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University of Makati School of Law Property Course Outline: Cases
University of Makati School of Law Property Course Outline: Cases
SCHOOL OF LAW 1
I. DEFINITION
Traditionally, the concept of property extends only to those things that are already possessed and
found in the possession of man. Property is inseparable from the relation which the object has with
the person exercising dominion or right over it. In our Civil Code, the concept of property is not
confined to things which are already appropriated or possessed by man but also extends to those
susceptible of such appropriation.
For a thing to be considered as property, it must have: (a) utility; (b) substantivity; and (c)
appropriability or susceptibility to appropriation.
B. By Ownership
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Acknowledgement to U.P. College of Law Professor Eduardo Labitag for this course outline.
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1. Res Nullius
2. Public Dominion, (cf. Patrimonial) (Arts. 419, 420-422, 424)
a. Property of State - Art. 420-422
i. For Public Use
ii. For Public Service
iii. For Development of National Wealth
Cases:
La Bugal-B'laan Tribal Assn. v. Ramos, G.R. 127882, Jan, 27, 2004
on Reconsideration Dec. 1, 2004, Jan. 27, 2004, Feb. 1,2005
Chavez v. Public Estates Authority, 384 SCRA 152 on
Reconsideration: Chavez v. Public Estates Authority, G.R. No.
133250, May 6, 2003
Usero v. CA, G.R. No. 152115, Jan. 26, 2006
b. Property of Municipal Corporations- Art. 424, par. 1. For Public Use
including Public works for Public Service
3. Private property
a. Patrimonial Property of State- Art. 424
b. Patrimonial Property of Municipal Corporations - Art. 424, par. 2
c. Private Property of Private Persons- Art. 425, par. 2
Cases: Tantoco v. Municipal Council, 49 Phil. 52
Zamboanga del Norte v. City of Zamboanga, 22 SCRA 1334
Salas v. Jarencio, 46 SCRA 743
Cebu v. Bercilles, 66 SCRA 481
Municipality of San Miguel v. Fernandez, 130 SCRA 56
Government v. Cabangis, 53 Phil. 112
Chavez v PEA G.R. 133250, July 9, 2002 on Motion for
Reconsideration, May 6, 2003
C. Other Classification
1. By their physical existence
a. Corporeal
b. Incorporeal
2. By their Autonomy of Dependence
a. Principal
b. Accessory
3. By their Subsistence After Use
a. Consumable- Art. 418(1)
b. Non-Consumable- Art. 418
Differentiated from Fungible or Non-fungible
c. Deteriorable or Non-deteriorable
4. By Reason of their Susceptibility to Division
a. Divisible
b: Indivisible
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5. By reason of Designation
a. Generic
b. Specific
6. Existence in Point of Time
a. Present
b. Future
7. Contents and Constitution
a. Singular (simple, compound)
b. Universal
8. Susceptibility to Appropriation
a. Non-appropriable
b. Appropriable (already appropriated, not yet appropriated)
9. Susceptibility to Commerce
a. Within the Commerce of Man
b. Outside the Commerce of Man
II. OWNERSHIP
A. Definitions.
It is independent right of exclusive enjoyment and control of a thing for the purpose of
deriving therefrom all the all advantages required by the reasonable needs of the owner
(or holder of the right) and the promotion of the general welfare, but subject to the
restrictions imposed by law and rights of others. (J .B.L. Reyes)
Ownership is a relation in private law by virtue of which a thing (or property right)
pertaining to one person is completely subjected to his will in everything not prohibited
by public law or the concurrence with the rights of another.
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ii. Latin Maxim: Sic Utere Tuo Ut Alienum Non Lqedas -
Art. 431
iii. Act in State of Necessity - Art. 432
b. by party transmitting property, be it in a contract, or last will or donation
c. by owner himself, e.g. voluntary servitude, mortgage, pledge, lease
d. inherent limitations from conflict of rights arising from contiguity of
property
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iii. BPS in Good Faith - Art. 448
iv. BPS in Bad Faith - Art. 449, 450, 451
1. Options Open to Owner of Land
a. To acquire building, planting and sowing
BPS has right of retention retain possession
without paying rental not entitled to fruits; his
rights are the same as an antichretic creditor
b. To sell and to BP to lease lands
BP may refuse if value of land considerable
more than bp unless owner chooses to
acquire bps; then - forced lease by LO and
BP
2. Natural
a. Accretion Alluvium- Art. 457
Case: Republic v. CA, 132 SCRA 514
Grande v . CA, G.R. No. L-17652, June 30,
1962
Meneses, July 14, 1995
b. Avulsion
c. Change of Course of River - Art. 461-463
Case: Baes v. CA, 224 SCRA 562
Binalay v. Manalo, G.R. No. 92161
d. Formation of Islands ·- Art. 461-465 see: PD
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1067, Water Code
3. Over Movables
a. Conjunction and Adjunction
i. Inclusion or Engraftment
ii. Solladura· or soldering: Plumbatura (different metals);
Ferruminatio (same metal)
iii. Tejido or Weaving
iv. Escritura or writing
v. Pintura or painting
b. Commixtion and Confusion
Case: Siari Valley Estates v. Lucasan G.R. No. L-704 Aug. 31, 1955
Santos v . Bernabe, 54 Phil. 19
c. Specification
V. CO-OWNERSHIP
A. Definition
The right of common dominion which two or more persons have in a spiritual part (or ideal
portion) or a thing, which is not physically divided.
B. Characteristics
1. There is plurality of owners, but only one real right of ownership;
2. The recognition of ideal shares, defined but not physically identified;
3. Each co-owner has absolute control over his ideal share;
4. Mutual respect among co-owners in regard to use enjoyment and preservation of
thing as a whole
Cases: Pardell v. Bartolome, 23 Phil. 450
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i. Cohabitation (Art. 147 & 148, Family Code); Art. 90 on suppletory
application of the principles of coownership to ACP
ii. Purchase (Art. 1452)
iii. Succession (Intestate): Art. 1078; Testate: Property is given to two or more
heirs
iv. Donation (Art. 753; Article 573, 2nd par.)
v. Chance (Art. 472)
Case: Siari Valley Estate v. Lucason, supra.
vi. Hidden treasure (Art. 348)
vii. Easement of party wall (Art. 658)
viii. Occupation
Case: Punzalan v. Boon Liat, 44 Phil. 320
ix. Condominium Law (Sec. 6(c) Rep. Act 4726)
Case: Twin Towers Condominium Corporation v. Court of
Appeals, G.R. No. 123552, Feb. 27, 2003
2. Contract
i. By agreement (duration of co-ownership, Art. 494)
ii. Universal Partnership (Arts. 1778-1780)
iii. Associations and societies with secret articles (Art. 1775)
3. Succession
4. Chance (Commixtion, hidden treasure)
5. Occupation (harvesting and fishing)
5. To oppose any act of alteration; remedy of other co-owners re: acts of alteration (Art.
491)
Acts of alteration
i. Concept - any change injurious to the thing owned in common or to the
rights of other co-owners or any change material to
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the use, destination or state of thing which act is in violation of the
express or tacit agreement of the co-owners
ii. Distinguished from acts of administration Art. 492
iii. Effect of acts of alteration and remedies of nonconsenting co-owner
Query: Is lease of real property owned in common an act of alteration?
Art. 647 in relation to Art. 1878(8)
6. To protest against acts of majority which are prejudicial to minority (Art. 492 par.
3)
Cases: Lavadia v. Cosme, 72 Phil. 196
Melencio v. Dy Tiao Lay, 55 Phil. 100
Tuason u. Tuason, 88 Phil. 428
7. To exercise legal redemption- Art. 1620, 1623
Cases: Mariano v. CA, 222 SCRA 736
Verdad v. CA, 256 SCRA 593
8. To ask for partition - Art. 494
Cases: Ramirez v. Ramirez, 21 SCRA 384
Aguilar v. CA, G.R. No. 76351, Oct. 26, 1993
Vda. de Ape v. CA, G.R. No. 133638, April 15, 2005
9. Other cases where right of legal redemption is given -Arts.
1621, 1622
Cases: Halili v. CA, G.R. No. 113539, March 12, 1998
Francisco v. Boiser, G.R. No. 137677, May 31,2000
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2. Essential requisites for Condominium
3. Important documents to consider in purchase of condominium unit:
a. master or enabling deed
b. declaration of restrictions
c. articles & by-laws of condominium corporation, f
applicable
d. contract of sale
J. Extinguishment of co-ownership
1. Total destruction of thing
2. Merger of all interests in one person
3. Acquisitive prescription
a. By a third person
b. By one co-owner as against the other co-owners requisites and
unequivocal acts of:
i. Unequivocal acts of repudiation of co-ownership (acts amounting
to ouster of other co-owners) known to other co-owners and shown
by clear and convincing evidence
ii. Open and adverse possession, not mere silent possession for the
required period of extraordinary acquisitive prescription
iii. The presumption is that possession by co-owner is not adverse
Case: Capitle v. De Gahan, G.R. No. 146890, June 8, 2004
4. Partition or Division
a. Right to ask for partition at any time except:
i. When there is a stipulation against it (not over ten years)
ii. When condition of indivision is imposed by transferor (donor or
testator) not exceed 20 years - Art. 494
iii. When the legal nature of community prevents partition (party wall)
iv. When partition is generally prohibited by law (e.g., absolute
community of property
v. When partition would render the thing unserviceable (but
the thing may be sold and · co-owners divide the proceeds (Art.
494) - Action for partition will fail if acquisitive prescription has
set in.
b. Effect of Partition
Arts. 1091, 543, 1092-1093, 499-501
c. Right of Creditors of Individual co-owners Art. 497
d. Procedure for Partition - Rule 69 Rules of Court
VI. POSSESSION
A. Definition and Concept (Art. 523)
Possession is the holding of a thing or the enjoyment of a right, whether by material
occupation or by the fact that the thing or the right is subjected to the action of our will.
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It is a real right independent of and apart from ownership, i.e., the right of possession
(distinguished from the right to possess or jus possidendi)
H. Acquisition of Possession
1. Ways of acquiring possession (Art. 531)
a. Material occupation of the thing
b. Subjection to the action of our will
i. The doctrine of constructive possession.
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ii. Includes constructive delivery;
1. Traditio brevi manu (thing already in transferee's hands, e.g.,
under a contract of lease, then delivered under a sale)
2. traditio constitutum possessorium (thing remains in
transferor's hands, e.g. sale, then retained under a commodatum)
c. Proper acts and legal formalities - refers to the acquisition of possession by
sufficient title, intervivos or mortis causa, lucrative or onerous. Example:
Includes traditio longa manu and traditio simbolica, donations,
succession (testate on intestate), contracts, judicial writs of possession, writ
of execution of judgments, execution and registration of public instruments.
Case: Banco Espafw{Filipino v. Peterson, 7 Phil. 409
2. By whom may possession be acquired: (Art. 532)
a. By same person; elements of personal acquisition
b. By his legal representative; requisites
c. By his agent
d. By any person without any power whatsoever but subject to ratification,
without prejudice to proper case of negotiorium gestio (Arts. 2144), 4129,
2150)
e. Qualifiedly, minors and incapacitated persons (Art. 525)
3. What do not affect possession (Arts. 537, 1119)
a. Acts merely tolerated
Case: Macasaet v. Macasaet, G.R. No. 154391-92, Sept. 30, 2004
b. Acts executed clandestinely and without the knowledge of the possessor
c. Acts by violence as long as possessor objects thereto (Art. 536)
Cases: Cuaycong v. Benedicta, 37 Phil. 781
Astudillo v. PHHC, 73 SCRA 15
Peran v. CFI, 125 SCRA 79
4. Rules to solve conflict of possession (Art. 538): Possession cannot be recognized in
different personalities, except in cases of co-possession by co-possessors without
conflict claims or interest. In case of conflicting possession, preference is given to:
(a) present or actual possessor; (b) one longer in possession if two or more
possessors; (c) if dates of possession are same, one who presents a title; (d) if all
conditions are equal, the thing is placed in judicial deposit pending determination of
possession or ownership through proper proceedings
The same writ is available in unlawful detainer actions upon appeal (Art. 1674)
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3. Reimbursement for expenses -possessor in good faith/bad faith. Liability for
loss or deterioration of property by possessor in bad faith. (Art. 553; 552)
4. Possession of movable acquired in good (in concept of owner) is equivalent to title
(Art. 559). Possessor has actual title which is defeasible only by true owner – one
who has lost a movable or has been unlawfully deprived thereof may recover it
without reimbursement, except if possessor acquired it at a public sale.
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c. Destruction or total loss of thing or it goes out of commerce
d. Possession by another; if possession has lasted longer than one year; real
right of possession not lost until after ten (10) years - subject to Art. 537
(acts merely tolerated, etc.)
VII. USUFRUCT
A. Concept - (Art. 562)
Usufruct is a real right, temporary in character that authorizes the holder to enjoy
all the advantages derived from a normal exploitation of another's property, according
to its destination or purpose, and imposes and obligation of restoring at the time
specified, either the thing itself or its equivalent.
B. Historical considerations
C. Characteristics of Usufruct
D. Usufruct distinguished from lease; from servitude
E. Classes of Usufruct
1. By origin:
a. Voluntary
b. Legal - Art. 321 CC; Art. 226 Family Code
c. Mixed
2. By person enjoying right of usufruct a. Simple
b. Multiple
i. Simultaneous
ii. Successive
Limitation on successive usufruct (Art. 756, 863 & 869)
3. By object of usufruct
a. Rights - (Art. 574)
b. Things
iii. Normal
iv. Abnormal, irregular or quasi-usufruct
4. By the extent of the usufruct
a. As to the fruits
i. Total
ii. Partial (Art. 598)
b. As to object
i. Singular
ii. Universal (Art. 595) - subject to provisions of Arts. 758 & 759
5. By the terms of usufruct (Art. 564)
a. Pure
b. Conditional
c. With a term (period)
F. Rights of Usufructuary
1. As to the thing and its fruit
a. Right to possess and enjoy the thing itself, its fruits and accessions
- Fruit consist of natural, industrial and civil fruits
- As to hidden treasure, usufructuary is considered a stranger (Art.
566; 436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Arts. 569, 588)
b. Right to lease the thing (Art. 572) - - Limitations
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- Liability of usufructuary - lessor (Art. 590)
- Exceptions to right of-leasing the thing
Case: Fabie v. David, 75 Phil. 536
c. Right to improve the thing (Art. 579)
2. As to the legal right of usufruct itself
a. Right to mortgage
right of usufruct (Art. 572)
b. Right to alienate the usufruct, except purely personal usufructs, or when title
constituting it prohibits the same.
H. Obligations of Usufructuary
1. At the beginning of usufruct or before exercising the usufruct
A. to make inventory (Art. 583)
1. Requisites of inventory
i. Immovables described
ii. Movables appraised
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repairs may be made by usufructuary; repairs
usufructuary right (Art. 594, par. 2)
d. To pay for annual charges and taxes on the fruits
Case: Board of Assessment Appeals of Zamboanga del Sur v. Samar
Mining Company, Inc., 37 SCRA 734
e. To notify owner of any act detrimental to ownership (Art. 601)
f. To shoulder the costs of litigation re usufruct (Art. 602)
g. To answer for fault or negligence of alienee, lessee, or agent of usufructuary
(Art. 590)
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b. If he does not rebuild, usufruct continues over remaining
land and/or owner may pay interest on value of both (Art.
607)
c. If owner rebuilds, usufruct does not
continue on new building, but owner must pay interest
on value on land and old materials.
3. When insurance taken by usufructuary only depends on value of
usufructuary's insurable interest (not provided for in Civil Code)
a. Insurance proceeds to usufructuary
b. No obligation to rebuild .
c. Usufruct continues on the land
d. Owner does not share in insurance proceeds
b. If destroyed property is not insured (Art. 607)
1. If building forms part of an immovable under usufruct
a. If owner does not rebuild, usufruct continues over the
land and materials
b. If owner rebuilds, usufructuary must allow owner to
occupy the land and to make use of materials, but value
of both and land and materials.
6. Termination of right of person constituting the usufruct.
7. Prescription
Cases covered: If third party acquires ownership of thing or property in usufruct
or right of ownership lost through prescription or right of usufruct not began
within prescriptive period, or if there is a tacit abandonment or non-user of thing
held in usufruct for required period
8. What do not cause extinguishment of usufruct
a. Expropriation of thing in usufruct (Art. 609)
b. Bad use of thing in usufruct (Art. 810) Owner's right
c. Usufruct over a building (Art. 607, 608) VIII.
EASEMENT OR SERVITUDES
A. Definition - Easements or real servitudes is a real right which burdens a thing with a
presentation consisting of determinate servitudes for the exclusive enjoyment of a person who is not its
owner or of a tenement belonging to another, or, it )s the -real right over an immovable by nature i.e.
land and buildings, by virtue of which the owner of the same has to abstain from doing or to allow
somebody else to do something in his property for the benefit of another thing/ or person.
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servitude (obligation propter rem)
7. Generally, it may consist in the owner of the dominant estate demanding
that the owner of the servient estate refrain from doing something (servitus· in non
faciendo), or that the latter permit that something be done over the servient
property (servitus inpatendo), but not in the right to demand that the owner of the
servient right to demand that the owner of the servient estate do something (
servitus in faciendo) except if such act is an accessory obligation to a praedial
servitude (obligation propter rem).
(Characteristics of easements):
8. It is inherent or inseparable from estate to which they actively or passively belong
(Art. 617)
9. It is intransmissible, i.e., it cannot be alienated separately from the tenement
affected, or benefited.
10. It is indivisible. (Art. 616)
11. It has permanence, i.e., once it attaches, whether used or not, it continues and may
be used at anytime.
C. Classification of Servitudes
1. As to recipient of benefits:
a. Real or Praedial
b. Personal (Art. 614) [But note that under Roman Law, usufruct together
with usus habitatio, and operae servorum were classified as personal
servitudes]
2. As to course or origin:
a. Legal, whether for public use or for the interest of private persons (Art.
634)
b. Voluntary
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Case: North Negros v. Hidalgo, 63 Phil. 664
1. By title-juridical act which give rise to the servitude, e.g. law, donations, contracts
or wills.
Case: Dumangas v. Bishop of Jaro, 34 Phil. 541
a. If easement has been acquired but no proof of existence of easement
available, and easement is one that cannot be acquired by prescription- then
1. May be cured by deed of recognition by owner of
servient estate, or
2. By final judgment
3. Existence of an apparent sign considered a title (Art. 624)
Case: Amor v. Florentino, 74 Phil. 404
2. By prescription
Case: Ronquillo v. Roco, 63 Phil. 86
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c. Servitudes not yet exercised cannot be extinguished by non-user.
H. Legal Easements
1. Law Governing Legal Easements-
a. For public easements
1) special laws and regulations relating thereto, e.g., Pres. Decree
1067, P.D. 705
2) by the provisions of Chapter 2, Title VII, Book II New Civil Code
b. For private legal easements
1) by agreement of the interested parties whenever the law does not
prohibit it and no injury is suffered by a third person
2) by the provisions of Chapter 2, Title VII Book II
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Book III- Different Modes of Acquiring Ownership
Kinds of Tradition:
a. Real Tradition
b. Constructive Tradition
i. Symbolical delivery
ii. Delivery of Public Instrument
iii. Tradition Longa manu
iv. Tradition Brevi manu
v. Tradition Constitutum Possessorium
vi. Quasi-Tradition
vii. Tradition by operation of law
3. OCCUPATION
a. Not applicable to ownership of a piece of land (Art. 714 CC)
b. Privilege to hunt and fish regulated by. special law (Art. 715)
c. Occupation of a swarm of bees or domesticated animals (Art. 716) - see also Art.
560
d. Pigeons and fish (Art. 717)
e. Hidden treasure (Art. 718) see also Arts. 438-439
f. Lost movables; procedure after finding lost movables (Art. 719-720)
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c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings &
broadcasting orgs.
h. Protection of undisclosed information
1. Laws repealed by the Intellectual Property Code (Sec. 239)
DONATION
Note: There must be impoverishment (in fact) of donor's patrimony and enrichment on part
of donee)
2. As to cause or consideration:
a. simple
b. remuneratory
c. onerous- (imposes a burden inferior in to value property donated)
i. improper-burden equal in value to property donated
ii. sub-modo or modal - e.g. imposes a prestation upon donee as to
how property donated will be applied (See: Art. 882 C.C.)
iii. mixed donations, e.g., sale for price lower than value of property
Case: Lagazo v. Court of Appeals, 287 SCRA 24
3. As to effectivity or extinguishment
a. pure
b. conditional (Art. 730, 731)
c. with a term
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b. as to governing rules
c. as to impossible conditions- Art. 727, 1183
IV. Who may not give or receive donations - Art. 735, 737, 738, 741, 742
V. Who may give or receive donations (Art. 736, 739 [1027, 1032], 740, 743, 744)
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inofficious.
Exceptions:
a. donations provided for in marriage settlements
between future spouses (Art. 84, Family Code; Art.
130 C.C.) - not more than l/5 of present property.
b. donations propter nuptias by an ascendant consisting of
jewelry, furniture or clothing not to exceed 1/10 of
disposable portion (Art. 1070)
B. Special provisions
1. Reservation by donor of power to dispose (in whole or in part) or to
encumber property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to another (Art. 756
CC)
3. Conventional reversion in favor of donor or other person (Art. 757)
4. Payment of donor's debt- (Art. 758)
a. If expressly stipulated - donee to pay only debts contracted before
the donation, unless specified otherwise - but in no case shall donee be
responsible for debts exceeding value of property donated, unless clearly
intended. (Art. 272; 1183)
b. If there is no stipulation - Donee answerable only for donor's debt only in case of donation is
in fraud of creditors.
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A. Revocation distinguished from reduction of donations.
B. Causes of Reduction/Revocation
1. Inofficiousness of donation (Art. 752, 771, 773; Art.
911 & 912 also govern reduction
a. Who may ask for reduction (772)
b. Rule applied – If disposable portion not sufficient to cover two or
more donations (Art. 773)
2. Violation of condition
a. Prescription of action
b. Transmissibility of action
XI. Lease
2. Kinds of Leases
a. Lease of things - movables and immovables
b. Lease of work or contract of labor (Arts. 1700-1712)
c. Lease of services
i. household service
ii. contract for a piece of work (Arts. 1713-1731)
iii. lease of services of common carriers (Art. 1732-1763)
3. Lease of Things
a. concept- (Art. 1643)
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b. consumable things cannot be the subject. matter of lease, except; (Art. 1645)
i. consumable only for display or advertising
(lease ad pompam et ostentationem)
ii. goods are accessory to an industrial establishment, e.g. coal in a factory
c. special characteristics of lease of things:
i. essential purpose is to transmit the use and
enjoyment of a thing
ii. consensual
iii. onerous
iv. price fixed in relation to period of use or enjoyment
v. temporary
d. lease distinguished from sale, usufruct, commodatum
e. period of lease - cannot be perpetual
i. definite period - not more than 99 years
ii. indefinite period:
a. rural land (Art. 1682)
b. urban land (Art. 1687)
f. assignment of lease (Art. 1649)
g. sublease (Art. 1650)
i. of House Rental Law (R.A. 877)
ii. obligation of sublessee to lessor (Art. 1651, Art. 1652)
h. Rights and obligations of lessor and lessee:
i. obligations of lessor (Art. 1654, 1661)
ii. obligations of lessee (Art. 1657, 1662, 1663, 1665, 1668, 1667)
iii. right of lessee to suspend payment of rentals (Art. 1658)
iv. Case: Chua Tee Dee (Pioneer Enterprises v. CA, G.R. No. 157568, May 18,
2004
v. right to ask for rescission (Art. 1659, 1660)
vi. lessor not obliged to answer for mere act of trespass ·
by a third person (Art. 1664)
i. Grounds for ejectment of Lessee by Lessor (Art. 1673) (Note the grounds under
the House Rental Law Query. Are they still effective?
j. Right to ask for writ of preliminary mandatory injunction in unlawful
detainer cases (Art. 1674; 539 par. 2)
k. Implied extension of lease (Arts. 1670, 1682, 1687, 1675)
1. Right of purchaser of leased land (Art. 1676, 1677)
m. Useful improvements in good faith made by lessee (Art. 1678)
n. Special provisions for leases of rural lands (Art. 1680-1685)
o. Special provisions for leases of urban lands (Art. 1686-1688)
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