UST LAW PRE-WEEK NOTES 2018

apply. Thus, the validity of the divorce will be

PART I – GENERAL PRINCIPLES determined based on the law of the country of which
he is a citizen at the time the valid divorce is obtained
EFFECT AND APPLICATION OF LAWS (Rabuya, 2017).
Publication b. Domiciliary rule applies to stateless persons
Is indispensable in every case, but the legislature may in ‘its 3. Real statutes – Laws on Property
discretion provide that the usual fifteen-day period shall be
shortened or extended (Umali v. Estanislao, G.R. No. 104037, GR: Lex Rei Sitae – Real property as well as personal property
May 29, 1992; Tañada v. Tuvera, G.R. No. L-63915, December is subject to the law of the country where it is situated (Art. 16)
29, 1986). (2001, 2002, 2004, 2007, 2009).
Must be in full or it is no publication at all. (Umali v. Estanislao, XPNS:
G.R. No. 104037, May 29, 1992; Tañada v. Tuvera, G.R. No. L- a. Art. 16(2) NCC – succession as to order of succession,
63915, December 29, 1986). amount of successional rights and intrinsic validity of the
testamentary provisions - governed by national law.
Reason: publication in full satisfies the basic constitutional b. Lex loci voluntatis or lex loci intentionis - contracts
requirement of due process. Without such notice and involving real property but do not deal with title or real
publication, there would be no basis for the application of the rights over the property, the issue being the contractual
maxim ignoratia legis non excusat (Rabuya, 2017). rights and liabilities of parties - governed by the proper
law of the contract.
XPNs to the Publication Requirement: (O-R-L-I) c. Loan - in contracts where real property is given as security
by way of mortgage to secure a principle contract - loan is
1. Municipal Ordinances (governed by the Local
governed by the proper law of the contract while the
Government Code);
mortgage is governed by the lex situs.
2. Rules and regulations which are internal in nature;
d. Validity of the contract to transfer land - while the
3. Letters of Instruction issued by administrative
validity of the transfer of land must be determined by the
supervisors on internal rules and guidelines;
lex situs, the validity of the contract to transfer is
4. Interpretative regulations regulating only the
determined by the proper law of the contract.
personnel of administrative agency.
4. Law governing extrinsic validity of contracts, wills and
XPNs to the XPNs: (D-E-P)
public instruments
Administrative rules and regulations that require
GR: Lex loci celebrationis (Art. 17) – forms and solemnities of
publication: contracts, wills and other public instruments shall be governed
by the laws of the country in which they are executed.
1. The purpose of which is to implement or enforce
existing laws pursuant to a valid Delegation;
XPNs: Philippine law shall apply in the following cases even
2. It diminishes Existing rights of certain individuals.
though performed abroad:
3. Penal in nature
a. Acts are executed before the diplomatic or consular
Conflict of laws
officials of the Philippines.
b. Prohibitory laws concerning persons, their acts or
Application of laws
property, and those which have for their object public
order, public policy and good customs (Art. 17).
1. Penal laws
Renvoi - A procedure whereby a jural matter presented is
GR: Territoriality rule - Penal laws and laws of public security
referred by the conflict of laws rules of the forum to a foreign
and safety shall be obligatory upon all who live or sojourn in
state, the conflict of laws rules of which in turn refers the
the Philippine territory (Art. 14).
matter back to the law of the forum (remission) or a third state
(transmission).Thus, it is clear that renvoi can arise only from
XPNs: Philippine penal laws will not apply by virtue of:
conlict rules and not from internal rules.
a. Treaty stipulations
Double Renvoi - It is what occurs when the local court, in
b. Principles of Public International Law
adopting the foreign court theory, discovers that the foreign
c. Laws of Preferential Application (e.g. Ambassadors,
court accepts the renvoi.
Ministers)
d. International agencies enjoying diplomatic immunity
Transmission - It is the process of applying the law of a foreign
state through the law of a second foreign state. It is not the
2. Status laws
same as renvoi because renvoi involves two laws while
transmission involves three laws.
GR: Nationality rule (Lex Nationali) - Laws relating to:
a. Family rights and duties
HUMAN RELATIONS
b. Status and condition
c. Legal capacity of persons are binding upon citizens of
Elements of Abuse of Right:
the Philippines even though living abroad (Art. 15)
(1999, 2003, 2004, 2005, 2009)
1. There is a legal right or duty;
XPNs:
2. Such duty is exercised in bad faith;
a. In case of divorce obtained validly by an alien
3. It is for the sole intent of prejudicing or injuring another;
pursuant to the rules that governs his country, the
4. NOTE: The absence of good faith is essential to abuse of
Filipino spouse shall be considered also as divorced
right (Elizabeth Diaz v. Georgina Encanto, G.R. No. 171303,
(Van Dorn v. Romillo, Jr., G.R. No. L-68470, October 8,
January 20, 2016).
1985). The divorce decree must capacitate foreigner
to remarry, otherwise, the Filipino cannot remarry.
Article 19, 20 and 21 in the enforcement and sanctions of
abuse of right
Once it is proven however that a party was no longer
a Filipino citizen when he obtained the divorce from
his Filipino spouse, the ruling in Van Dorn would also

1
 CIVIL LAW

While Art. 19 lays down the rule of conduct for the government None. Art. 38 on restrictions
of human relations, it does not provide a remedy. Generally, an Limitation and Art. 39 of the NCC
action for damages under either Art. 20 or Art. 21 would be on
proper. Art. 21 deals with acts contra bonus mores or contrary modifications/limitatio
to good morals and presupposes loss or injury, material or ns on the capacity to
otherwise, which one may suffer as a result of such violation. act.
Under Arts. 19 and 21, the act must be intentional (Rabuya,
2006). MARRIAGE (FAMILY CODE)

Furthermore, Article 20 speaks of the general sanction for all Requisites

other provisions of law which do not especially provide for
their own sanction. Essential Formal (C-A-L)
1. Legal capacity of the 1. Marriage
Article 21 on the other hand, speaks of act which is legal but is contracting parties Ceremony
contrary to morals, good custom, public order or public policy who must be a male 2. Authority of the
and is done with intent to injure. and a female; Solemnizing
2. Consent freely given Officer
Elements of an action under Art. 21, NCC (Contra Bonus in the presence of the 3. Valid Marriage
Mores) (1996, 1998, 2006, 2009) solemnizing officer License (FC, Art.3)
(FC, Art. 2).
1. There is an act which is legal;
2. Such act is contrary to morals, good customs, public order Requisites for legal capacity of the parties to marry (ASL)
or policy;
3. It is done with intent to injure. 1. Age – at least 18 years of age
2. Sex – between male and female
Accion In Rem Verso (NCC, Art. 22) 3. Lack of legal impediment to marry (Art. 37 & 38)

It is the remedy for unjust enrichment.It is an action for Marriage Ceremony

recovery of what has been paid or delivered without just cause
or legal Ground.
Itcan only be availed of if there is no other remedy to enforce it
based on contract, quasi-contract, crime or quasi-delict.
Requisites (E-L-W-A)
1. The defendant has been Enriched;
2. The plaintiff has suffered a Loss;
3. The enrichment of the defendant is Without just or legal
ground; and
4. The plaintiff has no other Action based on contract, quasi-
contract, crime or quasi-delict.
Accion in rem verso v. Solutio Debiti
In accion in rem verso, it is not necessary that there should have
been mistake in the payment unlike in solution indebiti where
mistake is an essential element (Rabuya, 2006).
Unjust Enrichment
The main objective of the principle against unjust enrichment is
to prevent one from enriching himself at the expense of another
without just cause or consideration. (Locsin v. Mekeni Food
Corporation, G.R. No. 192105, December 9, 2013, DEL. CASTILLO,
J.)
No particular form of ceremony or religious rite for
solemnization of the marriage is required by law (FC, Art. 6).
AS LONG AS the marriage takes place with the:
1. Personal appearance of the contracting parties before
the solemnizing officer;
NOTE: There is no marriage ceremony if what
transpired was a mere private act of signing a
marriage contract by the contracting parties, without
the presence of the solemnizing officer (Morigo v.
People, G.R. No. 145226, February 6, 2004)
2. Their personal declaration that they shall take each
other as husband and wife; and
3. In the presence of not less than 2 witnesses of legal
age.
The declaration of consent need not be vocally expressed. It can
be shown by other manifestations or signs of approval and
consent. It is the agreement itself, and not the form in which it
is couched, which constitutes the contract (Sta. Maria, 2010).
Authority of the solemnizing officer
Marriage may be solemnized by;

PART II– PERSONS AND FAMILY RELATIONS 1. Under ordinary circumstances:

PERSONS AND PERSONALITY (CIVIL CODE) a. Incumbent judiciary member – Provided, it is

solemnized in the place where the court exercises
JURIDICAL CAPACITY TO ACT jurisdiction.
CAPACITY
Fitness to be the Power to do acts with NOTE: Where a judge solemnized a marriage
Definition subject of legal legal effect. (NCC, Art. outside his court’s jurisdiction, this is a
relations. (NCC, 37) mere irregularity in the formal requisite,
Art. 37) which while it may not affect the validity of
Inherent (co- Acquired through the marriage, may subject the officiating
Acquisition exists with the fulfilment of specific official to administrative liability(Rabuya,
natural person), legal activities. 2017).
therefore, it is
not acquired. b. Priest, rabbi, imam or minister of any
church/religious sect duly authorized – Provided at
Loss Only through Through death and
death. other circumstances least one of the parties belongs to such church or
religious sect.
In relation Can exist w/o Cannot exist w/o
to each capacity to act. juridical capacity.
other

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 UST LAW PRE-WEEK NOTES 2018
c. Consul general, consul or vice-consul – Provided
both parties are Filipinos and marriage takes place
abroad in the country where the consul holds office.
d. Mayors (Arts. 444 and 445 of LGC) – including
“Acting Mayor”
NOTE: From the time of the effectivity of the Family
Code on August 3, 1988 up to the time of the
effectivity of the Local Government Code on January 1,
1992, mayors do not have the authority to solemnize
marriage.
2. Marriages in articulo mortis:
a. Ship captain or airplane chief – provided the
marriage is performed:
i. During voyage, even during stopovers
ii. Between passengers or crew members
(Art.31)
NOTE: Such authority may be exercised not only
while the ship is at sea or the plane is in flight but
also during stop-overs at ports of call (Rabuya,
2017).
b. Military commander of a unit who is a
commissioned officer – provided the marriage is
performed:
i. In the absence of a chaplain;
ii. Within the zone of military operation;
iii. Between members of the armed forces or
civilians
Valid marriage License (Art. 3)
GR:All contracting parties to a marriage must obtain a valid
marriage license.
XPN: The following are exempt from the marriage license
requirement: (M-A-R-C-O)
1. Marriages among Muslims or members of ethnic cultural
communities – Provided they are solemnized in
accordance with their customs, rites or practices (FC, Art.
33);
2. Marriages in Articulo mortis
a. In case either or both of the contracting parties
are at the point of death FC, (Art. 27);
b. Solemnized by a ship captain or airplane pilot
(FC, Art. 31);
c. Within zones of military operation (FC, Art. 32)
3. Marriages in Remote places (FC, Art. 28)
Remote Place - no means of transportation to enable the
party to personally appear before the local civil registrar
(Rabuya, 2017).
4. Marriages between parties Cohabiting for at least 5 years
and without legal impediment to marry each other (FC, Art.
34);
5. Marriages solemnized Outside the Philippines where no
marriage license is required by the country where it was
solemnized. FC, (Art. 26, par. 1)
Other Requirements in securing Marriage License
if local: in the local civil registrar of
the city or municipality where either
Place of contracting party habitually resides
issuance: (FC, Art. 9)
if abroad: in the office of the
consular officials (FC, Art. 10)
Period of 120 days from the date of issue
effectivity: (valid in any part of the Philippines)
3
NOTE: the license shall be deemed
automatically cancelled at the
expiration of said period if the
contracting parties have not made
use of it (FC, Art. 20).
Parental consent and certificate of
Other marriage counselling : if any party is
requirements: aged 18 to below 21 y/o
Parental advice and certificate of
marriage counselling : if any party is
aged 21 to 25 y/o
Parental Consent and Advise
ADDITIONAL
AGE
REQUIREMENTS
18 to 21 years old Parental consent and
Marriage counseling
22 to 25 years old Parental advice and
Marriage counseling
Absence of the additional requirement of parental advice does
not make the marriage void or voidable. It only affects the
release of the marriage license to be postponed until (3) three
months from the complete publication of the application.
Requisites for the 5-year cohabitation as an exception to
the marriage license requirement (2002, 2008)
The requisites are: (5D PAS)
1. Living together as husband and wife at least 5 years before
the marriage.
The 5 year period must be characterized by:
a. Exclusivity – the partners must live together
exclusively, with no other partners, during the whole
5-year period.
b. Continuity – such cohabitation was unbroken.
NOTE: The period is counted from the date of celebration
of marriage. It should be the years immediately before the
day of the marriage.
2. No legal impediment to marry each other During the
period of cohabitation.
3. Fact of absence of legal impediment must be Present at the
time of the marriage.
4. Parties must execute an Affidavit that they are living
together as husband and wife for 5 years and that they do
not have any impediment to marry
5. Solemnizing officer must execute a Sworn statement that
he had ascertained the qualifications of the parties and
found no legal impediment to their marriage (Manzano v.
Sanches, .AM. No. MTJ-00-1329, March 8, 2001).
---
Q: On Valentine's Day 1996, Ellas and Fely, both single and
25 years of age, went to the city hall where they sought out
a fixer to help them obtain a quickie marriage. For a fee,
the fixer produced an antedated marriage license for them,
Issued by the Civil Registrar of a small remote
municipality. He then brought them to a licensed minister
in a restaurant behind the city hall, and the latter
solemnized their marriage right there and then. (1996,
2008 BAR)
a. Is their marriage valid, void or voidable? Explain.
A: The marriage is valid. The irregularity in the issuance of a
valid license does not adversely affect the validity of the
marriage. The marriage license is valid because it was in fact
issued by a Civil Registrar (Arts. 3 and 4, FC).
b. Would your answer be the same if it should turn out that
the marriage license was spurious? Explain.
 CIVIL LAW
A: NO, the answer would not be the same. The marriage
would be void because of the absence of a formal requisite. In
such a case, there was actually no valid marriage license.
---
Q: In 2002, Jerry and Jenny celebrated their church
wedding in Laguna. They did not have a civil wedding. Year
later, Jerry filed with the RTC a petition for declarion of
nullity of marriage on the Ground of psychological
incapacity. The RTC dismissed the case for lack of
jurisdiction arguing that the procedure is governed by the
Church's Canon Law and not by the civil law observed by
the State in nullity cases involving civil marriages. Thus,
the principle of separation of Church and State finds
application in this case. Is the RTC correct?
A: NO. The contract of marriage is entered into by complying
with the requirements and formalities prescribed by law.
Although, marriage is considered a sacrament in the Catholic
church, it has civil and legal consequences which are governed
by the Family Code. The instant petition only seeks to nullify
the marriage contract between the parties as postulated in the
Family Code of the Philippines; and the declaration of nullity of
the parties' marriage in the religious and ecclesiastical aspect is
another matter. Notably, the proceedings for church annulment
which is in accordance with the norms of Canon Law is not
binding upon the State as the couple is still considered married
to each other in the eyes of the civil law. Thus, the principle of
separation of the church and state finds no application in this
case. (Tilar v. Republic, G.R. No. 214579, July 17, 2017, Peralta, J.)
Rules governing the validity of marriage (2002, 2004,
2006, 2009, 2010 BAR)
1. As to its extrinsic validity – Lex loci celebrationis
NOTE: Locus regit actum (the act is governed by the law of
the place where it is done) - is adhered to here in the
Philippines as regards the extrinsic validity of marriage.
2. As to its intrinsic validity – Personal law
NOTE: Personal law may either be the national law or the
law of the place where the person is domiciled.
If the person involved is a stateless person, domiciliary rule
applies, otherwise, lex nationalii applies.
The 1st paragraph of Article 26 of the Family Code (FC)on the
validity of foreign marriages applies, however, only to Filipinos.
Foreign marriages of foreigners or of a Filipino and a foreigner
are governed by the Rules on Conflict of Laws (Sempio-Diy,
1995).
Marriages between Filipinos solemnized abroad in
accordance with the law in force in said country (FC, Art.
26)
GR: Marriages between Filipinos solemnized outside the
Philippines in accordance with the law of the foreign country
where it is celebrated, if valid there, shall be valid here as such.
XPNs: It shall be void, even if it is valid in the foreign country
where the marriage was celebrated, if any of the following
circumstances are present:
1. Lack of legal capacity even with parental consent (e.g.
party is below 18);
2. Incestuous;
3. Contracted through Mistake of one party as to the identity
of the other;
4. Contracted following the annulment or declaration of
nullity of a previous marriage but Before partition, etc.;
5. Bigamous or polygamous except as provided in Art. 41 FC
on terminable bigamous marriages;
6. Void due to Psychological incapacity;
7. Void for reasons of Public policy.
4
Requirements to prove a foreign marriage
1. The existence of the pertinent provision of the foreign
marriage law.
2. The celebration or performance of the marriage in
accordance of said law.
Requirements for the application of par. 2 of Art. 26 of the
Family Code
1. It must be a case of mixed marriage (one party is Filipino
and the other is an alien);
2. The divorce must be obtained by the alien spouse and not
by the Filipino spouse; and
3. The divorce obtained by the alien spouse must capacitate
him or her to remarry (Rabuya, 2017).
NOTE: In the case of REPUBLIC v. MANALO (G.R. No. 221029,
April 24, 2018, J. Peralta, EN BANC), the Supreme Court
recognized that a divorce decree initiated BY the Filipino
spouse abroad, capacitating the foreigner spouse to remarry is
valid and its effects shall likewise be recognized in the
Philippines.
The Court ruled that the second paragraph of Art. 26 only
require that there be a divorce decree validly obtained abroad.
The letter of the law does not demand that the alien spouse
should be the one who initiated the proceeding wherein the
divorce decree was granted. It does not distinguish whether the
Filipino spouse is the petitioner or the respondent in the
foreign divorce proceeding. Moreover, the Court held that
whether the Filipino spouse initiated the foreign divorce
proceeding or not, a favorable decree dissolving the marriage
bond capacitating his/her alien spouse to remarry will have the
same result: the Filipino spouse will effectively be without a
husband or wife.
Therefore, the subject provision should not make a distinction.
In both instances, it is is extended as a means to recognize the
residual effect of the foreign divorce decree on Filipinos whose
marital ties to their alien spouses are severed by operation of
the latter's national law.
NOTE: This decision was promulgated on April 24, 2018,
hence, NOT part of the Bar syllabus cut-off.
Q: What are the requisites for psychological incapacity
(1996, 1997, 2002, 2006)
A: The three basic requisites are the following:
1. Juridical antecedence – Must be rooted in the history of
the party antedating the marriage, although overt
manifestations may arise only after such marriage.
The root cause of the psychological incapacity must be:
(a) Medically or clinically identified,
(b) Alleged in the complaint,
(c) Sufficiently proven by the experts,
(d) Clearly explained in the decision.
NOTE: A.M. No. 02-11-10-SC, effective March 15, 2003 and
Barcelona vs. CA (2003) provide that expert opinion is not
a condition sine qua non for proof of psychological
incapacity. The root cause may be proven by the totality of
evidence in actual trial.
2. Gravity – Grave enough to bring about the disability of the
party to assume the essential marital obligations.
3. Permanence or Incurability – must be incurable or, if
curable, the cure should be beyond the means of the
parties involved.
In Republic v. Molina, additional guidelines were enumerated
by the Supreme Court to aid the bench and the bar in deciding
cases of psychological incapacity:
4. Burden of proof to show the nullity of the marriage
belongs to the plaintiff;
 UST LAW PRE-WEEK NOTES 2018

5. The incapacity must be proven to be existing at “the time
of the celebration” of the marriage
6. The essential marital obligations must be those embraced
by Arts. 68 up to 71 of the FC as regards the husband and
wife, as well as Arts. 220, 221 and 225 of the same Code in
regard to parents and their children. Such non-complied
marital obligation(s) must also be stated in the petition,
proven by evidence and included in the text of the
decision;
7. Interpretations given by the National Appellate
Matrimonial Tribunal of the Catholic Church in the
Philippines, while not controlling or decisive, should be
given great respect by our courts;
by reason of Article 40, the donation remains valid.
XPN to the XPN: If the donee spouse contracted the
marriage in bad faith, all donations are revoked by
operation by law.
iii. When both parties to a subsequent marriage
contracted in bad faith under Article 44, all donations
propter nuptias are revoked by operation by law.
4. Designation as Beneficiary in Insurance Policy
If the subsequent marriage is judicially declared void by
reason of Article 40, the innocent spouse may revoke such
designation if the beneficiary spouse acted in bad faith,
even if such designation be stipulated as irrevocable.

In Marcos v. Marcos, the SC held categorically that 5. Right to Inherit

psychological incapacity “may be established by the totality of a. Intestate Succession: The parties cannot inherit from
evidence presented” and that “there is no requirement that the each other by way of intestate succession since they
respondent should be examined by a physician or a are no longer considered as spouses
psychologist as a condition sine qua non for such declaration” b. Testate Succession:
(Marcos v. Marcos, G.R. No. 136490, October 19, 2000).
GR: Any testamentary provision by one in favour of
the other shall remain valid.
NOTE:The new Supreme Court Rule on Declaration of absolute
XPN:
nullity of Void Marriages and annulment of Voidable Marriages
1. If the subsequent marriage is rendered void by non-
(A.M. No. 02-11-10-SC, effective March 15, 2003) provide that
compliance with Article 40 of the Family Code, the
the appearance of the prosecuting attorney or fiscal and the
spouse who contracted the subsequent marriage in
Solicitor-General is no longer mandatory.
bad faith is disqualified to inherit from the innocent
spouse.
Incestous Marriages
2. If the marriage is void by reason of the bad faith of
both parties under Article 41 of the Family Code, all
1. Between ascendants and descendants of any degree,
testamentary dispositions made by one in favour of
legitimate or illegitimate
the other are revoked by operation of law.
2. Between brothers and sisters, whether of the full or half
blood, legitimate or illegitimate
6. Parental Authority and Custody of Children
GR: Since the children are considered as illegitimate, the
Subsequent marriage parental authority and the custody of the children will be
exercised by their mother. The illegitimate father even if
If a person contracts a subsequent marriage during the
he admits paternity, will only have visitation rights.
subsistence of a prior marriage, the subsequent marriage is:
(1992, 2005, 2008)
XPN: If the marriage is declared void by the reason of
psychological incapacity of either or both of the parties,
GR:Void for being bigamous or polygamous, even if celebrated
the parental authority and the custody will be exercised by
abroad and valid there as such.
the parent designated by the court.
XPN: Valid if it is a terminable subsequent marriage. Effects of Decree of Annulment
Elements:
1. Termination of the marital bond.
a. Prior spouse has been absent for a period of 4 years, or in
2. Children conceived or born before the judgment of
case there is danger of death, 2 years.
annulment has become final and executory are considered
b. There is well-founded belief that the absent spouse is dead
legitimate.
c. There is judicial declaration of presumptive death of the
3. Absolute community property regime or the conjugal
absentee spouse
partnership property regime is terminated of dissolved
and the same shall be liquidated in accordance with the
Effects of Declaration of Nullity
provisions of Arts. 102 and 129.
4. The innocent spouse may revoke the designation of the
1. Status of the Children (1990, 2010)
other spouse who acted in bad faith as beneficiary in the
GR: Illegitimate
insurance policy whether or not the designation is
XPN: Legitimate if:
revocable.
i. If the marriage is void on the ground of psychological
5. The spouse who contracted the marriage in bad faith shall
incapacity of either or both parties; or
be disqualified to inherit from the innocent spouse by
ii. If the marriage is void due to the non-compliance with
testate and intestate succession
the requirements set forth under Article 52 of the
6. Donation propter nuptias
Family Code.
GR: It shall remain valid
XPN: If the donee spouse acted in bad faith, the donor may
2. Property Relations
revoke the donation.
GR: Either Article 147 or 148 (Co-Ownership) will apply
XPN: If the subsequent marriage is void due to non-
Remarriage after declaration of nullity or annulment
compliance with Article 40, the property relations of the
void subsequent marriage will either be absolute
A person must comply with the requirements of Art.52 of the
community or conjugal partnership of gains.
FC before he can remarry, viz, the Recording and registration
of: (J-P-D-D)
3. Donations Propter Nuptias
GR: Donations propter nuptias are revocable at the
1. Judgement of Annulment
instance of the donor
2. Partition
XPN:
3. Distribution of properties; and
i. If the donation propter nuptias is embodied in a
4. Delivery of presumptive legitime
marriage settlement, the donation is void under
Article 86 par. 1;
ii. If the subsequent marriage is judicially declared void

5
 CIVIL LAW

Voidable Marriage Q: Under what conditions, respectively, may drug addiction

be a ground, if at all, for the declaration of nullity of
marriage, annulment of marriage, and legal separation?
A voidable marriage is considered valid and produces all its (1997 BAR)
civil effects until it is set aside by final judgment of a competent
court in an action for annulment (Rabuya, 2006). Simply, a A:
voidable marriage is valid until it is annulled (Paras, 2016).
Declaration of a. The drug addiction must
GROUNDS WHO MAY RATIFY/HOW Nullity of amount to psychological
(FC, Art. 45) RATIFIED Marriage incapacity.
NON-AGE: that one of By the party who has not
the parties is 18 obtained parental consent a. The drug addiction must be
years of age or over concealed;
but below 21 and the IF after attaining the age of b. It must exist at the time of
marriage was twenty-one, such party marriage;
Annulment of
solemnized without freely cohabited with the c. There should be no
Marriage
parental consent other and both lived cohabitation with full
together as husband and knowledge of the drug
wife; addiction;
INSANITY – either By the insane party d. The case is filed within five
party was of unsound (5) years from discovery.
mind IF after coming to reason, a. There should be no
he/she freely cohabited with condonation or consent to
the other the drug addiction;
b. The action must be filed
FRAUD - consent of By the party whose consent Legal Separation
within five (5) years from
either party was was vitiated the occurrence of the cause.
obtained by Fraud c. Drug addiction arises during
IF, with full knowledge of the marriage and not at the
the facts constituting the time of marriage.
fraud, he/she freely
cohabited with the other EFFECTS OF DECREE OF NULLITY OF MARRIAGE vis-à-vis
FORCE - consent By the party whose consent EFFECTS OF DECREE OF ANNULMENT
obtained by Force, was vitiated
Intimidation or NULLITY OF ANNULMENT
Undue Influence IF the force had disappeared MARRIAGE
and ceased, and such party GR: Illegitimate
freely cohabited with the XPN: Legitimate
other As to the
IMPOTENCE – either CANNOT be ratified children 1. Marriage is void on
party was physically conceived the ground of
incapable of REQUISITE: physical or born psychological
consummating the incapacity continues and before the incapacity (Art.
marriage with the appears to be incurable judgment 36); or
other has become 2. Marriage is void
final and due to non-
STD – either party CANNOT be ratified
executory compliance with
was afflicted with a
the requirements
sexually REQUISITES:
of Art. 53 in rel. to
transmissible disease STD must be (a) serious; and
Art. 52
(b) incurable
As to GR: Either Article 147 Absolute
property or 148 (Co-Ownership) community
NOTES: relations will apply property
XPN: If the subsequent regime or the
 The grounds for a voidable marriage must exist at the time marriage is void due to conjugal
of the celebration of the marriage. non-compliance with partnership
 A voidable marriage can be assailed only in a direct Article 40, the property property
proceeding for that purpose. relations of the void regime is
 The marriage may be questioned only during the lifetime subsequent marriage terminated,
of the parties by the party who may attack such marriage will either be absolute dissolved and
within the prescribed periods, both under Art. 47 of the community or conjugal liquidated
Family Code partnership of gains.
GR: Revocable at the GR:remain
Doctrine of Triennial Cohabitation instance of the donor valid
As to XPN:
If after 3 years of living together with her husband, the wife donations If the subsequent XPN: If the
remained a virgin, the husband is presumed to be impotent propter marriage is judicially donee spouse
(Rabuya, 2017). The husband will have to overcome this nuptias declared void by reason acted in bad
presumption. of Article 40, the faith, the
donation remains valid. donor may
Relative impotency may now be invoked as a ground for XPN to the XPN: If revoke the
annulment. The Committee has decided to include relative the donee spouse donation.
impotency of one party because there are cases where a person contracted the
is impotent with respect to his spouse but not with other men marriage in bad
or women (Sempio Diy, 1995). faith, all donations
are revoked by
--- operation by law.

6
 UST LAW PRE-WEEK NOTES 2018

Designatio If the subsequent The Family Court of the province or city where the
n as marriage is judicially designation Where to petitioner or the respondent has been residing
beneficiary declared void by reason may be file for at least 6 months prior to the date of filing or
in the of Article 40, the revoked by in case of a non-resident, where he may be
insurance innocent spouse may the innocent found in the Philippines, at the election of the
policy of revoke such spouse even petitioner
the other designation even if though the
spouse who such designation be designation
acted in irrevocable. be NOTE: It must be stressed however that in certain acts like
bad faith irrevocable adultery, each adulterous act is a separate cause for legal
Intestate Succession: separation. Prescription will be based on the last act. (Pineda,
The parties cannot 2011, p.172)
inherit from each other ---
Q: After they got married, Nikki discovered that Christian
Testate Succession: was having an affair with another woman. But Nikki
As to GR: Any testamentary decided to give it a try and lived with him for two (2) years.
succession provision by one in The spouse in After two (2) years, Nikki filed an action for legal
favour of the other bad faith is separation on the ground of Christian’s sexual infidelity.
shall remain valid. disqualified Will the action prosper? Explain. (2012 BAR)
XPN: to inherit
1. If the subsequent from the A: Nikki’s action will not prosper on account at
marriage is rendered innocent condonation. Although the action for legal separation has not
void by non- spouse by yet prescribed, the prescriptive period being five years, the
compliance with Article testate and decision of Nikki to live with Christian after discovering his
40 of the Family Code, intestate affair amounts to condonation of such act. However, if such
the spouse who succession affair is still continuing, Nikki's action would prosper because
contracted the the action will surely be within (5) years from the commission
subsequent marriage in of the latest act of sexual infidelity. Every act or sexual liaison is
bad faith is disqualified a ground for legal separation.
to inherit from the
innocent spouse. ---
2. If the marriage is
void by reason of the PROPERTY RELATIONS OF THE SPOUSES
bad faith of both
parties, all 1. Absolute Community of Property (ACP)
testamentary 2. Conjugal Partnership of Gains (CPG)
dispositions made by 3. Absolute Separation of Property (ASOP)
one in favour of the 4. Any other regime within limits provided by the FC
other are revoked by
operation of law. ACP CPG ASOP
When it applies
LEGAL SEPARATION When 1. When the 1. When future spouses
spouses: future adopt it in a marriage
Grounds (1997, 2002, 2003, 2006, 2007) 1. Adopt it spouses settlement;
(RiP Ang Forever Dahil SACAL na) in a adopt it in a 2. ACP or CPG is dissolved;
marriage marriage 3. Prior marriage is
1. Repeated physical violence or grossly abusive conduct settleme settlement; dissolved due to death of
against petitioner, common child, child of petitioner; nt; 2. If the one spouse and surviving
2. Physical violence or moral pressure to compel petitioner 2. Do not marriage is spouse failed to comply
to change religious or political affiliation choose celebrated with the requirements
3. Attempt to corrupt or induce petitioner, common child, any under the under Art. 103 (judicial
child of petitioner to engage in prostitution, or connivance economic New Civil settlement proceeding of
in such corruption or inducement; system; Code and the estate of deceased
4. Final judgment sentencing respondent to imprisonment of or they have spouse);
more than 6 years, even if pardoned; 3. Adopted not adopt 4. By judicial order. Judicial
5. Drug addiction or habitual alcoholism of respondentwhich a any separation of property
must exist after celebration of marriage; different economic may either be voluntary
6. Sexual infidelity or perversion; property system. or for sufficient cause.
7. Attempt by respondent against life of petitioner; regime
8. Contracting by respondent in the Philippines or abroad and the
subsequently of a bigamous marriage; same is
9. Abandonment of petitioner by respondent without void.
justifiable cause for more than 1 year.
10. Lesbianism or homosexuality of respondentwhichmust Composition
exist after celebration of marriage; All the Each spouse
properties retains his/her
NOTE:Abandonment shall not apply in a case where the owned by property
spouse left the conjugal dwelling due to the abusive the spouses before the
conduct of her husband. Such act does not constitute the at the time of marriage and
abandonment contemplated in the said provision. (Ong marriage only the fruits
Eng Kiam v. CA, G.R. No. 153206, October 23, 2006). become and income of
community such
Filing of petition for legal separation property properties
become part of
Who may Husband or Wife the conjugal
file properties
When to Within 5 years from the time of the occurrence during the
file of the cause marriage

7
 CIVIL LAW

(1995, 1998, must be each other or they do

2004, 2005, capacitated not live exclusively with
2008) to marry each other as husband
Effect of Separation In Fact each other; and wife; and
The separation in fact shall not 2. live 2. Their union is without
affect the regime of ACP/CPG, exclusively the benefit of marriage
but: with each or their marriage is
1. The spouse who leaves other as void (Art. 148).
the conjugal home or husband
refuses to live therein, and wife;
without just cause, shall and
not have the right to be 3. their union
supported; is without
2. When consent of one the benefit
spouse to any transaction of marriage
of the other is required or their
by law, judicial marriage is
authorization shall be void
obtained in a summary (Mercado-
proceeding. Fehr v.
3. In case of insufficiency of Fehr, 414
community or conjugal SCRA 288,
partnership property, 2003;
separate property of both Salas, Jr. v.
spouses shall be solidarily Aguila, G.R.
liable for the support of No.
the family. Spouse 202370,
present shall, upon 2013)
proper petition in a Salaries & Owned in Separately owned by the
summary proceeding, be wages equal shares parties. If any is married,
given judicial authority to his/her salary pertains to the
administer or encumber ACP/CPG of the legitimate
any specific separate marriage.
property of the other Property Belongs to Belongs to such party
spouse and use the fruits exclusively such party
or proceeds thereof to acquired upon proof of
satisfy the latter’s share acquisition
(Arts. 100 & 127, FC). through
exclusive funds
Effect of Dissolution
Property Governed by Owned in common in
Upon Upon acquired by rules of co- proportion to their
dissolution dissolution of both through ownership respective contributions
and the their work or
liquidation partnership, industry
of the the separate Presumption Property No presumption of joint
community properties of acquired while acquisition.
property, the spouses living together
what is are returned presumed Actual joint contribution of
divided and only the obtained by money, property or industry
equally net profits of their joint shall be owned by them in
between the the efforts, work common proportion.
spouses or partnership or industry and
their heirs is are divided owned by them However, their contributions
the net equally in equal are presumed equal, in the
remainder of between the shares. absence if proof to the
the spouses of contrary
properties of their heirs. If one party did
the ACP. not participate
in acquisition:
ART. 147 ART. 148 presumed to
BASIS (1997, 2000, (1992, 1998, 2000, 2006, have
2006, 2009, 2009) contributed
2010) through care
and
Applicability 1. Parties With legal impediment
maintenance of
without caused by:
family and
legal 1. Adulterous relationships
household
impedimen 2. Bigamous/polygamous
(Buenaventura
t to marry; marriages
v.
2. Void 3. Incestuous void
marriage marriages under Art. 37 Buenaventura,
on the 4. Void marriages by G.R. No.
ground of reason of public policy 127358, March
psychologic (Art. 38) 31, 2005)
al Forfeiture When only one If one of the parties is validly
incapacity. of the parties married to another, his/her
As to 1. The man 1. The man and the to a void share in the co-ownership
marriage is in shall accrue to the ACP or
requisites and the woman must be
good faith, the CPG existing in the marriage.
woman incapacitated to marry

8
 UST LAW PRE-WEEK NOTES 2018

share of the
party in bad If the party who acted in BF Guidelines in the constitution of the Family Home
faith in the co- is not validly married to
ownership another or if both parties are 1. FH is deemed constituted from the time of actual
shall be in BF, such share be forfeited occupation as a family residence;
forfeited in in manner provided in the 2. Only 1 FH may be constituted;
favor of: last par. of Art. 147 3. Must be owned by the person constituting it;
4. Must be permanent;
1. their 5. Same rule applies to both valid and voidable marriages
common and even to common law spouses; (FC, Arts. 147 and 148)
children 6. It continues despite death of one, both spouses, or an
2. in case of unmarried head of the family for 10 years or as long as
default of there is a minor beneficiary (FC, Art 159).
or waiver
by any or NOTES:
all of the
common a. Property that is subject of a conditional sale on
children or instalment(s) where ownership is reserved by the vendor
their to guarantee payment of the purchase price may be
descendant constituted as a FH.
s, each b. The heirs cannot partition the same unless the court finds
vacant compelling reasons therefor. This rule shall apply
share shall regardless of whoever owns the property or constituted
belong to the FH (FC, Art 159).
the c. The FH must be part of the properties of the absolute
respective community or the conjugal partnership or the exclusive
surviving properties of either spouse, with the latter’s consent. It
descendant may also be constituted by an unmarried head of a family
s on his or her own property (FC, Art 156).
3. In the
absence of PATERNITY AND FILIATION
descendant
s, such Legitimate children
share shall
belong to GR: One who is conceived OR born during the marriage of the
the parents (FC, Art. 164).
innocent
party. XPN: Born outside of a valid marriage (void marriages) but
Proof of Not necessary Necessary considered as legitimate child:
actual
contribution 1. Children of marriages which are declared void under Art.
36; and
Property regime governing the property relations of 2. Children of marriages which are declared void under Art.
spouses in the absence of marriage settlement or when 53 (Rabuya, 2017).
regime agreed upon is void (1992, 1995, 2005)
Requisites for a child conceived by artificial insemination
GR: Absolute Community Property (Art. 75) to be considered legitimate (FC, Art. 166 no. 3)
XPNs:
1. For marriages contracted prior to the effectivity of the FC 1. The artificial insemination is made on the wife, not on
on August 3, 1988, conjugal partnership of gains shall another woman;
govern the property relations because Art. 119 of the NCC 2. The artificial insemination on the wife is done with the
will apply. The provisions of the FC shall have no sperm of the husband or of a donor, or of both the husband
retroactive effect because it shall impair vested rights. and a donor;
2. Subsequent marriage contracted within one year from the 3. The artificial insemination has been authorized or ratified
death of the deceased spouse without liquidation of the by the spouse on a written instrument executed and signed
community property or conjugal partnership of gains, by them before the birth of the child; and
either judicially or extrajudicially, as required under Arts. 4. The written instrument is recorded in the civil registry
103 and 130 of the FC. In such case, a mandatory regime of together with the birth certificate of the child (FC, Art.
complete separation of property shall govern the 164).
subsequent marriage (Rabuya, 2017).
Rights of legitimate children (FC, Art. 174)
THE FAMILY
1. To bear the surname of the father and the mother;
2. To receive support from their parents, their ascendants,
Rules governing family relations
and in proper cases, their brothers and sisters;
3. To be entitled to the legitimate and other successional
Family relations are governed by law. No custom, practice or
rights granted to them by Art. 174 of the Family Code.
agreement destructive of the family shall be recognized or
given effect (FC, Art. 149).
Presumption of legitimacy (2006, 2008, 2010 BAR)
Family Home
Article 164 of the Family Code provides that the children
conceived or born during the marriage of the parents are
It is the dwelling house where the husband and wife and their
legitimate.
family reside, and the land on which it is situated. It is
constituted jointly by the husband and the wife or by an
Basis of the presumption:it does not only flow out from a
unmarried head of a family (FC, Art. 152).
declaration contained in the statute but is based on the broad
principles of natural justice and the supposed virtue of the
The FH is deemed constituted on a house and lot from the time
mother. The presumption is grounded in a policy to protect
it is occupied as a family residence FC, (Art. 153).

9
 CIVIL LAW

innocent offspring from the odium of illegitimacy (Liyao, Jr. v. a. Physical incapacity of the husband to have sexual
Tanhoti-Liyao, G.R. 138961, March 7, 2002). intercourse with his wife;
b. The fact that the husband and wife were living
The presumption of legitimacy under Article 164 of the Family separately in such a way that sexual intercourse was
Code may be availed only upon convincing proof of the factual not possible; or
basis therefor, i.e., that the child’s parents were legally married c. Serious illness of the husband which absolutely
and that his/her conception or birth occurred during the prevented intercourse.
subsistence of that marriage. Else, the presumption of law that
a child is legitimate does not arise (Angeles v. Maglaya, G.R. No. 2. Proved that for biological or other scientific reasons, the
153798, September 2, 2005). child could not have been that of the husband, except in
the case of children conceived through artificial
NOTE: The child by himself cannot choose his own filiation. insemination.
Neither can he elect the paternity of the husband of his mother 3. In case of children conceived through artificial
when the presumption of his legitimacy has been successfully insemination, the written authorization or ratification of
overthrown. either parent was obtained through mistake, fraud,
violence, intimidation or undue influence.
Rule on status of child where the mother contracted
another marriage within 300 days after termination of the Kinds of proof of filiation (1995, 1999, 2010)
former (1999)
1. Primary proof consists of the ff:
The child shall be considered as conceived during the: a. Record of birth appearing in civil registrar or final
judgment;
1. Former marriage– if child is born: b. Admission of legitimate filiation in public document
Before 180 days after the solemnization of the or private handwritten instrument signed by parent
subsequent marriage, provided it is born within 300 concerned.
days after termination of former marriage 2. Secondary consists of the ff:
2. Subsequent marriage –if a child is born: a. Open and continuous possession of legitimacy;
180 days after the celebration of the subsequent b. Any means allowed by the Rules of Court and special
marriage, even though it be born within 300 days after laws.
the termination of the former marriage.
Rights of an illegitimate child
ACTION TO IMPUGN LEGITIMACY V.
ACTION TO CLAIM LEGITIMACY 1. They shall use the surname of the mother;
2. They shall be under the parental authority of the mother;
BASIS ACTION TO ACTION TO 3. They shall be entitled to support in conformity with the FC;
IMPUGN CLAIM 4. They shall be entitled to a legitime which shall consist of ½
LEGITIMACY LEGITIMACY of the legitime of a legitimate child (Art. 176).
Remedy Action to impugn Action to claim
legitimacy or legitimacy Legitimated Children
illegitimacy. (compulsory
recognition). Children conceived and born outside of wedlock of parents
Real party in GR: Husband GR: Child who, at the time of conception of the former, were not
interest XPNs: Heirs, in cases XPNs: Heirs of the disqualified by any impediment to marry each other, or were so
where: child, in cases where: disqualified only because either or both of them were below
1. Husband died 1. Child died in state eighteen (18) years of age, may be legitimated (Art. 177, FC as
before the of insanity amended by R.A. 9858).(1990, 2004, 2008, 2009 BAR)
expiration of the 2. Child died during
period for minority ADOPTION
bringing the
action; NOTE: Must be filed Domestic Adoption Act of 1998 (RA 8552)
2. Husband died within 5 years.
after filing the Who can adopt
complaint,
without having 1. Filipino citizens;
desisted; 2. Aliens;
3. Child was born 3. Guardians with respect to their ward
after the death of
husband. NOTE: Guardian may only adopt his ward after the
Prescription 1 year – husband GR: During the lifetime termination of guardianship and clearance of his financial
resides in the same of the child accountabilities.
municipality or city XPN: Lifetime of the
where birth took putative father Qualifications of a Filipino who may adopt
place
2 years – husband
In cases where the
does NOT reside in
action is for the 1. Must be of legal age;
the same
recognition of 2. In a position to support and care for his children;
municipality or city
illegitimate child by 3. Good moral character;
3 years – husband is
“open and continuous 4. Full civil capacity and legal rights;
living abroad possession” of the 5. has not been convicted of any crime involving moral
status. turpitude;
Legitimacy of the child may be impugned only on the 6. Emotionally and psychologically capable of caring for
following Grounds: children;
7. GR: At least 16 years older than adoptee
1. Physical impossibility for the husband to have sexual XPN: When the:
intercourse with his wife within the first 120 days of the a. Adopter is the biological parent of the adoptee,
300 days which immediately preceded the birth of the b. Adopter is the spouse of adoptee’s parent.
child because of:

10
 UST LAW PRE-WEEK NOTES 2018
Qualifications of an alien who may adopt under R.A. 8552
1. Possesses same qualifications as those enumerated for
Filipino adopters;
2. His country has diplomatic relations with the Philippines;
3. His government allows the adoptee to enter his country as
his adopted child
4. He has been certified by his diplomatic or consular office
or any appropriate government agency that he has the
legal capacity to adopt in their country
5. GR: Has been living in the Philippines for at least 3
continuous years prior to the application for adoption and
maintains such residence until adoption decree has been
entered.
XPNs:
a. He is a former Filipino who seeks to adopt a relative
within the 4th civil degree of consanguinity or affinity,
b. He is married to a Filipino and seeks to adopt jointly
with his spouse a relative within the 4th degree of
consanguinity or affinity,
c. He is married to a Filipino and seeks to adopt the
legitimate or illegitimate child of his Filipino spouse.
Rule on Joint Adoption of Spouses
GR: Husband and wife shall adopt jointly (Sec. 7, Article 3, RA
8552)
XPNs:
a. One spouse seeks to adopt the legitimate son or
daughter of the other;
b. One spouse seeks to adopt his own illegitimate son or
daughter, PROVIDED, that the other signifies his
consent
NOTE: In seeking to adopt his own illegitimate son or
daughter, the law requires that the consent of the spouse
of the adopter must be given to such adoption. If on the
other hand, the spouse would adopt the illegitimate son or
daughter of the other, joint adoption is still mandatory
c. Spouses are legally separated.
Who may be adopted
1. Any person below eighteen (18) years of age who has been
administratively or judicially declared available for
adoption;
2. The legitimate son/daughter of one spouse by the other
spouse;
3. An illegitimate son/daughter by a qualified adopter to
improve his/her status to that of a legitimate;
4. A person of legal age if, prior to the adoption, said person
has been consistently considered and treated by the
adopter(s) as his/her own child since minority;
5. A child whose adoption has been previously rescinded; or
6. A child whose biological or adoptive parent(s) has
died: Provided, that no proceedings shall be initiated
within six (6) months from the time of death of said
parent(s). (Sec. 8, RA 8552).
Rights of an Adopted Child
1. Right to use the surname of the adopter
2. Right to support
3. Right to succession
Grounds upon which an adoptee may seek judicial
rescission of the adoption (S-A-R-A)
1. Sexual assault or violence committed against the
adoptee by the adopter;Attempt on the life of the
adoptee;
2. Repeated physical and verbal maltreatment by the
adopter despite having undergone counseling;
3. Abandonment and failure to comply with parental
obligations by the adopter.
11
Who may rescind the adoption
The adoptee has the sole right to severe the legal ties created
by adoption and the one who will file the action for rescission.
However, if the adoptee is still a minor or above 18 years of age
but incapacitated, the Department of Social and Welfare
Development as the adoptee’s guardian or counsel may assist
the adoptee for rescinding the decree of adoption.
NOTES:
1. Joint adoption is only allowed between husband and wife.
2. The use of the word “shall” in the above-quoted provision
means that joint adoption by the husband and the wife is
mandatory. This is in consonance with the concept of joint
parental authority over the child which is the ideal
situation. As the child to be adopted is elevated to the level
of a legitimate child, it is but natural to require the spouses
to adopt jointly. (In Re: Petition for Adoption of Michelle P.
Lim, In Re: Petition for Adoption of Michael Jude P. Lim,
Monina P. Lim, G.R. Nos. 168992-93, May 21, 2009).
Intercountry Adoption Act of 1995 (R.A 8043)
Who can adopt:
1. Any alien;
2. Filipino citizen, both permanently residing abroad.
Qualifications needed for a Filipino or alien to adopt (Sec.
9)
1. At least 27 years old and 16 years older than the child
to be adopted at the time of the application unless:
a. adopter is the parent by nature of the child;
b. adopter is the spouse of the parent by nature of
the child to be adopted
2. If married, his spouse must jointly file for adoption;
3. Has the capacity to act or assume all rights and
responsibilities of parental authority;
4. Not been convicted of a crime involving moral
turpitude;
5. Eligible to adopt under his national law;
6. In a position to provide for proper care and support
and give necessary moral values;
7. Agrees to uphold the basic rights of the child mandated by
the UN convention of rights of Child and the Philippine
Laws;
8. Comes from a country with which the Philippines has
diplomatic relations and adoption is allowed under his
national law;
9. Possesses all the qualifications and none of the
disqualifications under the law or other applicable
Philippine laws.
SUPPORT
Rules on support of illegitimate children of either spouse
1. ACP or CP- For the support of the following:
a. spouses;
b. common children of the spouses; and
c. legitimate children of either spouse
NOTE: If the community property or the conjugal
partnership is insufficient to cover them, the spouses shall
be solidarily liable for the unpaid balance with their
separate properties.
2. Separate property of person- For the support of the
following:
a. illegitimate children;
b. legitimate ascendants;
c. descendants, whether legitimate or illegitimate;
d. brothers and sisters, whether legitimately or
illegitimately related (Rabuya, 2017).
Persons obliged to support each other (2008)
 CIVIL LAW

1. Spouses;
2. Legitimate ascendants & descendants; Q: Distinguish briefly but clearly between: Substitute
3. Parents and their legitimate children, and the legitimate parental authority and special parental authority
and illegitimate children of the latter;
4. Parents and their illegitimate children, and the legitimate A:
and illegitimate children of the latter;
5. Legitimate brothers and sisters whether full or half-blood Substitute Parental Special Parental
(Art. 195). Authority Authority
NOTE:Brothers and sisters not legitimately related are likewise the parents lose their the parents or anyone
bound to support each other. However, when the need for parental authority in exercising parental
support of the brother or sister, being of age, is due to a cause favor of the substitute authority does not lose
imputable to the claimant’s fault or negligence, in this case, the who acquires it to the parental authority
illegitimate brother or sister has no right to be supported exclusion of the parents
(Rabuya, 2017). The authority is not Exercises authority only
limited to the time the during the time that the
The liability to support should be observed in the following child is in their custody child is in their custody
order: or supervision or supervision
Displaces parental Concurs with parental
1. Spouse authority authority
2. Descendants in the nearest degree
3. Ascendants in the nearest degree ABSENCE
4. Brothers and sisters
Kinds of absence
PARENTAL AUTHORITY 1. Physical Absence
2. Legal Absence
Parental preference rule
3 Stages of Absence
The natural parents, who are of good character and who can
reasonably provide for the child are ordinarily entitled to 1. Provisional Absence – when a person disappears from his
custody as against all persons. domicile his whereabouts being unknown, without leaving
an agent to administer his property (Art. 381).
Exercise of parental authority in case of absence, death, 2. Declared Absence – when a person disappears from his
remarriage of either parent, or legal or de facto separation domicile and 2 years thereafter have elapsed without any
of parents news about him or since the receipt of the last news, or 5
years have elapsed in case he left a person to administer
1. Absence or death of either parent – parent present shall his property (Art. 384).
continue exercising parental authority 3. Presumptive Death – the absentee is presumed dead
2. Remarriage of either parent – it shall not affect the parental (Jurado, 2011)
authority over the children, unless the court appoints
another person to be the guardian of the person or Presumption of Death
property of the children (Art. 213).
3. Legal or de facto separation of parents – the parent Kinds of presumed death
designated by the court. 1. Ordinary presumption- disappears under normal
conditions without danger or idea of death.
Tender-Age Presumption 2. Extraordinary presumption- disappearance with great
probability of death.
GR: No child below 7 years of age shall be separated from the
mother because the law presumes that the mother is the best Rules in ordinary presumption of death
custodian. (2006) 1. In case of disappearance upon or before reaching the age
of seventy five (75) years:
XPN: When the court finds compelling reasons to consider a. After an absence of seven (7) years -the absentee is
otherwise. presumed dead for all purposes except, succession.
b. After an absence of ten (10) years - the absentee is
Special Parental Authority (2003, 2004, 2005, 2010) presumed dead for all purposes including succession.
2. Disappearance at the age of seventy six (76) years or older,
It is the parental authority granted by law to certain persons, after an absence of five (5) years -the absentee is
entities or institutions in view of their special relation to presumed dead for all purposes including succession.
children under their supervision instruction or custody. It is
denominated as special because it is limited and is present only Presumption of death of absentee under an ordinary
when the child is under their supervision instruction or presumption
custody. It can also co-exists with the parents’ parental
authority. Absentee is presumed to have died under an ordinary
presumptionat the end of the 5, 7, or 10 year period, as the case
The scope of special parental authority and responsibility may be.
applies toall authorized activities, whether inside or outside the
premises of the school, entity or institution. Presumption of death for all purposes

The nature of the liability of persons having special parental
authority over said minors for their acts or omissions causing
damage to another is principal and solidary. The parents,
judicial guardians or the persons exercising substitute parental
authority over said minor shall be subsidiarily liable (NCC, Art.
219). (2003, 2010)
Persons who may exercise special parental authority
1. School
2. School administrators
3. School teachers
4. Individual, entity or institution engaged in child care
The following are presumed dead for all purposes including the
division of estate among heirs in case of extraordinary
presumption of death (Art. 391):
1. Person on board a vessel lost during a sea voyage, or an
airplane which is missing, who has not been heard of for
four (4) years since the loss of the vessel or airplane;
2. Person in the armed forces who has taken at in war, and
has been missing for four (4) years;
3. Person who has been in danger of death under other
circumstances and his existence has not been known for
four (4) years.

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 UST LAW PRE-WEEK NOTES 2018

PART III – PROPERTY A:

Accion interdictal
CHARACTERISTICS
It is a summary action to recover physical or material
possession only and it must be brought within one year from
Property
the time the cause of action arises. It may be:
1. Forcible Entry
All things which are or may be the object of appropriation
2. Unlawful detainer
considered as either real or personal property (NCC, Art. 414).

It is an object or a right which is appropriated or susceptible of Forcible Entry Unlawful Detainer

appropriation by man, with capacity to satisfy human wants As to when possession became unlawful
and needs (Pineda, 1999). Possessionofthedefendantis Possession is inceptively
unlawful from the beginning lawful but becomes illegal
NOTE: Property does not only cover material things because it as he acquired possession by from the time defendant
mentions of rights which could either be classified as real or force, intimidation, strategy, unlawfully withholds
personal right. threat or stealth (FISTS). possession after the
expiration or termination of
CLASSIFICATION his rightthereto.

1. For a machinery to become immovable under Art. 415 (5) NOTE: The question of
of the NCC, the machinery must be installed by the owner possession is primordial,
of the tenement. However, the property becomes whiletheissueofownershipis
immovable when there is a provision in the lease contract generally unessential in
making the lessor, at the end of the lease, owner of the unlawful detainer (Rosa Rica
machinery installed by the lessee, the said machinery is SalesCenterv.Sps.Ong,G.R.
considered to have been installed by the lessor through the 132197,August16,2005).
lessee who acted merely as his agent. (Davao Sawmill v.
Castillo, 61 Phil 709). As to necessity of demand
No previous demand for the Demandisjurisdictionalifthe
2. A warehouse which is a construction adhered to the soil is defendant to vacate is ground is non-payment of
an immovable by nature under Art. 415(1), and the proper necessary. rentals or failure to comply
venue of any case to recover ownership of the same should with the lease contract.
be the place where the property is located (1997 BAR). As to necessity of proof of prior physical
possession
3. A floating platform made of wood and metal is an Plaintiff must prove that he Plaintiffneednothavebeenin
immovable property under Art. 415(9) NCC since it is was in prior physical prior physicalpossession.
intended to remain permanently where it is situated, even possession of the premises
if it is tethered to a ship which is anchored to the seabed. until he was deprived thereof NOTE: The fact that
The equipment and living quarters attached therein by the defendant. petitioners are in possession
are likewise immovable property under Art. 415 (3) of of the lot does not
the NCC as it is attached to an immovable in a fixed automatically entitle them to
manner, in such a way that it cannot be separated remaininpossession(Ganilla
therefrom without breaking the material or deterioration v.CA,G.R.No.150755,June28,
of the object. The equipment can also be classified as an 2005).
immovable property under Art. 415 (5) NCC because such
equipment are "machinery, receptacles, instruments or As to when 1 year period is counted from
implements intended by the owner of the tenement for an 1 year period is generally 1 year period is counted from
industry or works which may be carried on in a building or counted from the date of thedateoflastdemandorlast
on a piece of land and which tend directly to meet the actualentryofthelandexcept if letter ofdemand.
needs of the industry or works." The trees, plants and stealth, fromdiscovery.
flowers planted in the garden area of the platform are
likewise immovable property under Art. 415 NCC which Accion publiciana
classifies as an immovable property "trees, plants and
growing fruits, while they are attached to the land or form It is an ordinary civil proceeding to recover the better right of
an integral part of an immovable, the petroleum operation possession, except in cases of forcible entry and unlawful
facility” (2007 BAR). detainer. What is involved here is not possession de facto but
possession de jure.
OWNERSHIP
Accion reinvindicatoria
It is the juridical relation of a person over a thing by virtue of
which said person has the exclusive power or authority to It is anaction to recover real property based on ownership.
receive all the benefits and advantages arising from said thing, Here, the object is the recovery of the dominion over the
save those restricted by law or the recognized rights of others. property as owner.

Q: What are the kinds of ownership?
1. Full ownership- this includes all rights of an owner;
2. Naked ownership- this is ownership where the right
to the use and the fruits has been denied;
3. Sole ownership- where the ownership is vested only
inone person; and
4. Co-ownership- when the ownership is vested in 2
ormore owners.
Q: What are the distinctions between accion
reivindicatoria, accion publiciana, accion interdictal?
Where the facts averred in the complaint reveals that the action
is neither one of forcible entry nor unlawful detainer but
essentially involves a boundary dispute, the same must be
resolved in an accion reinvindicatoria (Sarmiento v. CA, G.R. No.
116192, November 16, 1995).
Q: What are the requisites in an action to recover real
property?
1. Clearly identify the land he is claiming in accordance with
the title/s on which he bases his right of ownership; and
2. Prove that he has a better title than the defendant
a. Best proof is a Torrens certificate.

13
 CIVIL LAW

b. Tax receipts, tax declarations are only prima facie 443)

evidence of ownership; it is rebuttable.

Owner No necessity to Owns fruits

Q: Distinguish between principle of self-help and state of reimburse the provided he pays
necessity. planter of expenses planter expenses
since the planter for production,
PRINCIPLE OF SELF-HELP STATE OF NECESSITY retains the fruits gathering and
(Art. 544(1)) preservation (Art.
Availed by another person 443)
Invoked by the owner or
Standing Crops
lawful possessor in against someone else’s
Planter in GF Planter in BF
protection of his right to property for the purpose of
Planter Reimbursed for Loses what is built,
prevent other persons averting an imminent danger expenses, for planted or sown
from interfering with the to himself or to another production, without right to
property. person or their property. gathering and indemnity (Art
preservation 449)
(Art.443)
Q: What is a hidden treasure? Entitled to
reimbursement for
A: Any hidden and unknown deposit of money, jewelry orother the necessary
precious objects, the lawful ownership of which doesnot expenses of
appear. preservation of the
land (Art. 452)
Hidden treasures refer to processed items such as deposit Owner Owns fruits Owns fruits (Art.
ofmoney, jewelry, precious objects (gold bar, silver coins). provided he pays 449)
Itdoes not refer to raw materials which are considered of planter expenses
valuewhich are considered as natural resources. for production,
gathering and
Q: State the rule regarding hidden treasure. preservation (Art.
443)
A: G.R.: If owner is finder, it totally belongs to the owner
of theland, building, or other property where it is Rule when the land owner is the builder, planter or sower
found. (1999 BAR)

XPN: If the finder is different from the owner, the Land Owner and Builder,
finder isentitled to 1/2 Owner of Materials
Planter or Sower
Good Faith Good Faith
Q: What are the requisites to be entitled to ½ share?
Acquire building etc. after 1. Receive indemnity for
paying indemnity for value of value of materials; or
A:
materials (Art. 447) 2. Remove materials if w/o
injury to works, plantings
1. Discovery was made on the property of another, or of the
or constructions (Art.
State or any of its political subdivisions;
447)
2. Discovery was made by chance (The finder had no intention
to search for the treasure. There is no agreement between Bad Faith Good Faith
the owner of the property and the finder for the search of Acquire building etc. after 1. Be indemnified for value
the treasure); and paying value of materials AND of materials and
3. He is not a trespasser or agent of the landowner. indemnity for damages, damages; or
subject to the right of the 2. Remove materials, w/ or
NOTE: The state may in the interest of science or arts owner of materials to remove w/o injury and be
acquiresuch hidden treasure at a just price. (Art. 447) indemnified for damages
(Art, 447)
ACCESSION Good Faith Bad Faith
1. Acquire w/o paying 1. Lose materials w/o being
It may be defined as the right pertaining to the owner of a thing indemnity and right to indemnified and pay
over everything which is produced thereby, or which is damages (Art 445 and 449, damages (Art 445 and
incorporated or attached thereto, either naturally or artificially by analogy) 449, by analogy)
(Art. 440). 2. Pay necessary expenses 2. Recover necessary
for preservation (Art. 452 expenses for
He who receives the fruits has the obligation to pay the & 546) preservation of land
expenses made by a third person in their production, gathering without the right to
and preservation. retain the thing until the
indemnity is paid (Art.
NOTE: Only such as are manifest or born are considered as 452 & 546)
natural or industrial fruits. With respect to animals, it is Bad Faith Bad Faith
sufficient that they are in the womb of the mother, although As though both acted in good faith (in pari delicto)
unborn. (Art. 453) (1999 BAR)

Rule if the planter and owner of the land are different Rule when the land owner is NOT the builder, planter or
sower
Gathered Fruits Builder, Planter,
Planter in GF Planter in BF Land Owner Sower and Owner of
Planter Keeps fruits (Art. Reimbursed for Materials
544 (1)) (2008 expenses for Good Faith Good Faith
BAR) production, He can either: (Art. 448) (1992, If the Land Owner:
gathering and 1996, 2000, 2001 BAR) 1. Acquires the
preservation (Art. 1. Acquire improvements after improvements

14
 UST LAW PRE-WEEK NOTES 2018

paying indemnity for: after paying a. Acquire improvements

a. Necessary expenses, indemnity, Builder, improvements without right to
and Planter, or Sower without paying be indemnified
b. Useful expenses has the right to indemnity and collect unless the latter
which could either retain the thing damages (Art. 445 & sells the land (Art.
be: (and cannot be 449) 449)(1996, 2000
a. Original costs of required to pay b. Order the demolition BAR)
improvements rent) until of work or 2. Recover necessary
b. Increase in the value indemnity is paid restoration to former expenses for
of the whole (Art. 443 (Art. 546) condition and collect preservation of
& 546) damages in both land without the
If the useful cases (Art. 450) right to retain the
2. Sell the land to builder and improvements can c. Sell the land to thing until the
planter or collect rent from be removed builder and planter or indemnity is paid
sower unless the value of the without damage to rent it to the sower, (Art. 452 & 546)
land is considerably greater the principal thing, and collect damages 3. Pay damages to
than the building etc., in which the Builder, Planter in both cases (Art. land owner (Art.
case, the builder and planter or Sower may 450) (2008 BAR) 451)
shall pay rent. remove them, 2. Pay necessary expenses for
unless the person preservation (Art. 452 & 546).
The parties shall agree upon who recovers the Bad Faith Good Faith
the terms of the lease and in possession Acquires improvements after 1. Receive indemnity
case of disagreement, the court exercises the other paying indemnity and damages to for improvements
shall fix the terms thereof. (Art. 547 & 447) builder, planter, sower, unless the and receive
latter decides to remove (Art. 454, damages; or
2. Sells the land, 447) 2. Remove them in
Builder or Planter any event and
cannot be obliged He cannot compel the builder receive damages
to buy the land if its planter or sower to buy the land. (Art. 454 & 447).
value is
considerably more The reason why said article (Art.
than that of the 447) applies may be explained as
building or trees. follows:
That if the land owner
In such case, he knew that something was
shall pay being built, planted or
reasonable rent. sown on his land by
another and he did not
The parties shall interpose any objection
agree upon the thereto, it is as if he was
terms of the lease the one building, planting
and in case of or sowing in bad faith on
disagreement, the his own land with
court shall fix the materials belonging to
terms thereof (Art. another, using the owner
448). (1992, 1996, of the materials as his
1999, 2000, 2001 worker (Rabuya, 2008).
BAR) Bad Faith Bad Faith
Good Faith Bad Faith As though both acted in good faith (in pari delicto)
1. The land owner can either: 1. Lose (Art. 453)

Rules when landowner (LO) – builder/planter/sower (BPS)

makes constructions/plantings w/ materials of another (OM):

LANDOWNER-BUILDER/PLANTER/SOWER (LO-BPS) OWNER OF MATERIALS (OM)

A. GOOD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there is full OM is entitled to full payment for value of materials or OM may
payment. remove materials provided there is no substantial injury to work done.
B. BAD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there is full OM is entitled to full payment for value of materials plus damages or
payment plus damages. OM may remove materials even if there will be substantial injury to
work done plus damages.
C. GOOD FAITH BAD FAITH
LO-BPS can acquire the materials without paying for the OM loses materials without indemnity and will be liable for damages
value thereof and will be entitled to damages due to due to defects or inferior quality of materials.
defects or inferior quality of materials.
D. BAD FAITH BAD FAITH
Same as A. Same as A.

Rules when builder/planter/sower (BPS)

builds, plants or sows on the land of another (LO):

LANDOWNER (LO) BUILDER/PLANTER/SOWER (BPS)

A. GOOD FAITH GOOD FAITH
Option 1: To purchase whatever has To receive indemnity for necessary, useful and luxurious expenses (if the LO wants to
been built, planted or sown after appropriate the luxurious improvements) with right of retention over the land without
paying indemnity which includes

15

necessary expenses, useful expenses
and luxurious expenses (if the LO
wants to appropriate the luxurious
improvements).
Option 2: To oblige the BP to buy the
land or the S to pay the proper rent
unless the value of the land is
considerably more than that of the
building or trees.
B. GOOD FAITH
Option 1: To acquire whatever has
been built, planted or sown without
paying indemnity except necessary
expenses for preservation of land and
luxurious expenses (should LO want to
acquire luxurious improvements) plus
damages.
Option 2: To oblige BP to buy land or
S to pay proper rent plus damages.
Option 3: To compel BPS to remove
or demolish work done plus
damages.
C. BAD FAITH
To acquire whatever has been built,
planted or sown by paying indemnity
plus damages.
D. BAD FAITH
Same as A.
CIVIL LAW
obligation to pay rent until full payment of indemnity.
To remove useful improvements provided it does not cause any injury (this is part of
right of retention).
If LO does not appropriate luxurious improvements, BPS can remove the same provided
there is no injury to the principal thing (land or building).
To purchase land at fair market value when value is not considerably more than that of
the building or trees.
If BPS cannot pay purchase price of land, LO can require BPS to remove whatever has
been built, planted or sown.
If the value of land is considerably more than that of the building or trees, BPS cannot be
compelled to buy the land. In such case, BPS will pay reasonable rent if LO does not
choose Option 1.
If BPS cannot pay the rent, LO can eject BPS from the land.
BAD FAITH
Loses whatever has been built, planted or sown without indemnity and liable to pay
damages.
Entitled to reimbursement for necessary expenses for preservation of land but no right of
retention.
Entitled to reimbursement for useful expenses but cannot remove useful improvements
even if removal will not cause injury.
Not entitled to reimbursement for luxurious expenses except when LO wants to acquire
luxurious improvements (value of which will be the one at the time LO enters into
possession).
Entitled to remove luxurious improvements if it will not cause injury and LO does not
want to acquire them.
Obliged to pay for land or proper rent and pay damages.
Obliged to remove or demolish work done at his expense and pay damages.
GOOD FAITH
If LO acquires whatever has been built, planted or sown, BPS must be indemnified the
value thereof plus damages.
(If LO does not acquire whatever has been built, planted or sown, BPS cannot insist on
purchasing land).
BPS can remove whatever has been built, planted or sown regardless of whether or
not it will cause injury and will be entitled to damages.
BAD FAITH
Same as A.
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 UST LAW PRE-WEEK NOTES 2018

Rule when the land owner, builder, planter, sower and owner of materials are different persons

Land Owner Builder, Planter, Sower Owner of Materials

Good Faith Good Faith Good Faith
He shall answer subsidiarily for their Pay value of materials to its owner (Art. 455). 1. Collect value of materials primarily
value and only in the event that the one from builder, planter, sower,
who made use of them has no property and subsidiarily from land owner (Art.
with which to pay (Art. 455). 455) or
If the Land Owner:
and 2. Remove the materials only if w/o
1. Acquires the improvement, Builder, injury to the work constructed, or
He can either: (Art. 448) Planter, or Sower may demand from the without the plantings, constructions
1. Acquire improvements after paying landowner the value of the materials and or works being destroyed (Art. 447).
indemnity for: labor (Art 455).
a. Necessary expenses, and NOTE: Landowner is subsidiarily
b. Useful expenses which could And he has the right to retain the thing liable only if he
either be: (and cannot be required to pay rent) until appropriates/acquires the
a. Original costs of improvements indemnity is paid (Art. 546). improvements.
b. Increase in the value of the
whole (Art. 546 & 443) If the useful improvements can be
2. Sell the land to builder and planter removed without damage to the principal
or collect rent from sower unless thing, the possessor in good faith may
the value of the land is considerably remove them, unless the person who
greater than the building etc., in recovers the possession exercises the
which case, the builder and planter other (Art. 547 & 447)
shall pay rent. 2. Sells the land or rents it, Builder or
Planter cannot be obliged to buy the land
The parties shall agree upon the if its value is considerably more than that
terms of the lease and in case of of the building or trees.
disagreement, the court shall fix the
terms thereof. In such case, he shall pay reasonable rent.

The parties shall agree upon the terms of

Good Faith
Land Owner can either: (Art. 448)
1. Acquire improvements after paying
indemnity for:
a. Necessary expenses, and
b. Useful expenses which could
either be:
a. Original costs of
improvements
b. Increase in the value of
the whole (Art. 546 & 443)
2. Sell the land to builder and planter
or collect rent from sower unless
the value of the land is considerably
greater than the building etc., in
which case, the builder and planter
shall pay rent.
the lease and in case of disagreement, the
court shall fix the terms thereof (Art. 448).
Good Faith Bad Faith
If the Land Owner: 1. Loses materials without right to
indemnity (Art. 449)
1. Acquires the improvement, Builder, 2. Pays damages (Art. 451)
Planter, or Sower has the right to retain
the thing (and cannot be required to pay The builder, planter or sower would be
rent) until indemnity is paid (Art. 546). considered merely an agent of the owner
of materials.
If the useful improvements can be
removed without damage to the Therefore, the provisions of Article 449 of
principal thing, the possessor in good the Civil Code will apply by analogy. He is
faith may remove them, unless the even liable for damages (Rabuya, 2008).
person who recovers the possession
exercises the other (Art. 547).
2. Sells or rents it, Builder or Planter cannot
be obliged to buy the land if its value is
considerably more than that of the
building or trees.

The parties shall agree upon the In such case, he shall pay reasonable
terms of the lease and in case of rent.
disagreement, the court shall fix the
terms thereof. The parties shall agree upon the terms of
the lease and in case of disagreement, the
Without subsidiary liability for cost court shall fix the terms thereof (Art.
of materials 448).Without indemnity to owner of
materials and collects damages from him.
Good Faith Bad Faith Bad Faith
1. Option to: 1. Lose improvements without right to be 1. Recover value from builder, planter,
a. Acquire improvements without indemnified unless the landowner sells the sower (in pari delicto)
paying indemnity and collect land (Art. 449)
damages (Art. 445 & 449) 2. If builder, planter, sower acquired
b. Order the demolition of work 2. Recover necessary expenses for improvements, remove the materials only
or restoration to former preservation of land without the right to if w/o injury to the work constructed, or
condition and collect damages retain the thing until the indemnity is paid without the plantings, constructions or
in both cases (Art. 450) (Art. 452 & 546) works being destroyed (Art. 447)
c. Sell the land to builder and
planter or rent it to the sower, 3. Pay the value of the materials to the 3. No action against land owner; and
and collect damages in both owner of the materials.
cases (Art. 450) 4. May be liable to the land owner for
2. Has right to demand damages from Since both the owner of the materials and the damages (Art. 451)
both (Art. 451) builder, etc. acted in bad faith, as between
3. Pay necessary expenses for them, they are treated as having both acted in

17
 CIVIL LAW

preservation (Art. 452 & 546) good faith (De Leon, 2006)
4. Not subsidiarily liable to the owner
of the materials because as to him, 4. Pay damages to land owner (Art. 451).
the two acted in bad faith (De Leon,
2006)
Bad Faith Bad Faith Bad Faith

Same as though both acted in good faith (in pari delicto) (Art. 453)

Bad Faith Good Faith Good Faith

1. Acquires improvements after paying If he pays the owner of the materials, plants or 1. Collect value of materials primarily
indemnity and damages, unless the seeds: from builder, planter, sower, subsidiarily
latter decides to remove (Art. 454, 447 & from land owner (Art. 455) or
443). i. He may demand from the landowner the
value of the materials and labor (Art 455) 2. Remove the materials in any event,
2. Cannot compel builder, planter and and shall also be obliged to the reparation with a right to be indemnified for damages
sower to buy land. of damages (Art. 447) or (Art. 447)
ii. Remove the materials in any event, with a
right to be indemnified for damages (Art.
454 & 447)
Bad Faith Bad Faith Good Faith
The owner of the land shall answer 1. Collect value of materials primarily
subsidiarily for their value and only in Pay value of materials to its owner (Art. 455) from builder, planter, sower, subsidiarily
the event that the one who made use of from land owner (Art. 455) or
them has no property with which to pay and
(Art. 455) 2. Remove the materials in any event,
If the Land Owner: with a right to be indemnified for damages
and (Art. 447)
1. Acquires the improvement, Builder,
Land Owner can either: (Art. 448) Planter, or Sower may demand from the
landowner the value of the materials and labor
1. Acquire improvements after paying (Art 455)
indemnity for:
a. Necessary expenses, and And he has the right to retain the thing (and
b. Useful expenses which could cannot be required to pay rent) until
either be: indemnity is paid (Art. 546).
i. Original costs of
improvements If the useful improvements can be removed
ii. Increase in the value of the without damage to the principal thing, the
whole (Art. 546 & 443) possessor in good faith may remove them,
unless the person who recovers the possession
2. Sell the land to builder and planter exercises option 2. (Art. 547 & 447)
or collect rent from sower unless the
value of the land is considerably greater 2. Sells or rents it, Builder or Planter cannot
than the building etc., in which case, the be obliged to buy the land if its value is
builder and planter shall pay rent. considerably more than that of the building or
trees.
The parties shall agree upon the terms
of the lease and in case of disagreement, In such case, he shall pay reasonable rent.
the court shall fix the terms thereof.
The parties shall aGRee upon the terms of the
lease and in case of disagreement, the court
shall fix the terms thereof (Art. 448).
Good Faith Bad Faith Good Faith
1. Option to: 1. Lose improvements without right to be 1. Collect value of materials primarily
a. Acquire improvements without indemnified unless the landowner sells the from builder, planter, sower, subsidiarily
paying indemnity and collect land (Art. 449) from land owner (Art. 455) or
damages (Art. 445 & 449).
b. Order the demolition of work 2. Recover necessary expenses for 2. Remove materials in any event if
or restoration to former preservation of land without the right to retain builder, planter, sower acquired materials.
condition and collect damages the thing until the indemnity is paid (Art. 452 &
in both cases (Art. 450). 546)
c. Sell the land to builder and
planter or rent it to the sower, 3. Pay value of materials to its owner plus
and collect damages in both damages (Art. 455)
cases (Art. 450).
2. Pay necessary expenses for 4. Pay damages to land owner (Art. 451)
preservation (Art. 452 & 546).

3. Subsidiarily liable to owner of

materials

Bad Faith Good Faith Bad Faith

1. Acquires improvements after paying If he pays the owner of the materials, plants or 1. Lose materials without right to
indemnity and damages, unless the seeds: indemnity (Art. 449)
builder, planter or sower decides to
remove (Art. 454, 447 & 443). i. He may demand from the landowner the 2. Pay damages (Art. 451)
value of the materials and labor (Art 455)

18
 UST LAW PRE-WEEK NOTES 2018

2. Cannot compel builder, planter and and shall also be obliged to the reparation
sower to buy land. of damages (Art. 447) or
ii. Remove the materials in any event, with a
right to be indemnified for damages (Art.
454 & 447)
The builder, planter or sower would be
considered merely an agent of the owner of
materials.
Therefore, the provisions of Article 449 of
the Civil Code will apply by analogy. He is
even liable for damages (Rabuya, 2008).

Rights of owners over the thing in adjunction

OWNER OF THE PRINCIPAL OWNER OF THE ACCESSORY

Good Faith Good Faith
1. Acquire accessory and pay owner of the accessory for its 1. Receive payment for value of accessory; or
value; or 2. GR:Demand separation provided the thing suffers no injury.
2. Demand separation provided the thing suffers no injury. XPN: If accessory is more precious than principal, he may demand
separation w/ or w/o injury to the thing.
Good Faith Bad Faith
Acquire accessory w/o paying the owner of accessory and Lose accessory and pay damages.
entitled to damages.
Bad Faith Good Faith
1. Pay value of accessory and pay damages; OR 1. Receive payment and damages; or
2. Have the things separated, even though there is injury to 2. Have accessory separated w/ or w/o injury to principal and
the principal and pay damages. receive damages.
Bad Faith Bad Faith
Same as though both acted in good faith.

Rules regarding mixtures

1st Owner 2nd Owner

By Will of Both Owners or by Accident
Good Faith Good Faith
1. Right is subject to stipulations; OR
2. Right is in proportion to the part belonging to him (Co-ownership arises)
By Will of Only 1 Owner/ By Chance
Good Faith Good Faith
1. Have the things separated provided the thing suffers no injury; OR
2. If cannot be separated w/o injury, acquire interest on mixture in proportion to his part (co-ownership)
Bad Faith
Good Faith
(caused the mixture)
1st owner will lose his part on the mixture and pay damages to the 2 nd 2nd owner will acquire entire mixture and entitled to
owner damages
Good Faith
Bad Faith
(caused the mixture)
As if both acted in GF, because the 2nd owner in GF was the one who As if both acted in GF, since the 1st owner is in BF and the
caused the ratification, because the 1st owner 2nd owner who caused the mixture in GF in a way ratifies
the BF of 1st owner.

As if both acted in GF, because the 2nd owner in GF was the one who As if both acted in GF, since the 1st owner is in BF and the
caused the ratification, because the 1st owner 2nd owner who caused the mixture in GF in a way ratifies
the BF of 1st owner.
material.
Respective rights of the maker and the owner of the
materials in specification

Maker (M) Owner of Materials (OM)

Good Faith
GR:Appropriate the thing Receive payment for value of
transformed and pay the materials.
owner of the materials for its
value.
XPN: If the material is more
precious than the thing
transformed, the owner of the
materials has the option to:
1. Acquire the work and
indemnify the maker for
his labor; or
2. Demand indemnity for the
Good Faith
Good Faith Good Faith
1. Receive payment for value 1. Appropriate new thing and
of his work; or pay the maker for the work;
2. Appropriate the new thing or
and pay the owner of 2. Receive payment for value
materials for its value. of materials.
Bad Faith Good Faith
1. Lose the new thing and pay 1. Appropriate the new thing
damages to owner of the without paying and receive
materials; or damages; or
2. Pay value of materials and
damages to owner of the NOTE: Not available if

19
 CIVIL LAW

materials. the new thing is more CO-OWNERSHIP

valuable than materials
for scientific or artistic General rights of each co-owner as to the thing owned in
reasons. common

2. Receive payment for the 1. To use the thing according to the purpose intended
value of materials and provided that:
damages. a. It is w/o prejudice to the interest of the co-ownership;
and
QUIETING OF TITLE TO OR INTEREST IN AND REMOVAL OR b. w/o preventing the use of other co-owners (Art. 486).
PREVENTION OF CLOUD OVER TITLE OT INTEREST IN REAL
PROPERTY 2. To share in the benefits in proportion to his interest,
provided the charges are borne in the same proportion
Q: What are the requisites for quieting of title? (Art. 485).

A: NOTE: A contrary stipulation is void. Hence, benefits

1. Plaintiff must have a legal or equitable title to, or interest
in the real property which is the subject matter of the
action;
2. There must be cloud in such title;
3. Such cloud must be due to some
a. Instrument;
b. Record;
c. Claim;
d. Encumbrance; or
e. Proceeding which is apparently valid but is in truth
invalid, ineffective, voidable or unenforceable, and is
prejudicial to the plaintiff’s title; and
4. Plaintiff must
a. return to the defendant all benefits he may have
received from the latter; or
b. reimburse him for expenses that may have redounded
to his benefit.
NOTE: Legal title denotes registered ownership, while
equitable title means beneficial ownership.
The underlying objectives or reliefs sought in both the quieting-
of-title and the annulment-of-title cases are essentially the same -
adjudication of the ownership of the disputed lot and nullification
of one of the two certificates of title(GUNTALILIB v. DELA CRUZ
DELA CRUZ G.R. No. 200042, July 7, 2016, Second Division,
DEL CASTILLO, J.).
Q: What is the difference between an action to quiet title
and action to remove cloud on title?
A:
ACTION TO REMOVE CLOUD
ACTION TO QUIET TITLE
ON TITLE
To put an end to troublesome For the removal of a possible
litigation with respect to the foundation for a future
property involved hostile claim
A remedial action A preventive action
Involving a present adverse To prevent a future cloud on
claim the title
Q: In an ejectment case filed by Don against Cesar, can the
latter ask for the cancellation of Don's title considering
that he (Cesar) is the rightful owner of the lot? Explain.
(2005 BAR)
A: Cesar cannot ask for the cancellation of Don's title in the
ejectment case filed by Don against him. Under Section 48 of PD
1529, the Property Registration Decree, a Torrents title shall
not be subject to callateral attack. It cannot be altered, modified
or cancelled except in a direct proceeding in accordance with
law. The ejectment proceeding does not provide the proper
forum for the cancellation of Don’s title. While Cesar’s
counterclaim for cancellation of Don’s title may be considered a
direct attack, the same should nevertheless be denied on
procedural grounds because a Municipal or Metropolitan Trial
Court is without jurisdiction to cancel a Torrens title.
cannot be stipulated upon by the co-owners.
3. Each co-owner may bring an action for ejectment (Art.
487).
NOTE: Action for ejectment covers; forcible entry,
unlawful detainer, accion publiciana, quieting of title,
accion reivindicatoria, replevin.
4. To compel other co-owners to contribute to expenses for
preservation of the thing (Art. 488)
5. To oppose to any act of alteration (Art. 491) even if
beneficial to the co-owners
6. To protect against acts of majority which are prejudicial
to the minority (Art. 492, (3))
7. To exercise legal redemption
8. To ask for partition (Art. 494)
9. Right to exempt himself from obligation of paying
necessary expenses and taxes by renouncing his share in
the pro-indiviso interest; but cannot be made if prejudicial
to co-ownership
10. Right to make repairs for preservation of things can be
made at will of one co-owner; receive reimbursement
therefrom; notice of necessity of such repairs must be
given to co-owners, if practicable
11. Right to full ownership of his part and fruits
12. Right to alienate, assign or mortgage own part; except
personal rights like right to use and habitation
13. Right of pre-emption
14. Right to be adjudicated thing (subject to right of others to
be indemnified)
15. Right to share in proceeds of sale of thing if thing is
indivisible and they cannot aGRee that it be allotted to one
of them.
Duties/liabilities of co-owners
1. Share in charges proportional to respective interest;
stipulation to contrary is void
2. Pay necessary expenses and taxes – May be exercised by
only one co-owner
3. Pay useful and luxurious expenses – If determined by
majority
4. Duty to obtain consent of all if thing is to be altered even if
beneficial; resort to court if non-consent is manifestly
prejudicial
5. Duty to obtain consent of majority with regards to
administration and better enjoyment of the thing;
controlling interest; court intervention if prejudicial –
Appointment of administrator
6. No prescription to run in favor of a co-owner as long as he
recognizes co-ownership; requisites for acquisition
through prescription:
a. He has repudiated through unequivocal acts
b. Such act of repudiation is made known to other co-
owners
c. Evidence must be clear and convincing
7. Co-owners cannot ask for physical division if it would
render thing unserviceable; but can terminate co-
ownership.
8. After partition, duty to render mutual accounting of
benefits and reimbursements for expenses.

20
 UST LAW PRE-WEEK NOTES 2018
Q: A, B and C are the co-owners in equal shares of a
residential house and lot. During their co-ownership, the
following acts were respectively done by the co- owners:
1. A undertook the repair of the foundation of the
house, then tilting to one side, to prevent the
house from collapsing.
2. B and C mortgaged the house and lot to secure a
loan.
3. B engaged a contractor to build a concrete fence
all around the lot.
4. C built a beautiful grotto in the garden.
5. A and C sold the land to X for a very good price.
a) Is A’s sole decision to repair the foundation of
the house binding on B and C? May A require
B and C to contribute their 2/3 share of the
expense? Reasons.
b) What is the legal effect f the mortgage
contract executed by B and C? Reasons.
c) Is B’s sole decision to build the fence binding
upon A and C? May B require A and C
tocontribute their 2/3 share of the
expense?Reasons.
d) Is C’s sole decision to build the grotto binding
upon A and B? May C require A and B to
contribute their 2/3 share of the expense?
Reasons.
e) What are the legal effects of the contract of
sale executed by A, C and X? Reasons.
A:
a) Yes. A’s sole decision to repair the foundation is
binding upon B and C. B and C must contribute
2/3 of the expense. Each co-owner has the right
to compel the other co-owners to contribute to
the expense of preservation of the thing (the
house) owned in common in proportion to their
respective interests (Arts. 485 and 488, Civil
Code).
b) The mortgage shall not bind the 1/3 right and
interest of A and shall be deemed to cover only
the rights and interests of B and C in the house
and lot. The mortgage shall be limited to the
portion (2/3) which may be allotted to B and C in
the partiion (Art. 493, Civil Code).
c) B’s sole decision to build the concrete fence is not
binding upon A and C. Expenses to improve the
thing owned in common must be decided upon by
a majority of the co-owners who represent the
contolling interest (Arts. 489 and 492, Civil Code).
d) C’s sole decision to build the grotto is not binding
upon A and B who cannot be required to
contribute to the expenses for the embellishment
of the thing owned in common if not decided
upon by the majority of the co-owners who
represent the controlling interest (Arts. 489 and
492, Civil Code).
e) The sale to X shall not bind the 1/3 share of B and
shall be deemed to cover only the 2/3 share of A
and C in the land (Art. 493, Civil Code). B shall
have the right to redeem the 2/3 share sold to X
by A and C since X is a third person (Art. 1620,
Civil Code).
---
Q: The renunciation by a co-owner of his undivided share
in the co-owned property in lieu of the performance of his
obligation to contribute to taxes and expenses for the
preservation of the property constitutes dacion en pago.
(2009 BAR)
A: TRUE. Under the Civil Code, a co-owner may renounce his
share in the co-owned property in lieu of paying for his share in
the taxes and expenses for the preservation of the co-owned
property. In effect, there is dacion en pago because the co-
owner is discharging his monetary obligation by paying it with
his non-monetary interest in the co-owned property. The fact
that he is giving up his entire interest simply means that he is
21
accepting the value of his interest as equivalent to his share in
the taxes and expenses of preservation.
---
Q: Ambrosio died, leaving his three daughters, Belen,
Rosario and Sylvia a hacienda which was mortgaged to the
Philippine National Bank due to the failure of the
daughters to pay the bank, the latter foreclosed the
mortgage and the hacienda was sold to it as the highest
bidder. Six months later, Sylvia won the grand prize at the
lotto and used part of it to redeem the hacienda from the
bank. Thereafter, she took possession of the hacienda and
refused to share its fruits with her sisters, contending that
it was owned exclusively by her, having bought it from the
bank with her own money. Is she correct or not? (1993,
2000 BAR)
A: Sylvia is not correct. The 3 daughters are the co-owners of
the hacienda being the only heirs of Ambrosio. When the
property was foreclosed, the right of redemption belongs also
to the 3 daughters. When Sylvia redeemed the entire property
before the lapse of the redemption period, she also exercised
the right of redemption of her co-owners on their behalf. As
such, she is holding the shares of her two sisters in the property
and all the fruits corresponding thereto, in trust for them.
Redemption by one co-owner inures to the benefit of all (Adille
v. CA, G.R. No. L-44546, January 29, 1988). Sylvia, however, is
entitled to be reimbursed the shares of her two sisters in the
redemption price.
POSSESSION
---
Q: Distinguish between possession and occupation as these
terms are commonly used in Book II and Book III of the
Civil Code. (1997, 2007 BAR)
A: Possession is a real right, while occupation is one of the
original modes of acquiring ownership and other real rights.
Possession, the holding of a thing or the exercise of a right, does
not in itself constitute ownership. There can be possession
without ownership.
---
Q: What are the modes of acquiring possession (FAMS)
1. By Material occupation (detention) of a thing or the
exercise of a right (quasi-possession). Includes
constitutum possessorium or traditio brevi manu.
2. By Subjection of the thing/right to our will which does not
require actual physical detention or seizure. Includes
traditio longa manu and traditio simbolica..
3. By constructive possession or proper Acts and legal
Formalities such as succession, donation, execution of
public instruments. (Art. 531)
Rights of a possessor
GOOD FAITH BAD FAITH
As to fruits received
Entitled to the fruits received Shall reimburse the fruits
before the possession is received and those which the
legally interrupted legitimate possessor could
have received and shall have
the a right only to necessary
expenses (Art. 546, par. 1) and
expenses in the production,
gathering and preservation of
such fruits (Art. 443)
As to pending fruits
Liable with legitimate None
possessor for expenses of
cultivation and shall share in
the net harvest in proportion
to the time of their possession
As to expenses:
(Necessary expenses)
Right of reimbursement and Right of reimbursement only
retention
(Useful expenses)
Right of reimbursement, None
retention and limited right of
 CIVIL LAW
removal
(Ornamental Expenses)
Shall not be refunded but he Shall not be refunded but he
has a limited right of removal, has a limited right of removal,
i.e. he may remove if the i.e. he may remove if the
principal thing suffers no principal thing suffers no
injury thereby, and if the injury thereby, and if the
lawful possessor does not lawful possessor does not
prefer to refund the amount prefer to retain them by
expended paying its value at the time he
enters into possession
As to liability in case of deterioration or loss
No liability, unless due to his Always liable
fraudulent act or negligence
Possession cannot be recognized in two different personalities
except in case of co-possession when there is no conflict.
Criteria in case there is a dispute of possession of two or
more persons
1. Present/actual possessor shall be preferred
2. If there are 2 possessors, the one longer in possession
3. If the dates of possession are the same, the one with a title
If all of the above are equal, the fact of possession shall be
judicially determined, and in the meantime, the thing shall be
placed in judicial deposit (Art. 538).
The right to possess a property follows the right of ownership;
consequently, it would be illogical to hold that a person having
ownership of a parcel of land is barred from seeking possession
thereof(Spouses EDRALIN v. PHILIPPINE VETERANS BANK,
G.R. No. 168523, March 9, 2011, First Division, DEL
CASTILLO, J.).
A person claiming to be the owner of a property who is in actual
possession thereof have the right to seek reconveyance, which in
effect seeks to quiet title to the property, which does not
prescribe. The reason for this is that one who is in actual
possession of a piece of land claiming to be the owner thereof
may wait until his possession is disturbed or his title is attacked
before taking steps to vindicate his right (PHILIPPINE
NATIONAL BANK v. JUMAMOY and HEIRS OF ANTONIO GO
PACE, G.R. No. 169901, August 3, 2011, First Division, DEL
CASTILLO, J.).
---
USUFRUCT
Rights of the usufructuary as to the thing and its fruits
1. To receive the fruits of the property in usufruct and half of
the hidden treasure he accidentally finds on the property
(Arts. 566, 438)
2. To enjoy any increase which the thing in usufruct may
acquire through accession (Art. 571)
3. To personally enjoy the thing or lease it to another (Arts.
572-577) generally for the same or shorter period as the
usufruct
4. To make such improvements or expenses on the property
he may deem proper and to remove the improvements
provided no damage is caused to the property (Art. 579)
5. To set-off the improvements he may have made on the
property against any damage to the same (Art. 580)
6. To retain the thing until he is reimbursed for advances for
extraordinary expenses and taxes on the capital (Art. 612)
7. To collect reimbursements from the owner for
indispensable extra ordinary repairs, taxes on the capital
he advanced, and damages caused to him
8. To remove improvements made by him if the same will not
injure the property
Rights of the usufructuary as to the usufruct itself
1. To alienate, pledge or mortgage the right of usufruct, even
by GRatuitous title (Art. 572)
2. In a usufruct to recover property/real right, to bring the
action and to oblige the owner thereof to give him the
22
proper authority and the necessary proof to bring the
action (Art. 578).
3. In a usufruct of part of a common property, to exercise all
the rights pertaining to the co-owner with respect to the
administration and collection of fruits or interests.
Exercise acts of ownership by a usufructuary
GR: A usufructuary cannot exercise acts of ownership such as
alienation or conveyance.
XPNs: When what is to be alienated or conveyed is a: (CIA)
1. Consumable property
2. Property Intended for sale;
3. Property which has been Appraised when delivered.
NOTE: If it has not yet been appraised or if it is not a
consumable: return the same quality (mutuum)
Rights of the usufructuary as to advances and damages
The right to be:
1. Reimbursed for indispensable extraordinary repairs made
by him in the amount equal to the increase in value of the
property (Art. 594)
2. Reimbursed for taxes on the capital advanced by him (Art.
597, (2))
3. Indemnified for damages caused by usufructuary to the
naked owner (Art. 581)
EASEMENTS
There can be no easement over another easement because an
easement may be constituted only on a corporeal immovable
property. An easement, although it is a real right over an
immovable, is not a corporeal right. (1995 BAR)
DOMINANT ESTATE SERVIENT ESTATE
Immovable in favor of That property or estate
which, the easement is which is subject to the
established dominant estate
Upon which an obligation
Which the right belongs
rests.
Requisites for easement of right of way (1996, 2005, 2010
BAR)
1. The easement must be established at the point least
prejudicial to the servient estate (Art. 649)
2. Claimant must be an owner of enclosed immovable or with
real right
3. There must be no adequate outlet to a public highway (Art.
649, (1))
4. The right of way must be absolutely necessary not mere
convenience
5. The isolation must not be due to the claimant’s own act (Art.
649)
6. There must be payment of proper indemnity.
Least prejudicial to the servient estate(1996, 2000, 2005,
2010 BAR)
“Least prejudicial” in determining the right of way means it is
the shortest way and the one which will cause the least damage
to the property to the servient estate in favor of the dominant
estate.
Easements are extinguished by (MARINE-CREW) (2001,
2010 BAR)
1. Merger of ownership of the dominant and servient owner
NOTE: The merger must be absolute and complete, not
temporary. In the latter case, there is only suspension of
easement.
2. Annulment of the title to the servitude
3. Redemption aGReed upon
4. Permanent Impossibility to use the easement
 UST LAW PRE-WEEK NOTES 2018
5. Non-user : 10 years
Reckoning point:
a. Discontinuous – counted from the day they ceased to
be used.
b. Continuous – counted from the day an act adverse to
the exercise takes place.
6. Expiration of the term or fulfilment of the resolutory
condition
7. Bad Condition – when either or both estates fall into such a
condition that the easement could not be used but this is a
mere suspension of easement since possibility of use
revives the easement.
8. Resolution of the right of GRantor to create the easement
(as when the vendor a retro redeems the land)
9. Expropriation of the servient estate
10. Waiver by the dominant owner gathered from positive
acts (NCC, Art. 631).
---
An easement of right-of-way may be demanded by the owner of
an immovable or by any person who by virtue of a real right
may cultivate or use the same. However, with respect to
inalienable lands of public domain, without an express
declaration by the State, the land remains to be a property of
public dominion and hence, not susceptible to acquisition by
virtue of prescription. In the absence of such proof of
declaration, a claim of ownership over the subject property
based on prescription necessarily crumbles. Conversely, they
cannot demand an easement of right-of-way (Liwayway
Andres, et al. vs. Sta. Lucia Realty & Development, Inc., G.R.
No. 201405, August 24, 2015, DEL CASTILLO, J.).
NUISANCE
Q: What is the doctrine of attractive nuisance?
One who maintains on his premises dangerous
instrumentalities or appliances of a character likely to attract
children in play, and who fails to exercise ordinary care to
prevent children from playing therewith or resorting thereto, is
liable to a child of tender years who is injured thereby, even if
the child is technically a trespasser in the premises (Jarco
Marketing Corp. v. CA, G.R. No. 129792, December 21, 1999).
---
Q: A drug lord and his family reside in a small bungalow
where they sell shabu and other prohibited drugs. When
the police found the illegal trade, they immediately
demolished the house because according to them, it was a
nuisance per se that should be abated. Can this demolition
be sustained? Explain. (2006 BAR)
A: No, the demolition cannot be sustained. The house is not a
nuisance per se or at law as it is not an act, occupation, or
structure which is a nuisance at all times and under any
circumstances, regardless of location or surroundings. A
nuisance per se is a nuisance in and of itself, without regard to
circumstances.
MODES OF ACQUIRING OWNERSHIP
1. Occupation
2. Law
3. Donation
4. Tradition
5. Intellectual creation
6. Prescription
7. Succession
DONATIONS
Requisites of donation (ACID)
1. Donor must have Capacity to make the donation
2. He must have donative Intent (animus donandi)
3. There must be Delivery in certain cases
4. Donee must Accept or consent to the donation during the
lifetime of the donor and of the donee in case of donation
23
inter vivos (Art. 746); whereas in case of donation mortis
causa, acceptance is made after donor’s death because they
partake of a will (Art. 728)
Reversion in donation
It is a condition established in the deed of donation which has
for its effect the restoration or return of the property donated
to the donor or his estate or in favor of other persons who must
be living at the time of the donation for any cause or
circumstances (Art. 757).If the reversion is in favor of other
persons who are not all living at the time of the donation, the
reversion stipulated shall be void, but the donation shall
remain valid.
Limitations imposed by law in making donations inter
vivos
1. Donor must reserve sufficient means for his support and
for his relatives who are entitled to be supported by him
(Art. 750).
2. Donation cannot comprehend future property except
donations between future husband and wife (See Art. 84
FC).
3. No person may give by way of donation more than he may
give by will
Q: What are the formalities for donation of real/personal
properties?
1. As regards movable property: (1998, 2000, 2007 BAR)
a. With simultaneous delivery of property donated:
i. For P 5,000 or less – May be oral/written
ii. For more than P 5,000 – Written in public or
private document
b. Without simultaneous delivery:
i. The donation and acceptance must be written in
a public or private instrument (Statute of
Frauds), regardless of value. Otherwise, donation
is unenforceable.
2. As regards immovable property:(1993, 2000, 2010 BAR)
a. Must be in a public instrument specifying
i. The property donated and
ii. The burdens assumed by the donee
b. Acceptance may be made:
i. In the same instrument or
ii. In another public instrument, notified to the
donor in authentic form, and noted in both deeds.
Otherwise, donation is void.
Donations prohibited by law (1990, 2000 BAR)
Donations made:(LAW SCRA POP)
1. By individuals, associations or corporations not permitted
by Law to make donations; (Art. 1027)
2. By persons guilty of Adultery or concubinage at the time of
donation; (Art. 739)
NOTE: The action for declaration of nullity may be
brought by the spouse of the donor or donee; and the guilt
of the donor and donee may be proved by preponderance
of evidence.
3. By a Ward to the guardian before the approval of accounts;
(Art. 1027)
4. By Spouses to each other during the marriage or to
persons of whom the other spouse is a presumptive heir.
(Art. 87, FC)
5. Between persons found guilty of the same Criminal
offense, in consideration thereof; (Art. 739)
6. To Relatives of such priest, etc. within the 4th deGRee, or to
the church to which such priest belongs; (Art. 1027)
7. To an Attesting witness to the execution of donation, if
there is any, or to the spouse, parents or children or
anyone claiming under them; (Art. 1027)
8. To the Priest who heard the confession of the donor during
the latter’s last illness, or the minister of the gospel who
 CIVIL LAW

extended spiritual aid to him during the same period; (Art. 2. Extinctive prescription or limitation of actions- loss of
1027) property rights or actions through the possession by
9. To a public Officer or his/her spouse, descendants or another of a thing for the period provided by law or
ascendants in consideration of his/her office; (Art. 739) failure to bring the necessary action to enforce one’s right
10. To a Physician, surgeon, nurse, health officer or druggist with in the period fixed by law. Rights and actions are lost
who took care of the donor during his/her last illness; (Art. by the lapse of time (NCC, Arts. 1106 and 1139).
1027)
NOTE: It is also referred to as prescription of actions,
NOTE: Any person who is forbidden from receiving any statute of limitations, and statute of repose.
donation under Art. 739 cannot be named beneficiary of a life
insurance policy by the person who cannot make any donation Instances when prescription is not allowed
to him (Art. 2012).
NO PRESCRIPTION
Grounds for revocation or reduction APPLICABLE
When it is possessed through a
1. Under Art. 760 crime such as robbery, theft, or
a. Birth of a donor’s child or children (legitimate, estafa.
legitimated, or illegitimate) after the donation, even
though born after his death. NOTE:The person who cannot
b. Appearance of a donor’s child who is missing and invoke the right of prescription is
thought to be dead by the donor. By Offender the offender or person who
c. Subsequent adoption by the donor of a minor child. committed the crime or offense,
2. Under Art. 764 –When the donee fails to comply with any not a subsequent transferee who
of the conditions which the donor imposed upon the did not participate in the crime
donee. or offense, unless the latter knew
the criminal nature of the
3. Under Art. 765 – by reason of ingratitude (EXCLUSIVE) acquisition of the property by the
a. If the donee should commit some offense against the transferor. (NCC, Art. 1133,
person, the honor or the property of the donor, or of Pineda Succession and
his wife or children under his parental authority Prescription, p. 651, 2009)
b. If the donee imputes to the donor any criminal
offense, or any act involving moral turpitude, even
though he should prove it, unless the crime or act has
1. An action to recover a
been committed against the donee himself, his wife or
registered land by the owner
children under his authority
2. Right to petition for the
c. If he unduly refuses him support when the donee is
Registered issuance for the issuance of a
legally or morally bound to give support to the donor
Lands (PD Writ of Possession filed by the
1529) applicant for registered land
Revocation of perfected donations
NOTE:Similarly, an action to
Once a donation is perfected, it cannot be revoked without the
recover possession of a
consent of the donee except on Grounds provided by law (Arts.
registered land never prescribes.
760, 764, 765).
1. Action legal
Obligations of the donee upon the revocation or reduction Imprescriptible
to demand a
of donation right of way
2. To abate a
1. Return the thing or the object of the donation nuisance
2. If the property had already been alienated and could not
be recovered anymore, its value shall be paid to the donor. Action to
The value shall be the price of the property estimated at quiet title if Imprescriptible
the time of the perfection of the donation plaintiff in
3. If the property had been mortgaged, the donor may pay possession
the mortgaged obligations, subject to reimbursement by
the donee (Art. 762).
Applies to both action and
PRESCRIPTION defense.

One acquires ownership and other real rights through the lapse Void NOTE: However, an action to
of time in the manner and under the conditions laid down by contracts annul a voidable contract
law. In the same way, rights and actions are lost by prescription prescribes after 4 years
(NCC, Art. 1106).
Action to As long as the co‐ownership is
Acquisitive and extinctive prescription demand recognized expressly or
partition impliedly (NCC, Art. 494)
1. Acquisitive prescription - the acquisition of right by the
lapse of time under the conditions laid down by law (NCC, NOTE:
Article 1106, par. 1), which may be ordinary or extra- Distinguished
ordinary. from laches
a. Ordinary Acquisitive Prescription- requires possession
of things in good faith and with just title for the time Right of reversion or
fixed by law which is 10 years. reconveyance to the State of the
b. Extraordinary Acquisitive Prescription- the acquisition public properties registered and
of ownership and other real rights without the need of which are not capable of private
title or of good faith or any other condition and would appropriation or private
prescribe in 30 years (De Leon, 2011). Property of acquisition does not prescribe
public
dominion Note: In contrast, where private

24
 UST LAW PRE-WEEK NOTES 2018

property is taken by the provided a decree

Government for public use of adoption is
without first acquiring title issued thereafter
thereto either through From the date an
expropriation or negotiated sale , information was
the owner’s action to recover the Appearance of a received as to the
land or the value thereof does not child believed to 4 years existence or
prescribe. be dead survival of the
child believed to
be dead
Prescription or limitation of actions Non-compliance From the non-
with any compliance with
ACTIONS PRESCRIPTIVE PERIOD 4 years
condition the condition
Recover Movables 8 years (good faith)or 4 imposed
years (bad faith) from the From the time the
time the possession is lost donor had learned
(NCC, Art. 1140, Pineda of the donee’s act
Succession and Act of
1 year of inGRatitude,
Prescription, p. 666, 2009) inGRatitude
provided it was
Recover Immovables 30 years (Recover possible for him
ownership) (NCC, Art. to file an action.
1141)

10 years (Recover real

PART IV – OBLIGATIONS AND CONTRACTS
right of possession) (NCC,
Art. 555 (4), Pineda OBLIGATIONS
Succession and
Prescription, p. 667, 2009) Essential elements of an obligation: (JAPO)
Mortgage Action 10 years from default of
mortgagor (NCC, Art. 1. Juridical tie or vinculum juris or efficient cause
1142) 2. Active subject [creditor (CR) or obligee]
Based on written 10 years 3. Passive subject [debtor (DR) or obligor]
contract 4. Object or prestation
Note: If contract is oral or
quasi, prescriptive period Q: Distinguish briefly but clearly between: Civil obligation
is 6 years (NCC, Art. 1145) and natural obligation. (2015, 2004, 1989 BAR)
Based on obligation 10 years from the time the
created by law right of action accrues A: Civil obligation is a juridical necessity to give, to do and not
to do. It gives the creditor the legal right to compel by an action
in court the performance of such obligation.
10 years from the day
Based on judgment judgment became final
A natural obligation is based on equity and natural law. There is
and executory (NCC, Art.
no legal right to compel performance thereof but if the debtor
1144)
voluntarily pays it, he cannot recover what was paid.
Based upon an injury to 4 years
Note: Civil obligation can be enforced in court while natural
the rights of plaintiff
obligation cannot.
Based on quasi‐delicts 4 years (NCC, Art. 1146)
SOURCES OF OBLIGATIONS
Forcible entry and 1 year
detainer
Q: What are the sources of obligations?
Defamation 1 year (NCC, Art. 1147)
A: The sources of obligations are the following:
All other actions not 5 years (NCC, Art. 1149)
(1) Law;
specified
(2) Contracts;
(3) Quasi-contracts;
Period of prescription of action for revocation or reduction (4) Acts or omissions punished by law; and
of donation (5) Quasi-delicts. (Art. 1157, NCC)
BASIS PRESCIPTIVE RECKONING Q: What are obligations without an agreement”? Give five
PERIOD PERIOD examples of situations giving rise to this type of
From the birth of obligation. (2007 BAR)
Birth of child 4 years
the first child
From birth of the A: “Obligations without an agreement” are obligations that do not arise
legitimated child, from contract such as those arising from:
Legitimation 4 years not from the date (1) delicts;
of marriage of the (2) quasi-delicts;
parents (3) solution indebiti;
From the date the (4) negotiorum gestio; and
recognition of the (5) all other obligations arising from law.
Recognition of child by any
an illegitimate 4 years means 1. Obligation Ex Lege
child enumerated in
Article 712 of the Obligations derived from law are NOT presumed. Only those
Family Code expressly determined in the Code or in special laws are
From the date of demandable and shall be regulated by the precepts of the law
filing of the which establishes them and as to what has not been foreseen
Adoption 4 years
original petition by the provisions of Book IV of NCC (Art. 1158).
for adoption,

25
 CIVIL LAW
What are the characteristics of a legal obligation?
The following are the characteristics of a legal obligation:
1. Does not need the consent of the obligor;
2. Must be expressly set forth in the law creating it and not
merely presumed; and
3. In order that the law may be a source of obligation, it
should be the creator of the obligation itself (NCC, Art.
1158).
2. Obligation Ex Contractu
What are the requisites of a contractual obligation?
The following are the requisites of a contractual obligation:
1. It must contain all the essential requisites of a contract
(NCC, Art. 1318).
2. It must not be contrary to law, morals, good customs,
public order, and public policy (NCC, Art. 1306).
What rules govern the obligations arising from contracts?
GR:These obligations arising from contracts shall be governed
primarily by the stipulations, clauses, terms and conditions of
the parties’ agreements.
XPN: Contracts with prestations that are unconscionable or
unreasonable (Pineda, 2009).
What is the principle of autonomy of will?
It is that principle which states that obligations arising from
contracts have the force of law between the contracting parties
and should be complied with in good faith (NCC, Art. 1159).
Q: Can damages suffered by a party during the period of
negotiations be recovered, if the contract is not finally
perfected?
YES. This is a case of a “pre-contractual obligation”. The offer,
however, must be clear and definite, thus leading the offeree in
good faith to incur expenses in the expectation of entering into
the contract; and the withdrawal of the offer must be without
any legitimate cause.
3. Obligation Ex Quasi- Contractu
Q: What is a quasi-contract?
A: A quasi-contract is a juridical relation which arises from
certain lawful, voluntary, and unilateral acts, to the end that no
one may be unjustily enriched or benefited at the expense of
another. The act giving rise to quasi-contract must be lawful,
thereby distinguishing it from crime, in which the act or
omission is unlawful; it must be voluntary, thus differentiating
it from quasi-delict, which is based on fault or negligence or
mere lack of foresight; and it must be unilateral, to distinguish
it from contract in which there are two parties who come to an
agreement.
What are the characteristics of a quasi-contract?
1. It must be lawful
2. It must be voluntary
3. It must be unilateral (Pineda, 2000)
What does the concept of presumptive consent mean?
It means that since a quasi-contract is a unilateral contract
created by the sole act(s) of the gestor, there is no express
consent given by the other party. The consent needed in a
contract is provided by law through presumption (Pineda,
2000).
4. Obligations Ex Delicto
1. What is the extent of civil liability arising from crimes?
(IRR)Restitution
2. Reparation for damage caused
3. Indemnity for consequential damages (Art. 104, RPC)
26
Q: What amount of proof or evidence is required in order
to recover on civil liability arising from a crime?
A: IT DEPENDS. If the claim is made in a criminal case, then the
proof of the facts giving rise to the liability must be beyond
reasonbale doubt; this deGRee of proof is necessary for the
conviction of the accused, and unless there is a judgment of
conviction, there can be no pronouncement of civil liability in
the criminal case. But if the claim for indemnity is made in a
civil case, a mere preponderance of evidence is necessary.
Q: What is the effect of the acquittal of the accused in a
criminal case to his civil liability arising from said crime of
which he is charged?
A: When the accused in a criminal prosecution is acquitted on
the Ground that his guilt has not been proven beyond
reasonable doubt, a civil action for damages for the same act or
omission may be instituted. Such action requires only
preponderance of evidence (NCC, Art. 29).
But where the judgment of acquittal contained a declaration
that no negligence can be attributed to the accused and that the
fact from whih the civil action might arie did not exist, such
acquittal in the criminal action carried with it extinction of civil
responsibility arising therefrom (Catillo v. CA, 176 SCRA 591).
5. Obligations Ex Quasi- Delicto
Q: What is a quasi-delict?
A: A quasi-delict is a separate legal institution under the Civil
Code entirely apart and independent from a delict or crime.
Whoever by act or omission causes damage to another, there
being fault or negligence, is obliged to pay for the damage done.
Such fault or negligence, if there is no pre-existing contractual
relation is called a quasi-delict.
What are the elements of a quasi-delict(DANC)
1. Negligent or wrongful act or omission;
2. Damage or injury caused to another;
3. Causal relation between such negligence or fault and
damage;
4. No pre-exisitng contractual relationship between the
parties (NCC, Art. 2176).
NATURE AND EFFECTS OF OBLIGATIONS
In obligations to give, what are the different rights which
are available to the creditor?
We must distinguish between the rights which are available to
the creditor when the obligation is determinate and those
which are available to him when the obligation is indeterminate
or generic.
If the obligation is determinate in the sense that the object
thereof is particularly designated or physically seGRegated
from all others of the same class, the rights of the creditor are:
1. To compel specific performance (NCC, Art. 1165, par.1)
2. To recover damages in case of breach of the obligation (NCC,
Art. 1170).
If the obligation is indeterminate or generic, the rights of the
creditor are:
1. To ask for performance of the obligation (NCC, Art. 1246)
2. To ask that the obligation be complied with at the expense
of the debtor (NCC, Art. 1165, par. 2)
3. To recover damages in case of breach of the obligation
(NCC, Art. 1170)
1. Delay (Mora)
What are the requisites of delay (mora)?
1. Obligation must be due, demandable and liquidated;
2. Debtor fails to perform his positive obligation on the date
agreed upon;
 UST LAW PRE-WEEK NOTES 2018

3. A judicial or extra-judicial demand made by the creditor

Default or delay begins Delay by the other party
upon the debtor to fulfill, perform or comply with his from extrajudicial or begins from the moment
obligation; and judicial demand – mere one of the parties fulfills
4. Failure of the debtor to comply with such demand. Time of expiration of the period his obligation.
delay fixed is not enough in
2. Mora Solvendi order that debtor may
incur delay.
What are the requisites of mora solvendi?

The following are its requisites: a. The obligation or the When different dates for
1. Obligation pertains to the debtor; law expressly so the performance of
2. Obligation is determinate, due and demandable, and dictates; obligation is fixed by the
liquidated; parties.
3. Obligation has not been performed on its maturity date; b. Time is of the
4. There is judicial or extrajudicial demand by the creditor; essence;
(Pineda, 2009)
XPNs c. Demand would be
When shall demand by the creditor be not necessary in useless, as debtor has
order that delay may exist? rendered it beyond his
power to perform; or
In the following instances:
d. Debtor has
1. When the obligation or the law expressly so declares; or acknowledged that he
2. When from the nature and the circumstances of the is in default.
obligation it appears that the designation of time when the
thing is to be delivered or the service is to be rendered was 5. Fraud
a controlling motive for the establishment of the contract;
or NOTE:
3. When demand would be useless, as when the obligor has - Fraud is the deliberate and intentional evasion of the
rendered it beyond his power to perform [Art. 1169 (2), faithful performance of the obligation.
NCC]. - Any waiver of an action for future fraud is void. (NCC,
1171)
What are the effects of mora solvendi? - If fraud was already committed by the debtor, the
creditor may forgive him by disregarding such fraud
The following are its effects: (1966 Bar)

1. Debtor may be liable for damages or interests; What are the kinds of fraud under the Civil Code?
2. When the obligation has for its object a determinate thing,
the debtor may bear the risk of loss of the thing even if the The following are the kinds of fraud under the Civil Code.
loss is due to fortuitous event; and
3. Rescission or resolution. Basis Fraud in the Fraud in the
performance perfection
3. Mora Accipiendi Time of It occurs after the It occurs before or
occurrence valid execution of simultaneous with
What are the requisites of mora accipiendi? (CPR) the contract. It is the creation or
The following are its requisites: employed in the perfection of the
1. Offer of Performance by a capacitated debtor; performance of a obligation;
2. Offer must be to Comply with the prestation as it should be pre-existing
performed; and obligation;
3. Refusal of the creditor without just cause. Consent Consent is free and Consent is vitiated
not vitiated; by serious
What are the effects of mora accipiendi? (CPR)
deception or
misrepresentation;
The following are its effects:
Effect It is not a Ground It is a Ground for
1. Responsibility of debtor is limited to fraud and GRoss
for annulment of annulment of the
negligence
the contract; contract;
2. Debtor is exempted from risk of loss of thing; creditor
Remedy Action for damages Action for
bears risk of loss
only. annulment with
3. Expenses by debtor for preservation of thing after delay is
damages.
chargeable to creditor
4. If the obligation bears interest, debtor does not have to pay
What are the different classes of fraud in the perfection?
it from time of delay
5. Creditor liable for damages
6. Debtor may relieve himself of obligation by consigning the They are the following:
thing
Basis Dolo causante Dolo incidente
4. Compensatio Morae Nature It is the efficient It is not the
cause to the giving efficient cause for
What are the rules on Compensatio Morae? of consent to the the giving of
contract; consent to the
The following are the rules on compensatio morae: contract;
Effect It renders the It does not affect
contract voidable; the validity of the
Reciprocal contract;
Unilateral Obligations
Obligations Remedy Annulment with Contract remains
damages. valid. Remedy is
claim for damages
only.

27
 CIVIL LAW

What are the remedies of the defrauded party? 2. Compensatory Interest- interest as damages

He may avail of the following remedies: The imposition of an unconscionable rate of interest on a money debt,
1. Specific performance (NCC, Art. 1233) even if knowingly and voluntarily assumed, is immoral and unjust. It is
2. Resolution of the contract (NCC, Art. 1191) tantamount to a repugnant spoliation and an iniquitous deprivation of
3. Damages, in either case property, repulsive to the common sense of man. (Spouses Castro v
Tan, G.R. No. 168940, 24 November 2009)
What are the subsidiary remedies?
KINDS OF OBLIGATIONS
1. Accion subrogatoria- case against the debtor’s debtor
2. Accion Pauliana- creditor will impugn the acts of debtor 1. Pure and Conditional Obligations
that is in fraud of creditors
3. Accion directa –direct action against third persons
Q: What is a pure obligation?
4. On generic obligation – The obligation is not extinguished
A: An obligation whose performance does not depend upon a
6. Fortuitous Event (2002, 2008 BAR)
future or uncertain event, or upon a past event or upon a past
event unknown to the parties, demandable at once (NCC, Art.
What are the requisites in order that an event be 1179).
considered fortuitous? (CODE)
Q: What is a conditional obligation?
The following are the requisites:
1. Cause of breach is independent of the will of the debtor;
A: An obligation subject to a condition and the effectivity of
2. The Event is unforeseeable or unavoidable;
which is subordinated to the fulfillment or non-fulfillment of a
3. Occurrence renders it absolutely impossible for the debtor
future and uncertain event, or upon a past event unknown to
to fulfill his obligation in a normal manner - impossibility
the parties (Pineda, 2009).
must be absolute not partial, otherwise not force majeure;
and
Q : What is a potestative Condition?(1997, 2000, 2003
4. Debtor is free from any participation in the agGRavation of
BAR)
the injury to the creditor.
A: A condition which depends upon the will of one of the
The fortuitous event must not only be the proximate cause but
contracting parties (NCC, Art. 1182).
it must also be the only and sole cause. Contributory negligence
of the debtor renders him liable despite the fortuitous event What are the effects of fulfillment of the suspensive
(Pineda, 2000). If the negligence was the proximate cause, the condition? (1999 BAR)
obligation is not extinguished. It is converted into a monetary
obligation for damages.
The following are its effects in:
1. Real obligations
Q: Is there a liability for loss due to fortuitous event?
GR:Retroacts to the day of the constitution of the
A:
obligation.
XPNs: There is no retroactive effect with respect to the
GR: There is no liability for loss in case of fortuitous event.
fruits and interest:
XPNs:
a. In reciprocal obligations, the fruits and interests shall
1. Law
be deemed to have been mutually compensated;
2. Nature of the obligation requires the assumption of risk
b. In unilateral obligations, the debtor appropriates the
3. Stipulation
fruits and interest received before the fulfillment of
4. The debtor is guilty of dolo, malice or bad faith, has
the condition unless from the nature and
promised the same thing to two or more persons who does
circumstances of the obligation it should be inferred
not have the same interest (NCC, Art. 1165) that the intention of the person constituting the same
5. The debtor contributed to the loss (Tan v. Inchausti & Co.,
was different (NCC, Art. 1187)
G.R. No. L-6472, March 7, 1912)
6. The possessor is in bad faith (NCC, Art. 552)
2. Personal obligations- the court determines the retroactive
7. The obligor is guilty of fraud, negligence or delay or if he
effect of the condition fulfilled (NCC, Art. 1187)
contravened the tenor of the obligation (Juan Nakpil v.
United Construction Co., Inc. v. CA, G.R. No. L-47851, April 15,
What are the effects of fulfillment of resolutory condition?
1988)
The following are its effects in:
What are the effects of fortuitous events?
1. Real obligations:
1. On determinate obligation – The obligation is extinguished
a. The parties shall return to each other what they have
2. On generic obligation – The obligation is not extinguished
received (mutual restitution).
b. Obligation is extinguished.
Liability to Pay Interest
c. In case of loss, deterioration or improvement of the
thing, Art. 1189, with respect to the debtor, shall be
Q. What are the requisites so a creditor may compel the
applied to the party who is bound to return (NCC, Art.
payment of interest in an obligation arising from
1190).
contracts?
2. Personal obligations – the courts shall determine, in each
case, the retroactive effect of the condition that has been
A.
complied with (NCC, Art. 1187; Art. 1190).
1. There is an agreement that the interest shall be earned
2. The agreement that interest shall be due shall be expressly
2. Obligations With a Period
stipulated in writing; and
3. The rate of interest must not be usurious or excessive or
Q: What are the rules in an obligation with a period or a
unconscionable.
term?
Q. What are the kinds of Interest?
A:GR: Whenever in an obligation a period is designated, it is
presumed to have been established for the benefit of both the
A.
creditor and the debtor
1. Monetary Interest- compensation for the use of money

28
 UST LAW PRE-WEEK NOTES 2018

XPN: When it appears from the tenor of the period or other liability to debtor
circumstances that it was established for the benefit of one of The creditor shall
the parties (NCC, Art. 1196). have the right of
indemnity for
What are the effects of the term/period? When substitution damages when,
has been made and through the fault of
1. When it is for the benefit of the creditor – Creditor may communicated to the debtor, all the
demand the performance of the obligation at any time but the creditor, the things which are
the debtor cannot compel him to accept payment before Liability of the
obligor is liable for alternatively the
the periode expires (e.g. “on demand”) debtor
the loss of the object of the
2. When it is for the benefit of the debtor – Debtor may oppose thing on account of obligation have
any premature demand on the part of the creditor for delay, negligence been lost or the
performance of the obligation, or if he so desires, he may or fraud compliance of the
renounce the benefit of the period by performing his obligation has
obligation in advance (Manresa). become
impossible.
Q: In what instances may the court fix the period for the If one prestation is
parties? (1991, 1997, 2003 BAR) If principal void, the others
obligation is void, that are free from
A: In the following instances: Void prestation the creditor cannot any vices of
1. If the obligation does not fix a period, but from its nature compel delivery of consent preserve
and circumstances it can be inferred that a period was the substitute the validity of the
intended by the parties. obligation
2. If the duration of the period depends upon the will of the If some prestations
debtor. (1997, 2003 BAR) If there is
are impossible to
3. In case of reciprocal obligations, when there is a just cause impossibility to
perform except
for fixing the period. deliver the
one - this one must
4. If the debtor binds himself when his means permit him to principal thing or
Impossibility of be delivered.
do so. prestation, the
prestation If all prestations
NOTE: Once fixed by the courts, the period cannot be changed obligation is
are impossible to
by the parties. extinguished, even
perform, the
if the substitute
obligation is
Period distinguished from Condition obligation is valid
extinguished
Loss of the Where the choice
Period Condition substitute before is given to the
Involves a future and certain Involves a future and the substitution is creditor, the loss of
time or event uncertain event made through the the alternative
Suspensive period affects Suspensive condition affects Loss of substitute
fault of the debtor through the fault of
only the demandability of the birth of the obligation doesn’t make him the debtor renders
the obligation and not merely its liable him liable for
demandability damages
Generally, no retroactive With retroactive effect
effect Q: What are the effects of loss of objects in alternative
The obligation is still The obligation is vid if the obligations?
exisiting if the period condition depends upon the
depends upon the will of the will of the obligor A:
obligor DUE TO FORTUITOUS DUE TO DEBTOR’S
EVENT FAULT
3. Alternative Obligations Choice Belongs to Debtor
All are Debtor released from Creditor shall have a
Q: Distinguish between facultative obligations and lost the obligation right to be indemnified
alternative obligations. for damages based on
the value of the last
A: thing which
BASIS FACULTATIVE ALTERNATIVE disappeared/ last
OBLIGATIONS OBLIGATIONS service which became
Number of Only one object is Several objects are impossible
prestation due due Some but Debtor shall deliver Debtor shall deliver that
May be complied May be complied not all are that which he shall which he shall choose
Manner of with by with by fulfilling lost choose from among from among the
compliance substitution of one any of those the remainder remainder without
that is due alternately due damages
GR: Choice pertain Only one Deliver that which remains
to debtor remains
Choice pertains Choice Belongs to Creditor
Right to choose XPN: Expressly All are Debtor released from Creditor may claim the
only to debtor
GRanted to lost the obligation price/value of any of
creditor or third them with indemnity for
person damages
Fortuitous loss of Some but Creditor may choose Creditor may claim any
Fortuitous loss
Effect of all prestation will not all are from among the of those subsisting OR
extinguishes the
fortuitous loss extinguish the lost remainder or that he may choose any of
obligation
obligation which remains if only those were lost, but it is
Culpable loss one subsists the price/value of with
Culpable loss of
obliges the debtor right to damages that
Effect of culpable any object due will
to deliver can be claimed
loss give rise to liability
substitute Only one Deliver that which remains. In case of fault of
to debtor
prestation without remains debtor, creditor has a right to indemnity for

29
 CIVIL LAW

damages
Note: The enforcement of a penalty is not an alternative
4.Joint and Solidary Obligations obligation which can be chosen by the debtor.

What are the consequences of a joint obligation? A contract of lease may provide for a forfeiture clause-a
provision that allows the lessor to forfeit in its favor advance
The following are its consequences: rentals and deposits of the lessee deserts or vacates the
1. Each debtor is liable only for a proportionate part of the premises.
entire debt
2. Each creditor, if there are several, is entitled only to a EXTINGUISHMENT OF OBLIGATIONS
proportionate part of the credit
3. The demand made by one creditor upon one debtor, Q: What are the Principal modes of extinguishment of
produces effects of default only as between them obligations? (PaLoCo3N)
4. Interruption of prescription caused by the demand made
by one creditor upon one debtor, will NOT benefit the co- A: They are the following:
creditors or the co-debtors 1. Payment or performance
5. Insolvency of a debtor will not increase the liability of his 2. Loss of the thing due
co-debtor 3. Condonation or remission of debt
6. Vices of each obligation emanating from a particular 4. Confusion or merger
debtor or creditor will not affect the others 5. Compensation
7. In indivisible or joint obligation, the defense of res judicata 6. Novation (Art. 1231)
of one does not extend to the others.
Other Modes (PARF)
What are the rules in solidary obligations? 7. Annulment
8. Rescission
The rules are the following: 9. Fulfillment of a resolutory condition
1. Anyone of the solidary creditors may collect or demand 10. Prescription (Art. 1231)
payment of the whole obligation; there is mutual agency
among solidary debtors (NCC, Arts. 1214, 1215). NOTE: The enumeration is not exclusive.
2. Any of the solidary debtor may be required to pay the 1. Payment or Performance
whole obligation; there is mutual guaranty among solidary
debtors (NCC,Arts. 1216, 1217, 1222). Q: What is meant by payment?
3. Each one of solidary creditors may do whatever maybe
useful to the others, but not anything prejudicial to them A:Payment is the fulfilment of the prestation due, a fulfilment
(NCC, Art. 1212); however, any novation, compensation, that extinguishes the obligation by the realization of the
confusion or remission of debt made by any solidary purposes for which it is constituted (Jurado, 2010). (1998,
creditors or with any of the solidary debtors shall 2009 BAR)Payment may consist not only in the delivery of
extinguish the obligation without prejudice to that solidary money but also the giving of a thing (other than money), the
creditor’s liability for the shares of other solidary creditors doing of an act, or not doing of an act (NCC, Art. 1232).
(NCC. Art. 1215; Art. 1219).
What are the requisites of a valid payment? (P3AD)
NOTE: Solidarity is never presumed. There is solidary liability
only when: The following are its requisites:
1. Capacity of the Person who pays
1. The obligation expressly so states; 2. Capacity of the Person to whom payment is made
2. The law expressly provided for solidarity; 3. Propriety of the time, place, and manner of payment
3. The nature of the obligation requires solidarity (Art. 1207); 4. Acceptance of the payment by the creditor
and 5. Delivery of the full amount or the full performance of the
4. A solidary responsibility is imposed by a final judgment prestation
upon several defendants (Tolentino, 2002).
Who may effect payment and compel the creditor to accept
5. Divisible and Indivisible Obligations the payment?

Q: What is the test of divisibility of the obligation? The following persons:

1. Debtor himself
A: The test is: whether or not the prestation is susceptible of 2. His heirs and assigns
partial performance, in the sense of the possibility of realizing 3. His agents and representatives
the purpose which the obligation seeks to obtain. If a thing 4. Third persons who have a material interest in the
could be divided into parts and as divided, its value is impaired fulfilment of the obligation
disproportionately, that thing is indivisible (Pineda, 2009).
Q: What is the rule in case payment is made by third
What are the Effects of illegality of a part of a contract? persons?

1. Divisible contract – illegal part is void and unenforceable. A: GR: The creditor is not bound to accept payment or
Legal part is valid and enforceable (NCC, Art. 1420). performance by a third person.
2. Indivisible contract – entire contract is indivisible and
unenforceable. XPNs:
1. When made by a third person who has interest in the
6. Obligations with a Penal Clause fulfillment of the obligation
GR:The creditor cannot demand the fulfillment of the 2. Contrary stipulation (NCC, Art. 1236)
obligation and the satisfaction of the penalty at the same time
(NCC, Art. 1227). Q: What are the rights of a third person who made the
payment?
XPNs:
1. When the right has been clearly GRanted to him; A: The following are his/her rights:
2. If the creditor has decided to require the fulfillment of the 1. If the payment was made with knowledge and consent of the
obligation, the performance thereof should become impossible debtor:
without his fault, the penalty may be enforced (NCC, Art. 1227).

30
 UST LAW PRE-WEEK NOTES 2018
a. Can recover entire amount paid (absolute
reimbursement)
b. Can be subrogated to all rights of the creditor.
2. If the payment was made with without knowledge or against
the will of the debtor – can recover only insofar as payment
has been beneficial to the debtor (right of conditional
reimbursement)
Q:To whom may payment be made?
A: Payment may be made to:
1. The person in whose favor the obligation has been
constituted
2. His successor in interest, or
3. Any person authorized to receive it (NCC, Art. 1240).
Q: What is the rule is payment was made to an
unauthorized person?
A: GR: Payment to an unauthorized person is not a valid
payment (NCC, Art. 1241).
Payment made by the debtor to a wrong party does not
extinguish the obligation as to the creditor, if there is no fault or
negligence which can be imputed to the latter (Allied Banking
Corp. v. Wan, et al., G.R. No. 133179, March 27, 2008).
XPNs:
1. Payment to an incapacitated person if:
a. He kept the thing delivered, or
b. It has been beneficial to him (Art. 1241)
2. Payment to a third person insofar as it redounded to the
benefit of the creditor
Benefit to the creditor need not be proved: (RRE)
a. If after the payment, the third person acquires the
creditor’s Rights (Assignment);
b. If the creditor Ratifies the payment to the third
person (Ratification);
c. If by the creditor’s conduct, the debtor has been led
to believe that the third person had authority to
receive the payment (Estoppel) (NCC, Art. 1241).
3. Payment in good faith to the possessor of credit (NCC, Art.
1242)
Payment made to the creditor by the debtor after the latter has
been judicially ordered to retain the debt shall not be valid
(NCC, Art. 1243).
Special Forms of Payment
Dation in Payment
Dacion en pago is the delivery and transmission of ownership of
a thing by the debtor to the creditor as an accepted equivalent
of the performance of an existing obligation. It is a special mode
of payment where the debtor offers another thing to the
creditor who accepts it as equivalent to the payment of an
outstanding debt (Oscar Villarta v. Gaudioso Talavera Jr., G.R.
No. 208021, February 3, 2016).
Application of Payment
Designation of the particular debt being paid by the debtor who
has two or more debts or obligations of the same kind in favor
of the same creditor to whom the payment is made (Pineda,
2009).
Payment by Cession
Debtor cedes his property to his creditors so the latter may sell
the same and the proceeds realized applied to the debts of the
debtor (Pineda, 2009).
Tender of Payment
Voluntary act of the debtor whereby he offers to the creditor
for acceptance the immediate performance of the former’s
obligation to the latter. It is an antecedent of the consignation,
that is an act preparatory to the consignation (Pineda, 2009).
Consignation
Act of depositing the object of the obligation with the court or
competent authority after the creditor has unjustifiably refused
31
to accept the same or is not in a position to accept it due to
certain reasons or circumstances. It generally requires a prior
tender of payment (Pineda, 2009).
---
Q: Chan, owner of a three story commercial building,
entered into a lease contract with Philippine National Bank
for five years. Upon expiration of the lease, PNB continued
to lease the property on a monthly basis.. Chan executed a
Deed of Assignment over the rental payments in favor of
PNB. However, PNB failed to pay its monthly rentals and it
also explained that it received a demand letter from a
certain Chua who claimed to be the new owner of the
leased property and requested that the rentals be paid
directly to him. PNB thus deposited the rentals in a
separate non-drawing savings account for the benefit of
the rightful party. Is there a proper consignation made by
PNB?
A: NO. PNB's deposit of the subject monthly rentals in a non-
drawing savings account is not the consignation contemplated
by law, precisely because it does not place the same at the
disposal of the court. Consignation is necessarily judicial; it is
not allowed in venues other than the courts. (PNB v. Chan, GR
No. 206037, 13 March 2017)
---
2. Loss of the Things Due
Q: When is a thing is considered lost? (DOPE)
A: A thing is considered lost if:
1. It Disappears in such a way that its existence is unknown;
2. It goes Out of commerce;
3. It Perishes; or
4. Its Existence is unknown or if known, it cannot be
recovered.
Q: What are the effects of loss of the thing/object of the
obligation?
A: If the obligation is a:
1. Determinate obligation to give:
GR:The obligation is extinguished when the object of the
obligation is lost or destroyed (NCC, Art. 1262).
XPNs: (LAS-CD-PCG)
a. Law provides otherwise (NCC, Art. 1262)
b. Nature of the obligation requires the Assumption of
risk (Ibid)
c. Stipulation to the contrary (Ibid)
d. Debtor Contributed to the loss (Ibid)
e. Loss the of the thing occurs after the debtor incurred
in Delay (Ibid)
f. When debtor Promised to deliver the same thing to
two or more persons who do not have the same
interest (Art. 1165)
g. When the debt of a certain and determinate thing
proceeds from a Criminal offense (NCC, Art. 1268)
h. When the obligation is Generic (NCC, Art. 1263)
2. Generic obligation to give:
GR: The obligation is not extinguished because a generic
thing never perishes (genus nun guam perit)(NCC, Art.
1263).
XPNs:
a. In case of generic obligations whose object is a
particular class or GRoup with specific or determinate
qualities (delimited generic obligation)
b. In case the generic thing has already been seGRegated
or set aside, in which case, it has become specific.
3. An obligation to do – the obligation is extinguished when
the prestation becomes legally or physically impossible
without the fault of the obligor (NCC, Art. 1266).
Q: What are the effects of partial loss?
 CIVIL LAW

co- debtors for the latter’s individual contribution or liability

A:
1. Due to the fault or negligence of the debtor – Creditor has
the right to demand the rescission of the obligation or to
demand specific performance, plus damages, in either case.
2. Due to fortuitous event:
a. Substantial loss – obligation is extinguished.
b. Unsubstantial loss – the creditor shall deliver the
thing promised in its impaired condition (Art. 1264).
(Pineda, 2000).
Q: When is confusion or merger of rights revoked?
A: If the act which created the confusion is revoked for some
causes such as rescission of contracts, or nullity of the will or
contract, the confusion or merger is also revoked. The subject
obligation is revived in the same condition as it was before the
confusion.

Q: What are the effects when the thing is lost in the NOTE: During such interregnum, the running of the period of
possession of the debtor? prescription of the obligation is suspended (Pineda, 2000).

A: GR: It is presumed that loss is due to debtor’s fault. 5. Compensation

XPN: Presumption shall not apply in case loss is due to Q: What are the requisites of compensation (1998, 2002,
earthquake, flood, storm or other natural calamity (Art. 1262) 2008, 2009 BAR)

XPN to the XPN: Debtor still liable even if loss is due to
fortuitous event when:
1. Debtor incurred in delay; or
2. Debtor promised to deliver the thing to two or more
persons with different interests [NCC, Art. 1165 (3)]?
3. Condonation and Remission of Debt (2000 BAR)
Q: What are the requisites of condonation?
A: Its requisites are the following:
1. Renunciation of the debt is purely GRatuitous;
2. Acceptance by the debtor;
3. Must not be inofficious;
4. Formalities provided by law on donations must be
complied with if condonation is express; and
5. An existing demandable debt.
Q: What is the effect of the remission of the principal debt
with respect to the accessory obligation and vice versa?
A: The renunciation of the principal debt shall extinguish the
accessory but the waiver of the latter shall leave the former in
force (NCC, Art. 1273).
A: They are the following:
1. Each one of the obligors must be bound principally, and
that he be at the same time a principal creditor of the other
except guarantor who may set up compensation as regards
what the creditor may owe the principal (NCC, Art. 1279,
1280);
2. Both debts consist in sum of money, or if the things due are
consumable, they be of the same kind and also of the same
quality if the latter has been stated;
3. Both debts are due;
4. Both debts are liquidated and demandable;
5. Neither debt must be retained in a controversy
commenced by third person and communicated in due
time to the debtor (neither debt is garnished) (NCC, Art.
1279).
When all the requisites mentioned in Art. 1279 of the Civil Code
are present, compensation takes effect by operation of law, and
extinguishes both debts to the concurrent amount, even though
the creditors and debtors are not aware of the compensation
(NCC, Art. 1290).
6. Novation

4. Confusion or Merger of Rights Q: What are the requisites of novation?

Q: What are the requisites of confusion or merger of rights?
A: They are the following:
1. Merger in the same person of the characters of both a
creditor and debtor (Art. 1275);
2. Must take place in the persons of a principal creditor and a
principal debtor(Art. 1276); and
3. Merger is definite and complete.
Q:What is the effect of confusion or merger of rights?
A:They are the following:
1. Valid old obligation
2. Intent to extinguish or to modify the old obligation
3. Capacity and consent of all the parties to the new
obligation (except in case of expromission where the old
debtor does not participate)
4. Substantial difference of the old and new obligation – on
every point incompatible with each other (implied
novation)
5. Valid new obligation

A: The obligation is extinguished from the time the characters Novation is never presumed, it must be proven as a fact
of creditor and debtor are merged in the same person (NCC, Art. either by:
1275).
1. Explicit declaration – if it be so declared in unequivocal
Q: What is the effect of confusion or merger in one debtor terms; or
or creditor in a joint obligation? 2. Material incompatibility – that the old and the new
obligations be on every point incompatible with each other
A: (Art. 1292).
GR: Joint obligation is not extinguished since confusion is not
definite and complete with regard to the entire obligation. A Distinctions between Expromission nd Delegacion
part of the obligation still remains outstanding.
XPN: Obligation is extinguished with respect only to the share Expromission Delegacion
corresponding to the DR or CR concerned. In effect, there is (1977, 2001, 2014 BAR)
only partial extinguishment of the entire obligation.(NCC, Art. The initiative does not come The initiative comes from
1277; Pineda, 2000) from the debtor the debtor
Consent of the debtor is not Consent of the debtor, the
Q: What is the effect of confusion or merger in one debtor present and not even creditor and the third
or creditor in a solidary obligation? necessary. person are present
The debtor is released.
A: If a solidary debtor had paid the entire obligation, the
Insolvency of the new Insolvency of the new
obligation is totally extinguished without prejudice to the rights
debtor before or after the debtor revives the obligation
of the solidary debtor who paid, to proceed against his solidary
novation does not revive the of the debtor if (a)
obligation of the debtor Insolvency is existing at the

32
 UST LAW PRE-WEEK NOTES 2018

(2011 Bar) time of novation; (b) of KINDS OF CONTRACT

public knowledge.
Q. What is subrogation?
A. It involves novation by changing the creditor. It is the
substitution of one person by another with reference to a
lawful claim or right, so that he who is substituted succeeds to
the rights of the other in relation to a debt or claim including its
remedies or securities. (Malayan Insurance Co., Inc. v Alberto,
G.R. 194320, February 1, 2012)
Q: Distinguish consensual from real contracts and name at
least four (4) kinds of real contracts under the present law.
(3%) (1998 Bar)
A: Consensual contracts are those which are perfected by mere
consent (NCC, Art. 1315). Real contracts are those which are
perfected by the delivery of the object of the obligation (NCC,
Art. 1316).
Examples of real contracts are deposit, pledge, commodatum
and simple loan (mutuum).

CONTRACTS OBJECTS, CAUSE, AND FORMS OF CONTRACTS

1. Essential Requisites of A Contract (2005 BAR) Object

Q: What are the essential requisites of a contract? Q: What are the requisites of an object?(DELiCT)
A:
A:They are the following: 1. Determinate as to kind (even if not determinate, provided
1. Consent; it is possible to determine the same without the need of a
2. Object or subject matter; and new contract);
3. Cause or consideration. 2. Existing or the potentiality to exist subsequent to the
contract;
Q: What are the characteristics of a contract ? (AMOR) 3. Must be Licit;
4. Within the Commerce of man; and
A:The following are its characteristics: 5. Transmissible.
1. Autonomy (Art. 1306); (1996, 2004 BAR)
2. Mutuality (Art. 1308); (2001, 2004, 2008 BAR) Cause
3. Obligatoriness and consensuality (Art. 1315);
4. Relativity (Art. 1311). (1991, 1996, 2002 BAR) Q: What are the requisites of a cause? (LET)
A:
NOTE: The basic principle of relativity of contracts is that 1. It must Exist;
contracts can only bind the parties who entered into it, and 2. Be True; and
cannot favor or prejudice a third person, even if he is aware of 3. Be Licit.
such contract and has acted with knowledge thereof. Hence, NOTE: Every contract is presumed to have a cause; and such
one who is not a party to a contract, and for whose benefit it cause is lawful.
was not expressly made, cannot maintain an action on it (Juana
Vda. De Rojales v. Marcelino Dime, G.R. No. 194548, February 10, Formality
2016).
Q: What is the rule on formality of contracts?
CONSENT (2005 BAR)
A: GR:Form is not required in consensual contracts.
Q: What are the requisites of a valid consent? XPNs: When the law requires a contract be in writing for its:
1. Validity (formal contracts); or
A: For consent to be valid, the following requisites should be 2. Enforceability (under Statute of Frauds).
present: 3. For the convenience of the parties
1. It must be Intelligent, or with an exact notion of the matter
to which it refers; NOTE: The parties may compel each other to reduce the verbal
2. Free; and agreement into writing. (2006 BAR)
3. Spontaneous.
Formalities required in specific contracts
Who are the persons incapacitated to give consent? 1. Donations
a. Personal property- if value exceeds 5,000, the
They are the following: donation and acceptance must both be written (NCC,
1. Deaf-mutes who do not know how to read and write Art. 748).
(illiterates) b. Real property:
2. Insane or demented persons, unless the contract was i. Donation must be in a public instrument,
entered into during a lucid interval specifying therein the property donated and
3. Minors (Art. 1327) value of charges which donee must satisfy.
EXCEPT: ii. Acceptance must be written, either in the same
a. Contracts for necessaries (NCC, Art. 1489) deed of donation or in a separate instrument.
b. Contracts by guardians or legal representatives and iii. If acceptance is in a separate instrument, the
the court having jurisdiction had approved the same donor shall be notified thereof in authentic
c. When there is active misrepresentation on the part of form, and this step shall be noted in both
the minor (minor is estopped) instruments (NCC, Art. 749).
d. Contracts of deposit with the Postal Savings Bank
provided that the minor is over 7 years of age 2. Partnership where real property contributed
e. Upon reaching age of majority – they ratify the same a. There must be a public instrument regarding the
partnership;
What are the vices of consent? b. The inventory of the realty must be made, signed by
the parties and attached to the public instrument
1. Mistake (NCC, Art. 1773)
2. Intimidation
3. Violence 3. Antichresis - the amount of the principal and interest
4. Undue influence must be in writing (NCC, Art. 2134).
5. Fraud

33
 CIVIL LAW

4. Agency to sell real property or an interest therein -
authority of the agent must be in writing (NCC, Art. 1874).
5. Stipulation to charge interest - interest must be
stipulated in writing (NCC, Art. 1956).
6. Stipulation limiting common carrier's duty of
extraordinary diligence to ordinary diligence:
a. must be in writing, signed by shipper or owner
b. supported by valuable consideration other than the
service rendered by the comon carrier
c. reasonable, just and not contrary to public policy
(NCC, Art. 1744).
7. Chattel mortgage - personal property must be recorded
in the Chattel Mortgage Register (NCC, Art. 2140).
the effect of rendering the contract meaningless while the other
would give effect to the contract as a whole, the latter
interpretation must be adopted (PNB v. Utility Assurance &
Surety, Co., Inc., 177 SCRA 393, 1989).
Q: What is this complementary-contracts-construed-
together doctrine?
A: Under this doctrine, an accessory contract must be read in its
entirety and together with the principal agreement (Rabuya,
2017). Thus, a promissory note and a deed of chattel mortgage
must be contrued together (Rigor v. Consolidated Orix Leasing
and Finance Corp., 387 SCRA 270, 2002); and the surety
contract, being an accessory contract, must be interpreted with
its principal contract, for instance, a loan agreement (Rabuya,
2017).

Contracts which must appear in a public document:

1. Donation of real properties (NCC, Art. 719);

2. Partnership where immovable property or real rights are
contributed to the common fund (NCC, Arts. 1171 & 1773);
3. Acts and contracts which have for their object the creation,
transmission, modification or extinguishment of real rights
over immovable property; sale of real property or of an
interest therein is governed by Arts. 1403, No. 2, and 1405
[NCC,Art. 1358 (1)];
4. The cession, repudiation or renunciation of hereditary
rights or of those of the conjugal partnership of gains [Art.
1358 (2)];
5. The power to administer property or any other power
which has for its object an act appearing or which should
appear in a public document or should prejudice a third
person [Art. 1358 (3)];
The cession of actions or rights proceeding from an act
appearing in a public document [Art. 1358 (4)].

REFORMATION OF INSTRUMENTS

Q: What is reformation of instruments and what are its

requisites?

A:It is a remedy to conform to the real intention of the parties

due to mistake, fraud, inequitable conduct, accident (NCC, Art.
1359).

The following are its requisites:

1. Meeting of the minds to the contract

NOTE: When there is no meeting of the minds, the proper

remedy is annulment and not reformation (Pineda, 2000)

2. True intention is not expressed in the instrument

3. By reason of:Mistake, Accident, Relative simulation,Fraud,
or Inequitable conduct.
4. Clear and convincing proof of those abovementioned.

The fundamental distinction between reformation of an

instrument and annulment of a contract is that the first
presupposes a perfectly valid contract in which there has been
a valid meeting of the minds of the contracting parties while the
second is based on a defective contract in which there has been
no meeting of the minds because the consent is vitiated (Jurado,
2010).

Q: What is the prescriptive period in reformation of

instruments?

A:10 years from the date of the execution of the instrument.

INTERPRETATION OF CONTRACTS

Q: What is the principle of effectiveness in contract

interpretation?

A: Pursuant to this principle, where two interpretations of the

same contract language are possible, one interpretation having

34
 UST LAW PRE-WEEK NOTES 2018

action party; party unless their

RESCISSIBBLE, VOIDABLE, UNENFORCEABLE, AND VOID XPN: interest are
AND INEXISTENT CONTRACTS Defraude directly
d affected
Q: What are the kinds of defective contracts? Differentiate Creditors
each other. Suscepti Susceptib Suscep Susceptible Not
bility of le but not tible Susceptible
BASIS RESCISSI VOIDA UNENFORC VOID/INEXI ratificat of
BLE BLE EABLE STENT ion ratificatio
(2004 (2004 BAR) n proper
BAR) Suscepti Action for Action Action for Action for
Origin Economic Incapa Entered Illegality bility rescissio for recovery; declaration
of the damage city of without (void) or prescrip n annul specific of nullity or
defect or lesion one of authority absence of tion prescribe ment performanc putting of
to either parties or in excess any of s after 4 prescri e or defense of
one of the to give thereof; essential years bes damages nullity does
parties or consen non- requisites of after 4 prescribes not
to 3rd t or compliance a contract years (10 years if prescribe
persons; vitiate with (inexistent) based on a
declarati d Statute of written
on by law consen Frauds contract; 6
t (2009 years if
BAR); unwritten)
incapacity
of both
parties to VOIDABLE CONTRACTS
give
consent Kinds Grounds Ways or Prescriptio
Necessit Suffered As to Not Not Modes of n for
y of by – the necessary necessary Convalidati Action for
Damage either other ng a Annulment
/ one of contrac Voidable
prejudic parties or ting Contract
e 3rd party - VOIDABLE Legal consent (1) By Four years
person not DUE presupposes prescription from the
necess INCAPACIT incapacity of the action time
ary Y A person may be for guardianshi
Curable Curable Curabl Not curable Not Curable considered annulment p of the
by e incapacitated (Art.1391) minor and
Prescrip because of: other
iton 1. minority (2) By incapacitate
Legal Valid & Valid & Inoperative A void or 2. insanity ratification d ceases
effect legally legally until inexistent 3. imbecility or or
enforcea enforce ratified; not contract has 4. the state of confirmation
ble until able enforceable no force and being deaf mute (Art. 1392-
judicially until in court effect from who cannot 1396)
rescinded judicial without the very write
ly proper beginning. (3) By loss of
annulle ratification This rule Note: if BOTH the thing
d applies to parties are which is the
contracts incapacitated, object of the
that are the contract is contract
declared UNENFORCEAB through the
void by LE fraud or fault
positive of the person
provision of VOIDABLE Consent may be who is
law (Tomas BECAUSE vitiated by: entitled to
Tan Jr. v. OF institute the
Tomas VITAIATE 1. Mistake action for the Four years
Hosana, G.R. D -It refers to the annulment from the
No. 190846, CONSENT (Art.1401) discovery
February 3, 2. Intimidation Four years
2016). from the
3. Violence time
Remedy Rescissio Annul Only Declaration intimidatio
n or ment personal of nullity of 4. Undue n, violence
rescissor of defense contract Influence or undue
y action contrac influence
t stops
Nature Must be a Direct Indirect Can be 5. Fraud Four years
of action direct action attack attacked Requisites: from the
action needed allowed directly or a. It was discovery
indirectly employed by a
Who can GR:Contr Contra Contracting 3rd persons contracting
file the acting cting party cannot file party upon the

35
 CIVIL LAW

other which is the object of thecontract; and

b. it was c. Consideration – Price certain in money or its
induced the equivalent.
other party to
enter into the 2. Natural elements – Those which are inherent in the
contract contract, and which in the absence of any contrary
c. it was serious; provision, are deemed to exist in the contract.
and e.g.
d. It resulted in a. Warranty against eviction; and
damages and b. Warranty against hiddendefects.
injury to the
party seeking 3. Accidental elements – Dependent onparties’ stipulations;
annulment e.g.
6.Contract a. Conditions;
agreed to in a b. Interest;
state of c. Time & place ofpayment; and
d. Penalty.
drunkness or
during a Effect of absence of any of the essential elements
hypnotic spell
(NCC, Art 1328) The contract of sale is void.

ESTOPPEL Absent proof of the concurrence of all the essential elements of

a contract of sale, the giving of earnest money cannot establish
Q: What is the doctrine of estoppel and to whom is it the existence of a perfected contract of sale (Manila Metal
applied? Container Corp. v. PNB, G.R. No. 166862, December 20, 2006).

A: The doctrine of estoppel is an admission or representation Subject Matter

rendered conclusive upon the person making it, and cannot be
denied or disproved as against the person relying thereon (Art. Requisites of a proper objects of sale
1431, NCC).
1. THINGS
The doctrine of estoppel is applied only to those who were a. Determinate or determinable;
parties to the contract and their privies or successors-in- b. Lawful or licit; and
interest (Mactan Cebu International Airport Authority v. Heirs of c. Should not be impossible (within the commerce
Ga Vina Jordan, G.R. No. 173140, January 11, 2016). of men).

NATURAL OBLIGATIONS 2. RIGHTS

Natural obligations, not being based on positive law but on
equity and natural law, do not GRant a right of action to
enforce their performance, but after voluntary fulfillment by
the obligor, they authorize the retention of what has been
delivered or rendered by reason thereof (NCC, Art. 1423).
Q: Sara borrowed P50,000.00 from Julia and orally
promised to pay it within six months. When Sara tried to
pay her debt on the 8th month, Julia demanded the
payment of interest of 12% per annum because of Sara's
delay in payment. Sara paid her debt and the interest
claimed by Julia. After rethinking, Sara demanded back
from Julia the amount she had paid as interest. Julia claims
she has no obligation to return the interest paid by Sara
because it was a natural obligation which Sara voluntarily
performed and can no longer recover. Do you aGRee?
Explain (2015 BAR).
A: NO.The case is not one of a natural obligation because even
if the contract of loan is verbal, the delay of Julia made her
liable for interest upon demand by Sara. This is not a case of a
natural obligation but a civil obligation to pay interest by way
of damages by reason of delay (NCC, Articles 1956; 1169;
2209).
PART V – SALES
NATURE AND FORM OF CONTRACT
GR: Must be transmissible.
e.g.right of redemption, right of usufruct, sale of
credit, right to inheritance already assigned, etc.
XPNs:
FUTURE INHERITANCE – Cannot be the subject of
sale; and SERVICE
Reason: They are not determinate things and no transfer of
ownership is available but it can be the object of certain
contracts such as contract for a piece of work (Pineda, 2010).
The subject matter of sale must be determinate or at least
determinable.
Q: Artemio, and his other co-heirs, inherited a lot
consisting of 469sqm. Due to a construction of Barangay
Road, the lot was divided into 3 portions consisting of Lots
A, B, C. They executed an Extra Judicial Settlement, as well
as a Deed of Absolute Sale in favor of Spouses Sillero
consisting of 207sqm, without identifying the lot. Artemio
however presented a Sketch Plan to the spouses and
pointed Lot A. Spouses Sillero occupied Lot A, and
subsequently sold it to Gil. Wanting to register the land in
his name, Gil had it assessed and found out that Lot A only
has 140sqm. He filed an action of Quieting of Title with
Damages against the Artemio, and further demanded that
the remaining 67sqm be given in his possession. Is Gil
entitled to recover the remaining 67sqm?

Elements of a Contract of Sale A: No. The subject of the sale between Artemio and the
spouses Sillero was Lot A only. Artemio presented to spouses
1. Essential elements – Forvalidity: Sillero the sketch plan prior to their purchase, and pointed Lot
a. Consent – Meeting of the minds to transfer A. It cannot be any clearer that the portion of lot subject of the
ownership in exchange for theprice; Absolute Sale between Artemio and his co-heirs and the
b. Determinate subject matter – Determinate thing spouses Sillero was Lot A only.

36
 UST LAW PRE-WEEK NOTES 2018

Since what the spouses Sillero bought from Artemio and his
co-heirs was Lot A, it logically follows that what they sold to Gil
was the same and exact property. Two lots cannot fall under a
single denomination since they have different technical
descriptions (Macalino v. Pis-An, G.R. No. 204056, June 1,
2016)(DEL CASTILLO, J.).
Price
event the owner sells the same. As distinguished from an
option contract, in a right of first refusal, whole the object
might be made determinate, the exercise of the right of first
refusal would be dependent not only on the owner’s eventual
intention to enter into a binding juridical relation with another
but also on terms, including the price, that are yet to be firmed
up (PUP v.Golden Horizon Realty Corp., 615 SCRA 478, May 15,
2010).

OPTION MONEY EARNEST MONEY Contract to Sell

Money given as distinct Forms part of the purchase price
consideration for an A bilateral contract whereby the prospective seller, while
option contract expressly reserving the ownership of the subject property
Applies to a sale not yet Given only when there is already despite delivery thereof to the prospective buyer, binds
perfected a sale himself to sell the said property exclusively to the prospective
Prospective buyer is not When given, the buyer is bound buyer upon fulfillment of the condition agreed upon, that is,
required to buy. to pay the balance. full payment of the purchase price (Coronel v. CA, G.R. No.
If buyer does not decide to If sale did not materialize, it 103577, October 7, 1996).
buy, it cannot be must be returned. (Villanueva,
recovered. 2014; Pineda, 2010) NOTE: Here, payment of the price is a positive suspensive
condition. Failure of which is not a breach but an event that
Equitable Mortgage prevents the obligation of the vendor to convey title from
becoming effective (Rabuya, 2017).
One which lacks the proper formalities, form or words or other
requisites prescribed by law for a mortgage, but shows the Stages of a Contract of Sale
intention of the parties to make the property subject of the
contract as security for a debt and contains nothing impossible 1. Negotiation– Begins from the time the
or contrary to law (Cachola v. CA, G.R. No. 97822, May 7, 1992; prospective contracting parties manifest their
NCC, Art. 1602). interest in the contract and ends at the moment
of agreement of the parties;
Essential requisites of equitable mortgage 2. Perfection– Takes place when the parties agree
upon the essential elements of the contract; and
1. Parties entered into a contract of sale; and 3. Consummation – Occurs when the parties fulfill
2. Their intention was to secure an existing debt by way or perform the terms agreed upon in the contract
of a mortgage. culminating in the extinguishment thereof
(Swedish Match vs. CA, G.R. No. 128120, October
Q: When is a contract presumed to be an equitable 20, 2004).
mortgages instead of a contract of sale?
Perfection of Contract
A:
1. Price unusually inadequate; The parties must agree on the thing which is the object of the
2. Possession retained by the seller as lessee or contract and the price, nothing can be left open for further
otherwise; arrangement. So long as there is any uncertainty or
3. Period of redemption extended (or granted anew) indefiniteness, or future negotiations or considerations to be
upon or afterthe expiration of the right to had between the parties, there is not a completed contract, and
repurchase; in fact, there is no contract at all. (2002, 2006 Bar)
4. Part of the purchase price retained by the seller;
5. Payment of taxes on the thing sold borne by the Q: Mr. D offered to sell his laptop to Ms. C on an instalment
seller; basis, which Ms. C accepted. The laptop was transferred to
6. Any other case where it may be fairly inferred that Ms. C and the first instalment was duly paid. However, Ms.
the real intention of the parties is for the transaction C failed to pay the subsequent instalments, thus forcing
to secure a debt or other obligation (Art. 1602, NCC). Mr. D to file a case against her. Ms. C denied the alleged
sale and said that the laptop was given merely as a
NOTE: Equitable mortgagevis-à-viscontract of sales security for Mr. D’s debt. She likewise argued that there
waslikewise asked in 1991 and 2005 Bar. was no contract of sale for failure of Mr. D to present a
written contract of sale. She claims that under the Statute
Option Contract of Frauds, a contract of sale to be enforceable must be in
writing. Is Ms. C’s argument tenable?
Q: Explain the nature of an option contract. (2002, 2005
Bar) A:NO. A contract of sale is perfected the moment the parties
agree upon the object of the sale, the price, and the terms of
A:A contract by which the owner of the property agrees with payment. Once perfected, the parties are bound by it whether
another person that he shall have the right to buy his property the contract is verbal or in writing because no form is
at a fixed price within a certain time. It is binding upon the required. Contrary to the view of Ms. C, the Statute of Frauds
promissor if the promise is supported by a consideration does not apply in the present case as this provision applies only
distinct from the price. An option contract is likewise a to executory, and not to completed, executed or partially
separate and distinct contract from a contract of sale. executed contracts. In this case, the contract of sale had been
partially executed because the possession of the laptop was
Right of First Refusal already transferred to petitioner and the partial payments had
been made by her (Duarte v. Duran, G.R. No. 173038, September
Q: How do you distinguish right of first refusal from an 14, 2011)(DEL CASTILLO, J.).
option contract?
Transfer of ownership
A: A right of first refusal is a contractual grant, not of the sale It is tradition or delivery, which is a consequence of the sale
of a property, but of the first priority to buy the property in the that transfers ownership.

37
 CIVIL LAW

Effect of Delivery GR: The sale is void when the seller is not the owner of the
goods.
GR: Title /ownership is transferred XPNs:
XPN: When the contrary is stipulated as in the case of:
a. Estoppel: when the owner is precluded from denying
Pactum reservatii in domini –agreement that ownership the sellers authority to sell
willremain with seller until full payment of price (Contract b. Registered land bought in good faith (Ratio: Buyer
tosell). need not go beyond the Torrens title)
c. Order of Courts in a Statutory Sale
Contract to sell does not transfer ownership to the buyer. The d. When the goods are purchased in a Merchant’s store,
seller retains ownership at the time of the execution of the e. Fair or Market (NCC, Art. 1505)
contract to sell (Fabio Cahayag v. Commercial
CreditCorporation, G.R. No. 168078, January 13, 2016). 5. When goods are held by a third party

Sale on acceptance/approval XPN: Third person acknowledges to the buyer that he

Sale on return
There is implied reservation of ownership
Delivery deemed effective
Delivery should be coupled with intention of delivering the
thing, and acceptance on the part of the buyer to give legal
effect of the act. Without such intention, there is no such
tradition.
Delivery of incorporeal property
1. When sale is made through a public instrument (NCC,
Art.1498).
2. By placing the titles of ownership in the possession of the
buyer.
3. When buyer uses and enjoys the rights pertaining to the
incorporeal property with the consent of the seller (NCC,Art.
1501).
When the object should be delivered
holds the goods in behalf of the buyer (NCC, Art. 1521)
On sale or return – The ownership passes to buyer upon
delivery, but he may revest ownership in the seller by
returning or tendering the goods within the time fixed in the
contract or within reasonable time (NCC, Art. 1502).
Q: What is the effect of execution of public instrument in a
contract of sale?
A: The execution of a public instrument gives rise only to a
prima facie presumption of delivery. Such presumption is
destroyed when the instrument itself expresses or implies that
delivery was not intended; or when by other means it is shown
that such delivery was not effected, because a third person was
actually in possession of the thing. In the latter case, the sale
cannot be considered consummated (Equatorial Realty v.
Mayfair Theater,G.R. No. 133879, November 21, 2001).
Double sale
There is double sale when the same object of the sale is sold to
different vendees (NCC, Art. 1544).

1. Stipulated time; or Rule governing sale of MOVABLES

2. If there is none, at a reasonable hour.
Ownership shall be transferred to the person who
Place of delivery (Art. 1521 in relation to Art. 1582 of NCC) may have first taken possession in good faith.

The place of delivery shall be: (AUBRI) Rule governing sale of IMMOVABLES

1. That agreed upon; Ownership belongs to the person who:

2. Place determined by usage of trade;
3. Seller’s place of business; 1. In good faith first recorded the sale in the
4. Seller’s residence; or Registry of Property; or
5. In case of specific goods, where they can be found. 2. If there is no inscription of sale on the title,
ownership passes to the person who in good
When delivery does not transfer title faith was first in possession; or
3. In the absence thereof, to the person who
1. Sale on Trial, Approval, or Satisfaction presents the oldest title, provided there is good
2. When there is an EXPRESS RESERVATION faith.

If it was stipulated that ownership shall not pass to the NOTE: Art. 1544 of NCC contemplates a case of double
purchaser until he has fully paid the price (NCC, Art.1478) ormultiple sales by a single vendor. It is necessary that the
conveyance must have been made by a party who has an
3. When there is an IMPLIED RESERVATION existing right in the thing and the power to dispose of it.

a. When goods are shipped, but the bill of lading CAPACITY TO BUY OR SELL
states that goods are deliverable to the seller or his agent, or to
the order of the seller or his agent (NCC, Art. 1503). GR: All persons, whether natural or juridical, who can bind
themselves, have legal capacity to buy and sell [NCC, Art. 1489
b. When the bill of lading is retained by the seller or (1)].
his agent (NCC, Art. 1503).
XPNs:
c. When the seller of the goods draws on the buyer 1. Minors, insane and demented persons and deaf-mutes who
for the price and transmits the bill of exchange and the bill of do not know how to write
lading to the buyer , and the latter does not honor the bill of 2. Persons under a state of drunkenness or during hypnotic
exchange by returning the bill of lading to the seller (NCC, Art. spell
1503). 3. Husband and wife - sale by and between spouses

4. When sale is VOID XPN to XPN:

38
 UST LAW PRE-WEEK NOTES 2018

1. Where necessaries are sold and delivered to a minor
or other person without capacity to act, he must pay
a reasonable price therefor.
2. In case of sale between spouses:
a. when separation of property was aGReed upon in
the marriage settlements; or
b. when there has been a judicial separation of
property aGReed upon between them
A: The sale is void. Article 1898 of the Civil Code provides:
Art. 1898. If the agent contracts in the name of the principal,
exceeding the scope of his authority, and the principal does not
ratify the contract, it shall be void if the party with whom the
agent contracted is aware of the limits of the powers granted
by the principal. In this case, however, the agent is liable if he
undertook to secure the principal’s ratification.

Absolute Incapacity
Persons who are absolutely incapacitated to enter into a
contract of sale
1. Unemancipated minors (NCC, Art. 1327);
2. Insane or demented persons, and deaf-mutes who do not
know how to write (NCC, Art. 1327).
Contracts entered into during intervals by insane or demented
persons are generally valid (NCC, Art. 1328); whereas, those
entered into in a state of drunkenness, or during hypnotic
spell, are merely voidable (NCC, Art.1328). Contracts entered
into by such legally incapacitated persons are not void, but
merely voidable, subject to annulment or ratification (NCC, Art.
1393).
Based on the foregoing, (1) Reynalda, as agent, acted beyond
the scope of her authority under the SPA when she executed
the deed of sale without the knowledge and consent of Sps.
Tumibay, and conveyed the subject land to Rowena at a price
not approved by Sps. Tumibay, (2) Rowena was aware of the
limits of the authority of Reynalda under the SPA, and (3) Sps.
Tumibay did not ratify, impliedly or expressly, the acts of
Reynalda. Under Article 1898 of the Civil Code, the sale is void
and Sps. Tumibay are, thus, entitled to the reconveyance of the
land (Sps. Tumibay v. Sps. Lopez, G.R. No. 171692, June 3,
2013)(DEL CASTILLO, J.).
EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS
BEEN LOST
Risk of Loss

Relative Incapacity GR:It is understood that the thing is lost when it:
1. perishes, or
Persons who are relatively incapacitated to enter into a 2. goes out of commerce, or
contract of sale 3. disappears in such a way that its existence is unknown or
1. Spouses (NCC, Art. 1490) cannot be recovered (Art. 1189 (2)).
2. Agents, Guardians, Executors and Administrators, Public
Officers and Employees, Court Officers and Employees, XPN: In an obligation to deliver a generic thing, the loss or
and others specially disqualified by law (NCC, Art. 1491). destruction of anything of the same kind does not extinguish
the obligation (Art. 1263).
Lawyers are expressly prohibited from acquiring property or
rights that may be the object of any litigation in which they Person who bears the risk of loss or deterioration
may take part by virtue of their profession (NCC, Art. 1491(5);
Peña v. De los Santos, et al., G.R. No. 202223, March 2, 2016). Res perit domino – Seller is the owner
BEFORE
PERFECTION so seller bears risk of loss (1999 BAR)
Special Disqualifications
Res perit domino
Persons specially disqualified by law to enter into
contracts of sale (ALIEN-UnOS) AT Contract shall be without any effect –
PERFECTION the seller bears the loss since the buyer
1. ALIENs who are disqualified to purchase private is relieved of his obligation under the
aGRicultural lands (Art. XII Secs. 3 & 7, 1987 Constitution) contract
2. Unpaid seller having a right of lienor having stopped the AFTER Seller;
goods in transitu,is prohibited from buying the goods PERFECTION Deterioration & fruits – Buyer bears
either directly or indirectly in the resale of the same at BUT loss (Tolentino)
public/private sale which he may make (NCC, Art. 1533 BEFORE
[5]; Art. 1476 [4]) DELIVERY
3. The Officer holding the execution or deputycannot Buyer becomes the owner so buyer
become a purchaser or be interested directly or bears risk of loss
indirectly on any purchase at an execution (Sec. 21 Rule AFTER
39, RRC) DELIVERY Delivery extinguish ownership vis-a-vis
4. In Sale by auction, seller cannot bid unless notice has the seller & creates a new one in favor
been given that such sale is subject to a right to bid in of the buyer
behalf of the seller (NCC, Art. 1476).
OBLIGATIONS OF THE PARTIES
Q: Sps. Tumibay, owners of the subject land executed an
SPA in favor of Reynalda. Reynalda, as agent, was granted Obligations of the seller (DDTWTP)
authority to offer for sale the land provided that the
purchase price should be approved by Sps. Tumibay. Sps. 1. Deliver the thing sold (NCC, Arts. 1458&1459);
Tumibay and Rowena Lopez agreed to enter into an oral 2. Deliver fruits & accessions/accessories accruing from
contract to sell over the subject land for ₱800,000. perfection of sale;
3. Transfer the ownership;
Rowena made a partial payment for the subject land. 4. Warranties;
Thereafter, Rowena called Reynalda, claiming that she had 5. Take care of the thing, pending delivery, with proper
already bought the land from Sps. Tumibay. diligence;
Using the aforesaid SPA, Reynalda then transferred the 6. Pay for the expenses of the deed of sale unless there is a
title to the subject land in Rowena’s name through a deed stipulation to the contrary.
of sale without the knowledge and consent of Sps.
Tumibay. A new title to the subject land was issued in the
name of Rowena. What is the status of the sale of the land?

39
 CIVIL LAW
Obligations of the Buyer (PAE)
1. Payment of the price
GR: Seller is not bound to deliver unless the purchase
price is paid
XPN: A period of payment has been fixed
2. Accept delivery of thing sold
3. Bear expenses for the execution and registration of the
sale and putting the goods in a deliverable state, if such is
the stipulation.
Other Obligations of the Buyer
1. To take care of the goods without the obligation to return,
where the goods are delivered to the buyer and he
rightfully refuses to accept (NCC, Art. 1587);
NOTE: The goods in the buyer’s possession are at the
seller’s risk.
2. To be liable as a depositary if he voluntarily constituted
himself as such (NCC, Art. 1587);
3. To pay interest for the period between delivery of the
thing and the payment of the price in the following cases
(NCC, Art. 1589):
a. should it have been stipulated;
b. should the thing sold and delivered produces fruits
or income; or
c. should he be in default, from the time of judicial or
extra-judicial demand for the payment of the price.
BREACH OF CONTRACT
Maceda Law; Recto Law
Q: What are the so-called "Maceda" and "Recto" laws in
connection with sales on installments? Give the most
important features of each law? (BAR 1999, 2000)
SUGGESTED ANSWER:
The MACEDA LAW (R.A. 6552) is applicable to sales of
immovable property on installments. It covers primarily
residential real estate bought on instalment. It also covers the
financing of real estate on instalment. It also includes
subdivisions, condominiums and those under PD 957.
The most important features are:
1. After having paid installments for at least two years, the
buyer is entitled to a mandatory GRace period of one
month for every year of installment payments made, to
pay the unpaid installments without interest. If the
contract is cancelled, the seller shall refund to the buyer
the cash surrender value equivalent to 50% of the total
payments made, and after five years of installments, an
additional 5% every year but not to exceed 90% of the
total payments made.
2. In case the installments paid were less than 2 years, the
seller shall give the buyer a GRace period of not less than
60 days. If the buyer fails to pay the installments due at
the expiration of the GRace period, the seller may cancel
the contract after 30 days from receipt by the buyer of the
notice of cancellation or demand for rescission by notarial
act (Rillo v. CA, G.R. No. 125347, June 19, 1997).
The RECTO LAW (Art. 1484 of the NCC) refers to sale of
movables payable in installments and limiting the right of
seller, in case of default by the buyer, to one of three remedies:
a) demand exact fulfillment; b) cancel the sale if two or more
installments have not been paid; c) foreclose the chattel
mortgage on the things sold, also in case of default of two or
more installments, with no further action against the
purchaser.
40
EXTINGUISHMENT OF SALE
Causes for extinguishment of sale
1. Same causes as how an obligation is extinguished, namely:
a. Payment or performance
b. Loss of the thing due
c. Condonation or remission of the debt
d. Confusion or merger of the rights of creditor and
debtor
e. Compensation
f. Novation
g. Annulment
h. Rescission
i. Fulfillment of resolutory condition
j. Prescription
2. Conventional Redemption
3. Legal redemption
ASSIGNMENT OF CREDITS
Assignment is the process of transferring gratuitously or
onerously the right of the assignor to the assignee, who would
then be allowed to proceed against the debtor (Paras, 2008).
The assignment involves no transfer of ownership but merely
effects the transfer of rights which the assignor has at the time
to the assignee.
It is an agreement by virtue of which the owner of a credit,
known as the assignor, by a legal cause, such as sale, dacion en
pago, exchange or donation, and without the consent of the
debtor, transfers his credit and accessory rights to another,
known as the assignee, who acquires the power to enforce it to
the same extent as the assignor could enforce it against the
debtor (South City Homes, Inc. v. BA Finance Corp, G. R. No.
135462, December 7, 2001).
NOTE: In assignments, a consideration is not always a
requisite, unlike in sale. Thus, an assignee may maintain an
action based on his title and it is immaterial whether or not he
paid any consideration therefor. Furthermore, in an
assignment, title is transferred but possession need not be
delivered.
Petitioners' right to extinguish their debt under Article 1634
on assignment of credits has not yet lapsed. The pertinent
provision is reproduced here:
Art. 1634. When a credit or other incorporeal right in litigation
is sold, the debtor shall have a right to extinguish it by
reimbursing the assignee for the price the latter paid therefor,
the judicial costs incurred by him, and the interest on the price
from the day on which the same was paid.
A credit or other incorporeal right shall be considered in
litigation from the time the complaint concerning the same is
answered.
The debtor may exercise his right within thirty days from the
date the assignee demands payment from him.
Under the last paragraph of Article 1634, the debtor may
extinguish his or her debt within 30 days from the date the
assignee demands payment. In this case, insofar as the actual
parties to the deed of assignment are concerned, no demand
has yet been made, and the 30-day period did not begin to run
(Eagleridge Development Corporation v. Cameron Granville 3
Asset Management Inc., G.R. No. 204700, November 24, 2014).
PART VI – LEASE
Kinds of Lease according to subject matter
1. Lease of things – whether real or personal, involving an
obligation on the part of the lessor to deliver the thing
 UST LAW PRE-WEEK NOTES 2018
which is the object thereof and the correlative right of the
lessee to the peaceful and adequate enjoyment thereof for
a price certain (NCC, Art. 1654); or
2. Lease of work – which refers to a contract for a piece of
work, involving an obligation on the part of the contractor
(lessor) to execute a piece of work for the employer
(lessee) in consideration of a certain price or
compensation (NCC, Art. 1713);
NOTE: Duties of a contractor who furnishes work and
materials:
a. To deliver
b. To transfer ownership
c. To warrant eviction and hidden defects
3. Lease of service – involving an obligation on the part of
the housekeeper, laborer or employee, or common carrier
to do or perform a service for the head of a family, or
master, employer, or passenger or shipper of goods,
respectively, in consideration of compensation.
NOTE: Since lease is consensual and is not imposed by law,
only the lessor has the right to fix the rents. However, the
increasing of the rent is not an absolute right on the part of the
lessor.
Implied new lease or a “tacita reconduccion”
An implied new lease or tacita reconduccion will set in when
the following requisites are found to exist: a) the term of the
original contract of lease has expired; b) the lessor has not
given the lessee a notice to vacate; and c) the lessee continued
enjoying the thing leased for fifteen days with the
acquiescence of the lessor (Samelo v. Manotok Services, G.R. No.
170509, June 27, 2012)
Grounds for which lessor may judicially eject lessee (BAR
1994, 2004)
1. When the period aGReed upon had expired;
2. Lack of payment of the price stipulated;
3. Violation of any condition agreed upon in the contract;
and
4. Lessee devotes thing lease to any use or service not
stipulated which causes the deterioration thereof.
NOTE: When the grounds relied upon for ejectment are non-
payment of rentals or violation of the conditions of lease,
notice to vacate is crucial. A demand is pre-requisite to an
action for unlawful detainer (Arquelada v. Philippine Veterans
Bank, G.R. No. 139137, March 31, 2000).
Q: What are some instances where the purchaser of the
thing leased cannot terminate the lease?
A:
1. Where the lease is recorded in the Registry of Property;
2. Where there is a stipulation that purchaser shall respect
the lease;
3. Where the purchaser knows the existence of the lease;
4. Where sale is fictitious;
5. Where the sale is made with right of repurchase (Jurado
Reviewer, 2009).
PART VII – PARTNERSHIP
CONTRACT OF PARTNERSHIP
Essential elements of Partnership
1. Agreement to contribute money, property or industry to a
common fund (mutual contribution to a common stock);
and
41
2. Intention to divide the profits among the contracting
parties (joint interest in the profits) (Evangelista v.
Collector of Internal Revenue, G.R. No. L-9996, October 15,
1987).
RESPONSIBILITIES OF A PARTNERSHIP TO PARTNERS
1. Refund the amounts disbursed by partner in behalf of the
partnership plus corresponding interest from the time the
expenses are made, not from the date of demand. (e.g.
loans and advances made by a partner to the partnership
aside from capital contribution);
2. Answer for obligations the partner may have contracted in
good faith in the interest of the partnership business;
3. Answer for risks in consequence of its management (Art.
1796).
OBLIGATIONS OF PARTNERS AMONG THEMSELVES
1. Contribution of property (Art. 1786)
2. Contribution of money and money converted to personal
use (Art. 1788)
3. Prohibition in engaging in business for himself (Art. 1789)
4. Contribute additional capital (Art. 1791)
5. Managing partner who collects debt (Art. 1792)
6. Partner who receives share of partnership credit (Art.
1793)
7. Damages to partnership (Art. 1794)
8. Keep the partnership books (Art. 1805)
9. Render information (Art. 1806)
10. Accountable as fiduciary (Art. 1807)
RIGHTS OF PARTNERS AMONG THEMSELVES
1. Right to reimbursement for amounts advanced to the
partnership and to indemnification for risks in
consequence of management (Art. 1796);
2. Right on the distribution of profits and losses (Art. 1797).
3. Right to associate another person with him in his share
without the consent of the other partners (Art. 1804).
NOTE: Such partnership formed between a member of a
partnership and a third person for a division of the profits
coming to him from the partnership enterprise is termed
subpartnership. (De Leon, 2010)
4. Right to free access and to inspect and copy at any
reasonable hour the partnership books (Art. 1805).
5. Right to formal account as to partnership affairs:
a. If he is wrongfully excluded from the partnership
business or possession of its property by his co-
partners;
b. If the right exist under the terms of any agreement;
c. As provided by Art. 1807;
d. Whenever there are circumstances render it just and
reasonable.
5. Right to have the partnership dissolved.
6. Property rights of a partner (Art. 1810)
OBLIGATIONS OF PARTNERSHIP/PARTNERS TO THIRD
PERSONS
1. Every partnership shall operate under a firm name.
Persons who include their names in the partnership name
even if they are not members shall be liable as a partner
(Art. 1815)
2. All partners shall be liable for contractual obligations of
the partnership with their property, after all partnership
assets have been exhausted:
a. Pro rata
b. Subsidiary (Art. 1816) (1993, 2010 BAR)
NOTE: Any stipulation against the liability laid down
in Art. 1816 shall be void except as among the
partners. (Art. 1817)
 CIVIL LAW

The subsidiary nature of the partners’ liability with d. Expulsion of any partner in good faith of a member
the partnership is one of the valid defenses against a 2. Violating the agreement
premature execution of judgment directed to a 3. Unlawfulness of the business
partner (Michael Guy v. Atty. Glenn Gacott, G.R. No. 4. Loss
206147, January 13, 2016). a. Specific thing promised as contribution is lost or
3. Partner as an agent of the partnership (Art. 1818) (1994 perished before delivery
BAR) b. Loss of a specific thing contributed before or after
4. Conveyance of real property belonging to the partnership delivery, if only the use of such is contributed
(Art. 1819)
5. Admission or representation made by any partner NOTE: The partnership shall not be dissolved by the
concerning partnership affairs within the scope of his loss of the thing when it occurs after the partnership
authority is evidence against the partnership (Art. 1820) has acquired the ownership thereof.
6. Notice to partner of any matter relating to partnership
affairs operates as notice to partnership except in case of 5. Death of any of the partners
fraud: 6. Insolvency of any partner or of the partnership
a. Knowledge of partner acting in the particular matter 7. Civil interdiction of any partner
acquired while a partner 8. By decree of court under Art. 1831
b. Knowledge of the partner acting in the particular a. A partner has been declared insane or of unsound
matter then present to his mind mind
c. Knowledge of any other partner who reasonably b. A partner becomes in any other way incapable of
could and should have communicated it to the acting performing his part of the partnership contract
partner (Art. 1821) c. A partner has been guilty of such conduct as tends to
7. Partners and the partnership are solidarily liable to 3 rd affect prejudicially the carrying on of the business
persons for the partner's tort or breach of trust (Art. 1822- d. A partner wilfully or persistently commits a breach of
24) the partnership agreement
8. Liability of incoming partner is limited to: e. The business of the partnership can only be carried
a. His share in the partnership property for existing on at a loss
obligations f. Other circumstances render a dissolution equitable
b. His separate property for subsequent obligations
(Art. 1826) Effects of dissolution (2010 BAR)
9. Creditors of partnership are preferred in partnership
property & may attach partner's share in partnership 1. Partnership is not terminated;
assets (Art. 1827) 2. Partnership continues for a limited purpose;
3. Transaction of new business is prohibited (De Leon, 2005).
DISSOLUTION AND WINDING UP
Winding up of the partnership
Dissolution, Winding-up, and Termination
It is during this time after dissolution that partnership
Winding business or affairs are being settled (De Leon, 2005).
Dissolution Termination
up
Ways of winding up
A change in the Settling the Point in time
relation of the partnership when all The winding up of the dissolved partnership may be done
partners caused by business or partnership either:
any partner ceasing affairs after affairs are
to be associated in dissolution. wound up or 1. Judicially, under the control and direction of the proper
carrying on the completed; the court upon cause shown by any partner, his legal
business. end of the representative, or his assignee; or
partnership life. 2. Extrajudicially, by the partners themselves without
intervention of the court (De Leon, 2014).
It is that point in It is the It signifies the
time when the final step end of the Action for liquidation
partners cease to after partnership life.
carry on the dissolution It takes place An action for the liquidation of a partnership is a personal one;
business together. in the after both hence, it may be brought in the place of residence of either the
It represents the termination dissolution and plaintiff or the defendant (De Leon, 2014).
demise of a of the winding up
partnership. Thus, partnership. have occurred. Persons authorized to wind up
any time a partner
1. Partners designated by the agreement;
leaves the business,
2. In the absence of such, all partners who have not
the partnership is
wrongfully dissolved the partnership; and,
dissolved.
3. Legal representative of last surviving partner who is not
insolvent(De Leon, 2014).
Causes of dissolution (NCC, Art. 1830)
NOTE: The court may, in its discretion, after considering all the
1. Without violating the agreement:
facts and circumstances of the particular case, appoint a
a. Termination of the definite term or specific
receiver to wind up the partnership affairs where such step is
undertaking
shown to be to the best interests of all persons concerned.
b. Express will of any partner in good faith, when there
is no definite term and no specified undertaking
An insolvent partner does not have the right to wind up
c. Express will of all partners (except those who have
partnership affairs (De Leon, 2014).
assigned their interests or suffered them to be
charged for their separate debts) either before or
after the termination of any specified term or
particular undertaking

42
 UST LAW PRE-WEEK NOTES 2018

LIMITED PARTNERSHIP
NOTE: A person may express his consent:
Characteristics a. by contract (NCC, Art. 1868), orally or in writing;
b. by conduct (NCC, Art. 1869);
1. It is formed by compliance with the statutory c. by ratification (NCC, Art. 1910); or
requirements. d. the consent may arise by presumption or operation
2. One or more general partners control the business and of law (De Leon, 2010).
are personally liable to creditors. 2. The object is the execution of a juridical act in relation to
3. One or more limited partners contribute to the capital and third persons.
share in the profits but do not participate in the 3. The agent acts as a representative and not for himself.
management of the business and are not personally liable 4. The agent acts within the scope of his authority
for partnership obligations beyond their capital (De Leon, 2010).
contributions.
4. The limited partners may ask for the return of their Appointment of an Agent
capital contributions under conditions prescribed by law.
5. Partnership debts are paid out of common fund and the GR: There are no formal requirements governing the
individual properties of general partners appointment of an agent.

RIGHTS AND OBLIGATIONS OF A LIMITED PARTNER XPN: When the law requires a specific form. i.e. – when sale of
land or any interest therein is through an agent, the authority
Rights of a limited partner of the latter must be in writing; otherwise, the sale shall be
void (Art. 1874). (2010 BAR)
1. To have partnership books kept at principal place of
business; OBLIGATIONS OF THE AGENT
2. To inspect/copy books at reasonable hours;
3. To have on demand true and full information of all things Summary of rules; Acts of an agent
affecting partnership;
4. To have formal account of partnership affairs whenever In behalf of the principal, within the scope of authority
circumstances render it just and reasonable; 1. Binds principal;
5. To ask for dissolution and winding up by decree of court; 2. Agent not personally liable
6. To receive share of profits/other compensation by way of
income; and Without or beyond scope of authority
7. To receive return of contributions, provided the Contract is unenforceable as against the principal but binds the
partnership assets are in excess of all its liabilities. agent to the third person
Binding on the principal when:
Liabilities of a limited partner 1. Ratified or
2. The principal allowed the agent to act as though he had
1. To the partnership full powers
Since limited partners are not principals in the
Within the scope of authority but in the agent’s name
transaction of a partnership, their liability as a rule, is to
the partnership, not to the creditors of the partnership. 1. Not binding on the principal;
The general partners cannot, however waive any liability 2. Principal has no cause of action against the 3rd parties and
of the limited partners to the prejudice of such creditors. vice versa
Within the scope of the written power of attorney but agent
2. To the partnership creditors and other partners has actually exceeded his authority according to an
a. A limited partner is liable for partnership obligations understanding between him and the principal
when he contributed services instead of only money 1. Insofar as 3rd persons are concerned (not required to
or property to the partnership inquire further than the terms of the written power),
b. When he allows his surname to appear in the firm agent acted within scope of his authority;
name 2. Principal stopped
c. When he fails to have a false statement in the
certificate corrected, knowing it to be false With improper motives
d. When he takes part in the control of the business Motive is immaterial; as long as within the scope of authority,
e. When he receives partnership property as collateral valid
security, payment, conveyance, or release in fraud of With misrepresentations by the agent
partnership creditors
f. When there is failure to substantially comply with the 1. Authorized – principal still liable
legal requirements governing the formation of 2. Beyond the scope of the agent’s authority
limited partnerships
GR: Principal not liable
XPN: Principal takes advantage of a contract or receives
PART VIII – AGENCY benefits made under false representation of his agent
Mismanagement of the business by the agent
Q: What is a Contract of agency (2000, 2003 BAR)
1. Principal still responsible for the acts contracted by the
A:By the contract of agency, a person binds himself to render agent with respect to 3rd persons;
some service or to do something in representation or on behalf 2. Principal, however, may seek recourse from the agent
of another, with the consent or authority of the latter (NCC, Art. Tort committed by the agent
1868). Principal civilly liable so long as the tort is committed by the
agent while performing his duties in furtherance of the
NATURE, FORMS AND KINDS OF AGENCY
principal’s business
Essential elements of an agency Agent in good faith but prejudices 3rd parties
Principal is liable for damages
1. Consent (express or implied) of the parties to establish
the relationship.

43
 CIVIL LAW

Express v. Implied Agency Agency by operation of law

BASIS EXPRESS AGENCY IMPLIED AGENCY Instances where an agency is created by operation of law
One where the One which is
agent has been implied from the 1. When the agent withdraws from the agency for a valid
actually acts of the reason, he must continue to act until the principal has had
authorized by the principal. a reasonable opportunity to take the necessary steps like
As to the appointment of a new agent to remedy the situation
principal, either
definition caused by the withdrawal (Art. 1929).
orally or in
writing. 2. In case a person declines an agency, he is bound to
observe the diligence of good father of the family in the
custody and preservation of the goods forwarded to him
When it is directly When it is by the owner until the latter should appoint an agent (Art.
conferred by incidental to the 1885).
words. transaction or
reasonably A special power of attorney is required (1992, 2004 BAR)
necessary to
accomplish the 1. To create or convey real rights over immovable property.
As to purpose of the 2. To enter into any contract by which the ownership of an
authority agency, and immovable is transmitted or acquired either GRatuitously
therefore, the or for a valuable consideration.
principal is 3. To loan or borrow money, unless the latter act be urgent
deemed to have and indispensable for the preservation of the things which
actually intended are under administration.
the agent to 4. To lease any real property to another person for more
possess. than one year.
5. To make such payments as are not usually considered as
Apparent authority v. Authority by estoppel acts of administration.
6. To obligate principal as guarantor or surety.
BASIS Apparent Authority by 7. To bind the principal to render some service without
Authority Estoppel compensation.
That which is Arises when the 8. To bind the principal in a contract of partnership.
though not principal, by his 9. To ratify obligations contracted before the agency.
actually GRanted, culpable negligence, 10. To accept or repudiate an inheritance.
As to the 11. To effect novation which put an end to obligations already
the principal permits his agent to
knowledge of the in existence at the time the agency was constituted.
knowingly exercise powers not
principal of the 12. To make gifts, except customary ones for charity or those
permits the agent GRanted to him, even
authority of the made to employees in the business managed by the agent.
to exercise or though the principal
agent 13. To compromise, to submit questions to arbitration, to
holds him out as may have no notice
possessing. or knowledge of the renounce the right to appeal from a judgment, to waive
agent’s conduct. objections to the venue of an action or to abandon a
prescription already acquired.
Founded in Founded on the
14. Any other act of strict dominion.
As to the conscious principal’s negligence
15. To waive an obligation GRatuitously (NCC, Art. 1878).
establishment of permission of in failing properly to
the authority acts beyond the supervise the affairs
OBLIGATIONS OF THE PRINCIPAL
powers GRanted. of the agent.
Obligations of the principal to the agent
Implied agency v. Agency by estoppel
To:
BASIS IMPLIED AGENCY BY
1. Comply with all obligations which the agent may have
AGENCY ESTOPPEL
contracted within the scope of his authority [NCC, Art.
Agent is a true If caused by the 1910(1)].
As to agent, with rights “agent”, he is not 2. Advance to the agent, should the latter so request, the
liability and duties of an considered a true sums necessary for the execution of the agency (NCC, Art.
between agent. agent, hence, he 1912).
principal has no rights as 3. Reimburse the agent for all advances made by him, even if
and agent such. the business or undertaking was not successful, provided
the agent is free from fault (Ibid.).
1. The principal is 1. If caused by 4. Indemnify the agent for all damages which the execution
always liable; the principal, of the agency may have caused the latter without fault or
2. The agent is he is liable, negligence on his part (NCC, Art. 1913).
never but only if the 5. Pay the agent the compensation aGReed upon, or if no
As to personally 3rd person compensation was specified, the reasonable value of the
liability to liable. acted on the agent’s services (De Leon, 2014).
third misrepresenta
persons tion; Irrevocable agency
2. If caused by
the agent An agency is irrevocable
alone, only the
agent is liable. 1. If a bilateral contract depends upon it.
2. If it is the means of fulfilling an obligation already
contracted.

44
 UST LAW PRE-WEEK NOTES 2018

3. If partner is appointed manager and his removal from the enforce an express enforce an implied
management is unjustifiable (NCC, Art 1927). (2001 BAR) trust, so long as trust, even when
4. If it has been constituted in the common interest of the Laches or there is no express there is no express
principal and the agent (NCC, Art. 1930). extinctive repudiation of the repudiation of the
5. Stipulation pour atrui (NCC, Art. 1311). prescription trust by the trustee trust by the trustee
and made known and made known
MODES OF EXTINGUISHMENT to the beneficiary, to the beneficiary,
cannot be barred may be barred by
1. Expiration of the period by laches or laches or by
2. Death, civil interdiction, insanity or insolvency of extinctive extinctive
principal or of the agent prescription. prescription.
3. Withdrawal by the agent
4. Accomplishment of the object or the purpose of the Prescriptibility of actions to enforce trust under Art. 1456
agency
5. Revocation An action for reconveyance of real property based upon a
6. Dissolution of the firm or corporation which entrusted or constructive or implied trust, resulting from fraud, may be
accepted the agency (NCC, Art. 1919). barred by the statute of limitations. An action may be filed
from the discovery of the fraud. In some cases, the discovery is
Q: Is the sale of the land by the agent after the death of the deemed to have taken place when new certificates of title were
principal valid? issued exclusively in the name of another person. (Gerona v. De
Guzman, 11 SCRA 153, May 29, 1964)
A: Article 1931 provides that an act done by the agent after the
death of the principal is valid and effective if these two Period of prescription
requisites concur:
BASIS PRESCRIPTIVE PERIOD
1. that the agent acted without the knowledge of the death of Annulment of voidable Four (4) years from the
the principal; and contract based on discovery of the fraud.
2. that the third person who contracted with the agent fraudulent registration of [Art. 1391 (4) Civil Code]
himself acted in good faith. the subject property.
Declaration of nullity or Imprescriptible. (Art.
Good faith here means that the third person was not aware of inexistence of a void or 1410, Civil Code)
the death of the principal at the time that he contracted with inexistent contract based
said agent (Rallos v. Felix Go Chan, G.R. No. L-24332, January 31, on fraudulent registration
1978). of the subject property.
Based on fraudulent Ten (10) years from the
PART IX – TRUST registration of the subject discovery of the fraud.
property but the action [Art. 1144 (2) Civil Code]
It is the legal relationship between one person having an does not involve
equitable ownership in a certain property and another person annulment of contract.
owning the legal title to such property (Jurado). If the legitimate owner of An action to quiet title.
the subject property Therefore,
NOTE: Trust is founded in equity and can never result from which was fraudulently imprescriptible. (Caragay
acts violative of law (Deluao vs Casteel, 26 SCRA 415, 1968 and registered in the name of Layno v. Court of Appeals,
29 SCRA 350, 1969). another had always been 133 SCRA 718)
in possession thereof
KINDS OF TRUST

Express trust v. Implied trust Conversion of Implied Trust to Express Trust

BASIS EXPRESS TRUST IMPLIED TRUST An implied trust may converted to an express trust through
Created by the Come into being by recognition by the implied trustee of the right to the property
Definition intention of the operation of law. It of the owner (De Leon, 2014).
(NCC, Art. trustor or of the may be either
1441) parties. resulting or PART X – CREDIT TRANSACTIONS
constructive.
Created by the Those which, LOAN
direct and positive without being
acts of the parties, expressed, are What is a Loan?
by some writing or deducible from the
Manner of deed or will or by nature of the It is a contract where one of the parties delivers to another,
creation words evidencing transaction by either something not consumable so that the latter may use the
an intention to operation of law as same for a certain time and return it, in which case is called a
create a trust. matters of equity, commodatum; or money or other consumable things, upon the
independently of condition that the same amount of the same kind and quality
the particular shall be paid, in which case the contract is simply called a loan
intention of the or mutuum (NCC, Art. 1933). (1993, 2004, 2005 BAR)
parties.
An express trust An implied trust Bank deposits, which are in the nature of a simple loan or
concerning an concerning an mutuum, must be paid upon demand by the depositor. (MBTC
Parole immovable or any immovable or any v. Rosales, GR No. 183204, January 13, 2014).
evidence interest therein interest therein
cannot be proved may be proved by
by parole evidence parole evidence
(NCC, Art. 1443). (NCC, Art. 1457).
An action to An action to

45
 CIVIL LAW

COMMODATUM possession of the

thing loaned but
What are the kinds of Commodatum?
1. Ordinary commodatum – bailor cannot just demand the GR: not its fruit
return of the thing at will, because there is a period because the bailor
aGReed upon by the parties. remains the owner
2. Precarium – one whereby the bailor may demand the
thing loaned at will in the following cases: XPNs:
a. If the duration of the contract had not been use of the fruits is
stipulated; stipulated;
b. If the use to which the thing loaned should be enjoyment of the
devoted had not been stipulated; or fruits is stipulated; or
c. If the use of the thing is merely by tolerance of the enjoyment of the
owner fruits is incidental to
its use
NOTE: The word “owner” in Art. 1947 (2) is not proper Real or personal Only personal
because the bailor need not be the owner of the thing (Pineda, property property
2006; Art. 1938).
Generally non-
What are the elements of Commodatum? Subject consumable things
1. There must be a bailor and bailee; Matter but may cover
2. the bailee acquires the use of the thing; consumables if the
3. it must be GRatuitous purpose of the
contract is for
Who are the parties in Commodatum? exhibition.
1. Bailor/Comodatario/Commodans – The giver/ lender - Ownership Retained by the Passes to the debtor
The party who delivers the possession or custody of the of the bailor
thing bailed. thing
2. Bailee/Comodante/Commodatarius – The recipient/ Thing to Exact thing loaned Equal amount of the
borrower - The party who receives the possession or be same kind and
custody of the thing thus delivered. returned quality
Who bears Bailor Debtor
MUTUUM risk of loss
In case of urgent Only after the
What are the characteristics of Mutuum? need even before the expiration of the
When to expiration of term term
1. Borrower acquires ownership of the thing (Art 1953). return (the contract is in the
2. If the thing loaned is money, payment must be made in the meantime
currency which is legal tender in the Philippines and in suspended)
case of extraordinary deflation or inflation, the basis of Contract of use Contract of
payment shall be the value of the currency at the time of Contract
consumption
the creation of the obligation (Art 1249 and 1250).
3. If fungible thing was loaned, the borrower is obliged to INTEREST AND THE SUSPENSION OF THE USURY LAW
pay the lender another thing of the same kind, quality and
quantity even if it should change in value. Explain the rules on interest
Explain the rules on payment of loan GR: No interest shall be due unless it is stipulated in writing
(Art. 1956)(2004 BAR).
If the object of loan is
1. Money – Governed by Arts. 1249 and 1250 XPN: In case of interest on damages or indemnity for damages,
it need not be in writing.
GR: Payment shall be made in the currency stipulated.
XPN: If not, that currency which is legal tender in the The rate of interest for the loan or forbearance of any money,
Philippines. goods or credits and the rate allowed in judgments, in the
absence of an express contract as to such rate of interest, shall
In case of extraordinary inflation – value of the currency at the be six percent (6%) per annum (BSP Circular No. 799, July 1,
time of the creation of the obligation. 2013).
Loan of money can be payable in kind if there is an agreement Basis for the interest rate for compensatory interest
between the parties 1. Central Bank Circular No. 799 – 6% per annum in
cases of:
2. Consumable or fungible thing – Debtor or borrower shall a. Loans
pay another thing of the same kind, quality and quantity b. Forbearance of money, goods and credits
even if it should change in value. If cannot be done, the c. Judgment involving such loan or forbearance
value of the thing at the time of its perfection (delivery) 2. Art. 2209, NCC – 6% per annum in cases of:
shall be the basis of the payment of the loan (Art 1955). a. Other sources (i.e. sale)
b. Damages arising from injury from person.
Commodatum v. Mutuum (1996, 2004 BAR) c. Loss of property which does not involve a loan.
3. Interest accruing from unpaid interest (compound
BASIS COMMODATUM MUTUUM interest) – There must first be a stipulation for
Non-consumable and Money or payment of interest due and this shall earn interest
Object
Non- fungible consumable thing from the time it is judicially demanded although the
GRatuitous, May or may not be obligation may be silent upon this point.
Cause
otherwise it is a lease GRatuitous
Purpose Use or temporary Consumption

46
 UST LAW PRE-WEEK NOTES 2018
With regard to an award of interest in the concept of
actual and compensatory damages, please state the
guidelines regarding the manner of computing legal
interest in the following situations:
A. When the obligation is breached and it consists in
the payment of a sum of money like a loan or
forbearance of money
B. When the obligation does not constitute a loan or
forbearance of money
Consider the issuance of BSP-MB Circular No. 799, which
became effective on July 1, 2013. (BAR 2016)
A. When the obligation is breached and it consists in the
payment of a sum of money like a loan or forbearance of
money, in the absence of stipulation, the rate of interest
shall be the legal rate of 6% per annum (Art. 2209 of
NCC), which was increased to 12% per annum per MB
Circular 905 (series of 1982), to be computed from
default. The twelve percent (12%) per annum legal
interest shall apply only until June 30, 2013. From July 1,
2013, the new rate of six percent (6%) per annum shall
be the prevailing rate of interest when applicable. (Nacar
v. Gallery Frames, GR No. 189871, August 13, 2013).
The interest on the amount of damages awarded may be
imposed at the discretion of the court at the rate of 6% per
annum. No interest, however, shall be adjudged on
unliquidated claims or damages, except when or until the
demand can be establised with reasonable certainty.
Accordingly, where the demand is establised with reasonable
certainty, the interest shall begin to run from the time the
claim is made judicially or extra-judicially, but when such
certainty cannot be so reasonably establoished at the time the
demand is made, the interest shall begin to run only from the
date the judgment of the court is made (at which time the
quantification of damages may be deemed to have been
reasonably ascertained). The actual base for the computation
of legal interest shall, in any case, be on the amount finally
adjudged.
DEPOSIT
What is a deposit?
Deposit is a contract whereby a person (depositor) delivers a
thing to another (depositary), for the principal purpose of
safekeeping it, with the obligation of returning it when
demanded (Pineda, 2006)
What are the characteristics of a deposit?
1. It is Real contract
2. The object of the contract must be a movable property
XPN: Judicial deposit
3. The purpose is for the safekeeping of the thing deposited.
4. It is GRatuitous, unless there is a:
a. Contrary agreement; or
b. The depositary is engaged in the business of storing
goods, like a warehouseman (Art. 1965).
c. Where the property is saved from destruction
without knowledge of the owner, the latter is bound
to pay the other person just compensation (as in case
ofinvoluntary deposit).
5. The depositary cannot use the thing deposited, unless:
a. Permitted by the depositor; or
b. Preservation of the thing requires its use, but only for
said purpose.
Are fixed, savings and current deposits in banks governed
by the rules on deposit?
Fixed, savings and current deposits in banks and other similar
institutions are not true deposits but are considered simple
loans because they earn interest (Art. 1980). Bank deposits are
47
in the nature of irregular deposit but they are really loans
governed by the law on loans (De Leon, 2010). (1997, 1998,
2009 BAR)
What are the obligations of a depositary in voluntary
deposit?
1. To keep the thing safely and return it
2. Exercise same diligence as he would exercise over his own
property
3. GR:Not to deposit the thing with a third person
XPNs:
a. When expressly authorized by stipulation; and
b. When the preservation of the thing requires its use
(Art. 1977)
Depositary is liable for the loss if:
i. He deposits the thing to a third person without
authority, even though the loss is due to fortuitous
events
ii. Deposits the thing to a third person who is manifestly
careless or unfit although there is authority.
4. If the thing should earn interest:
a. Collect interest as it falls due
b. Take steps to preserve the value and rights
corresponding to it
5. Not to commingle things if so stipulated
6. GR:Not to make use of the thing deposited
XPNs:
a. When preservation of thing deposited requires its
use
b. When authorized by depositor
GR: In such case, it is no longer a deposit but a
contract of loan or commodatum, as the case may be.
XPN: Principal reason for the contract is still
safekeeping, it is still deposit.
7. When the thing deposited is delivered sealed and closed:
a. Return the thing in the same condition
b. Pay damages if seal be broken through his fault
c. Keep the secret of the deposit when seal is broken w/
or w/o his fault
However, the depositary is authorized to open the
seal or lock when:
i. There is presumed authority (i.e. the key is delivered)
ii. Out of necessity
8. GR:Pay for any loss or damage that may arise due to his
fault
XPN: Liability of loss through fortuitous event
XPNs to XPN Even in case of loss through fortuitous
event, still liable if: (Art. 1979)
a. Stipulated
b. He uses the thing without depositor’s permission
c. He delays its return
d. He allows others to use it (even if he himself is
authorized to use it)
9. Return the thing deposited with all its fruits, accessions,
and accessories (Art. 1983)
10. Pay interest on sums converted to personal use if the
deposit consists of money
When is deposit considered as necessary deposit?
1. When it is in compliance with a legal obligation;
2. It takes place on the occasion of any calamity, such as fire,
storm, flood, pillage, shipwreck, or other similar events
(Art. 1996).
3. Made by passengers with common carriers; or
4. Made by travelers in hotels or inns (Art. 1998).
 CIVIL LAW

When are keepers of hotels or inns may be held liable? 8. A pledge or mortgage of his own property has been given
by Guarantor as special security.
1. The keepers of hotels or inns shall be held responsible for 9. Guarantor fails to interpose it as a defense before
loss of thing in case of deposit when both are present: judgment is rendered.
a. They have been previously informed by guest about
the effects the latter brought in, and The terms of a contract govern the parties’ rights and
b. The guest has taken precautions prescribed for their obligations. When a party undertakes to be “jointly and
safekeeping. severally” liable, it means that the obligation is solidary.
2. They are liable regardless of the deGRee of care exercised Furthermore, even assuming that the party is liable only as a
when: guarantor, he can be held immediately liable without the
a. Loss or injury is caused by his employees or even by benefit of excussion if the guarantor aGReed that his liability is
strangers (Art. 2000); or direct and immediate (Orix Metro Leasing and Finance Corp., v.
b. Loss is caused by act of thief or robber when there is Cardline Inc, G.R. No. 201417, January 13, 2016).
no use of arms or irresistible force(Art. 2001).
3. The keepers of hotels or inns are not liable for loss of thing EXTINGUISHMENT OF GUARANTY
in case of deposit when:
a. Loss or injury is caused by force majeure; What are the Grounds for the extinguishment of guaranty?
b. Loss due to the acts of guests, his family, his employees, or
visitors; and 1. Principal obligation is extinguished
c. Loss arises from the character of the goods (Art. 2002). 2. Same causes as all other obligations
3. If creditor voluntarily accepts immovable or other
When does judicial deposit takes place? properties in payment of the debt (even if he should
afterwards lose the same through eviction or conveyance
Judicial deposit (sequestration) take place when an attachment of property) (Art. 2077)
or seizure of property in litigation is ordered by a court (Art. 4. Release in favor of one of the guarantors, w/o consent of
2005). the others, benefits all to the extent of the share of the
It is auxiliary to a case pending in court. The purpose is to guarantor to whom it has been GRanted (Art. 2078)
maintain the status quo during the pendency of the litigation 5. Extension GRanted to debtor by creditor without consent
or to insure the right of the parties to the property in case of a of guarantor (Art. 2079)
favorable judgment (De Leon, 2010). 6. When by some act of the creditor, the guarantors even
though they are solidarily liable cannot be subrogated to
GUARANTY AND SURETYSHIP the rights, mortgages, and preferences of the former (Art.
(1992, 1997, 2010 BAR) 2080)
GUARANTY SURETYSHIP
Collateral undertaking Surety is an original PACTUM COMMISSORIUM
promissory undertaking (1999, 2001, 2004, 2009 BAR)
Guarantor-secondarily Surety-primarily liable
liable Explain Pactum Commissorium
Guarantor binds himself to Surety undertakes to pay if Pactum commisorium is a stipulation whereby the thing
pay if the principal cannot principal pledged or mortgaged or subject of antichresis shall
pay does not pay automatically become the property of the creditor in the event
Insurer of solvency of debtor Insurer of the debt of non-payment of the debt within the term fixed. Such
stipulation is null and void (NCC, Art. 2085).
Guarantor can avail of the Surety cannot avail of the
benefit of excussion and benefit of excussion and What are the elements of Pactum Commissorium?
division in case creditor division
proceeds against him 1. That there should be a pledge or mortgage wherein
property is pledged or mortgaged by way of security for
EFFECTS OF GUARANTY: BENEFIT OF EXCUSSION the payment of the principal obligation; and
2. That there should be a stipulation for an automatic
What are the requisites for the exercise of the benefit of appropriation by the creditor of the thing pledged or
excussion? mortgaged in the event of non-payment of the principal
1. The guarantor must set up the right of excussion against obligation within the stipulated period(Spouses Roberto
the creditor upon the latter’s demand for payment from Pen v. Spouses Santos, G.R. No. 160408, January 11, 2016).
him; and
2. He must point out to the creditor the available property of PLEDGE
the debtor (not exempted from execution) found within
the Philippine territory (Art. 2060). What are the requisites of a pledge? (1991, 1994, 1996,
1999, 2001 BAR)
When does benefit of excussion unvailable?
1. Constituted to secure the fulfillment of a principal
1. Guarantor has expressly renounced it; obligation;
2. Guarantor has bound himself solidarily with the Debtor; 2. Pledgor is the absolute owner of the thing pledged;
3. Debtor is insolvent; 3. Persons constituting the pledge have the free disposal of
4. Guarantor has absconded, or cannot be sued within the their property, and in the absence thereof, that they be
Philippines unless he left a manager or representative; legally authorized for the purpose (Art. 2085).
5. If it may be presumed that an execution on the property of 4. A contract of pledge is perfected when the thing pledged
the Debtor cannot satisfy the obligation (Art. 2059); is placed in the actual possession of or delivered to the
6. Guarantor does not invoke the benefit against Creditor pledgee or a third person designated by the parties by
upon demand to him for payment and he does not point common consent (Art. 2093).
out available property of the Debtor within the
Philippines sufficient to cover the obligation (Art. 2060).
7. Guarantor is a judicial bondsman or sub-surety (Art.
2084).

48
 UST LAW PRE-WEEK NOTES 2018
RIGHTS AND OBLIGATIONS
OF THE PLEDGOR AND THE PLEDGEE
What are the rights of a pledge?
1. Retain the thing until debt is paid (Art. 2098).
2. To be reimbursed for the expenses made for the
preservation of the thing pledged (Art. 2099).
3. Creditor may bring any action pertaining to the pledgor in
order to recover it from or defend it against a third person
(Legal Subrogation) (Art. 2103).
What are the obligations of a pledgee?
1. Take care of the thing pledged with the diligence of a good
father of a family (Art. 2099).
2. GR: Pledgee cannot deposit the thing pledged to a third
person.
XPN: Unless there is stipulation to the contract (Art.
2100).
3. Apply the fruits, income, dividends, or interests produced
or earned by the property, to interests or expenses first,
then to the principal (Art. 2102).
4. GR: Cannot use the thing pledged without authority (Art.
2104).
XPNs:
a. If the pledgor had given him authority or permission
to use it;
b. If the use of the thing is necessary for its preservation
but only for that purpose.
5. Return the thing pledged to the pledgor when the
principal obligation is fulfilled or satisfied it.
What are the rights of the pledgor?
1. Right to dispose the thing pledged, provided there is
consent of the pledgee (Art. 2097)
2. Right to ask that the thing pledged be deposited (Art.
2104 and Art. 2106)
3. Right to substitute thing pledged (Art. 2107)
REAL MORTGAGE
What are the requisites for a valid constitution of a real
mortgage? (1991, 1994, 1996, 1999, 2001 BAR)
1. It covers only immovable property and alienable real
rights imposed upon immovables
2. It must appear in a public instrument
3. Registration in the Registry of Property is necessary to
bind third persons
A juridical entity does not have the power to mortgage its
properties in order to secure loans of other persons. Parties
dealing with corporations cannot simply assume that their
transaction is within the corporate powers. The acts of a
corporation are still limited by its powers and purposes and
provided in the law and its articles of incorporation (University
of Mindanao, Inc. v. Bangko Sentral ng Pilipinas, G.R. No.
194964, January 11, 2016).
What is a Dragnet clause?
It is a mortgage provision which is specifically phrased to
subsume all debts of past or future origin. It is a valid and legal
undertaking, and the amounts specified as consideration in the
contracts do not limit the amount for which the pledge or
mortgage stands as security, if from the four corners of the
instrument, the intent to secure future and other indebtedness
can be gathered. A pledge or mortgage given to secure future
advancements is a continuing security and is not discharged by
the repayment of the amount named in the mortgage until the
full amount of all advancements shall have been paid (Premiere
Development Bank v. Central Surety & Insurance, Inc., G.R. No.
176246, February 13, 2009).
49
It is a clause which operates as a convenience and
accommodation to the borrowers as it makes available
additional funds without their having to execute additional
security documents, thereby saving time, travel, loan closing
costs, costs of extra legal services, recording fees etc.
Kinds of foreclosure
1. Judicial – Governed by Rule 68, Rules of Court
2. Extrajudicial – Mortgagee is given a SPA to sell the
mortgaged property (Act No. 3135)
Requisites for valid right of redemption
1. Must be made within one year from the time of the
registration of the sale.
2. Payment of the purchase price of the property plus 1%
interest per month together with the taxes thereon, if any,
paid by the purchaser with the same rate of interest
computed from the date of registration of the sale; and
3. Written notice of the redemption must be served on the
officer who made the sale and a duplicate filed with the
proper Register of Deeds (Rosales v. Yboa, G.R. No. L-
42282, February 28, 1983).
The redemptioner should make an actual tender in good faith
of the full amount of the purchase price as provided above, i.e.,
the amount fixed by the court in the order of execution or the
amount due under the mortgage deed, as the case may be, with
interest thereon at the rate specified in the mortgage, and all
the costs, and judicial and other expenses incurred by the bank
or institution concerned by reason of the execution and sale
and as a result of the custody of said property less the income
received from the property (Heirs of Quisimbing v. PNB, G.R.
No. 178242, Jan. 20, 2009).
As instituted heirs only to a part of the free portion of Basilia’s
estate, the GRandchildren are entitled to receive their share, if
any, only after payment of all debts, funeral charges, expenses
of administration, allowance to the widow and inheritance tax.
The disputed share was sold at a public auction to satisfy the
judgment claim of Benita as creditor. When it was redeemed
by Gepuela, no further redemption was made. Upon expiration
of the periods to redeem, Gepuela became entitled, as a matter
of right, to the consolidation of the ownership. The share no
longer formed part of the estate which can theoretically be
distributed to the GRandchildren(Heirs of Jose Ma. Gepuela v.
Bernita Menez-Andres, G.R. No. 173636, January 13, 2016).
ANTICHRESIS
Wha are the form of a contract of antichresis and its
contents?
1. Covers only the Fruits of real property
2. Delivery of the property necessary so that CR may receive
the fruits therefrom
3. Amount of principal and interest must be specified in
writing, otherwise, the contract shall be void.
4. Express agreement that debtor will give Possession to the
CR and that CR will apply the fruits to the interest and
then to the principal.
The fruits of the immovable which is the object of the
antichresis must be appraised at their actual market value at
the time of the application (Art. 2138).The property delivered
stands as a security for the payment of the obligation of the
debtor in antichresis. Hence, the debtor cannot demand its
return until the debt is totally paid.
Who are the parties to an Antichresis?
1. Antichretic creditor – One who receives the fruits on the
immovable property of the debtor.
 CIVIL LAW

2. Antichretic debtor – One who pays his debt through the 5. After the sale of the chattel at public auction, the right of
application of the fruits of his immovable property. redemption is no longer available to the mortgagor
(Cabral v. Evangelista, 28 L-26860, July 30, 1969).
What are the obligations of an antichretic creditor?
QUASI-CONTRACTS
1. Pay the taxes and charges assessable against the property
like real estate taxes and others; What is a Quasi-Contract?
2. Bear the necessary expenses for the preservation of the
property; Lawful, voluntary, and unilateral acts which generally require
3. Bear the expenses necessary for the repair of the a person to reimburse or compensate another in accordance
property; and with the principle that no one shall be unjustly enriched at the
4. Apply the fruits received for payment of the outstanding expense of another (Art. 2142).
interests, if any, and thereafter of the principal.
What are the essential requisites of negostiorum gestio?
CHATTEL MORTGAGE
1. Taking charge of another’s business or property
Requisites 2. The property or business must have been abandoned or
neglected
1. GR: It covers only movable property 3. The officious manager (gestor) must not have been
XPN: When the parties treat as personalty that which is expressly or implicitly authorized
according to its nature realty. 4. The officious manager (gestor) must have voluntarily
2. Registration with the Chattel Mortgage Register. taken charge
3. Description of the property. 5. The officious manager or gestor must not be acting
erroneously on the belief that he is the owner of the
Section 7 of the Chattel Mortgage Law does not demand property or business.
specific description of every chattel mortgaged in the deed of
mortgage, but only requires that the description of the What are the requisites for solutio indebiti?
mortgaged property be such as to enable the parties to the
mortgage or any other person to identify the same after a 1. Receipt of something.
reasonable investigation and inquiry (Saldana v. Phil. Guaranty 2. There was no right to demand it
Co., Inc., G.R. No. L-13194, January 29, 1960); otherwise, the 3. Undue delivery was because of mistake.
mortgage is invalid.
CONCURRENCE AND PREFERENCE OF CREDITS/ FRIA
4. Accompanied by an affidavit of good faith to bind third SECTION 133
persons.The absence of an affidavit of good faith does not
affect the validity of the contract. What is a liquidation Process?

Registration of the Chattel mortgage
It is tantamount to the symbolic delivery of the mortgage to
the mortgagee, which is equivalent to actual delivery (Meyers v.
Thein, G.R. No. 5577, February 21, 1910).
The proceeding where claims are filed and the assets of the
insolvent debtor are disposed and the proceeds are divided
among the creditors.
What is a Liquidation Plan?

Registration period of the chattel mortgage
The law does not provide period within which the registration
should be made. Yet, the law is substantially and sufficiently
complied with where the registration is made by the
mortgagee before the mortgagor has complied with his
principal obligation and no right of innocent third persons is
prejudiced.
Registration in Real Estate Mortgage and Registration in
Chattel Mortgage
The difference in registration of real mortgage and chattel
mortgage is that a deed of real estate mortgage is considered
registered once recorded in the entry book. However, chattel
mortgage must be registered not only in the entry book but
also in the Chattel Mortgage Register.
Procedure in foreclosure of a chattel mortgage
1. The mortgagee may, after thirty (30) days from the time
of the default or from the time the condition is violated,
cause the mortgaged property to be sold at public auction
by a public officer (Sec. 14, Act No. 1508).
2. The 30-day period to foreclose a chattel mortgage is the
minimum period after violation of the mortgage condition
for the mortgage
3. The creditor has at least ten (10) days notice served to the
mortgagor
4. The notice of time, place and purpose of such sale, is
posted
The Liquidation Plan shall, as a minimum enumerate all the
assets of the debtor and a schedule of liquidation of the assets
and payment of the claims, which within 3 months from the
Liquidators assumption to his office must prepare and submit
to the court (FRIA, Sec, 129).
The Liquidation Plan and its Implementation shall ensure that
the concurrence and preference of credits as enumerated in
the Civil Code of the Philippines and other relevant laws shall
be observed, unless a preferred creditor voluntarily waives his
preferred right. For purposes of this chapter, credits for
services rendered by employees or laborers to the debtor shall
enjoy first preference under Article 2244 of the Civil Code,
unless the claims constitute legal liens under Article 2241 and
2242 thereof (FRIA, Sec. 133).
NOTE: The liquidator shall be deemed an officer of the court
with the principal duly of preserving and maximizing the value
and recovering the assets of the debtor, with the end of
liquidating them and discharging to the extent possible all the
claims against the debtor (FRIA, Sec. 119)
What are the preferred credits on specific movables as
provided in Art. 2241?
Summary:
1. Taxes
2. Malversation by public officials
3. Vendor’s lien
4. Pledge, chattel mortgage
5. Mechanic’s lien

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 UST LAW PRE-WEEK NOTES 2018

6. Laborer’s wages 1. All persons not expressly prohibited by law (NCC, Art.
7. Salvage 796);
8. Tenancy 2. At least 18 years of age; (NCC, Art. 797); and
9. Carrier’s lien 3. Of sound mind (NCC, Art. 798).
10. Hotel’s lien
11. Crop loan It is not necessary that the testator be in full possession of all
12. Rentals – one year his reasoning faculties or that his mind be wholly unbroken,
13. Deposit unimpaired or unshattered by disease, injury or other cause.
In the foregoing cases, if the movables to which the lien or
preference attaches have been wrongfully taken, the creditor To be of sound mind, it shall be sufficient if the testator was
may demand them from any possessor within thirty (30) days able, at the time of making the will, to know the:
from the unlawful seizures through accion subrogatoria. a. Nature of the estate to be disposed of;
b. Proper objects of his bounty; and
Whar are the preferred credits on specific immovables as c. Character of the testamentary act (NCC, Art. 799).
provided in Art. 2242?
The requirement that the testator be of sound mind is essential
Summary: only at the time of the execution of the will.

1. Taxes GR: The law presumes that every person is of sound mind, in
2. Vendor’s lien the absence of proof to the contrary [NCC, Art. 800(1)].
3. Contractor’s lien
4. Lien of materialmen XPNs: If the testator was:
5. Mortgage 1. Publicly known to be insane, one month or less, before
6. Expenses of preservation making his will [NCC, Art. 800(2)]; or
7. Recorded attachments 2. Under guardianship at the time of the making of the will
8. Warranty in partition (Torres v. Lopez, G.R. No. L-25966, November 1, 1926)
9. Conditional donations
10. Premiums for 2 years – insurers NOTE: Mere weakness of mind or partial imbecility from
disease of body or from age does not necessarily render a
PART XI – SUCCESSION person incapable of making a will.

A person suffering from civil interdiction is qualified to

GENERAL PROVISIONS
SUCCESSION OCCURS AT THE MOMENT OF DEATH
The rights to the succession are transmitted from the moment
of the death of the decedent (NCC, Art. 777).
The law in force at the time of the decedent’s death will
determine who the heirs should be (Uson v. Del Rosario,G.R. No.
L-4963, January 29, 1953).
An heir is one who succeeds to the whole (universal) or aliquot
part of the estate. A devisee or legatee is one who succeeds to
definite, specific, and individualized properties.
Requisites of succession (DATE)
1. Death of decedent;
2. Acceptance of the inheritance by the successor;
3. Transmissible estate;
4. Existence and capacity of successor, designated by
decedent or law.
TESTAMENTARY SUCCESSION
Rule on non-delegability of will-making
The exercise of the disposing power is the act that cannot be
delegated. But the mere mechanical act of drafting the will may
be done by a third person as it does not constitute a delegation
of the will or disposition.
The following, however may be entrusted to a third
person:
1. Distribution of specific property or sums of money that
the testator may leave in general to specified classes or
causes.
2. Designation of the persons, institutions or establishments
to which such property or sums are to be given or applied
(NCC, Art. 786).
TESTAMENTARY CAPACITY AND INTENT
Requisites of testamentary capacity / who may make a
will
make a will. He is deprived of the power to dispose of his
properties through acts inter vivos but not through acts mortis
causa (RPC, Art. 34).
FORMAL VALIDITY OF WILLS
It is the law of the country where the will was executed that
governs the form and solemnities of wills [NCC, Art. 17(1);
Art. 815]. When a Filipino is in a foreign country, he is
authorized to make a will in any of the forms established by
the law of the country in which he may be. Such will may be
probated in the Philippines (NCC, Art. 815).
The will of an alien who is abroad produces effect in the
Philippines if made with the formalities prescribed by the law
of the place in which he resides, or according to the
formalities observed in his country, or in conformity with
those which the Civil Code prescribes (Art. 816). (1990, 1998,
2009 BAR)
GOVERNING LAW AS TO SUBSTANTIVE VALIDITY
Laws relating to family rights and duties, or to the status,
condition and legal capacity of persons are binding upon
citizens of the Philippines even though living abroad (NCC, Art.
15).
Matters pertaining to intestate and
testamentarysuccession which are regulated by the
national lawof the deceased:
1. Order of succession;
2. Amount of successional rights;
3. Intrinsic validity of testamentary provisions; and
4. Capacity to succeed (NCC, Art. 16; NCC, Art. 1039).
Formal requirements common to both notarial and
holographic wills (2008 Bar)
1. Law governing extrinsic validity of wills;
2. In writing; and
NOTE: Nuncupative wills are oral wills declared or
dictated by the testator and dependent merely on oral

51
 CIVIL LAW
testimony. Philippine laws do not recognize the validity of
“nuncupative wills.”
3. In a language or dialect known to the testator.
NOTARIAL WILLS
Formalities in the execution of a notarial will (LaW-
SPA2N2)
1. In writing;
2. In a language or dialect known to the testator;
This rule is mandatory. Otherwise, the will is void.
This rule does NOT apply to witnesses because the
witnesses do not need to know the contents of the will.
The attestation clause, on the other hand, must be
understood by the witnesses even if it is in a language not
known to them.
Presumption that the testator knew the languagein
which the will was written is present when:
a. The will is in a language or dialect generally spoken
in the place of execution; and
b. The testator must be a native or resident of said
locality (Abangan v. Abangan, G.R. No. 13431, Nov. 12,
1919).
3. Subscribed at the end thereof by the testator himself or by
the testator’s name written by some other person in his
presence, and by his express direction;
The signature of the testator of the will must be at the end
of the will, which may be at the logical end (last
testamentary disposition) or physical end (non
dispositive provisions).
NOTE: In notarial wills, subscription by fingerprint is
allowed as long as it is voluntarily made (Matias v. Salud,
G.R. No. L-10751) but not in holographic wills given the
explicit requirement for a holographic will to be entirely
written, dated and signed with the handwriting of the
testator.
Cross as signature
GR: A cross is not a sufficient signature.
XPNs: The cross appearing on the will is:
a. The customary, habitual signature of the testator; or
b. One of the ways the testator signs his signature.
The one who alleges that it is the customary, habitual or
one of the ways he sign his signature has the burden of
proof (Garcia v. Lacuesta, G.R. No. L-4067, November 29,
1951).
Thumbmark as signature
Q: During the day of the signing of the will, the testator fell
down the stairs and broke both her arms. Coming from
the hospital, the testator insisted on signing her will by
thumbmark. Thereafter, the testator died. May the will be
admitted to probate?
A: YES. The testator’s thumbmark in this case has all the
hallmarks of a valid signature. The testator clearly
intended to use her thumbmark as her signature and the
circumstances justified her use of her thumbmark (Garcia
v. La Cuesta, G.R. No. L-4067, November 29, 1951).
4. Attested and subscribed by three or more credible witnesses
in the presence of the testator and of one another;
The question whether the testator and the subscribing
witnesses to an alleged will signed the instrument in the
presence of each other does not depend upon proof of the
52
fact that their eyes were actually cast upon the paper at
the moment of its subscription by each of them, but
whether at that moment existing conditions and the
position of the parties, with relation to each other, were
such that by merely casting their eyes in the proper
direction they could have seen each other sign (Nera v.
Rimando, G.R. No. L-5971, February 27, 1911).
Actual seeing is not required, but the ability to see each
other by merely casting their eyes in the proper direction
and without any physical obstruction to prevent his doing
so (Jaboneta v. Gustilo, G.R. No. 1641, January 19, 1906).
5. The testator or the person requested by him to write his
name must also sign every page, except the last, on the left
margin in the presence of the witnesses;
Mandatory – The signing on every page in thewitnesses’
presence
Directory – The place of the signing (on the left margin).
The signature can be affixed anywhere on the page
(Balane, 2010).
6. All the pages shall be numbered correlatively in letters on
the upper part of each page;
7. Must contain an attestation clause which expressly states
the following:
1. The number of pages used upon which the will is
written;
2. The fact that the testator signed the will and every
page thereof, or caused some other person to write
his name, under his express direction, in the presence
of the instrumental witnesses;
3. The fact that the witnesses witnessed and signed the
will and all the pages thereof in the presence of the
testator and of one another.
8. Must be acknowledged before a notary public by the
testator and the witnesses (NCC, Art. 806).
WITNESSES
Instrumental witness as beneficiary in a will
The fact that a person acts as a witness to a will does not
disqualify him to be a beneficiary. However, it renders void
any legacy or devise given under said will to such person or to
his spouse, or parent or child, unless there are three other
competent witnesses to the will (NCC, Art. 823) (2010 Bar).
Such person so attesting shall be admitted as a witness as if
such devise or legacy had not been made or given.
---
Q: Stevie was born blind. He went to school for the blind,
and learned to read in Braille language. He speaks English
fluently. Can he:
a. Make a will?
b. Act as a witness to a will?
c. In either of the instances, must the will be read to
him? (2008 Bar)
A:
a. YES. Assuming that he is of legal age (Art. 797) and of
sound mind at the time of execution of the will (Art. 798),
Stevie, a blind person, can make a notarial will, subject to
compliance with the “two-reading rule” (Art. 808) and
the provisions of Arts. 804 and 806 of the Civil Code.
Stevie however, may not make a holographic will in
Braille because the writing in Braille is not handwriting.
A holographic will to be valid must be entirely written,
signed and dated by the testator in his own handwriting.
b. NO. A blind man is disqualified by law to be a witness to
a notarial will (Art. 820).
c. In case Stevie executes a notarial will, it has to be
read to him twice. First by one of the instrumental
 UST LAW PRE-WEEK NOTES 2018
witnesses and second by the notary public before whom
the will was acknowledged (NCC, Art. 808).
HOLOGRAPHIC WILLS
Probate of holographic wills; Presentation of the will is
necessary
The contents and due execution of a lost holographic will
CANNOT be established merely through oral testimonies
of witnesses who have allegedly seen or read such will.
The will itself must be presented; otherwise, it shall produce
no effect (Gan v. Yap, G.R. No. L-12190, August 30, 1958).
A holographic will which was lost or could not be found
can be proved by means of a photostatic copy (photocopy).
A photostatic copy or xerox copy of the holographic will may
be allowed because comparison can be made with the
standard writings of the testator (Rodelas v. Aranza,
G.R. No. L-58509, December 7, 1982).
JOINT WILLS
Joint wills executed by Filipinos in a foreign country shall
not be valid in the Philippines, even though authorized by the
laws of the country where they may have been executed (NCC,
Art. 819) A joint will is against the public policy of the
Philippines(2000 Bar).
REVOCATION OF WILLS
Doctrine of Presumed Revocation
Where a will which cannot be found, is shown to have been in
the possession of the testator when last seen, the presumption
is, in the absence of other competent evidence, that the same
was cancelled or destroyed. The same presumption arises
where it is shown that the testator had ready access to the will
and it cannot be found after his death.
NOTE: The presumption is not conclusive and anyone may
prove the contrary to rebut the presumption.
Doctrine of Dependent Relative Revocation
Where the testator’s act of destruction is connected with the
making of another will, so as fairly to raise the inference that
the testator meant the revocation of the old to depend upon
the efficacy of the new disposition, the revocation will be
conditional and dependent upon the efficacy of the new
disposition; and if, for any reason, the new will intended to be
made as a substitute is inoperative, the revocation fails and the
original will remains in full force.
The theory on which this principle is predicated is that the
testator did not intend to die intestate. And this intention is
clearly manifest when he executed two wills on two different
occasions and instituted his wife as his universal heir. There
can therefore be no mistake as to his intention of dying testate
(Molo v. Molo, G.R. No. L-2538, September 21, 1951).
ALLOWANCE AND DISALLOWANCE OF WILLS
PROBATE REQUIREMENT
The presentation of the will for probate is mandatory, and is a
matter of public policy.
In testate succession, there can be no valid partition among the
heirs, until after the will has been probated.
The parties CANNOT agree to waive the probate proceedings.
It is a mandatory requirement. Until admitted to probate, no
right can be claimed under the will.
---
53
Jurisdiction of the trial court as an intestate court is special
and limited as it relates only to matters having to do with the
probate of the will and/or settlement of the estate of deceased
persons, but does not extend to the determination of questions
of ownership that arise during the proceedings. This is true
whether or not the property is alleged to belong to the estate.
However, this general rule is subject to exceptions as justified
by expediency and convenience.
First, the probate court may provisionally pass upon in an
intestate or a testate proceeding the question of inclusion in,
or exclusion from, the inventory of a piece of property without
prejudice to the final determination of ownership in a separate
action. Second, if the interested parties are all heirs to the
estate, or the question is one of collation or advancement, or
the parties consent to the assumption of jurisdiction by the
probate court and the rights of third parties are not impaired,
then the probate court is competent to resolve issues on
ownership. Verily, its jurisdiction extends to matters incidental
or collateral to the settlement and distribution of the estate,
such as the determination of the status of each heir and
whether the property in the inventory is conjugal or exclusive
property of the deceased spouse. (Ignacio v. Reyes, G.R. No.
213192, July 12, 2017).
---
Imprescriptibility of probate
Prescription (statute of limitations) DOES NOT apply to
probate of wills.
INSTITUTION OF HEIRS
PRETERITION
Requisites of preterition
1. There is a total omission in the inheritance;
2. The person omitted is a compulsory heir in the direct line;
3. The omitted compulsory heir must survive the testator, or
in case the compulsory heir predeceased the testator,
there is a right of representation;
4. Nothing must have been received by the heir by
gratuitous title.
A spouse CANNOT be preterited. While a spouse is a
compulsory heir, he/she is not in the direct line.
Effects of preterition
1. Preterition annuls the institution of heirs;
2. Devises and legacies are valid insofar as they are not
inofficious;
3. If the omitted compulsory heir dies before the testator,
the institution shall be effectual, without prejudice to the
right of representation.
Preterition annuls the institution of an heir and annulment
throws open to intestate succession the entire inheritance. The
only provisions which do not result in intestacy are the
legacies and devises made in the will for they should stand
valid and respected, except insofar as the legitimes are
concerned (Acain v. IAC, G.R. No. 72706, October 27, 1987).
Omission of an illegitimate child in a will amounts to
preterition
It is immaterial whether the heir omitted in the testator’s will
is legitimate or illegitimate provided that he is a compulsory
heir in the direct line.
Omission of an adopted child in a will also amount to
preterition
An adopted child is by legal fiction considered a compulsory
heir in the direct line. An adopted person is given the same
 CIVIL LAW

rights and duties as if he is a legitimate child of the adopter
and makes the adopted person a legal heir of the adopter
(Acain v. IAC, G.R. No. 72706, October 27, 1987).
Effect of preterition on the will itself
3. There is a second heir who takes the property
subsequently from the fiduciary and must be one degree
from the first heir; and
4. The first and second heir must both be living and
qualified at the time of the death of the testator.

GR: The effect of annulling the institution of heirs will be, NOTE: It should be imposed on the free portion and not on the
necessarily, the opening of a total intestacy except that proper legitime. Fideicommissary substitution can never burden the
legacies and devises must be respected. Here, the will is not legitime (NCC, Art. 864).
abrogated.
LEGITIME
XPN: If the will contains a universal institution of heirs to the
entire inheritance of the testator, the will is totally abrogated. Legitime is that part of the testator's property which he cannot
dispose of because the law has reserved it for certain heirs
Reason:The nullification of such institution of the universal who are, therefore, called compulsory heirs. (NCC, Art. 886).
heirs without any other testamentary disposition in the will (2003 Bar)
amounts to a declaration that nothing at all was written.
Determination of the Legitime
PREDECEASE, INCAPACITY & REPUDIATION
To determine the legitime, the value of the property left at the
Effect if the heir predeceases the testator death of the testator shall be considered, deducting all debts
and charges, which shall not include those imposed in the will.
If the heir who predeceases the testator is a voluntary heir, a Donations given to children shall be charged to their legitime
devisee or a legatee, he shall transmit no right to his own heirs. (NCC, Art. 908).
This rule is absolute with respect to a voluntary heir, and a
devisee or legatee. TABLE OF
LEGITIMES
Effect if the heir repudiated or renounced his inheritance
WHEN SURVIVING ALONE
An heir who renounced his inheritance, whether as
½ of the hereditary estate (Free portion = ½)
compulsory or as voluntary heir, does not transmit any right to
Surviving spouse where the 1/3 of the hereditary
his own heirs.
marriage was solemnized under estate (Free portion
articulo mortis and the deceased =2/3)
NOTE: An heir who repudiated his inheritance, may represent
died within 3 months from the
the person whose inheritance he has renounced (NCC, Art.
time of marriage.
976). The reason for this is found under Art. 971 of the NCC:
“The representative does not succeed the person represented
NOTE: The deceased was the
but the one whom the person represented would have
spouse who was at the point of
succeeded.”
death at the time of marriage
(Tolentino, Civil Code, 1992 ed.)
RIGHT OF REPRESENTATION
Surviving spouse where the ½ of the hereditary
marriage was solemnized under estate (Free portion = ½)
The right of representation is allowed in compulsory
articulo mortis and the deceased
succession with respect to the legitime in case the
died within 3 months from the
compulsory heir in the descending line dies before the
time of marriage but the parties
testator or becomes incapacitated to succeed.
have been living as husband and
wife for more than 5 years prior
Heirs who repudiated their share MAY NOT be represented. A
to the marriage.
voluntary heir MAY NOT also be represented.

Rules in case of representation

1. It shall take place in cases of: PRIMARY HEIRS CONCUR WITH CONCURRING
a. Death;
COMPULSORY HEIRS
b. Incapacity; or
Legitimate child = ½ of the
c. Disinheritance.
hereditary estate
2. Representation applies only to those acquired by virtue of One legitimate child and the
Surviving spouse = ¼ of the
the law (legitime, intestate share, in case of reserva surviving spouse
hereditary estate
troncal).
Free portion =¼
3. Representation only occurs in the direct descending line
and never in the ascending. Legitimate children = ½ of the
4. In the direct collateral line, the right of representation hereditary estate in equal
only takes place in favor of children of brothers or sisters, Two or more legitimate portions
whether full or half-blood. children and the surviving Surviving spouse = a share
5. No representation in cases of repudiation. spouse equal to that of each child
Free portion =
SUBSTITUTION OF HEIRS whatever remains
Legitimate child = ½ of the
Elements of fideicommissary substitution hereditary
estate (if
1. There must be a first heir or fiduciary who takes the there are
One legitimate child and
property upon the testator’s death; several, they
illegitimate children
2. An absolute obligation is imposed upon the fiduciary to shall divide
preserve and to transmit to a second heir the property the ½ share
at a given time; in equal
portions)

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 UST LAW PRE-WEEK NOTES 2018

Illegitimate children = ½ of the Free portion = 1/8

share of
each
legitimate
child (if the Parents = excluded
free portion Children = ½ if
is legitimate
insufficient, and ½ of the
the share of each
illegitimate Parents of the Illegitimate
legitimate
children Decedent and children
child if
shall divide illegitimate
the free children
portion Free portion = whatever
equally remains
among Parents = ¼ of the
themselves) Parents of the Illegitimate hereditary estate
Free portion = whatever Decedent and the surviving Surviving spouse = ¼ of the
remains spouse hereditary estate
Legitimate child = ½ of the Free portion =½
hereditary estate
Surviving spouse = ¼ of the
hereditary estate
CONCURRENCE AMONG CONCURRING COMPULSORY
Illegitimate children = ½ of the HEIRS
share of each legitimate child Surviving spouse = 1/3 of
Free portion = the hereditary estate
Surviving spouse and
One legitimate child, the whatever remains Illegitimate children = 1/3 of
illegitimate children
surviving spouse, and the hereditary estate (Rabuya,
illegitimate children NOTE: The share of the 2017).
surviving spouse shall have
preference over those of the Table of Intestate Shares
illegitimate children whose
share may suffer reduction pro Legitimate children The whole estate divided equally
rata because there is no alone
preference as among Legitimate children The whole estate, each illegitimate
themselves. and Illegitimate child getting ½ share of one
Legitimate children = ½ of the children legitimate child
hereditary estate in equal Legitimate children The whole estate, divided equally
portions and surviving spouse (the surviving spouse counted as
Surviving spouse = a share one legitimate child)
equal to that of each legitimate Legitimate Children, The whole estate, the surviving
child surviving spouse and spouse being counted as one
Illegitimate children = ½ of illegitimate children legitimate child and each
the share of each legitimate illegitimate child getting ½ share of
child one legitimate child
Two or more legitimate
Free portion = Legitimate parents The whole estate, divided equally
children, surviving spouse,
whatever remains alone
and illegitimate children
Legitimate ascendants The whole estate, observing in
NOTE: The share of the (other than parents) proper cases, the rule of division by
surviving spouse shall have alone line
preference over those of the Legitimate parents and Legitimate parents = ½ of the estate
illegitimate children whose illegitimate children Illegitimate children = ½ of the
share may suffer reduction pro estate
rata because there is no Legitimate parents and Legitimate parents = ½ of the estate
preference as among surviving spouse Surviving spouse = ½ of the estate
themselves. Legitimate parents, Legitimate parents = ½ of the estate
surviving spouse and Surviving spouse = ¼ of the estate
SECONDARY HEIRS CONCUR WITH COMPULSORY illegitimate children Illegitimate children = ¼ of the
HEIRS estate
Legitimate parents = ½ of the Illegitimate children The whole estate, divided equally
Legitimate parents and hereditary estate alone
surviving spouse (1999 Surviving spouse = ¼ of the Illegitimate children Illegitimate children = ½ of the
BAR) hereditary estate and surviving spouse estate
Free portion =¼ Surviving spouse = ½ of the estate
Legitimate parents = ½ of the Surviving spouse The whole estate
hereditary estate alone
Legitimate parents and No article governing, but Art. 997
Illegitimate children = ¼ of the
illegitimate children may be applied by analogy, thus:
hereditary estate in equal shares Surviving spouse and
Free portion =¼ Surviving spouse = ½ of the estate
illegitimate parents
Legitimate parents = ½ of the Illegitimate parents = ½ of the
hereditary estate estate
Legitimate parents, Surviving spouse and Surviving spouse = ½ of the estate
Illegitimate children = ¼ of the
surviving spouse, and legitimate brothers Legitimate brothers, sisters,
hereditary estate in equal shares
illegitimate children and sisters, nephews nephews, nieces = ½ of the estate
Surviving spouse = 1/8 of
the hereditary estate and nieces (the nephews and nieces inheriting

55
 CIVIL LAW

by representation in proper cases) court may order creation of a

Surviving spouse = ½ of the estate permanent trust for the benefit of
Illegitimate brothers, sisters, the institutions concerned
nephews and nieces = ½ of the
estate (the nephews and nieces
inheriting by representation in
proper cases)
Surviving spouse and
illegitimate brothers NOTE: When the law speaks of
and sisters, nephews brothers and sisters, nephews and
and nieces nieces as legal heirs of an
illegitimate child, it refers to
illegitimate brothers and sisters as
well as to the children, whether
legitimate or illegitimate, of such
brothers and sisters (Manuel v.
Ferrer, 247 SCRA 476)
Illegitimate parents The whole estate
alone
Illegitimate parents = excluded
Children RULES ON LEGITIME
Illegitimate parents a. Child alone (legitimate or
and children of any illegitimate) = whole estate GR: The testator cannot deprive the compulsory heirs of their
kind b. Legitimate and illegitimate legitimes.
children = each illegitimate gets ½
share of one legitimate child XPNs:
Legitimate brothers The whole estate, with a 1. When the testator validly disinherited his heir (NCC, Art.
and sister alone brother/sister of the half-blood 915).
inheriting ½ the share of a 2. When the partition of the hereditary estate for a period
brother/sister of the full blood not exceeding twenty (20) years is expressly forbidden by
The whole estate, observing the 2:1 the testator (NCC, Art. 1083).
Legitimate brothers proportion of full and half blood
and sisters, nephews fraternity and the nephews and Rules governing succession in the direct descendingline
and nieces nieces inheriting by representation 1. Rule on preference between lines – The descending line is
in the proper cases preferred over the ascending line;
Uncles and Aunts = excluded 2. Rule on proximity – The nearer excludes the more remote;
Nephews and nieces = whole estate 3. Right of representation, in case of predecease, incapacity
Nephews and nieces and disinheritance;
per capita, but observing the 2:1
with Uncles and aunts 4. If all the legitimate children repudiate their legitimes, the
proportion for the full and half
blood next generation of legitimate descendants, succeed in
Illegitimate brothers The whole estate, observing the 2:1 their own right.
and sisters alone proportion of full and half blood
fraternity Rules governing succession in the ascending line
No article governing, but Arts. 1005 1. Rule of proximity – The nearer excludes the more remote;
Illegitimate brothers, 2. Division by line; and
and 1008 may be applied by
sisters, nephews and 3. Equal division within the line.
analogy, hence, they acquire the
nieces
whole estate
COMPULSORY HEIRS
The whole estate per capita, but
Nephews and nieces
observing the 2:1 proportion for the
alone The following are compulsory heirs (2003, 2005, 2006,
full and half blood
2008 Bar)
The whole estate, per capita, the
1. Legitimate children and descendants, with respect to their
Other collaterals nearer in deGRee excluding the
legitimate parents and ascendants;
more remote
2. In default of the foregoing, legitimate parents and
State The whole estate
ascendants, with respect to their legitimate children and
descendants;
Assignment and disposition
3. The widow or widower;
4. Acknowledged natural children, and natural children by
1. If decedent was a resident of the
legal fiction; and
Philippines at any time:
5. Other illegitimate children referred to in Art. 287.
a. Personal property – to
municipality of last residence
RESERVA TRONCAL
b. Real property – where situated
2. If decedent was never a resident
Requisites that must exist in order that a propertymay be
of the Philippines
impressed with a reservable character
Personal and real property – where
1. That the property was acquired by a descendant (called
respectively situated
“praepositus” or propositus) from an ascendant or from a
brother or sister by gratuitous title;
How property is to be used:
2. That said praepositus died without issue;
3. That the same property (called “reserva”) is inherited by
1. For the benefit of public
another ascendant (called “reservista”) by operation of
educational and charitable
law (either through intestate or compulsory succession)
institutions in the respective
from the praepositus; and
municipalities/cities
4. That there are living relatives within the third degree
2. Alternatively, at the instance of an
counted from the praepositus and belonging to the same
interested party, or motu propio,

56
 UST LAW PRE-WEEK NOTES 2018
line from where the property originally came (called
“reservatarios”) (NCC, Art. 891; Chua v. CFI of Negros
Occidental, G.R. No. L-29901, August 31, 1977; Rabuya,
2009).
Three lines of transmission in reserva troncal
1. From the origin of the property (who must be an
ascendant/brother/sister of propositus) to propositus,
and the transmission must be thru gratuitous title;
2. From the propositus (who died without issue) to the
reservista (who must be an ascendant of the propositus)
and the transmission is thru inheritance by operation of
law; and
3. From reservista to the reservatario, who must be a third
degree relative by consanguinity of the propositus.
(Mendoza v. Delos Santos, G.R. No 176422, March 20, 2013)
DISINHERITANCE
Requisites of a valid disinheritance (VILECATT)
1. Made in a valid will;
2. Identity of the heir is clearly established;
3. For a legal cause;
4. Expressly made;
5. Cause stated in the will;
6. Absolute or unconditional;
7. Total; and
8. Cause must be true and if challenged by the heir, it must
be proved to be true.
Right of representation in case of disinheritance
The causes of disinheritance are personal to the disinherited
heir. Hence, in case of valid disinheritance, only the
disinherited heir is deprived of his right to the legitime. But the
children or descendants of the disinherited heir can take his
place and preserve the disinherited heir’s share to the legitime.
LEGAL OR INTESTATE SUCCESSION
Rules on exclusion and concurrence in intestate
succession
1. Legitimate children
a. Exclude parents, collaterals and State;
b. Concur with surviving spouse and illegitimate
children; and
c. Excluded by no one.
2. Illegitimate children
a. Exclude illegitimate parents, collaterals and State;
b. Concur with surviving spouse, legitimate children,
and legitimate parents; and
c. Excluded by no one.
3. Legitimate parents
a. Exclude collaterals and the State;
b. Concur with illegitimate children and surviving
spouse; and
c. Excluded by legitimate children.
4. Illegitimate parents
a. Exclude collaterals and State;
b. Concur with surviving spouse; and
c. Excluded by legitimate children and illegitimate
children.
5. Surviving spouse
a. Excludes collaterals other than brothers, sister,
nephews and nieces, and State;
b. Concurs with legitimate children, illegitimate
children, legitimate parents, illegitimate parents,
brothers, sisters, nephews and nieces;
c. Excluded by no one.
6. Brothers and sisters, nephews and nieces
a. Exclude all other collaterals and the State;
b. Concur with surviving spouse; and
c. Excluded by legitimate children, illegitimate children,
legitimate parents and illegitimate parents.
7. Other collaterals
a. Exclude collaterals in remoter degrees and the State;
b. Concur with collaterals in the same degree; and
57
c. Excluded by legitimate children, illegitimate children,
legitimate parents, illegitimate parents, surviving
spouse, brothers and sisters, and nephews and
nieces.
8. State
a. Excludes no one;
b. Concurs with no one; and
c. Excluded by everyone. (Balane, 2010)
RIGHT OF REPRESENTATION
Right of representation arises by reason of:
1. Predecease;
2. Incapacity;
3. Disinheritance.
When right of representation is NOT AVAILABLE:
1. As to compulsory heirs: In case of repudiation, the one who
repudiates his inheritance cannot be represented. Their
own heirs inherit in their own right; and
2. As to voluntary heirs: Voluntary heirs, legatees and
devisees who either:
a. Predecease the testator; or
b. Renounce the inheritance cannot be represented by
their own heirs, with respect to their supposed
inheritance.
In representation, the representative does NOT inherit from
the person represented but from the decedent.
The right of representation takes place in the direct
descending line, but never in the ascending.
In the collateral line, it takes place only in favor of the
children of brothers or sisters, whether they are full or half
blood (NCC, Art. 972).
NOTE: This rule applies only when the decedent does not have
descendants. Also, an illegitimate child can represent his
father, provided that the father was also illegitimate.
An illegitimate sibling of the decedent can be represented. An
illegitimate brother or sister of the deceased can be
represented by his children, without prejudice to the
application of the Iron Curtain Rule (Tolentino, Civil Code, 1992
ed., p. 451)
The right of representation does NOT apply to adopted
children. The right of representation cannot be invoked by
adopted children because they cannot represent their adopting
parents to the inheritance of the latter’s parents.
IRON CURTAIN RULE
An illegitimate child has no right to inherit ab intestato from
the legitimate children and relatives of his father or mother;
nor shall such children or relatives inherit in the same manner
from the illegitimate child (NCC, Art. 992).
RATIO: Article 992 provides a barrier or iron curtain in that it
absolutely prohibits intestate succession between the
illegitimate child and the legitimate children and relatives of
the father or mother of said illegitimate child. They may have a
natural tie of blood, but this is not recognized by law for the
purpose of Article 992. Between the legitimate family and the
illegitimate family there is presumed to be an intervening
antagonism and incompatibility—the law recognizes this
truth, by avoiding further ground of resentment (Diaz v. IAC,
G.R. No. L-66574, February 21, 1990; Paguirigan, 2017).
NOTE: The iron curtain rule only applies in intestate
succession.
 CIVIL LAW

PROVISIONS COMMON TO TESTATE AND INTESTATE PARTITION AND DISTRIBUTION OF ESTATE

SUCCESSION
The partition may be effected either
RIGHT OF ACCRETION 1. By the decedent himself during his lifetime by an act;
2. Inter vivos or by will;
Accretion – acreetion is a right by virtue of which, when two 3. By a third person designated by the decedent or by the
or more persons are called to the same inheritance, devise, or heirs themselves; or
legacy, the part assignend to the one who renounces or cannot 4. By a competent court in accordance with the Rules of
receive his share, or who died before the testator, is added or Court.
incorporated to that of his co-heirs, co-devisees, or co-legatees
(Art. 1015, NCC). Partition may be demanded by:
1. Compulsory heir;
In testamentary succession, accretion takes place incase 2. Voluntary heir;
of: 3. Legatee or devisee; or
1. Predecease; 4. Person who has acquired an interest in the estate.
2. Incapacity;
3. Renunciation; Partition cannot be demanded when (PAPU)
4. Non-fulfillment of the suspensive condition imposed upon 1. Expressly Prohibited by testator for a period not more
instituted heir; and than 20 years;
5. Ineffective testamentary disposition 2. Co-heirs Agreed that estate not be divided for period not
more than 10 years, renewable for another 10 years;
In intestate succession, accretion takes place in caseof: 3. Prohibited by law; and
1. Predecease of legal heir; 4. To partition estate would render it Unserviceable for use
2. Incapacity of legal heir; and for which it was intended.
3. Repudiation by legal heir.
An estate can be partitioned inter vivos. Such partition shall be
NOTE: Accretion takes place only if there is no representation. respected, insofar as it does not prejudice the legitimes (Art.
In renunciation, there is always accretion. 1080).

Reason: No representation in renunciation.

PART – XII – LAND TITLES AND DEEDS
PERSONS INCAPABLE OF SUCCEEDING
TORRENS SYSTEM
Persons who are absolutely incapacitated to succeed:
Q: Eljay donated a parcel of land embodied in a Deed of
1. Those not living at the time of death of the testator;
Donation to Kristoffer which is yet to be registered.
2. Those who cannot be identified (NCC, Art. 845);
Kristoffer took possession of the land in the concept of an
3. Those who are not permitted by law to inherit. (NCC, Art.
owner. Two years thereafter, Eljay caused the registration
1027).
of the land and obtained a homestead patent. Upon Eljay’s
death, his heirs partitioned the lands and now claim that
Determination of the capacity to succeed
the donated land to Kristoffer also belongs to them.
The governing law in determining the capacity to succeed of
Interestingly, the land at the time it was donated was still
the heir, devisee, legatee is the law of the nation of the
part of the inalienable public domain and the State only
decedent. (1998, 2004 Bar)
ceded its rights over the land to Eljay two years from said
donation. Was the donation valid?
Grounds for relative incapacity to succeed (UMA)
1. Undue influence or interest (NCC, Art. 1027);
A: NO. The donation is void. At the time the Deed of Donation
2. Morality or public policy (NCC, Art. 739);
was executed by Eljay the subject property was part of the
3. Acts of unworthiness (NCC, Art. 1032).
inalienable public domain. It was only almost after two years
later that the State ceded its right over the land in favor of
The following are incapacitated to succeed based on
Eljay by GRanting their patent application and issuing an
morality or public policy (ACO)
original certificate of title in their favor. Prior to such
1. Persons guilty of Adultery or concubinage with the
conferment of title, Eljay possessed no right to dispose of the
testator at the time of the making of the will;
land which, by all intents and purposes, belongs to the State.
2. Persons guilty of the same Criminal offense, in
consideration thereof; and
The classification of public lands is an exclusive prerogative of
3. A public officer or his wife, descendants and ascendants,
the executive department of the government and not the
by reason of his Office (Art. 1028 in relation to Art. 739 of
Courts. In the absence of such classification, the land remains
NCC). (2000 Bar)
as an unclassified land until it is released therefrom and
rendered open to disposition. Hence, the donation of the
ACCEPTANCE AND REPUDIATION OF THE INHERITANCE
subject property is null and void from the very start (Heirs of
Gozo v. PUMCO, G.R. No. 195990, August 05, 2015).
Remedy if the heir repudiates the inheritance to the
prejudice of his creditors
Q: Explain the nature of “Indefeasibility and
If the heir repudiates the inheritance to the prejudice of his
incontrovertibility of certificates of title”
own creditors, the latter may petition the court to authorize
them to accept it in the name of the heir.
A:The certificate, once issued, becomes a conclusive evidence
of the title/ownership of the land referred to therein. What
Requisites:
appears on the face of the title is controlling on questions of
1. The heir who repudiated his inheritance must have been
ownership of the property in favor of the person whose name
indebted at the time when the repudiation is made;
appears therein and such cannot be defeated by adverse, open,
2. The heir-debtor must have repudiated his inheritance
and notorious possession; neither can it be defeated by
according to the formalities prescribed by law;
prescription.
3. Such act of repudiation must be prejudicial to the creditor
or creditors; and
One who deals with property registered under the Torrens
4. There must be judicial authorization (NCC, Art. 1052).
system need not go beyond the certificate of title, but only has

58
 UST LAW PRE-WEEK NOTES 2018
to rely in the certificate of title (Mae Flor Galido v. Nelson
MaGRare, G.R. No. 208654, January 11, 2016).
Rules as regards the indefeasibility and incontrovertibility
of Torrens Title
1. The certificate of title serves as evidence of an
indefeasible title to the property in favor of the person
whose name appears therein.
2. After the expiration of the one (1) year period from the
issuance of the decree of registration upon which it is
based, it becomes incontrovertible.
3. Decree of registration and the certificate of title issued
pursuant thereto may be attacked on the ground of actual
fraud within one (1) year from the date of its entry and
such an attack must be direct and not by a collateral
proceeding.The validity of the certificate of title in this
regard can be threshed out only in an action expressly
filed for the purpose.
---
Q: Spouses Vilbar and Elena entered into separate
Contracts to Sell with Dulos Realty concerning Lot 20-B,
Lot 20-A and Lot 21. A Deed of Absolute Sale was executed
in favor of the spouses. However, they failed to register
and transfer the title in their names. In contrast, Opinion
claimed that he legally acquired Lots 20 and 21 through
extra-judicial foreclosure of mortgage constituted over
the said properties. Thus, titles in the name of Opinion
were issued by the Registry of Deeds. Who between them
has a better right to Lots 20 and 21?
A: Opinion has better right. The spouses Vilbar did not cause
the transfer of the certificate title in their name, or at the very
least, annotate or register such sale in the original title in the
name of Dulos Realty. A certificate of title serves as evidence of
an indefeasible and incontrovertible title to the property in
favor of the person whose name appears therein. Having no
certificate of title issued in their names, spouses Vilbar have no
indefeasible and incontrovertible title over Lot 20 to support
their claim.
Registration is the operative act which gives validity to the
transfer or creates a lien upon the land. Any buyer or
mortgagee of realty covered by a Torrens certificate of title x x
x is charged with notice only of such burdens and claims as are
annotated on the title (Spouses Vilbar v. Opinion, G.R. No.
176043, January 15, 2014) (DEL CASTILLO, J.).
---
Q: Does the defense of indefeasibility of a Torrens title
extend to a transferee who took it with notice of a flaw in
the title of his transferor?
A: NO. To be effective, the inscription in the registry must have
been made in good faith. A holder in bad faith of a certificate of
title is not entitled to the protection of the law, for the law
cannot be used as a shield for fraud (Adoracion Rosales Rufloe,
et al., v. Leonarda Burgos et al., G.R. No. 143573, January 30,
2009).
---
Q: Federico is the owner and possessor of a parcel of land
with an area of 938 sq. m. Subsequently, Jose sold a
portion of the same land. A transfer certificate of title was
issued in the name of the buyer covering 2,292 sq. m. On
the same date, a title was also issued in the name of Jose
covering 447 sq. m. When Federico wanted to construct a
perimeter fence on his property, he was prevented by
Jose, claiming that the 447 square meters was his property
as reflected in his title. On the other hand, Federico is
claiming it as part of the property he inherited from his
father, Andres. Is Jose the owner of the disputed 447
square meter property?
A: NO. The person from whom Jose bought his land knows that
the property at the eastern part thereof belonged to Andres
from whom Federico inherited the said lot. Settled is the rule
59
that a person, whose certificate of title included by mistake or
oversight the land owned by another, does not become the
owner of such land by virtue of the certificate alone. The
Torrens System is intended to guarantee the integrity and
conclusiveness of the certificate of registration but is not
intended to perpetrate fraud against the real owner of the
land. The certificate of title cannot be used to protect a usurper
from the true owner (Spouses Valenzuela v. Spouses. Mano, Jr.,
G.R. No. 172611, July 9, 2010) (DEL CASTILLO, J.).
---
Mirror Doctrine
All persons dealing with a property covered by Torrens
certificate of title are not required to go beyond what appears
on the face of the title. Where there is nothing on the certificate
of title to indicate any cloud or vice in the ownership of the
property, or any encumbrance thereon, the purchaser is not
required to explore further than what the Torrens title upon
its face indicates in quest for any hidden defect or inchoate
right that may defeat his right thereto (Chua v. Soriano, GR.No.
150066, April 13, 2007).
Application of mirror doctrine
GR: Mirror Doctrine applies when title over a land is
registered under the Torrens system.
XPN: Mirror Doctrine cannot be invoked where:
1. The purchaser or mortgagee is a bank/financing
institution;
2. The owner still holds a valid and existing certificate of
title covering the same property, because the law protects
the lawful holder of a registered title over the transfer of a
vendor bereft of any transmissible right;
3. The purchaser is in bad faith;
4. The purchaser purchases land with a certificate of title
containing a notice of lis pendens;
5. There are sufficiently strong indications to impel closer
inquiry into the location, boundaries and condition of the
lot;
6. The purchaser had full knowledge of flaws and defects in
the title; or
7. A person buys land not from the registered owner but
from whose rights to the land has been merely annotated
on the certificate of title.
REGALIAN DOCTRINE
Explain the concept of “Regalian Doctrine”
All lands of whatever classification and other natural resources
not otherwise appearing to be clearly within private
ownership are presumed to belong to the State which is the
source of any asserted right to ownership of land (Republic v.
Sin, G.R. No. 157485, March 26, 2014).
Under the Regalian doctrine, land that has not been acquired
from the government, either by purchase, grant, or any other
mode recognized by law, belongs to the State as part of the
public domain. Thus, it is indispensable for a person claiming
title to a public land to show that his title was acquired
through such means.
A CENRO or PENRO Certification is not enough to certify that a
land is alienable and disposable (Republic v. San Mateo, et al.,
G.R. No. 203560, November 10, 2014). To prove that the subject
property is alienable and disposable land of the public domain,
applicant must:
(1) Present a Community Environment and Natural
Resources Office Certificate (CENRO);
(2) Prove that the DENR Secretary had approved the
land classification and released the land of the public
domain as alienable and disposable; and
 CIVIL LAW
(3) That the land subject of the application for
registration falls within the approved area per
verification through survey by the PENRO or CENRO.
In addition, the applicant for land registration must
present a copy of the original classification approved
by the DENR Secretary and certified as a true copy by
the legal custodian of the official records.
To prove that a land is alienable, the existence of a positive act
of the government, such as presidential proclamation or an
executive order; an administrative action; investigation
reports of Bureau of Lands investigators; and a legislative act
or a statute declaring the land as alienable and disposable
must be established (Republic v. Cortez, G.R. No. 197472,
September 7, 2015) (DEL CASTILLO, J).
CITIZENSHIP REQUIREMENT
Q: Who are qualified to acquire private lands?
A:
1. Filipino citizens;
2. Filipino corporations and associations as defined in Sec. 2,
Article XII of the Constitution and by exception;
3. Aliens, but only by hereditary succession; and
4. A natural-born citizen of the Philippines who has lost
citizenship may be a transferee of private lands subject to
limitations provided by law.
NOTE: Filipino citizens can both acquire or otherwise hold
lands of public domain.
Maximum area that may be acquired by a natural born
citizen who has lost his Philippine citizenship :
a. For residence purposes: 1,000 sq. m. in the case of
urban lands or one hectare in the case of rural lands.
In the case of married couples, one of them may avail
of the privilege herein granted, but if both shall avail
of the same, the total area acquired shall not exceed
the maximum area fixed (B.P. Blg. 185, Sec 2).
b. For business (investment) or other purposes: 5,000
sq. m. if urban land, or three hectares if rural land
(R.A. No. 7042 as amended by R.A. 8179, Sec. 10).
NOTE : The limitation does not apply to a natural-born Filipino
who has lost his citizenship but who re-acquired the same
under the terms of R.A. 9225.
Q: May an alien acquire private lands?
A: GR: An alien cannot acquire private lands.
XPN: Acquisition by aliens is allowed when it is thru
hereditary succession.
NOTE : The constitutional ban against foreigners apply only to
ownership of Philippine land and not to the improvements
built thereon (Beumer v. Amores, G.R. No. 195670, December 3,
2012).
Further, under R.A. No. 4726, foreign nationals can own
Philippine real estate through the purchase of condominium
units or townhouses. It expressly allows foreigners to acquire
condominium units and shares in condominium corporations
up to not more than 40% of the total and outstanding capital
stock of a Filipino owned or controlled corporation. The land is
owned by the condominium corporation and the unit owner is
simply a member in this condominium corporation.
---
Acquisition of lands by a corporation
Private Lands
1. At least 60% Filipino (1987 Constitution, Art. XII, Sec. 7);
2. Restricted as to extent reasonably necessary to enable it
to carry out purpose for which it was created; and
60
3. If engaged in agriculture, it is restricted to 1,024 hectares.
Patrimonial property of the State (1987 Constitution, Art. XII,
Sec. 3)
1. Lease (cannot own land of the public domain) for 25 years
renewable for another 25 years;
2. Limited to 1,000 hectares; and
3. Applies to both Filipinos and foreign corporations.
ORIGINAL REGISTRATION
Original registration
A proceeding brought before the MTC where there is no
controversy or opposition, or contested lots where the value of
which does not exceed P100,000.00 (Sec. 4, R.A. 7691) or in the
RTC (as a land registration court) when the value exceeds
P100,000 to determine title or ownership of land on the basis
of an application for registration or answer/opposition by a
claimant in a cadastral registration.
---
Q: Who are qualified for registration in ordinary
registration proceedings?
1. Those who by themselves or through their predecessors-
in-interest have been in open, continuous, exclusive, and
notorious possession and occupation of alienable and
disposable lands of public domain under a bona fide claim
of ownership since June 12, 1945 or earlier (OCENCO);
---
Q: In order that an alienable and disposable land of the
public domain may be registered under Section 14(1) of
P.D. 1529, should the land be classified as alienable and
disposable as of June 12, 1945 or is it sufficient that such
classification occur at any time prior to the filing of the
applicant for registration provided that it is established
that the applicant has been in open, continuous, exclusive
and notorious possession of the land under a bona fide
claim of ownership since June 12, 1945 or earlier?
A: In the landmark case of Malabanan v. Republic, the Court en
banc reiterated that the law does not require that the land
subject of registration should have been alienable and
disposable DURING the entire period of possession, or since
June 12, 1945. It is sufficient that the land is already declared
as alienable and disposable land AT THE TIME the application
for registration is filed so as to entitle the possessor to
registration (Malabanan v. Republic, G.R. No. 179987, April 29,
2009).
2. Those who have acquired ownership of private lands by
prescription under provisions of existing laws;
---
GR: Properties of public dominion cannot be acquired by
prescription.
There must be an express declaration by the State that the
public dominion property is no longer intended for public
service or the development of the national wealth or that the
property has been converted into patrimonial. Without such
express declaration, the property, even if classified as alienable
or disposable, remains property of the public dominion, and
thus incapable of acquisition by prescription (Republic of the
Philippines v. Andrea Tan, G.R. No. 199537, February 10, 2016).
It is only when such alienable and disposable lands are
expressly declared by the State to be no longer intended for
public service or for the development of the national wealth
that the period of acquisitive prescription can begin to run.
Such declaration shall be in the form of a law duly enacted by
ConGRess or a Presidential Proclamation in cases where the
President is duly authorized by law.
 UST LAW PRE-WEEK NOTES 2018

Requisites for the filing of an application under Sec. 14(1)

XPN: Where the law itself so provides. Thus, patrimonial
property of the state may be the subject of acquisition through
prescription.
Under ordinary acquisitive prescription, a person acquires
ownership of a patrimonial property through possession for at
least 10 years, in good faith and with just title. Under
extraordinary acquisitive prescription, a person’s
uninterrupted adverse possession of patrimonial property for
at least 30 years, regardless of good faith or just title, ripens
into ownership.
---
NOTE: For one to invoke the provisions of Section 14(2) and
set up acquisitive prescription against the state, it is
primordial that the status of the property as patrimonial be
first established. Furthermore, the period of possession
preceding the classification of the property as patrimonial
cannot be considered in determining the completion of the
prescriptive period.
Adverse, continuous, open, public possession in the concept of
an owner is a conclusion of law and the burden to prove it by
clear, positive and convincing evidence is on the applicant. A
claim of ownership will not proper on the basis of tax
declarations if unaccompanied by proof of actual possession.
of PD. No. 1529
1. That the property is an aGRicultural land of public
domain;
2. That it has been classified by a positive act of government
as alienable and disposable (A and D);
3. That the applicant, by himself or through his
predecessors-in-interest has been in open, continuous,
exclusive and notorious possession and occupation of the
land in the concept of owner (OCENCO); and
4. That such possession and occupation is under a bona fide
claim of ownership since June 12, 1945 or earlier.
---
Q: What are the instances when Register of Deeds may
deny registration?
A:
1. Where there are more than one copy of the owner’s
duplicate certificate of title and not all such copies are
presented in the Register of Deeds
2. Where the voluntary instrument bears on its face
infirmity
3. Where the validity of the instrument sought to be
registered is in issue in a pending suit in court
4. When the document is not verified and notarized.
---

The counting of the thirty (30)-year prescriptive period for Q: Discuss the rule where two or more certificates cover
purposes of acquiring ownership of a public land under section the same land.
14(2) can only start from the issuance of DARCO conversion
order. Before the property was declared patrimonial by virtue A:The general rule is that where two certificates of title are
of such conversion order, it cannot be acquired by prescription issued to different persons covering the same land in whole or
(Jean Tan, et al. v. Republic of the Philippines; G.R. No. 193443, in part, the earlier in date must prevail as between the original
April 16, 2012). parties, and in case of successive registration where more than
one certificate is issued over the land, the person holding
--- under the prior certificate is entitled to the land as against the
Q: Against whom acquisition of ownership by prescription person who relies on the second certificate (Director of Lands
cannot be used? v. CA, G.R. No. L-45168, January 27, 1981).
---
A:Prescription and laches cannot apply to registered land
covered by the Torrens system because under the Property Q: Who is an innocent purchaser for value?
Registration Decree, no title to registered land in derogation to
that of the registered owner shall be acquired by prescription A:An innocent purchaser for value is one who buys the
or adverse possession (Pen Development Corporation v. property of another without notice that some other person has
Martinez Leyba Inc., G.R. No. 211845, August 9, 2017) (DEL a right to or interest in it, and who pays a full and fair price at
CASTILLO, J.). the time of the purchase or before receiving any notice of
another person’s claim (Locsin v. Hizon, et al., G.R. No. 204369,
3. Those who have acquired ownership of private lands or September 17, 2014).
abandoned river beds by right of accession or accretion ---
under the existing laws.
4. Those who have acquired ownership of land by any other Q: What is the remedy if the property has already passed
manner provided for by law. into the hands of an innocent purchaser for value?
---
A:The remedy is to file action for damages from the person
Sec. 14(1) v. Sec. 14(2) of P.D. 1529 who allegedly registered the property from fraud, or if he had
become insolvent or if the action is barred by prescription, to
SEC. 14(1) SEC. 14(2) file an action for recovery against the Assurance fund within a
period of 6 years from the time the right to bring such action
Registration of title on the Registration of property on accrues.
basis of possession. the basis of prescription. ---
Deals with possession and Involves prescription as a
occupation in the concept mode of acquiring Q: A parcel of land originally owned by Renato was
of an owner. ownership. mortgaged and foreclosed by China Bank. As a result, TCT
Extended under the aegis was issued in favor of China Bank. China Bank later on
Available both by P.D. 1529 sold the said land in favor of CDC Corporation and another
of the P.D. 1529 and the
and the Civil Code. TCT was issued in favor of the latter. CDC Corporation now
Public Land Act (PLA).
brought an action for unlawful detainer in the MeTC
Under Sec. 48(b) of the The 30-year period against the Renato and the other occupants of the
PLA, as amended by R.A. involves extraordinary property. The Renato counters that CDC acquired the
1472, the 30-year period is prescription under the property from China Bank in bad faith as it had an actual
in relation to possession Civil Code, particularly Art. knowledge of the possession of the property by him and
without regard to the Civil 1113 in relation to Art. his siblings and that CDC ignored the failure of China Bank
Code. 1137. to warrant its title. Is Renato correct?

61
 CIVIL LAW
A: NO. One who deals with property registered under the
Torrens system need not go beyond the certificate of title, but
only has to rely on the certificate of title. He is charged with
notice only of such burdens and claims as are annotated on the
title. Considering that China Banks TCT was a clean title, that
is, it was free from any lien or encumbrance, CDC had the right
to rely, when it purchased the property, solely upon the face of
the certificate of title in the name of China Bank. The CAs
ascribing of bad faith to CDC based on its knowledge of the
adverse possession of the respondent’s siblings at the time it
acquired the property from China Bank was absolutely
unfounded and unwarranted. That possession did not
translate to an adverse claim of ownership that should have
put CDC on actual notice of a defect or flaw in the China Banks
title. (Casimiro DevelopmentCorporation v. Mateo, G.R. no.
175485, 27July 2011)
---
PATENTS UNDER THE PUBLIC LAND ACT
Q: Domingo filed an action for recovery of possession
claiming that he is the registered owner of the parcels of
land covered by separate TCT’s. Domingo argued that the
parcels of land were held by Dela Cruz merely by
tolerance. On the other hand, Dela Cruz asserted that he is
the owner of the parcels of land covered by Domingo's
TCT’s, and that these lands are covered by his Certificate
of Land Transfer. Thus, Domingo's titles should be
cancelled and annulled. Does the Certificate of Land
Transfer held by Dela Cruz vest him ownership over the
said parcels of land?
A: NO. A certificate of land transfer merely evinces that the
grantee thereof is qualified to 'avail of the statutory
mechanisms for the acquisition of ownership of the land tilled
by him as provided under P.D. No. 27.' It is not a muniment of
title that vests upon the farmer/grantee absolute ownership of
his tillage. On the other hand, an emancipation patent, while it
presupposes that the grantee thereof shall have already
complied with all the requirements prescribed under P.D. No.
27, serves as a basis for the issuance of a transfer certificate of
title. It is the issuance of this emancipation patent that
conclusively entitles the farmer/grantee of the rights of
absolute ownership (Dela Cruz v. Domingo, G.R. No. 210592,
November 22, 2017) (DEL CASTILLO, J.).
PUBLIC LAND ACT (C.A. 141)
Persons qualified for registration under Public Land Act
or C.A. No. 141
Those who by themselves or through their predecessors-in-
interest have been in open, continuous, exclusive and
notorious possession and occupation of alienable and
disposable agricultural lands of the public domain, under a
bona fide claim of acquisition or ownership, since June 12,
1945, except when prevented by war or force majeure.
Requisites:
1. The applicant must be a Filipino citizen;
2. He must have, by himself or through his predecessors in-
interest, possessed and occupied an alienable and
disposable agricultural portion of the public domain;
3. Such possession and occupation must have been open,
continuous, exclusive, notorious and in the concept of
owner, since June, 12, 1945; and
4. The application must be filed with the proper court.
---
Q: What should the applicant prove in an application for
registration of imperfect title?
(1) the land is alienable and disposable through the
presentation of a CENRO/PENRO certification and a certified
62
true copy of the original classification made by the DENR
Secretary;
(2) the applicant or predecessors-in-interest have been in
open, continuous, exclusive and notorious possession and
occupation;
(3) that the possession has been under a bona fide claim of
ownership since June 12, 1945 or earlier. Such possession
must be actual, not fictional or constructive (Tomas Leonidas v.
Tancredeo Vargas, G.R. No. 201031, December 14, 2017) (DEL
CASTILLO, J.).
---
Effect of possession of an Imperfect title
When the conditions set by law are complied with, the
possessor of the land, by operation of law, acquires a right to
government grant, without the necessity of a certificate of the
title being issued.
Persons qualified for judicial confirmation
1. Filipino citizens who by themselves or through their
predecessors-in-interest have been in open, continuous,
exclusive and notorious possession and occupation of
alienable and disposable lands of public domain under a
bona fide claim of acquisition since June 12, 1945 or prior
thereto or since time immemorial ;
2. Filipino citizens who by themselves or their predecessors-
in-interest have been, prior to the effectivity of P.D. 1073
on January 25, 1977, in open, continuous, exclusive and
notorious possession and occupation of agricultural lands
of the public domain under a bona fide claim of
acquisition or ownership for at least 30 years, or at least
since January 24, 1947;
3. Private domestic corporations or associations which had
acquired lands from Filipino citizens who had possessed
the same in the manner and for the length of time
indicated in paragraphs 1 & 2 above; or
4. Natural-born citizens of the Philippines who have lost
their citizenship and who has the legal capacity to enter
into a contract under Philippine laws may be a transferee
of private land up to a maximum area of 5,000 sq.m., in
case of urban land, or three hectares in case of rural land
to be used by him for business or other purposes. For
residence purposes, the maximum area is 1,000 sq. m. in
case of urban lands or one hectare in case of rural lands.
EVIDENCE REQUIRED IN LAND REGISTRATION
Q: Angeline, Agustina and Lawana filed an Application for
Registration of their lands. To prove the alienable and
disposable character of the said lands, they presented a
tracing cloth which contained a certification from DENR
representatives that the said lands are alienable and
disposable under Proclamation No. 209. The OSG opposed
stating that the applicants failed to satisfy the legal
requirements relative to proof of alienability. Is the OSG
correct?
A. YES. Mere notations on the tracing cloth are inadequate
proof of the alienable and disposable status of the lands. They
refer only to the technical correctness of the surveys and only
establish that the land subject of the application falls within
the approved alienable and disposable area per verification
through survey by the proper government office. Sec. 14(A) of
P.D. 1529 requires that the property sought to be registered
must be alienable and disposable at the time the application
for registration is filed. One way of establishing this fact is
through the DENR certificate of land classification status which
is presumed to be the most recent appraisal of the status and
character of the property (Republic of the Philippines v.
Dayaoen et. al., G.R. No. 200773, July 08, 2015) (DEL CASTILLO,
J.).
---
 UST LAW PRE-WEEK NOTES 2018
Conflict between areas and boundaries
What defines a piece of land is not the area, calculated with
more or less certainty mentioned in the description, but the
boundaries therein laid down, as enclosing the land and
indicating its limits (Balantakbo v. CA, G.R. No. 108515, October
16, 1995).
GR: Boundaries prevail over area.
XPNs:
1. Boundaries relied upon do not identify land beyond
doubt;
2. Boundaries given in the registration plan do not
coincide with outer boundaries of the land covered
and described in the muniments of title.
DECREE OF CONFIRMATION AND REGISTRATION
Effect of a decree of registration
The decree of registration binds the land, quiets title, subject
only to such exceptions or liens as may be provided by law.
It is conclusive upon all persons including the national
government and all branches thereof. Such conclusiveness
does not cease to exist when the title is transferred to a
successor.
Land becomes registered land only upon the transcription of the
decree in the book of the Register of Deeds, and not on the date
of the issuance of the decree (Manotok v. CLT Realty, G.R. No.
123346, March 31, 2009).
NOTE: Title once registered cannot be impugned, altered,
changed, modified, enlarged or diminished, except in a direct
proceeding permitted by law.
Doctrine of non-collateral attack of a decree or title
A decree of registration and registered title cannot be
impugned, enlarged, altered, modified, or diminished either in
collateral or direct proceeding, after the lapse of one year from
the date of its entry.
XPN: To spurious or non-existent titles. Indefeasibility of a title
does not attach to titles secured by fraud and
misrepresentation.
EFFECT: It was as if no title was ever issued in this case to the
petitioner and therefore this is hardly the occasion to talk of
collateral attack against a title (Heirs of Leoncio C. Oliveros,
represented by Aurora B. Oliveros, et al. vs San Miguel
Corporation, et al., G.R. No. 173531, February 1, 2012).
---
Q: Ramitex Inc. bought a parcel of land in Metro Manila.
Subsequently, Oliveros filed a petition for reconstitution
of his alleged title over the same. He presented a machine
copy of his alleged title showing the Serial No. 124604. He
then filed a petition for the nullification of Ramitex’s title
over the same property. Ramitex then showed evidence of
an irregularity in Oliveros’ TCT since it appears from the
records of the LRA that the blank title forms bearing the
serial number similar to Oliveros’ TCT was issued to
Davao’s Register of Deeds and not in Bulacan as stated in
Oliveros’ TCT. RTC then ruled for Ramitex and declared
Oliveros’ title as spurious; CA affirmed. Oliveros then
assails CA’s decision stating it effectively allowed a
collateral attack on his title since the petition is instituted
as an attack against Ramitex’s title. Is Oliveros correct?
A. NO. The prohibition against collateral attack does not apply
to spurious or non-existent titles, since such titles do not enjoy
indefeasibility. In this case, the trial and appellate courts'
found sufficient evidence to show that Oliveros’ TCT is
spurious. Without a title, Oliveros cannot assert priority or
63
presumptive conclusiveness. Moreover, the attack on Oliveros'
title was not a collateral attack since its invalidity was validly
raised in counterclaim. A counterclaim is essentially a
complaint filed by the defendant against the plaintiff and
stands on the same footing as an independent action. Thus,
Ramitex's counterclaim can be considered a direct attack on
Oliveros' title (Oliveros v. San Miguel Corp., G.R. No. 173531,
February 1, 2012) (DEL CASTILLO, J.).
---
Q: In 1916, a property was registered as OCT 213. In 1919,
Aurelio’s grandfather acquired the property, and a TCT R-
3 was issued in his name. The property was inherited by
Aurelio’s father, Leonor. Later, Leonor conveyed the
property to Aurelio’s favor. Aurelio then sold portions
thereof to several individuals, but he remained the
registered owner of the remaining portion. In 2008,
Guntalilib filed a petition for reconstitution of title in lieu
of a lost OCT in the name of his predecessor, Tumaliuan,
which was issued on 1916. The petition was granted and
the Register of Deeds was ordered to issue another
owner’s duplicate property. Aurelio then filed a Complaint
for Quieting of Title, Annulment, and Cancellation of
Unnumbered OCT/Damages against Guntalilib alleging
that that their mother title which was issued on August 7,
1916 should prevail over Guntalilib’s unnumbered OCT
which was issued only on August 29, 1916. Guntalilib filed
a Motion to Dismiss and argued that the case constituted a
collateral attack on their unnumbered OCT. Is Guntalilib
correct?
A: NO. The allegations and prayer in their Amended Complaint
make out a case for annulment and cancellation of title, and
not merely quieting of title: they claim that their predecessor's
OCT 213, which was issued on August 7, 1916, should prevail
over Bernardo Tumaliuan's unnumbered OCT which was
issued only on August 29, 1916.
It has been held that "the underlying objectives or reliefs
sought in both the quieting of title and the annulment of title
cases are essentially the same—adjudication of the ownership
of the disputed lot and nullification of one of the two
certificates of title." Nonetheless, Guntalilib should not have
been so simplistic as to think that the case is merely a quieting
of title case. It is more appropriate to suppose that one of the
effects of cancelling Tumaliuan's unnumbered OCT would be to
quiet title over the lot; in this sense, quieting of title is
subsumed in the annulment of title case (Guntalilib v. Dela
Cruz, G.R. No. 200042, July 07, 2016) (DEL CASTILLO, J.).
WRIT OF POSSESSION
Issuance of writ of possession not ministerial where third
party is in adverse possession or is not a privy to the
debtor
GR : A purchaser in a public auction sale of a foreclosed
property is entitled to a writ of possession.
XPN : The possession of the property shall be given to the
purchaser or last redemptioner unless a third party is actually
holding the property adverse to the judgment obligor (Rules of
Court, Rule 39, Sec. 33).
PURCHASER IN GOOD FAITH AND FOR VALUE
Q: Mahilum entrusted the owner’s duplicate copy of her
land to Perez, real estate broker, who claimed that she can
assist the latter in obtaining a loan, with the title serving
as collateral. Mahilum demanded the return of the title
but Perez failed to produce the same alleging that it was
lost. Thereafter Mahilum was informed by the RD that the
title was not lost but was presented by Sps. Ilano who
claimed that the property was sold to them and showed
Mahilum a notarized Agreement and a Deed of Absolute
Sale containing Mahilum’s forged signature. However, the
 CIVIL LAW
spouses did not register the title in their names. Mahilum
then sought the annulment of the Agreement and the Deed
of Absolute Sale. Spouses Ilano prayed for the dismissal of
the complaint arguing that Mahilum failed to allege that
they were purchasers in bad faith and in the absence of
such an allegation, the presumption that respondents are
purchasers in good faith prevails. Can the Spouses Ilano
claim that they are purchasers in good faith?
A: NO. Since the title of the property remained with Mahilum,
there is no new title to annul. Indeed, if the agreement and
deed of sale are forgeries, then they are a nullity and convey no
title. The underlying principle is that no one can give what one
does not have. Moreover, in order for the holder of a
certificate for value issued by virtue of the registration of a
voluntary instrument may be considered a holder in good faith
for value, the instrument registered should not be forged.
When the instrument presented is forged, even if accompanied
by the owner’s duplicate certificate of title, the registered
owner does not thereby lose his title, and neither does the
assignee in the forged deed acquire any right or title to the
property (Mahilum v. Spouses Ilano, G.R. No. 197923, June 22,
2015) (DEL CASTILLO, J.).
VOLUNTARY DEALINGS
Q: Are voluntary dealings required to be registered?
A: Voluntary Dealings are not required to be registered.
Registration is not a requirement for validity of the contract as
between the parties. However, the act of registration shall be
the operative act to convey or affect the land insofar as third
parties are concerned.
Q: What are the requirements for registrability of deeds
and other voluntary acts of conveyance?
A:
1. Presentation of owner’s duplicate certificate whenever
any duly executed voluntary instrument is filed for
registration;
2. Inclusion of one extra copy of any document of transfer or
alienation of real property, to be furnished to the city or
provincial assessor;
3. Payment of prescribed registration fees and requisite
documentary stamps; and
4. Evidence of full payment of real estate tax as may be due.
---
Q: Is non-registration of property after judicial foreclosure
and sale had the effect of invalidating the foreclosure
proceedings, such that ownership reverts to the original
owner?
A: NO. The effect of the failure of Apolinario Cruz to obtain the
judicial confirmation was only to prevent the title to the
property from being transferred to him. For sure, such failure
did not give rise to any right in favor of the mortgagor or the
respondents as his successors-in-interest to take back the
property already validly sold through public auction. Nor did
such failure invalidate the foreclosure proceedings. To
maintain otherwise would render nugatory the judicial
foreclosure and foreclosure sale, thus unduly disturbing
judicial stability (Robles v. Yapcinco, G.R. No. 169568, October
22, 2014).
INVOLUNTARY DEALINGS
Q: Is registration required in involuntary dealings?
A: YES. Involuntary dealings, unlike the voluntary dealings,
requires the registration. It is the act of registration which
creates a constructive notice to the whole world of such
instrument or court writ or process and is the operative act
64
that conveys ownership or affects the land insofar as third
persons are concerned.
Involuntary dealings that must be registered
1. Attachment
2. Adverse claim
3. Notice of lis pendens
Q: How is adverse claim registered?
A: An adverse claim is registered by filing with the Register of
Deeds a sworn petition stating the basis of the right claimed.
The duty of the Register of Deeds to record the same on the
title is ministerial. The notice of adverse claim is to apprise the
third person that there is controversy over the ownership of
the land, such that any transaction regarding the land is
subject to the outcome of the dispute (Ching v. Enrile, GR. No.
156076, Sept 17, 2008).
---
Q: What is a notice of lis pendens?
A: A notice of lis pendens is an announcement to the whole
world that a particular real property is in litigation, serving as
a warning that one who acquires an interest over the said
property does so at his own risk or that he gambles on the
result of the litigation of the said property Dela Merced v. GSIS,
G.R. No. 125038, Nov. 16, 2001). Thus, one who buys land
where there is a pending notice of lis pendens cannot invoke
the right of a purchaser in good faith; neither can he have
acquired better rights than those of his predecessor in interest
(Yu v. CA, G.R. No. 109078, Dec. 25, 1995).
---
Q: When may a notice of lis pendens be availed of?
A:The litigation must involve the title to, or the use or
occupration of, a specific property. It does not apply where the
object of the suit is money judgment, or proceedings for the
probate of will or administration of the estate of a deceased
person, levy on execution or preliminary attachments (MR
Holdings Ltd. V. Bajar, GR No. 153478, October 10, 2012). A
notice of lis pendens subject the interest of the transferee to
the result of pending suit.
---
Q: GSIS foreclosed the mortgaged properties of Zulueta. A
new TCT was then issued in its name. Upon learning of the
foreclosure, Dela Merced sought its nullification on the
ground that he, not Zuleta, is the owner of the mortgaged
properties. Dela Merced then caused the annotation of lis
pendens on GSIS’ TCT. The Court ruled in favor of de la
Merced. However the Register of Deeds failed to enforce
the writ of execution since titles to the properties are
already in the name of Manlongat. It appears that GSIS
transferred the properties during the proceedings. While
the new titles contain notices of lis pendens carried over
from GSIS’ title, the RD claimed that the writ of execution
must first be modified to include the cancellation of
derivative titles of the GSIS title. Is the RD correct?
A: NO. A notice of lis pendens is an announcement to the whole
world that a particular real property is in litigation, serving as
a warning that one who acquires an interest over said
property does so at his own risk, or that he gambles on the
result of the litigation over the said property. Therefore,
Manlongat had notice of the litigation involving GSIS’
ownership over the subject properties, and was subject to
whatever rights GSIS might have in the subject properties,
which turned out to be none at all. Given the legal maxim that a
spring cannot rise higher than its source, it follows that
Manlongat’s titles are likewise null and void (Dela Merced v.
GSIS, G.R. No. 167140, November 23, 2011) (DEL CASTILLO, J.).
 UST LAW PRE-WEEK NOTES 2018

Notice of lis pendens negates good faith The relative deGRee of negligence of the parties is considered
in determining whether, and to what deGRee, either should be
One who deals with property subject of a notice of lis pendens responsible for his negligence (apportionment of damages).
cannot invoke the right of a purchaser in good faith—neither
can he acquire better rights than those of his predecessor-in- 2. INTENTIONAL TORTS
interest.
Q: What is intent from the point of view of torts?
NON-REGISTRABLE PROPERTIES
A:It refers either to a person’s desire that certain
Q: What are non-registrable properties? consequences result from his actions or even his knowledge
that those results are substantially certain to occur as a result
A: of his actions (Garratt v. Dailey, 46 Wash 2d 197, 1955).
1. Property of public domain or those intended for public
use, public service or development of the national wealth. A. INTENTIONAL PHYSICAL HARM
2. Forest or timber lands
3. Water sheds ASSAULT (GRAVE THREAT)
4. Mangrove swamps
5. Mineral lands Elements (LICA3)
6. Parks and plazas
7. Military or naval reservations 1. That a person committed a voluntary Act;
8. Foreshore lands 2. That the person’s act created in another person an
9. Reclaimed lands Apprehension of immediate harmful or offensive contact
10. Submerged areas with the latter’s person;
11. River banks 3. That the person Intended to cause either a harmful or
12. Lakes offensive contact or an apprehension of such a contact;
13. Reservations for public and semi-public purposes 4. That there was a Causal connection between the attacker
14. Other similar character. and the other person’s apprehension;
5. The victim Lacks consent.

FALSE IMPRISONMENT (DIGNITARY TORT/ILLEGAL

PART XIII – TORTS AND DAMAGES DETENTION)

GENERAL PRINCIPLES Elements (CACAI)

Civil liabilities which may arise due to an act or omission 1. An Act or omission on the part of defendant that confines
of one, causing damage to another or restrains plaintiff;
2. That plaintiff is confined or restrained to a bounded area;
1. Civil liability ex delicto 3. Intent;
4. Causation; and
NOTE: Every person criminally liable for a felony is 5. Awareness of the defendant of the confinement that the
also civilly liable (RPC, Art.100). defendant was actually harmed by it.

2. Independent civil liabilities, such as those: B. INTENTIONAL NON-PHYSICAL HARMS

a. Not arising from an act or omission complained
of as a felony, e.g., culpa contractual or
obligations arising from law under Article 31 of
the New Civil Code (such as breach of contract
or tort), intentional torts under Articles 32 and
34, and culpa aquiliana under Article 2176 of
the New Civil Code.
b. Where the injured party is granted a right to file
an action independent and distinct from the
criminal action under Article 33 of the New Civil
Code (in cases of defamation, fraud and physical
injuries).
CLASSIFICATION OF TORTS
1. NEGLIGENT TORTS
Q: What is the test of negligence?
VIOLATION OF PERSONAL DIGNITY
Q: What is the rule with respect to the right of a person to
his dignity, personality, privacy and peace of mind?
A:Every person shall respect the dignity, personality, privacy
and peace of mind of his neighbors and other persons. The
following and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for damages,
prevention and other relief:
1. Prying into the privacy of another's residence;
2. Meddling with or disturbing the private life or family
relations of another;
3. Intriguing to cause another to be alienated from his
friends; and
4. Vexing or humiliating another on account of his:

A:The test is would a prudent man, in the position of the a) religious beliefs;
tortfeasor, foresee harm to the person injured as a reasonable b) lowly station in life;
consequence of the course about to be pursued? If so, the law c) place of birth;
imposes a duty on the actor to take precaution against its d) physical defect; or
mischievous results, and failure to do so constitutes negligence e) other personal condition (NCC, Art. 26).
(Picart v. Smith, G.R. No. L-12219, March 15, 1918).
INFLICTION OF EMOTIONAL DISTRESS
Q: What is the doctrine of comparative negligence?
Requisites (ICE-D)
A: The negligence of both the plaintiff and the defendant are
compared for the purpose of reaching an equitable The plaintiff must show that:
apportionment of their respective liabilities for the damages 1. The conduct of the defendant was intentional or in
caused and suffered by the plaintiff (Pineda, 2009). reckless disregard of the plaintiff;
2. The conduct was extreme and outrageous;

65
 CIVIL LAW
3. There was a causal connection between the defendant’s
conduct and the plaintiff’s mental distress; and
4. The plaintiff’s mental distress was extreme and severe
(MVRS Publications Inc. v. Islamic Da’wah Council of the
Philippines, G.R. No. 135306, January 28, 2003).
NOTE: Even if there was no intentional infliction of emotional
distress in one case, the SC recognized the possibility that one
may be made liable for the tort of intentional infliction of
emotional distress.
MALICIOUS PROSECUTION
Elements
In criminal cases
1. The fact of the prosecution and the further fact that the
defendant was himself the prosecutor, and that the action
was terminated with an acquittal;
2. That in bringing the action, the prosecutor acted without
probable cause; and
3. The prosecutor was actuated or impelled by legal malice
(Yasoña v. Ramos, G.R. No. 156339, October 6, 2004).
To constitute malicious prosecution, there must be proof that
the prosecution was prompted by a sinister design to vex and
humiliate a person, and that it was initiated deliberately,
knowing that the charges were false and Groundless (Pineda,
2009).
In civil cases
1. The defendant filed a civil action against the plaintiff
previously;
2. The action was dismissed for clear lack of merit or for
being baseless, unfounded, and malicious;
3. The defendant who filed the previous complaint as
plaintiff was motivated by ill-will or sinister design; and
4. The present plaintiff suffered injury or damage by reason
of the previous complaint filed against him (Pineda, 2009).
NOTE: A disbarment proceeding being judicial in character
may therefore be the basis for a subsequent action for
malicious prosecution (Ponce v. Legaspi, et al., G.R. No. 79184,
May 6, 1992).
DEFAMATION
Requisites (DIP-M)
1. It must be Defamatory;
2. It must be Malicious;
3. It must be given Publicity; and
4. The victim must be Identifiable (Alonzo v. CA, G.R. No.
110088, February 1, 1995).
NOTE: “Publicity” is the communication of the defamatory
matter to some third person or persons.
Q: Is the defense of expressing one’s opinion or belief
tenable?
A:NO. Allegation that the offender merely expresses his
opinion or belief is not a defense in defamation cases.To
escape criminal responsibility, it is not enough for the offender
to say that he expresses therein no more than his opinion or
belief. The communication must be made in the performance
of a “legal, moral, or social duty.”
VIOLATION OF RIGHTS COMMITTED BY PUBLIC OFFICERS
Requisites
1. Defendant is a public officer charged with the
performance of a duty in favor of the plaintiff;
66
2. He refused or neglected without just cause to perform
such duty (ministerial);
3. Plaintiff sustained material or moral loss as consequence
of such non-performance; and
4. The amount of such damages, if material.
DEFENSES TO INTENTIONAL TORTS
Q: Can the consent of the injured party be considered as a
defense by the tortfeasor?
A:Typically, one cannot hold another liable in tort for actions
to which one has consented. This is frequently summarized by
the phrase "volenti non fit injuria" ("to a willing person, no
injury is done" or "no injury is done to a person who
consents"). It operates when the claimant either expressly or
implicitly consents to the risk of loss or damage.
NOTE: Consent is willingness in fact for the conduct to occur.
Q: Is consent a defense if the plaintiff or offended party is a
minor?
A:NO.For one to surrender the right to be free from intentional
interference by others, one must have the mental capacity to
consent. Defendant can be liable despite the fact that the
plaintiff was subjectively willing and communicated that
willingness to the defendant.
Q: Can self-defense be used as a defense to escape
liability?
A:YES.An actor is privileged to defend himself against another
by force likely to cause death or serious bodily harm when he
reasonably believes that:
1. The other is about to inflict upon him an intentional
contact and
2. He is thereby put in peril of death or serious bodily harm
which can safely be prevented only by immediate use of
such force.
NOTE: Court requires objective and subjective belief
(reasonable person could have seen the situation as dangerous
and subject believed that he was in danger).
3. STRICT LIABILITY
There is no requirement to prove negligence or intent.
A. POSSESSOR AND USER OF AN ANIMAL
Q: What is the liability for damages caused by animals?
A: GR:The possessor or whoever makes use of the animal is
liable independent of fault.
XPN: When the damage is caused by force majeure or by the
person who suffered the damage.
B. NUISANCE
Q: What is the doctrine of Attractive Nuisance?
A:One who maintains on his premises dangerous
instrumentalities or appliances of a character likely to attract
children in play, and who fails to exercise ordinary care to
prevent them from playing therefrom is liable to a child of
tender years who is injured thereby, even if the child is a
trespasser (Hidalgo v. Balandan, G.R. No. L-3422, June 13, 1952).
 UST LAW PRE-WEEK NOTES 2018
DIRECT TORTFEASOR
Whoever by act or omission causes damage to another, there
being fault of negligence, is obliged to pay for the damage done
(Art. 2176, NCC).
Liability of proprietors of buildings
1. The proprietor of a building or structure is
responsible for the damages resulting from its total
or partial collapse, if it should be due to the lack of
necessary repairs; and (NCC, Art. 2190) (1990, 2007
BAR).
2. They shall also be responsible for damages caused by
emanations from tubes, canals, sewers or deposits of
infectious matter, constructed without precautions
suitable to the place (NCC, Art. 2191) (2002 Bar).
JOINT TORTFEASOR
The responsibility of two or more persons who are liable for
quasi-delict is solidary (NCC, Art. 2194). Each are liable as
principals, to the same extent and in the same manner as if
they had performed the wrongful act themselves (Ruks Konsult
and Construction v. Adworld Sign and Advertising Corp., G.R. No.
204866, January 21, 2015).
Concurrent negligence of two or more persons
Where the concurrent or successive negligent acts or
omissions of two or more persons, although acting
independently, are in combination the direct and proximate
cause of a single injury to a third person (Sabido v. Custodio,
G.R. No. L-21512, August 31, 1966).
PERSON MADE RESPONSIBLE FOR OTHERS(PRINCIPLE OF
VICARIOUS LIABILITY (2001, 2006, 2009, 2010 Bar)
The obligation imposed by Article 2176 of the NCC for quasi-
delicts is demandable not only for one's own acts or omissions,
but also for those persons for whom one is responsible (NCC,
Art. 2180).
Presumption of negligence on persons indirectly
responsible
The rebuttable presumption of law is that there was
negligence on the part of the master or employer either in the
selection of the servant or employee (culpa in eligendo) or in
the supervision over him after the selection (culpa vigilando),
or both.
Q: What is the nature of responsibility of a vicrious
obligor?
A. His liability is primary and direct, not subsidiary. He is
solidarily liable with the tortfeasor. His responsibility is
not conditioned upon the insolvency of or prior recourse
against the negligent tortfeasor (De Leon Brokerage v. CA,
G.R. 15247, February 28, 1962).
Persons vicariously liable (F-GOES-T)
1. Father, or in case of death or incapacity, mother:
a. Damage caused by minor children; and
b. Living in their company.
XPN:Special Parental Authority under the Art. 218
and Art. 219 of the Family Code.
2. Guardians:
a. For minors or incapacitated persons;
b. Under their authority; and
c. Living in their company.
3. Owners and managers of establishments:
67
a. For their employees;
b. In the service of the branches in which they are
employed; or
c. On the occasion of their functions.
4. Employers:
a. Damages caused by employees and household
helpers;
b. Acting within the scope of their assigned tasks;
and
c. Even if the employer is not engaged in any
business or industry.
Whenever an employee’s negligence causes damage or injury
to another, there instantly arises a presumption juris
tantum that the employer failed to exercise diligentissimi patris
families in the selection or supervision of his employee. This
liability of the employer is primary and direct (Reinoso, Sr. v.
Court of Appeals, G.R. No. 116121, July 18, 2011 citing Macalinao
v. Ong,
Registered Owner Rule
The person who is the registered owner of a vehicle is liable
for any damages caused by the negligent operation of the
vehicle although the driver is not his agent or employee
(FILCAR Transport Services v. Espinas, G.R. No. 174156, June 20,
2012 citing Equitble Leasing Corporation v. Suyom, G.R. No.
143360, September 5, 2002).
---
Q: What is the rationale for holding registered owner
vicariously liable?
A: The main aim of motor vehicle registration is to identify the
owner so that if any accident happens, or that any damage or
injury is caused by the vehicle on the public highways,
responsibility therefor can be fixed on a definite individual, the
registered owner. (Del Carmen, Jr. v. Bacoy, G.R. No. 173870,
April 25, 2012) (DEL CASTILLO, J.).
NOTE: The appropriate approach in cases where both the
registered-owner rule and Article 2180 apply, is that the
plaintiff must first establish that the employer is the registered
owner of the vehicle in question. Once the plaintiff successfully
proves ownership, there arises a disputable presumption that
the requirements of Article 2180 have been proven. As a
consequence, the burden of proof shifts to the defendant to
show that no liability under Article 2180 has arisen. This may
be done by proof of any of the following: (1) That there is no
employee-employer relationship; or (2) That the employee-
driver acted outside the scope of his assigned tasks; or (3) That
employer exercised the diligence of a good father of a family in
the selection and supervision of his employee (Greenstar
Express, Inc. and Fruto L. Sayson v. Universal Robina
Corporation and Nission Universal Robina Corporation, G.R. No.
205090, October 17, 2016) (DEL CASTILLO, J.).
---
Q: What is the liability of an owner of a vehicle in case of
an accident (1996, 1998, 2002, 2009 Bar) ?
A: In motor vehicle mishaps, the owner is solidarily liable with
his driver, if the former, who was in the vehicle, could have, by
the use of the due diligence, prevented the misfortune.
However, ifthe car owner is not present in the vehicle and the
driver was negligent, the injured party may still sue said
owner under Article 2180(5) of the NCC for imputed liability.
5. State – acting through a special agent and not when the
damage has been caused by the official to whom the task
done properly pertains.
6. Teachers or heads of establishments:
a. Of arts and trades;
 CIVIL LAW
NOTE: Article 2180 of the NCC is applicable to
all schools, whether it be academic or non-
academic (Amadora v. CA, G.R. No. L-47745, April
15, 1988).
b. For damages caused by their pupils and students
or apprentices; and
c. So long as they remain in their custody (NCC, Art.
2180).
The actual tortfeasor is not exempted from liability
The minor, ward, employee, special agent, pupil, students and
apprentices who actually committed the delictual acts are not
exempted by the law from personal responsibility. They may
be sued and made liable alone as when the person responsible
for them or vicarious obligor proves that he exercised the
diligence of a good father of a family or when the minor or
insane person has no parents or guardians. In the latter
instance, they are answerable with their own property (Pineda,
2009).
Common Defenses
The vicarious liability shall cease when the defendants prove
that they observed all the diligence of a good father of a
family to prevent damage (NCC, Art. 2180; Cuadra v. Monfort,
G.R. No. L-24101 September 30, 1970).
TORT CONCEPTS AND DOCTRINES
RES IPSA LOQUITUR
Requisites for the application of the doctrine
Resort to the doctrine may be allowed only when:
1. The accident is of such character as to warrant an
inference that it would not have happened except for the
defendant’s negligence;
2. The accident must have been caused by an agency or
instrumentality within the exclusive management or
control of the person charged with the negligence
complained of; and
3. The accident must not have been due to any voluntary
action or contribution on the part of the person injured
(Del Carmen, Jr. v. Bacoy, G.R. No. 173870, April 25, 2012)
(DEL CASTILLO, J.).
Three uses and applications of the doctrine
1. In medical negligence cases;
2. In cases where the exercise of judicial discretion is
abused; and
3. In practical instances.
MEDICAL NEGLIGENCE
Q: What are the elements of medical negligence?
A:
1. Duty
2. Breach of duty
3. Injury
4. Proximate Causation
Q: What is the doctrine of captain of the ship?
A: The surgeon is likened to a ship captain who must not only
be responsible for the safety of the crew but also of the
passengers of the vessel. The head surgeon is made
responsible for everything that goes wrong within the four
corners of the operating room. It enunciates the liability of the
surgeon not only for the wrongful acts of those who are under
his physical control but also those wherein he has extension of
control (Ramos v. CA, G.R. No. 124354, December 29, 1999).
68
Liability of hospitals
The hospital is liable in the following capacities:
1. As an employer – It is vicarious liable for the negligent
acts of its physicians pursuant to Article 2180 in
relation to Article 2176 of the NCC.
2. As a principal
a) Doctrine of Corporate Responsibility – The duty of
providing quality medical service is no longer
the sole prerogative of the physician. The
hospital has the duty to exercise reasonable care
to protect from harm all patients admitted into
its facility for medical treatment hence it is liable
for the negligent acts of its health professionals
(PSI v. Agana, G.R. No. 126297, January 31, 2007).
b) Doctrine of Apparent Authority - Where it can be
shown that a hospital, by its actions, has held out
a particular physician as its agent and/or
employee and that a patient has accepted
treatment from that physician in the reasonable
belief that it is being rendered in behalf of the
hospital, then the hospital will be liable for the
physician’s negligence (Ibid.).
NOTE: In an action for damages against a hospital, the
negligence of its nurses can be imputed to the employer where
there is no proof that the employer exercised actual supervision
and monitoring of consistent compliance with hospital rules by
its staff ( Our Lady of Lourdes Hospital v. Spouses Romeo and
Regina Capanza, G.R. No. 189218, March 22, 2017).
DOCTRINE OF LAST CLEAR CHANCE
(DOCTRINE OF DISCOVERED PERIL or DOCTRINE OF
SUPERVENING NEGLIGENCE)
The doctrine of last clear chance is a theory adopted to
mitigate the harshness of the contributory negligence of the
plaintiff (Phoenix Construction Inc. v. IAC, G.R. No. L-65295,
March 10, 1987).
Requisites:
1. Plaintiff is placed in danger by his own negligent acts and he
is unable to get out from such situation by any means;
2. Defendant knows that the plaintiff is in danger and knows or
should have known that the plaintiff was unable to extricate
himself therefrom; and
3. Defendant had the last clear chance or opportunity to avoid
the accident through the exercise of ordinary care but failed to
do so, and the accident occurred as a proximate result of such
failure (Pineda, 2009).
PROXIMATE CAUSE
It isthat cause, which, in natural and continuous sequence,
unbroken by any efficient intervening cause, produces the
injury, and without which the result would not have occurred.
To be considered the proximate cause of the injury, the
negligence need not be the event closest in time to the injury; a
cause is still proximate, although farther in time in relation to
the injury, if the happening of it set other foreseeable events
into motion resulting ultimately in the damage (Abrogar v.
Cosmos Bottling Company and Intergames, Inc., G.R. No. 164749,
March 15, 2017).
The doctrine of proximate cause is applicable only in actions
for quasi-delict, not in actions involving breach of contract.
DAMNUM ABSQUE INJURIA
(DAMAGE WITHOUT PREJUDICE)
 UST LAW PRE-WEEK NOTES 2018
A person who only exercises his legal rights does no injury. If
damages result from such exercise of legal rights, the
consequences must be borne by the injured person alone. The
law affords no remedy for damages resulting from an act
which does not amount to a legal injury or wrong (Heirs of
Purisima Nala v. Cabansag, G.R. No. 161188, June 13, 2008).
PRESUMPTION OF NEGLIGENCE
(2000, 2009 Bar)
A person is generally presumed to have taken ordinary care of
his concerns (Rules of Court, Rule 131, Sec. 3).
There are however exceptions when negligence is presumed:
1. Motor vehicle mishaps – a driver is presumed
negligent if he was found guilty of reckless driving or
violating traffic regulations at least twice within the
preceding two months (NCC, Art. 2184); or was
violating any traffic regulation at the time of the
mishap (NCC, Art. 2185).
2. Possession of dangerous weapons or substances,
results in death or injury, except when the possession
or use thereof is indispensable in his occupation or
business (NCC, Art. 2188).
3. Common carriers are presumed to have been at fault
or acted negligently in cases of death or injuries to
passengers. Unless they prove that they observed
extraordinary diligence (NCC, Art. 1733 & 1755).
4. Captain of the ship doctrine - A surgeon is likened to a
captain of the ship, such that it is his duty to control
everything going on in the operating room. The
surgeon in charge of an operation is liable for the
negligence of his assistants during the time when
those assistants are under the surgeon’s control
(Cantre v. Go, G.R. No. 160889, April 27, 2007).
NOTE: The negligence of the employee gives rise to the
presumption of negligence on the part of the employer. This is
the presumed negligence in the selection and supervision of
the employee (Poblete v. Fabros, G.R. No. L-29803, September
14, 1979).
LEGAL INJURY
The underlying basis for the award of tort damages is the
premise that an individual was injured in contemplation of
law. Thus, there must first be a breach of some legal duty and
the imposition of liability for that breach before damages may
be awarded; and the breach of such duty should be the
proximate cause of the injury (Equitable Banking Corp. v.
Calderon, G.R. No. 156168. December 14, 2004).
Q: Differentiate injury, damage and damages
A:
Injury The illegal invasion of a legal right.
The loss, hurt, or harm which results
Damage
from the injury.
The recompense or compensation
Damages
awarded for the damage suffered.
Q: Can tort arise from breach of contract?
A:YES. A quasi-delict can be the cause for breaching a contract
that might thereby permit the application of principles
applicable to tort even when there is a pre-existing contract
between the plaintiff and the defendant.
Where, without a pre-existing contract between two parties,
an act or omission can nonetheless amount to an actionable
tort by itself, the fact that the parties are contractually bound
69
is no bar to the application of quasi-delict provisions to the
case.
This rule can govern only where the act or omission
complained of would constitute an actionable tort
independently of the contract (Far East Bank and Trust
Company v. CA, G.R. No. 108164, February 23, 1995).
SUDDEN PERIL DOCTRINE
(EMERGENCY RULE)
GR: One who suddenly finds himself in a place of danger, and is
required to act without time to consider the best means that
may be adopted to avoid the impending danger, is not guilty of
negligence, if he fails to adopt what subsequently and upon
reflection may have been a better method, unless the
emergency in which he finds himself is brought about by his
own negligence (Mc Kee v. IAC, G.R. No. 68102-3, July 16, 1992).
XPN: The emergency was brought about by the individual’s
own negligence (Valenzuaela v. CA, G.R. No. 115024, Febuary 7,
1996).
Burden of proof
The tortfeasor has the burden of proving his allegation that he
acted on an emergency (Makati Auto Line Transport
Corporation v. People, G.R. No. 152040, March 31, 2006).
DAMAGES
Q: What are damages?
A:In legal contemplation, the term “damages” is the sum of
money which the law awards or imposes as a pecuniary
compensation, a recompense or satisfaction for an injury done
or wrong sustained as a consequence either of a breach of a
contractual obligation or a tortious act (MEA Builders, Inc. v.
CA, G.R. No. 121484, January 31, 2005).
NOTE:To warrant the recovery of damages, there must be both
a right of action for a legal wrong inflicted by the defendant, and
damage resulting to the plaintiff therefrom. Wrong without
damage, or damage without wrong, does not constitute a cause
of action, since damages are merely part of the remedy allowed
for the injury caused by a breach or wrong ( Spouses Latonio
and minor Ed Christian Latonio v. McGeorge Food Industries,
Inc., Cebu Golden Foods Industries, Inc. and Tyke Philip Lomibao,
G.R. No. 206184, December 6, 2017).
NOTE: In actions for damages, the courts should award an
amount to the winning party and not its equivalent in property
(Ibid.).
Q: Can moral damages be recovered for breach of
contract?
A: YES. As a general rule, moral damagesare not recoverable in
actions for damages predicated on a breach of contract.
However, moral damages may be awarded in culpa
contractual, involving common carriers in the following
instances:
a. Where the passenger died by reason of negligence of
the carrier (Art. 1764);
b. Where it is proved that the carrier is guilty of fraud
or bad faith, even if the death does not result (Spouses
Estrada v. Philippine Rabbit Bus Lines, Inc., G.R. No.
203902, July 19, 2017; Judith Darines and Joyce
Darines v. Present: Eduardo Quinones and Rolando
Quitan, G.R. No. 206468, August 02, 2017) (DEL
CASTILLO, J.).
Exemplary or corrective - Exemplary or corrective damages
are imposed, by way of example or correction for the public
 CIVIL LAW

good, in addition to the moral, temperate, liquidated or

compensatory damages (Art. 2229)(2003, 2005, 2009 Bar).

Nominal - Nominal damages are adjudicated in order that a

right of the plaintiff, which has been violated or invaded by the
defendant, may be vindicated or recognized, and not for the
purpose of indemnifying the plaintiff for any loss suffered by
him (Art. 2221) (1991, 1994, 2005 Bar).

NOTE: A third party who did not commit a violation or

invasion of the plaintiff or aggrieved party's rights may not be
held liable for nominal damages. Nominal damages are
recoverable where a legal right is technically violated and must
be vindicated against an invasion that has produced no actual
present loss of any kind or where there has been a breach of
contract and no substantial injury or actual damages
whatsoever have been or can be shown. (One Network Rural
Bank v. Baric, G.R. No. 193684, March 5, 2014) (DEL CASTILLO,
J. ).

Temperate or moderate - more than nominal but less than

compensatory damages, may be recovered when the court
finds that some pecuniary loss has been suffered but its
amount cannot, from the nature of the case, be provided with
certainty. (Art. 2224)

Actual or compensatory - Except as provided by law or by

stipulation, one is entitled to an adequate compensation only
for such pecuniary loss suffered by him as he has duly proved.
(Art. 2199)

NOTE: Competent proof and a reasonable degree of certainty

are needed to justify a grant of actual or compensatory
damages; speculations, conjectures, assertions or guesswork
are not sufficient (Engr Apolinario Duenas v. Alice Guce-Africa,
G.R. No. 165679, October 5, 2009; Continental Cement Corp. v
Asea Brown Boveri, Inc, G.R. No. 171660, October 17, 2011) (DEL
CASTILLO, J.).

DAMAGES IN CASE OF DEATH

Q: What are the damages that can be recovered in case of

death?
A: The following are damages that can be recovered in case of
death (MEA-I3)

1. Moral damages;
2. Exemplary damages;
3. Attorney's fees and expenses for litigation;
4. Indemnity for death;
5. Indemnity for loss of earning capacity; and
6. Interest in proper cases.

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