Requisit
es:
aa. Bot hadjoini
ngt enement sarerur
al
bb. Ther emustbeal ienati
on
cc. Ar eaoft helandalienateddoesnotexceedonehect are
dd. Tenement smustbeadj acentwi t
houtsol
utionofsurfaceofconti
nuit
y.
Aaa. Tenement ssepar atedbybrooks,ravines,r
oads,etc.ar
enotincl
uded
(Ar
t.1621,par.
2)
ee. Thevendeemustownsomeot herr
urall
and

i
i
i. Whomayexer ci
sether i
ght–
aa. Or derofpreference
aaa. Co- owners(Art.1623,par.
2)
bbb. Adjoini
ngowner s(Art
.1621,par
.3)
I. Prefer
ence( secondaryor
der)
A. Theowneroft
headjoi
ninglandofsmal l
erarea
B. I
fthear
easarethesame,thefi
rsttorequestredempt i
on

2. Urbanl ands(Art
.1622)
i. Requisi
tes
aa. Bot hadjoini
ngtenement sar
eurban
bb. Thet enementbei ngredeemedwasboughmer elyforspecul
ati
on
cc. Themaj orport
ionofthetenementi ssosit
uatedthati
tcannotbeusedf
orany
pract
ical
purposewithinareasonabletime.
dd. Ther eisali
enati
on
ee. Thet enement sareadjacent

i
i
. Whomayexer ci
sether i
ght–
aa. Or derofpreference
aaa. Co- owners(Art.1623,par .
2)
bbb. Adjoini
ngowner s(Art.1622,par
.1)
I
. Ef
fecti
ftwoormoreadjoi
ningownersdesir
etoexer ci
set her i
ght:
A. Pr ef
erencei
sgi
ventotheadjacentownerwhosei ntendeduseofthe

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l
andi
nquest
ionappear
sbestj
ust
if
ied(
Art
.1622,par
.3)

i
ii
. Ot herri
ght
savail
abl
etotheadj
oini
ngowner
aa. Pre-emption(Ar
t.1
623)–exer
cisedwit
hin30daysfr
om noti
cei
nwri
ti
ngby
thepr
ospect
ivevendor

b. Obli
gat
ionoft
heRedempt i
oner
1. Topayareasonabl
eprice.
2. Tonot
if
ythepr
ospecti
vevendorandvendeeofhi
sdesi
ret
oredeem

I
II
. ProcedureinRedempt i
on
A. Whent oexercisetheredempt i
on–
a. Wi thin30daysf rom t
henot iceinwri
tingbyt hevendor
B. Requi sit
ef ortheRegistr
ati
onoft heSaleintheRegi st
ryofProper
ty
a. I tmustbeaccompani edbyanaf fi
davitofthevendort hathehasgivenwri
tt
en
not
icetoallpossi
bleredempt i
oners.
C. Speci alRul es
:
a. Legal Redempt ionrequir
esnopr eviousnoticeofintenti
ontoredeem
b. Tenderoft hepr iceisnotaconditi
onpr ecedenttoredempt i
on

I
V. Ot
hercasesofl
egal
redempt
ion–

a. Redempt ionbyt hedebt orinthesaleofacr editinlit

igation( Art
.1 634)
b. Redempt ionbyco- heir
sincaseofasal ebyanhei rofhi sher editaryrightsto
astrangerbefor
epar ti
tion
c. Redempt ionbyt heappl i
cat i
on,hiswi dow,andl egalhei r
swi t
hi nfive(5)years
fr
om theconveyanceofl andsunderahomest eadorfreepat ent
d. Redempt ionwi t
hinoneyearbyaj udgmentdebt ororr edempt i
onerofr eal
propertysol
dunderexecut i
on
e. Redempt ionbyt heowneroft hepr opert
ysol df
ordelinquentr eal
tyt axes
f. Redemptionwi t
hinone( 1 )yearbyt hemor t
gagorinsal esunder–
1. Ext
ra-judicial f
oreclosure
2. Judi ci
alforecl osuresby–
i
. TheRehabi li
tati
onFi nanceCor porati
on
i
i. ThePhi l
ippi
neNat ionalBank
i
ii
. Bankswi thi
nt hepur viewoft heGener alBanki ngAct .

ASSI
GNMENTOFCREDI
TSANDOTHERI
NCORPOREALRI
GHTS

I
. Concept: “ A cont
ract, uni
l
ateral or bil
ater
al, onerous or l ucrati
ve,
commut at
iveoraleator
y,wherebyaper sontransmit
stoanot herhisrightorrights
agai
nstat hi
rdparty,whet
herornotanequi valentf
orthet r
ansmi ssi
oni srecei
ved
fr
om thetr
ansfer
ee.”

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 A. Whi l
et heCodet reat
sofassi
gnmentofcredi
tsasavari
etyofsal
esthe
facti
st hattheassignmentmaybeef fect
edinavari
etyofways;bysale,bybar
ter
,
bydonat ionorevenbyt est
ament. Theassi
gnmentisat r
ansf
erenti
rel
ydif
fer
ent
from t
het ransact
ionori
ginati
ngit.

I
I. Essenti
alrequisi
tesandf or
mal i
ti
es.
A. Thesedependi neachcaseupont hecontr
actofactgi vi
ngr i
setothe
assi
gnment .
a. Assi gnmentofr ealr
ightsuponi mmovableproperty,donebywayofdonat i
on,
requir
esapubl icinst
rument
b. Assi gnmentbywayofl egacyr equi
resaprobatedwi l
l
c. Assi gnmentofchosesi nact i
onbysaleoroner ouscont r
act,i
finvol
vi
ngP500
ormor e,isunenforceableint
erpartes,andcomesundert heStatuteofFrauds(a
writ
tenmemor andum isrequir
ed)
d. Assi gnmentofanegot i
ableinstr
umentrequir
esindorsementordel i
very.

B. Asagai nstthi
rdpersons(butnotthedebtoroft
hecreditassi
gned)an
assi
gnmentofacr edit
,ri
ghtoracti
onshallproducenoeff
ectunlessitappearsi
na
publ
icinst
rument,orthei
nstrumentisrecordedint
heregi
str
yofpr opert
y,incase
theassi
gnmentinvolvesrealpr
opert
y(Ar t
.1625)

a. Theconsentoft hedebtoroftheassignedcrediti
snotrequir
edfort
hevali
dity
oftheassi
gnment:buttheassi
gnmenti snotfull
yeff
ecti
veagainstt
hedebtorunt
ilhe
i
snotif
iedt
hereoforhasactualknowledgeoft heassi
gnment;i.
e.,t
hedebtorunt
il
then i
snotboundtopayt heassi
gnee.

I
II
. Ef
fectofaval
i
dassi
gnment
.

A. I tt
ransfersti
tl
etotheassi gnedcreditt
otheassignee,evenift
hedebtori
s
unawarethereof.
a. Theassi gnmentincludesallaccessoryri
ght
s,suchasguar ant
y,pl
edge,
mortgageorpr efer
ence( Art.1
672)

B. Theassi gneet akest hecr editsubjecttoalldefensesacqui redbyt hedebtor

beforenoti
ceorknowl edgeoft heassignment
a. Hence,t hedebt orwho,bef orehavi ngknowl edgeoft heassi gnment ,payshi
s
credit
orshal
lber eleasedf r
om t heobligati
on
b. Thedebt ormaysetupcompensat i
onofcr editsacquiredaf terassignmentbut
beforenoti
cether eof( Art.1198)unlesst hedebt oragr eedtot heassignment( when
hecannotcompensat e)
c. Anycompr omi seorr el
easeoft heassi gnedcl aim madebyt heassignor
beforenoti
ce,wi l
lbeval i
dagai nsttheassigneeanddi scharget hedebtor.
1. I
srecordingsuf fici
entnot ice?Yes ,providedt her ecordingisrequires(not
mer el
ypermit
ted)byl aw.

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 C. War rant
ybytheAssignor
a. Theassi gnoringoodfai
thshall
ber esponsi
blefortheexi
stenceandlegali
tyof
thecr
editatt
het i
meofsale,unl
essitshouldhavebeensol dasdoubt f
ul.
1. Doubtf
ulnessofthecredi
tassi
gnedmustexpr essl
yappear;iti
snotpresumed

b. Theassi gnoringoodfaith,doesnotanswerf
ort
hesolvencyofthedebt
or
unl
ess-
1. Expr essl
yst
ipul
ated
2. Thei nsol
vencyofthedebtorwasknowntohim personal
l
yor
3. Thei nsolvencyofthedebtorwaspriortot
hesal
eandofcommonknowl edge
(Ar
t.1628)

c. Wher ethesolvencyoft hedebtoriswarr

ant
edbyt heassi
gnor,hi
sliabi
li
ty
l
astsonl
y–
1. Oneyearaft
ertheassi gnment,ift
hedebtwasalreadymatured
2. Oneyearaf t
ermat uri
ty,ift
hedebtmat ur
esaft
erassignment(Art
.1629)
- Comparethi
swi thparti
ti
onbetweenco- hei
rs(
li
abil
it
yforsol
vencylasts5
years(
Art
.1095)

d. Recoveryont hewarranty
1. Theassi
gnori
ngoodfait
hmustreturnthepri
cerecei
vedpl
usexpensesoft
he
cont
ractandpayment
sonaccountther
eof.(Art
.1628)
2. Theassi gnori
nbadfai
th:al
loft
heabovepl usdamages(Ar
t.1
628)

VI
. Specialassignment s.
A. Sal eofInher i
tance(Estate)
a. I fwithoutenumer ationoftheitemscomposi ngit
,thevendoronl yanswersf
or
hischaract
erashei r(
Art.1 630)
b. Thevendorshal lreimburs et
hevendeef ort hef
ruit
sobt ainedoranyt hi
ng
recei
vedf r
om t heinheri
tancesol d(Ar t
.1632)i
fthecontraryisnotstipulat
ed
c. Thevendeeshal l
r eimbursethevendorfor–
1. Al
l t
hatvendorpai donaccountoft heestatedebt s ;
2. Cr editst
hatt hevendorhadagai nsttheestat
e( Art.1633)

B. Sal
eofrights,rentsorproductsforalumpsum
a. Thevendoranswer sforthelegi
ti
macyofthewholei
ngener
al
b. Ther eisnowar rantyofindivi
duali
tems ,unl
essther
eisevi
cti
onoft
hewhole
oroft
hepartofgreat
erval ue(Art
.1931)

C. Sal eandRedempt ionofl

i
ti
giouscredit
s
a. Conceptofl i
ti
giouscredi
t–Acrediti
sconsideredinl
it
igat
ionf
rom t
het
ime
thecomplai
ntconcerningt
hesamei sanswered.(Art
.1634,par.
2)
b. Ef fectofsal
e–

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 1
. Legal
redempti
onbyt hedebtor–Requi si
tes:
i
. Thedebt
ormustr ei
mbur setheassigneefor–
aa. Thepr i
cetheassigneepaid
bb. Judici
alcostsi
ncur r
edbyhi m
cc. Int
erestonthepricef r
om t
hedayi twaspai
d

i
i. Ther
ightmustbeexerci
sedwi
thi
nthi
rt
ydaysf
rom t
hedat
etheassi
gnee
demandspaymentfrom hi
m

2. Except
edfrom therul
earesal
es( orassignment
s)madeto:
i
. Aco-heirorco-owneroftherightassi
gned
i
i. Acredit
orinpaymentofthecredi t
i
i
i. Thepossessorofat enementorpi
eceoflandwhichissubj ectt
otheri
ghti
n
l
i
ti
gat
ionassi
gned.(
Art
.1635)

I. Natureandchar acteri
sti
cs
A. Defi
ned(SeeAr t
.1638)
B. Charact
eri
st i
cs–ofbar ter:
a. Consensual –per f
ectedbyconsent
b. Bi l
ater al–involvi
ngr eci
procalprestat
ions
c. Oner ous–consi sti
nginanexchangeofequi val
entval
ues
d. Nomi nat e–havi ngaspeci aldesignati
on
e. Pr i
nci pal –capableofexistingalone
f. Commut ati
ve–f ulf
il
lmentbeingdet erminedi
nadvance

C. Requi
sit
e–
a. Thet hi
ngsmustbel
ongtotherespect
ivepar
ti
es .
Hence–
1. I
foneoft
heparti
esshoul
dprovet
hattheot
herdidnotownt hething
promisedandgi
ven,hecannotbecompell
edtodeli
verwhatheoffered,butshal
lbe
enti
tl
edtodamages(Art
.1639)

2. I
ncaseofevict
ion,theinjur
edpar t
ymayaskfor-
i
. Recover
y–pr ovi
ded:
aa. Thethi
ngremainsint hepossessi
onoft
heotherpart
y,and
bb. Wit
houtprej
udi
cet ot hi
rdpersonswhoacqui
redri
ghtsi
ngoodf
ait
h

i
i
. Oronl
yindemni
tyf
ordamages(
Art
.1640)

D. Thepr
ovi
si
onsonsal
ear esuppl
etor
y(Ar
t.1641)
a. Butbarteri
snotsubj
ecttocei
li
ngpri
celaws.

i
x.quasi
-cont
ract
s

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 LOAN:

 Loani
sar
ealcont
ractbecauset
hedel
i
ver
yoft
het
hingl
oanedi
snecessar
y
fort
heperf
ect
ionofthecont
ract
.Ther
ear
etwoki
nds:Commodat hi
um ( r
am)
andMut ut
uum ( ang)

 Char
act
eri
sti
cs:
1.I
tisgratui
tousifaconsi derati
onispaidtheni tisal ease;
2.I
tspurposei sthet empor aryuseoft hethingloaned
3.I
nt heuseoft het hing,thebaileeitdoesnoti ncludet hefr
uit
sunlesst
here
i
sast i
pulati
ont othecont r
ary
4.Bail
eeneednotbet heowneroft hesubj ectmat terbuthemusthave
possessoryinterestovert hething
5.Thedeat hofthebai l
orort hebail
eeexti
ngui shest hecontractofl
oan.Iti
s
thuspersonalinchar act
er

 Thebai
l
eei
sli
abl
eforor
dinar
yexpensesf
ort
heuseandt
hepr
eser
vat
ionof
thethi
ngloaned.
 Abai l
ee i
snotliabl
eforl
ossprdamageoft
het
hingl
oanedduet
ofor
tui
tous
event.Excepti
ons:

1.Whent hebai l
eedevot est hethingt oadif
f erentpurpose;
2.Whent hebai l
eekeepsi tl ongert hantheper iodstipulat
edorafterthe
accompl ishment of t he use f or which t he commodat um was
consti
tuted;
3.Ifthethingl oanedwasdel i
veredwi thanappr ai
salofi t
sval
ueunl ess
thereisanexpr essst
ipulationtot hecontrary
4.Ifthe bailee lendsthe t hing loaned to at hird person who i
snota
memberofhi shousehol d
5.Ifthebailee,bei ngabletosavet het hi
ngl oanedorhi sownpropertyof
simil
arnat ur
e,choset osavet hel att
er

t
hebai
l
orhast
heobl
i
gat
iont
oal
l
ow t
hebai
l
eet
ouset
het
hingl
oanedf
ort
he
durat
ionortheper
iodst
ipul
atedorunti
ltheaccompl
ishmentoft
hepur
pose
forwhicht
hecommodatum wasconsti
tut
ed.Thebail
orcandemandt
hethi
ng
l
oanedwhen:

1
.hi
shasanur
gentneedoft
het
hingl
oaned, dur
ingwhi
cht
imet
he
commodatum shal
lbesuspended;
2.i
ncasesofprecari
um –ther
eisprecar
ium when:

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 a. i
fthedurat
ionofthecontracthasnotbeenst i
pul
ated;
b. i
ftheuseorthepur poseofthecontracthasnotbeensti
pul
ated;
c. i
ftheuseofthethingismerelytol
eratedbythebail
or

t
hebai
l
ormayal
sodemandt
her
etur
noft
het
hingl
oanedwhent
hebai
l
eehas
commi
tt
edanyactofi
ngr
ati
tude

 MUTUUM -i
sacont
ractwher
ebyoneoft
hepar
ti
esdel
i
ver
stoanot
her
moneyorot herconsumablethi
ng wit
hthe under
standi
ng t
hatt
he same
amountoft
hesameki ndandqual
it
yshal
lbepaid.

 I
nmut uum,owner shipistr
ansf
erredt ot hebor r
ower
 I
tmaybegr atuit
ousoroner ousiti
sal oanf orconsumpt ion
 Thel egalr
ateofi nteresthasbeenr aisedt o1 2% andt hisrateappli
esonl
y
toloansorf orbear anceofmoney,goodsorcr editandcour tj
udgments
thereon.Cour tjudgment sfordamagesar isi
ngfrom injurytopersonsand
l
ossofpr oper tywhi chdoesnoti nvol veal oani satt her ateof6% per
annum.
 Wher et
heint erestr atei
snotexpres slystipulat
ed,thel oanshallearn12%
perannum.

 DEPOSI
T
 A deposi
tisconst
it
utedf
rom t
hemomentaper sonreceivesathi
ng
bel
onging t
o anot
her,wi
ththe obl
i
gat
ion ofsaf
ely keepi
ng i
tand
ret
urni
ngthesame.

 I
tisar
ealcont
ractbecausethecont
racti
snotper
fect
edunl
esst
her
eis
t
hedel
iver
yofthesubjectmatt
er.

 Di
sti
nct
ionsbet
ween Ext
raj
udi
cial
andJudi
cial
deposi
t:

1.E.isconstit
uted byt hewi lloft hecont racti
ng par t
ieswhi leJ
depositisconstit
uted by cour tor dere. g.at tachmentoft he
propert
y
2.E.depositrefer
st omovabl epr opertywhi l
eJdeposi trefersto
ei
thertomovableori mmovabl epr opert
y;
3.The purpose ofE.deposi tist he saf ekeeping oft he t hi
ng
deposit
edwhi l
einJdeposi t,iti
st osecur eorpr ot ectt
heowner ’
ri
ght;
4.E.depositis gener al
ly gratui
tous whi l
e J.deposi tis always
onerous;
5.I
n E.deposi tthe deposi t
aryi s obligated tor eturnthe t hi
ng
deposit
edupondemandbyt hedeposi t
or,whil
ei nJ.deposi t
,the
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 t
hingshal
lbedel
i
ver
edonl
yuponor
deroft
hecour
t.

 GUARANT Y
 I
sacontr
actwher
ebyapersonbi
ndshimsel
ftothecredi
tort
oful
fi
l
lthe
obl
i
gat
ionoft
hepri
nci
pal
debtori
ncasethel
att
ershouldf
ailt
odoso.

 Char
act
eri
sti
cs:

1.I
tisanaccessorycontr
act
2.I
tissubsi
diaryandcondit
ional
3.Unil
ater
al
4.Theguarantormustbeaper sondi
sti
nctf
rom t
hepr
inci
pal
debt
or

 Guar
ant
yandSur
etyshi
p

1.G.isonlysecondaril
yl i
able;whi l
eaS.i spri
mar i
l
yli
abl
eandi snot
enti
tl
ed tot he benef i
tof excussi on or exhaust
ion of the
propert
iesoftheprincipaldebt or
2.Li
abil
it
y of the Guar ant or depends upon an i ndependent
agreementtopayt heobl i
gat i
oni ft
hepr i
mar ypart
yfail
stodoso.
TheSuretyisaregul arpartytot heundertaki
ng;
3.Theguar ant
or bindshi msel ftopayonl ywhent he pr i
ncipal
debtorcannotpay;t hesur et
yassumesl iabi
li
tyasaregularpart
y
totheunder t
akingandt husunder takest opayifthepr i
ncipal
debtordoesnotpay.
4.TheGuar ant
orisani nsureroft hedebt or
’ .TheS.i san
i
nsurerofthedebt

 Theguarantor’ ;
 A guarant
yi sgener
all
ygr
atui
tousunl
esst
her
eisast
ipul
ati
ont
othe
contr
ary

 BENEFITOFEXCUSSION–theguar
ant
orhasthe r
ighttot
hebenef
itof
excussi
onbef
orehecanbecompel
l
edtopay.Excepti
ons:

1.I
ftheguarantorhasexpr essl
yrenouncedt heexcussion
2.I
ftheguarantorhasboundhi mselfsoli
daril
ywi t
ht hedebt
or.Thi
s
wouldbeacaseofsur etyshi
p
3.I
ncaseoft hedebtor’
4.Whentheguar antorhasabscondedorcannotbesuedwi t
hint
he
Phil
i
ppinesunlessheleftamanagerorr epresentati
ve
5.I
fitmaybepr esumedt hatanexecutionont hedebtor’
notsat
isf
ytheobl i
gati
on

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 6.Iftheguar antordoesnotsetupt hebenef itofexhaust
ionandf ai
lst
o
pointoutt othecr edit
oravail
abl
e propertyoft hedebtorwi t
hinthe
Phi l
i
ppines
7.Ifhei sajudicial
bondsmanandsub- sur
ety
8.Wher eapl edgeormor t
gagehasbeengi venbyt heguar antorasa
speci alsecuri
ty
9.Iftheguar antorfail
stointer
poseitasadef ensebefor
ej udgmenti s
render edagai ns
thim

 BENEFITOFDI VI
SION –guarantori
slikewiseenti
tl
edtothebenef i
tof
divi
si
on.Wheretherear
eseveralguar ant
orsofonlyonedebt orf
orthe
samedebt.Theguarant
or’ ,i
nthiscase,ismerel
yjointandthey
are notli
abl
e beyond the shares which they r
espect
ively bound
themsel
vestopay.

 PLEDGE
 Isacontractbyvi
rt
ueofwhi chthedebtordeli
verstot hecredit
orortoa
thi
rdpersonamovabl eordocumentevidencingi ncorporealri
ghtsfor
thepurposeofsecuringtheful
fil
l
mentofapr incipalobli
gati
onwi tht
he
underst
andingthatwhent heobl i
gat
ionisful
fil
led,thethingdel i
ver
ed
shal
lbereturnedwit
hal l
it
sfrui
tsandaccessi
ons.

 Char
act
eri
sti
cs:

1.Realcont ract-perf
ectedbythedel i
veryofthethi
ngpledgedby
thedebt or(pledgor)t
ot hecredi
tor(
pledge)ortoathir
dper son
byagr eement ;
2.Accessor ycont r
act
3.Unil
ateral contr
actwhichcreatesanobl i
gati
ononlyonthepar tof
thecreditortoreturnt
het hi
ngpledgedupont hef
ulf
il
l
mentoft he
pri
ncipal obli
gati
on
4.Subsidiarycont r
act–theobligat
ionincurreddoesnotari
seunt i
l
thefulf
il
lmentoft heprinci
palobli
gati
ontowhi chi
tsecures

 Essent
ial
requi
rement
s:

1.Thepl edgei sconsti

tut
edtosecur etheful
fil
l
mentofapr i
nci
pal
obl i
gat
ion
2.Thepl edgorormor t
gagormustbet heabsoluteownerofthe
thingpledgedormor tgaged
3.Theper son(
s)consti
tut
ingthepledgeormor tgagehavethefr
ee
disposaloft hei
rpropertyorthattheyarelegall
yauthor
izedfor
thepur pose

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  Thepledgehasnotr ightt
ouset hethi
ngpledgedortoappropriatet
he
frui
tst
hereofwithouttheauthor
ityoftheowner. Butthepledgecan
applythefrui
ts,income,divi
dendsorinter
est,i
fowingandther eaf
ter
totheprinci
palofhiscredit(
Art.2132)unl
essther
ei sast
ipulati
ont o
thecontr
ary.

 Pledgorcannotaskf orthereturnofthethi
ngpledgedunt i
lthepri
nci
pal
obli
gati
on i sful
l
ypai di ncl
uding i
nter
estdue t her
eon and expenses
i
ncurredf orit
spreservat
ion.Butthepledgorisall
owedtosubstit
utethe
thi
ng pledged whichi si ndangerofdest ruct
ionorimpai rmentwith
anotherthingofthesameki ndandqual i
ty.

 The sal
e oft
he t
hing pl
edged ext
ingui
shest
he pri
nci
palobl
i
gat
ion
whethert
hepr
icei
smor eorl
essthantheamountdue.

 Ift
hepriceoft
hesal
ei smor
ethantheamountduet
hecredi
tor
,
thedebtori
snotent
it
ledt
otheexcessunl
esst
herei
sacontr
ary
sti
pul
ati
on;

 Ifthepriceofthesaleislessthanthepr
inci
palamountdue,the
credit
ori sNOTent it
ledtor ecovert
hedefi
ciency. A cont
rar
y
sti
pulat
ionisvoid.(
Art.21
1 5)

 A pl
edgerenouncing apledge,i
nas t
atementinwri
ti
ng,ext
ingui
shesthe
pl
edgeandt hepledgeebecomesadeposi tar
y.Neit
hertheacceptanceby
t
hepledgorortheowner,northeret
urnofthethi
ngpl
edgedisnecessaryf
or
t
hepledgetorenounceorabandonthepledge.

 REALMORT GAGE
 Char
act
eri
sti
cs:

1
.REALTYASSUBJECTMATTER–onl yr
ealpropert
yorali
enable
ri
ghtsand int
erestt
her
ein maybe the subj
ectmatterofreal
estat
e mortgage.Even the ri
ght
s ofa mor tgage orother
encumbrancesmaybe t he obj
ectofanothermor t
gage.(Art
.
2124)

2.REALRIGHT–amor tgagel ienisar ealri

ghtandassuchi ti
s
goodandbindi
ngagainstthewhol ewor l
dandmaybeenf or
ced
byreal
acti
onagai
nstallpersonswhomayhaveexi st
ingr
ight
sor
i
nter
esti
nthesameproper t
y,itr
egist
eredpriort
othemortgage.

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 3.ACCESSORYOBLIGATI
ON –theconsi
derat
ionofthemor
tgage
i
sthesameast
hatoft
hepr
inci
pal
obli
gati
onitsecur
es.

4.I
NDI VI
SIBI LI
TY–event houghthedebtsecur edmaybedi vided
amongt hedebt ors,orcr edi
tor
sort heirsuccessor s-in-int
er est
,
themor tgageshal lr emai nasoneandi ndivisi
ble,unl esst here
havebeensever althingsgi veninmor tgageandeachoft hem
guaranteesonl yadet erminateport
ionoft he obl igati
on. I nt he
l
att
ercase,t he creditormay cl ai
m f rom t he third per s
on i n
possessionoft hemor t
gagedpr operty,thepaymentoft heapr t
ofthecr edi
tsecur edbyt hepropertywhi chsai dt hirdper son
possess.

5.I
NSEPARABI LI
TY–t hemor tgagel i
enandthepropert
yaff
ected
arei
nseparabl
esot hatwhoevermaysubsequent l
yacquireti
tl
e
tothe mor t
gaged propertyi s bound by t
he ter
ms oft he
mort
gage,whetherthetransferbewi t
horwit
houtt
heconsentof
themort
gagee.Themor tgagedi r
ectlyandi
mmediatel
ysubject
s
thepr
opertyuponwhi chitisi mposed,whoevert
hepossessor
maybe,tot heful
fi
l
lmentoft heobli
gati
onforwhosesecuri
tyit
wasconsti
tut
ed.

6.RETENTI
ONOFPOSSESI ON–t hemort
gagorr
etai
nspossessi
on
ofthemortgagedproper
tyi
nasmuchasamor tgageisamer e
l
ienandt
it
letothepr
opert
ydoesnotpasst
othemor t
gagee.

 MORTGAGEDI
STI
NGUI
SHEDFROM ANTI
CHRESI
S:

1. AS TO POSSESSI ON – ifthe pr
opertygi ven i
n secur
it
y,the
debtorret
ainsi
tin caseofmor t
gage;thecredi
tortakesoveritincaseof
Anti
chresi
s; A mor t
gage coupled wi
ththe deli
veryoft he l
and tothe
credi
torbecomesanant i
chr
esis

2. WI TH RESPECTTO FRUI TS – in A M.,the credi

tordoesnot
gatherorreceivet
hem;ina.,thecredi
torgenerall
yrecei
vesthem wit
hthe
obli
gati
ont oapplythem t
ot hepaymentofi nter
estdueand,i fanysti
l
l
remain,t
ot hepri
nci
palobl
i
gation;

3. I nA.t hecredi
torisobl
igedt
opayf ort
het
axesandchar
ges
upontheest
ate;inM.iti
sthedebt
orwhopays

 REAL ESTATE MORTGAGE DI STINGUISHED FROM CHATTEL

MORTGAGE-asidef
rom thesubj
ectmatter
,anot
herdi
ff
erencei
sinthe
for
mal
i
tyrequi
red f
ort heirconst
it
uti
on. REM i srequir
ed to be

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 consti
tutedbymeansofapubl
i
cinst
rument,CM maybeconst
it
utedi
n
apr i
vatedocumentonlypr
ovi
dedthelat
terisaccompani
edwithan
Aff
idavitofGoodFai
th.

 A st
ipul
ati
on f
orbiddi
ng t
he ownerf
rom al
i
enat
ing t
he i
mmovabl
e
mort
gagedshallbevoi
d(Art
.2130)

 Themor t
gageehast herighttoali
enateorassigntoat hi
rdperson,in
wholeorinpar t
,hismor tgagecredit. Thetr
ansferofthemor t
gage
credi
tdoesnotaffectt
hedebt orunlessheisnoti
fi
edofit
.Ift
hedebt or
paystotheorigi
nalmortgageei nignoranceoftheassi
gnment,hewi l
l
berel
easedfrom debt.

 REDEMPTI
ONBYMORTGAGOR:

1. theEQUI
TYOFREDEMPTI ONi stheri
ghtoft
hemor t
gagoraf t
er
thejudgmenti
nf oreclosur
eproceedings,wi
thi
naperiodofnotl ess
than90daysbeforet hesal
eorconfi
rmati
onofthesal
e,topayint
ot he
courtt
heamountoft hejudgmentdebt.

2.RIGHTOFREDEMPTI ON –istherightofthemor t
gagor,aft
ert
he
sal
eofthemort
gagepr oper
ty,t
oredeem thepr oper
tybypayingtot
he
pur
chaseri
nthesal
eort othesheri
ffwhomadet hesale,t
heamount
pai
dbyhim,wit
hint
erest,wi
thi
noneyearf rom t
hesale.

Ther eisnor i
ghtofredempt i
on,onl
yequit
yofr edempti
on,i njudi
cial
foreclosur
e underthe RulesofCour t
. The ri
ghtofr edempt ion i
s
provided in(1)foreclosur
e by banks orbanking i
nsti
tuti
ons as
provided inthei
rchar t
ers orinthe GeneralBanking Act
;and ( 2)
extraj
udici
alf
orecl
osuresunderActNo.3135,asamended.

 CLAIM FOR DEFI CIENCY– t hemor tgageehast heri

ghttoclaimfor
defi
ciencyresult
ingf rom t
hepr i
ceobt ainedi nthesal
eoft hepropert
y
atpubl i
c auct
ion and t he out
standi
ng obl igat
ion atthe t
ime ofthe
for
eclosureproceedi ngs.Theri
ghttocl aim paymentofdefici
encyaft
er
for
eclosureofreal mor t
gageprescri
besi nten( 1
0)years.

CHATTELMORTGAGE:

 SUBJECTMATTER-onl ypersonalpropertyi
ncludi
ng equit
yi nshares
ofstock;growingcr opseveniftheyate‘ungat
heredproducts”theyare
considered personalpropert
yt hatmaybe t he subj
ectmat t
erofa
chatt
el mort
gage;vessels
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  SALEOFCHATTELMORTGAGEwi thoutconsentoft hemor tgagee–
Arti
cl
e31 9,par.2oft heRevi sedPenal Codeprovides–anymor t
gagor
who shal lsellor pl edge per s
onalpr opert
y al r
eady pledged or
mor t
gagedundert heChat t
elMor tgageLaw withouttheconsentoft he
mor t
gagee wr i
tt
en on t he backoft he mort
gage and not ed on the
recordthereofi
nt heOf fi
ceoft heRegi st
erofDeedsoft heprovinceor
cit
ywher esuchpr opertyisl
ocat edincurscr
iminall
iabil
i
ty.

 AFFIDAVITOFGOODFAI TH –“Wesever all

yswearthattheforegoi
ng
mor t
gageismadefort
hepur poseofsecuri
ngt heobl
igat
ionsspeci
fi
ed
i
nt hecondi
ti
onther
eof,andfornootherpurpose,andthatthesameis
ajustandvali
dobli
gat
ion,andonenotent eredint
oforthepurposeof
fr
aud.”

- theAffi
davi
tofGoodf ai
thisrequiredt obeappendedtosuchmor tgage
andrecordedther
ewi
th
- Theabsenceofsuchaf f
idavi
tvit
iat
esamor t
gageasagainstcr
editor
sand
subsequentencumbr
ances ;unenforceableasagai
nstt
hirdpersons.The
chatt
elmor t
gagemay,however ,beval idasbet
weenthepar t
ieseveni n
theabsenceoftheaf
fi
davitofgoodf ai
th.

 REALMORTGAGEANDCHATTELMORTGAGEREGI
STRATI
ON

– A deedofmor t
gagecover i
ngregi
ster
edlandisconsi
der edregi
stered
from theti
met hesamei srecordedintheent
rybook;incaseofaChat tel
mor t
gage,however ,the documentmustbe r ecorded int he chattel
mor t
gager egi
ster.Inthefi
rt,ent
ryintheDayBooki ssuff
icient
;whilein
chatt
elmor t
gage,t her
emustbeent r
y,notonl
yintheDayBookbutal soin
theChattelMortgageRegist
er.

 FORECLOSURE OFCHATTELMORTGAGE-i ti
saconditi
onprecedent
thatbefor
ef or
ecl
osur
emayber esor
tedto,i
tisnecessar
ythatt
herebe
aviolat
ionofthecondi
ti
onoft
hechat t
elmortgageandthatatl
east30
daysshallhaveel
apsedsi
ncet
hen.(Sec.14,CML)

 EFFECTOFFORECLOSURE–whent hefor
ecl
osureisval
idl
yconfi
rmed
bythecour t
,ti
tl
eint hepr oper
tyrestsuponthepur chaserand the
conf
ir
mationret
roactstothedateoft
hesale.Al
lri
ghtsofthemortgagor
i
nthepropertyt
erminatesandisvest
edinthepurchaser
.

 DEFICI
ENCY-Chat
telmor
tgagecr
edi
tormaymai
ntai
nanact
ionf
or
def
ici
ency.

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 ANTI
CHRESI
S:

 “Bythecontractofanti
chresi
st hecreditoracquir
estherightt
or ecei
ve
t
hef rui
tsofanimmovabl eofhi sdebtor,withtheobli
gati
ontoappl y
t
hem t othepaymentoft heinterest
,ifowingandt hereaf
tertothe
pri
ncipalofhi
scredit
.”Art.2132.

 COMPARED WI TH PLEDGE AND MORTGAGE – l ike pledge and

mor t
gage,ant i
chresi
sisar ealr
ightandanaccessor ycontract,which
cannotexi stwit
houtaval i
dpr i
ncipalobl
igati
on. Itisnotessent iali
n
anti
chresisthatthepropert
ypasst othepossessionoft hecredit
orora
thi
rdper son.Buti tdif
fersf r
om pledgei nthatitref
erst oimmovabl e
propert
y,and f r
om mor tgage int hatthe cr
editorhast he rightto
recei
vet hef r
uit
softhet hi
ng,al t
hought hei
rappl i
cati
onisdet ermined
bylaw.

 Ant
ichr
esi
scompar
edwi
thpl
edge–

1
. Antichresisisaconsensualcont r
actint hesenset hatitcanbe
perfectedwi t
houtdel i
veryoft hethi
ngpl edged.
2. Ast osubj ectmatter,onlyr ealpr
oper t
yori mmovabl e maybe
theobj ectofA;inpledge,iti smovableorper sonalproperty’
3. to const it
ute a val i
d pl edge, iti si ndispensable that t he
pos sessionofthepr oper t
ybehel dandr etai
nedbyt hecr edit
or
ors omeoneel sedesi gnatedbycommonconsent ;i
nAnt ichresis
,
thecont ractmayst i
llsubsisteveni fthepossessi onoft het hing
giveni nsecurit
yisr etur
nedt othedebt or,aswhent hecr edit
or
desirest obeexemptf rom t heobligati
ont opayi tstaxesand
otherexpensesnecessar yf orit
spreservation.

 RI
GHTSOFTHECREDI
TORI
NANTI
CHRESI
S:

1. theri
ghttothefruitsandi ncomeoft hething;
2. t heri
ghttoretai
nt het hinguntil
thedebtispaid;
3. t heri
ghttohavet het hingsolduponnon- paymentatmat ur i
ty;
4. t heri
ghtofpreferencet otheproceedsoft hesaleoft hething
 Whenacont ractofloanwi t
hsecur i
tydoesnotst i
pulat
et hepaymentof
i
nterestbutprovidesforthedel i
ver
yt othecredi
torbyt hedebt oroft he
realpropertyconsti
tutedassecur ityfort
hepaymentt her eof
,inor der
thatthecredit
ormayadmi ni
sterthesameandavai lhimselfofthef ruits,
withoutstati
ng thatsaidf r
uitsaret o be appli
ed tot he paymentof
i
nterest,i
fany,andaf terwar dst othatoftheprinci
paloft hecredi t
,t he
contractshal
lbeconsi deredt obeoneofmor tgageandnotant ichresis .
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  Paymentofinter
estshal
lbespecif
iedinwr
it
ingwhi
chi
sessent
ialf
or
t
hevali
dit
yofthecontr
actofAnt
ichr
esis
.

 Thecr edit
or,unlesst hereisasti
pul
ationt othecont r
ary,i
sobligedto
payt hetaxesandchar gesupontheestate.Hei salsoboundt opaythe
expensesnecessar yforitspr
esevat
ionandr epair.Thesum spentfor
thesepur posesshal lbedeductedfrom t hef r
uit
s.Ifthefr
uitsarenot
suffi
cienttocovert hetaxesandcharges,t hedefici
encyshallbeborne
bythecr edit
or,unlessotherwi
sesti
pulated.

 EFFECT OF NON- PAYMENT OF DEBT – t he credit

orin ant i
chresi
s
cannotbymer epossessionoft herealpropert
ywhi chher eceivedby
vir
tueofanantichr
esisacquireowner shi
povert hesamef orf ai
lureof
thedebtort
opayt hedebtwi thi
nthest i
pul
atedti
me,anyagr eementt o
thecontr
arybeingvoid.Thedebt orcannotrecovertheenjoymentand
useoftherealpropertygiveninanti
chresi
sthereon,thecreditorbeing
enti
tl
edtoaskthecour t
sthatthesai
dr ealpr
opertybesoldtosat isf
yhis
credi
t.

i
x.quasi
-del
icts
A.ELEMENTSOFQUASIDELI CT/TORTS
1.Actoromi ssion
2.Damageori njuryi
scausedt oanother
3.Faultornegli
gencei spresent
4.Therenopr e- exi
sti
ngcontract
ualrel
ati
onbet
weenthepar
ti
es
5.Causal connectionbet
weendamagedoneandact /
omissi
on

B.DISTINGUI
SHEDFROM OTHERSOURCESOFOBLI GATION:
CONTRACT QUASIDELICI
T DELI CIT
Vincul
um Contract Negl i
gentact/omissi
on Act or
Juri
s (culpa,i
mprudence) omission
commi t
ted
bymeansof
dolo
(del
iberate,
malicious,in
badf ait
h)
Proof Pr
eponderance of Preponderance of Proof
needed evi dence evidence beyond

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 reasonabl
e
doubt
Def ense Exer cise of Exerciseofdi l
igenceof
available extr
aor di
nary goodf at
herofaf amily
di
li
gence ( in contract i
n t he sel ection and
of car r
iage), for ce supervisi
on of
Majeur e employees
Pre- Therei s pre-exi
sti
ng No pre- exi
sti
ng No pre-
existi
ng cont ract contract exist
ing
cont ract contract
Bur den Cont ractualparty. Vict
im.Pr ovethef f.: Prosecuti
on.
of a Provet heff.
: 1.damage Accus ed is
proof 1.Exi st
ence of a 2.negl i
gence presumed
contract 3.casual i
nnocent
2.br each connection until the
between contrary is
negli
gence and pr oved.
damagedone

C.CI VILLIABI LI
TYINQUASI -DELI CI
Tvs.DELI CIT
Diff
erence Quasi-delict Del
i
ct
Li
abil
ityofempl oyer Solidary Subsidiar
y
Reservat i
onr equir
ement Ci vilaspectoft hequasi Ci vi
laspectisi
mpliedly
deli
ct i s i
mpl i
edly i
nsti
tuted wi
th cr
iminal
i
nstituted with criminal acti
on
action,butunder2000
Crimpr o Rul es i t i s
i
ndependent and
separ ate
Eff
ectofj udgementof Notabart orecoverci vi
l Notabart or
ecovercivi
l
acquitt
ali n a cr i
minal damagesEXCEPTwhen damages
case i nvolving same j udgement pr onounces
act/
omi sion thatthenegl i
gencef rom
which damage ar ise is
non- exist
ence

D.WHATMUSTBEPROVED

1
.Negl i
gence-i nact
ionf
orquasi-
deli
ct,pl
aint
if
fmustpr
ovenegl
igenceof
defendant
Except i
on:
a.Incaseswher enegl
i
genceispresumedori mput
edbyl
aw-thisisonl
y
rebuttabl
e/pr
esumpt
ionj
uri
stant
um.

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 b.Princi
pleofr esi
psaloquit
ur(thethi
ngspeaksf orit
sel
f)-gr
oundedon
the dif
fi
cultyin pr
oving t
hrough compet entevi
dence,publi
c pol
icy
considerat
ions
2.Damage/injury
3.Causalconnectionbetweennegligenceanddamage( t
obeact i
onabl
e)-
Defendant’
bytheplai
ntif
ftoenableplai
nti
fft
orecover.Thus,i
fplai
nti
ff
’
i
sthecauseoft heinj
uryther
ecanbenor ecovery.

I
fplai
nti
ff
’ - he i
s consi
dered par
tl
y
r
esponsi
bleonl
y,mayst
il
lrecoverf
rom def
endantbutmustbereducedby
t
hecourt
sinpropor
ti
ont
ohi sownnegli
gence.

Conceptofproximat
ecause-theadequateandeffi
cientcausewhichin
the nat
uralorderofevents and underthe part
icul
arcircumst
ances
surr
oundingt
hecase,woul
dnatural
l
yproducetheevent.

E.DEFENSES:

1
.Cont ri
but
orynegl i
gence-the t
heoryher eisthatthe pl
aint
if
fwasalso
negli
genttogetherwi
ththedefendant;t
oconstit
uteadefense,pr
oxi
mate
causeofinjur
yordamagemustbet henegl
igenceofdef
endant.

2.Concurrentnegl
i
gence-thetheoryherei
sthatbothpar
ti
esar
eequall
y
negl
igent;t
hecourt
swil
ll
eavethem ast
heyar
e;t
herecanbenor
ecover
y

3.Doctri
neoflastclearchance-eventhoughaper son’
placedhiminaposi ti
onofperi
landani nj
uryresults,t
heinjur
edisentit
led
torecoverifthedefendantthroughtheexerci
seofr easonablecareand
prudencemi ghthaveavoidedinj
uri
ousconsequencest otheplai
nti
ff
.This
defenseisavail
ableonlyinanact i
onbythedr iverorowneroft heother
vehicl
einvol
ved.

El
ement s
:
a.Aplaint
if
fwasinaposi ti
onofdangerbyhi sownnegl igence
b.Defendantknewofsuchposi t
ionofthepl
aint
if
f
c.Defendanthad the leastclearchance to avoidt he accidentby
exerci
se ofordinar
y car e butfail
ed t
o exercise such lastclear
chanceand
d.Accidentoccur
redaspr oximatecauseofsuchf ail
ure

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 Whomayi
nvoke:pl
aint
if
f

I
nappl
i
cabl
eto:
1.Joi
nttort
feasors
2.Defendantsconcurrent
lynegl
i
gent
rd
3.Asagainst3 per sons

4.EMERGENCYRULE-aper sonisnotexpect edtoexerci

sethesamedegr ee
ofcarewhenhei scompell
edt oactinsti
ncti
vel
yunderasuddenper il
because
aper sonconfr
ontedwit
hasuddenemer gencymaybel eftwithnot i
mefor
thoughtandmustmakeaspeedydeci sionuponimpulseorinst
inct
*appl
i
cableonl
ytosituati
onsthatar esuddenandunexpectedsuchas
to depri
veactorofallopportuni
tyfordel
iber
ati
on

*butact
ionmustst
il
lbej
udgedbyt
hest
andar
doft
heor
dinar
ypr
udent
man

*absenceoff
oreseeabi
l
it
y

5.DOCTRI NEOFASSUMPTI ONOFRI SK- Vol enti

nonfiti
njuri
a
*Intenti
onalexposuretoaknowndanger
*One who vol untar
il
yassumed the r
iskofan i
njuryf r
om aknown
dangercannotr ecoverinanact
ionf
ornegli
genceoraninj
uryi si
ncurr
ed
*plainti
ff
’ (
bylaw/contr
act/
nat
ureofobl i
gat
ion)has
eraseddefendant’
*Appliestoallknowndanger

6. DUE DI LI
GENCE-di li
gencei srequi
redbyl
aw/
cont
ract
/dependson
ci
rcumst
ancesofper
sons,places,t
hings
.

7. FORTUI TOUSEVENT-noper sonshal

lberesponsi
bleforthoseevent
s
whichcannotbeforeseen,orwhi
chthr
oughfor
eseenwereinevi
table
Except
ion:assumpt
ionofrisk

8. DAMNUM ABSQUEI NJURI

A-apr i
nci
plet
hatinvolvesdamagewi
thout
i
njur
y,t
her
efor
enol
i
abi
l
it
yisi
ncur
red;t
her
eisnolegali
njury

9. LAW-speci
fi
cpr
ovi
si
onofl
aw.

10. EXERCI
SE OF DILI
GENCE OF GOOD FATHER OF FAMI
LY I
N
SELECTI
ONANDSUPERCVISI
ONOFEMPLOYEES

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 1
1. PRESCRI
PTI
ON

I
njuryt
orightofpl
aint
if
f/quasi
del
ict–4years
Defamati
on -1year
Whennos peci
fi
cprovi
sion,mustbecount
edf r
om t
hedayt
heymaybe
br
ought

12. PROSCRI PTI

ONAGAI NSTDOUBLERECOVERY-Responsi bi
l
it
yf orf
ault
ornegli
genceunderquasidel i
ctisentir
elysepar
ateanddisti
nctfrom civi
l
acti
onari
singfr
om theRPCbutpl ai
nti
ffcannotr
ecoverdamages2xforsame
actoromissi
onofthedefendant
.

1
3. ACTOROMI
SSI
ONI
SNOTTHEPROXI
MATECAUSEOFTHEDAMAGE

1
4. OTHERGROUNDS-MOTI
ONTODI
SMI
SS

a.Lackofj uri
sdict i
onoverper sonofdefendant
b.Lackofj ur
isdictionoversubj ectmatter
c.Venuei mproper l
ylai
d
d.Plai
nti
ffhasnol egal capacitytosue
e. Thereisanot heract ionpendi ngbet weensamepar t
iesf orsame
cause
f.Causeofact i
oni sbarredbypr i
orj
udgment/ statuteofli
mi t
ati
ons
g.Pleadingasser ti
ngcl ai
m statesnocauseofact i
on
h. Clai
m setf orthi n pleading hasbeen pai d,wai ved,abandoned,
exti
nguished
i
.Claimisunenf or ceableundert heprovisionofstatuteoffraud
j
.Condi t
ionprecedentf orf i
ll
i
ngcl ai
m hasnotbeencompl i
edwi t
h

F.PERSONALLI
ABLEQUASI
-DELI
CT

1
.TORTFEASOR-whoeverbyactoromissi
oncausesdamagetoanot
her
,
t
herebei
ngnof
aul
tornegl
igencei
sobli
gedt
opayf ort
hedamagedone
(
art21
76)

2.PERSONS VICARI
OUSLY LI
ABLE- t
he obl
i
gat
ion i
mposed i
n 21
76 i
s
demandabl
e notonl
yforone’

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 per
sonsf
orwhom onei
sresponsi
ble(
art21
80)

VICARIOUSLIABI
LITY-l
awonimput
ednegl
i
gence;apersonwho
hi
msel fi
snotgui
lt
yofnegl
igencei
smadeliabl
eforconductof
another

Reason:
1.Publi
cpol
i
cy-deeperpocket
/capaci
tyt
opay

2.Vi
olat
ionofdut
yonaccountofr
elat
ionshi
p-hei
snegl
i
gent

a.
) PARENTS-t hefat
her
,andincaseofhi
sdeat
hori
ncapaci
tyt
hemot
her
ar
eresponsi
blef
orthedamagecausedby:

i
. Mi
norchi
l
dren

i
i
. Whol
i
vei
nthei
rcompany

Note:Fatherandmot hershal
lj
oint
lyexercisepar
ental
author
it
yovercommon
chi
ldr
en.Incaseofdisagreement,f
at her’ (ar
t211)
.
b.) GUARDI ANS-guar di
ansareliablefordamagescausedbytheminoror
i
ncapacit
atedpersonswhoar e

i
. Undert
hei
raut
hor
it
yand

i
i
. Li
vei
nthei
rcompany

c.
) OWNERS AND MANAGER OF ESTABLI SHEMENT/ENTERPRISE-
owner
sand managersofest
abli
shmentorent
erpri
se ar
eresponsi
blefor
damagescausedbyt
hei
rempl
oyees

i
.I ntheser
viceofthebr anchesinwhi
chhelatt
erar
eemployed
OR
i
i.inoccasi
onoft hei
rfunction
d.
) EMPLOYERS-empl oyersshallbeli
abl
efordamagescausedbyt
hei
r
empl
oyeesandhouseholdhelpers

i
. Act
ingw/
int
hescopeoft
hei
rassi
gnedt
ask

i
i
. eventhought
heformerarenotengagedinanybusinessor
i
ndustry(
unli
keinRPC-subsi
diar
yliabi
l
it
yofemployerat
tachesincase
ofinsol
vencyofempl
oyerforaslongastheemployeri
sengagedi n

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 business/
indust
ry)
Defensesavai
labl
etoempl oyers:
i
. Exer
ciseofduedi
l
igenceinel
ecti
onandsuper vi
sionofempl
oyees

i
i.act
/omissi
onwasmadeout sideworki
nghour sandinviol
ati
onof
company’
e.
) STATE-t hestat
eisresponsibl
ewheni tactst
hroughaspeci alagent
,
butnotwhent hesamei scausedbyanof f
icialt
owhom t askdoepr operl
y
pert
ainsinwhichcaseart2176isappli
cabl
e

f.
) SCHOOLS, ADMI NI
STRATOR, TEACHER- teacher
s or heads of
establ
i
shment
sofar
tsandt
radesshal
lbel
i
abl
efordamagescausedbythei
r:

i
. Pupi
l
s,st
udent
sandappr
ent
ices

i
i.asl ongast heyr emai nintheircustody
Note:
Fami l
ycode,ar t21 8-The school ,it
sadmi nist
rati
on and t eacher sort he
i
ndividual,entit
yori nstituti
onengagedi nchi
ldcar eshallhavespeci alparental
authorit
yand r esponsi bil
ity overt he minorchi ld undert heirsuper vi
sion,
i
nstructionorcust ody(aut hori
tyandr esponsibil
ityshallapplyt oal laut hori
zed
acti
viti
eswhet heri nside orout side the premi sesort he school ,ent it
y,or
i
nstit
ution).
Fami l
ycode,ar t21 9-t hosegivent heauthor i
tyandr esponsi bili
tyshal lbe
soli
dar il
yandpr inci
pal lyli
abl
ef ordamagescausedbyact /omi ssionoft he
unemanci patedmi nor;parents,j
udici
alguar dianorper sonexer ci
sing
subst i
tut
epar entalaut hori
tyoversaidmi norshal lbesubsi diaril
yl i
able.

DIFFERENCEBETWEENARTI CLES21 8AND21 80

ART21 8 ART2180
School,admi n,teachersengagedi nchil
d Teachers,headofest abli
shmentinArts
carearemadeexpr essl
yli
abl
e andTr adesar emadeexpr essl
yli
abl
e
Liabi
li
ty ofschool ,admi n,t eachersis Nosuchexpr esssoli
darynorsubsidi
ary
soli
daryandpar ent
sar emades ubsi
diar
y l
iabil
i
tyisstated
l
iable
Studentsinvolvedmustbemi nor Studentsinvolved notnecessar
il
yminor

I
ssues:
1
.Whet
herornotschool
sar
eli
abl
e?-

Genrul
e:school
sarenotl
i
abl
easpart
lydef
endant
sexcept
ion:
a.
)FC218-school
sareexpr
essl
ymadel
iabl
e

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 b.
)St
.Fr
anci
scaser
ule-school
’

c.
)PSBAcaser
uli
ng-s
chool
hasl
i
abi
l
it
ybasedoncont
ract

Sothat-
a.
) I
fcul
pri
tisat
eacher
,fol
l
owSt
.Franci
srul
i
ng(
sueschool
asempl
oyer
)

b.
) I
fcul
pri
tisast
ranger
,fol
l
owPSBAr
uli
ng(
sueschool
basedoncont
ract
)

c.
) I
fcul
pri
tisast
udent
-appl
y21
80

2.Does21 80 appl
yt os choolofArtsandTradesonl
y?No.appli
estoall
i
ncludi
ngacademi cinsti
tut
ionperwei
ghtofj
uri
spr
udencebasedonobi
ter
ofJust
iceJBLReyesi ntheExcondecase

3.Baseofliabi
l
it
yoft
eacher
-pr
inci
pleofl
ocopar
ent
is(
standi
npl
aceof
parent
s)

4.Sol
ongast
heyr
emai
nint
hei
rcust
ody

 Notli
ter
alanymore;before:boar
dingandlivi
ng wi
tht
eacherduet
o
pecul
i
archaract
eri
sti
coftr
adeandar t
sschool

 Aslongast heyareinthepr
otect
ivesuper
visor
ycapaci
tyoft
eacher
-
speci
alpar
entalaut
hori
ty

3. PERSONSEXPRESSLYMADELI
ABLEBYLAW (
evenwi
thoutf
aul
t)

a.PROSSESSOROFANANI
MALORWHOEVERMAKESUSEOFTHEM
EVENIFTHEANI
MALI
SLOSTORESCAPED

Except
:
1
.For
cemaj
eur
e

2.Faul
toft
hei
njur
edordamagedper
son

b.OWNEROFMOTORVEHI CLE-inmot
orvehi
cl
emi
shap,t
heowneri
s
sol
i
dar
il
yli
abl
ewi
tht
hedr
iveri
f:

1
.Hewasi
nthevehi
cl
eand

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 2.Coul
dhavet
hroughduedi
l
igencepr
event
edt
hemi
sfor
tune

c.MANUFACTURERS&PROCESSORSOFFOODSTUFFS,DRI NK,TOI LET

ARTICLES & SIMILAR GOODS-t heyare l i
ablefordeath and i
njuri
es
caused by any nox i
ous or harmfulsubstances used alt
hough no
contr
actual
rel
ati
onsexist
sbet
weent hem andtheconsumers

d. DEFENDANT I N POSSESSI ON OF DANGEROUS WEAPONS OR

SUBSTANCESSUCH ASFI REARMSANDPOI SON-t her
eisapr i
mafaci
e
presumpti
on ofnegli
gence on t
he par
tofdefendantifdeat
h ori
njur
y
resul
tsf
rom suchpossessi
on

Except
ion:The possessi
on or use t
her
eof i
sindi
spensabl
e i
n hi
s
occupati
onorbusi
ness

e.PROVINCES,CI TI
ESANDMUNI CIPALI
TIES-shal
l beli
abl
efordamages
fort
hedeathorinjur
iessuff
eredbyanypersonbyr easonofthedef
ecti
ve
condi
ti
on ofroads,street
s,bri
dges,publ
ic bui
ldi
ngsand ot herpubli
c
worksundert
heircontr
olorsuper
visi
on

f. PROPRI
ETOR OF BUI LDI
NG OR STRUCTURE- r
esponsi
blef
ort
he
damagesresul
ti
ngf
rom anyofthef
f:

i
. Totalorpar
ti
alcol
lapseofbui
l
dingorst
ruct
urei
fduet
olackof
necessar
yrepai
rs

i
i
. Explosi
onofmachinerywhichhasnotbeentakencaredofwith
due dil
igence,and t
he i
nfl
ammati
on ofexplosi
ve subst
ances
whichhavenotbeenkeptinasafeandadequatepl
ace

i
i
i. By excessi
ve smoke,whi
ch may be har
mfult
o per
sons or
pr
operty

i
v. Byf al
l
ingoft
reessi
tuat
edatornearhi
ghwaysorl
anes,i
fnot
causedbyfor
cemajeure

v. By emanati
ons fr
om t ubes,canal
s,sewers ordeposit
s of
i
nfect
iousmatt
erconst
ructedwit
houtpr
ecaut
ionssui
tabl
etothe
pl
ace

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es Page1
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 g. ENGI NEER,ARCHI TECTOR CONTRACTOR-i fdamageofbui l
dingor
st
ruct
ureiscausedbydef ecti
nconst
ruct
ionwhichhappenswithi
n15years
fr
om const
ruct
ion;act
ionmustbebr
oughtwithi
n10yearsofcol
l
apse

h. HEAD OFFAMI LYTHATLI VESIN A BUI

LDING ORPARTTHEREOF-
l
iabl
efordamagescausedbyt
hingsthr
ownorfal
li
ngfr
om t
hesame

G. SPECI
ALTORTS

1
.Ar
t19,20,21(
cat
ch-
all
provi
si
on)

a.ABUSEOFRI
GHTS(
Art1
9)

ELEMENTS:
i
. Ther
eisal
egal
rightordut
y

i
i
. Whi
chi
sexer
cisedi
nbadf
ait
h

Fort
hesol
eint
entofpr
ejudi
cingori
njur
inganot
her

b.GENERALSANCTI
ON(
Art
.20)

- Forall
otherpr
ovi
si
onsofl
awwhi
chdonotespeci
all
y
provi
dethei
rownsanct
ion

ELEMENTS:
i
. I
ntheexer
ciseofhi
slegal
rightordut
y

i
i. Wil
l
ful
l
yornegli
gent
lycausesdamaget
oanot
her
c.CONTRABONUSMORES(Art21)

ELEMENTS:
i
. Ther
eisanactwhi
chisl
egal

i
i
. Butwhi
chi
scontr
aryt
omor
als,goodcust
om,publ
i
cor
der
orpubl
i
cpol
icy

i
i
i. Andi
tisdonewi
thi
ntentt
oinj
ure

2. UNJUSTENRI
CHMENT-Ar
ts.22,23,21
42&21
43

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3. OSTENTATI
OUSDI SPLAYOFWEALTH-Ar t
.25;t
hought
lessextr
avagancef
or
pl
easur
eordispl
ayduri
ngaper
iodofpubl
i
cwantoremer gency

4. VI
OLATI
ONOFRI
GHTOFPRI
VACYANDFAMI
LYRELATI
ONS

Art.26-ever ypersonshal
lrespectthedignit
y,per
sonal
it
y,pri
vacyandpeace
ofmi ndofhisneighborsandot herpersons.Theff
.actsthoughtheymaynot
constit
uteacr i
minaloff
ense,shallproduceacauseofact i
onf ordamages
,
preventi
onandot herrel
i
ef:
i. pr
yingint
ot hepri
vacyofanother’

i
i
. meddli
ng wi
th ordi
stur
bing t
he pr
ivat
eli
fe orf
ami
l
yrel
ati
onsof
anot
her

i
i
i. i
ntr
igui
ngt
ocauseanot
hert
obeal
i
enat
edf
rom hi
sfr
iends

i
v. vexi
ng orhumil
i
ati
ng anot
heronaccount ofhisrel
igiousbel
ief
s,
l
owlystat
ioni
nli
fe,pl
aceofbir
th,physi
caldef
ect
,orotherper
sonal
condi
ti
on

5. DERELI
CTI
ONOFOFFI
CIALDUTYOFPUBLI
COFFI
CERS

Maybebroughtbyanyper
sonsuffer
ingfr
om materi
alormorall
oss
becauseapubli
cser
vantr
efusesofnegl
ects,wi
thoutj
ustcauset
o
per
for
m hi
soffi
cial
duty(ar
t27)
.

REQUISITES:
a.Def
endantisapubl
icoff
icerchar
gedwi
tht
heper
for
manceof
adutyi
nfavoroft
heplai
ntif
f

b.Heref
usedorneglect
edwi
thoutj
ustcauset
oper
for
m such
dut
y(mini
ster
ial
)

c.Plai
nti
ffsust
ainedmater
ialormor
all
ossasconsequenceof
suchnon-per for
mance

d.Theamountofsuchdamages,i
fmat
eri
al

6.UNFAIR COMPETI TI
ON- unfai
r competi
ti
on in agri
cult
ural,commercial
,or
i
ndust
ri
alent
erpr
isesorinlaborthroughtheuseoff orce,int
imi
dati
on,decei
t.
Machi
nati
on,orotherunj
ust
,oppressi
veorhi
gh-handedmet hod(Art28)

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7.MALI
CIOUSPROSECUTI
ON

ELEMENTS:
a.Thatt
hedef
endantwashi
msel
fthepr
osecut
or/hei
nst
ignat
edhi
s
commencement

b.Thati
tfi
nal
l
yter
minat
esi
nhi
sacqui
tt
al

c.Thati
nbr
ingi
ngi
tthepr
osecut
oract
edwi
thoutpr
obabl
ecauseand

d.Thathewasact
uat
edbyl
egal
mal
i
ce,t
hati
s,byi
mpr
operandsi
nist
er
motive

8.VI
OLATI
ONOFRI
GHTSANDLI
BERTI
ESOFANOTHERPERSON

9.NUI
SANCE

a. DEFINI
TION-anyactof,omi
ssi
on,est
abl
i
shment
,condi
ti
onofpr
oper
ty,
oranyt
hingel
sewhich:

i
.inj
uresorendanger
stheheal
thorsaf
etyt
oot
her
s,or

i
i
.annoysorof
fendst
hesenses
,or

i
i
i.shock,def
ies,ordi
sregar
dsdecencyormor
ali
ty,or

i
v.obst
ruct
sorint
erf
ereswi
ththef
reepassageofanypubl
i
chi
ghwayor
st
reet
s,oranybodyofwater

v.hi
nder
sori
mpai
rsuseofpr
oper
ty

b. KI
NDS:

NUISANCEPER SE-denouncedasnui
sancebycommonl
aw orby
st
atut
e

NUISANCE PER ACCI DENS- t

hose whi
ch ar
ei nt hei
rnature not
nui
sances,butmaybecomesobyreasonoft
hei
rlocal
i
ty,sur
roundi
ngs,

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 ort
hemanneri
nwhi
cht
heymaybeconduct
ed,managed,et
c.

PUBLI
C-af f
ectsacommuni
tyornei
ghbor
hoodoranyconsi
der
abl
e
numberofpersons

REMEDIESAGAI NSTPUBLI
CNUISANCES:
1.Prosecuti
on under t
he RPC or any l
ocal
ordinance

2.Ci
vi
lact
ion

3.Abat
ement
,wi
thoutj
udi
cial
proceedi
ng

WHOMAYAVAI
LOFREMEDI
ES:
1
.Publ
i
cof
fi
cer
s

2.Pri
vateper
sons-i
fnui
sancei
sspeci
all
yinj
uri
oust
ohi
msel
f,
t
hef f
.st
epsmustbemade:

i
. demandbef ir
stmadeuponownerorpossessorof
t
he propertytoabatet
henuisance
i
i. thatsuchdemandhasbeenr ej
ected
i
ii
. t hatthe abatementbe appr oved by the dist
ri
ct
heal
th off
icerandexecutedwi t
ht heassist
anceof
l
ocalpol i
ce

i
v. t hatt
he val
ue ofdest
ruct
ion does notexceed
P3,
000

PRI
VATE-onet hatisnotincl
udedinthef
oregoi
ngdef
ini
ti
on;af
fectan
i
ndi
vidualoral
imit
ednumberofi ndi
vi
dual
sonly
REMEDI ESAGAI NSTPRI
VATENUISANCES:
(1)Ci
vi
lact
ion

(
2)Abat
ement
,wi
thoutj
udi
cial
proceedi
ngs

WHOMAYAVAI
LOFREMEDI
ES:
(
1)Publ
i
cof
fi
cer
s

(
2)Pri
vateper
sons
-ifnui
sancei
sspeci
all
yinj
uri
oust
ohi
msel
f;
t
hef f
.st
epsmustbemade:

i
. demandbefi
rstmadeuponownerorpossessorof
t
heproper
tyt
oabatet
henuisance

Ci
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 i
i
. Thatsuchdemandhasbeenr
eject
ed

i
i
i. thatt
heabatementbeapprovedbyt
hedistr
ict
healt
hoffi
cerandexecut
edwitht
heassi
stanceof
l
ocalpol
ice

i
v. thattheval
ueofdest
ruct
iondoesnotexceed
P3,000

c.DOCTRI NEOFATTRACTIVENUI SANCE-acl assofcaseswi thi

nt he
generalrul
ethatonei
sli
abl
efort hei
njur
yresult
ingt oanot
herfrom
fai
lur
e to exerci
se t
he degr
ee of car e commi serat
e with the
cir
cumstances

o The at
tract
iveness of the premises or of the dangerous
i
nstr
umental
itytochildr
enoftenderyearsistobeconsi
deredas
animpl
iedinvitat
ion,whichtakesthechil
drenwhoaccept edit
outoft
hecat egoryofat r
espasserandputthem i
nthecategory
of i
nvi
tees towar ds whom the owner of the premises or
i
nstr
umental
ityowest hedutyofordi
narycare

x.DAMAGES

Ki
ndsofDamages:(
MENTAL)
MORAL
EXEMPLARY
NOMINAL
TEMPERATE
ACTUAL
LI
QUIDATED

1
.ACTUAL/
COMPENSATORY-adequat
ecompensat
ionf
or

a)Theval
ueofl
osssuf
fer
ed

b)Pr
ofi
tswhi
chobl
i
gef
ail
edt
oobt
ain

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72
 Except
ion:
a. provi
dedbyl aw
b. bysti
pulat
ion

WHATMUSTBEDONETOCOLLECTACTUALDAMAGES:
1
.)Pl
eadoral
l
eget
hel
oss

GENERAL DAMAGE- nat ural

,necessar y and l
ogicalconsequences ofa
part
icul
arwrongfulactwhichresul
tini
njury;neednotbespecifi
cal
lypleaded
because the l
aw itsel
fimpli
es orpresumes t hatthey r
esult
ed from the
wrongfulact

SPECI
ALDAMAGES-damageswhi charethenat
ural,butnott
henecessar
y
andi
nevi
tabl
eres
ultoft
hewr
ongf
ulact
;needtobepleaded

2.
)Pr
ayf
ort
her
eli
eft
hatcl
aimf
orl
ossbegr
ant
ed

3.
)Pr
ovet
hel
oss

WHENLOSSNEEDNOTBEPROVED:
1
.)Liqui
dateddamagespr evi
ousl
yagr
eedupon,li
quidateddamages
taketheplaceofact
ualdamagesexceptwhenaddit
ionaldamages
i
ncurred

2.
)Ifdamagesot
hert
hanact
ual
aresought

3.
)Lossi
spr
esumed(
ex:l
ossofachi
l
dorspouse)

4.
)Forfei
tureofbondsinfavoroft
hegover
nmentf
orthepurposeof
promot i
ngpubli
cint
erestorpol
i
cy(
ex:bondf
ortempor
arystayof
al
ien)

CONTRACTSANDQUASICONTRACTS
1.Damagesincaseofgoodf ait
h-
a.Natural
andpr obabl
econsequenceofbr
eachofobl igati
onand
b.Par
tieshavef or
eseenorcouldhaver
easonablyforeseenatti
meobli
gat
ion
wasconst i
tut
ed
2.Damagesincaseofbadf ai
th
a.Iti
ssuf f
ici
entthatdamagesmaybe r easonablyat t
ri
but
ed tot
he non-
per
formanceoft heobli
gati
on

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 CRIMESANDQUASICRI MES
 Defendanti
sliabl
eforalldamagest
hatar
enat ur
alandpr
obabl
econsequenceof
t
heact /
omissi
oncompl ainedof
 Notnecessarythatdamageshavebeenforeseenorcoul
dhavebeenreasonabl
y
f
oreseen

a)VALUEOFLOSSSUFFERED-dest ruct
ionofthings,fi
nesorpenalt
ies,
medical
andhospi
tal
bil
l
s,at
tor
ney’ ,i
nter
ests,costofl
i
gat
ion

Damagesr
ecover
abl
e:
1
.)Medi
cal
andhospi
tal
bil
l
s

2.
)Lossori
mpai
rmentofear
ningcapaci
ty(
incaseofphysi
cal
disabi
l
it
y)

3.
)Damagesf
ordeat
h

a)Mi
nimum amount
:P50,
000

b)Lossofearni
ngcapacit
yunl
essdeceasedhadper manentphysi
cal
di
sabil
i
tynotcausedbydef
endantsothatdeceasedhadnoearni
ng
capaci
tyatt
imeofdeath

c)Support
,ifdeceasedwasobl
i
gedt
ogi
vesuppor
t(f
orper
iodnot
morethan5years)

d)Mor
aldamages

4.
)Att
orney’ -asagener alrul
e,at
tor
ney’ (
othert
hanj
udi
cial
cost
s)arenotr
ecover
abl
e,except
:

a)St
ipul
ati
onbet
weenpar
ti
es

b)Whenexempl
arydamagesar
eawar
ded

c)Whendefendant
’
r
d
3 per
sonsorincurexpens
est
opr
otecthi
sint
erest

d)Mal
i
ciouspr
osecut
ion

e)Cl
ear
lyunf
oundedci
vi
lact
ionorpr
oceedi
ngagai
nstpl
aint
if
f

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vi
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es Page1
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 f
) Defendantactedi
ngr
ossandevi
dentbadf
ait
hinr
efus
ingt
o
sat
isf
yplai
nti
ff
’

g)Legal
suppor
tact
ions

h)Recoveryofwagesofhousehol
dhel
per
s,l
abor
ersandski
l
led
worker
s

i
) Act
ions for i
ndemni
ty under wor
kmen’
employerl
iabi
l
it
ylaws

j
) Separ
ateci
vi
lact
iont
orecoverci
vi
ll
iabi
l
it
yar
isi
ngf
rom cr
ime

k)Whendoubl
ejudi
cial
cost
sar
eawar
ded

5.
)Judi
cial
cost
s

6.
)Int
erest
-di
scr
eti
onar
yonpar
toft
hecour
t

WHENDAMAGESMI
TIGATED:
1
.)Cont
ri
but
orynegl
i
gence

2.
)Incont
ract
s,quasi
-cont
ract
sandquasi
-del
i
ct-

a.Pl
ai
nti
ffhascont
ravenedt
het
ermsofcont
ract

b.Pl
ai
nti
ffder
ivedsomebenef
itasr
esul
tofcont
ract

c.I
n case wher
e exempl
arydamagesaret o be awar
ded,t
hatt
he
def
endantact
edupontheadvi
ceofcounsel

d.Thatt
hel
osswoul
dhaver
esul
tedi
nanyevent

e.Thatsi
ncethefil
ingofact
ion,t
hedef
endanthasdonehi
sbestt
o
l
essenthepl
aint
if
f’

3.MORALDAMAGES-
(PBMF-
MWSS)]

a.Physi
cal
suf
fer
ing

b.Besmi
rchedr
eput
ati
on

c.Ment
alangui
sh

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 d.Fr
ight

e.Mor
alshock

f
. Woundedf
eel
i
ngs

g.Soci
alhumi
l
iat
ion

h.Ser
iousanxi
ety

Notes:
 Senti
mental val
ue of r
eal or per
sonal pr
oper
ty may be
consi
deredinadj
udi
cati
ngmoraldamages

 Thesoci
alandeconomic/
fi
nanci
alst
andi
ngoftheoffenderand
the off
ended par
ty shoul
d be taken i
nto consi
der
ati
on in the
computati
onofmoral
damages

 Moraldamagesi sawardedonlytoenabletheinj
uredpartyto
obt
ainmeans,diversi
onsoramusementsthatwil
lser
vetoall
evi
atethe
moralsuf
fer
inghehasunder gone,byreasonofdefendant’
act
ionand notintended t
o enr
ichacompl ai
nantattheexpenseof
def
endant

I
NWHATCASESMAYMORALDAMAGESBERECOVERED(
enumer
ati
onnot
excl
usi
ve):
a.Cr
imi
nal
off
enser
esul
ti
ngi
nphysical
inj
uri
es

b.Quasi
-del
i
ctscausi
ngphysi
cal
inj
uri
es

c.Seduct
ion,abduct
ion,r
apeorot
heract
sofl
asci
vi
ousness

d.Adul
ter
yandconcubi
nage

e.I
l
legal
orar
bit
rar
ydet
ent
ionorar
rest

f
.Il
l
egal
sear
ch

g.Li
bel
,sl
anderorot
herf
orm ofdef
amat
ion

h.Mal
i
ciouspr
osecut
ion

i
. Act
sment
ionedi
nar
t309oft
heRPCr
elat
ingt
odi
srespectoft
hedead

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vi
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ewNot
es Page1
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 andi
nter
fer
encewi
tht
hef
uner
al

j
. Act
sandact
ionsr
efer
redt
oinar
ts21
,26,27,28,29,30,32,34,and35

k.Thepar
ent
soft
hef
emal
eseduced,abduct
ed,r
apedorabused

l
. Spouse,descendant
s,ascendant
sand br
otherand si
ster
sforact
s
menti
onedinart309

m.Ar
t2220-incasesofwil
l
fuli
njur
ytoproper
tyorbreachesofcont
ract
wher
edefendantact
edf
raudul
entl
yori
nbadf ai
th

3. NOMI NALDAMAGES-adj udicatedinor derthatari

ghtoftheplai
nti
ff
,whi ch
hasbeenvi
olat
edorinvadedbyt hedef endant,maybevi ndicat
edorrecognized,
andnotf
ort
hepurposeofindemnifyingtheplainti
fff
oranylosssuff
eredbyhim
ELEMENTS:
a.Plai
nti
ffhasari
ght

b.Ri
ghtofpl
aint
if
fisvi
olat
ed

c.Pur
posei
snott
oident
if
ybutvi
ndi
cat
eorr
ecogni
zer
ightvi
olat
ed

4. TEMPERATE OR MODERATE DAMAGES- moret

han nominalbutl
essthan
compensat
orywheresomepecuniaryl
osshasbeensuff
eredbuti
tsamountcan’
provedwi
thcer
tai
ntyduetothenat
ureofthecase
REQUISITES:
a.Somepecuniaryl
oss

b.Lossi
sincapabl
eofpecuni
aryest
imat
ion

c.Mustber
easonabl
e

5. LI QUI
DATED DAMAGES-t hoseagr
eeduponbyt
heparti
est
oacontr
act
,to
bepai
dincaseofbr
eachthereof
WHENLIQUIDATEDDAMAGESMAYBEEQUI TABLYREDUCED:
a.Ini
quit
ousorunconsci
onable

b.Par
ti
alori
rr
egul
arper
for
mance

6. EXEMPLARY OR CORRECTI VE DAMAGE- i

mposed by way example or
cor
rect
ionforthepubl
icgood,i
naddit
iont
othemoral
,temperat
e,li
quidat
edt o
compensat
orydamages.

Ci
vi
lLawBarRevi
ewNot
es Page1
77
Ci
vi
lLawBarRevi
ewNot
es Page1
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