2021 Blue Notes Civil Law

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Ad maiorem Dei gloriam.

GRACE ANN Q. BAJO
TIMOTHY JACOB J. PALAFOX
20 21 C H AI R PE R S O N S
KATHLEEN KAE Z. ENDOZO MEG V. BUENSALIDO

ARISTEO RAPHAEL T. MARBELLA III MARIE KAYLA C. GALIT
20 21 AD MI NI ST R A TI V E CO M MI T TE E HE A D S 20 21 A C AD E MI C C O M MI T TE E HE AD S
CARLOS ROSAURO N. MANALO

MA. CRISTINA ASUNCION JOANNE MARIE VALLES
2021 ACADEMIC COMMITTEE UNDERSTUDIES 20 21 OV E R A LL CI V I L LA W HE AD
ATTY. AMPARITA STA. MARIA DEAN MELENCIO STA. MARIA ATTY. CHRISTINE JOY K. TAN
ATTY. VIVENCIO ABAÑO ATTY. DAN KEVIN C. MANDOCDOC ATTY. TERESA V. TIANSAY
ATTY. ROEL REFRAN ATTY. JESS RAYMUND LOPEZ ATTY. CECILLE MEJIA
ATTY. DANIEL NICHOLAS DARVIN
20 21 CI V I L L A W F A C U LTY A D V I SE R S
KARLA NIZZA BUTIU MA. KRISTINA LOPEZ DE LEON JESSE BRIAN LUI
KAYE DOMINIQUE TONO PIERRE GEOFFREY MACALINO BRIAN KELVIN PINEDA
ANGELICO CALDOZO GE-AN KATHLEENA SALUD IRISH SELENE AQUINO
BIANCA GEORGIA PALOMA
20 21 CI V I L L A W SU B JE C T HE AD S
MARIA EON PEÑAFIEL MARTIN GERARD ERA JEWEL CULALA

NORLENE JAE ANDAYA JOHN DENNHEL CRUZ JAZZMIN BENJAMIN
ALEIX ALCALA RODRICH REY REBOLLOS JESSA ANGELICA LAT
JENNIKA CHUA ANTHONY JEFFERSON JULIO KARISSA S. ENRIQUEZ
SERMAE ANGELA PASCUAL JANINE ESPIRITU
20 21 CI V I L L A W U N D E R S TU D I E S
RACHEL LEIGH COLLADO NADINE ONG JAMES ANDREW ESPIRITU

JEFFREY ABRAZALDO PATRICIA JOY IGNACIO ROSEANNE REALUBIN
CAMILLE BULATAO SAMANTHA ROSE MORALES ISABELLA SABIO
ANA SAMANTHA ISABELA PARUNGAO
20 21 CI V I L L A W V OL U NT E E R S
JONATHAN DF. TORRES
GAEL PAULINE R. MORALES
RIA ALEXANDRA D. CASTILLO
NICOLE ANN C. PAGLICAWAN
JULIANNE BEATRICE N. ROSARIO
20 21 C R E ATI V E S
JOSEPH BILL P. QUINTOS STEFI MONIKA S. SUERO

SAMANTHA J. MAGAOAY KATHLEEN C. ROMINA
FREEDOM JUSTIN B. HERNANDEZ SERMAE ANGELA G. PASCUAL
20 21 TE C H NI CA L 2 02 1 FI N AN CE
AINA RAE L. CORTEZ CHRISTIAN GIO R. SENARLO

LUMINA ALINEA O. AQUINO MAEDEN M. BORCELANGO
ANNA MARIE GRACE M. ANTONIO IMI LIZA B. ESPINA
MARY STEPHANIE CABRERA CRUZ FRANCIS SABIN BELTRAN
CLARISSE MAE D. ZAPLAN ANTHONY JEFFERSON Y. JULIO
20 21 S PE CI AL P R OJ E C TS 20 21 LO GI STI C S
DONN MARIE ISABELLE BALINA MELISSA GABRIELLE P. REMULLA

ALISHA BEATRICE A. VERGARA GRACIELLA RACHEL D. ROBLES
PRISHA LEIGH D. CRUZ DANELLA DIANE D. DIMAPILIS
ALITHEA C. SORIANO REYNALDO M. REVECHE
AARON C. CHENG CZAREANA JOUSCH T. PARRA
20 21 M AR K E TI N G 20 21 PU BLI C R E L A TI ON S
JUSTIN LUIGI V. HERNANDEZ
20 2 0 C HAI R P E R SO N
YVES PETER CARLO D. MEDINA THERESE ANNE C. ESPINOSA

KATRINA ISABELLE G. PIMENTEL HAZEL VIANCA I. ORTEGA
GENICA GALE F. LAHOZ VINCE ZYRENCE T. BARLONGAY
20 2 0 AD MI NI S TR ATI V E CO M MI T TE E HE A D S 20 2 0 HO TE L C O M MI TTE E HE A D S
EUNICE A. MALAYO MEG V. BUENSALIDO

FRANCES CHRISTINE P. SAYSON MARIE KAYLA C. GALIT
20 2 0 A CAD E MI C CO M MI T TE E HE AD S 2 02 0 A CA D E M I C CO M MIT T E E U N D E R S T U DI E S
DEAN MELENCIO STA. MARIA ATTY. ROEL REFRAN

ATTY. AMPARITA STA. MARIA ATTY. DAN KEVIN C. MANDOCDOC
ATTY. TERESA V. TIANSAY ATTY. JESS RAYMUND LOPEZ
ATTY. VIVENCIO ABAÑO ATTY. CHRISTINE JOY K. TAN
20 2 0 CI V I L LA W FA CU L TY AD V I SE R S
ANA BETTINA CARONONGAN MERYL CAYLA GUINTU LORD JAY-EM CUNTAPAY

JAMES LOUIE CUEVAS BERNADETTE LOUISE GUIA ANGELINE PAMELA LEE
KARLA NIZZA BUTIU ALEEZAH GERTRUDE RAYMUNDO ROSEGAIL ABAS
MARIELLA GRACE ALLANIC JUSTIN NICHOLAS SY
20 2 0 CI V I L LA W SU BJE C T HE AD S
ANGELICO CALDOZO GE-AN KATHLEENA SALUD

KAYE DOMINIQUE TONO BIANCA GEORGIA PALOMA
KRISTINE ISABELLE SESPEÑE BRIAN KELVIN PINEDA
JESSE BRIAN LUI MA. KRISTINA LOPEZ DE LEON
PIERRE GEOFFREY MACALINO IRISH SELENE AQUINO
20 2 0 CI V I L LA W U N D E R S TU D I E S
PRAMELA MENGHRAJANI ANGENINE STO. DOMINGO LARAH ANGELA REGIS

HONEYLETTE SANCHEZ DANIELLE ISABELLE NUESA GEOFFREY TUNGOL
ANNA YSABELLE VELUZ BEATRICE MARIE MEDRIANO RAISSA NAVATA
JOHNRICH LOJA ALIYAH DY
20 2 0 CI V I L LA W V O LU N TE E R S
ATENEO CENTRAL
BAR OPERATIONS 2020/21 CIVIL LAW
TABLE OF CONTENTS
GENERAL PRINCIPLES .........................................................................................................................1
A. WHEN LAW TAKES EFFECT ..............................................................................................................1

B. RETROACTIVITY OF LAWS ...............................................................................................................1
C. MANDATORY OR PROHIBITORY LAWS .............................................................................................1
D. WAIVER OF RIGHTS ........................................................................................................................2
E. REPEAL OF LAWS ............................................................................................................................2
F. CONFLICT OF LAWS (PRIVATE INTERNATIONAL LAW) .......................................................................2
I. INTRODUCTION ................................................................................................................................... 2
II. JURISDICTION ..................................................................................................................................... 3
IV. CHOICE OF LAW RULES...................................................................................................................... 9
IV. RECOGNITION AND ENFORCEMENT OF FOREIGN JUDGMENT ....................................................... 17
G. HUMAN RELATIONS (ARTS. 19-22) ................................................................................................ 18
H. APPLICABILITY OF PENAL LAWS..................................................................................................... 20
PERSONS AND FAMILY RELATIONS ................................................................................................... 23
A. PERSONS ..................................................................................................................................... 24
I. KINDS OF PERSONS............................................................................................................................ 24
II. CAPACITY TO ACT ............................................................................................................................. 25
III. DOMICILE AND RESIDENCE OF PERSONS ........................................................................................ 25
B. RIGHTS AND OBLIGATIONS OF COUPLES IN INTIMATE RELATIONSHIPS (REP. ACT NO. 9262) ............ 26
C. MARRIAGE ................................................................................................................................... 27
I. REQUISITES........................................................................................................................................ 27
II. MARRIAGES CELEBRATED ABROAD .................................................................................................. 29
III. FOREIGN DIVORCE........................................................................................................................... 30
IV. VOID MARRIAGES............................................................................................................................ 31
V. VOIDABLE MARRIAGE ...................................................................................................................... 36
VI. UNMARRIED COHABITATION .......................................................................................................... 40
D. LEGAL SEPARATION ...................................................................................................................... 40
I. GROUNDS .......................................................................................................................................... 40
II. DEFENSES ......................................................................................................................................... 40
III. PROCEDURE .................................................................................................................................... 41
IV. EFFECTS OF FILING .......................................................................................................................... 41
V. EFFECTS OF PENDENCY .................................................................................................................... 41
VI. EFFECTS OF DECREE OF LEGAL SEPARATION (ART. 63) ................................................................... 41
VII. RECONCILIATION............................................................................................................................ 42
VIII. EFFECT OF DEATH OF ONE OF THE PARTIES .................................................................................. 42
E. RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE............................................................ 42
F. PROPERTY RELATIONS OF THE SPOUSES......................................................................................... 43
I. MARRIAGE SETTLEMENTS ................................................................................................................. 43
II. DONATIONS BY REASON OF MARRIAGE ........................................................................................... 44
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III. VOID DONATIONS BY THE SPOUSES ................................................................................................ 45

IV. ABSOLUTE COMMUNITY OF PROPERTY .......................................................................................... 47
V. CONJUGAL PARTNERSHIP OF GAINS ................................................................................................ 49
VI. REGIME OF SEPARATION OF PROPERTY .......................................................................................... 55
VII. JUDICIAL SEPARATION OF PROPERTY ............................................................................................ 55
VIII. PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE ................................................................ 56
G. THE FAMILY ................................................................................................................................. 58
I. CONCEPT OF FAMILY ......................................................................................................................... 58
II. EFFECTS ON LEGAL DISPUTES ........................................................................................................... 58
III. FAMILY HOME ................................................................................................................................. 59
H. PATERNITY AND FILIATION ........................................................................................................... 60
I. LEGITIMATE CHILDREN...................................................................................................................... 60
II. PROOF OF FILIATION ........................................................................................................................ 61
III. ILLEGITIMATE CHILDREN ................................................................................................................. 62
IV. ACTION TO IMPUGN LEGITIMACY ................................................................................................... 62
V. LEGITIMATED CHILDREN .................................................................................................................. 63
I. ADOPTION .................................................................................................................................... 66
I. DOMESTIC ADOPTION LAW............................................................................................................... 66
II. LAW ON INTER-COUNTRY ADOPTION .............................................................................................. 68
J. SUPPORT ...................................................................................................................................... 69
I. WHAT IT COMPRISES ......................................................................................................................... 69
II. WHO ARE OBLIGED TO GIVE SUPPORT ............................................................................................. 69
III. SOURCE OF SUPPORT ...................................................................................................................... 70
IV. ORDER OF SUPPORT ........................................................................................................................ 70
V. AMOUNT OF SUPPORT..................................................................................................................... 71
VI. MANNER AND TIME OF PAYMENT .................................................................................................. 71
VII. RENUNCIATION AND TERMINATION.............................................................................................. 71
VIII. SUPPORT PENDENTE LITE.............................................................................................................. 71
IX. PROCEDURE IN APPLICATION FOR SUPPORT .................................................................................. 71
K. PARENTAL AUTHORITY ................................................................................................................. 72
I. GENERAL PROVISIONS....................................................................................................................... 72
II. SUBSTITUTE PARENTAL AUTHORITY ................................................................................................ 73
III. SPECIAL PARENTAL AUTHORITY ...................................................................................................... 73
IV. EFFECT OF PARENTAL AUTHORITY OVER THE CHILD’S PERSON ...................................................... 74
V. EFFECTS OF PARENTAL AUTHORITY OVER THE CHILD’S PROPERTY ................................................. 75
VI. SUSPENSION OR TERMINATION OF PARENTAL AUTHORITY ........................................................... 75
VII. SOLO PARENTS (REP. ACT NO. 8972) .............................................................................................. 75
L. EMANCIPATION ............................................................................................................................ 77
I. CAUSE OF EMANCIPATION ................................................................................................................ 77
II. EFFECT OF EMANCIPATION .............................................................................................................. 77
M. SUMMARY JUDICIAL PROCEEDINGS IN THE FAMILY CODE ............................................................. 78
N. USE OF SURNAME ........................................................................................................................ 80
O. ABSENCE ..................................................................................................................................... 81
I. PROVISIONAL MEASURES IN CASE OF ABSENCE................................................................................ 81
II. DECLARATION OF ABSENCE.............................................................................................................. 81
III. ADMINISTRATION OF THE PROPERTY OF THE ABSENTEE ................................................................ 82
IV. PRESUMPTION OF DEATH ............................................................................................................... 82
P. CIVIL REGISTRAR .......................................................................................................................... 83
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PROPERTY ....................................................................................................................................... 86
A. CLASSIFICATION OF PROPERTY ..................................................................................................... 87

I. IMMOVABLES .................................................................................................................................... 87
II. MOVABLES ....................................................................................................................................... 89
B. OWNERSHIP ................................................................................................................................. 90
I. BUNDLE OF RIGHTS ........................................................................................................................... 90
II. ACTIONS TO RECOVER OWNERSHIP AND POSSESSION OF REAL PROPERTY AND ITS DISTINCTION. 91
III. ACTIONS FOR RECOVERY OF POSSESSION OF MOVABLE PROPERTY............................................... 92
IV. DISTINCTION BETWEEN REAL AND PERSONAL RIGHTS ................................................................... 93
V. LIMITATIONS OF OWNERSHIP .......................................................................................................... 93
C. ACCESSION ................................................................................................................................... 94
I. RIGHT TO HIDDEN TREASURE ............................................................................................................ 94
II. RULES OF ACCESSION ....................................................................................................................... 94
D. QUIETING OF TITLE ..................................................................................................................... 105
I. REQUISITES...................................................................................................................................... 105
II. DISTINCTIONS BETWEEN QUIETING TITLE AND REMOVING/PREVENTING CLOUD........................ 106
III. PRESCRIPTION/NON-PRESCRIPTION OF ACTION .......................................................................... 106
E. CO-OWNERSHIP ...................................................................................................................... 107
I. CHARACTERISTICS OF CO-OWNERSHIP ........................................................................................... 107
II. SOURCES OF CO-OWNERSHIP ........................................................................................................ 107
III. RIGHTS OF CO-OWNERS ................................................................................................................ 107
IV. TERMINATION OF CO-OWNERSHIP............................................................................................... 109
F. POSSESSION ............................................................................................................................... 110
I. CHARACTERISTICS ........................................................................................................................... 110
II. ACQUISITION OF POSSESSION ........................................................................................................ 112
III. EFFECTS OF POSSESSION ............................................................................................................... 113
IV. LOSS OR UNLAWFUL DEPRIVATION OF A MOVABLE ..................................................................... 114
V. POSSESSION IN CONCEPT OF OWNER, HOLDER, IN ONE’S OWN NAME, AND IN NAME OF ANOTHER
........................................................................................................................................................... 116
VI. RIGHTS OF THE POSSESSOR .......................................................................................................... 117
VII. LOSS OR TERMINATION OF POSSESSION ..................................................................................... 119
G. USUFRUCT ................................................................................................................................. 120
II. CLASSIFICATION ............................................................................................................................. 122
III. RIGHTS AND OBLIGATIONS OF USUFRUCTUARY ........................................................................... 122
IV. RIGHTS OF THE OWNER ................................................................................................................ 125
V. EXTINCTION, TERMINATION, AND EXTINGUISHMENT................................................................... 125
H. EASEMENTS ................................................................................................................................... 126
II. CLASSIFICATION ............................................................................................................................. 127
IV. RIGHTS AND OBLIGATIONS OF THE OWNERS OF THE DOMINANT AND SERVIENT ESTATES......... 128
V. MODES OF EXTINGUISHMENT ....................................................................................................... 129
VI. LEGAL V. VOLUNTARY EASEMENT ................................................................................................. 129
VII. KINDS OF EASEMENT ................................................................................................................... 129
I. NUISANCE ................................................................................................................................... 131
I. NUISANCE PER SE ............................................................................................................................ 132
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II. NUISANCE PER ACCIDENS............................................................................................................... 132

III. LIABILITIES ..................................................................................................................................... 133
IV. NO PRESCRIPTION ........................................................................................................................ 133
V. REMEDIES AGAINST PUBLIC NUISANCE ......................................................................................... 133
VI. REMEDIES AGAINST A PRIVATE NUISANCE ................................................................................... 133
VI. CRIMINAL PROSECUTION .............................................................................................................. 133
VII. JUDGMENT WITH ABATEMENT.................................................................................................... 134
VIII. EXTRAJUDICIAL ABATEMENT ...................................................................................................... 134
IX. SPECIAL INJURY TO INDIVIDUAL .................................................................................................... 134
X. RIGHT OF INDIVIDUAL TO ABATE A PUBLIC NUISANCE .................................................................. 134
XI. RIGHT TO DAMAGES...................................................................................................................... 135
XII. DEFENSES TO ACTION .................................................................................................................. 135
XIII. WHO MAY SUE ON PRIVATE NUISANCE ...................................................................................... 135
J. MODES OF ACQUIRING OWNERSHIP ............................................................................................ 135
I. OCCUPATION................................................................................................................................... 135
II. DONATIONS.................................................................................................................................... 136
III. PRESCRIPTION ............................................................................................................................... 142
PRESCRIPTION ............................................................................................................................... 143
A. TYPES OF PRESCRIPTION ............................................................................................................. 144

B. WHEN PRESCRIPTION IS INAPPLICABLE ....................................................................................... 146
C. PRESCRIPTION OR LIMITATION OF ACTIONS ................................................................................ 147
D. INTERRUPTION .......................................................................................................................... 147
E. SPECIAL TOPICS UNDER PROPERTY LAW ...................................................................................... 148
I. AIRSPACE ......................................................................................................................................... 148
II. WATERS .......................................................................................................................................... 148
III. MINERALS...................................................................................................................................... 149
IV. TRADEMARK/TRADENAME ........................................................................................................... 149
V. SUBDIVISION/CONDOMINIUM BUYER’S PROTECTIVE DECREE...................................................... 150
VII. SPECIAL ECONOMIC ZONES – PEZA .............................................................................................. 152
VIII. RECLAMATION – PEA .................................................................................................................. 153
IX. IPRA LAW....................................................................................................................................... 155
SUCCESSION .................................................................................................................................. 158
A. GENERAL PROVISIONS ................................................................................................................ 158

I. DEFINITION...................................................................................................................................... 158
II. SUCCESSION OCCURS AT THE MOMENT OF DEATH ....................................................................... 158
III. KINDS OF SUCCESSORS .................................................................................................................. 159
B. TESTAMENTARY SUCCESSION ..................................................................................................... 160
I. WILLS ............................................................................................................................................... 160
II. INSTITUTION OF HEIRS DEVISEES AND LEGATEES .......................................................................... 174
III. SUBSTITUTION OF HEIRS ............................................................................................................... 177
IV. CONDITIONAL TESTAMENTARY DISPOSITIONS AND DISPOSTIONS WITH A TERM ....................... 179
V. LEGITIME ........................................................................................................................................ 182
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C. LEGAL OR INTESTATE SUCCESSION .............................................................................................. 201

I. GENERAL PROVISIONS..................................................................................................................... 201
II. ORDER OF INTESTATE SUCCESSION................................................................................................ 205
D. PROVISIONS COMMON TO TESTATE AND INTESTATE SUCCESSION ............................................... 210
I. RIGHT OF ACCRETION...................................................................................................................... 210
II. CAPACITY TO SUCCEED BY WILL OR BY INTESTACY ........................................................................ 211
III. ACCEPTANCE AND REPUDIATION OF THE INHERITANCE .............................................................. 215
IV. COLLATION .................................................................................................................................... 217
V. PARTITION AND DISTRIBUTION...................................................................................................... 219
OBLIGATIONS ................................................................................................................................ 224

I. DEFINITION...................................................................................................................................... 224
II. ELEMENTS OF AN OBLIGATION ...................................................................................................... 224
III. SOURCES OF OBLIGATIONS ........................................................................................................... 225
B. NATURE AND EFFECTS OF OBLIGATIONS ...................................................................................... 227
I. DUTIES OF A DEBTOR IN AN OBLIGATION TO GIVE.......................................................................... 227
II. RIGHTS OF A CREDITOR IN AN OBLIGATION TO DO OR NOT TO DO ............................................... 228
III. TRANSMISSIBILITY OF OBLIGATIONS............................................................................................. 228
IV. PERFORMANCE OF OBLIGATIONS ................................................................................................. 228
V. BREACHES OF OBLIGATIONS .......................................................................................................... 229
VI. REMEDIES AVAILABLE TO CREDITOR IN CASES OF BREACH .......................................................... 233
C. KINDS OF OBLIGATIONS .............................................................................................................. 234
I. PURE ............................................................................................................................................... 234
II. CONDITIONAL OBLIGATION ........................................................................................................... 234
III. OBLIGATIONS WITH A PERIOD OR A TERM.................................................................................... 236
IV. ALTERNATIVE OR FACULTATIVE OBLIGATIONS ............................................................................. 239
V. JOINT AND SOLIDARY OBLIGATIONS .............................................................................................. 241
VI. OBLIGATIONS WITH A PENAL CLAUSE ........................................................................................... 245
D. EXTINGUISHMENT OF OBLIGATIONS ........................................................................................... 247
I. PAYMENT OR PERFORMANCE ......................................................................................................... 247
II. LOSS OF DETERMINATE THING OR IMPOSSIBILITY OR DIFFICULTY OF PERFORMANCE ................. 255
III. CONDONATION OR REMISSION OF DEBT ...................................................................................... 256
IV. CONFUSION .................................................................................................................................. 257
V. COMPENSATION ............................................................................................................................ 258
VI. NOVATION .................................................................................................................................... 259
CONTRACTS ................................................................................................................................... 262

I. STAGES OF CONTRACTS................................................................................................................... 262
II. CLASSIFICATIONS ........................................................................................................................... 263
III. ESSENTIAL REQUISITES .................................................................................................................. 264
B. FORMALITY ................................................................................................................................ 272
C. REFORMATION OF INSTRUMENTS ............................................................................................... 274
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D. INTERPRETATION OF CONTRACTS ............................................................................................... 274

E. DEFECTIVE CONTRACTS ............................................................................................................... 275
I. RESCISSIBLE CONTRACTS................................................................................................................. 275
III. UNENFORCEABLE CONTRACTS ...................................................................................................... 279
IV. VOID OR INEXISTENT CONTRACTS ................................................................................................ 280
V. DISTINGUISH: RESOLUTION AND RESCISSION OF CONTRACTS ...................................................... 282
NATURAL OBIGATIONS................................................................................................................... 283
ESTOPPEL ...................................................................................................................................... 284
SPECIAL CONTRACTS ...................................................................................................................... 286
A. SALES......................................................................................................................................... 286
II. PARTIES .......................................................................................................................................... 295
III. OBLIGATION OF THE VENDOR ....................................................................................................... 296
IV. OBLIGATION OF THE VENDEE........................................................................................................ 298
V. TRANSFER OF OWNERSHIP ............................................................................................................ 299
VI. RISK OF LOSS ................................................................................................................................. 301
VII. DOCUMENT OF TITLE ................................................................................................................... 301
VIII. WARRANTIES .............................................................................................................................. 303
IX. BREACH OF CONTRACT ................................................................................................................. 305
X. PERFORMANCE OF OBLIGATION .................................................................................................... 312
XI. EXTINGUISHMENT......................................................................................................................... 313
B. TRUST ........................................................................................................................................ 317
I. DEFINITION...................................................................................................................................... 317
II. KINDS OF TRUST ............................................................................................................................. 318
C. AGENCY ..................................................................................................................................... 322
I. DEFINITION OF AGENCY .................................................................................................................. 322
II. NATURE, FORMS AND KINDS OF AGENCY ...................................................................................... 323
III. OBLIGATIONS OF THE AGENT ........................................................................................................ 331
IV. OBLIGATIONS OF THE PRINCIPAL .................................................................................................. 337
V. MODES OF EXTINGUISHMENT ....................................................................................................... 340
D. COMPROMISE ............................................................................................................................ 341
E. LOAN ......................................................................................................................................... 345
I. LOAN ............................................................................................................................................... 345
II. COMMODATUM............................................................................................................................. 346
III. SIMPLE LOAN................................................................................................................................. 346
IV. INTERESTS ON LOAN ..................................................................................................................... 347
E. DEPOSIT ..................................................................................................................................... 352
F. ANTICHRESIS .............................................................................................................................. 361
G. LEASE ........................................................................................................................................ 363
II. LEASE OF RURAL AND URBAN LANDS ............................................................................................. 363
III. RIGHTS AND OBLIGATIONS OF LESSOR AND LESSEE ..................................................................... 366
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IV. SPECIAL RULES FOR LEASE OF RURAL/URBAN LANDS ................................................................... 370
LAND TITLES & DEEDS .................................................................................................................... 373
A. TORRENS SYSTEM ...................................................................................................................... 373

I. CONCEPT AND BACKGROUND ......................................................................................................... 373
II. CERTIFICATE OF TITLE ..................................................................................................................... 376
B. AGRARIAN TITLES AND ANCESTRAL LAND DOMAINS.................................................................... 379
I. CONCEPT AND REGISTRATION OF AGRARIAN TITLES ...................................................................... 379
II. CONCEPT AND REGISTRATION OF ANCENTRAL LANDS AND DOMAINS ......................................... 381
C. CITIZENSHIP REQUIREMENT ........................................................................................................ 384
I. INDIVIDUALS ................................................................................................................................... 384
II. CORPORATIONS ............................................................................................................................. 384
D. ORIGINAL REGISTRATION ........................................................................................................... 384
I. WHO MAY APPLY............................................................................................................................. 386
II. REGISTRATION PROCESS AND REQUIREMENTS ............................................................................. 388
III. REMEDIES ...................................................................................................................................... 397
IV. CADASTRAL REGISTRATION .......................................................................................................... 404
E. SUBSEQUENT REGISTRATION ...................................................................................................... 411
I. VOLUNTARY DEALINGS ................................................................................................................... 412
II. INVOLUNTARY DEALINGS ............................................................................................................... 415
F. NON-REGISTRABLE PROPERTIES .................................................................................................. 419
TORTS............................................................................................................................................ 424
A. PRINCIPLES ................................................................................................................................ 424

I. ABUSE OF RIGHT; ELEMENTS........................................................................................................... 424
II. UNJUST ENRICHMENT .................................................................................................................... 424
III. LIABILITY WITHOUT FAULT ............................................................................................................ 425
IV. ACTS CONTRARY TO LAW .............................................................................................................. 430
V. ACTS CONTRARY TO MORALS ........................................................................................................ 430
B. CLASSIFICATION OF TORTS .......................................................................................................... 431
I. ACCORDING TO MANNER OF COMMISSION ................................................................................... 431
II. ACCORDING TO SCOPE ................................................................................................................... 431
C. THE TORTFEASOR ....................................................................................................................... 432
I. DIRECT TORTFEASOR ....................................................................................................................... 432
II. JOINT TORTFEASORS ...................................................................................................................... 432
III. PERSONS MADE RESPONSIBLE FOR OTHERS ................................................................................. 433
D. PROXIMATE CAUSE .................................................................................................................... 441
I. CONCEPT ......................................................................................................................................... 441
II. EFFICIENT INTERVENING CAUSE..................................................................................................... 441
III. CAUSE IN FACT .............................................................................................................................. 442
IV. CAUSE AS DISTINGUISHED FROM CONDITION .............................................................................. 443
V. LAST CLEAR CHANCE ...................................................................................................................... 444
E. LEGAL INJURY ............................................................................................................................. 444
CONCEPT OF LEGAL INJURY ...................................................................................................................... 444
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F. INTENTIONAL TORTS ................................................................................................................... 445

I. GENERAL ......................................................................................................................................... 445
II. INTERFERENCE WITH RIGHTS TO PERSONS AND PROPERTY .......................................................... 445
III. INTERFERENCE WITH RELATIONS .................................................................................................. 449
G. NEGLIGENCE .............................................................................................................................. 450
I. CONCEPT ......................................................................................................................................... 450
II. GOOD FATHER OF A FAMILY OR REASONABLY PRUDENT PERSON ................................................ 450
III. STANDARD OF CARE; EMERGENCY RULE....................................................................................... 450
IV. UNREASONABLE RISK OF HARM ................................................................................................... 451
V. EVIDENCE ....................................................................................................................................... 451
VI. PRESSUMPTION OF NEGLIGENCE ................................................................................................. 452
VII. DEFENSES ..................................................................................................................................... 454
H. SPECIAL LIABILITY IN PARTICULAR ACTIVITIES .............................................................................. 456
I. IN GENERAL; CONCEPTS .................................................................................................................. 456
II. PRODUCTS LIABILITY; MANUFACTURERS OR PROCESSORS ........................................................... 457
III. NUISANCE...................................................................................................................................... 458
IV. VIOLATION OF CONSTITUTIONAL RIGHTS; VIOLATION OF CIVIL LIBERTIES................................... 459
V. VIOLATION OF RIGHTS COMMITTED BY PUBLIC OFFICERS ............................................................ 460
VI. PROVINCES, CITIES AND MUNICIPALITIES ..................................................................................... 460
VII. OWNER OF MOTOR VEHICLE ....................................................................................................... 460
VIII. PROPRIETOR OF BUILDING OR STRUCTURE OR THING ............................................................... 461
IX. HEAD OF FAMILY ........................................................................................................................... 461
X. VIOLATIONS OF DATA PRIVACY ...................................................................................................... 461
I. STRICT LIABILITY .......................................................................................................................... 462
I. ANIMALS; POSSESSOR AND USER OF AN ANIMAL ........................................................................... 462
II. NUISANCE....................................................................................................................................... 462
III. PRODUCTS LIABILITY; CONSUMER ACT ......................................................................................... 462
DAMAGES ...................................................................................................................................... 464
A. GENERAL CONSIDERATIONS ....................................................................................................... 464

I. CLASSIFICATION .............................................................................................................................. 464
III. WHEN RECOVERABLE .................................................................................................................... 470
B. DAMAGES IN CASE OF DEATH...................................................................................................... 472
C. GRADUATION OF DAMAGES ....................................................................................................... 473
I. DUTY OF INJURED PARTY................................................................................................................. 473
II. RULES ............................................................................................................................................. 473
viii
GENERAL
PRINCIPLES
Civil Law
ATENEO CENTRAL
A. WHEN LAW TAKES EFFECT

GENERAL PRINCIPLES When the Laws Become Effective
General Rule: Fifteen (15) days after completion
of publication in Official Gazette or a newspaper
TOPIC OUTLINE UNDER THE SYLLABUS
of general circulation. (Art. 2)
A. WHEN LAW TAKES EFFECT
Exception: The law can provide for its own date
of effectivity and manner of publication. An
B. RETROACTIVITY OF LAWS
immediate effectivity clause does not preclude
the requirement of publication.
C. MANDATORY OR PROHIBITORY
LAWS
Mandatory Publication
Publication is mandatory and must be in full
D. WAIVER OF RIGHTS
(otherwise, it is not deemed published at all) since
its purpose is to inform the public of its contents.
E. REPEAL OF LAWS
Compliance with the Law

F. CONFLICT OF LAWS
Ignorance of the law excuses no one from
I. Introduction (In General)
compliance therewith (Ignorantia legis non
II. Jurisdiction
excusat). (Art. 3)
III. Principles on Choice of Law
Note: Applies only to mandatory and prohibitory
IV. Choice of Law Rules
laws (Consunji v. CA, G.R. 137873, 2001).
V. Recognition and Enforcement of
Foreign Judgment
B. RETROACTIVITY OF LAWS
G. HUMAN RELATIONS General Rule: Laws are not retroactive. (Art. 4)
Exceptions: (PIERCER)
H. APPLICABILITY OF PENAL LAWS 1. Penal laws when favorable to the accused
who is not a habitual delinquent or recidivist
Civil Law – branch of law that regulates relations 2. Interpretative statutes
of assistance, authority and obedience among 3. When the law itself Expressly provides
family members as well as members of a society
for the protection of private interests Exceptions to the exception:
i. Ex post facto law
New Civil Code: took effect on August 30, 1950 ii. When retroactivity impairs the obligations of
contracts
iii. Bills of Attainder
i. Remedial statutes
ii. Curative statutes
iii. Emergency laws
iv. Laws creating new substantive Rights
C. MANDATORY OR PROHIBITORY LAWS

General Rule: Acts executed against the
provisions of mandatory or prohibitory laws shall
be void. (Art. 5)
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Exception: If the law expressly provides for the E. REPEAL OF LAWS

validity of acts committed in violation of a Repeal of Laws (Art. 7)
mandatory or prohibitory provision of a statute. 1. Express repeal - repeal of the repealing law
will not revive the old law (unless expressly
D. WAIVER OF RIGHTS provided).
Right - A legally enforceable claim of one person 2. Implied repeal - the provisions of the
against another, that the other shall do a given subsequent law are incompatible with those
act, or shall not do a given act. of the previous law.
Kinds of rights Requisites:

a. Natural Rights – Those which grow out of 1. Both laws cover the same subject matter.
the nature of man and depend upon 2. The latter law is repugnant to the earlier law.
personality. Example: right to life, liberty,
privacy, and good reputation. ————- end of topic ————-
b. Political Rights – Consist in the power to
participate, directly or indirectly, in the E. REPEAL OF LAWS
establishment or administration of Repeal of Laws (Art. 7)
government. Example: right of suffrage, right (b) Express repeal - repeal of the
to hold public office, right of petition. repealing law will not revive the
c. Civil Rights– Those that pertain to a person old law (unless expressly
by virtue of his citizenship in a state or provided).
community. Example: property rights, (c) Implied repeal - the provisions
marriage, equal protection of laws, freedom of the subsequent law are
of contract, trial by jury. incompatible with those of the
1. Real rights – enforceable against the previous law.
whole world (absolute rights) Requisites:
2. Personal rights – enforceable against a 1. Both laws cover the same subject matter.
particular individual (relative rights) 2. The latter law is repugnant to the earlier law.
General Rule: Rights may be waived. (Art. 6) ————- end of topic ————-
Requisites of a valid waiver: (Herrera v. F. CONFLICT OF LAWS (PRIVATE

Borromeo) INTERNATIONAL LAW)
1. Existence of a right
2. Knowledge of the existence of such right I. INTRODUCTION
3. An intention to relinquish the right Private International Law or Conflict of Laws -
that part of the municipal law of the state, which
Exceptions: When waiver is directs its courts and administrative agencies,
i. Contrary to law, public order, public policy, when confronted with a legal problem involving a
morals, good customs (e.g. waiver of future foreign element, whether or not they should apply
inheritance, political rights, future support) foreign laws.
ii. Prejudicial to a third person with a right
recognized by law. Foreign Element – a factual situation that cuts
across territorial lines and is affected by the
diverse laws of two or more states. (Saudi
Arabian Airlines v. Court of Appeals, G.R. No.
122191, 1998)
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Private International Law is not a separate, a. Codification a. Customs

distinct branch of law; nor is it a mere part of Civil s b. Treatises
Law but rather it traverses and concerns almost b. Special c. Principles
every department of law. Legislation of law
c. Multilateral recognize
Threefold Functions of Private International Treaties and d by
Law (CJS) International civilized
Sources
1. Prescribe conditions under which a court or Conventions nations
agency is Competent to entertain a suit or d. Bilateral d. Judicial
proceeding involving facts containing a Treaties Decision
foreign element; e. Case Law e. Teaching
2. Specify circumstances under which foreign f. International s of the
Judgment will be recognized as valid and Custom most
binding in the forum; and g. Constitution highly
3. Determine for each class of cases the qualified
particular System of law by reference to publicists
which the rights of parties must be
ascertained. II. JURISDICTION
Three Stages in Judicial Resolution Of
Difference Between Private (PRIL) and Public Conflict Problems
International Law (PIL) 1. Jurisdiction
2. Choice of law
Public international law (PIL) - the law that 3. Recognition and enforcement of judgments
regulates the relations of States and other entities (Raytheon International v. Rouzie, G.R. No.
possessing international personality. 162894, 2008)
BASIS PrIL PIL Major Questions in Analyzing a Conflict of

Municipal or International Laws Problem
Nature
national in in character 1. Jurisdiction - where can or should litigation be

character initiated?
2. Choice of law - which law will the court apply?
Private Generally 3. Recognition and enforcement of foreign
Transactions Involved
transactions affected by judgments - where can the resulting judgment

between public be enforced? (Hasegawa vs. Kitamura, G.R.
individuals interest, or No. 149177, 2007)
those that are
of interest Jurisdiction Over the Subject Matter
only to • Power to hear and determine cases of
sovereign general class to which the proceedings in
states question belong.
Resort to May be • It is conferred by the sovereign authority,
Sanctions
Remedies
municipal peaceful or which organizes the courts and defines it

and
tribunals forcible powers.

• Jurisdiction over subject matter is fixed by law
and cannot be conferred by consent of the
parties or their voluntary submission. (Davao
Light v. Court of Appeals, G.R. No. 111685
2001)
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• To succeed in its motion for the dismissal of reasonable basis for exercising it. To be
an action for lack of jurisdiction over the reasonable, the jurisdiction must be based on
subject matter of the claim, the movant must some minimum contacts that will not offend
show that the court or tribunal cannot act on traditional notions of fair play and substantial
the matter submitted to it because no law justice. (HSBC v. Sherman, G.R. No. 72494,
grants it the power to adjudicate the claims. 1989)
(Hasegawa vs. Kitamura, G.R. No. 149177,
2007) A casual presence of a corporation or its agent in
a state in single or isolated incidents is not
Jurisdiction Over Persons enough to establish jurisdiction. The activities of
It is the competence of a court to render decision its agents in transacting business for the
that will bind the parties to the suit. corporation in the forum state are minimum
contacts that make it reasonable and in
Jurisdiction Over the Res conformity with the due process clause. The
It is the jurisdiction over the subject matter of the activities of the corporation in the state were
controversy, regardless of the persons who may systematic and continuous rather that irregular or
be interested therein. It may be classified as casual, which resulted in large volume interstate
follows: business. The corporation received the benefits
(a) Action in Rem – purpose is to affect the and protection of the laws of the state, and
interests of all persons in a thing, thus the therefore established the minimum contacts to be
court of the forum may render judgment as under their jurisdiction. (International Shoe Co. v.
long as it has jurisdiction over the res. Washington, 326 U.S. 310, 1945)
(b) Quasi in Rem – purpose is to affect interests
of particular persons in a thing, thus the court Foreign Corporations Doing Business
of the forum may render judgment as long as Doing business implies a continuity of
it has jurisdiction over said persons. commercial dealings, and contemplate to that
(c) Action in Personam – purpose is to impose extent the performance of acts, or the exercise of
personal liability upon the defendant some of the functions normally incident to and in
progressive prosecution of commercial gain or of
Note: In all kinds of jurisdiction, due process the purpose and object of the business
requires that the State must have a reasonable organization. The following acts shall not be
basis for exercising jurisdiction; to be reasonable deemed “doing business” in the Philippines:
the jurisdiction must be based on some minimum (a) Mere investment as a shareholder by a
contacts that will not offend traditional notions of foreign entity in domestic corporations duly
fair play and substantial justice (Salonga, Private registered to do business, and/or the exercise
International Law, p. 44, 1995). of rights as such investor;
(b) Having a nominee director or officer to
Minimum Contacts represent its interests in such corporation;
The concept of minimum contacts protects the (c) Appointing a representative or distributor
defendant against the burdens of litigating in a domiciled in the Philippines which transacts
distant or inconvenient forum and it acts to ensure business in the representative’s or
that the States, through their courts, do not reach distributor’s own name and account;
out beyond the limits imposed on them by their (d) The publication of a general advertisement
status as coequal sovereigns. (World-Wide through any print or broadcast media;
Volkswagen Corporation v. Woodson, 1980) (e) Maintaining a stock of goods in the
Philippines solely for the purpose of having
One basic principle underlies all rules of the same processed by another entity in the
jurisdiction in international law, a state does not Philippines;
have jurisdiction in the absence of some
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(f) Consignment by a foreign entity of equipment clause, said clause does not operate to deny or
with a local company to be used in the divest jurisdiction from the State. (HSBC v.
processing of products for export; Sherman, G.R. No. 72494, 1989).
(g) Collecting information in the Philippines; and
(h) Performing services auxiliary to an existing Specifically, this jurisdiction only refers to the
isolated contract of sale which are not on a court’s jurisdiction over the subject matter in a
continuing basis, such as installing in the judicial proceeding. It is fixed by law and
Philippines machinery it has manufactured or determined by the allegations of the complaint
exported to the Philippines, servicing the irrespective of whether the plaintiff is entitled to all
same, training domestic workers to operate it, or some of the claims asserted therein.
and similar incidental services. (Sec.1, IRR of (Hasegawa vs. Kitamura, G.R. No. 149177,
Foreign Investments Act) 2007)
Service of Summons on Foreign Corporations Although venue may be changed or transferred

Service may be made on a foreign corporation from one province to another by agreement of the
which has transacted or is doing business in the parties in writing, such an agreement will not be
Philippines on its resident agent designated in held valid where it practically negates the action
accordance with law for that purpose, or, if there of the claimants. (Sweet Lines, Inc. v. Teves, G.R.
be no such agent, on the government official No. L-37750, 1978)
designated by law to that effect, or on any of its
officers, agents, directors or trustees within Three Ways of Disposing Conflict of Law
the Philippines. Cases
If the foreign private juridical entity is not 1. Dismiss the case, either because of:
registered in the Philippines, or has no resident (a) Lack or jurisdiction;
agent but has transacted or is doing business in (b) Refusal to assume jurisdiction over the
it, as defined by law, such service may, with leave case on the ground that the controversy
of court, be effected outside of the Philippines may be suitably tried elsewhere (forum
through any of the following means: non conveniens); or
(a) By personal service coursed through the (c) Act of State doctrine
appropriate court in the foreign country with ▪ Except: Violation of
the assistance of the department of foreign International Law principle
affairs; 2. Assume jurisdiction over the case and apply
(b) By publication once in a newspaper of internal law of the forum (lex fori); or
general circulation in the country where the 3. Assume jurisdiction over the case and take
defendant may be found and by serving a into account or apply the law of some other
copy of the summons and the court order by State (Salonga, p. 44).
registered mail at the last known address of
the defendant; Test to Determine Most Convenient Forum
(c) By facsimile; A Philippine court in a conflict-of-laws case may
(d) By electronic means with the prescribed proof assume jurisdiction if it chooses to do so,
of service; or provided, that:
(e) By such other means as the court, in its 1. The forum is one to which the parties may
discretion, may direct (Revised Rules on Civil conveniently resort to;
Procedure, Rule 14, Sec. 14 A.M. No. 19-10- 2. The forum is in the position as to make an
20-SC) intelligent decision as to the law and the facts;
and
Choice of Forum 3. The forum has or is likely to have power to
While the parties are free to select the forum for enforce its decision (Principle of
resolving disputes by way of a choice of forum
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Effectiveness). (The Manila Hotel Proof of Written Foreign Law

Corporation v. NLRC, GR No. 120077, 2000) Written law may be evidenced by:
(a) An official publication; or
Act of State Doctrine (b) A copy attested by the officer having legal
Courts will not inquire into the validity of acts of a custody of the record, or by his deputy.
foreign government done within its own territory.
Every sovereign state is bound to respect the Note: If the record is not kept in the Philippines,
independence of every other sovereign state. the proponent of the foreign law must also submit
(French v. Banco Nacional de Cuba, 23 N.Y.2d a certificate that such officer has the custody of
46,1968) the record.
The certificate may be made by any of the
III. PRINCIPLES ON CHOICE OF LAW following officers and must be authenticated by
the seal of his office:
Choice of law - deals with the problem that arises (a) Secretary of the embassy or legation
when two or more states have a connection to (b) Consul general
cases about which their respective laws differ. (c) Consul
Each court must then choose which laws to apply (d) Vice consul
based on choice of law rules that themselves rest (e) Consular agent
on public policy. (f) Any officer in the foreign service of the
Philippines stationed in the foreign country in
Choice of Law seeks to answer two important which the record is kept. (Rules of Court,
questions: Rule 132, Sec. 24)
1. What legal system should control a given
situation where some of the significant facts Proof of Unwritten Foreign Law
occurred in two or more states; and The following are admissible:
2. To what extent should the chosen legal 1. The oral testimony of expert witnesses; and
system regulate the situation (Saudi Arabian 2. Printed and published books of reports of
Airlines v. CA, GR No. 122191, 1998). decisions of the courts of the State concerned
if proved to be commonly admitted in such
Application of Internal Law courts. (Wildvalley Shipping Co., Ltd. v. CA,
Three Instances when the Forum Must Apply GR No. 119602, 2000)
Internal Law
1. When the application of internal law is Exceptions: The strict rules of evidence to prove
decreed; foreign law do not apply in: (LECION)
2. Where there is failure to plead and to prove 1. Election cases,
foreign law; and 2. Land registration,
3. Where the case involves any of the 3. Cadastral,
exceptions to the application of foreign law. 4. Naturalization and
5. Insolvency proceedings, and
Application of Foreign Law 6. Other cases not herein provided for, except
Proof of Foreign Law by analogy or in a suppletory character and
In the Philippine jurisdiction, it is settled that whenever practicable and convenient. (Rules
foreign law must be treated as a fact that must be of Court, Rule 1, Sec. 4)
pleaded and proved by the party invoking it.
Foreign law may either be: Doctrine of Processual Presumption
(a) Written; or Where the foreign law is not properly pleaded or
(b) Unwritten. proved, the presumption of identity or similarity
arises, i.e., the foreign law is the same as the
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domestic law. (EDI-Staffbuilders International v. law case while the foreign law is limited to the
NLRC, 2007) substantive aspects.
Exception: Prescription of actions is sui generis
Exceptions to the application of foreign law in conflict of laws.
(PIMP-A-VIP)
i. Enforcement of the foreign law would run It may be viewed either as procedural or
counter to an important Public policy substantive, depending on the characterization
ii. Application of foreign law would infringe good given such a law.
Morality as understood in the forum Exception to the Exception: The
iii. When the foreign law is Penal in nature characterization of a statute of limitation becomes
iv. Where the foreign law is Procedural in nature irrelevant when the country of the forum has a
v. When the question involves Immovable "borrowing statute.”
property in the forum
vi. When the foreign law is fiscal or Borrowing Statute – directs the State of the
Administrative in nature forum to apply the foreign statute of limitations to
vii. Where the application of foreign law would the pending claims based on a foreign law. In
involve Injustice or injury to the citizens or short, it has the practical effect of treating the
residents in the forum foreign statute of limitation as one of substance
viii. Where the application of foreign law would
endanger Vital interests of the State of the An example is Section 48 of the Philippine Code
forum. of Civil Procedure, which provides that, “If by the
laws of the state or country where the cause of
Note: The courts of the forum will not enforce any action arose the action is barred, it is also barred
foreign claim (or statute) obnoxious to the forum's in the Philippines Islands.” (LWV Construction v.
public policy. Dupo, G.R. No. 172342, July 13, 2009)
Thus, in Cadalin v. POEA, the Court ruled that Exception to the Exception to the Exception:
even if Bahrain’s Amiri Decree No. 23 prescribes The Court of the forum will not enforce any foreign
a one-year prescriptive period for labor benefits claim obnoxious to the forum’s public policy.
claimed by the Filipino petitioners, to enforce
such foreign law as regards the claims in question Nature of Conflict of Law Rules
would contravene the Philippine’s public policy on Distinguish Internal Rule from Conflict Rule
the protection of labor. as to their Legal Effects
INTERNAL RULE CONFLICT RULE
A foreign law, stating that a parent is not obliged Immediately solves Decides only which
to support the child, does not find applicability in the question raised law or jurisdiction will
our jurisdiction when such is contrary to an whether the particular give the final solution
established public policy of the forum. Prohibitive act is allowed,
laws concerning persons, their acts or property, commanded or
and those which have for their object public order, prohibited
public policy and good customs shall not be
rendered ineffective by laws or judgments Two Parts of a Conflict of Law Rule
promulgated, or by determinations or conventions 1. Factual Situation – takes the form of factual
agreed upon in a foreign country. (Del Socorro, v. events or operative facts; and
Van Wilsem, GR No. 193707, 2014) 2. Point of Contact or Test Factor –
prescribes the municipal law to which the
Rule on Procedural Laws question should referred or connected
General Rule: The forum applies its own
procedural law (lex fori) in resolving a conflicts of
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Example: Article 16 of the Civil Code may be (b) Transmission – reference is made to a third
divided as follows: State
1. Real property as well as personal property
(Factual Situation) Theories to Solve Renvoi Problem
2. Is subject to the law of the country where it is (a) Rejection of Renvoi – the reference of the
situated (or the situs of the res) (Point of matter for judgment is confined exclusively to
Contact) the internal law of the other State.
Points of Contact (DRONS-SAFES-IF) (b) Acceptance of Renvoi – reference is to the

1. Domicile, Residence, place of Origin, entirety, including the conflicts rule of the
Nationality, or place of Sojourn of a person; other State; and if the State of the forum finds
2. Seat of a legal or juridical person; that the matter is referred back to it, the court
3. Locus Actus or the place where an act has might conclude that the reference to the other
been done; State has not provided a direct solution, in
4. Lex Fori or the place where judicial or such case, the court might accept the
administrative proceedings are instituted or reference and apply its own internal law
done; (remission) or the laws of the third State
5. Place where an act is intended to come into (transmission).
Effect • Also called single renvoi.
6. Situs of a thing or the place where a thing is,
or is deemed to be situated. (c) Desistment or Mutual Disclaimer of
7. Lex loci Intentionis or the intention of the Jurisdiction – reference is also to the
contracting parties as to the law that should entirety, including the conflicts rule of the
govern their agreement; other State; and if the State of the forum finds
8. Flag of a ship (Saudi Arabian Airlines v. CA, that the matter is referred to back to it, the
G.R. No. 122191, 1998) court might conclude that the other State has
no rule of law applicable to the situation, in
Characterization - process of assigning a such case, the court left is with no other
disputed question to its correct legal category alternative but to apply its own internal law.
Stages of Characterization (d) Foreign Court Theory – the law to be

1. Classification of the problem (e.g. applied by the court of the forum is that law
whether the question relates to contracts, the court of the State referred would have
property, torts, succession etc). applied.
• Double renvoi may arise, i.e., the court
Note: As a matter of convenience, the of the forum, in applying the foreign
classification should be determined in court theory, finds that the referred
accordance with the law of the forum. State accepts the renvoi. In which
2. Determination of foreign law based on case, the court of the forum shall
point of contact test therefore apply what the court of the
3. Selection, extent of application of the State referred would have applied.
proper law • Example: X was a citizen of State B but
domiciled in State C. A left immovables
Renvoi - a method of disposing a conflict problem in State B. As the courts of State B
by referring a matter for judgment or follows the foreign court theory, it will
consideration to another State. therefore decide the case exactly as
Types of Renvoi State C will decide.
(a) Remission – reference is made back to the
law of the forum
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- Assuming that State B’s court Elements of a Conflict Of Laws Problem as to

determines that State C’s court Immovables: (C-FEI)
would have referred the matter to 1. There is a dispute over the title or
State B’s internal laws alone, State B ownership of an immovable, such that
would therefore apply its own (State the:
B’s) internal laws as State B would. (a) Capacity to take and transfer
(No renvoi in this scenario) immovables,
- Assuming however that the State B’s (b) Formalities of conveyance,
court determines that State C’s court (c) Essential validity and effect of
would have referred the matter to the transfer, or
State B’s laws in its entirety; Then (d) Interpretation and effect of a
State C would have found that State conveyance, are to be
B’s conflict rules refers the matter determined; and
back to State C’s again or a third 2. A foreign law on land ownership and its
State; Thus, State C, which adopts conveyance is asserted to conflict with
the acceptance of the renvoi theory, a domestic law on the same matters.
would have therefore applied its own Hence, the need to determine which
laws or that of the third State. The law should apply.
court of the forum, State B, thus
decides the case the way State C Exception To The Lex Situs Rule As To
would. Immovables: (SCOFT)
i. Succession - capacity to succeed, order
IV. CHOICE OF LAW RULES of succession, amount of successional
PROPERTY rights and intrinsic validity of
Lex situs rule - the Civil Code gives exclusive testamentary provisions, shall be
importance to the lex situs, regardless of the regulated by the national law of the
nature of the property; thus, it provides that real person whose succession is under
property as well as personal property is subject to consideration, whatever may be the
the law of the country where situated. (Art.16) nature of the property. (Arts. 16 and
1039)
Immovables ii. Parties’ Contractual Obligations -
Scope of Lex Situs Rules as to Immovables where the issue involves the rights and
(a) Capacity to take and transfer immovables; liabilities of the parties inter se as a
Exception: Lex rei sitae is not applicable matter of contractual obligation, even
where the issue is the authority of a State though the subject matter of the contract
official to validly dispose of property is the land, the governing law is the law
belonging to the State and the validity of the that regulates the contract as a whole.
procedures adopted to effect its sale. (Laurel iii. Principal Obligation Secured - validity
v. Garcia, G.R. No. 92013, 1990). and effect of the principal obligation,
(b) Formalities of conveyance; which the encumbrance secures are
(c) Essential validity and effect of the transfer; determined by principles applicable to
(d) Interpretation and effect of conveyance; contracts in general.
(e) Validity and effect of mortgages and other iv. Contract to Transfer - while the validity
encumbrances; of the transfer of immovable is governed
(f) Marital interest in land; and by the lex situs rule, the validity of the
(g) Equitable interest in land contract to transfer is determined by the
proper law of the contract.
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v. When the property within the situs states whose nationality he possesses (Hague
belongs to a Foreign State. (Holy See v. Convention on Conflict of Nationality Laws, Art.
Rosario, G.R. No. 101949, 1994) 3).
PERSONAL LAW, NATIONALITY AND Modes of Acquisition of Nationality

DOMICILE (BiNCReS)
Personal Law (a) Birth (either Jus Sanguinis or Jus Soli)
Also known as statuta personal refers to laws that (b) Naturalization – grant of citizenship upon
concern persons, their legal condition and civil application by some act which would qualify
status. an individual for a new nationality.
(c) Repatriation – recovery of original nationality
Two Approaches to Determine Personal Law upon fulfillment of certain conditions.
1. Nationality (d) Subjugation – when a State is defeated or
2. Domicile conquered, all the citizens acquire the
nationality of the conquering State.
Nationality (e) Cession – when a State has been ceded in
Refers to a personal and more or less permanent another State, all the people of the territory
membership in a political community. acquire the nationality of the State in which
their territory has been merged.
Under the conflicts rules of the Civil Code, the
national law of an individual regulates his civil Modes of Losing Nationality (ReDRES)
status and condition, his family rights and duties, (a) Release – a citizen may apply for release
the intrinsic validity of his will and the rights of from citizenship of his State.
succession to his properties (Arts. 15, 16 par. 2 (b) Deprivation – the State concerned may
and 1069). deprive their citizens of nationality.
Example; the Philippines may deprive their
Determination of Nationality citizens of nationality upon entry into the
As a rule, each State is free to determine by its military service of a foreign power.
own municipal law the persons it considers as its (c) Expiration – of nationality may result from a
nationals. Thus, any question as to whether a long stay abroad without any indication of a
person is a national of particular State shall be desire to return.
determined by the municipal law of that State. (d) Renunciation – a person may repudiate his
(Hague Convention on Conflict of Nationality nationality in favor of another.
Laws in 1930, Art. 2). (e) Substitution – loss of nationality ipso facto by
naturalization abroad or by marriage.
Who are Filipino citizens: (AFEN)
(a) Those who are citizens of the Philippines at Instances when Dual or Multiple Nationalities
the time of the Adoption of this Constitution; Arise:
(b) Those whose Fathers or mothers are citizens 1. Concurrent application of jus soli and jus
of the Philippines; sanguinis at birth;
(c) Those born before January 17, 1973, of 2. Refusal of certain States to accept a full
Filipino mothers, who Elect Philippine application of the doctrine of expatriation;
citizenship upon reaching the age of majority; 3. Marriage; or
and 4. Any formal or voluntary act of the individual.
(d) Those who are Naturalized in accordance
with law (Phil. Const., Art. IV, Sec. 1) Note: If the litigation arises in a third country, the
forum may recognize exclusively in its territory
Note: A person having two or more nationalities the nationality of the State with which under the
may be regarded as a national by each of the circumstances he appears to be in fact most
Page 10 of 474
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closely connected (Hague Convention on

Conflict of Nationality Law, Art. 5). Importance of Domicile in the Philippines
1. Inadequacy of nationality principle in
Special Treatments affecting Nationality of determining personal law of:
Persons in Mixed Marriages involving • Stateless persons,
Filipinos • Persons of multiple nationality, and
Foreign woman married to a Filipino - • Persons belonging to countries of
becomes ipso facto a Filipino provided she is not composite system of law on territorial
disqualified to be a citizen of the Philippines under basis
its naturalization law. 2. Personal status of individuals from States
following the domiciliary principle may be the
However, to settle the matter of the wife’s subject of litigation in the Philippines;
citizenship once and for all, the Court deemed it 3. Occasional reference by Philippine law to the
proper to adopt the procedure followed in the lex domicilii in determining the validity of
Bureau of Immigration, to wit: certain acts.
Example:
The wife must file a petition for the cancellation 1. Formal validity of a will (Art. 816) or
of her alien certificate of registration alleging, 2. Revocation of a will outside the
among other things that: Philippines (Art. 829)
1. She is married to a Filipino citizen; and
2. She is not disqualified from acquiring her Basic Principles of Domicile
husband's citizenship pursuant to the 1. Every person must have a domicile.
Naturalization Law, as amended. 2. A person cannot have two simultaneous
3. Upon the finding that that the petitioner does domiciles.
not belong to any of the groups disqualified 3. Every natural person, as long as he is free
from becoming naturalized Filipino citizen, and sui juris, may change his domicile.
the Bureau of Immigration shall conduct an 4. A domicile once acquired is retained unless a
investigation and thereafter promulgate its new one is obtained.
order or decision granting or denying the 5. The presumption is in favor of the
petition. continuance of an existing domicile.
• Thus, the burden of proof is on the
If granted, the Commissioner of Immigration shall one who alleges that a change of
cancel the petitioner's registration as an alien (Mo domicile has taken place.
Ya Lim Yao v. CIR, G.R. No. L-21289, 1971).
Law which determines Domicile
Filipinos married to aliens – retain their The forum determines domicile according to its
citizenship unless by their act or omission they own standards.
are deemed under the laws to have renounced
their citizenship (1987 Phil. Const., Art. IV, Sec. Kinds of Domicile
4). 1. Domicile of Origin – the domicile of a
person’s parents at the time of his birth.
Domicile 2. Constructive Domicile – the domicile
1. In other jurisdictions, domicile serves as the established by law after birth in case of
necessary connection to determine an persons under legal disability, regardless of
individual’s personal law. their intention or voluntary act.
2. It is the place with which a person has a 3. Domicile of Choice – is the place voluntarily
settled connection for legal purposes, either chosen by a person sui juris as his home and
because: he resides there or it is the place
assigned to him by law.
Page 11 of 474
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to which, whenever he is absent he has the marriage, divorce, and sometimes even
intention of returning. succession.
Essential Requisites of Domicile of Choice Note: Personal status is ordinarily not terminable
1. Capacity at a person’s own will.
2. Freedom of Choice
3. Residence or physical presence in the place Capacity to Contract Marriage
where domicile is alleged to have been It refers to his power to acquire and exercise
acquired; rights.
4. Intention to make the place of residence the In Conflict of Laws, the inquiry is to ascertain what
permanent place of abode, or simply home system of law will determine a person’s capacity
(animus samper manendi). to enter into a legal transaction when there is
• The primary intention required is conflict between the law of the place where the
intention to make a home rather than an transaction is entered into and some system of
intention to acquire a domicile. law, such as the law of the domicile or the
Otherwise, persons could choose to be nationality, which can claim to regulate that
domiciled in a State of low burdens and person’s act.
high benefits irrespective of where they
actually happened to live. Formal Validity of Marriages
• As a rule, the motive or reason prompting If the marriage is valid by the law of the place of
a person to make a given place his home celebration or lex loci celebrationis, it is also valid
is immaterial. in other places.
Note: The husband and the wife shall fix the Philippine Conflict Rule on Formal and
family domicile but in case of disagreement, the Substantive Validity of Marriage
court shall decide. (Family Code, Art. 69) All marriages solemnized outside the Philippines,
in accordance with the laws in force in the country
Summary of Rules on Domicile of Choice where they were solemnized, and valid there as
(a) To acquire a fresh domicile, residence and such, shall also be valid in this country. (Family
intention must concur. Code, Art. 26)
(b) To retain an existing domicile, either
residence or intention to remain must be Substantive Validity of Marriages
present. General Rule: Law of the place of celebration
(c) To abandon a domicile, residence in the new (lex loci celebrationis)
place and intention to abandon the old place Exceptions:
must concur. i. Philippine law governs marriage between
Filipino nationals abroad solemnized by a
MARRIAGE, ADOPTION AND FAMILY consul-general of the Philippines. (Family
RELATIONS Code, Art. 10)
Personal status ii. Marriages prohibited under Philippine
• It is the legal position of an individual in Law will not be upheld as valid in the
his society. Philippines. (Family Code, Art. 26)
• It includes such matters as the beginning (i) Contracted by any party below
and end of legal personality, capacity to eighteen years of age even with
have rights in general, family relations consent (Family Code, Art. 35 (1))
and its various aspects such as: birth, (ii) Bigamous or polygamous marriage
legitimation, adoption, emancipation, not falling under Art. 41 (Family
Code, Art. 35 (4))
Page 12 of 474
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(iii) Contracted through mistake of one Note: Whether the Filipino spouse initiated the
party as to the identity of the other foreign divorce proceeding or not, a favorable
(Family Code, Art. 35 (5)) decree dissolving the marriage bond and
(iv) Subsequent marriages void under capacitating his or her alien spouse to remarry will
Art. 53 (Family Code, Art. 35 (6)) have the same result: the Filipino spouse will
(v) Psychological incapacity (Family effectively be without a husband or wife. A Filipino
Code, Art. 36) who initiated a foreign divorce proceeding is in the
(vi) Incestuous marriage (Family Code, same place and in "like circumstance as a Filipino
Art. 37) who is at the receiving end of an alien initiated
(vii) Marriage against public policy proceeding. Therefore, the subject provision
(Family Code, Art. 38) should not make a distinction. (Id.)
BUT, J. Perlas-Bernabe joined the dissent of J.
Requisites to Uphold Marriages Contracted Caguioa.
Abroad
1. Existence of the foreign law as a question of How Foreign Divorce Decrees can be
fact; Recognized
2. Alleged foreign marriage by convincing (a) In an action instituted specifically for the
evidence (Adong v. Cheong Seng Gee, G.R. purpose (e.g. special proceeding for
No. 18081, 1922) cancellation or correction of entries in the
Civil Registry under Rule 108) (Fujiki v.
Annulment of marriages Marinay, 2013)
1. Jurisdiction to Annul – acquired by the (b) In another action where a party invokes the
following forums: foreign decree as an integral aspect of his
(a) Where the spouses are domiciled in; claim or defense. (Medina v. Koike, 2016)
and
(b) In which either parties are nationals CATEGORY GOVERNING LAW
2. Governing Law on Annulment or Nullity – lex Personal Personal law or national law of
loci celebrationis determines the cause or Status the person (lex nationalii)
ground for annulment. Capacity to Personal law or national law of
Contract the person (lex nationalii)
Recognition of Foreign Divorce Decrees Marriage
(a) Between Filipino citizens – not entitled to Formal Law of the place of celebration
recognition because of the local policy Validity of (lex loci celebrationis)
against absolute divorce. Marriages
Law of the place of celebration
Note: Divorce between Filipinos is void and (lex loci celebrationis)
ineffectual under the nationality rule. Any Substantive
Exception: Marriage before the
settlement of property submitted as an incident of Validity of
Philippine consular and
a divorce obtained in a foreign country between Marriages
marriages prohibited under
Filipino spouses cannot be enforced. (Spouses Philippine law.
Lavadia v. Heirs of Luna, 2014) Law of the place of celebration
Annulment
(lex loci celebrationis)
(b) Between alien spouses – entitled, if valid
under their national law. SUCCESSION
(c) Mixed marriages – entitled, even the Filipino Successional Rights
spouse may seek for divorce (Republic v. The national law of the decedent governs
Manalo, G.R. 221029, 2018) whatever may be the nature of the property and
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regardless of the country wherein said property (a) with the formalities prescribed by the
may be found. This includes: law of the place in which he resides
(a) Order of succession (lex domicilii), or
(b) Amount of successional rights (b) according to the formalities observed
(c) Intrinsic validity of testamentary provisions in his country (lex nationalii), or
(Civil Code, Art. 16 par. 2) and (c) in conformity with those which the
(d) Capacity to succeed (Civil Code, Art. 1039) Civil Code prescribes (Civil Code,
Art. 817).
Note: When the factual situation involves Note: The formal validity of wills depends upon
property, there must be an initial characterization the observance of law in force at the time it is
of property. As a rule, lex rei sitae shall initially made. (Civil Code, Art. 795)
govern. Intrinsic validity of rules on succession
arises only when the lex rei sitae characterizes (b) Revocation of wills
such property as a descendible interest of the i. If made by non-domiciliary outside
decedent. the Philippines – validity of revocation
depends on the:
Thus, the nature and extent of the title of the (a) law of the place where the will was
spouse at the time of the acquisition and the made be (lex loci celebrationiis), or
dissolution of the community lands must be (b) according to the law of the place in
determined in accordance with the lex rei sitae. In which the testator had his domicile
the Philippines, upon death of the decedent, the at the time (lex domicilii)
property relationship of the spouses dissolves ii. If done in the Philippines – when it is
and the properties are to be treated as conjugal in accordance with the provisions of the
properties to be distributed between the estate of Civil Code. (Civil Code, Art. 829)
the decedent and the surviving spouse and not as
a descendible interest of the decedent. (Gibbs v. (c) Probate. It is the court process of proving
Government G.R. No. L-35694, 1933) the validity of the will. Hence, lex fori applies.
Whatever public policy or good customs may be
involved in our system of legitimes, Congress has (d) Administration of Estate. Lex fori applies,
not intended to extend the same to the that is, the law of the State where
succession of foreign nationals. For it has appointment is sought. Accordingly,
specifically chosen to leave, inter alia, the amount administration extends only to the assets of
of successional rights, to the decedent's national the decedent found in the State where the
law. (Cayetano v. Leonidas, G.R. No. L-54919, letters of administration was granted.
1984)
Hence, there may be two (2) or more
Rules on Wills administrators of an estate:
(a) Formal Validity of Wills – the laws (a) principal administrator – granted
governing the formal validity of wills involving to the person(s) in the jurisdiction of
a foreign element are the following: the decedent’s last domicile;
i. For Filipinos in a foreign country – (b) ancillary administrator – granted
authorized to make a will in any of the in any other jurisdiction. It is the
forms established by the law of the general theory that the ancillary
country in which he may be (lex loci administrator must remit the balance
celebrationis). (Civil Code, Art. 816) of the estate in his territorial
Except: Joint wills (Civil Code, Art. 819) jurisdiction to the principal
administrator.
ii. For Aliens abroad – his will produces
effect in the Philippines if made:
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CATEGORY GOVERNING LAW No conflicts rule on essential validity of contracts

Order of National law of decedent is expressly provided for in our laws. The rule
succession followed by most legal systems, however, is that
Amount of the intrinsic validity of a contract must be
successional governed by the lex contractus or “proper law of
rights the contract.” This is the law voluntarily agreed
Intrinsic validity upon by the parties (the lex loci voluntatis) or the
of testamentary law intended by them either expressly or implicitly
provisions (the lex loci intentionis) (Phil. Export and Foreign
Capacity to Loan Guarantee Corp. v. V.P. Eusebio
Succeed Construction Inc. G.R. No. 140047, 2004).
Formal validity of Filipinos in a foreign
Note: In the absence of an effective choice of law
wills country – law of the country
or lex loci contractus, the law which has the
in which he may be (lex loci
closest and most substantial connection shall
celebrationis)
govern, specifically, the center-of-gravity or
Exception: Joint wills
grouping of contracts approach is used.
Aliens abroad –
a. law of his residence (lex
Center-of-gravity Approach
domicilii)
Takes into account the various legal systems with
b. national law (lex
the contract and applies the law of the place
nationalii)
where the transaction has its center of gravity or
c. Civil Code
the most important connection.
Revocation of Made by non-domiciliary
Example: Details of performance, e.g. the rules
wills outside the Philippines –
on manner of demand, days of grace, notice of
dishonored, should be governed by the law of the
a. law of the place where
place where the contract is to be performed.
the will was made be (lex
loci celebrationiis)
Capacity to Contract
b. law of the testator’s
Lex nationalii (Civil Code, Art. 16 par. 1)
domicile at the time (lex
domicilii)
Choice of Forum or Jurisdiction
Where the relationship between the parties is
If done in the Philippines –
affected with public interest and multiple and
Philippine law
substantive contacts of the contract are with
Probate Lex fori
Philippine Law, Philippine courts and agencies
Administration
may not be ousted of their jurisdiction. (Pakistan
International Airlines v. Ople, G.R. No. 61594,
CONTRACTS
1990)
Validity of Contracts
1. Extrinsic Validity – lex loci celebrationis or
Choice of Seat of Arbitration
lex loci contractus (Civil Code, Art. 17, par.
The parties are free to agree on the place of
1)
arbitration. Failing such agreement, the place of
2. Intrinsic Validity – lex loci contractus or
arbitration shall be in Metro Manila, unless the
the proper law of the contract whether:
arbitral tribunal shall decide on a different place
(a) Expressed or lex voluntatis
of arbitration.
(b) Implied from the contract or lex
(Alternative Dispute Resolution Act, Sec. 30)
loci intentionis
Page 15 of 474
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Note: Courts of the forum will not enforce any 1998) Note: This theory is adopted by the
foreign claim obnoxious to the forum’s public SC.
policy. Here in the Philippines, employment
agreements are more than contractual in nature. (c) State-interest Analysis – this principle provides
(Triple Eight Integrated Services v. NLRC, G.R. for the following methodology:
No. 129584, 1998) 1. Separate false or spurious conflicts (i.e.
only one State has an interest in applying
CATEGORY GOVERNING LAW its tort law) – apply the law of such
Extrinsic Lex loci celebrationis or lex interested State.
validity loci contractus 2. If there is a true conflict (i.e. more than
Intrinsic Lex contractus or the proper one State has interest) – apply the law of
validity law of the contract whether: such State which has greater interest in
a. Express (lex voluntatis) upholding its tort law.
b. Implied (lex loci intentionis)
Capacity National law (d) Caver’s Principle of Preference – where a
State does not have a statutory question of
TORTS AND CRIMES tort liability in conflict cases, the following
Tort guidelines may be used.
The nature and extent of tort liability is governed i. The State of Injury sets a higher
by the law of the place where the wrong was standard for protection against the
committed (lex loci delicti commissi). injury compared to the State of
conduct - the laws of the State of
Obligation Theory Injury applies
The tort committed anywhere in the world gives ii. The State of Conduct and Injury sets
rise to an obligation which follows the defendant a lower standard than the home
wherever he may be found. State of the injured person - the laws
of the State of Conduct and Injury
Modern Theories in Tort Liability applies
(a) Doctrine of Elective Concurrence - either iii. The State of Conduct has
the laws of the state where the actor engaged established special controls over
in his conduct and where the injury was conduct of the kind in which the
incurred may be invoked. defendant was engaged when
caused the injury - the benefits of the
(b) Theory of Most Significant Relationship – laws of the State of Conduct should
the applicable law shall be the law of the be accorded to plaintiff;
country which has the most significant iv. The State in which a Relationship
relationship to the situation. has its Seat has imposed a standard
In determining the state which has the most of conduct on one party to that
significant relationship, the following points of relationship for the benefit of the
contact are to be taken into account: other party which is higher compared
1. place where the injury occurred to that of the State of injury – the laws
2. place of conduct causing the injury of the seat of the relationship applies.
3. domicile, residence, nationality place of
incorporation and place of business of Conditions
the parties 1. The tort is not penal in character
4. place where the injury occurred (Saudi 2. The enforcement of the tortious liability will
Arabian Airlines v. CA, G.R. No. 122191, not contravene the enforcing State’s public
policy
Page 16 of 474
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3. The enforcing State’s judicial machinery is rem action), e.g.

adequate for such enforcement divorce, adoption,
quieting of title.
Crimes
Principles of criminal liability Requisites for Recognition or Enforcement of
(a) Territorial Principle – crimes are punishable Foreign Judgment
by the State in whose territory they are 1. Foreign judgment was rendered by a judicial
committed. or quasi-judicial tribunal which has
(b) Nationality Principle – a State has power to jurisdiction over the parties and the case in
enact criminal laws which apply even to the proper judicial proceedings;
violations committed thereof by its citizens in 2. The judgment must be valid under the laws of
other States. the court that rendered it;
(c) Protective Principle – determines 3. The judgment must be final and executory to
jurisdiction by reference to the national constitute res judicata in another action;
interest injured by the offense. 4. The State where the foreign judgment was
(d) Universality Principle – determines obtained allows recognition or enforcement
jurisdiction by reference to the custody of the of Philippine judgments (reciprocity
person committing the offense. requirement);
(e) Passive Personality Principle - determines 5. The judgment must specify the performance
jurisdiction by reference to the nationality or or delivery (e.g. in a suit for collection of
the national character injured by the offense. money, the award must be a fixed sum)
Note: The Philippine conflict rule on criminal 6. The judgment must not be contrary to the
liability follows territoriality principle with a mixture public policy or good morals of the country
of protective principle (RPC, Art. 2). where it is sought to be enforced;
7. The judgment must not have been obtained
IV. RECOGNITION AND ENFORCEMENT OF by fraud, collusion, mistake of fact or law.
FOREIGN JUDGMENT
Note: The fraud available against a foreign a
Distinction Between Recognition and judgment is extrinsic fraud.
Enforcement
RECOGNITION ENFORCEMENT Degree of Conclusiveness of Judgment
When foreign judgment When, in addition to 1. Judgment in Rem - conclusive upon the title
is given a res judicata the foreign judgment of the thing
effect that is has in the being recognized, a 2. Judgment in Personam – presumptive
State where it was party is given evidence of a right as between the parties
rendered affirmative relief to and their successors in interest by a
which the judgment subsequent title. (Rules of Court, Rule 39,
Examples: entitles him. Sec. 48)
1. Declaratory
judgment Grounds to Repel Foreign Arbitral Award
2. Judgment without Philippine conflict rules on foreign judgments
affirmative relief, follow the Anglo-American system of limited or
e.g. dismissal of qualified recognition, to wit:
complaint; The judgment or final order of foreign country may
3. Judgment which be repelled by evidence of: (JN-C-FM)
determines parties 1. Want of Jurisdiction,
interest in a thing 2. Want of Notice to the party,
or status (quasi in 3. Collusion,
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4. Fraud, or G. HUMAN RELATIONS (ARTS. 19-22)

5. Clear Mistake of law or fact. (Rules of Court,
Rule 39, Sec. 48) Principle of Abuse of Rights (Art. 19)
One’s right is exercised for the purpose of
Grounds for Refusal of Recognition and prejudicing or injuring another.
Enforcement of an Award (In2-NU-DICS)
At the request of the party against whom it is Requisites/Elements:
invoked: 1. There is a legal right or duty
(a) Incapacity of the parties to the agreement; 2. Which is exercised in bad faith
(b) Invalidity of the agreement under the law to 3. For the sole intent of prejudicing or injuring
which the parties have submitted it to or another. (Sps. Andrada v. Pilhino Sales
under the law of the country where the award Corporation, G.R. No. 156448, 2011)
was made;
(c) Party against whom the award was invoked Standards to Observe in the Exercise of One’s
was not given proper Notice of the Rights or Performance of Duty:
appointment of the arbitrator or of the 1. Act with justice
arbitration proceedings; 2. Give everyone his due
(d) Party against whom the award is invoked was 3. Observe honesty and good faith.
Unable to present his case;
(e) Award deals with a Difference not Acts Contrary to Law (Art. 20)
contemplated within the terms of the Every person who, contrary to law, willfully or
submission to arbitration; negligently causes damage to another, shall
(f) Composition of the arbitral authority or the indemnify the latter for the same.
arbitral procedure was not in accordance with
the agreement of the parties or with the law Acts Contra Bonos Mores (Art. 21)
of the country where the agreement took When persons willfully cause loss or injury to
place; another.
(g) Award has not yet become binding on the Elements:
parties or has been Set aside or suspended 1. There is an act which is legal.
by a competent authority of the country in 2. But contrary to morals, good customs, public
which that award was made. order, or public policy.
3. Done with intent to injure.
Based on the finding of the competent authority
in the country where recognition and enforcement Note:
is sought • Similarities: In Arts. 19-21, at the core is bad
(a) The Subject matter of the difference is not faith or malice and the aggrieved party must
capable of settlement by arbitration under the be indemnified.
law of that country; or • Differences: Under Arts. 19 & 21, the act
(b) The recognition or enforcement of the award must be done intentionally. Art. 20, however,
would be contrary to the Public policy of that does not distinguish (the act may be done
country (New York Convention on the either willfully or negligently, as long as the
Recognition and Enforcement of Foreign act is be contrary to law).
Arbitral Awards, Article V).
Actions for Breach of Promise to Marry
————- end of topic ————- General Rule: Breach of promise to marry is not
actionable.
Exception: When one party has already made

real efforts to prepare and spend for the wedding.
Page 18 of 474
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Such act is unjustifiably contrary to good customs 2. Person seeking to stop it is the government
for which the defendant must be held answerable or a private charitable institution.
for damages in accordance with Art. 21 of the
NCC. (Wassmer v. Velez, G.R. No. L-20089, Rights to Personal Dignity and Privacy (Art.
1964) 26)
Every person shall respect the dignity,
Unjust Enrichment / Accion in rem verso (Art. personality, privacy and peace of mind of others.
22)
Action for recovery of what has been paid without The following acts produce a cause of action for
just cause damages, prevention and other relief: (PMIV)
i. Prying into the privacy of another’s
Conditions for Unjust Enrichment to Arise residence
First, a person must have been benefited without
a real or valid basis or justification. Second, the Note: It includes "any act of intrusion
benefit was derived at another person’s expense into, peeping or peering inquisitively into
or damage (Art. 22 and Loria v. Muñoz, G.R. the residence of another without the
187240, 2014). consent of the latter." It may extend to
places where he has the right to exclude
Requisites (EWLN) the public or deny them access. It covers
1. Defendant had been Enriched. places, locations, or even situations
2. Plaintiff suffered a Loss. which an individual considers as private
3. Unjust enrichment of defendant is Without such as a business office located within
just or legal ground. his residence. (Spouses Hing v.
4. Plaintiff has No other action based on Choachuy, Sr., G.R. No. 179736, 2013).
contract, quasi-contract, crime, or quasi-
delict. ii. Meddling with or disturbing the private life
or family relations of another
Note: Mistake is an essential element in solutio iii. Intriguing to cause another to be
indebiti but not in accion in rem verso. alienated from friends
iv. Vexing or humiliating another on account
Duty to Indemnify One for Damage to Property of his religious beliefs, lowly station in life,
When defendant was benefitted even if not due to place of birth, physical defect, or other
fault or negligence. (Art. 23) personal condition
Duty of Courts to Protect a Party in a Contract Relief Against Public Officials (Art. 26)
When such party is at a disadvantage on account When one suffers material or moral loss because
of his: (MIgIMenTO) a public officer fails without cause to perform his
(a) Moral dependence duty, the officer is not protected by his office and
(b) Ignorance is personally liable.
(c) Indigence
(d) Mental weakness Unfair Competition through Unjust,
(e) Tender age Oppressive, or Highhanded Methods (Art. 28)
(f) Other handicap (Art. 24) Article 28 does not prohibit competition with
regard to enterprises. What it seeks to be
Thoughtless Extravagance (Art. 25) prevented is not competition per se but the use of
May be stopped by order of courts if the following unjust, oppressive or highhanded methods which
requisites are present: may deprive others of a fair chance to engage in
1. During an acute public want or emergency; business or earn a living (Willaware Products
and
Page 19 of 474
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Corp. v. Jesichris Manufacturing Corp., G.R. No.

195549, 2014).
————- end of topic ————-
H. APPLICABILITY OF PENAL LAWS
Territoriality Rule (Art. 14)

General Rule: Penal laws and laws of public
security and safety shall be obligatory upon all
who live or sojourn in the Philippine territory
Exceptions:
i. Treaty stipulations
ii. Principles of Public International Law
iii. Laws of Preferential Application
Example: Foreign Ambassadors, ministers
Note: Consuls do not enjoy the privilege of

immunity
Page 20 of 474
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Governing Laws (Arts. 14-17)

LAW MATTERS/ GOVERNING PRINCIPLE/ DOCTRINE
PERSONS BOUND
Penal Laws All those who live or sojourn Principle of Territoriality:
in Philippine territory Law of the place where crime was committed
Exception:
1. Article 2 of the Revised Penal Code
Principle of Generality:
Law applies to everyone in the territory
Exception:
1. Treaty stipulations which exempt some
persons within the jurisdiction of
Philippine Courts
2. Heads of State and Ambassadors
Status Laws Citizens of the Philippines, Principle of Nationality:
(relating to family including those living National law of the person
rights and duties, abroad
status, legal capacity)
Property Laws Real and personal property Lex situs or Lex rei sitae:
Law of the place where property is situated
Exception:
For testate or intestate succession, the national
law of the person whose succession is under
consideration. As to the:
a. Order of succession
b. Amount of successional rights
c. Intrinsic validity of the testamentary provisions.
Note: The enumeration is governed by the

national law of the decedent, regardless of place
of death.
Laws on Forms and Forms and solemnities of Lex loci celebrationis: Law of the country in
Solemnities contracts, wills, public which they are executed
instruments Exception: If executed before Philippine
diplomatic or consular officials abroad, Philippine
laws shall govern.
Page 21 of 474
PERSONS AND
FAMILY
RELATIONS
Civil Law
ATENEO CENTRAL
PERSONS AND FAMILY RELATIONS II. Effects on legal disputes

III. Family home
H. PATERNITY AND FILIATION
I. Legitimate children
A. PERSONS
II. Proof of filiation
I. Kinds of Persons
III. Illegitimate children
II. Capacity to act
IV. Action to impugn legitimacy
III. Domicile and residence of persons
V. Legitimated children
B. RIGHTS AND OBLIGATIONS OF
I. ADOPTION
COUPLES IN INTIMATE RELATIONSHIPS
I. Domestic Adoption Law
(REP. ACT NO. 9262)
II. Law on Inter-Country Adoption
C. MARRIAGE
J. SUPPORT
I. Requisites
I. What it compromises
II. Marriages celebrated abroad
II. Who are obliged to give support
III. Foreign divorce
III. Source of support
IV. Void marriages
IV. Order of support
V. Voidable marriages
V. Amount of support
VI. Unmarried cohabitation
VI. Manner and time of payment
VII. Renunciation and termination
D. LEGAL SEPARATION
VIII. Support pendente lite
I. Grounds
IX. Procedure in applications for
II. Defenses
support
III. Procedure
IV. Effects of filing petition
K. PARENTAL AUTHORITY
V. Effects of pendency
I. General provisions
VI. Effects of decree of legal separation
II. Substitute parental authority
VII. Reconciliation
III. Special parental authority
VIII. Effect of death of one of the parties
IV. Effect of parental authority over the
child’s person
E. RIGHTS AND OBLIGATIONS BETWEEN
V. Effects of parental authority over the
HUSBAND AND WIFE
child’s property
VI. Suspension or termination of
F. PROPERTY RELATIONS OF THE
parental authority
SPOUSES
VII. Solo parents (Rep. Act No. 8972)
I. Marriage settlements
II. Donations by reason of marriage
L. EMANCIPATION
III. Void donations by the spouses
I. Cause of emancipation
IV. Absolute community of property
II. Effect of emancipation
V. Conjugal partnership of gains
VI. Regime of separation of property
M. SUMMARY JUDICIAL PROCEEDINGS IN
VII. Judicial separation of property
THE FAMILY CODE
VIII. Property regime of unions without
marriage
N. USE OF SURNAMES
G. THE FAMILY
O. ABSENCE
I. Concept of family
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I. Provisional measures in case of A. PERSONS

absence
II. Declaration of absence I. KINDS OF PERSONS
III. Administration of the property of the Natural Persons
absentee When Personality Begins (Art. 40-43)
IV. Presumption of death General Rule: Determined by birth; extinguished
by death but commences from conception (PD
P. CIVIL REGISTRATION 603 amending Art. 40)
Exception: The conceived child shall be
considered born for all purposes favorable to it
(provisional personality), provided it be born later
under the following conditions:
• If it had an intra-uterine life of 7 months or
more, it is alive at the time it is completely
delivered from the mother’s womb
• If it had an intra-uterine life of less than 7
months, only if it lives for at least 24 hours
after its complete delivery from maternal
womb
Rules on Survivorship (Art. 43)

The Civil Code is used in determining
survivorship where there is absence of proof as
to who died ahead of the other
• Doubt as to order of death between two or
more persons called to succeed each
other—No presumption: whoever alleges the
death of one prior to the other shall prove the
same.
• In the absence of proof, it is presumed that
they died at the same time and there shall be
no transmission of rights from one to the
other. This rule applies only to cases
involving succession between two persons
Juridical Persons
Civil Personality (Art. 44-47)
The State and its political subdivisions
Other corporations, institutions, and entities for
public interest or purpose created by law
Corporations, partnerships, and associations for
private interest or purpose
Laws Governing Juridical Persons (Art. 45):

a. The State, its political subdivisions, and
corporations, institutions, and entities for
public interest or purpose: governed by the
laws creating or recognizing them.
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b. Private corporations: governed by the Circumstances that Modify or Limit Capacity

Revised Corp. Code (R.A. 11232) to Act (FAT-DA-PAPIII)
c. Partnerships and associations: governed a. Family relations
by the provisions of the New Civil Code on b. Alienage
partnerships, except those registered with c. Trusteeship
the SEC which should be governed like d. State of being Deaf-mute
corporations e. Age
f. Penalty
Extinguishment g. Absence
By termination of existence either through law, h. Prodigality
dissolution or expiration of corporate life i. Insanity
j. Insolvency
Rights of a Juridical Person (Art. 46) k. Imbecility (Art. 39)
a. Acquire and possess property of all kinds III. DOMICILE AND RESIDENCE OF
b. Incur obligations PERSONS
c. Bring civil or criminal actions
Place of Domicile (Art. 50-51)
II. CAPACITY TO ACT • For natural persons, it is the place of
Juridical Capacity v. Capacity to Act (Art. 37) habitual residence
JURIDICAL CAPACITY TO ACT • For juridical persons
CAPACITY o General rule: In accordance with the
Fitness to be the Power to do acts with law creating or recognizing them, or
subject of legal legal effect any other provision
relations o Exception: If the law is silent, the
Passive Active residence shall understood to be the
Inherent Not inherent; attained place where their legal
or conferred representation is established or
Lost only through Lost through death where they exercise their principal
death and other causes functions
Can exist without Cannot exist without
capacity to act juridical capacity NOTE: A person may have as many residences
Cannot be limited or Can be restricted, as he wants, but he can only have one domicile.
restricted modified, or limited Under the Family Code, the husband and wife
shall fix the family domicile. In case of
Restrictions on Capacity to Act (MInD-ICIP) disagreement, the Court shall decide (Art. 69)
a. Minority
b. Insanity A minor follows the domicile of his parents
c. State of being Deaf-mute • Domicile of origin can only be lost when a
d. Imbecility change of domicile occurs
e. Civil Interdiction • If the child is illegitimate, the domicile of the
f. Prodigality - state of squandering money or mother is followed
property with a morbid desire to prejudice the
heirs of a person (Martinez v. Martinez, G.R. Requirements for the Acquisition of New
No. 445, 1902) Domicile
1. Bodily presence in new locality;
NOTE: But these do not exempt the incapacitated 2. Intention to remain therein (animus manendi);
person from certain obligations and
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3. Intention to abandon the old domicile (animus activity by force, threat of force, physical
non revertendi) or other harm or threat of physical or
other harm or coercion;
Kinds of Domicile 3. Prostituting the woman or child
a. Domicile of Origin: received by a person at (Sec. 3B).
birth
b. Domicile of choice: the place freely chosen Psychological violence: acts or omissions
by a person sui juris causing or likely to cause mental or emotional
suffering of the victim such as but not limited to
————- end of topic ————- intimidation, harassment, stalking, damage to
property, public ridicule or humiliation, repeated
B. RIGHTS AND OBLIGATIONS OF COUPLES verbal abuse and mental infidelity. It includes
IN INTIMATE RELATIONSHIPS (REP. ACT causing or allowing the victim to witness the
NO. 9262) physical, sexual or psychological abuse of a
Definition of violence member of the family to which the victim belongs,
Any act or a series of acts committed by any or to witness pornography in any form or to
person against a woman who is his wife, former witness abusive injury to pets or to unlawful or
wife, or against a woman with whom the person unwanted deprivation of the right to custody
has or had a sexual or dating relationship, or with and/or visitation of common children (Sec. 3C).
whom he has a common child, or against her child
whether legitimate or illegitimate, within or without Economic Abuse: acts that make or attempt to
the family abode, which result in or is likely to make a woman financially dependent which
result in physical, sexual, psychological harm or includes, but is not limited to the following:
suffering, or economic abuse including threats of 1. Withdrawal of financial support or preventing
such acts, battery, assault, coercion, harassment the victim from engaging in any legitimate
or arbitrary deprivation of liberty (Sec. 3(a)) profession, occupation, business or activity,
except in cases wherein the other
This includes, but is not limited to: spouse/partner objects on valid, serious and
a. Physical violence: acts that include moral grounds as defined in Article 73 of the
bodily or physical harm (Sec. 3A); Family Code;
b. Sexual violence: an act which is sexual 2. Deprivation or threat of deprivation of
in nature, committed against a woman or financial resources and the right to the use
her child. It includes, but is not limited to: and enjoyment of the conjugal, community or
1. Rape, sexual harassment, acts of property owned in common;
lasciviousness, treating a woman or her 3. Destroying household property;
child as a sex object, making demeaning 4. Controlling the victims' own money or
and sexually suggestive remarks, properties or solely controlling the conjugal
physically attacking the sexual parts of money or properties (Sec. 3D)
the victim's body, forcing her/him to
watch obscene publications and indecent NOTE: Couples who are not married are also
shows or forcing the woman or her child covered by VAWC as long as there is at least a
to do indecent acts and/or make films dating or sexual relationship.
thereof, forcing the wife and
mistress/lover to live in the conjugal Violence as a Ground for Legal Separation
home or sleep together in the same room In cases of legal separation, where violence as
with the abuser; specified in this Act is alleged, Article 58 of the
2. Acts causing or attempting to Family Code shall not apply. The court shall
cause the victim to engage in any sexual proceed on the main case and other incidents of
the case as soon as possible. The hearing on any
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application for a protection order filed by the 2. Valid marriage License (except in cases
petitioner must be conducted within the where a marriage license is not required);
mandatory period specified in this Act. (Sec. 19) and
a. Valid only for 120 days from issue in
NOTE: Under this ground, the 6 months cooling- any part of the Philippines
off period mandated under Article 58 of the Family 3. Marriage Ceremony where the contracting
Code is inapplicable. parties appear before the solemnizing officer,
with their personal declaration that they take
Custody of Children (Sec. 28) each other as husband and wife in the
• The woman victim of violence is entitled to presence of not less than two witnesses of
the custody and support of her child/children. legal age
NOTE: Children below 7 years old or older but Effects of the Absence of Requisites for
with mental or physical disabilities shall be Marriage
automatically given to the mother, with right to General Rule: Absence of any of the essential or
support unless court finds compelling reasons to formal requisites – void ab initio
order otherwise.
Exceptions:
NOTE: A victim suffering from battered woman a. If solemnized by an unauthorized person, the
syndrome shall not be disqualified from having marriage will still be valid if either or both
custody of her children. In no case shall custody contracting parties believed in good faith that
of minor children be given to the perpetrator of a the solemnizing officer had legal authority
woman suffering from Battered woman (Art. 35[2])
syndrome. b. In instances where marriage license need not
be procured:
————- end of topic ————- 1. Marriage in articulo mortis (one or both of
the parties at the point of death) (Art. 27)
C. MARRIAGE 2. If the residence of either party is so
remote there is no means of
Definition of Marriage (Art. 1) transportation to enable such party to
1. Special contract; appear personally before the civil
2. Permanent union; registrar (Art. 28)
3. Between a man and a woman; 3. Marriage solemnized outside the
4. Entered into in accordance with law; and Philippines where no marriage license is
5. For the establishment of conjugal and family required by the country where it was
life solemnized (Art. 26)
4. Marriage among Muslims or among
I. REQUISITES members of ethnic cultural communities
Essential Requisites of Marriage: (LCI) (Art. 3) in accordance with their customs (Art. 33)
1. Legal capacity of contracting parties; 5. Marriage between persons who have
a. Must be between a male and female lived together as husband and wife for at
b. Must be at least 18 years old least five years and without any legal
2. Consent freely given, in the presence of the impediment to marry each other during
solemnizing officer; and the 5-year period of cohabitation (Art. 34)
3. Absence of any Impediment
Procedural Requirements in Case of
Formal Requisites of Marriage: (ALC) (Art. 4) Cohabitation for Five Years:
1. Authority of solemnizing officer; a. The parties must execute an affidavit stating
that they have lived together for at least 5
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years and are without legal impediment to 2. Between passengers or crew

marry each other; and members; and
b. The solemnizing officer must execute a 3. While the ship is at sea or the plane
sworn statement that he had ascertained the is in flight and also during stopover at
qualifications of the parties and that he had ports of call
found no legal impediment to their marriage d. Military Commander-
1. Of a unit to which a chaplain is
NOTE: Absence of any of these procedural assigned;
requirements do not make the marriage void. 2. Chaplain is absent at the time of
What is indispensable is the 5-year cohabitation marriage;
as husband and wife. 3. During military operations;
4. Must be one in articulo mortis; and
The 5-year period should be a period of 5. Between persons within the zone of
cohabitation characterized by exclusivity – military operations or whether
meaning no third party was involved at any time members of the armed forces or
– that is, unbroken. (Niñal v. Bayadog, G.R. No. civilians
133778, 2000) e. Consul-general, consul, or vice-consul-
Between Filipino citizens abroad
The absence of the legal impediment must be f. Mayor- effective January 1, 1992 (LGC);
throughout the 5-year period. (Office of the
Administrator v. Necessario, A.M. No. MTJ-07- Venues for Marriage (Art. 8) (Directory)
1691, 2013) General Rule: Must be solemnized publicly, and
not elsewhere, in the:
Effect of Defects in the Requisites for a. Chambers of the judge or in open court
Marriage (Art. 4) b. Church, chapel, or office of consul-general,
• Defect in any of the essential requisites – consul, or vice-consul
voidable
• Irregularity in any of the formal requisites Exceptions:
– does not affect the validity of the marriage (a) Marriage at the point of death (in articulo
by will make the party responsible civilly, mortis)
criminally, or administratively liable (b) Marriage in remote places
(c) Marriage at a house or place designated by
Authorized Solemnizing Officers: (JPCCCM) the parties in a sworn statement upon their
(Art. 7) written request to the solemnizing officer
a. Incumbent member of the Judiciary (judge –
within the court’s jurisdiction; Justices – Other Requirements (Art. 14-15)
within Philippine territory) EITHER OR BOTH REQUIRES
b. Any Priest, rabbi, imam or the minister of any PARTIES
church or religious sect- 18 years old and Parental consent
1. Registered with the civil registrar above but below 21 Marriage counseling
general; 21 years old and Parental advice
2. Within limits of the written authority of above but below 25 Marriage counseling
the church or sect; and
3. At least one of the contracting parties Effects of Lack of Parental Consent, Parental
belongs to the church or religious Advice, or Marriage Counselling If Required
sect. GROUND EFFECTS
c. Ship Captain or airplane chief- Lack of parental Marriage is voidable
1. At least one of the parties is in consent
articulo mortis;
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Lack of parental No effect on validity of foreign country shall be valid here (lex loci
advice or failure to marriage. However, this celebrationis)
attach certificate of will suspend the • Basis: Principle of Comity
marriage issuance of the • However, if solemnized inside the Philippine
counseling marriage license for 3 Consulate abroad, Philippine laws must be
months from the observed
completion of publication
of the application. (Art. Exceptions to Lex Loci Celebrationis:
16) a. Where either or both parties are below 18
years old
If they get married during b. Bigamous or polygamous marriage
the 3-month period with a (except Art. 41 on presumptive death of
license, the marriage spouse)
shall be valid but civil and c. Mistake in identity
criminal liability may d. Marriage void under Art. 53 – contracted
attach. (Art. 16) following the annulment or declaration of
nullity of a previous marriage but before
If they get married during recording of partition
the 3-month period e. Psychological incapacity
without a license, the f. Incestuous marriage
marriage shall be void for g. Marriage void for reasons of public policy
lack of a formal
requirement. Thus, what is dispensed with are merely the
authority of the solemnizing officer and the
No marriage license will marriage license requirements.
be issued in the absence
of Certificate of Is the “marriage ceremony” requirement
Compliance issued by the dispensed with, thus allowing common-law
Family Planning Office. marriage? – NO, Art. 26 of the Family Code uses
(R.A. 10354, Sec. 15) the word “solemnized”. However, if solemnized
abroad, the ceremony prescribed in the place of
Marriage Certificate celebration shall apply.
While a marriage certificate is considered the
primary evidence of a marital union, it is not Is the same-sex marriage of Filipinos abroad
regarded as the sole and exclusive evidence of valid? NO, Article 15 of the Civil Code provides
marriage. The fact of marriage may be proven by that laws relating to family rights and duties, or to
relevant evidence other than the marriage status, condition and legal capacity of persons
certificate. Hence, even a person’s birth are binding upon citizens of the Philippines, even
certificate may be recognized as competent though living abroad. In the Philippines, a person
evidence of the marriage between his parents. has legal capacity to marry only a person of the
(Anonuevo v. Int. Estate of Jalandoni, G.R. No. opposite sex. Hence, public policy mandates that
178221, 2010) only a man and woman can marry each other.
II. MARRIAGES CELEBRATED ABROAD To establish a valid marriage, it is necessary

to prove:
General Rule: Marriages solemnized outside the 1. The foreign law as a question of fact; and
Philippines in accordance with the laws of the 2. The celebration of marriage pursuant thereto
by convincing evidence (Ching Huat v. Co
Heong)
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foreigner at the time of the divorce, and not at the

NOTE: If such law of the other state is not time of the marriage ceremony.
pleaded nor proved and for purposes of
determining the validity of a marriage in the said How to prove foreign divorce:
state, the laws of such state, in the absence of 1. Present the divorce decree, proven as a
proof to the contrary, will be presumed by the public or official record of a foreign
Court to be the same as the laws of its own state country by either:
(Processual presumption) a. An official publication; or
b. A copy thereof attested by the
III. FOREIGN DIVORCE officer having legal custody of
the document
Requisites for a Filipino Spouse to Gain 2. If the record is not kept in the Philippines,
Capacity to Remarry under Philippine Law such copy must be:
After Divorce with Foreigner-spouse (Art. 26, a. Accompanied by a certificate
par. 2) issued by the proper or consular
1. A valid marriage that had been celebrated officer in the Philippine foreign
between a Filipino citizen and a foreigner; service stationed in the foreign
and country in which the record is
2. A valid divorce subsequently obtained kept; and
abroad by the alien spouse capacitating him b. Authenticated by the seal of his
or her to remarry office
3. Prove the conformity of the decree to the
The letter of the law does not demand that the foreign law (Garcia v. Recio, 2001)
alien spouse should be the one who initiated the
proceeding wherein the divorce decree was J. Leonen: Settled is the rule that in actions
granted. It does not distinguish whether the involving the recognition of a foreign divorce
Filipino spouse is the petitioner or the respondent judgment, it is indispensable that the
in the foreign divorce proceeding (Republic v. petitioner proves not only the foreign divorce
Manalo, G.R. No. 221029, 2018). judgment granting the divorce, but also the
alien spouse’s national law. The English
J. Leonen: Article 26 should be interpreted to translation submitted was published by
mean that it is irrelevant for courts to Eibun-Horei-Sha, Inc., a private company in
determine if it is the foreign spouse that Japan engaged in publishing English
procures the divorce abroad. Once a divorce translation of Japanese laws, which came to
decree is issued, the divorce becomes be known as the EHS Law Bulletin
"validly obtained" and capacitates the foreign Series. However, these translations are "not
spouse to marry. The same status should be advertised as a source of official translations
given to the Filipino spouse. The national law of Japanese laws;" rather, it is in the KANPŌ
of Japan does not prohibit the Filipino spouse or the Official Gazette where all official laws
from initiating or participating in the divorce and regulations are published, albeit in
proceedings. It would be inherently unjust for Japanese. Accordingly, the English
a Filipino woman to be prohibited by her own translation submitted by Mrs. X is not an
national laws from something that a foreign official publication exempted from the
law may allow (Racho v. Seiichi Tanaka, G.R. requirement of authentication. Neither can the
No. 199515, June 25, 2018) English translation be considered as a
learned treatise. (Arreza v. Toyo, G.R. No.
NOTE: The determinative point when the 213198, July 1, 2019)
foreigner who procured the divorce should be a
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IV. VOID MARRIAGES adequate and will not prove absence of a

Marriages Void from the Beginning (Void Ab marriage license. The certification, in fact, proves
Initio): that no diligent search was made. (Sevilla vs.
A. Void under Article 35: Cardenas, G.R. No. 167684, 2006)
a. Contracted by any party below 18
years old; A Certification of the Civil Registrar to the effect
b. Solemnized by an unauthorized that “after a diligent search on the files of Registry
solemnizing officer Book on Application for Marriage License and
• Exception: If either or both License Issuance available in this office, no
parties believed in good faith that record could be found on the alleged issuance of
the officer had authority this office of Marriage License No. XXXXX in
c. Solemnized without a valid marriage favor of Mr. A and B dated XXXX” does not
license categorically prove that there was no marriage
• Exception: When license not license. Furthermore, marriages are not
required dissolved through mere certifications by the civil
d. Bigamous or polygamous marriages registrar. It will be wrong to establish a doctrine
• Exception: Art. 41 – Marriage that a certification that a marriage license cannot
contracted by a person whose be found may substitute for a definite statement
spouse has been absent for 4 that no such license existed or was issued
years (ordinary absence) or 2 (Vitangcol v. People, G.R. No. 207406, 2016).
years (extraordinary absence),
where such person has a well- The Certification by the Municipal Civil Registrar
founded belief that his/her that the Office of the Local Civil Registrar “has no
absent spouse is already dead, record nor copy of any marriage license” ever
and had obtained a declaration issued in favor of petitioner and respondent,
of presumptive death, and at the coupled with respondent’s failure to produce a
time of marriage ceremony is in copy of the alleged marriage license or of any
good faith together with the evidence to show that such license was ever
subsequent spouse issued, proves that no valid marriage license was,
e. Those contracted through mistake of in fact, issued (Kho v. Republic and Kho, G.R. No.
one contracting party as to the 187462, 2016)
identity of the other; and
f. Those subsequent marriages that Valid Bigamous Marriages
are void under Article 53. General Rule: Marriage contracted by any
B. Psychological Incapacity (Art. 36) person during the subsistence of a previous
C. Incestuous Marriage (Art. 37) marriage is void (Art. 35)
D. By Reasons of Public Policy (Art. 38) Exception: If subsequent marriage was
contracted with a valid declaration of presumptive
Good faith marriage (Art. 35[2]) death.
Good faith means an honest and reasonable
belief that the marriage was valid at its inception, J. Leonen: First marriage was not judicially
and that no legal impediment exists to impair its declared void nor was Z judicially declared
validity (52 Am. Jur. 2d 96) presumptively dead under the Civil Code.
Parties to a marriage should not be permitted
Marriage without a valid marriage license to judge for themselves its nullity, only
A certification of no marriage license by the local competent courts having such authority. Prior
civil registrar stating that there was not enough to such declaration of nullity, the validity of
staff to search for the marriage license is not the first marriage is beyond question. A party
who contracts a second marriage then
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assumes the risk of being prosecuted for It must be shown that sincere honest-to-
bigamy. The absolute nullity of a previous goodness efforts had indeed been made to
marriage may be invoked for purposes of ascertain whether the absent spouse is still alive
remarriage on the basis solely of a final or is already dead. Even after the non-return of
judgment declaring such previous marriage the husband who was a member of the army and
void. Bigamy was consummated when X assigned to Sulu and was thereafter not heard of
subsequently married Y without his first anymore by the wife for 33 years, there was still
marriage to Z having been judicially declared failure on the part of said wife to actively look for
void (Vitangcol v. People, G.R. No. 207406, her missing husband, and her purported earnest
2016). efforts to find him by asking her husband's
parents, relatives, and friends did not satisfy the
Essential Requisites for the Declaration of strict standard and degree of diligence required to
Presumptive Death under Art. 41 (MR-BF) create a "well-founded belief' of his death. She did
1. That the absent spouse has been Missing for not approach the AFP for information (Republic v.
4 consecutive years, or 2 consecutive years if Tampus, G.R. No. 214243, 2016).
the disappearance occurred where there is
danger of death under the circumstances laid NOTES:
down in Art. 391 of the Civil Code; • In this case, the subsequent marriage is valid
2. That the present spouse wishes to Remarry; but it shall be automatically terminated by the
3. That the present spouse has a well-founded recording of the affidavit of reappearance of
Belief that the absentee is dead; and the absent spouse. (Art. 42)
4. That the present spouse Files a summary • Without filing of the affidavit of reappearance,
proceeding for the declaration of presumptive there will exist two valid marriages (valid
death of the absentee [Republic vs bigamous marriage).
Sareñogon, 2016 (citing Republic v. Cantor, • If both spouses of the subsequent marriage
2013)] acted in bad faith, such marriage is void ab
initio. (Art. 44)
For a subsequent marriage to be valid, the prior
marriage must first be dissolved either by the Effect of Reappearance
death of the previous spouse or the final judicial The subsequent bigamous marriage under Art.
declaration of nullity or annulment of the previous 41 remains valid despite reappearance of the
marriage obtained before the subsequent absentee spouse, unless the reappearance made
marriage is entered into, regardless of the reason in a sworn statement is recorded in the civil
for the nullity or defect of the previous marriage, registry in the place where the parties to the
including lack of marriage license (Lasanas v. subsequent marriage resides. In such case, the
People G.R. No. 159031, 2014). subsequent marriage is automatically terminated.
The well-founded belief in the absentee’s death However, if there was a previous judgment
requires the present spouse to prove that his/her annulling or declaring the first marriage a nullity,
belief was the result of diligent and reasonable the subsequent bigamous marriage remains
efforts to locate the absent spouse and that based valid.
on these efforts and inquiries, he/she believes
that under the circumstances, the absent spouse Nullity of judgment of presumptive death is the
is already dead. Mere claim of diligent search is proper remedy and not an affidavit of
insufficient without corroborative evidence such reappearance when the person declared
as testimonies of the persons from whom she presumptively dead has never been absent. In
inquired (Republic v. Villanueva, G.R. No. this case, the husband was able to secure a
210929, 2015). declaration of presumptive death by alleging
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fraudulent facts. (Santos v. Santos, G.R. No. NOTE: The above effects apply to voidable
187061, 2014) bigamous marriages.
• Except for the first enumerated item (re:
Summary proceedings under the Family Code legitimate children), the above effects also
are final and executory pursuant to Article 247. apply to marriages which are annulled or
Hence, a summary proceeding for the declaration declared void ab initio under Art. 40.
of presumptive death of an absent spouse under
Article 41 of the Family Code is non-appealable. Mistake in Identity (Art. 35[5])
(Republic v. Tango, G.R. No. 161062, 2009) The contemplated mistake refers to the actual
However, a petition for certiorari under Rule 65 is physical identity of the other party, and not merely
still available (Republic v. Sarenogon, Jr., 2016). mistake in the name, character, age, or other
attributes of the person.
J. Leonen: For the purpose of not only
terminating the subsequent marriage but also Subsequent Marriage Void under Art. 53
of nullifying the effects of the declaration of A person whose marriage has been annulled or
presumptive death and the subsequent declared null and void may remarry as long as,
marriage, mere filing of an affidavit of after the marriage is annulled/nullified, he does
reappearance would not suffice (Castro v the following:
Gregorio, G.R. No. 188801, 2014). 1. Partition and distribution of the properties
of the spouses;
Effects of Termination of Subsequent 2. Distribution of the presumptive legitimes
Marriage: (LDBD-RI) (Art. 43) of the children; and
a. Children of the subsequent marriage 3. Recording of the judgement of annulment
conceived prior to its termination shall be or absolute nullity (Art. 40), the partition
considered Legitimate, unless the marriage is and distribution, and the delivery of the
void ab initio due to bad faith of both spouses presumptive legitimes in the appropriate
of the subsequent marriage, in which case civil registry and registries of the
the children shall be deemed illegitimate property.
b. The absolute community or conjugal
partnership shall be Dissolved and liquidated Failure to comply with these requisites will make
c. If either spouse acted in Bad faith, his/her the subsequent marriage void ab initio.
share in the net profits shall be forfeited: Furthermore, failure to record in the proper
a. In favor of the common children registries will mean that such will not affect third
b. If none, in favor of the children of the persons (Art. 52-53).
guilty spouse by previous marriage
c. In default of children, in favor of the Liquidation, partition, and distribution of
innocent spouse. presumptive legitimes apply only to marriages
d. Donations by reason of the marriage remain declared void under Art. 40 and 45. (Diño v. Diño,
valid except if the donee contracted the G.R. No. 178044, 2011)
marriage in bad faith
e. The innocent spouse may Revoke the Psychological Incapacity (Art. 36)
designation of the spouse in bad faith as the Marriage where any of the parties, at the time of
beneficiary in any insurance policy, even if the celebration of the marriage, was
designation is stipulated as irrevocable psychologically incapacitated to comply with the
f. The spouse who contracted the subsequent essential marital obligation, even if incapacity
marriage in bad faith shall be disqualified to becomes manifest only after solemnization.
Inherit from the innocent spouse by testate or
intestate succession Psychological Incapacity must be judged on a
case-to-case basis. It should refer to no less than
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a mental (not physical) incapacity. It must be Jurisprudential guidelines: (BRE-IGO-IC)

characterized by: (JIG) 1. Burden of proof to show the nullity of
1. Juridical antecedence marriage is upon the plaintiff;
2. Incurability 2. The Root cause of the psychological
3. Gravity (Carating-Siaynco v. Siaynco, G.R. incapacity must be: (CCEE)
No. 158896, 2004) a. Medically or Clinically identified;
b. Alleged in the Complaint;
Mere showing of irreconcilable differences and c. Sufficiently proven by Experts
conflicting personalities do not constitute d. Clearly Explained in the decision
psychological incapacity. (Carating-Siaynco v. 3. The incapacity must be proven to be Existing
Siaynco, G.R. No. 158896, 2004) at the time of the celebration of the marriage
4. Such incapacity must be shown to be
Mere sexual infidelity or perversion and medically or clinically permanent or Incurable
abandonment do not by themselves constitute 5. Such illness must be Grave enough to bring
psychological incapacity within the contemplation about the disability of the party to assume the
of the Family Code. (Dedel v. CA, G.R. No. essential obligations of marriage
151867, 2004) 6. Essential marital Obligations must be those
embraced by Arts. 68-71, as well as Arts.
One of the essential marital obligations is "to 220, 221, and 225 of the Family Code.
procreate children based on the universal 7. Interpretations given by the National
principle that procreation of children through Appellate Matrimonial Tribunal of the Catholic
sexual cooperation is the basic end of marriage." Church in the Philippines, while not
Constant non-fulfillment of this obligation will controlling or decisive, should be given great
finally destroy the integrity or wholeness of the respect by our courts
marriage. The senseless and protracted refusal 8. The trial court must order the prosecuting
of one of the parties to fulfill this marital obligation attorney or fiscal and the Solicitor General to
is equivalent to psychological incapacity. (Chi appear as Counsel for the State
Ming Tsoi v. CA, G.R. No. 119190, 1997)
NOTE: The foregoing guidelines do not require
A finding of psychological incapacity on the part that a physician examine the person to be
of one spouse shows non-cognizance of one’s declared psychologically incapacitated. What is
essential marital obligation, and therefore important is that the totality of evidence can
negates bad faith. As a consequence, moral and adequately establish the party’s psychological
exemplary damages cannot be awarded. Moral condition. (Republic v. CA & Molina, G.R. No.
damages should be predicated on specific 108763, 1997)
evidence that was done deliberately and with
malice by a party who had known of his or her “Totality of Evidence” principle means that
disability and yet willfully concealed the same. medical experts’ testimony is not required, if the
(Buenaventura v. CA, GR No. 127358, 2005) totality of all other evidence presented is sufficient
to prove psychological incapacity. If not, the
The burden falls upon petitioner, not just to prove testimony of experts is crucial. (Marcos v.
that respondent suffers from a psychological Marcos, G.R. 136490, 2000)
disorder, but also that such psychological
disorder renders her "truly incognitive of the basic J. Leonen: The non-examination of the
marital covenants that concomitantly must be defending party did not invalidate the findings
assumed and discharged by the parties to the of the psychologist as in the case where the
marriage." (Baccay v. Baccay, GR No. 117318, examination was based solely on the data
2010) given by the petitioner to the examining
psychologist. What matters is that the totality
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of evidence presented establishes the party’s

psychological condition. The Psychologist’s NOTE: Relationship by affinity between the
report, corroborated with Y’s testimony, surviving spouse and the kindred of the deceased
sufficiently proceed X’s paranoid personality spouse continues even after the death of the
disorder, thus incapacitating him to fully deceased spouse, regardless of whether the
comprehend and assume the essential marriage produced children or not. (Vda. de
obligations of marriage. (Tani-De La Fuente v. Carungcong v. People, G.R. No. 181409, 2010)
De La Fuente, Jr. G.R. No. 188400, 2017)
Subsequent Marriage Without Judicial
Incestuous Marriage (Art. 37) Declaration of Nullity of Previous Void
Whether the relationship is legitimate or Marriage
illegitimate: For purposes of remarriage, the only acceptable
a. Between ascendants and descendants of evidence that the previous marriage has been
any degree voided is a final judgment declaring such
b. Between brothers and sisters, whether full or marriage null and void; if the purpose is NOT TO
half blood REMARRY, other evidence can be presented to
prove the nullity of the previous marriage. (Art.
Void for Reasons of Public Policy (Art. 38) 40)
(exclusive list)
a. Between collateral blood relatives up to 4th Even if a marriage is void, it must be declared
civil degree void first by final judgment before the parties to
• There is no prohibition regarding such void marriage can remarry. The parties
marriages between collateral blood cannot decide for themselves the invalidity of
relatives by half-blood their marriage.
b. Between step-parents and step-children
c. Between parents-in-law and children-in-law ABSENCE of a formal requisite of solemnization
d. Between adopting parent and adopted child of Marriage –
e. Between surviving spouse of the adopter and
the adopted A judicial declaration of nullity is not needed
f. Between surviving spouse of the adopted and where the parties merely signed a marriage
the adopter contract on their own and NO marriage ceremony
g. Between adopted and a legitimate child of was performed by a duly authorized solemnizing
adopter officer. Such act alone, without more, cannot be
h. Between adopted children of same adopter deemed to constitute an ostensibly valid marriage
i. Between parties who, with the intention to (Morigo v. People, G.R. No. 145226, 2004).
marry the other, killed the other person’s
spouse or his/her own spouse VOID Marriage under the Civil Code –
• No prior criminal conviction by the
court is required by the law since If a marriage is void under a ground provided in
mere preponderance of evidence is the Civil Code and a subsequent marriage was
required to prove the killing contracted before the effectivity of the FC without
having the first marriage declared null and void,
The following can marry each other: the second marriage is valid. The Civil Code
a. Brother-in-law and sister-in-law contains no express provision on the necessity of
b. Stepbrother and stepsister a judicial declaration of nullity of a marriage
c. Guardian and ward considered void under the Civil Code. The
d. Adopted and illegitimate child of the adopter requirement of a judicial decree of nullity does not
e. Parties who have been convicted of adultery apply to marriages celebrated before the
or concubinage effectivity of the Family Code, particularly if the
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children of the parties were born while the Civil

Code was in force. (Castillo v. Castillo, G.R. No. ARTICLE 45 STD ARTICLE 46 STD
189607, 2016)
Ground for Type of fraud which is a
V. VOIDABLE MARRIAGE annulment ground for annulment
Grounds for Annulment (PUFFIS) (Art. 45)
a. Lack of Parental consent Does not have to Must be concealed
b. Either party is of Unsound mind be concealed
c. Fraudulent means of obtaining consent of
Must be serious Need not be serious and
either party
and appears to be appear to be incurable
• Circumstances constituting fraud (Art.
incurable
46)
i. Non-disclosure of conviction by final STD itself is a It is the concealment
judgment of crime involving moral ground for which constitutes the
turpitude annulment ground for annulment
ii. Concealment of pregnancy by another
man
iii. Concealment of sexually transmissible
disease, regardless of nature, existing
at the time of marriage
iv. Concealment of drug addiction,
habitual alcoholism, homosexuality and
lesbianism
d. Force, intimidation, or undue influence in
obtaining the consent of either party
e. Physical Incapability of either party to
consummate the marriage with the other, and
such incapacity continues and appears to be
incurable
• Doctrine of Triennial
Cohabitation: Presumption that
the husband is impotent should the
wife still remain a virgin after 3
years of living together with her
husband. Burden of proof to prove
non-impotency shifts to the
husband.
f. Affliction by either party of Sexually
Transmissible Disease found to be serious
and which appears incurable
NOTE: Grounds for annulment must exist at the

time of the celebration of the marriage.
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DISTINCTION BETWEEN VOID AND VOIDABLE MARRIAGES
BASIS VOID VOIDABLE
As to nature Inexistent from the time of performance Valid until annulled
As to Does not prescribe (Art. 39) Prescriptive period depends on

prescriptibility the ground/s invoked.
As to how May be attacked directly or collaterally but for a. Cannot be attacked

marriage may be the purpose of remarriage, there must be a collaterally, only directly (i.e.
impugned judicial declaration of nullity there must be a decree of
Direct: Only the spouses annulment)
Collateral: Any interested party in any b. Can no longer be impugned
proceeding where the determination of the after death of one of the
validity of the marriage is necessary to give parties
rise to or negate certain rights
Venue for action Family Court of the province or city where the petitioner or the respondent has
been residing for at least 6 months prior to the date of filing (if the respondent is
a non-resident: where he may be found in the Philippines) at the election of the
petitioner. (A.M. No. 02-11-10-SC)
As to Cannot be ratified Can be ratified either by free

susceptibility to cohabitation or prescription
ratification
As to effect on No community property, only co-ownership Absolute community exists

property (Art. 147/148) unless they agreed upon another
system in their marriage
settlement
As to effect on Children are illegitimate Children are legitimate if

children conceived before decree of
Except those falling under the following: annulment
In case of psychological incapacity (Art. 36)
Children born of subsequent marriage (Art.
53)
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SUMMARY FOR VOIDABLE MARRIAGES
GROUNDS FOR WHO CAN PRESCRIPTIVE PERIOD RATIFICATION

ANNULMENT (Art. FILE (Art. 47) (Art. 47) (Art. 45)
45)
Lack of parental Underage Within 5 years after Free cohabitation after reaching 21
consent party (18-21 turning 21
years old)
Parent or Before child reaches 21

guardian
Insanity of one party Sane spouse Before the death of the Free cohabitation after insane
who had no other party spouse regains sanity
knowledge of
insanity
Guardian of Any time before the death

insane spouse of either party
Insane spouse During lucid interval or

after regaining sanity also
before death of other party
Fraud Injured Party Within 5 years after Free cohabitation with full
discovery of fraud knowledge of facts constituting the
fraud
Vitiated consent Within 5 years from time Free cohabitation after the cause
force, intimidations or (force, intimidation, undue
undue influence influence) disappeared or ceased.
disappeared or ceased
Intimidation can be on the person
or the property of the injured party
and his/her immediate family
Incapability to Within 5 years after the No ratification since defect is

consummate/ STD marriage ceremony permanent, but right of action may
prescribe
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EFFECTS OF VALID BIGAMOUS MARRIAGE, DECLARATION OF NULLITY, AND ANNULMENT
VALID BIGAMOUS MARRIAGE (ART.

DECLARATION
BASIS 41) – WITH DECLARATION OF ANNULMENT
OF NULLITY
PRESUMPTIVE DEATH)
Children of subsequent marriage Children conceived
Illegitimate
conceived before its termination – or born before
Status of Children except Art. 36
legitimate annulment decree –
and Art. 53
legitimate
ACP/CPG shall be liquidated. Same if Art. 40
The share in the net profits of marriages:
community property of the spouse who ACP/CGG;
contracted the marriage in bad faith, otherwise, Co-
Property shall be forfeited in favor of common ownership. The ACP/CPG shall be
Relations children or if there are none, children of share of the liquidated.
the guilty spouse by previous marriage The share in the
or in default thereof, the innocent party in bad faith
in the co- net profits of
spouse.
ownership shall community property
be forfeited in of the spouse who
Shall remain valid except contracted the
favor of their
• If donee contracted the marriage in marriage in bad
common
bad faith, donations propter nuptias faith, shall be
children.
made to the donee are revoked by forfeited in favor of
Donations
operation of law. common children or
Propter Nuptias Same If void
• If both spouses acted in bad faith, if there are none,
under Art. 40. If
donations propter nuptias made by children of the
not, under 40,
one in favor of the other are revoked guilty spouse by
option belongs
by operation of law. previous marriage
to the donee.
If one spouse acted in bad faith, the (Art. 86[1]) or in default, the
innocent spouse may revoke his innocent spouse.
Insurance designation as beneficiary in the
insurance policy even if such designation
If marriage is
be stipulated as irrevocable. void, no Same as Art. 40
If one spouse contracted the marriage in successional
bad faith, he shall be disqualified to inherit rights involved.
Succession
from the innocent spouse in both testate
and intestate.
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VI. UNMARRIED COHABITATION D. LEGAL SEPARATION

Common-Law Marriages Not Recognized in I. GROUNDS
the Philippines
A common-law marriage may be defined as a Grounds for Legal Separation: (PRC-FAAL-
non-ceremonial or informal marriage by BILA) (Art. 55)
agreement, entered into by a man and a woman a. Repeated Physical violence or grossly
having capacity to marry, ordinarily without abusive conduct directed against petitioner, a
compliance with statutory formalities as those common child or a child of the petitioner
pertaining to marriage licenses (In Re; Zemmick) b. Physical violence or moral pressure to
compel the petitioner to change Religious or
The agreement must be: political affiliation
1. Coupled by consummation; c. Attempt of respondent to Corrupt or induce
2. Includes at least cohabitation as husband the petitioner, a common child, or a child of
and wife; and the petitioner, to engage in prostitution, or
3. Reputation in such a way that the public will connivance in such corruption or inducement
recognize the marital status (Huard v. d. Final judgment sentencing respondent to
Mcteigh and Drewy v. State) imprisonment of more than 6 years (even if
pardoned)
The Philippine law does not recognize common- e. Drug Addiction or habitual Alcoholism
law marriages because the Civil Code and the f. Lesbianism or homosexuality
New Family Code expressly and mandatorily g. Subsequent Bigamous marriage
provide that the intervention in a valid marriage h. Sexual Infidelity or perversion
ceremony of an ecclesiastical or civil functionary i. Attempt by respondent against the Life of the
authorized by the state to solemnize marriage petitioner
constitutes one of the indispensable requisites for j. Abandonment for more than 1 year without
a valid marriage. Moreover, the contracting justifiable cause
parties must appear before the authorized
solemnizer and personally declare in his II. DEFENSES
presence that they take each other as husband
and wife. Only ceremonial marriage, where Grounds to Deny Legal Separation/Defenses
solemnization is an inherent aspect, is to Legal Separation: (C4-D-GRP) (Art. 56)
recognized in the Philippines. a. Condonation
NOTE: Failure of the husband to look for his
Articles 147 and 148 govern the property adulterous wife is not a condonation of wife’s
regime between a man and a woman who: adultery.
1. Are capacitated/not capacitated to marry b. Consent
each other; c. Connivance
2. Live exclusively with each other as husband d. Collusion
and wife; and e. Death of either party during the pendency of
3. Without the benefit of marriage or under a the case (Lapuz-Sy v. Eufemio, G.R. No. L-
void marriage 30977, 1972).
f. Equal Guilt
————- end of topic ————- g. Reconciliation of the spouses during the
pendency of the case (Art. 66)
h. Prescription
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III. PROCEDURE conjugal partnership property. The

administrator appointed by the court shall
When to file/try an action for legal separation have the same powers and duties as those of
An action for legal separation shall be filed within a guardian under the Rules of Court.
5 years from the time of occurrence of the cause
(Art. 57). The time of discovery of the ground for V. EFFECTS OF PENDENCY
legal separation is not material in the counting of
the prescriptive period. Effects of Pendency of Action for Legal
Separation (Art. 62 in relation to Art. 49)
The action for legal separation shall not be tried During the pendency of the action and in the
before 6 months shall have elapsed since the absence of adequate provisions in a written
filing of the petition, (Art. 58) except interlocutory agreement between the spouses, the Court shall
matters such as the determination of custody of provide for the following:
children, alimony and support pendente lite. a. The support of the spouses
b. The custody and support of their common
No legal separation may be declared unless the children;
court has taken steps towards the reconciliation NOTE: The Court shall give paramount
of the spouses and is fully satisfied, despite such consideration to the moral and material
efforts, that reconciliation is highly improbable. welfare of said children and their choice as to
(Art. 59) the parent with whom they wish to remain
c. Appropriate visitation rights of the other
The six-month-cooling-off-period requirement parent
can be dispensed with if the ground for legal
separation involves violence against the woman VI. EFFECTS OF DECREE OF LEGAL
or the child. Thus, the Court shall proceed on the SEPARATION (ART. 63)
main case and other incidents of the case as soon a. Spouses are entitled to live separately
as possible (Sec. 28, RA 9262). b. Marriage bond is not severed
c. Dissolution of property regime
Stipulation of Facts or Confession of d. Forfeiture of the share of the guilty spouse in
Judgement the net profits of the ACP/CPG
No decree of legal separation shall be based
upon a stipulation of facts of confession of NOTE: For purposes of computing the net profits
judgement. In any case, the court shall order the subject to forfeiture, the said profits shall be the
prosecuting attorney or fiscal assigned to it to increase in value between the market price of the
take steps to prevent collusion between the community property at the time of the celebration
parties and to take care that the evidence is not of the marriage and at the time of dissolution.
fabricated or suppressed. (Art. 60) What is forfeited is not the share of the guilty
spouse in the liquidation of the community
IV. EFFECTS OF FILING property but merely the profits. (Siochi v. Gozon
GR Nos. 169900 and 169977, 2010)
Effects of Filing a Petition for Legal
Separation (Art. 61) If there is no separate property, the net remainder
a. The spouses shall be entitled to live is the profit and therefore the remainder (which
separately from each other includes the profit) pertaining to the share of the
b. The court, in the absence of a written guilty spouse is his/her entire share which must
agreement between the spouses, shall be forfeited (Quiao v. Quiao, 2012)
designate either of them or a third person to
administer the absolute community or
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e. Custody of minor children to innocent spouse

(subject to Art. 213: parental authority shall Effects of Reconciliation
be exercised by parent designated by the a. The legal separation proceedings, if still
court) pending, shall thereby be terminated at
whatever stage (Art. 66)
The imposed custodial regime under the second b. The final decree of legal separation shall be
paragraph of Article 213 is limited in duration, set aside (Art. 66)
lasting only until the child’s seventh year. From c. The separation of property and any forfeiture
the eighth year until the child’s emancipation, the of the share of the guilty spouse already
law gives the separated parents freedom, subject effected shall subsist, unless the spouses
to the usual contractual limitations, to agree on agree to revive their former property regime
custody regimes they see fit to adopt (Dacasin vs. (Art. 66)
Dacasin, G.R. No. 168785, 2010). d. Joint custody of the children is restored
e. The right to intestate succession by the guilty
f. Guilty spouse is disqualified from intestate spouse from the innocent spouse is restored
succession and provisions made by innocent f. The right to testamentary succession
spouse in his favor in a will shall be revoked depends on the will of the innocent spouse
by operation of law
VIII. EFFECT OF DEATH OF ONE OF THE
Effects Upon Finality of the Decree (Art. 64) PARTIES
(a) Innocent spouse may revoke the donation
made by him or her in favor of the offending Effect of Death (Sec. 21, Rule on Legal
spouse. The revocation of the donations Separation, A.M. No. 02-11-11-SC)
shall be recorded in the registries of property In case a party dies at any stage of proceedings
in the places where the properties are before the entry of judgment, the court shall order
located. However, alienations, liens and the case closed and terminated without prejudice
encumbrances registered in good faith before to the settlement of estate proper proceedings in
the recording of the complaint for revocation the regular courts.
in the registries of property shall be
respected. If the party dies after the entry of judgment, the
(b) Innocent spouse may revoke designation of same shall be binding upon the parties and their
guilty spouse as beneficiary in the insurance successors in interest in the settlement of the
policy even if such designation be stipulated estate in the regular courts.
as irrevocable. The revocation of or change
in the designation of the insurance ————- end of topic ————-
beneficiary shall take effect upon written
notification to the insured. E. RIGHTS AND OBLIGATIONS BETWEEN
HUSBAND AND WIFE
NOTE: Action to revoke the donation must be
brought within 5 years from the time the decree Obligations of Husband and Wife (L2H2DS)
has attained finality. (Art. 68-71)
a. Live together
VII. RECONCILIATION b. Observe mutual Love, respect and fidelity
Reconciliation c. Render mutual Help and support
If the spouses should reconcile, a corresponding d. Management of the Household
joint manifestation under oath duly signed by e. Fix the family Domicile
them shall be filed with the court in the same f. Joint responsibility for the Support of the
proceeding for legal separation (Art. 65). family
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Fixing the Family Domicile (Art. 69) NOTE: This is without prejudice to the rights of
General rule: The husband and wife shall fix the creditors who acted in good faith.
family domicile
Except: In case of disagreement, the court shall ————- end of topic ————-
decide.
F. PROPERTY RELATIONS OF THE
NOTE: The Court may exempt one spouse from SPOUSES
living with the other if the latter should live abroad
or there are other valid and compelling reasons, What Governs Property Relations Between
unless it is not compatible with the solidarity of the Spouses (Art. 74)
family. a. Marriage Settlement – future spouses may
agree upon the regime of ACP, CPG,
Sources for Support and Management of complete separation of property, or any other
Household (Art. 70-71): regime
a. From the community property b. Family Code – if there is no marriage
b. In the absence thereof, from the income or settlement or when the regime agreed upon
fruits of the separate properties therein is void, the system of ACP shall
c. In case of insufficiency or absence thereof, govern
from their separate properties c. Local customs
Right to Bring an Action in Court (Art. 72) General Rule: Property Relations are governed
When one of the spouses neglects his or her by Philippine laws (Art. 80)
duties to the conjugal union or commits acts
which tend to bring danger, dishonor, or injury to Exceptions:
the other or to the family, the aggrieved party may a. When there is a contrary stipulation in the
apply to the court for relief. marriage settlement
b. When both are aliens, even if married in the
Profession (Art. 73) PH
General Rule: Either spouse may exercise any c. As to extrinsic validity of contracts affecting
legitimate profession, business, or activity without property not situated in the Philippines (Art.
the consent of the other. 80).
Exception: The other spouse may object on I. MARRIAGE SETTLEMENTS

valid, serious and moral grounds. In case of
disagreement, the court shall decide whether: Requisites of a Valid Marriage Settlement:
a. The objection is proper, and (WSB-TCR)
b. Benefit has accrued to the family before or 1. In Writing;
after the objection. 2. Signed by the parties;
3. Executed Before the celebration of marriage
If benefit accrued to the family before the 4. To fix the Terms and conditions of their
objection, the resulting obligation shall be property relations;
enforced against the community property. 5. If the party executing the settlement is under
Civil interdiction or any other disability, the
If benefit accrued to the family after the objection guardian appointed by the court must be
has been made, the resulting obligation shall be made a party to the settlement (Art. 79); and
enforced against the separate property of the 6. Registration (merely to bind 3rd persons)
spouse who has not obtained consent (R.A.
10572, 2013)
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Requisites for a Valid Modification of Marriage b. Marriage is Annulled and donee is in bad
Settlement: faith
a. In writing; c. If it is with a Resolutory condition and the
b. Signed by the parties; condition is complied with
c. Executed before the celebration of the d. Marriage is Not celebrated
marriage, unless: e. Donee commits acts of Ingratitude such
i. there is a revival of property regime as:
in case of reconciliation in legal i. Commits an offense against the person,
separation proceedings (Art. 66- honor or property of the donor, his wife,
67) or children under his parental authority
ii. there is sufficient cause for judicial ii. Imputes to the donor any criminal offense
separation of property under Art. or any act involving moral turpitude,
135 unless the crime was committed against
iii. spouses file for voluntary the donee himself, his wife, or children
dissolution of property regime under his authority
under Art. 136 iii. Unduly refuses to support the donor
d. Registration: to bind 3rd persons when he is legally or morally bound to
give such support
Effectivity of a Marriage Settlement in f. Marriage is judicially declared Void Ab
Consideration of Future Marriage initio
Everything stipulated in the settlements or g. In Legal separation and donee is the
contracts referred to in the preceding articles in guilty spouse
consideration of a future marriage, including
donation made between prospective spouses, NOTE: In case of donations included in the
shall be void if the marriage does not take place. marriage settlement, when the marriage
Stipulations not dependent on the celebration of thereafter is not celebrated or is judicially
the marriage shall be valid (Art. 81). declared void ab initio, all donations made by
reason of said marriage shall be void, while those
II. DONATIONS BY REASON OF MARRIAGE not dependent shall remain valid.
Requisites: (BCF) (Art. 82) DONATION PROPTER NUPTIAS VS

1. Made Before celebration of marriage; ORDINARY DONATION
2. In Consideration of marriage; and BASIS DONATIONS ORDINARY
3. In Favor of one or both future spouses PROPTER DONATIONS
NUPTIAS
General Rule: Future spouses cannot donate to
each other more than 1/5 of their present Formalities Governed by Governed by
property. Any excess shall be considered void the rules on rules on
(Art. 84). ordinary donations
donations (Arts. 725-773
Exception: If they are governed by ACP except if future NCC)
(because they own everything in common) property, it
must conform
Grounds to Revoke Donation Propter Nuptias: with the
(CARNIVAL) (Art. 86) formalities of
a. Marriage without the needed parental wills
Consent
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Present If in marriage No person

Property settlement: may give or
May be receive, by
donated but up way of
to 1/5 of donation, more
donor's than he may
present give or receive
property (Art. by will. (Art.
84) ; otherwise 752 NCC)
Art. 752
applies
Future May be Cannot be

Property included included
provided,
donation is
mortis causa
Grounds Art. 86 of Arts. 752, 760,

for Family Code 764, 765 NCC
Revocation
III. VOID DONATIONS BY THE SPOUSES
Void Donations by Spouses (Art. 87)

General Rule: Every donation or grant of
gratuitous advantage, direct or indirect, between
the spouses during the marriage shall be void.
Exceptions:
a. Moderate gifts which the spouses
may give each other on the occasion
of any family rejoicing
b. Donation mortis causa
NOTE: The prohibition shall also apply to persons

living together as husband and wife without a
valid marriage.
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BASIS DONATIONS PROPTER NUPTIAS ORDINARY DONATIONS

Formalities Governed by the rules on ordinary Governed by rules on donations
donations except if future property, it (Arts. 725-773 NCC)
must conform with formalities of wills
Present Property May be donated but up to 1/5 of donor's No person may give or receive, by
present property way of donation, more than he may
give or receive by will. (Art. 752)
Future Property May be included provided donation is Cannot be included

mortis causa
Grounds for Art. 86 of Family Code Arts. 752, 760, 764, 765 NCC
revocation
Prescriptive Periods for Filing Action for Revocation of Donation Propter Nuptias
(Based on Sta. Maria)
If marriage is not celebrated 5 years (Art. 1149 NCC) from the time marriage is not
(Except: donations in marriage settlements solemnized on the fixed date
automatically void if marriage not celebrated)
If marriage is judicially declared void (Note: By operation of law if donee-spouse contracted

deleted items – no distinction made by law) subsequent void marriage in bad faith, and if not, 5
years from finality of judicial declaration of nullity
When marriage takes place without the 5 years from celebration of marriage
required parental consent
If resolutory condition is complied with 5 years from happening of condition
When marriage is annulled and donee is in 5 years from finality of decree
bad faith
If donee commits an act of ingratitude 1 year from donor’s knowledge of that fact
In case of legal separation 5 years from the time the decree of separation has
become final
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IV. ABSOLUTE COMMUNITY OF PROPERTY c. Property for personal and exclusive use,
except jewelry
Absolute Community of Property (ACP) d. Property acquired before the marriage by
The property regime of spouses in the absence of either spouse who has legitimate
a marriage settlement or when the regime agreed descendants by a former marriage and its
upon is void (Art. 75) fruits and income
Presumption of Community Property: (Art. 93)
NOTE: It shall commence at the precise moment Property acquired during the marriage is
that the marriage is celebrated. Any stipulation, presumed to belong to the community, unless it is
express or implied, for the commencement of the proved that it is one of those excluded therefrom.
regime at any other time, shall be VOID (Art. 88).
Charges Upon and Obligations of the ACP
No waiver of rights, interests, shares and effects (Art. 94)
of the ACP during the marriage, except in case of a. Support of spouses, their common children
judicial separation of property. The waiver must and legitimate children of either spouse
be in a public instrument. Creditors of the spouse b. Debts and obligations contracted during the
who made such waiver may petition the court to marriage
rescind the waiver to the extent that is sufficient • By a designated administrator-spouse for
to cover the amount of the credit (Art. 89). the benefit of the community
• By both spouses
Property acquired during the marriage, whether • By one with the consent of the other
acquisition appears to have been made in the • By either spouse without the consent of
name of one or both spouses, is PRESUMED to the other to the extent that it benefited the
belong to the community (Art. 93). family
c. Taxes, liens, charges and expenses
The original property regimes subsisting under including major or minor repairs upon
the New Civil Code when the Family Code took community property
effect are immutable and remain effective. d. Taxes and expenses for mere preservation
made during the marriage upon the separate
Art. 256 provides that the Family Code shall have property of either spouse used by the family
retroactive effect insofar as it does not prejudice e. Expenses for professional or vocational
or impair the vested or acquired rights in course
accordance with the Civil Code or other laws. f. Ante-nuptial debts which redounded to the
benefit of the family
General Rule: The community property consists g. Donated or promised to common legitimate
of all the property owned by the spouses before, children for profession, vocational course or
at the time of, or after the celebration of the self-improvement
marriage (Art. 91). h. Other ante-nuptial debts, support of
illegitimate child, and liabilities for crime or
Exceptions/Exclusions from Community quasi-delicts in the absence of separate
Property (Art. 92) property are chargeable against the separate
a. Those indicated in the marriage settlement properties of the spouses but may be
(Art. 91) advanced by the ACP in case of absence or
b. Property acquired during the marriage by insufficiency of the exclusive property of the
gratuitous title plus its fruits and income, debtor-spouse
except when the donor, testator, or grantor i. Expenses of litigation between spouses
expressly provides otherwise unless the suit is found to be groundless
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NOTE: If the community property is insufficient to years from the date of the contract
cover all these liabilities (except those falling implementing the husband’s decision
under cases of absence or insufficiency of the b. In case of incapacity of one spouse or
exclusive property of the debtor-spouse), the inability to administer the common
spouses shall be solidarily liable for the unpaid properties, the other spouse may
balance with their separate properties. assume sole powers of administration,
except powers of disposition and
A loan used for the family business is one which encumbrance which requires authority
redounds to the benefit of the family, even if the from the court or written consent of the
business fails (ROS v. Phil National Bank, GR No. other spouse
170166, 2011).
In the absence of such authority or consent, the
Under the Family Code, one spouse cannot sell disposition or encumbrance shall be void.
property which is part of the community However, the transaction shall be construed as a
properties without the written consent of the other continuing offer on the part of the consenting
spouse or the authority of the court. Without such spouse and the third person, and may be
consent or authority, the entire sale is void. While perfected as a binding contract upon the
the law does not require a person dealing with acceptance by the other spouse or authorization
registered land to inquire further than what the of the court before the offer is withdrawn by either
Torrens Title on its face indicates, the rule is not or both offerors.
absolute. If there are other surrounding
circumstances relevant to the sale which show Donation of Community Property
that the purchaser should have taken the General rule: Neither spouse may donate any
necessary precaution required of a prudent community property without the consent of the
buyer, the purchaser cannot be considered in other
good faith. (Nobleza v. Nuega G.R. No. 193038, Exception: Moderate donations for charity or on
2015) occasions of family rejoicing or family distress
In order to be considered a buyer in good faith, Dissolution of the ACP (Art. 99)
the following must be shown: (a) the diligence in a. Upon death of either spouse
verifying the validity of the title covering the b. Decree of legal separation
property; and (b) the diligence in inquiring into the c. Marriage is annulled or nullified
authority of the transacting spouse to sell d. Judicial separation of property during the
conjugal property in behalf of the other spouse. marriage (Arts. 134-138)
Mere reliance on the SPA given by the selling
spouse without further questioning despite Liquidation of the ACP (Art. 102)
knowing that the lots were conjugal property is a. Inventory of all properties
insufficient. (Spouses Aggabao v. Parulan, G.R. • Inventory of community property
No. 165803, 2010) • Inventory of separate property of the wife
• Inventory of separate property of the
Administration, Enjoyment, and Disposition husband
of Community Property (Art. 96) b. Debts and obligations of ACP are paid
General rule: It shall belong to both spouses • In case of insufficiency of assets, the
jointly spouses shall be solidarily liable for the
Exceptions: unpaid balance with their separate
a. In case of disagreement, the husband’s properties.
decision shall prevail subject to recourse c. Remainder of the separate properties of the
by the wife in court to be availed within 5 spouses are returned to the owner
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d. Net remainder of the ACP is divided equally a. Proceeds, products, fruits and income of
between husband and wife separate properties of spouses
• Unless a different proportion is agreed b. Everything acquired by spouses through their
upon in the marriage settlement or there efforts
has been a voluntary waiver of such c. Everything acquired by spouses through
share chance
e. Presumptive legitimes of children are
delivered It shall commence at the precise moment that the
f. Adjudication of conjugal dwelling and custody marriage is celebrated. Any stipulation, express
of common children or implied, for the commencement of the regime
• Given to the spouse to whom the majority at any other time shall be void.
of the common children choose to remain
No waiver of rights allowed during the marriage
In an absolute community regime, the net profits except in case of judicial separation of property.
shall be the increase in value between the market The waiver must be in a public instrument.
value of the community property at the time of the
celebration of the marriage and the market value The fruits, natural, industrial, or civil, due or
at the time of its dissolution. In a conjugal received during the marriage from the common
partnership of gains regime, the net profits of the property, as well as the net fruits from the
conjugal partnership of gains are all the fruits of exclusive property of each spouse are included in
the separate properties of the spouses and the the conjugal partnership properties. (Art. 117(3))
products of their labor and industry. In this case,
since the petitioner is the guilty party in the legal What Constitutes CPG (FOLCHIC) (Art. 117)
separation, his share from the net profits is a. Fruits of conjugal property due or received
forfeited in favor of the common children. In both during the marriage and net fruits of separate
regimes (assuming that it was ACP), petitioner, property
as the guilty spouse, is not entitled to any property b. Those acquired through Occupation
at all. The husband and the wife did not have any c. Livestock in excess of what was brought to
separate properties. Therefore, there is no the marriage
separate property which may be accounted for in d. Those acquired by onerous title during the
the guilty party’s favor. (Quiao v. Quiao G.R. No. marriage with Conjugal funds
176556, 2012) e. Share in Hidden treasure
f. Those obtained from labor, Industry, work or
V. CONJUGAL PARTNERSHIP OF GAINS profession of either or both spouse
g. Those acquired by Chance
When applicable: If the spouses agree in the
marriage settlement to be governed by the Exclusive Property in CPG (Art. 109)
regime of conjugal partnership of gains a. That brought into the marriage as his/her own
b. That acquired during the marriage
Governing law: The marriage settlement shall gratuitously (net fruits and income are
primarily govern but the provisions of the Family conjugal)
Code on CPG shall apply suppletorily. The rules c. That acquired by redemption, barter or
on contract of partnership shall also apply in all exchange with exclusive property
that is not in conflict with the marriage settlement d. That purchased with exclusive money
and the provisions of the Family Code on CPG.
Presumption of Conjugality (Art. 116)
The spouses contribute the following to a Property acquired during the marriage, whether
common fund (Art. 106): acquisition appears to have been made in the
name of one or both spouses, is presumed to be
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conjugal. The party who invokes the presumption becomes conjugal (subject to reimbursement of
must first prove that the property was acquired the value of the property of the owner-spouse)
during the marriage. Otherwise, the presumption Charges upon CPG (Art. 121)
of conjugality will not apply. (Tan v. Andrade, G.R. Same as that under ACP, except that under taxes
Nos. 171904 & 172017, 2013) and expenses for preservation of separate
property of either spouse during the marriage →
Installment purchases (Art. 118) property need not be used by the family
Property bought on installments paid partly from
exclusive funds and party from conjugal funds: NOTE: If the conjugal partnership is insufficient,
• Belongs to the buyer/s: If full ownership the spouses shall be solidarily liable for the
vested before the marriage unpaid balance with their separate properties.
• Belongs to the conjugal partnership: If full
ownership vested during the marriage The conjugal partnership property shall likewise
be liable for the payment of the personal debts of
In either case, any amount advanced by the either spouse insofar as they have redounded to
partnership or by either or both spouses shall be the benefit of the family. (Art. 121)
reimbursed by the owner upon liquidation.
Payment of criminal indemnities can be advanced
Credits in Installment (Art. 119) by the conjugal partnership assets even before
Whenever an amount or credit payable within a these are liquidated. It may be enforced against
period of time belongs to one of the spouses: the partnership assets after the responsibilities in
• Belongs to the spouse: Sums collected in Article 121 have been covered. No prior
partial payments or by installments during the liquidation of those assets is required. (Pana v.
marriage Heirs of Juanite, Sr., G.R. No. 165201, 2012)
• Belongs to the conjugal partnership:
Interests falling due during the marriage on J. Leonen: Although the mortgage is void as
the principal a spouse's consent is indispensable for the
disposition or encumbrance of conjugal
Rules in Cases of Improvement of Exclusive properties, the principal obligation [loan
Property contracted during their marriage] remains
General Rule: The ownership of improvements valid. Article 122 of the Family Code applies to
made on the separate property of the spouses at debts that were contracted by a spouse and
the expense of the partnership or through efforts redounded to the benefit of the family. It
of both spouses shall pertain to the partnership. applies specifically to the loan that X
(Art. 120) contracted, but not to the mortgage. In this
case, the loan was used as additional working
Accession– if the cost of the improvement and capital for Y’s printing business. There is a
any resulting increase in value are equal or less presumption that it redounded to the benefit
than the value of the entire property at the time of of the family; hence, the conjugal partnership
the improvement, the entire property remains the may be held liable for the loan amount.
exclusive property of the owner-spouse (subject Although petitioner cannot foreclose the
to reimbursement of improvement cost to the mortgage over the conjugal property in
CPG) question since mortgage was void, it can still
recover the loan amount from the conjugal
Reverse Accession – if the cost of the partnership. (Philippine National Bank v.
improvement and any resulting increase in value Reyes, Jr., G.R. No. 212483, 2016.)
are more than the value of the entire property at
the time of the improvement, the property Administration and Enjoyment of CPG (Art.
124): Same as that under ACP
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time that either parent is chosen to be the

Donation of Conjugal Property (Art. 125): custodian. (Beckett v. Sarmiento, Jr., 2013).
Same as that under ACP
Dissolution of the CPG (Art. 126): Same as that

under ACP
An extrajudicial dissolution of the conjugal
partnership without judicial approval is void. A
notary public should not facilitate the
disintegration of a marriage and the family. In so
doing, a notary public may be held accountable
administratively. (Rodolfo Espinoso v. Juliet
Omana, A.C. 9081, 2011)
Liquidation of the CPG (Art. 129)

a. Inventory of all property
b. Amounts advanced by CP in payment of
personal debts and obligations of either
spouse is credited
c. Reimbursement for use of exclusive funds
d. Debts and obligations of the CP are paid
• In case of insufficiency of assets, the
spouses shall be solidarily liable for the
unpaid balance with their separate
properties.
e. Remains of exclusive properties are returned
f. Indemnify loss of deterioration of movables
belonging to either spouse used for the
benefit of the family
g. Net remainder of conjugal property is divided
equally
• Unless a different proportion is agreed
upon in the marriage settlement or there
has been a voluntary waiver or forfeiture
of such share
h. Delivery of children’s presumptive legitimes
i. Adjudication of conjugal dwelling and custody
of children
• Given to the spouse to whom the majority
of the common children choose to
remain.
An earlier judgment on the custody of the child

does not serve as res judicata on a subsequent
judgment. Grant of custody is never final and can
always be re-examined and adjusted. The
welfare, the best interests, the benefit, and the
good of the child must be determined as of the
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DISTINCTION BETWEEN ABSOLUTE COMMUNITY PROPERTY AND CONJUGAL PARTNERSHIP

OF GAINS
ABSOLUTE COMMUNITY OF PROPERTY CONJUGAL PARTNERSHIP OF GAINS
What it consists of
All the property owned by the spouses before, at 1. Fruits of conjugal property due or received
the time of, or after the celebration of the marriage. during the marriage and net fruits of
(Art. 91) separate property
2. Those acquired through Occupation
3. Livestock in excess of what was brought to
the marriage
4. Those acquired during the marriage with
Conjugal funds
5. Share in Hidden treasure
6. Those obtained from labor, Industry, work
or profession of either or both spouse
7. Those acquired by Chance (Art. 117)
8. The ownership of improvements made on
the separate property of the spouses at the
expense of the partnership or through
efforts of both spouses shall pertain to the
partnership (Art. 120)
What remains as exclusive property
1. Property acquired before the marriage by 1. That brought into the marriage as his/her
either spouse who has legitimate own
descendants by a former marriage and its 2. That acquired during the marriage
fruits and income gratuitously
2. Property for personal and exclusive use, 3. That acquired by redemption, barter or
except jewelry exchange with exclusive property
3. Property acquired during the marriage by 4. That purchased with exclusive money (Art.
gratuitous title plus its fruits and income, 109)
except when the donor, testator, or grantor
expressly provides otherwise (Art. 92)
Presumption
Property acquired during the marriage is presumed All property acquired during the marriage, whether
to belong to the community, unless it is proved that the acquisition appears to have been made,
it is one of those excluded therefrom (Art. 93) contracted or registered in the name of one or both
spouses, is presumed to be conjugal unless the
contrary is proved (Art. 116)
Charges and Obligations
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1. Debts and obligations contracted during 1. The support of the spouse, their common
the marriage: children, and the legitimate children of
• By either spouse without the consent either spouse
of the other to the extent that it 2. All debts and obligations contracted during
benefited the family the marriage by the designated
• By designated administrator-spouse administrator-spouse for the benefit of the
By both spouses conjugal partnership of gains, or by both
• By one with the consent of the other spouses or by one of them with the consent
2. Taxes, liens, charges and expenses of the other
including major or minor repairs, upon 3. Debts and obligations contracted by either
community property spouse without the consent of the other to
3. Support of spouses, their common children the extent that the family may have
and legitimate children of either spouse benefited
4. Expenses of litigation between spouses 4. All taxes, liens, charges, and expenses,
unless the suit is found to be groundless including major or minor repairs upon the
5. Ante-nuptial debts which redounded to the conjugal partnership property
benefit of the family 5. All taxes and expenses for mere
6. Taxes and expenses for mere preservation preservation made during the marriage
made during the marriage upon the upon the separate property of either
separate property of either spouse used by spouse
the family 6. Expenses to enable either spouse to
7. Expenses for professional or vocational commence or complete a professional,
course vocational, or other activity for self-
8. Other ante-nuptial debts, support of improvement
illegitimate child, and liabilities for crime or 7. Ante-nuptial debts of either spouse insofar
quasi-delicts in absence of separate as they have redounded to the benefit of
property are chargeable against the the family
separate properties of the spouses but 8. The value of what is donated or promised
may be the advanced by the ACP in case by both spouses in favor of their common
of absence or insufficiency of the exclusive legitimate children for the exclusive
property of the debtor-spouse purpose of commencing or completing a
9. Donated or promised to common professional or vocational course or other
legitimate children for profession, activity for self-improvement
vocational course or self-improvement 9. Expenses of litigation between the spouses
(Art. 94) unless the suit is found to be groundless
(Art. 121)
Liquidation
1. Inventory of all properties 1. Inventory of all property

• Inventory of community property 2. Amounts advanced by CP as payment for
• Inventory of separate property of the personal debts and obligations of either
wife spouse are credited
• Inventory of separate property of the 3. Reimbursement for use of exclusive funds
husband 4. Debts and obligations of the CP are paid
2. Debts and obligations of ACP are paid 5. Remains of exclusive properties are
3. Remainder of the separate properties of returned
the spouses are returned to the owner
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4. Net remainder of the ACP is divided 6. Indemnify loss of deterioration of movables

equally between husband and wife belonging to either spouse used for the
5. Presumptive legitimes of children are benefit of the family
delivered 7. Net remainder of conjugal property is
6. Adjudication of conjugal dwelling and divided equally
custody of common children (Art. 102) 8. Delivery of children’s presumptive
legitimes
9. Adjudication of conjugal dwelling and
custody of children (Art. 129)
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VI. REGIME OF SEPARATION OF PROPERTY VII. JUDICIAL SEPARATION OF PROPERTY
When applicable: If provided under the marriage When applicable: In case of a judicial order,
settlement (Art. 134) which may either be voluntary or for sufficient
cause. (Art. 134)
Properties Included Voluntary separation (Art. 136)
The parties may agree on the extent of their The spouses may jointly file a verified petition with
separation of property regime. It may involve the court
present or future property or both. It may be total
or partial. If it is partial, the property not agreed All creditors of the absolute community or of the
upon as separate shall pertain to the absolute conjugal partnership of gains, as well as the
community (Art. 144) personal creditors of the spouse, shall be listed in
the petition and notified of the filing thereof
Rights and Liabilities of the Spouses
Each spouse shall: The court shall take measures to protect the
a. Own, dispose of, possess, administer creditors and other persons with pecuniary
and enjoy his or her own separate estate, interest
without need of the consent of the other
b. Own all earnings from his or her own Sufficient cause for judicial separation (Art.
profession, business or industry 135):
c. Own all fruits, natural, industrial or civil, a. That the spouse of the petitioner has been
due or received during the marriage from sentenced to a penalty which carries with it
his or her separate property (Art. 145) civil interdiction
b. That the spouse of the petitioner has been
Both spouses shall bear the family expenses in judicially declared an absentee
proportion to their income, or, in case of c. That loss of parental authority of the spouse
insufficiency or default thereof, to the current of petitioner has been decreed by the court
market value of their separate properties. The d. That the spouse of the petitioner has
liability of the spouses to creditors for family abandoned the latter or failed to comply with
expenses shall be solidary. (Art. 146) his or her obligations to the family as provided
for in Article 101
Grounds for Transfer of Administration of e. That the spouse granted the power of
Exclusive Property of Either Spouse: (GACA) administration in the marriage settlements
(ART. 142) has abused that power
a. One spouse becomes Guardian of the other f. That at the time of the petition, the spouses
b. One spouse is judicially declared Absent have been separated in fact for at least one
c. One spouse is sentenced to penalty with Civil year and reconciliation is highly improbable.
interdiction In the cases provided for in letters (a), (b) and (c),
d. One spouse becomes a fugitive from justice the presentation of the final judgment against the
or is hiding as an Accused in a criminal case guilty or absent spouse shall be enough basis for
the grant of the decree of judicial separation of
If the other spouse is not qualified by reason of property.
incompetence, conflict of interest, or any other
just cause, the court shall appoint a suitable
person to be the administrator.
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VIII. PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE
ARTICLE 147 ARTICLE 148
Applicability A. To a man and woman who are: a. To a man and woman who are:
1. Capacitated to marry each 1. Not capacitated to marry
other: each other (under 18 years
a. At least 18 years old old)
b. Not Article 37 2. Live exclusively with each
(incestuous void other as husband and wife
marriage) 3. Without the benefit of
c. Not Art. 38 (void marriage
marriage by reason of b. Adulterous relationship (e.g.
public policy) concubinage)
d. Not bigamous c. Bigamous or polygamous
2. Live exclusively with each other marriage (Art. 35(4))
as husband and wife d. Incestuous marriages under Art.
3. Without the benefit of marriage 37
e. Void marriages by reason of
B. Other void marriages/live-in public policy under Art. 38
Note: If capacitated, but relationship is

NOT exclusive, it will fall under this
provision
Salaries and Owned by parties in equal shares Exclusively owned and if any of the
Wages spouses is married, his salary is the
property of the ACP/CPG of his legitimate
marriage
Properties Remains exclusive provided that there is Remains exclusive

acquired proof that it was acquired by exclusive
through funds
exclusive funds
Property Presumed to have been obtained by Only the properties acquired by both
acquired while their joint efforts, work or industry and parties through their actual joint
living together shall be owned by them in equal shares contribution of money, property, or
industry shall be owned by them in
If a party did not participate in the common proportion to their respective
acquisition—deemed to have contributions.
contributed jointly if efforts consisted in
the care and maintenance of the family Without proof of actual contribution by
and the household both parties, there can be no presumption
of co-ownership and equal sharing
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Encumbrance Neither party can encumber or dispose

or disposal of by acts inter vivos of his/her share in the
his/her share property acquired during cohabitation
and owned in common, without the
consent of the other, until after the
termination of their cohabitation
Forfeiture Share will be forfeited in favor of their If the party who acted in bad faith is not
common children, descendants, or validly married to another, his/her share
innocent party. In case of default of or shall be forfeited in favor of their common
waiver by any or all of the common children, descendants, or innocent party.
children or their descendants, each
vacant share shall belong to the If the party who acted in bad faith is not
respective surviving descendants. In the validly married to another, his or her shall
absence of descendants, such share be forfeited in favor of their common
shall belong to the innocent party. children, descendants, or innocent party
In all cases, the forfeiture shall take Rules on forfeiture of shares will apply
place upon termination of the even if both are in bad faith.
cohabitation.
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The registration of a property in the name of the this presumption to arise, proof of actual
paramour who had no income whatsoever at the contribution was required. Petitioner failed to
time of the donation by another’s husband is prove that she made an actual contribution to
tantamount to a donation which is void under purchase the condominium unit. (Soledad L.
Article 87 of the Family Code. The paramour then Lavadia v. Heirs of Juan Luces Luna G.R. No.
holds the property under a constructive trust 171914 2015)
under Article 1456 in favor of the conjugal
partnership of the husband with the legitimate ————- end of topic ————-
spouse (Joaquino v. Reyes, G.R. No. 154645,
2004). G. THE FAMILY
I. CONCEPT OF FAMILY
Under Art. 147, property acquired by both
spouses through their work and industry shall be Family (Art. 149)
governed by the rules on equal co-ownership. Basic social institution which public policy
Any property acquired during the union is prima cherishes and protects.
facie presumed to have been obtained through
their joint efforts. Here, the former spouses both Family Relations
agreed that they acquired the subject property a. Between husband and wife
during the subsistence of their marriage. Thus, it b. Between parents and children
shall be presumed to have been obtained by their c. Among other ascendants and descendants
joint efforts, work or industry, and shall be jointly d. Among brothers and sisters, full or half blood.
owned by them in equal shares (Barrido v. (Art. 150)
Nonato, 2014).
II. EFFECTS ON LEGAL DISPUTES
Under Article 148, there must be proof of actual
joint contribution by both the live-in partners
Suit Between Family Members (Art. 151)
before the property becomes co-owned by them
General Rule: No suit between members of the
in proportion to their contribution. Otherwise,
same family shall prosper unless it should appear
there are no presumptions of co-ownership and
from the verified complaint or petition that earnest
equal sharing. (Villanueva v. CA, G.R. No.
efforts toward a compromise have been made,
143286, 2004, reiterated in Ventura v. Sps.
but that the same have failed. If it is shown that
Paulino, G.R. No. 202932, 2013)
no such efforts were in fact made, the same case
must be dismissed.
No co-ownership exists between parties to an
adulterous relationship. In such a relationship, it
Exception: These rules shall not apply to cases
is necessary for each of the partners to prove his
which may not be the subject of compromise
or her actual contribution to the acquisition of
under the Civil Code.
property in order to lay claim to any portion of it.
Presumptions of co-ownership and equal
Allegation of “earnest efforts” is jurisdictional: if
contribution do not apply. (Rivera v. Heirs of
it is absent, the court can dismiss the case. BUT
Villanueva, G.R. No. 141501, 2006)
this rule is inapplicable in the following cases:
(CLV-FJF)
Art. 148 of the Family Code provides that only the
a. Civil status of persons
property acquired by both of the parties through
b. Any ground for Legal separation
their actual joint contribution of money, property,
c. Validity of marriage or legal separation
or industry shall be owned in common and in
d. Future support
proportion to their respective contributions. Such
e. Jurisdiction of courts
contributions and corresponding shares were
f. Future legitime
prima facie presumed to be equal. However, for
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Spouses Jointly Sued

The husband and wife shall sue or be sued jointly
except as provided by law (Section 4, Rule 3 of Beneficiaries of a Family Home
the 1997 Rules of Civil Procedure) a. Husband and wife, or unmarried head of the
family
The term “jointly” means that the spouses shall be b. Parents (may include parent-in-laws)
sued together and it does not refer to the nature c. Ascendants
of the civil liability. This is so because when the d. Brothers and sisters (legitimate/illegitimate)
spouses are sued for the enforcement of an living in the family home and dependent on
obligation entered into by them or of an obligation head of family for support. (Art. 154)
which redounded to the benefit of the family, they
are being impleaded in their capacity as Qualified Property
representatives of the absolute community or the Actual value of the family home shall not exceed
conjugal partnership and not as independent P300,000 in urban areas and P200,000 in rural
debtors such that the concept of joint or solidary areas. (Art.157)
liability, as between them, does not arise (Alipio
v. CA) Rules regarding Subsequent Improvements
of Family Home
The necessity of being jointly sued is also Any subsequent improvement of the family home
because generally the spouses are joint by the persons constituting it, its owners, or any
administrators of either the absolute community of its beneficiaries will still be exempt from
property or the conjugal partnership of gains. execution, forced sale or attachment provided the
However, if what is involved in the litigation is his following conditions obtain:
or her separate and exclusive property, the a. The actual value of the property at the time of
spouse may appear alone in court (Article 111). its constitution does not exceed Php 300,000
in urban areas and Php 200,000 in rural
III. FAMILY HOME areas under Art. 157; and
b. The improvement does not result in an
Family Home (Art. 152) increase in its value exceeding the statutory
The dwelling house where they (husband and limit.
wife or an unmarried head of the family) and their
family reside, and the land on which it is situated. Otherwise, the family home can be the subject of
a forced sale, and any amount above the
Constitution of a Family House (FH): statutory limit is applicable to the obligations
a. jointly by the husband and wife or by an under Art. 160. To warrant the execution sale of
unmarried head of a family a family home under Art. 160, the following facts
b. from the time it is occupied as a family should be established:
residence so long as any of its beneficiaries 1. There was an increase in its actual value;
actually resides therein (Art. 153) 2. The increase resulted from voluntary
improvements on the property introduced
Other Rules: by the persons constituting the family
a. FH must be owned by person constituting it home, its owners or any of its
b. FH must be permanent beneficiaries; and
c. FH continues despite death of one or more 3. The increased actual value exceeded the
spouses or unmarried head of family for 10 maximum allowable under Article 157.
years or as long as there is a minor (Eulogio v. Bell, G.R. No. 186322, 2015)
beneficiary (Art. 159)
d. Only one FH can be constituted
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Exempt from Execution (Art. 153) Procedure:

General Rule: The FH is exempted from: a. Creditor must file a motion in the court
a. Execution proceeding where he seeks to obtain a writ of
b. Forced Sale execution against the FH.
• The right to exemption from forced sale is b. Hearing on the motion where the creditor
a personal privilege granted to the must prove that the actual value of the FH
judgment debtor which must be asserted exceeds the maximum amount fixed by the
before the public auction. Failure to do so Family Code, either at the time of its
would estop the party from later claiming constitution or as a result of improvements
on the exemption. It is a right that can be introduced thereafter.
waived or be barred by laches by failure c. If creditor proves that the actual value
to set up and prove the status of the exceeds the maximum amount, the court will
property as a family home at the time of order its sale in execution.
levy. (De Mesa v. Acero, G.R. No. d. If FH is sold for more than the value allowed,
185064, 2012) the proceeds shall be applied as follows:
c. Attachment • First, the obligations enumerated in Art.
155 must be paid (listed above)
Exceptions: (Art. 155) • Then the judgment in favor of the creditor
a. Non-payment of taxes will be paid, plus all the costs of execution
b. Debts incurred prior to constitution of home • The excess, if any, shall be delivered to
c. Debts secured by mortgages on the premises the judgment debtor.
d. Debts due laborers, mechanics, architects,
builders, materialmen, and others who have ————- end of topic ————-
rendered service or furnished materials for
the construction of the building H. PATERNITY AND FILIATION
The filiation of children may be by nature or by
NOTE: The exemption is limited to the value adoption. Natural filiation may be legitimate or
allowed by the Family Code. illegitimate (Art. 163)
Sale, Alienation, Donation, Assignment, or

I. LEGITIMATE CHILDREN
Encumbrance of the Family Home (Art. 158)
Those conceived or born during a valid marriage.
a. The person who constituted the same must
(Art. 164)
give his/her written consent.
b. The spouse of the person who constituted the
This also includes children who are:
family home must also give his/her written
a. Conceived as a result of artificial
consent.
insemination
c. A majority of the beneficiaries of legal age
b. Conceived or born of a voidable marriage
must also give their written consent.
before decree of annulment;
d. In case of conflict, the court shall decide.
c. Conceived or born before judgment of
absolute nullity under Art. 36 (psychological
Requisites for Creditor to Avail of The Right to
incapacity) becomes final and executory;
Execute: (Art. 160)
d. Conceived or born of a subsequent marriage
1. He must be a judgment creditor;
under Art. 53 (failure to record the judgment,
2. His claim is not among those excepted under
partition and distribution of properties, and
Art. 155; and
delivery of children’s presumptive legitime);
3. He has reasonable grounds to believe that
e. Legally adopted; and
the family home is worth more than the
f. Legitimated, conceived and born outside of
maximum amount fixed in (Art. 157)
wedlock of parents without impediment at the
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time of conception and who subsequently authority to record the paternity of an illegitimate
married child on the information of a third person.
(Cabatania v. CA, G.R. No. 124814, 2004)
A child born inside a valid marriage is legitimate. It is well settled that a record of birth is merely a
Hence a child born inside a bigamous marriage, prima facie evidence of the facts contained
which is void, is considered a child under the first therein. It is not conclusive evidence of the
marriage, which has not been nullified or annulled truthfulness of the statements made by the
(Concepcion v. CA, G.R. No. 123450, 2005) interested parties. (Benitez-Badua v. CA, G.R.
unless the husband timely impugns the legitimacy No. 105625, 1994)
of the child.
b. An admission of legitimate or illegitimate
An agreement by parties as to the status of a child filiation in a public document or a private
is void. Only the law determines legitimacy or handwritten instrument and signed by the
illegitimacy. Thus, the child, in the eyes of the law, parent concerned.
is legitimate under the first marriage
notwithstanding the admission in pleadings by the Exception: In the absence of these pieces of
wife and her second husband that the child is their evidence, the legitimate filiation may be proved
legitimate son. Similarly, any declaration of the by (Art. 172, par. 2):
mother that her child is illegitimate has no a. Open and continuous possession of the
probative value. (Concepcion v. CA, G.R. No. status of a legitimate (or illegitimate) child
123450, 2005)
“Continuous” does not mean that the
Requisites for Children by Artificial possession of status shall continue forever
Insemination to be Considered Legitimate but only that it shall not be of an intermittent
1. The artificial insemination must be made on character while it continues. The possession
the wife; of such status means that the father has
2. Either the sperm of the husband or a third- treated the child as his own, directly and not
party donor may be used; through others, spontaneously and without
3. The artificial insemination has been concealment though without publicity.
authorized or ratified by both spouses on a (Mendoza v. CA, G.R. No. 86302, 1991)
written instrument executed and signed by
them before the birth of the child; and There must be evidence of the manifestation
4. The written instrument is recorded in civil of the permanent intention of the supposed
registry together with the birth certificate of father to consider the child as his, by
the child (Art. 164, par. 2) continuous and clear manifestations of
parental affection and care, which cannot be
II. PROOF OF FILIATION attributed to pure charity. Such acts must be
General Rule: Filiation of legitimate or of such a nature that they reveal not only the
illegitimate children is established by any of the conviction of paternity, but also the apparent
following (Art. 172, par. 1): desire to have and treat the child as such in
a. The record of birth appearing in the civil all relations in society and in life, not
register or a final judgment accidentally, but continuously. (Jison v. CA,
G.R. No. 124853, 1998)
A certificate of live birth purportedly identifying the
putative father is not competent evidence of b. Any other means allowed by the Rules of
paternity when there is no showing that the Court and special laws
putative father had a hand in the preparation of c. The due recognition of an illegitimate child in
said certificate. The local civil registrar has no a record of birth, a will, a statement before a
court of record, or in any authentic writing is,
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in itself, a consummated act of

acknowledgement of the child, and no further III. ILLEGITIMATE CHILDREN
court action is required. In fact, any authentic Those conceived AND born outside a valid
writing is treated not just a ground for marriage. (Art. 165)
compulsory recognition; it is in itself a
voluntary recognition that does not require a These include those who are:
separate action for judicial approval. (Eceta a. Born of marriages which are void ab initio
v. Eceta, G.R. No. 157037, 2004) such as bigamous and incestuous marriages
and void marriages by reason of public policy
The father’s SSS Form E-1 satisfies the b. Conceived and born of voidable marriages
requirement for proof of filiation and relationship after the decree of annulment
of petitioner to the Aguilar spouses under Article c. Conceived and born out of wedlock
172 of the Family Code. Filiation may be proved
by an admission of legitimate filiation in a public IV. ACTION TO IMPUGN LEGITIMACY
document or a private handwritten instrument and
signed by the parent concerned, and such due Grounds to Impugn the Legitimacy of the
recognition in any authentic writing is, in itself, a Child (Art. 166) (Exclusive List) (PBA)
consummated act of acknowledgment of the a. It was Physically impossible for the husband
child, and no further court action is required. to have sexual intercourse with his wife within
(Aguilar v. Siasat, G.R. 200169, 2015) the first 120 days of the 300 days which
immediately preceded the birth of the child
A thumb mark has been repeatedly considered a because of:
valid mode of signature. Thus, the document i. Physical incapacity of the husband to
executed by the putative father evidencing his have sexual intercourse with his wife
voluntary recognition of filiation is valid. (San ii. Fact that the husband and wife were
Agustin v. Sales, G.R. No. 189289, 2016) living separately in such a way that
sexual intercourse was not possible,
Rules in Filing an Action (Art. 173 in relation or
to 175): iii. Serious illness of the husband which
General rule: Only the child can bring an action absolutely prevented intercourse
to claim legitimacy/illegitimacy: b. If it’s proved that for Biological or other
General rule: It must be filed during his scientific reasons, the child could not have
or her lifetime been that of the husband, except in the case
of children conceived through artificial
Exception: For illegitimate children, insemination
when the action is based on par. 2 of c. In case of children conceived through
Art. 172, the action may be brought Artificial insemination, when the written
ONLY during the lifetime of the alleged authorization or ratification of either parent
parent (Ara v. Pizzaro, G.R. No. was obtained through mistake, fraud,
1872773; J. Leonen). violence, intimidation, or undue influence.
(Note: This assumes that there was written
Exception: The right may be transmitted to the authorization)
heirs of the child in the following cases:
g. Death during minority; Who may Impugn the Legitimacy of a Child
h. Insanity; or General Rule: Only the husband can impugn the
i. When the action has already been instituted legitimacy of a child.
by the child
NOTE: Under a & b, the heirs shall have a period
of 5 years within which to institute the action.
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Exceptions: The heirs of the husband may marriage. In such a case, the legitimacy or
impugn the child’s filiation in the following cases: illegitimacy of the child shall be proved by
(Art. 171) whoever alleges such (Art. 169)
a. If the husband dies before the expiration of
period for filing the action
b. If the husband dies after filing without
desisting
c. If the child was born after the death of the
husband
Periods for Filing of Action to Impugn

Legitimacy
a. If the husband (or his heirs, in proper cases)
resides in the same city or municipality where
the birth took place: within 1 year
b. If the husband (or his heirs) does not reside V. LEGITIMATED CHILDREN
in the city or municipality where the child’s Requisites for Legitimation: (Art. 177-178)
birth took place or was recorded but his 1. The child was conceived and born out of
residence is in the Philippines: within 2 wedlock;
years. 2. The parents, at the time of child’s conception,
c. If the child’s birth took place or was recorded were not disqualified by any impediment to
in the Philippines while the husband has his marry each other or were disqualified only
residence abroad, or vice-versa: within 3 because either or both of them were below
years. (Art. 170) 18; and
3. There is a valid marriage subsequent to the
NOTE: the period shall be counted from the child’s birth.
knowledge of the child’s birth OR its recording in
the civil register. However, if the child’s birth was NOTE: Legitimation takes place by the
concealed from or was unknown to the husband subsequent marriage of the child’s parents.
or his heirs, the period shall be counted from the Annulment of a voidable marriage shall not affect
discovery or knowledge of the birth of the child or the legitimation.
of the act of registration of said birth, whichever is
earlier. Effect of Legitimation (Art. 179 – 181)
a. Confers on the child the rights of legitimate
Presumption on the Status of a Child in Case children
of Successive (Valid) Marriages (Art. 168) b. Retroacts to the time of the child’s birth
In the absence of proof to the contrary: c. The descendants shall benefit in case the
a. Presumed to have been conceived during the child died before the celebration of the
first marriage: If the child was born before marriage
180 days after celebration of 2nd marriage Legitimation may be impugned only by those who
provided born within 300 days after the are prejudiced in their rights within 5 years from
termination of the 1st marriage. the time the cause of action accrues (Art. 182),
b. Presumed to have been conceived during the
second marriage: If the child was born after NOTE: Parents need not die for the cause of
180 days following the celebration of the 2nd action to accrue.
marriage, if born within 300 days after
termination of 1st marriage.
c. No presumption: If the child was born after
300 days following the termination of the first
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SUMMARY ON FILIATION
LEGITIMATE ILLEGITIMATE LEGITIMATED
Those conceived or born during a Those conceived AND born For a child to be considered
valid marriage (Art. 164) outside a valid marriage (Art. legitimated, the following
165) requisites must be met: (Art. 177)
These include children who are: a. The child was conceived
a. Conceived as a result of These children include those and born out of wedlock
artificial insemination, who are: b. The parents, at the time
provided written a. Born of marriages of child’s conception,
authorization or ratification which are void ab were not disqualified by
is given by the spouses initio such as any impediment to marry
before the birth of the child bigamous and each other or were
b. Conceived or born of a incestuous disqualified only because
voidable marriage before marriages and void either or both of them
decree of annulment marriages by reason were below 18
c. Conceived or born before of public policy c. There is a valid marriage
judgment of absolute nullity b. Conceived and born subsequent to the child’s
under Art. 36 (psychological of voidable birth
incapacity) becomes final & marriages after the
executory decree of annulment Legitimation takes place by the
d. Conceived or born of a c. Conceived and born subsequent marriage of the
subsequent marriage under out of wedlock child’s parents.
Art. 53 (failure to record the
judgment, partition and
distribution of properties,
and delivery of children’s
presumptive legitime)
e. Legally adopted
f. Legitimated, conceived and
born outside of wedlock of
parents without impediment
at the time of conception
and who subsequently
married
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RIGHTS OF LEGITIMATE/LEGITIMATED VIS-À-VIS ILLEGITIMATE CHILDREN

RIGHTS OF RIGHTS OF ILLEGITIMATE CHILDREN (Art. 176)
LEGITIMATE CHILDREN
(Art. 174)
Surname Bear the surnames of the Use of surname of the mother, and has no right to use the
father and mother surname of the father
Exception: They may be allowed to use the surname of

their father only if there is primary evidence of such
illegitimate filiation between them but without need of
establishing such filiation in a judicial proceeding. In such
case, the father during his lifetime, may institute an action
to prove non-filiation.
Support Has the right to receive Has right to receive support from both parents but only the
support from their parents, separate property of the person obliged to give support
their ascendants, and in shall be answerable, provided that in case the obligor has
proper cases, their no separate property, the absolute community or the
brothers and sisters conjugal partnership, if financially capable, shall advance
the support, which shall be deducted from the share of the
spouse obliged upon the liquidation of ACP or CPG
Successional Preferential successional Has successional rights in both intestate and compulsory
Rights rights in both intestate and succession but only consisting of 1/2 of the share of a
compulsory succession legitimate child
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i. The adopter is the natural parent of

a. Use the surname of the mother if the the child to be adopted, or
requisites of R.A. 9255 are not complied ii. The adopter is the spouse of the
with legitimate parent of the person to be
b. Use the surname of the father if the adopted
child’s filiation has been expressly
recognized by the father, either through: b. Alien
• Record of birth in civil register 1. Possessing the same qualifications
• Father’s admission in public as above stated for Filipino nationals;
document 2. His/her country has diplomatic
• Father’s admission in private relations with the Philippines;
handwritten document (R.A. 9255, 3. He/she has been living in the
Sec. 1, effective March 19, 2004) Philippines for at least 3 continuous
years prior to the filing of the
NOTE: The father under R.A. 9255, Sec. 1 has application for adoption and
the right to file an action to prove non-filiation maintains such residence until the
during his lifetime. adoption decree is entered;
4. He/she has been certified by his/her
If the mother of an illegitimate child objects, diplomatic or consular office or any
although the father was able to sufficiently appropriate government agency that
establish the paternity of his child in a public he/she has the legal capacity to
document, there is no legal basis for the court to adopt in his/her country;
change the surname of the child. Child has the 5. His/her government allows the
right to choose whose surname to use. (Grande adoptee to enter his/her country as
v. Antonio, G.R. No. 206248, 2014) his/her adopted son/daughter
————- end of topic ————- Requirements no. 3 and 4 may be waived in

the following instances:
I. ADOPTION i. A former Filipino citizen who seeks to
adopt a relative within the 4th degree of
consanguinity or affinity; or
I. DOMESTIC ADOPTION LAW
ii. One who seeks to adopt the legitimate
child of his/her Filipino spouse
Who may adopt:
iii. One who is married to a Filipino citizen
a. Filipino Citizen-
and seeks to adopt jointly with his/her
1. Of legal age;
spouse a relative within the 4th degree of
2. In possession of full civil capacity and
consanguinity or affinity of the Filipino
legal rights;
spouse
3. Of good moral character;
4. Has not been convicted of any crime
c. Guardians – with respect to the ward after
involving moral turpitude;
the termination of the guardianship and
5. Emotionally and psychologically capable
clearance of his/her financial accountabilities
of caring for children;
6. In a position to support and care for his
All statutory requirements for adoption must
legitimate and illegitimate children, in
be met, and when a court issues an adoption
keeping with the means of the family; and
decree despite the fact that all the said
7. At least 16 years older than the person to
requirements are not met, such decree is a
be adopted, unless:
nullity (In re O’Keefe, 164 Misc 473, 1937)
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Rule on Adoption by Spouses d. Legitimate son/daughter of one spouse by

General Rule: Husband and wife shall jointly the other spouse
adopt. e. Person of legal age if, prior to the adoption,
said person has been consistently
Exceptions: considered and treated by the adopter as
a. One spouse seeks to adopt the legitimate his/her Own child since minority;
son/daughter of the other f. Child whose adoption has been previously
b. One spouse seeks to adopt his/her own Rescinded
illegitimate son/daughter: Provided, that the g. Child whose biological or adoptive Parents
other spouse has signified his/her consent or have died provided that no proceedings shall
c. The spouses are legally separated from each be initiated within 6 months from the time of
other. death of said parents.
NOTE: In case husband and wife jointly adopt, or NOTE: A “child” refers to a person below eighteen
one spouse adopts an illegitimate child of the (18) years of age.
other, joint parental authority shall be exercised.
Written consent necessary for adoption (A-
J. Leonen: The law requires that for adoption BLISS)
to be valid, the spouse seeking to adopt must a. Adoptee, if 10 years of age or over;
first obtain the consent of his or her spouse b. Biological parents of the child, if known, or
and the consent of the adopter’s children 10 the legal guardian, or the proper government
years old and above. To secure this, personal instrumentality which has legal custody of the
service of summons should have been child;
effected on the spouse and all legitimate c. Legitimate and adopted children of the
children to ensure that their substantive adopter and adoptee, 10 years old or over;
rights are protected. It is not enough to rely on d. Illegitimate children of the adopter, 10 years
constructive notice as in this case. old or over and living with him or her
Surreptitious use of procedural technicalities e. Spouse of the adopted, if married
cannot be privileged over substantive f. Spouse of the adopter, if married
statutory rights. (Castro v Gregorio, G.R. No.
188801, October 15, 2014) Effectivity of Decree of Adoption
A decree of adoption is effective as of the date
Who may be adopted: (BAILORP) the original petition was filed. This also applies in
a. Any person Below 18 years of age who has case the petitioner dies before the issuance of the
been administratively or judicially declared decree of adoption.
available for adoption
b. Under R.A. 9523, a child which can be Where the petition for adoption was granted after
certified as “legally Available for adoption” the child killed a girl, no retroactive effect may be
includes a person below eighteen (18) years given to the decree of adoption so as to impose a
of age or a person over eighteen (18) years liability upon the adopting parents accruing at a
of age but is unable to fully take care of time when the adopting parents had no actual or
him/herself or protect him/herself from abuse, physically custody over the adopted child.
neglect, cruelty, exploitation, or Retroactive effect may perhaps be given where
discrimination because of physical or mental such is essential to permit the accrual of some
disability or condition benefit or advantage in favor of the adopted child.
c. Illegitimate son/daughter by a qualified To hold that parental authority had been
adopter to improve his/her status to that of retroactively lodged in the adopting parents so as
legitimacy to burden them with liability for a tortious act that
they could not have foreseen nor prevented
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would be unfair and unconscionable (Tamargo v. Effects of the Rescission of the Adoption
CA, G.R. No. 85044, 1992). a. The parental authority of the adoptee's
biological parents, if known, OR the legal
Effects of Adoption custody of the DSWD shall be restored if
a. Severance of all legal ties between the the adoptee is still a minor or
biological parents and the adoptee and incapacitated.
the same shall then be vested on the b. The reciprocal rights and obligations of
adopters EXCEPT in cases where the the adopters and the adoptee to each
biological parent is the spouse of the other shall be extinguished.
adopter c. The court shall order the Civil Registrar
b. Deemed a legitimate child of the adopter to cancel the amended certificate of birth
c. Acquired reciprocal rights and obligations of the adoptee and restore his/her
arising from parent-child relationship original birth certificate.
d. Right to use surname of the adopter d. Succession rights shall revert to its status
e. An illegitimate child adopted by her prior to adoption, but only as of the date
natural father can use as middle name of judgment of judicial rescission. Vested
her mother’s surname. (In re: Astorga rights acquired prior to judicial rescission
Garcia, G.R. No. 1148311, 2005) shall be respected.
Rules on Succession II. LAW ON INTER-COUNTRY ADOPTION

In legal and intestate succession, the adopters
and the adoptee shall have reciprocal rights of Inter-Country Adoption - refers to the socio-
succession without distinction from legitimate legal process of adopting a Filipino child by a
filiation. However, if the adoptee and his/her foreigner or a Filipino citizen permanently
biological parents had left a will, the law on residing abroad where the petition is filed, the
testamentary succession shall govern. supervised trial custody is undertaken, and the
decree of adoption is issued outside the
Rescission of Adoption Philippines.
Who may file: Only the adoptee may file for
rescission of the adoption decree NOTE: A “child” refers to a person below fifteen
• The adopters may disinherit the adoptee (15) years of age unless sooner emancipated by
for causes provided in Art. 919 NCC. law.
NOTE: If the adoptee is a minor or if over 18 years Qualifications and Disqualifications of

old but is incapacitated, he/she must be assisted Adopter
by the Department of Social Welfare and An alien or a Filipino citizen permanently residing
Development as guardian/counsel. abroad may file an application for inter-country
adoption of a Filipino child if: (DEBT-CAMPS)
Grounds for Rescission of Adoption: (MASA) 1. Comes from a country with whom the
a. Repeated physical and verbal Maltreatment Philippines has Diplomatic relations and
by the adopters despite having undergone whose government maintains a similarly
counseling authorized and accredited agency and that
b. Attempt on the life of the adoptee adoption is allowed under his/her national
c. Sexual assault or violence laws;
d. Abandonment and failure to comply with 2. Eligible to adopt under his/her national law;
parental obligations. 3. Agrees to uphold the Basic rights of the child
as embodied under Philippine laws, the U.N.
Convention on the Rights of the Child, and to
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abide by the rules and regulations issued to

implement the provisions of this Act; NOTE: There are differences between the two
4. Has not been convicted of a crime involving laws in:
moral Turpitude; 1. Definition of a child
5. Has the Capacity to act and assume all rights 2. Procedure (where to file, what petition may
and responsibilities of parental authority include, publication requirements, supervised
under his national laws, and has undergone trial custody)
the appropriate counseling from an 3. Qualifications of adopter
accredited counselor in his/her country; 4. Who may be adopted
6. At least 27 years of Age and at least 16 years 5. Court that issues decree of adoption (Family
older than the child to be adopted, at the time court vs. Foreign court)
of application unless the adopter is the parent
by nature of the child to be adopted or the ————- end of topic ————-
spouse of such parent;
7. If Married, his/her spouse must jointly file for J. SUPPORT
the adoption;
8. Possesses all the qualifications and none of
I. WHAT IT COMPRISES
the disqualifications provided herein and in
Support consists of everything indispensable for
other applicable Philippine laws; and
(METS-DC) (Art. 194):
9. In a position to provide the proper care and
a. Medical attendance
Support and to give the necessary moral
b. Education – includes schooling (formal
values and example to all his children,
education) or training (non-formal education)
including the child to be adopted
for some profession, trade or vocation, even
beyond the age of majority
Qualifications and Disqualifications of
c. Transportation – includes expenses going to
Adopted
and from school, or to and from place of work.
Who may be adopted: Only a legally free child
(Art. 194)
may be the subject of inter-country adoption
d. Sustenance
e. Dwelling
Legally-free child - a child who has been
f. Clothing
voluntarily or involuntarily committed to the
Department, as dependent, abandoned, or
Makes no distinction between natural support
neglected, in accordance with the Child and
(basic necessities) and civil support (those
Youth Welfare Code
beyond the basics)
• No child shall be matched to a foreign
adoptive family unless it is satisfactorily
In an action for support, the court can declare a
shown that the child cannot be adopted
marriage void to determine the rights of the child
locally.
to be supported. There is no need that a judicial
declaration of nullity be filed first before the lower
Limitation on Voluntarily Committed Children:
court can rule that the marriage was void. (De
General rule: In case of a child who is voluntarily
Castro v. Assidao-De Castro, G.R. No. 160172,
committed, the physical transfer of said child shall
2008)
be made not earlier than 6 months from the date
the Deed of Voluntary Commitment was executed
II. WHO ARE OBLIGED TO GIVE SUPPORT
by the child’s biological parent/s
Persons Obliged to Support Each Other to the

Exception: It does not apply to adoption by a
Whole Extent: (Art. 195) (SAPL)
relative or children with special medical
a. Spouses
conditions.
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b. Legitimate Ascendants and Descendants For others obliged to give support, the separate
c. Parents and their Legitimate/Illegitimate property of the obligor shall be answerable
Children/Grandchildren • Provided, that the absolute community or the
d. Legitimate Brothers and Sisters, whether full conjugal partnership shall advance the
or half-blood support in case the obligor has no separate
property
Rules Regarding Support for Illegitimate o Under CPG, in case of insufficiency,
Brothers and Sisters (Whether Full or Half the conjugal partnership shall be
Blood) liable only after the responsibilities
• If the one asking for support is below under Art. 121 have been covered
majority age, he is entitled to support (Art. 122)
from his illegitimate brother or sister, to • Any advance/s made shall be deducted from
the full extent, without any condition. the share of the obligor spouse upon
• If the one asking for support is of liquidation of the absolute community or of
majority age, he is entitled to support the conjugal partnership (Art. 197)
only if his need for support is not due to a
cause imputable to his fault or IV. ORDER OF SUPPORT
negligence. (Art. 196)
When two or more persons are obliged to give
Insofar as Philippine laws are concerned, support, liability shall devolve based on the
specifically the provisions of the Family Code on following order:
support, the same only applies to Filipino citizens. a. Spouse;
Petitioner cannot rely on Article 195 in demanding b. Descendants in the nearest degree;
support from respondent, who is a foreign citizen. c. Ascendants in the nearest degree; and
However, in view of respondent’s failure to prove d. Brothers and sisters (Art. 199)
the national law of the Netherlands, the doctrine
of processual presumption shall govern, which Rule in case of multiple obligors with one and
states that if the foreign law involved is not the same obligee:
properly pleaded and proved, our courts will The payment shall be divided between the
presume that the foreign law is the same as our obligors in proportion to their resources (Art.
local or domestic or internal law. Thus, the law in 200(1)).
the Netherlands is presumed to be the same with
Philippine law, which enforces the obligation of In case of urgency or special circumstances, the
parents to support their children and penalizing judge may order only one of them to furnish
the non-compliance therewith. Moreover, foreign provisional support
law should not be applied when its application • Without prejudice to his or her right of
would work undeniable injustice to the citizens or reimbursement from the other/s (Art. 200(2))
residents of the forum. (Norma A. Del Socorro, for
and in behalf of her minor child, Roderigo Norjo Rule in case of multiple obligees with one and
Van Wilsem v. Ernst Johan Brinkham Van the same obligor:
Wilsem, G.R. No. 193707, 2014) General rule: The obligor must satisfy all the
claims
III. SOURCE OF SUPPORT
For the support of spouses, their common Exception: In case the obligor has no sufficient
children, and legitimate children of either spouse, means to satisfy all claims, the order above (Art.
the absolute community or the conjugal 199) shall be followed
partnership shall be liable. (Art. 94(1), Art. 121(1))
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• Exception: Between the spouse and a VIII. SUPPORT PENDENTE LITE

child subject to parental authority, the Support shall be given during the proceedings for
child is preferred. (Art. 200 (3)) legal separation or for annulment of marriage,
V. AMOUNT OF SUPPORT and for declaration of nullity of marriage.
The amount of support shall be in proportion to
the resources or means of the giver and to the Who are entitled to it: Spouses and their
necessities of the recipient. (Art. 201) children
• As between spouses, the obligation of mutual
The amount of support shall be reduced or support ceases after final judgment granting
increased proportionately according to changes the petition
in the necessities of the recipient and the o unless, in case of legal separation,
resources of the provider. (Art. 202). the court orders the guilty spouse to
furnish support to the innocent one,
VI. MANNER AND TIME OF PAYMENT specifying the terms thereof
Time of payment (Art. 203): Source of support: The absolute community or

The obligation to give support can be demanded the conjugal partnership (Art. 198)
from the time the person who has the right to
receive the same needs it for maintenance In an action for support, adultery is a good
• However, it shall be paid only from the date defense and if properly proved and sustained, will
of judicial or extrajudicial demand defeat the action (Reyes v. Ines-Luciano, G.R.
No. L-48219, 1979). However, while adultery may
Payment shall be made within the first five (5) be a defense in an action for personal support,
days of each corresponding month that is, support of the wife by the husband from
his own funds, it is not a defense when the
• In case the recipient dies, his heirs shall
support is to be taken from the conjugal
not be obliged to return what he has
partnership property (Lerma v. Court of Appeals,
received in advance.
G.R. No. L-33352, 1974)
Manner of payment (Art. 204):
The obligor has two options: IX. PROCEDURE IN APPLICATION FOR
a. To pay the allowance fixed; or SUPPORT
b. To receive and maintain the person who
has a right to receive support in the family Interlocutory nature of support pendente lite
dwelling, unless there is a moral or legal In a Petition for Review under Rule 45, petitioner
obstacle argues that the CA should not have dismissed her
appeal because the arrears in support pendente
lite which respondent failed to pay have ceased
VII. RENUNCIATION AND TERMINATION
to be provisional and have become final.
The waiver, renunciation, transmission or
The SC held that It is important to emphasize the
compensation of the right to receive support
temporary or provisional nature of support
cannot still be undertaken as such acts are
pendente lite. It is but an incident to the main
contrary to law, public policy, morals or good
action for declaration of nullity; and whether an
customs pursuant to Article 6 of the Civil Code.
order or resolution is final or interlocutory is not
dependent on compliance or non-compliance by
It is in violation of the mandatory obligation under
a party to its directive, questioning the subject
Article 195 and therefore, if such prescribed acts
interlocutory orders of the RTC, petitioner's
are undertaken, they shall be void pursuant to
appeal was correctly dismissed by the CA.
Article 5 of the Civil Code.
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The remedy against an interlocutory order not bears stressing that Section 8(g) providing for
subject of an appeal is a special civil action under spousal and child support, fulfills the
Rule 65 provided that the interlocutory order is objective of restoring the dignity of women
rendered without or in excess of jurisdiction or who are victims of domestic violence and
with grave abuse of discretion. Having chosen the provides them continued protection against
wrong remedy in questioning the subject threats to their personal safety and security.
interlocutory orders of the RTC, petitioner's (PGMC v. AAA, G.R. No. 201292, August 1,
appeal was correctly dismissed by the CA 2018)
(Calderon v. Roxas and CA, G.R. No. 185595,
2013). ————- end of topic ————-
J. Leonen: X prayed for support from the K. PARENTAL AUTHORITY

putative father of her child (who is also X’s I. GENERAL PROVISIONS
father). While the grant of support was
contingent on ascertaining parental relations Parental Authority (patria potestas) – The
between the child and the putative parent, it mass of rights and obligations which parents
was unnecessary for the action for support to have in relation to the person and property of their
be dismissed by the appellate court. An children until their emancipation, and even after,
integrated determination of filiation is under certain circumstances.
"entirely appropriate" to an action for
support. Concerned parties may be allowed to Characteristics of Parental Authority:
present evidence to establish their cause of 1. It is a natural right and duty of the parents
action, inclusive of their underlying claim of over the person and property of their
paternal relations. An action for support may unemancipated children (Art. 209);
very well resolve that ineluctable issue of 2. It cannot be renounced, transferred, except in
paternity if it involves the same parties, is cases authorized by law (Art. 210);
brought before a court with the proper 3. It is jointly exercised by the father and the
jurisdiction, prays to impel recognition of mother (Art. 211);
paternal relations, and invokes judicial 4. It is purely personal and cannot be exercised
intervention to do so. This also serves the through agents; and
interest of judicial economy — avoiding 5. It is temporary
multiplicity of suits and cushioning litigants
from the vexation and costs of a protracted Rules as to the Exercise of Parental Authority
pleading of their cause. (Abella v. Cabañero, a. The father and the mother shall jointly
G.R. No. 206647, 2017) exercise parental authority over the persons
of their common children. In case of
Can the Pension Gratuity Management Center disagreement, the father's decision shall
of the AFP (PGMC) be ordered to prevail, unless there is a judicial order to the
automatically deduct a percentage from the contrary (Art. 211);
retirement benefits of its enlisted personnel, b. If the child is illegitimate, parental authority is
and to give the same directly to the latter's with the mother;
lawful wife as spousal support in compliance c. In case of absence or death of either parent,
with a protection order issued by the RTC the parent present shall continue exercising
pursuant to RA. No. 9262? parental authority (Art. 212);
i. The marriage of the surviving parent shall
YES. We hold that Section 8(g) of RA. No. 9262, not affect parental authority over the
being a later enactment, should be construed as children, unless the court appoints
laying down an exception to the general rule that
retirement benefits are exempt from execution. It
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another person to be the guardian of the separated parents. This effectively empowers
person or property of the children. separated parents, by the simple expedient of
d. In case of separation of the parents, parental avoiding the courts, to subvert a legislative policy
authority shall be exercised by the parent vesting to the separated mother sole custody of
designated by the Court. her children under seven years of age (Dacasin
i. The Court shall take into account all v. Dacasin, G.R. No. 168785, 2010).
relevant considerations, especially the
choice of the child over 7 years of age, II. SUBSTITUTE PARENTAL AUTHORITY
unless the parent chosen is unfit
ii. No child under 7 years old shall be Order of Substitute Parental Authority:
separated from the mother, unless the In default of parents or a judicially appointed
Court finds compelling reasons to order guardian, substitute parental authority shall be
otherwise. exercised by:
1. The surviving grandparent;
Once parental authority is vested, it cannot be 2. The oldest brother or sister, over 21 years
waived except in cases of adoption, guardianship old, unless unfit or disqualified;
and surrender to a children’s home or an orphan 3. The child's actual custodian, over 21 years
institution (Sagala-Eslao v. Court of Appeals, old, unless unfit or disqualified (Art. 216)
G.R. No. 116773, 1997)
In a custody case where the father of an
It is not enough to show that the biological mother illegitimate child was the actual custodian of said
is a lesbian so that she can be denied the custody child, the SC ruled that while it may be argued
of a child not more than 7 years of age. X must that Article 176 has effectively disqualified the
also demonstrate that she carried on her father from exercising substitute parental
purported relationship which is not conducive to authority under Article 216, the Court cannot
the child’s proper moral development. In adopt a rigid view, without running afoul to the
choosing the parent to whom custody is given, the overarching consideration in custody cases,
welfare of the minor should always be the which is the best interest of the minor. The best
paramount consideration. The “tender-age interest demands a determination if the mother is
presumption” may be overcome only by unfit; and if so, whether it is best that custody be
compelling evidence of the mother’s unfitness with her father rather than her grandparents upon
(Pablo-Gualberto v. Gualberto, G.R. No. 154994, whom the law accords a far superior right to
2005). exercise substitute parental authority. (Masbate
and Spouses Masbate v. Relucio, G.R. No.
The matter of custody is not permanent and 235498, 2018)
unalterable and can always be re-examined and
adjusted. Custody, even if previously granted by In case of foundlings, abandoned children,
a competent court in favor of a parent, is not neglected children, or abused children, and other
permanent. The paramount interest of the child children similarly situated, summary judicial
should always be considered (Beckett v. proceedings shall be instituted so that they may
Sarmiento, RTJ-12-2326, 2016). be entrusted to:
a. Heads of children’s homes
A joint agreement that the father shall have b. Orphanages, or
custody of the child below seven is void for being c. Similar institutions duly accredited by the
contrary to law. To limit this provision’s proper government agency (Art. 217)
enforceability to court sanctioned agreements
while placing private agreements beyond its III. SPECIAL PARENTAL AUTHORITY
reach is to sanction a double standard in custody
regulation of children under seven years old of
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Person Exercising Special Parental Authority: IV. EFFECT OF PARENTAL AUTHORITY

a. School OVER THE CHILD’S PERSON
b. Administrators and teachers
c. Individual, entity, or institution engaged in Parental Rights and Duties:
childcare a. To keep them in their company
b. To support, educate and instruct them by
NOTE: Special parental authority can be right precept and good example
exercised only over minors while under their c. To provide for their upbringing in keeping with
supervision, instruction, or custody. The authority their means
and supervision also attach to all authorized d. To give them love and affection, advice and
activities whether inside or outside the school, counsel, companionship and understanding
entity or institution. e. To provide them with moral and spiritual
guidance, inculcate in them honesty,
Liability of those Exercising Special Parental integrity, self-discipline, self-reliance,
Authority Over the Child industry and thrift, stimulate their interest in
They are principally and solidarily liable for civic affairs, and inspire in them compliance
damages caused by the acts or omissions of the with the duties of citizenship
child while under their supervision, instruction or f. To furnish them with good and wholesome
custody. However, this liability is subject to the educational materials, supervise their
defense that the person exercising parental activities, recreation and association with
authority exercised proper diligence. others, protect them from bad company, and
prevent them from acquiring habits
The parents and judicial guardians of the minor or detrimental to their health, studies and morals
those exercising substitute parental authority g. To represent them in all matters affecting
over the minor are subsidiarily liable for said acts their interests
and omissions of the minor. h. To demand from them respect and obedience
i. To impose discipline on them as may be
The responsibility given to an academic institution required under the circumstances
for the welfare of its students has been j. To perform such other duties as are imposed
characterized by law and judicial doctrine as a by law upon parents and guardians.
form of special parental authority and
responsibility. This responsibility has been The person exercising substitute parental
amplified by the enactment of the Anti-Hazing authority shall have the same authority over the
Law, in that the failure by school authorities to person of the child as the parents.
take any action to prevent the offenses as
provided by the law exposes them to criminal In no case shall the school administrator, teacher,
liability as accomplices in the criminal acts. Thus, or individual engaged in childcare and exercising
the institution and its officers cannot stand idly by special authority, inflict corporal punishment upon
in the face of patently criminal acts committed the child (Art. 233)
within their sphere of responsibility. They bear the
commensurate duty to ensure that the crimes Liability of Persons Exercising Parental
covered by the Anti-Hazing Law are not Authority
committed (People v. Bayabos, G.R. No. 171222, Civilly liable for the injuries and damages caused
2015). by the acts or omissions of their unemancipated
children living in their company and under their
parental authority
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Subject to appropriate defenses provided by law, VI. SUSPENSION OR TERMINATION OF

ie. Exercise of diligence of a good father of a PARENTAL AUTHORITY
family (Libi v. IAC)
Grounds for Suspension of Parental
V. EFFECTS OF PARENTAL AUTHORITY Authority: (CHOBA)
OVER THE CHILD’S PROPERTY a. Conviction of parent for crime with civil
interdiction
Effect of Parental Authority Upon the Property b. Treats child with excessive Harshness and
of The Child: cruelty
a. The father and mother shall jointly exercise c. Gives corrupting Orders, counsel, or example
legal guardianship over the property of the d. Compels child to Beg
minor common child without court e. Subjects to or allows him to be subjected to
appointment Acts of lasciviousness
b. In case of disagreement, the father’s decision
shall prevail, unless there is judicial order to Revival of Suspended Parental Authority:
the contrary If under a: The authority is automatically
c. If the market value of the property or the reinstated upon service of the penalty or upon
annual income of the child exceeds P50,000, pardon or amnesty of the offender
the parent is required to furnish a bond of not
less than 10% of the value of the child’s If under b-e: The suspension or deprivation may
property or income be revoked and the parental authority revived in
d. The property of the unemancipated child a case filed for the purpose or in the same
earned or acquired with his work or industry proceeding if the court finds that the cause
or by onerous or gratuitous title shall belong therefore has ceased and will not be repeated
to the child in ownership and shall be devoted
exclusively for support and education, unless Termination of Parental Authority:
the title or transfer provides otherwise a. Death of parents
• The fruits and income of the child’s b. Death of child
property shall be limited primarily to the c. Emancipation of child
child’s support and secondarily to the d. Parents exercising parental authority has
collective daily needs of the family. subjected the child or allowed him to be
subjected to sexual abuse (ground for
The parent’s authority over the estate of the ward permanent termination)
as a legal guardian would not extend to acts of
encumbrance or disposition, as distinguished Other Cases Where Parental Authority May Be
from acts of management or administration (Nario Terminated (Art. 229)
v. Philippine American Life Ins. Co., G.R. No. L- a. Adoption of child
22796, 1967) b. Appointment of general guardian
c. Judicial declaration of abandonment
A parent has no power to compromise their d. Final judgment divesting parental authority
children’s claims, for a compromise has always e. Judicial declaration of absence or incapacity
been deemed equivalent to an alienation, and is of person exercising parental authority
an act of strict ownership that goes beyond mere
administration (Visaya, et al. v. Suiguitan, et al., VII. SOLO PARENTS (REP. ACT NO. 8972)
G.R. No. L-8300, 1955)
Who are solo parents: Any individual falling
under any of the following categories:
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1. A woman who gives birth as a result of rape a. Livelihood development services, including
and other crimes against chastity even trainings on livelihood skills, basic business
without a final conviction of the management, value orientation, and
offender: provided, that the mother keeps provision of seed capital or job placement
and raises the child; b. Counseling services, including individual,
2. Parent left solo or alone with the peer group, or family counseling
responsibility of parenthood: c. Parent effectiveness service, including
2.1. due to death of spouse; provisions and expansion of knowledge and
2.2. while the spouse is detained or is skills of solo parent on early childhood
serving sentence for a criminal development, behavior management, health
conviction for at least one (1) year; care, rights and duties of parents and children
2.3. due to physical and/or mental incapacity d. Critical incidence stress debriefing, including
of spouse as certified by a public preventive stress management designed to
medical practitioner; assist solo parent in coping with crisis
2.4. due to legal separation or de situations and abuse
facto separation from spouse for at least e. Special projects for individuals in need of
one (1) year, as long as he/she is protection, including temporary shelter,
entrusted with the custody of the counseling, legal assistance, medical care,
children; self-concept or ego-building, crisis
2.5. due to declaration of nullity or annulment management and spiritual enrichment (Sec.
of marriage as decreed by a court or by 5)
a church as long as he/she is entrusted
with the custody of the children; Other rights and benefits (Sec. 6-11):
2.6. due to abandonment of spouse for at a. Flexible Work Schedule: Provided, it does
least one (1) year; not affect individual and company
3. Unmarried mother/father who has preferred productivity and the employer is not granted
to keep and rear her/his child/children instead an exemption by DOLE.
of having others care for them or give them b. No work discrimination
up to a welfare institution; c. Parental leaves of not more than seven (7)
4. Any other person who solely provides working days every year, provided the solo
parental care and support to a child or parent employee has rendered services of at
children; least one year
5. Any family member who assumes the d. Educational Benefits such as:
responsibility of head of family as a result of d.1. Scholarship programs for qualified solo
the death, abandonment, disappearance or parents and their children in institutions
prolonged absence of the parents or solo of basic, tertiary, and technical/skills
parent. education; and
d.2. Nonformal education programs
Provided, that a change in status or circumstance appropriate for solo parents and children
of a parent claiming benefits under this Act, such e. Housing Benefits:
that he or she is no longer left alone with the e.1. Allocation in housing projects
responsibility of parenthood, shall terminate his or e.2. Liberal terms of payment on said
her eligibility for benefits under this Act (Sec. government low-cost housing projects
3(a)). • With priority given to applicants below
poverty line as declared by NEDA.
Comprehensive Package of Social f. Medical assistance
Development and Welfare Services
The package to be developed by the departments Who are entitled to such rights and benefits
concerned will initially include: (Sec. 4):
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Any solo parent whose income in the place of

domicile falls below the poverty threshold set by
NEDA and subject to the assessment of the
DSWD worker in the area
On the other hand, a solo parent whose income

is above the poverty threshold shall enjoy the
following benefits:
a. Flexible Work Schedule
b. Freedom from work discrimination
c. Parental Leave
L. EMANCIPATION
I. CAUSE OF EMANCIPATION
Emancipation takes place by the attainment of
majority.
Unless otherwise provided, majority commences

at the age of eighteen years (Art. 234).
II. EFFECT OF EMANCIPATION

Emancipation for any cause shall terminate
parental authority over the person and property of
the child who shall then be qualified and
responsible for all acts of civil life, save the
exceptions established in by existing laws in
special cases.
Contracting marriage shall require parental

consent until the age of twenty-one.
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M. SUMMARY JUDICIAL PROCEEDINGS IN THE FAMILY CODE
CHAPTER 2: SEPARATION IN FACT BETWEEN HUSBAND AND WIFE

coverage Includes petition:
a. Involving separation in fact wherein:
1. Husband and wife are separated in fact or one has abandoned the other;
2. One of them seeks judicial authorization for a transaction where consent of the
other is required by law; and
• Example: Alienation, disposal, encumbrance or community or conjugal
property
3. Consent of the other is withheld or cannot be obtained (Art. 239(1))
b. For judicial authority to administer or encumber specific separate property of the

abandoning spouse and to use the fruits or proceeds thereof to support the family (Art.
248)
REMEDY Filing a verified petition in the proper court ie. family court where either spouse resides
(Art. 241)
RULES Attachment (Art. 239(2)): The proposed deed, if any, embodying the transaction must
be attached to the petition
• If none, the transaction must be described in detail with the reason why the
required consent cannot be secured.
• The final deed, if any, must be submitted to and approved by the court
Damages (Art. 240): Claims for damages may be litigated in a separate action
• Except: Costs of the proceedings
Notification (Art. 242): Upon filing of the petition, the court shall notify the other spouse
whose consent is required, of said petition
• It shall require the spouse to show cause why the petition should not be granted,
on or before the date set in the notice for the initial conference
• The notice shall be accompanied by a copy of the petition, served at the last
known address of such spouse
Procedure (Art. 243-247):

1. A preliminary conference shall be conducted personally by the judge without the
assistance of counsel
2. If the court deems it useful, the parties may be assisted by counsel at the succeeding
conferences and hearings
3. In case of non-appearance by spouse whose consent is sought, the court shall
inquire into the reasons for the failure to appear and require such appearance, if
possible
4. The proceedings may either be:
a. If the attendance is not secured despite efforts, the court may proceed
ex parte and render judgment as warranted. The judge shall endeavor
to protect the interests of the non-appearing spouse
b. If the petition is not resolved at the initial conference, said petition shall
be decided in a summary hearing on the basis of affidavits,
documentary, or oral testimonies at the discretion of the court.
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CHAPTER 3: INCIDENTS INVOLVING PARENTAL AUTHORITY

COVERAGE Involves petitions:
1. for an order providing for disciplinary measures over the child (Art. 223)
2. for approval of the bond, required from the parent in case the market value of
the property or annual income of the child exceeds 50,000 (Art. 225)
REMEDY Filing a verified petition in the proper court of the place where the child resides. (Art.249;
250)
RULES Notification: Upon filing of the petition, the court shall notify the parents or, in their
absence or incapacity, the individuals, entities, or institutions exercising parental
authority over the child.
Other rules under chapter 2 as may be applicable
CHAPTER 4: OTHER MATTERS SUBJECT TO SUMMARY PROCEEDINGS

COVERAGE Includes petitions:
1. for judicial declaration of presumptive dead (Art. 41)
2. for delivery of presumptive legitime (Art. 51)
3. for judicial determination of family domicile (Art. 69)
4. for determination of validity of objection to the profession of a spouse (Art. 73)
5. dealing with court order entrusting foundlings, abandoned or neglected or abused
children and other children similarly situated to heads of children’s homes,
orphanages, and similar institutions accredited by the government (Art. 217)
6. involving the annulment of husband’s decision (Art. 96 and 124)
RULES Rules under chapters 2 and 3 shall govern as applicable
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N. USE OF SURNAME
PERSON SURNAME OF: PERSON SURNAME OF:

Legitimate and Illegitimate Mother. It is mandatory that the mother of
legitimated children (Art. 368) an illegitimate child signs the birth
children (Art. certificate in all cases, irrespective of
364) whether the father recognizes the child
as his or not. If mother did not sign, the
local civil registrar had no authority to
register the subject birth certificate.
(Tinitigan v. Tinitigan, G.R. No. 222095,
Principally, the father 2017)
Natural child Married woman Three options:
acknowledged He/she has the (Art. 370) 1. Maiden first name and surname and
by both parents option to choose the add husband’s name (ie. Juana
(Art. 366 par. surname of the Reyes-Dela Cruz)
1) mother (Alfon v.
Republic) 2. Maiden first name and husband’s
name (ie. Juana Dela Cruz)
3. Husband’s full name, but prefixing a

word indicating that she’s the wife,
such as “Mrs.” (i.e., Mrs. Juana Dela
Cruz)
Children In case of If wife is the guilty party: Resume her
conceived annulment of maiden name and surname
before the marriage (Art.
decree 371) If wife is the innocent party: May resume
annulling a her maiden name and surname and may
voidable choose to continue employing her former
marriage (Art. husband’s surname unless the court
369) decrees otherwise or she or the former
husband marries another person.
Adopted child Adopter In case of legal Wife shall continue using her name and
(Art. 365) separation (Art. surname employed before the legal
372) separation
Natural child Recognizing parent Widow (Art. 373) Same options as that given to a married
acknowledged woman
by one of the
parents (Art.
366 (par. 2)
Natural child by Father
legal fiction
(Art. 367)
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Identity of names and surnames
The younger person is obliged to use additional May be the subject of an action for damages and
name or surname as will avoid confusion. (Art. other relief (Art. 377)
374)
————- end of topic ————
Between ascendants and descendants (Art.
375): O. ABSENCE
• “Junior” can be used only by a son I. PROVISIONAL MEASURES IN CASE OF
• Grandsons and other direct male descendants ABSENCE
shall either:
o Add a middle name or the mother’s A judge may appoint a representative when:
surname; or 1. A person disappears from his or her domicile;
o Add the Roman numerals II, III, and so 2. His or her whereabouts are unknown; and
on. 3. There is no agent to administer his or her
property or the power conferred to the agent
General Rule: Change of name or surname can by the absentee has expired (Art. 381)
only be done with judicial authority (RA 9048 as
amended by RA 10172) Who may file:
a. Interested party;
Except: Clerical or typographical errors and b. Relative; or
change of first name or nickname c. Friend (Art. 381)
Grounds for change of first name or nickname: Scope of authority of representative: All that
a. The petitioner finds the first name or nickname may be necessary (Art. 381)
to be ridiculous, tainted with dishonor or
extremely difficult to write or pronounce; The order of the judge shall:
b. The new first name or nickname has been a. Take the necessary measures to safeguard
habitually and continuously used by the the rights and interests of the absentee; and
petitioner and he has been publicly known by b. Specify the powers, obligations and
that by that first name or nickname in the remuneration of his representative
community; or c. Regulated, according to the circumstances, by
c. The change will avoid confusion (Sec. 3 of RA the rules on guardianship (Art. 382)
9048 as amended by RA 10172)
Rules on choosing a representative:
The following have been held to constitute proper a. The present spouse shall be preferred
and reasonable causes or compelling reasons or b. If no spouse or in case they are legally
change of surname: (1) a ridiculous name, a name separated, any competent person may be
tainted with dishonor, or a name extremely difficult appointed (Art. 383)
to write or pronounce; (2) a change of civil status;
and (3) a need to avoid confusion (Republic v. II. DECLARATION OF ABSENCE
Tañada, G.R. No. L-31563, 1971), and (4) a A judicial declaration of absence is necessary to
sincere desire to adopt a Filipino name to erase protect the rights, interests, and benefits of
signs of a former alien nationality which unduly interested persons such as the spouse, as well as
hamper social and business life (Uy v. Republic, for the protection of the absentee
G.R. No. L-22040, 1965)
When may an absence be declared:
Usurpation of name or surname
• Two years without any news about the
Gives a rights of action to the person whose
absentee or since the receipt of the last news;
surname is used (Art. 378)
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• Five years in case the absentee has left a c. When a third person appears, showing by a
person in charge of the administration of his proper document that he has acquired the
property (Art. 384) absentee’s property by purchase or other title
(Art. 389)
Who may ask for the declaration of absence:
1. The spouse present; IV. PRESUMPTION OF DEATH
2. The heirs instituted in a will, who may present A person shall be presumed dead:
an authentic copy of the same; • For all purposes: When he or she has
3. The relatives who may succeed by the law of been absent for seven years, it being
intestacy; unknown whether or not he or she still
4. Those who may have over the property of the lives
absentee some right subordinated to the • For purposes of succession: When he
condition of his death (Art. 385) or she has been absent for ten years
o Except, in case he disappeared
When shall the judicial declaration take effect: after the age of seventy-five
6 months after its publication in a newspaper of years, five years shall be
general circulation (Art. 386). sufficient (Art. 390).
• For purposes of remarriage: When the
However, the absence of the absentee shall be spouse has been absent for four
counted from the date on which the last news of consecutive years (Art. 41).
the absentee was received (Jones v. Hortiguela,
G.R. No. 43701, 1937). NOTE: Except for purposes of remarriage under
Article 41, there is no need for filing a case for
III. ADMINISTRATION OF THE PROPERTY OF presumptive death.
THE ABSENTEE
Other instances when a person is presumed
Rules on appointing an administrator (Art. dead for all purposes:
387): a. A person on board a vessel lost during a sea
a. The present spouse shall be preferred voyage, or an airplane which is missing, who
b. The wife, in case appointed as administratrix has not been heard for four years since the
of the husband’s property, cannot alienate or loss of the vessel or airplane;
encumber said property or that of the conjugal b. A person in the armed forces who has taken
partnership part in war, and has been missing for four
Except: When there is judicial authority (Art. years;
388) c. A person who has been in danger of death
NOTE: This also applies in case the husband under other circumstances and his existence
is appointed as administrator has not been known for four years. (Art. 391)
c. If no spouse or in case they are legally Effect of reappearance or subsequent proof of

separated, any competent person may be existence:
appointed The absentee shall recover:
a. His or her property in the condition in which it
The administration shall cease in any of the may be found
following cases: b. The price of any property that may have been
a. When the absentee appears personally or by alienated or property acquired therewith;
means of agent; However, he or she cannot claim the fruits and
b. When the death of the absentee is proved and rents from such property. (Art. 392)
his testate or intestate heirs appear
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Exception: for clerical or typographical errors or
P. CIVIL REGISTRAR change in the name or nickname of a person (Sec.
3, RA 9048)
What shall be recorded in the civil register
Acts, events, and judicial decrees concerning civil Other matters pertaining to the registration of
status (Art. 407) civil status
• Governed by special laws (Art. 413)
This includes: • Example:
a. Births; o The Civil Registry Law or Act. No.
b. Marriages; 3753 provides for the registration of
c. Deaths; documents evidencing the acquisition
d. Legal separations; or termination of a particular civil
e. Annulment of marriages; status such as legitimation, adoption,
f. Judgments declaring marriages void ab initio; change of name, marriage,
g. Legitimations; termination of such marriage and
h. Adoptions; others.
i. Acknowledgments of natural children;
j. Naturalization; J. Leonen: the current governing law on
k. Loss or recover of citizenship; changes of first name, defines a clerical or
l. Civil interdiction; typographical error as a recorded mistake,
m. Judicial determination of filiation; "which is visible to the eyes or obvious to the
n. Voluntary emancipation of a minor; and understanding.” To correct simply means "to
o. Change of name make or set right; to remove the faults or error
from." To change means "to replace
In case of judicial orders mentioned above, the something with something else of the same
clerk of court which issued the decree has the duty kind or with something that serves as a
to ascertain whether such order has been substitute. The applicable law for the current
registered. If it has not been done, the clerk shall petition is R.A. No. 9048 (as R.A. 10172 was not
send a copy of said decree to the civil registry of yet enacted when petition was filed) which
the city or municipality where the court is removed the correction of clerical or
functioning (Art. 409). typographical errors from the scope of Rule
108. It also dispensed with the need for judicial
The books making up the civil register and all proceedings in case of any clerical or
documents relating thereto shall be considered typographical mistakes in the civil register, or
public documents and shall be prima facie changes of first name or nickname. However,
evidence of the facts therein. the petition to correct X's biological sex was
rightfully filed under Rule 108 as this was a
The civil registrar shall be civilly responsible to any substantial change excluded in the definition
person suffering damage thereby, for of clerical or typographical errors in R.A. No.
unauthorized alteration in the civil register 9048. It was only when R.A. No. 10172 was
• Except if he proves that he has taken enacted on August 15, 2012 that errors in
reasonable precaution to prevent such entries as to biological sex may be
alteration (Art. 411). administratively corrected, provided that they
involve a typographical or clerical error.
General rule: An entry in a civil register shall be However, this is not true for all cases as
changed or corrected only with a judicial order corrections in entries of biological sex may
still be considered a substantive matter.
(Republic v. Gallo, G.R. No. 207074, 2018)
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The following changes were correctly
considered merely clerical or typographical
errors:
a. Change of name from “Michael Gallo”
to “Michelle Soriano Gallo”
b. Inclusion of middle name of both
parents
c. Inclusion of parent’s marriage details
————- end of topic ————
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PROPERTY
Civil Law
ATENEO CENTRAL
VII. Loss or termination of the

PROPERTY possession
TOPIC OUTLINE UNDER THE SYLLABUS G. USUFRUCT

I. Characteristics
A. CLASSIFICATION OF PROPERTY II. Classification
III. Rights and obligations of
I. Immovables
usufructuary
II. Movables
IV. Rights of the owner
V. Extinction, termination, and
B. OWNERSHIP
extinguishment
I. Bundles Of Rights
II. Actions to Recover Ownership and
H. EASEMENTS
Possession of Real Property and its
Distinction
I. Characteristics
III. Actions for recovery of possession II. Classification
of movable property III. Modes of acquiring easements
IV. Distinction between real and IV. Rights and obligations of the owners
personal rights of the dominant and servient estates
V. Modes of acquiring ownership V. Modes of extinguishment
VI. Limitations of ownership
I. NUISANCE
C. ACCESSION I. Nuisance per se
I. Accession Natural II. Nuisance per accidens
II. Rules of accession for movables III. Liabilities
IV. No prescription
D. QUIETING OF TITLE V. Criminal prosecution
I. Requisites VI. Judgment with abatement
II. Distinctions between quieting of title VII. Extrajudicial abatement
and removing / preventing a cloud VIII. Special injury to individual
III. Prescription / non-prescription of IX. Right of individual to abate a public
action nuisance
X. Right to damages
E. CO-OWNERSHIP XI. Defenses to action
I. Characteristics of co-ownership XII. Who may sue on private nuisance
II. Sources of co-ownership
III. Rights of co-owners J. MODES OF ACQUIRING OWNERSHIP
IV. Termination of co-ownership I. Occupation
II. Donations
F. POSSESSION III. Prescription
I. Characteristics
II. Acquisition of possession
III. Effects of possession
IV. Loss or unlawful deprivation of a
movable
V. Possession in concept of owner,
holder, in one’s own name, and in
name of another
VI. Rights of the possessor
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A. CLASSIFICATION OF PROPERTY I. IMMOVABLES
As to Mobility Four Juridical Classifications Of Immovable

a) Movable Properties: (NIDA) (Tolentino, supra, p. 8)
b) Immovable 1. by Nature
2. by Incorporation
As to Ownership 3. by Destination
a) Public property 4. by Analogy
b) Private property
Immovable by NATURE – cannot be moved
As to Alienability
from place to place, to wit:
a) Within the commerce of man (or which may
be the objects of contracts or judicial 1. Land (Art. 415 (1))
transactions) 2. Buildings (Art. 415 (1))
b) Outside the commerce of man 3. Roads (Art. 415 (1))
4. Constructions of all kinds adhered to soil
As to Existence 5. Mines, quarries, and slag dumps, while the
a) Present property (res existents) matter forms part of the bed (Art. 415 (8))
b) Future property (res futurae) 6. Waters, either running or stagnant (Art. 415
(8))
Note: Both present and future property may be
the subject of sale but generally not the subject of Note: A structure, which is merely superimposed
donation. on the soil, may be considered movable.
Similarly, a shovelful of land is a movable for it is
As to Materiality no longer adhered to the soil.
a) Tangible or corporeal
b) Intangible or incorporeal Note: When the minerals have been extracted,
they become movables.
As to Dependence or Importance
a) Principal Buildings are always immovable under the Code.
b) Accessory The mere fact that the parties to a contract treat
the building as separate does not change its
As to Capability of Substitution character as immovable property. (Punsalan v.
a) Fungible: Capable of substitution by other Lacsamana, GR No. L-55729, 1983)
things of the same quality and quantity
b) Non-Fungible: Incapable of such Once a house is demolished, its character as an
substitution, hence, the identical thing must immovable ceases. (Bicerra v. Teneza, GR No.
be given or returned L-16218, 1962)
As to Nature or Definiteness A mortgage of land necessarily includes

a) Generic – one referring to a group or class buildings, in the absence of stipulation of the
b) Specific – one referring to a single, unique improvements thereon. A building by itself may
object be mortgaged apart from the land on which it has
been built. Such would be a real estate mortgage
As to Whether In The Custody Of The Court Or for the building would still be considered
Free immovable property. (Leung Yee v. Strong
a) In “Custodia Legis” – in the custody of the Machinery, GR No. L-11658, 1918)
court
b) “Free” property (Tolentino, supra, p. 7-10)
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A valid real estate mortgage can be constituted 2. Trees blown by a typhoon (part of the land
on the building erected on the land belonging to upon which they rest)
another. (Prudential Bank v. Panis, GR No. L-
50008, 1987) Attached to an Immovable in a Fixed Manner
Requisites:
A party to a chattel mortgage is estopped from
1. Intent to attach permanently is essential;
assailing the deed as void on the ground that
2. In case of separation, the injury, breakage,
deterioration must be Substantial. (Art. 415
the house subject of the mortgage is real
(3))
property. Parties are bound by their agreement,
but not third persons. (Tumalad v. Vicencio, GR
No. L-30173, 1971) Note: Schools of Thought in Temporary
Separation
If contracting parties stipulate that a real property May either be:
be considered personal, they are consequently 1. Immovable if there is intent to put them back;
estopped from claiming otherwise. However, or;
third persons acting in good faith are not affected 2. Movable because the material fact of
by the stipulation characterizing the subject incorporation is what determines its
machinery as personal. (Serg’s Products v. PCI condition.
Leasing, GR No. 137705, 2000)
Statues, Reliefs, Painting, or Other Objects for
Immovable by INCORPORATION – essentially Use or Ornamentation
movables but attached to an immovable in a fixed Requisites:
manner to be an integral part of it, to wit: 1. Placed by the Owner of the immovable (not
1. Trees, plants, and growing crops (Art. 415 the object) or his agent;
(2)) 2. Intent to attach them Permanently to the
2. Everything attached to an immovable in a tenements. (Art. 415 (4))
fixed manner (Art. 415 (3))
3. Statues, reliefs, paintings, or other objects for Animal Houses, Pigeon Houses, Beehives,
use or ornamentation, placed in buildings or Fishponds, or Breeding Places of Similar
on land (Art. 415 (4)) Nature
4. Animal houses, pigeon houses, beehives, Requisites:
fishponds, or breeding places of similar
1. Placed by the Owner of the immovable or his
nature (Art. 415 (6))
agent;
2. Intent to attach them Permanently to the land.
Trees, Plants, and Growing Crops (Art. 415 (6))
Trees and plants are immovable by by
incorporation if they are planted through labor
Note: Includes the animals found therein.
but are immovable by nature if they are
spontaneous products of the soil.
Immovable by DESTINATION – movable placed
on immovable for the utility it gives to the activity
Note: Once cut or uprooted, they cease to be
carried thereon:
immovable.
1. Machinery, receptacles, instruments, or
Exceptions: implements (Art. 415 (5))
2. Fertilizer actually used on a piece of land (Art.
1. Uprooted timber if the land is timber land
415 (7))
(timber still forms an integral part thereof);
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3. Docks and structure which, though floating, Note: A floating house is an immovable if it is tied
are intended by their nature and object to to a shore or bank post, otherwise it is a movable.
remain at a fixed place on a river, lake, or Otherwise, it assumes the category of a vessel.
coast (Art. 415 (9))
Note further: Although personal property,
Machinery, Receptacles, Instruments or vessels partake, to a certain extent, the nature
Implements for an Industry or Works and conditions of real property because of their
Requisites: value and importance in the world of commerce.
1. Industry or works must be Carried on inside
Immovable by Analogy or by Law – Contracts
the building or on the land;
for public works, servitude & other real rights
2. Placed by the Owner of the building or
over immovable property (Art. 415 (10))
property or his agent;
3. Machines must be Essential and principal
elements in carrying out the industry; II. MOVABLES
4. Machines must tend Directly to meet the
needs of said industry or works (adaptability). Movable: (SIFTOS)
(Art. 415 (5)) 1. Susceptible of appropriation that are not
included in enumeration in immovables. (Art.
416 (1))
Note: Incidentals are not included (movables
2. Immovables that are designated as movables
without which the businesses can still continue or
by special provision of law. (Art. 416 (2))
carry on their functions)
3. Forces of nature brought under control by
science. (Art. 416 (3))
Machinery is immobilized if placed by owner of
plant or property; not so if placed by a tenant or
4. Things which can be transported w/o
usufructuary or any person having any temporary
impairment of real property where they are
right. (Davao Sawmill Co. v. Castillo, GR No. L-
fixed (Art. 416 (4))
40411, 1935)
5. Obligations, which have for their object
movables or demandable sums (credits),
Equipment destined only to repair or service a
obligations and actions must be legally
transportation business may not be deemed real
demandable - demandable sums must be
property. (Mindanao Bus v. City Assessor, GR
liquidated (Art. 417 (1))
No. L-17870, 1962)
6. Shares of stock of agricultural, commercial &
industrial entities although they may have
Note: Attachment or incorporation to the
real estate (Art. 417 (2))
immovable is not essential.
Susceptible of Appropriation
Fertilizer Actually Used on a Piece of Land
An interest in business, that is, providing
Fertilizers still in the barn or still wrapped inside
telecommunication and telephone service, is
some newspaper even though already on the
personal property since it is capable of
ground are still movables.
appropriation and not included in the enumeration
of real properties. Thus, it could be subject of theft
Docks and Floating Structures
under the RPC. (Laurel v. Abrogar, GR No.
Docks and structures which, though floating, are
155076, 2009)
intended by their nature and object to remain at a
fixed place on a river, lake, or coast are
Designated by Special Provision of Law
considered immovable. (Art. 415 (9))
Growing crops are considered immovable under
Art. 415(2) but personal property under Chattel
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Mortgage Law (Sibal v. Valdez, GR No. L-26278, disposition, and recovery, subject only to the
1927) restrictions or limitations established by law and
the rights of others. (Art. 427)
House built on leased land may be treated as
personal property and be the object of a chattel Possession is an essential attribute of ownership.
mortgage, insofar as the parties are concerned. Whoever owns the property has the right to
(Navarro v. Reyes, GR No. L-18456, 1963) possess it. Adjudication of ownership includes the
delivery of possession if the defeated party has
Forces of Nature not shown any right to possess the land
Electricity, gas, rays, heat, light, oxygen, atomic independently of her rejected claim of ownership.
energy, water, power etc. Electricity, the same as (Pascual vs. Daquioag, GR No. 162063, 2014)
gas, is an article bought and sold like other
personal property and is capable of appropriation TITLE - that which constitutes a just cause of
by another. (United States v. Carlos, GR No. exclusive possession or which is the foundation
6295, 1911) of ownership of property.
Classification of Movables According to KINDS OF OWNERSHIP:

Nature 1. Full Ownership (dominium or jus in re
1. Consumable – cannot be utilized w/o being propia) – includes all the rights of the
consumed owner
2. Non-consumable (Tolentino, supra, p. 10) 2. Naked Ownership (nuda proprietas) –
where the right to the use and the fruits
According to Intention of the Parties/Purpose has been denied
(whether it can be substituted by other things of a. Naked ownership + Usufruct = Full
same kind, quality and quantity) ownership
1. Fungible (res fungibles) – only the equivalent 3. Sole Ownership – ownership is vested
is returned only in one person
2. Non-fungible (res nec fungibles) – the 4. Co-Ownership/ Tenancy In Common –
identical thing is returned; do not admit of ownership is vested in two or more
substitution (Tolentino, supra, p. 10) owners; unity of the property, plurality of
the subjects; each co-owner is the owner
Tests To Determine Whether Property Is Real of the whole and at the same time, the
Or Personal owner of an undivided part thereof.
1. Whether the property can be transported
or carried from place to place I. BUNDLE OF RIGHTS
2. Whether such change of location can be
made without injuring the immovable to Seven Rights Of Ownership (PUFA-DVA) (De
which the object may be attached leon, Comments and Cases on Property, 77,
3. Whether the object does not fall within 1993)
any of the cases enumerated in Art. 415 1. Jus Possidendi (right to possess)
a. Right to hold the thing and does not
————- end of topic ————- necessarily include the right to use (e.g.
contract of deposit)
B. OWNERSHIP
2. Jus Utendi (right to use and enjoy)
OWNERSHIP - the independent and general right a. Includes the right to exclude any person
of a person to the exclusive enjoyment and from the enjoyment and disposal thereof
control of a thing in his possession, enjoyment,
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b. Limitation: use in such a manner as not to dispossession lasts for more than a year, then an
injure the rights of a third person accion publiciana must be filed. The second
distinction concerns jurisdiction. Ejectment
3. Jus Fruendi (right to fruits) cases, being summary in nature, are led with the
a. Right to the fruits MTC. Accion publiciana, however, can only be
b. Kinds of Fruits: (NIC) taken cognizance by the RTC. (Eversley Childs
i. Natural Sanitarium v. Spouses Anastacio and Perla
ii. Industrial Barbarona, G.R. No. 195814, 2018)
iii. Civil
3. Accion Reivindicatoria - filed within the
4. Jus Abutendi (right to consume) same prescriptive period as accion publiciana
a. Includes the right to transform or abuse by (10 years) with the proper RTC. It involves
its use both the issue of possession and ownership,
that is:
5. Jus Disponendi (right to dispose) that the plaintiff is the owner of the land or
a. Also includes the right not to dispose, or to possessed it in concept of owner; and
alienate the defendant dispossessed him of the land.
6. Jus Vindicandi (right to vindicate or recover) 4. Writ of Possession - An order directing the
a. Includes the right of action against the sheriff to place a successful registrant under
holder and possessor of the thing in order the Torrens system in possession of the
to recover it property covered by a decree of the court
7. Jus Accesionis (right to accessories) When proper: (FEEEL)

a) Foreclosure, judicial or extra-judicial, of
II. ACTIONS TO RECOVER OWNERSHIP AND mortgage. Provided that the mortgagor has
POSSESSION OF REAL PROPERTY AND ITS possession and no third party has intervened
DISTINCTION b) Ejectment
c) Execution sales
IMMOVABLE PROPERTY - d) Eminent domain proceedings
1. Accion Interdictal or ejectment suit – e) Land registration cases
forcible entry and unlawful detainer. This
summary action is filed with the proper MTC 5. Writ of Demolition – Necessarily issued with
within 1 year from the forcible entry or last writ of possession
demand to vacate in the case of illegal
detainer. A boundary dispute must be resolved in the
2. Accion Publiciana - plenary action to context of accion reivindicatoria, not an ejectment
recover the right of possession which should case. The boundary dispute is not about
be brought in the RTC within 10 years when possession, but encroachment, that is, whether
dispossession has lasted for more than one the property claimed by the defendant formed
year. part of the plaintiff’s property. (Manalang vs.
Bacani, GR No. 156995, 2015)
Although both ejectment and accion publiciana
are actions specifically to recover the right of Effect of the Lapse of One-Year Period
possession, they have two (2) distinguishing If the dispossession allegedly took place by any
differences. The first is the filing period. of such means but the action is not brought within
Ejectment cases must be filed within one (1) year one year from deprivation of possession, the
from the date of dispossession. If the action is properly a plenary action of accion
publiciana or accion de reivindiacion. (Penta
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Pacific Realty Corp v. Ley Construction and whether he employed rational means to avert the
Development Corp., GR 161589, 2014) threatened injury. (De Leon, supra, p. 99).
The owner of the sacrificial property is obliged to

Writ of Injunction tolerate the act of destruction but subject to his
General Rule: Generally not available as a reimbursement by all those who benefited. (De
remedy (Reason: The presumption is that the one leon, supra)
in possession disputably have the better right)
In case of conflict between the exercise of the
Exception: When injunction is allowed: right of self-help and a proper and licit state of
1. Actions for forcible entry necessity, the latter prevails because there is no
a) Writ of preliminary injunction within 10 unlawful aggression when a person or group of
days from filing of the complaint to persons acts pursuant to the right given in a state
restore plaintiff in possession of necessity. (Tolentino, supra, p. 70)
b) Courts shall decide within 30 days
III. ACTIONS FOR RECOVERY OF
2. Ejectment POSSESSION OF MOVABLE PROPERTY
a) If possessor is a possessor in concept of
an owner (possession de jure) for over a MOVABLE PROPERTY: REPLEVIN / MANUAL
year and being disturbed by repeated DELIVERY
intrusions of a stranger 1. Both principal and provisional remedy
b) If an owner, still in possession, desires to 2. Plaintiff shall state in the affidavit that he is
prevent repeated intrusions by a stranger the owner of the property claimed, particularly
c) If the possessor is clearly not entitled to describing it or that he is entitled to
property possession, and that it is wrongfully detained
by the other
DOCTRINE OF STATE OF NECESSITY 3. Plaintiff must also give a bond double the
amount of value of the property (Rules of
State of Necessity – the principle that authorizes Court, Rule 60, Sec. 2)
the destruction of a property which is lesser in
value to avert the danger posed to another Period
property the value of which is much greater. (Art. 4 or 8 years from the time the possession thereof
432) is lost, in accordance with Art. 1132
Requisites of State of Necessity When Replevin Not Allowed: (WIP-CT)

1. Interference necessary to avert an 1. Property is placed In Custodia legis
imminent danger. 2. Taken for Tax assessment
2. Damage to another much greater than 3. Seized under Writ of execution
damage to property (Art. 432) 4. A machinery and equipment used for an
industry and Indispensable for the carrying on
Comparative Danger – Danger must be greater of such industry (Reason: they are
than damage to property. Consider the economic considered real properties)
and sentimental value of the property. (Tolentino, 5. Seized under Preliminary attachment. (Rules
supra, p. 68-69) of Court, Rule 60, Sec. 2)
Measure of Rational Necessity – the law does

not require a person acting in a state of necessity
to be free from negligence or mistake. He must
be given the benefit of reasonable doubt as to
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IV. DISTINCTION BETWEEN REAL AND Extinguished by loss Not extinguished by

PERSONAL RIGHTS or destruction loss or destruction
Real Right v. Personal Right Modes of Acquiring Ownership (OLD-TIPS)

JUS IN REM JUS IN PERSONAM 1. Occupation
The power of a person The power belonging 2. Law
to obtain certain to a person to 3. Donation
financial or economic demand from 4. Tradition
advantage over a another, as definite 5. Intellectual Creation
specific thing, a power passive subject- 6. Prescription
enforceable against debtor, the fulfilment 7. Succession (Art. 712)
the whole world, of a prestation to give,
whether or not he to do, or not to do. Mode – is the process of acquiring or transferring
possesses the thing. ownership
Has a specific object Affects all the present
and future property of Title – is the juridical act, right or condition which
the debtor gives the juridical justification for a mode or
There is one definite There is a definite means to their acquisition but which in itself is
active subject (like the active subject (the insufficient to produce them. (De Leon, supra, p.
owner or creditor); and a 578-579)
usufructuary); the rest definite passive
of the world is the subject (the debtor). Difference between Mode and Title
indefinite passive Thus a personal right MODE TITLE
subject. Thus, a real is enforceable only Directly and Serves merely to give
right follows its object against the original immediately produces the occasion for its
in the hands of the debtor or a transferee a real right acquisition or
possessor (binding on who has notice or existence
the whole world) knowledge The cause The means
The right is created It is exercised thru Proximate cause Remote cause
directly over a thing another person, Essence of the right Means whereby that
against whom an which is to be created essence is
action may be brought or transmitted transmitted
The right is over a The right is to a thing
thing Original Mode – there being no previous or pre-
Limited by the value, Not so limited existing or preceding title or right of another.
use or productivity of Derivative Mode – there was a preceding owner.
the things (De Leon, supra, p. 580)
Created by both mode Created by title alone,
& title except when the title V. LIMITATIONS OF OWNERSHIP
is at the same time
the made, as in Limitations on the Right of Ownership
succession (CLOGS) (De leon, supra, p. 92)
Subject matter is Subject matter is 1. Those arising from Conflicts of private rights
generally corporeal intangible or (e.g. those which take place in accession
incorporeal (for it is continua)
the fulfilment of the 2. Those imposed by Law (e.g. Legal
duty or prestation) easements)
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3. Those imposed by the Owner himself (e.g.

Voluntary easement, pledge, lease)
4. Those imposed by the Grantor of the property II. RULES OF ACCESSION
on the grantee
a. by contract (e.g. donation) Accession – right of the owner of a thing, real or
b. by last will personal, to become the owner of everything
5. Those imposed in general by the State (Art. which is produced thereby, or which is
435) incorporated or attached thereto, either naturally
a. Power of eminent domain or artificially. (Art. 440)
b. Police power
c. Power of taxation Note: It is not one of the modes of acquiring
ownership enumerated in Art. 712. (Manresa, 6th
Right of Ownership not Absolute Ed., Vol. 3, p. 116; 180-182)
The welfare of the people is the supreme law of
the land (Salus populi suprema est lex). Classification of Accession
1. Accession Discreta
Note: The owner bears the loss of the property 2. Accession Continua
owned by him (Res perit domino).
ACCESSION DISCRETA
Limitations Imposed On The State: Accession Discreta – the extension of the right
1. Eminent Domain; of ownership of a person to the products of a thing
2. Police Power; which belongs to such person. (Paras, Civil Code
3. Taxation of the Philippines Annotated Property Articles,
414-773, 211, 2016)
It takes place with respect to:
C. ACCESSION 1. Natural Fruits – spontaneous products of the
I. RIGHT TO HIDDEN TREASURE soil and the young of animals.
2. Industrial Fruits – those produced by lands
Concept of Treasure: (HUM) of any kind through cultivation or labor.
1. Hidden and unknown 3. Civil Fruits – rent of buildings, the price of
2. Unknown owner lease of lands and other property and the
3. Consists of Money, jewels, or other precious amount of perpetual or life annuities or other
objects. (not raw materials) (Art. 439) similar income. (Art. 442)
Right to Hidden Treasure (Art. 438) General Rule: All fruits belong to the owner of a
FINDER PERSON ENTITLED thing. (Art. 441)
Finder is the same as Treasure totally
owner of the property belongs to him. Exceptions: (PULPA)
Finder is third person Finder is entitled to 1. Possession in good faith by another; (Art. 554
and he discovered it one half of the value (1))
by chance of the treasure. 2. Usufruct; (Art. 566)
Finder is an intruder He is not entitled to 3. Lease of rural lands; (Art. 1654)
anything 4. Pledge;
Finder was given Subject to the 5. Antichresis. (Art. 2132)
express permission by contract of service
the owner and principle of ACCESSION CONTINUA
unjust enrichment
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Accession Continua – the extension of the right materials, provided

of ownership of a person to that which is no substantial injury
incorporated or attached to a thing which belongs to work done
to such person.
It may take place: BAD FAITH GOOD FAITH
1. With respect to real property LO – BPS can acquire OM is entitled to full
a. Accession industrial; the materials, payment for value of
b. Accession natural provided there is full materials plus
2. With respect to personal property payment plus damages
a. Adjunction or conjunction; damages
b. Commixtion or confusion; or
c. Specification. (Paras, supra, p. 209-
210) OM may remove
materials even if
Accession Industrial: Principles there’s substantial
1. Accessory follows the principal. injury to work done,
2. The incorporation or union must be intimate plus damages
that removal or separation cannot be effected GOOD FAITH BAD FAITH
without substantial injury to either or both. LO-BPS can acquire OM loses materials
3. Good faith exonerates a person from punitive the materials without without indemnity and
liability but bad faith may give rise to dire paying for the value will be liable for
consequences. thereof and will be damages due to
4. Bad faith of one party neutralizes the bad entitled to damages defects or inferior
faith of the other. due to defects or quality of materials.
5. No one should enrich himself at the expense inferior quality of
of another. (Paras, supra, p. 221) materials.
BAD FAITH
a. For Immovables LO – BPS can acquire OM entitled to
the materials, (1) full payment for
Two Disputable Presumptions As To provided there is full value of materials or
Improvements On Land payment (2) OM may remove
1. Works are made by the owner materials, provided
2. Works are made at the owner’s expense (Art. no substantial injury
446) to work done
Note: This chart is from Atty. Francis H. Ampil
Rules When Landowner–
Builder/Planter/Sower (LO-BPS) makes Planting — pertains to a perennial fact.
Constructions/Plantings with Materials of Something that will grow and produce fruits year
Another (OM) (Art. 455) after year without having to be replanted. (Paras,
LANDOWNER – OWNER OF supra, p. 220-221)
BUILDER / MATERIALS (OM)
PLANTER/ SOWER Note: planter may be required to buy the land.
(LO - BPS)
GOOD FAITH Sowing — pertains to an annual crop. Something
LO – BPS can acquire OM entitled to that will grow and produce fruits and then you
the materials, (1) full payment for plant again before it will produce fruits again.
provided there is full value of materials or (Paras, supra, p. 221)
payment (2) OM may remove
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Note: sower may be required to pay rent.
Rules When Landowner Sells Land To a 3rd

Exceptions to the Rule on Builders: Person Who Is In Bad Faith:
Possession as Mere Holder Builder must go against the third person. When
Rule does not apply where the builder, knowing the third person has paid the landowner, the
that the land is not his, does not claim ownership builder may still file a case against the third
over the land but possesses it as mere Holder, person.
agent, usufructuary or tenant. (Paras, supra, p.
243) The third person may file a 3rd party complaint
against the landowner.
Exception to the exception
1. Tenant whose lease is about to expire, but
still sows, not knowing that the crops will no
longer belong to him.
2. A person constructs a building on his own
land, and then sells the land but not the
building to another.
a. No question of good faith or bad faith on
the part of the builder can be compelled
to remove the building;
b. New owner will not be required to pay any
indemnity for the building (Golengco v.
Regalado, 48 O.G. 5282)
3. Builder is a belligerent occupant (Republic v.
Lara, 50 O.G. 5282)
4. Builder, etc. is a co-owner even if later on,
during the partition, the portion of land used
is awarded to another co-owner; (Viuda de
Arias v. Aguilar, 40 O.G., 1941)
Note: For the rule to apply, the construction must

be of a permanent character, attached to the soil
with an idea of perpetuity.
If it is of a transitory character or is transferable,

there is no accession, and the builder must
remove the construction. (Alviola v. CA, GR No.
117642, 1998)
A mere promise by the landowner to donate the

property to the builder cannot convert the latter
into a builder in good faith. If at all, he is a mere
possessor by tolerance. A person whose
occupation of realty is by tolerance of its owners
is a not possessor in good faith. Hence, he is not
entitled to the value of the improvements built
thereon. (Verona Pada-Kilario v. CA, GR No.
134329, 2000)
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Rules When BPS Builds, Plants, Sows

On The Land Of Another LANDOWNER BUILDER/PLANTER/SOWER (BPS)
(LO)
A. GOOD FAITH
Option 1: To receive indemnity for necessary, useful and luxurious
To purchase whatever has been built, expenses (if the LO wants to appropriate the luxurious
planted or sown after paying indemnity improvements) with right of retention over the land without
which includes necessary expenses, useful obligation to pay rent until full payment of indemnity.
expenses and luxurious expenses (if the LO
wants to appropriate the luxurious To remove useful improvements provided it does not
improvements). 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).
Option 2: To oblige the BP to buy the land or To purchase land at fair market value when value is not
the S to pay the proper rent unless the value considerably more than that of the building or trees.
of the land is 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.
B. GOOD FAITH BAD FAITH
Option 1: To acquire whatever has been Loses whatever has been built, planted or sown without
built, planted or sown without paying indemnity and liable to pay damages.
indemnity except necessary expenses for
preservation of land and luxurious expenses Entitled to reimbursement for necessary expenses for
(should LO want to acquire luxurious preservation of land but no right of retention.
improvements) plus damages.
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.
Option 2: To oblige BP to buy land or S to Obliged to pay for land or proper rent and pay damages.
pay proper rent plus damages.
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Option 3: To compel BPS to remove or Obliged to remove or demolish work done at his expense
demolish work done plus damages. and pay damages.
C. BAD FAITH GOOD FAITH
To acquire whatever has been built, planted If LO acquires whatever has been built, planted or sown,
or sown by paying indemnity plus damages. 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.
D. BAD FAITH
Same as A. Same as A.
RULES WHEN THREE (3) PARTIES ARE INVOLVED:

LANDOWNER BUILDER/PLANTER/SOWER (BPS) OWNER OF MATERIALS (OM)
(LO)
A. GOOD FAITH
Option 1: To To receive indemnity from LO with right of To receive indemnity from BPS who is
acquire whatever retention over land until full payment. primarily liable for materials; if BPS is
has been built, insolvent, to proceed against LO who
planted or sown is subsidiarily liable with no right of
provided there is retention.
payment of
indemnity (which
includes value of
what has been
built, planted or
sown plus value of
materials used).
Option 2: To oblige To buy land or to pay proper rent. To receive indemnity from BPS only
BP to buy land or S (LO is not subsidiarily liable) with right
to pay proper rent of retention until full payment.
unless value of
land is or
considerably more
than that of To remove materials if there will be no
building or trees. injury on building or trees and will have
material rent lien against BPS for
payment of value of materials.
B. GOOD FAITH GOOD FAITH BAD FAITH
Same as A. Same as A. Whatever is the choice of LO, the OM:
1. loses the materials in favor of BPS,
and
2. will have no right to receive
indemnity from BPS nor LO.
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C. GOOD FAITH BAD FAITH BAD FAITH

Option 1. To BPS loses what has been built planted or (Since both BPS and OM are in bad
acquire whatever sown plus liable for damages but is faith, treat them both as if they are in
has been built, entitled to be indemnified for necessary good faith).
planted or sown expenses and luxurious expenses
without paying (should LO want to acquire luxurious Whatever is the choice of LO, OM has
indemnity except improvements) and has no right of right to receive indemnity for value of
necessary removal even if removal will not cause materials from BPS only (LO has no
expenses for damage. subsidiary liability for value of materials
preservation of because OM is considered in good
land and luxurious faith only insofar as BPS is
expenses (should concerned).
LO want to acquire
luxurious
improvements)
plus damages.
Option 2: To oblige To buy the land or pay proper rent and If LO chooses Option 1, OM has no
BP to buy the land liable to pay damages to LO. right to remove materials even if there
or S to pay proper will be no injury or damage. If LO
rent plus damages. chooses Option 2, OM has right of
removal, provided there will be no
injury or damage.
Option 3: To oblige To demolish or remove what has been Liable to pay for damages due to
BPS to demolish or built, planted or sowed and liable for defects or inferior quality of materials.
remove what has damages.
been built, planted
or sowed plus
damages.
D. BAD FAITH GOOD FAITH GOOD FAITH
To acquire what To receive indemnity from LO plus To receive indemnity for value of
has been built, damages. materials principally from BPS and in
planted or sown by case BPS is insolvent, subsidiarily
paying indemnity from LO.
plus liable to pay
damages.
E. BAD FAITH GOOD FAITH BAD FAITH
Same as D. Same as D. No right to receive indemnity for value
of materials from BPS nor LO (who
ends up owning buildings or trees).
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A lessee cannot be a builder in good faith. He is ornamental expenses, the lessee shall not be
estopped to deny his landlord’s title, or to assert entitle to any reimbursement, but he may remove
a better title not only in himself, but also in some the ornamental objects, provided no damage is
third person while he remains in possession of the caused to the principal thing, and the lessor does
leased premises and until he surrenders not choose to retain them by paying their value at
possession to the landlord. (Munar v. CA, GR No. the time the lease is extinguished.
100740, 1994); (Frederico Geminiano, et al. v.
CA, et al., GR No. 120303, 1996) Owner of the land on which improvement was
built by another in good faith is entitled to removal
Estoppel applies even if the lessor had no title at of improvement only after landowner chose to sell
the time. The relation of lessor and lessee was the land and the builder refused to pay for the
created and may be asserted not only by the same. Where the land’s value is greater than the
original lessor, but also by those who succeed to improvement, the landowner cannot compel the
his title. As lessees, they knew that their builder to buy the land. A “forced lease” is then
occupation of the premises would continue only created and the court shall fix the terms thereof in
for the life of the lease. They cannot be case the parties disagree thereon. (Depra v.
considered as possessors nor builders in good Dumlao, GR No. L-57348, 1985)
faith. (Racaza v. Susan Realty, Inc., GR No. L-
20330, 1966); (Vda. De Bacaling v. Laguna, GR The right to choose between appropriating the
No. L-26694, 1973); (Santos v. CA, 221 SCRA improvement or selling the land on which the
42, 1993) improvement of the builder, planter or sower
stands, is given to the owner of the land (not the
Even if the lessor promised to sell, it would not court) (Ballatan v. CA, GR No. 125683, 1999)
make the lessee possessor or builder in good
faith so as to be covered by the provisions of Art. Improvements made prior to the annotation of the
448 of the NCC, if he improves the land. The latter notice of lis pendens are deemed to have been
cannot raise the mere expectancy of ownership made in good faith. After such annotation, P can
of the land because the alleged promise to sell no longer invoke the rights of a builder in good
was not fulfilled nor its existence even proven. faith. Should E opt to appropriate the
(Jurado, Civil Law Reviewer, 2008) improvements made by P, it should only be made
to pay for those improvements at the time good
The owner of the land on which a building has faith existed to be pegged at its current market
been built in good faith by another has the option value. (Carrascoso v. CA, GR No. 123672, 2005)
to buy the building or sell his land to the builder,
he cannot refuse to exercise either option.
(Sarmiento v. Agana, GR No. L-57288, 1984)
Note: For lessees, do not apply the rules on

BPS. Apply Art. 1678 which states: If the
lessee makes, in good faith, useful improvements
which are suitable to the use for which the lease
is intended, without altering the form or substance
of the property leased, the lessor, upon
termination of the lease shall pay the lessee one-
half of the value of the improvements at that time.
Should the lessor refuse to reimburse said
amount, the lessee may remove the
improvements, even though the principal thing
may suffer damage thereby. With regard to
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ACCESSION
Accession Accession
Discreta Continua
Natural Industrial Civil Real Personal

Fruits Fruits Fruits
Accession Accession Adjunction/ Specification Mixed

Industrial Natural Conjunction
Spontaneous
products of the
soil, rents of buildings
price of leases of commixtion
Young and land & confusion
other products other property (ISTEP)
Building
of animals amount of Alluvium Inclusion or
Planting
perpetual or life Avulsion engraftment
Sowing
annuities or Change of Soldadura or
other similar course soldering
income of rivers Tejido or
Formation of weaving
islands Escritura or
writing
Pintura or
Painting
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Principal Forms of Accession Natural: the coastguard service, the Government shall
1. Alluvium (Art. 457) declare them to be the property of the owners of
2. Avulsion (Art. 459) the estates adjacent thereto and as an increment
3. Change of course of rivers (Arts. 461-462) thereof.” (Lanzar v. Dir. Of Lands, GR No. L-
4. Formation of islands (Art. 464-465) 31934, 1977)
Alluvium – the accretion which the banks of Avulsion – accretion which takes place when the
rivers gradually receive from the effects of the current of a river, creek, or torrent segregates
current of the waters and which belong to the from an estate on its bank a known portion and
owners of lands adjoining the said banks. (Art. transfers it to another estate, in which case, the
457) owner of the estate to which the segregated
portion belonged, retain the ownership thereof.
Accretion – act or process by which a riparian (Art. 459)
land gradually and imperceptively receives
addition made by the water to which the land is Alluvium vs. Avulsion
contiguous. (Paras, supra, p. 265) ALLUVIUM AVULSION
Deposit of soil is Deposit of soil is
Essential Elements of Alluvium: (GCA) gradual and sudden or abrupt.
1. Deposit or accumulation of soil or sediment imperceptible.
must be Gradual and imperceptible. (Art. Soil cannot be Soil is identifiable and
457) identified. verifiable.
2. Accretion results from the effects or action of Deposit of soil Deposit of soil belongs
the Current of the waters of the river. (Gov’t belongs to the to the owner from
of the Phils. v. Cabangis, 53 Phil. 112, 1929) owner of the whose property it was
3. The land where accretion takes place must property to which it detached.
be Adjacent to the bank of a river. (Art. 457) is attached.
Registration under the Torrens System does not Essential Elements of Avulsion: (CSK)
protect the riparian owner against the diminution 1. Segregation and transfer must be caused by
of the area of his registered land through gradual the Current of a river, creek or torrent. (Art.
changes in the course of an adjoining stream. 459)
(Viajar v. CA, GR No. 77294, 1998) 2. Segregation and transfer must be Sudden or
abrupt. (Canas v. Tuason, 5 Phil. 688, 1929)
Failure to register the acquired alluvial deposit by 3. The portion of land transported must be
accretion for 50 years subjected said accretion to Known or identifiable. (Art. 459)
acquisition through prescription by third persons.
(Reynante v. CA, GR No. 95907,1992) Note: In avulsion, the owner should remove the
transferred portion within two (2) years;
The rules on alluvion do not apply to man-made otherwise, it becomes permanently attached.
or artificial accretions to lands that adjoin canals (Art. 459)
or esteros or artificial drainage system. (Ronquillo
v. CA, GR No. L-43346, 1991) Uprooted Trees - Trees uprooted and carried
away by the current of the waters (Art.460)
Lands added to the shores by accretions and
alluvium deposits caused by the action of the sea,
form part of the public domain. When they are no
longer washed by the waters of the sea, and are
not necessary for the purposes of public utility, or
for the establishment of special industries, or for
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Rules Regarding Uprooted Trees Islands Formed in Non-Navigable or Non-

OWNERS DO NOT OWNERS CLAIM Floatable Rivers:
CLAIM WITHIN WITHIN 6MOS 1. Belong to the owners of the margins or
6MOS banks of the river nearest to each of
Belong to the owner Owners pay the them.
of the land upon expenses incurred in 2. If in the MIDDLE of the river – divided
which the trees may gathering them or longitudinally in halves (Art.465)
be cast. (Art. 460) putting them in a safe
place. (Art. 460) Note: Riverbeds that dry up continue to belong to
the State as its property of public dominion,
Change of Course of Rivers unless there is an express law that provides that
Requisites: the dried-up river beds should belong to some
1. There must be a natural change in the course other person. (Republic vs. Santos III, GR No.
of the waters of the river. 160453, 2012)
2. The change must be abrupt or sudden. (Art.
461) Rules of Accession for Movables
Right Of Owner Of Land Occupied By New Adjunction or Conjunction –process whereby

River Course: two (2) movable things owned by different
1. Right to old bed ipso facto in proportion to persons are joined together without bad faith, in
area lost; such a way that they form a single object. (Art.
2. Owner of adjoining land to old bed: right to 466)
acquire the same by paying its value – Value
not to exceed the value of area occupied by Requisites: (SID)
new bed. (Art. 461) 1. The two things belong to Different owners.
2. They form a Single object.
New Riverbanks 3. They are Inseparable; that their separation
Whenever a river, changing its course by natural would impair their nature or result in
causes, opens a new bed through a private substantial injury to either component.
estate, this bed shall become of public dominion. (Paras, supra, p. 265)
(Art.462)
Classes of Adjunction: (ISTEP)
New riverbed may itself be abandoned, due to 1. Inclusion (engraftment)
natural or artificial causes authorized by law. 2. Soldadura (soldering)
a. Feruminatio – same metal
Owners will get back this previous property if the b. Plumbatura – different metals
course of the river reverts to its original place. 3. Tejido (weaving)
(Sanchez v. Pascual, 11 Phil. 395, 1969) 4. Escritura (writing)
5. Pintura (painting) (Paras, supra, p. 291)
Islands Belonging to the State
Islands, which may be formed: General Rule: The owner of the principal thing
1. On the seas within the jurisdiction of the acquires the accessory, indemnifying the former
Philippines. owner for its value. (Art. 466)
2. On lakes; and
3. On navigable or floatable rivers. (Art.464) Test To Determine Principal:
The principal thing is deemed to be that to which
the other has been united as an ornament, or for
its use or perfection. (Art. 467.)
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If it cannot determined: (Rule of importance and extent that the components lose their identity.
purpose) (Art. 472)
1. Greater value = If they are of unequal value
2. Greater volume = If they are of equal value Kinds:
3. Greater merits (Art. 467 & 468) 1. Commixtion – mixture of solid things
2. Confusion – mixture of liquid things
When Separation Allowed:
1. Separation without injury (Art.469) Rules:
2. Separation with injury – accessory is much 1. Mixture by the will of the owners
more precious than the principal; the owner a. Rights governed by stipulations
of the former may demand its separation b. Without stipulation: each acquires a right
even though the principal may suffer injury. or interest in proportion to the value of his
(Art.469) material. (Paras, supra, p. 297)
3. Owner of principal in bad faith. (Art.470 (2)) 2. Mixture caused by an owner in good faith or
by chance
Rules as to Ownership a. Each share shall still be in proportion to
OWNER OF OWNER OF the value of their thing (Santos v.
PRINCIPAL (OP) ACCESSORY (OA) Bernabe, 54 Phil. 19, 1929)
GOOD FAITH / GOOD FAITH 3. Mixed caused by owner in bad faith
BAD FAITH a. The actor forfeits his thing;
Acquires the May demand reparation: b. Liable for damages. (Paras, supra, p.
accessory If no injury will be caused 297)
- indemnifies the If value of accessory is
former owner for greater than principal - Specification - Imparting of a new form to the
its value even if damages will be material belonging to another; or the making of
caused to principal the material of another into a thing of a different
(expenses is to the one kind. (Art. 474)
who caused the
conjunction) When Maker is in Good Faith
GOOD FAITH BAD FAITH One who, in good faith, employs the material of
Owns the Loses the thing another in order to make a thing of a different kind
accessory incorporated shall appropriate the thing transformed as his
Right to damages Indemnify the OP for the own, indemnifying the owner of the material for its
damages OP may have value. (Art. 474)
suffered
BAD FAITH GOOD FAITH When the Material is of Greater Value Than the
Pay OA value of Right to choose between Transformed Thing
accessory or OP paying him its value The owner of the material may:
principal and or 1. Appropriate the new thing to himself, after
accessory be That the thing belonging paying indemnity for the value of the work; or
separated to him be separated even 2. Demand indemnity for the material. (Art. 474)
PLUS though it be necessary to
Liability for destroy the principal thing When the Maker is in Bad Faith
damages The owner of the material shall have the right to:
1. Appropriate the work to himself, without
Takes place when two or more things belonging paying anything to the maker; or
to different owners are mixed or combined to such 2. Demand of the latter that he indemnify him for
the value of the material and the damages he
may have suffered. (Art. 474)
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Note: The owner of the material cannot Quasi In Rem - suits against a particular person
appropriate the work in case its value, for artistic or persons in respect to the res; may not be
or scientific reasons, is considerably more than brought for the purpose of settling a boundary
that of the material. (Art. 474) disputes
Comparison of the 3 Types of Accession Applicable to real property or any interest therein.
ADJUNCTION MIXTURE SPECIFICATION The law, however, does not exclude personal
Involves at Involves at Involves at least 2 property from actions to quiet title.
least 2 things least 2 things
things Note: An action to quiet title is imprescriptible if
As a rule, As a rule, As a rule, brought by the person in possession of the
accessory co- accessory follows property. Otherwise, he must invoke his remedy
follows ownership principal within the prescriptive period. (Berico v. CA, GR
principal results NO. 96306, 1993)
The things May either The new object
joined retain retain or retains or Classifications
their nature lose preserves the 1. Remedial action – to remove cloud on title
respective nature of the 2. Preventive action – to prevent the casting of a
natures original object (threatened) cloud on the title. (Art. 476)
————- end of topic ————- I. REQUISITES
Requisites of Action to Quiet Title (TICR)

D. QUIETING OF TITLE
1. Plaintiff must have a legal or equitable Title or
interest in the real property (Art. 477)
Quieting of Title – remedy or proceeding which
2. Cloud in such title
has for its purpose an adjudication that a claim of
3. Such cloud must be due to some Instrument,
title to realty or an interest thereon, adverse to the
record, claim, encumbrance or proceeding
plaintiff, is invalid or inoperative, or otherwise
which is apparently valid but is in truth invalid,
defective and hence, the plaintiff and those
ineffective, voidable or unenforceable
claiming under him may forever be free of any
prejudicial to the plaintiff’s title (Art. 476)
hostile claim. (Baricuatro, Jr. vs CA, GR No.
4. Plaintiff must Return to the defendant all
105902, 2000)
benefits received from the latter or reimburse
him for expenses that may have redounded to
Reasons:
his benefit. (Art. 479)
1. Prevent litigation
2. Protect true title & possession
When Not Applicable
3. Real interest of both parties which requires
3. Questions involving interpretation of
that precise state of title be known. (Paras,
documents;
supra, p. 305)
4. Mere written or oral assertions of claims;
Exceptions:
Action to Quiet Title
(a) If made in a legal proceeding;
Puts an end to vexatious litigation in respect to
(b) If it is being asserted that the instrument
property involved; plaintiff asserts his own estate
of entry in plaintiff’s favor is not what it
and generally declares that defendant’s claim is
purports to be;
w/o foundation. (Baricuatro, Jr. v. CA, GR No.
3. Boundary disputes;
105902, 2000)
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4. Deeds by strangers to the title, unless invalid or which would be inequitable to enforce.
purporting to convey the property of the (Art. 476)
plaintiff;
5. Instruments invalid on their face; Existence of Cloud: (AIP)
6. Where the validity of the instrument involves 1. Instrument or record or claim or
pure questions of law. (Paras, supra, p. 315- encumbrance or proceeding which is
316) Apparently valid or effective;
2. But is, in truth and in fact, Invalid, ineffective,
II. DISTINCTIONS BETWEEN QUIETING TITLE voidable, or unenforceable, or extinguished
AND REMOVING/PREVENTING CLOUD (or terminated) or barred by extinctive
prescription
ACTION TO ACTION TO 3. May be Prejudicial to the title. (Paras, supra,
QUIET TITLE REMOVE CLOUD p. 302-303)
To end Procure
vexatious cancellation, III. PRESCRIPTION/NON-PRESCRIPTION OF
litigation in release of an ACTION
respect to the instrument,
property encumbrance or Rules:
Purpose
concerned claim in the 1. If plaintiff is in possession
plaintiff’s title- The action does not prescribe. While the
which affects the owner continues to be liable to an action,
title or enjoyment proceeding, or suit upon the adverse claim,
of the property he has a continuing right to be given aid by
Plaintiff asserts Plaintiff declares the court to ascertain and determine the
own claim and his own claim and nature of such claim and its effect on his title,
declares that the title, and at the or to assert any superior equity in his favor.
claim of the same time He may wait until his possession is disturbed
defendant is indicates the or his title is attacked before taking steps to
unfounded and source and nature vindicate his right.
calls on the of the defendant’s
Nature
defendant to claim, pointing its 2. If plaintiff is not in possession
justify his claim defects and prays The action may prescribe. Even if the action
on the property for the declaration is brought within the period of limitations, it
that the same of its invalidity may be barred by laches, where there is no
may be excuse offered for the failure to assert the title
determined by sooner. If somebody else has possession,
the court the period of prescription for the recovery of
land is either 10 or 30 years
Action to Remove Cloud
Intended to procure cancellation, delivery, General Rule: An action for reconveyance of a
release of an instrument, encumbrance, or claim parcel of land based on implied or constructive
constituting a on plaintiff’s title which may be used trust prescribes in 10 years, the point of reference
to injure or vex him in the enjoyment of his title being the date of registration of the deed or the
date of the issuance of the certificate of title over
Cloud – is a semblance of title, either legal or the property.
equitable, or a claim or a right in real property,
appearing in some legal form but which is, in fact, Exception: If plaintiff is in possession, the action
is imprescriptible.
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Right to alienate, assign or mortgage own part;

————- end of topic ————- except personal rights like right to use and
habitation
E. CO-OWNERSHIP
A co-owner cannot give valid consent to another
I. CHARACTERISTICS OF CO-OWNERSHIP to build a house on co-owned property as such an
act would be tantamount to making an alteration
Co-Ownership – a form of ownership, which in the thing owned in common. Entry into the land
exists whenever an undivided thing or right without the knowledge of the other co-owners can
belongs to different persons. (Art. 484) be categorized as possession by stealth and W’s
act of getting only the consent of one co-owner
Elements (PUI) can be considered as “strategy.” Thus, it would be
1. Plurality of subjects – many owners a case of forcible entry. (Cruz v. Catapang, GR
2. Object of ownership must be Undivided No. 164110, 2008)
3. Recognition of Ideal shares; no one is an
owner of a specific portion of the property b) Entire Property
until it is partitioned. Any co-owner may file an action under Article 487
not only against a third person but also against
another co-owner who takes exclusive
II. SOURCES OF CO-OWNERSHIP
possession and asserts exclusive ownership of
the property. (De Guia vs. CA, GR No. 120864,
How Created (C-FOLDS)
2003)
1. Law
2. Contracts
A co-owner can sell an undivided part of the
3. Succession
property co-owned but its validity is limited to his
4. Fortuitous event/chance (i.e., commixtion)
share. Hence, there is no need for consent of the
5. Occupancy (i.e.,2 persons catch a wild
other co-owners as to said sale. (Arambulo v.
animal)
Nolasco, GR No. 189420, 2014) Same rule
6. Donation
applies in a mortgage by a co-owner of his share.
(Rural Bank of Cabadbaran v. Nulecio-Yap, GR
Kinds of Co-ownership:
No. 178451, 2014)
1. Ordinary – right of partition exists
2. Compulsory– no right of partition exists
c) Redemption by Other Co-owners
(party wall)
Right of Redemption
3. Legal – created by law
Right to be adjudicated thing (subject to right of
4. Singular/Particular–over particular/ specific
others to be indemnified)
thing
Right to share in proceeds of sale of thing if thing
5. Incidental – exists independently of the will
is indivisible and they cannot agree that it be
of the parties
allotted to one of them
6. Universal – over universal things (co-heirs)
7. Contractual- created by contract
Note: To be exercised within 30 days from written
notice of sale of undivided share of another co-
III. RIGHTS OF CO-OWNERS
owner to a stranger.
1. Ownership Over Whole Property
Redemption of the whole property by a co-owner
2. Sale / Alienation
does not vest in him sole ownership over said
a) Individual Interest
property. Redemption within the period
prescribed by law by a co-owner will inure to the
benefit of all co-owners. Hence, it will not put an
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end to existing co-ownership. (Mariano v. CA, GR conjugal property, the wife must be expressly
No. L-51283, 1989) authorized by the husband or seek judicial
authority to assume powers of administration.
Co-owners have the right to alienate their pro Thus, any transaction entered by the wife without
indiviso shares even without the knowledge or the court or the husband’s authority is
consent of another co-owner as long as the unenforceable. Being an unenforceable contract,
alienation covers only their shares interests in the the 2nd Contract is susceptible to ratification. The
common property. Under the NCC, each co- husband continued remitting payments for the
owner “shall have the full ownership of his party satisfaction of the obligation under the questioned
and may therefore alienate it.” The effect, contract. These acts constitute ratification of the
however, of the alienation with respect to the co- contract. (Fabrigas v. San Francisco, GR No.
owners shall be limited only to the portion which 152346, 2005)
may be allotted to him in the division upon the
termination of the co-ownership. (Tabasondra v. 3. Benefits/ Fruits/ Interest/ Income
Constantino, GR No. 196403, 2016) a) Right to benefits proportional to respective
interest
A co-owner has no right to sell or alienate a b) Stipulation to contrary is void
concrete, specific or determinate part of the thing c) Right to full ownership of his part and fruits.
owned in common, because his right over the (Art. 493)
thing is represented by quota or ideal portion
without any physical adjudication. (Cabrera v. 4. Use/ Possession
Ysaac G.R. No. 166790, 2014) a) Right to use thing co-owned
b) For purpose for which it is intended
d) Prescription c) Without prejudice to interest of ownership
d) Without preventing other co-owners from
General Rule: A co-owner cannot acquire the making use thereof. (Art. 486)
whole property as against the other co-owners by
acquisitive prescription. (Art. 494) 5. Management/Administration
a) Right to change purpose of co-ownership by
Exception: When there is valid repudiation – agreement. (Art. 486)
prescription shall start from such repudiation. b) Right to bring action in ejectment in behalf of
(Paras, supra, p. 365) other co-owner. (Art. 487)
c) Right to compel co-owners to contribute to
Exception to the Exception: In constructive necessary expenses for preservation of thing
trusts, prescription does not run. (Jacinto v. and taxes. (Art. 488)
Jacinto,L-17955, L-17957, 1962) (Paras, supra, d) Right to exempt himself from obligation of
p. 366) paying necessary expenses and taxes by
renouncing his share in the pro indiviso
A co-owner cannot sell the property without the interest; but can’t be made if prejudicial to co-
other co-owners’ consent; otherwise, the selling ownership. (Art. 488)
co-owner’s share shall be the only one valid. e) Right to make repairs for preservation of
(Paulmitan v. CA, GR No. 61584, 1992) things; can be made at will of one co-owner;
receive reimbursement therefrom; notice of
While the husband is the recognized necessity of such repairs must be given to co-
administrator of the conjugal property under the owners, if practicable. (Art. 489)
Civil Code, there are instances when the wife may f) Right to ask for partition anytime. (Art. 494)
assume administrative powers or ask for the g) Right of pre-emption
separation of property. Where the husband is
absent and incapable of administering the
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IV. TERMINATION OF CO-OWNERSHIP 3. Pay useful and luxurious expenses – if

determined by majority
PARTITION 4. Duty to obtain consent of all if thing is to be
General Rule: Demandable Anytime altered even if beneficial; resort to court if
non-consent is manifestly prejudicial. (Art.
No co-owner shall be obliged to remain in the co- 491)
ownership. Each co-owner may at any time 5. Duty to obtain consent of majority with regard
demand the partition of the thing owned in to administration and better enjoyment of the
common, insofar as his share is concerned. (Art. thing; majority means majority in the interest
494) not in the number of co-owners; court
intervention if prejudicial – appointment of
Exception: A co-owner may not successfully administrator. (Art. 492)
demand a partition: (UNLAD) 6. No prescription to run in favor co-owner as
1. If by Agreement (for a period not exceeding long as he recognizes the co-ownership; (Art.
10 years, renewable) partition is prohibited. 494)
(Art. 494)
2. When partition is prohibited by a Donor or Note: For acquisitive prescription to run in
testator (for a period not exceeding 20 years) favor of a co-owner, the requisites are:
– from whom the property came. (Art. 494) a) He must have repudiated the co-
3. When partition is prohibited by Law. (Art. ownership through unequivocal acts;
494) b) Such act of repudiation is made known to
4. When a physical partition would render the other co-owners
property Unserviceable, but in this case, the c) Evidence must be clear and convincing
property may be allotted to one of the co- 7. Co-owners cannot ask for physical division if
owners, who shall indemnify the others, or it it would render thing unserviceable; but can
will be sold, and the proceeds distributed. terminate co-ownership. (Art. 495)
(Art. 495) 8. After partition, duty to render mutual
5. When the legal Nature of the common accounting of benefits and reimbursements
property does not allow partition for expenses. (Art. 500)
9. Each co-owner has full ownership of his part
Requisites of Repudiation: (UKEO) and of the fruits and benefits pertaining
1. Unequivocal acts of repudiation of the co- thereto, and he may alienate, assign or
ownership amounting to an ouster of the mortgage the portion which may be allotted to
other co-owners him upon the termination of the co-
2. Positive acts of repudiation have been made ownership. It appears that while there is a
Known single certificate of title, the three lots are
3. Evidence is clear and conclusive distinguishable from each other. (Art. 493)
4. Open, continuous, exclusive, notorious
possession. Rights of Third Parties
(Santos v. Heirs of Crisostomo, 41 Phil. 342, 1. Creditors of assignees may take part in
1921) division and object if being effected without
their concurrence, but cannot impugn unless
Obligations of Co-Owners there is fraud or made notwithstanding their
1. Share in charges proportional to respective formal opposition. (Art. 497)
interest; stipulation to contrary is void. (Art. 2. Non-intervenors – retain rights of mortgage
485) and servitude and other real rights and
2. Pay necessary expenses and taxes – may be personal rights belonging to them before
exercised by only one co-owner. (Art. 490) partition was made. (Art. 499)
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CONDOMINIUM ACT (RA No. 4726) are opposed to the continuation of the
Condominium – an interest in real property condominium regime.
consisting of a separate interest in a unit in a 5. When conditions for partition by sale set forth
residential, commercial or industrial building and in the declaration of restrictions duly
an undivided interest in common, directly or registered have been met.
indirectly, in the land on which it is located and in
other common areas of the building. ————- end of topic ————-
Any transfer or conveyance of a unit or an F. POSSESSION

apartment office or store or other space therein
shall include the transfer and conveyance of the I. CHARACTERISTICS
undivided interest in the common areas or in a
proper case, the membership or shareholdings in Possession – is the holding of a thing or
the condominium: provided however, that where enjoyment of a right (Art. 523)
the common areas in the condominium project
are held by the owners of separate units as co- Viewpoints of Possession
owners thereof, no condominium unit therein 1. Right TO possession (jus possidendi)
shall be conveyed or transferred to persons other Possession de facto - right or incident of
than Filipino citizens or corporations at least 60% ownership
of the capital stock of which belong to Filipino 2. Right OF possession (jus possessionis)
citizens, except in cases of hereditary Possession de jure – this is an independent
succession. right of itself, independent of ownership
General Rule: Common areas shall remain Elements of Possession (OIR)

undivided, and there shall be no judicial partition 1. Occupancy or control of the thing or right –
thereof actual or constructive (corpus)
2. Intent to Possess (animus possidendi)
Exceptions: 3. Must be by virtue of one’s own Right
1. When the project has not been rebuilt or
repaired substantially to its state prior to its Extent of Possession:
damage or destruction 3 years after damage 1. Physical/actual – occupancy in fact of the
or destruction which rendered a material part whole or at least substantially the whole
thereof unfit for use; 2. Constructive – occupancy in part in the name
2. When damage or destruction has rendered ½ of the whole under such circumstances that
or more of the units untenable and that the the law extends the occupancy to the
condominium owners holding more than 30% possession of the whole
interest in the common areas are opposed to
restoration of the projects; General Rule: Subject of possession are
3. When the project has been in existence for things or rights which are susceptible of being
more than 50 years, and the condominium appropriated (Art.530)
owners holding in aggregate more than 50%
interest in the common areas are opposed to Exceptions:
restoration, remodeling or modernizing; 1. Res communes
4. When a project or a material part thereof has 2. Property of public dominion
been condemned or expropriated and the 3. Discontinuous servitudes
project is no longer viable or that the 4. Non-apparent servitudes
condominium owners holding in aggregate 5. Things specifically prohibited by law
more than 70% interest in the common areas
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Degrees of Possession owner (e.g. usufruct, lessee, depositary,

1. Possession without title and in violation of bailee in commodatum)
right of owner (grammatical degree) 3. Possession In one’s own name – personal
Ex. possession of a thief acquisition
2. Possession with juridical title (juridical 4. Possession in the name of another – agent;
possession); juridical relation exist between subject to authority and ratification if not
the possessor and the owner authorized; negotiorum gestio
Ex. that of a lessee, pledge, depositary, a. Voluntary – as when an agent
usufructuary possesses for the principal (by virtue
3. Possession with just title but not from true of agreement)
owner, such that of a possessor in good faith b. Necessary – as when a mother
(possessory right) possesses for a child still in the
Ex .When a buyer acquires a thing from the maternal womb
seller who was not the true owner or could not c. Unauthorized – this will become the
transmit rights. principal’s possession only after
4. Possession with title in fee simple there has been a ratification without
- This is the highest degree of possession. prejudice to the effects of negotiorum
gestio
Acquisition of Possession from the Viewpoint 5. Possession in good faith – not aware of any
of Possessor flaw or defect in his title or mode of acquisition
1. Personal 6. Possession in bad faith – aware that there
a. Intent to possess exists in his title or mode of acquisition some
b. Capacity to possess flaw or defect
c. Object must be capable of being
possessed Effects of Possession in the Concept of
2. Through authorized person (agent or legal Owner
representative) 1. May be converted into ownership through
a. Intent to possess for principal (not for acquisitive prescription
agent) - Movables: 4 or 8 years
b. Authority or capacity to possess (for - Immovables:10 or 30 years
another) o Imprescriptible when there is
c. Principal has intent and capacity to Torrens certificate title over land
possess 2. Bring actions necessary to protect
3. Through Unauthorized person (but only if possession;
subsequently ratified) 3. Ask for inscription of possession;
a. Intent to possess for another (the 4. Demand fruits and damages from one
principal) unlawfully detaining property.
b. Capacity of “principal” to possess
c. Ratification by principal Note: Possessor in the concept of owner has in
his favor the legal presumption that he possesses
REQUIREMENTS – TO RIPEN INTO with just title. Burden of proving just title is on the
OWNERSHIP plaintiff who seeks the recovery of property. (Art.
541)
KINDS OF POSSESSION
1. Possession in the concept of an owner Requisites for Personal Acquisition
(Adverse Possession) – possession by the 1. Must have capacity to acquire possession;
owner himself or adverse possessor 2. Intent to possess;
2. Possession in the concept of holder – 3. Possibility to acquire possession.
possessor acknowledges that another is an
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Possession and ownership are distinct legal II. ACQUISITION OF POSSESSION

concepts. Ownership confers certain rights to
the owner, among which are the rights to enjoy Ways of Acquiring Possession
the thing owned and to exclude other persons Possession is acquired in any of the following
from possession thereof. On the other hand, ways:
possession is defined as the holding of a 1. By the material occupation of the thing or the
thing or the enjoyment of a right. Literally, to exercise of a right;
possess means to actually and physically occupy 2. By the fact that the property is subject to the
a thing with or without a right. Thus, a person action of one’s will; and
may be declared an owner but he may not be 3. By the proper acts and legal formalities
entitled to possession. (Heirs of Roman Soriano established for acquiring the right. (Republic
v. CA, GR No. 128177, 2001) v. Ng, G.R. No. 182449, 2013)
Good faith and Bad Faith Ways of Acquiring Possession

Possessor in Good Faith is one who is not 1. Material occupation or exercise of a right
aware that there exists a flaw in the title or mode a. Traditio Brevi Manu – when one already
which invalidates it. (Art. 526) in possession of a thing by a title other
than ownership continues to possess the
Possessor in Bad Faith is one who is aware of same under a new title, that of ownership
defect. (Art. 526) b. Constitutum Possessorium—when the
owner continues in possession of the
When Bad Faith Begins property alienated not as owner but in
A possessor in good faith may become possessor some other capacity.
in bad faith when he becomes aware of the flaw
in his title or mode of acquisition. 2. By the subjection of the thing or right to our
will
Example: When he is served with judicial a. Traditio Longa Manu – effected by mere
summons, even before such time as when a letter consent or agreement of the parties
is received from the true owner asking the b. Traditio Simbolica – effected by
possessor to stop delivering an object (e.g. key)
symbolizing the placing of one thing
On Good Faith/Bad Faith: under the control of the vendee
Mistake upon a doubtful/difficult question of law
may be the basis of good faith (Art. 526; Kasilag 3. By constructive possession or proper acts
v. Rodriguez, GR No. 46623, 1939) and legal formalities established for acquiring
such right of possession (succession,
Good faith is always presumed. Burden of proof donation, execution of public instruments)
lies on the one alleging bad faith. The belief must (Paras, supra)
be a reasonable, not capricious, one.
Possession through Succession
Possession is presumed to be enjoyed in the Possession of hereditary property:
same character in which it is acquired, until 1. If accepted – deemed transmitted without
contrary is proven. (Art. 527) interruption from moment of death
2. If not accepted (if heir refuses or is
While the possessor in good faith is the one who incapacitated to inherit) – deemed never to
believes he is the owner, the possessor in the have possessed the same. (Art. 533)
concept on owner is one who acts as if he is the
owner. Effects of bad faith of decedent on heir
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General Rule: Heir shall not suffer the the delivery is not effected because of a legal
consequences of the wrongful possession of the impediment. Said construction or symbolic
decedent (bad faith is personal) delivery, being merely presumptive, may be
negated by the failure of the vendee to take actual
Exception: When he becomes aware of the flaws possession of the land sold. (Copuyoc v. De Sola,
affecting the decedent’s title GR No. 151322, 2006)
Note: It doesn’t matter whether the “facts” which III. EFFECTS OF POSSESSION
show that the possessor is not unaware that he
possesses thing properly/improperly is caused by RIGHTS OF LEGAL POSSESSOR
him or by some other person Right to be respected in his possession; if
disturbed, he shall be protected or restored by
Interruption of good faith may take place at: means established by laws.
1. The date of summons; or
2. That of the answer if the date of summons Legal presumption in favor of possessor:
does not appear. 1. Possessor who recovers possession unjustly
lost shall be deemed to have enjoyed it
Effects of possession in good faith is counted only without interruption. (Art. 561) This is
from the date of the decedent’s death (Art. 534) important for purposes of acquisitive
prescription.
Minors/Incapacitated: 2. Legal presumption of just title (prima facie)
1. May acquire material possession but not and he is not obliged to show or prove it (Art.
right to possession; 541)
2. May only acquire them through guardian or 3. Possession of real property presumes that
legal representatives (Art. 535) movables are included (Art. 542)
4. Co-possessor deemed to have exclusively
Acquisition – cannot be acquired through force possessed part which may be allotted to him;
or intimidation. A possessor who objects must interruption in whole or in part shall be to the
resort to the courts. prejudice of all (Art. 543)
Possession Cannot Be: Fruits

1. Acquired through force or intimidation as long For Possessors in Good Faith:
as there is a possessor who objects thereto; Entitled to fruits received before possession is
(Art. 536) legally interrupted (natural and industrial –
2. Affected by acts merely tolerated; or gathered or severed; civil – accrue daily)
3. Clandestine and unknown acts; or (Art.544)
4. Acts of violence (Art. 537)
For Possessors in Bad Faith
Tolerated Acts – acts of little disturbances which If at the time good faith ceases, there are natural
a person, in interest of neighborliness or friendly or industrial fruits:
relations, permits others to do on his property, 1. Entitled to part of net harvest and part of
such as passing over the land, tying a horse, or expenses of cultivation (proportionate to time
getting some water from a well. (Department of of possession)
Education v. Casibang, GR No. 192268, 2016) 2. Owner has option to require possessor to
finish cultivation and gathering of fruits and
give net proceeds as indemnity for his part of
The execution of a deed of sale is merely a prima expenses; If possessor in good faith refuses
facie presumption of delivery of possession of a
piece of real property, which is destroyed when
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– barred from indemnification in other manner

(Art. 545) Requisites:
1. Good faith
Indemnity for Expenses/ Improvements 2. Owner voluntarily parted with the possession
For Possessors in Good Faith: of the thing
1. Right to be reimbursed for useful expenses 3. In the concept of owner
with right of retention; owner has option of
paying expenses or paying the increase in Possession as a Fact
value of property which thing acquired by Possession as a fact cannot be recognized at the
reason of useful expenses same time in two different personalities (Art. 538)
2. May remove improvements if can be done
w/o damage to principal thing - unless owner Exceptions:
exercises option of paying; possessor in bad 1. Co-possessor – there is no conflict of interest,
faith not entitled. (Art. 546 & 547) both of them acting as co-owners, as in the
case of property owned or possessed in
Regardless of Good Faith/Bad Faith: common
1. Right to be indemnified for necessary 2. Possession of different concepts or different
expenses. degrees
2. Possessor in good faith has right of retention
over thing unless necessary expenses paid Rules In Case of Conflict or Dispute
by owner Regarding Possession
3. Not entitled to payment for luxurious expense 1. Present possessor shall be preferred
but may remove them provided principal is 2. If there are 2 possessors, the one longer in
not injured – provided owner does not refund possession
the amount expended (Art. 549) 3. If the dates of possession are the same, the
4. Improvements caused by nature or time to one who has title;
inure to the benefit of person who has 4. If both present a title, the Court will
succeeded in recovering possession. (Art. determine. (Meantime, the thing shall be
551) judicially deposited.) (Art. 538)
5. One who recovers, according to law,
possession unjustly lost is deemed to have A Notice of Lis Pendens Is Proper In The
enjoyed it w/o interruption. (Art. 561) Following Cases: (PORC-Q)
1. Action to Recover possession of real estate
Liabilities/ Duties of Possessors 2. Action to Quiet title thereto
1. Return of fruits if in bad faith – fruits legitimate 3. Action to remove Clouds thereon
possessor could have received 4. Action for Partition
2. Bear cost of litigation (Art. 550) 5. Any Other proceedings of any kind in Court
directly affecting the title to the land or the use
Possessor in good faith not liable for loss or or occupation thereof of the buildings thereon
deterioration or loss except when fraud and
negligence intervened (Art. 552) IV. LOSS OR UNLAWFUL DEPRIVATION OF
A MOVABLE
Possessor in bad faith liable for loss or
deterioration even if caused by fortuitous event Possession of Movable
(Art. 552)
Possession in Good Faith – Equivalent to Title
Person who recovers possession not obliged to One who has lost or has been unlawfully deprived
pay for improvements, which have ceased to of it may recover the thing from whomever
exist at the time of occupation (Art. 553)
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possesses it, ordinarily, w/o reimbursement. (Art. d) if sale is sanctioned by

559) statutory or judicial
authority
Owner must prove:
1. Ownership of the thing e) if possessor obtained
2. Loss or unlawful deprivation or bad faith of the goods because he
the possessor was an innocent
Note: If owner acts negligently or voluntarily parts purchaser for value and
with the thing owned, then he cannot recover from holder of a negotiable
possessor. document of title to the
goods
Summary of Recovery or Non-Recovery
Principle Rules on Animals
Owner may a) Possessor in bad faith 1. Wild Animals – possessor is the one who
recover without b) Possessor in good faith has control
reimbursement (if owner had lost the 2. Domesticated and Tamed Animals – the
property or been possessor does not lose possession as long
unlawfully deprived of it) as habitually they return to the possessor’s
the acquisition being premises (Art. 560)
from a private person
(Art. 559) Note: For ownership, the owner must claim them
Owner may If possessor acquired the within 20 days from their occupation by another
recover but object in good faith at a person
must reimburse public sale or auction; owner
the possessor to pay the price paid. LOSS OF POSSESSION
Owner cannot If possessor acquired it in
recover, even if good faith by purchase from Loss of Possession (PALA)
he offers to a merchant’s store/ fairs/ A possessor may lose his possession by:
reimburse markets in accordance with 1. Abandonment of the thing
(whether or not Code of Commerce & - renunciation of right; intent to lose the
the owner had Special laws thing; no expectation to recover
lost or been a) if owner is by his 2. Assignment made to another by onerous or
unlawfully conduct precluded from gratuitous title
deprived) denying the seller’s - complete transmission of ownership
authority to sell rights; both possession de facto and de
jure are lost
b) if seller has voidable title 3. Destruction or total Loss of the thing or thing
which has not been went out of commerce
avoided at the time of 4. Possession of another if new possession
sale to the buyer in good lasted longer than 1 year (possession as a
faith for value and fact); real right of possession not lost except
without notice of the after 10 years (Art. 555)
sellers defect in title
Possession Not Lost When:
c) if recovery is no longer 1. The movable property remain under the
possible because of control of the possessor, even for time being
prescription he may not know their whereabouts (Art. 556)
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2. When agent encumbered immovable Note: This is the possession that may ripen into
property without express authority – except ownership. This is also referred to as adverse
when ratified (Art. 557) possession.
Possession may still be recovered: Examples of Adverse Possession

1. Unlawfully deprived or lost (Art. 559) 1. The construction of permanent buildings
2. Acquired at public sale in good faith – with 2. Collection of rentals
reimbursement (Art. 559) 3. Harvesting of the fruits or fruit-bearing trees
3. Provision of law enabling the apparent owner 4. The religious payment of taxes on property
to dispose as if he is owner
4. Sale under order of the court Concept of Holder
5. Purchases made at merchant stores, fairs, or The holder of the thing or right to keep or enjoy it,
markets but the ownership pertains to another person (Art.
6. Negotiable document of title 525).
Possession Equivalent to Title: Examples of Possession in the Concept of

1. Possession is in good faith; (Art. 559) Holder
2. Owner has voluntarily parted with the 1. That of the tenant
possession of the thing - Possessor is in 2. That of the usufructuary
concept of an owner 3. That of the depositary
4. That of the bailee in commodatum
V. POSSESSION IN CONCEPT OF OWNER,
HOLDER, IN ONE’S OWN NAME, AND IN
NAME OF ANOTHER
Names Under Which Possession May be

Exercised
1. In one’s own name
2. In the name of another (Art. 524)
Possession in Another’s Name

1. Voluntary – by virtue of an agreement (e.g.
when an agent possesses for the principal)
2. Necessary – (e.g. when a mother possesses
for a child still in the maternal womb)
3. Unauthorized – this will become the
principal’s possession only after there has
been a ratification without prejudice to the
effects of negotiorum gestio.
Concept of an Owner
A possessor in the concept of an owner is one
who, whether in good faith or bad faith, claims to
be and acts as if he is the owner. He thus
recognizes no title of ownership in another with
respect to the property involved.
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VI. RIGHTS OF THE POSSESSOR
Summary of Rules on Necessary/Useful/ Luxurious Possession & Possession by Lessee:

BASIS GOOD FAITH BAD FAITH
1. Right to reimbursement Right to reimbursement
Necessary
2. Right of retention pending full - no right of retention: must vacate
Expenses
reimbursement property – recourse to courts
1. Right to reimbursement of amount spent
or increase in value – “plus value” – at
owner’s option (Art. 546)
2. Right of retention until paid
Useful expenses 3. Right of removal (provided no
substantial damage or injury is caused to No right to reimbursement
the principal, reducing its value) – UNLESS
the winner (owner or lawful possessor)
exercises the option in (1)
In general, no right of refund or retention
In general, no right to refund or retention but can remove if no substantial injury is
but can remove if no substantial injury is caused. However, owner has OPTION to
caused. However, owner has OPTION to allow:
Luxurious or allow: Possessor to remove if principal suffers
Ornamental Possessor to remove if principal suffers no no injury
Expenses injury Or retain for himself (the owner) the
Or retain for himself (the owner) the ornament by refunding the value it has at
ornament by refunding the amount spent the time owner enters into possession,
(Art. 548) which means depreciated value (Art.
549)
1. On capital → charged to owner 1. On capital → charged to owner
Taxes and
2. On fruits → charged to possessor 2. On fruits → charged to owner
Charges
3. Charges → prorated 3. Charges → to owner
Possessor must return value of fruits
already received as well as value of fruits
which the owner or legitimate possessor
(not the possessor in BF)
To possessor
Regarding could have received with due care or
gathered or diligence, MINUS necessary expenses
severed fruits for cultivation, gathering, and harvesting,
to prevent the owner from being unjustly
enriched
Cultivation expenses of gathered fruits –
Reimbursed to possessor
not reimbursed to possessor
Pro-rating between possessor and owner
To owner
of expenses, net harvest, and charges
Regarding
pending or Production expenses of pending fruits –
ungathered indemnity pro rata to possessor: (owner’s
No indemnity
fruits option) money allowing full cultivation and
gathering of all fruits; if possessor refused,
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he shall lose all the right to be indemnified

in any other manner.
Improvements
no longer No reimbursement No reimbursement
existing
Liability for
Only if acting w/ fraudulent intent or Liable in every case, even fortuitous
accidental loss
negligence, after summons event (whether before or after service)
or deterioration
Improvements
due to time or To owner or lawful possessor To owner or lawful possessor
nature
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VII. LOSS OR TERMINATION OF

POSSESSION Assignment v. Abandonment
Assignment Abandonment
Modes of Loss or Termination of Possession At no time did the There was a time, no
(Art. 555) thing have a matter how short,
Cause Mode possessor when the object did
Through the 1. Abandonment not have a possessor
Possessor’s 2. Possession of at all.
Voluntary Will and another for more than
Intent 1 year. Possession of Another
Against the 1. Possession of 1. If a person is not in possession for more than
Possessor’s Will another for more than a year but less than 10 years, he losses
1 year. possession de fact.
2. Final judgment in - In such a case he can no longer bring
favor of another with a a action of forcible entry or unlawful
better right detainer.
3. Expropriation - Constructive possession is also lost.
4. Prescription in 2. If a person loses possession for more than 10
favor of another years, he loses possession de jure, or the
5. Recovery or real right of possession
reivindication by the - An accion publiciana or
legitimate owner or revindicatoria is still possible unless
possessor prescription has set in.
Due to the Object 1. Destruction or total
loss of the thing Destruction, Total Loss and Withdrawal from
2. Going out of Commerce
commerce A thing is lost when it perishes, goes out of
3. Escaping from commerce, or disappears in such a way that its
possessor’s control existence is unknown, or it cannot be recovered.
However, in cases of partial loss, in general,
Abandonment results only in the loss of possession of the part
The voluntary renunciation of a thing lost.
Requisites of Abandonment Possession of Stolen Property

1. The abandoner must have been a possessor It is a disputable presumption that a person found
in the concept of owner; in possession of a thing taken in doing of a recent
2. The abandoner must have the capacity to wrongful act is the taker and doer of the whole
renounce or alienate; act. The one who possesses a movable, acquired
3. There must be a physical relinquishment of in good faith, has what is called an equivalent of
the thing/object; title, but this is destroyed when it is proven that
4. There must be no more spes recuperandi the said movable belongs to somebody else who
(expectation to recover) and no more animus has lost it, or has been unlawfully deprived of its
revertendi (intent to return or to get back) possession.
Assignment ————- end of topic ————-

The complete transmission of ownership rights to
another person, onerously or gratuitously
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G. USUFRUCT Usufruct Distinguished from Easement

(Paras, supra, p. 574)
I. CHARACTERISTICS USUFRUCT EASEMENT
Usufruct – is the right to enjoy temporarily the Object May be real or Involves only
property of another with the obligation of personal real property
preserving its form and substance, unless the title property. Can
constituting it or the law otherwise provides (Art. also be on rights,
562) but not personal
rights
Note: The right of the usufructuary includes the Extent What can be Limited to a
right to use (jus utendi) and the right to fruits (jus enjoyed here are particular
fruendi), while the owner retains the right to all uses and fruits use
alienate or encumber (jus disponendi) the of the property
property. Coverage Cannot be May be
constituted on an constituted in
Characteristics or Elements of Usufruct easement; but it favor or, or
1. Essential – those without which it cannot be may be burdening, a
termed usufruct constituted on piece of land
a. A real right, whether registered in the the land held in
Registry of Property or not; burdened by an usufruct
b. Of a temporary nature or duration easement
c. Purpose: to enjoy the benefits and derive Effect of Usually Not
all advantages from the object as a death extinguished by extinguished
consequence of normal use or death of by the death
exploitation usufructuary of the owner
of the
2. Natural – that which ordinarily is present, but dominant
a contrary stipulation can eliminate it because estate
it is not essential
a. Obligation of conserving or preserving Similarities between Usufruct and Easement
the form and substance (value) of the 1. Both are real rights
thing 2. Both rights may be registered, provided that
usufruct involves real property
3. Accidental – those which may be present or 3. Both may ordinarily be alienated or
absent depending upon the stipulation of the transmitted in accordance with formalities set
parties by law (Paras, supra, p. 575)
a. Whether it be a pure or a conditional
usufruct
b. The number of years it will exist
c. Whether it is in favor of one person or
several, etc. (Paras, supra, p. 572)
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Usufruct Distinguished from Lease (Paras, supra, p. 575)
USUFRUCT LEASE
Generally covers only a particular or
Extent Covers all fruits and uses as a rule
specific use
A real right only if, as in the case of a
lease over real property, the lease is
Nature Always a real right
registered, or is for more than 1 year,
otherwise, it is only a personal right
Can be created only by the owner, or The lessor may or may not be the
Creator by a duly authorized agent, acting in owner as when there is a sub-lease or
behalf of the owner when the lessor is only a usufructuary
May be created as a rule only by
contract; and by way of exception by
law (as in the case of an implied new
May be created by law, contract, last
Origin lease, or when a builder has built in
will, or prescription
good faith on the land of another a
building, when the land is considerably
worth more in value than the building
The owner is more or less passive, The owner or lessor is more or less
Cause and he allows the usufructuary to active, and he makes the lessee enjoy
enjoy the thing given in usufruct the thing being leased
The usufructuary has the duty to The lessee generally has no duty to pay
Repairs
make the ordinary repairs for repairs
The usufructuary pays for the annual

Taxes The lessee generally pays no taxes
charges and taxes on the fruits
A usufructuary may lease the The lessee cannot constitute a usufruct

As to other things
property itself to another on the property leased
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APPLICATION TO PERSONAL AND REAL

PROPERTIES Kinds as to the Number of Persons Enjoying
the Right
Some Rules Regarding Usufruct: 5. Simple – if only one usufructuary enjoys the
1. Usufruct can be constituted even if the object right
is subject to Mortgage 6. Multiple – if several usufructuaries enjoy the
2. Usufruct cannot be constituted on an object right
subject to Pledge a. Simultaneous – at the same time
3. Usufruct can be constituted on an object b. .Successive – one after the other
subjected previously to a Lease
4. Usufructuary can lease out the property to Note: In this case, if the usufruct is created by
other parties donation, all the donees must be alive, or at least
5. Usufructuary can construct improvements already conceived, at the time of the perfection of
over property subject to usufruct the donation.
How to Constitute Usufruct Kinds as to the Quality or Kind of Objects

1. Legal Usufruct – but is not evident in today’s involved
laws 1. Usufruct over rights
2. Will of parties (act inter vivos or last will) a. Rights must not be personal or
3. By Prescription (Art. 563) intransmissible in character, so present
or future support cannot be an object of
II. CLASSIFICATION usufruct
Kinds as to Origin 2. Usufruct over things
1. Legal – created by law such as usufruct of a. Normal (or perfect or regular) – this
parents over the properties of their involves non-consumable things where
unemancipated children the form and substance are preserved
2. Voluntary or conventional b. Abnormal (or imperfect or irregular) –
a. Created by will of the parties either involves consumable things
by act inter vivos as in contract or
donation; or Kinds as to Terms or Conditions
b. Act mortis causa as in a last will and 1. Pure usufruct – no term or condition
testament 2. With a term or period
3. Mixed – created by law and by will of the a. Ex die – from a certain day
parties b. In diem – up to a certain day
4. Prescriptive – is one acquired by a third c. Ex die in diem – from a certain day up to
person through continuous use of the a certain day
usufruct for the period required by law (Art. 3. With a condition
563).
III. RIGHTS AND OBLIGATIONS OF
Kinds as to Quantity or Extent USUFRUCTUARY
1. As to fruits
a. Total a. Rights Of The Usufructuary
b. Partial
2. As to object As to the property and its fruits
a. Universal – if over the entire 1. To receive all the natural, industrial and civil
patrimony fruits of the property.
b. Particular/Singular - if only individual a. Fruits growing at the beginning of the
things are included usufruct belong to the usufructuary.
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4. To bring an action for recovery of the

Note: No necessity of refunding the owner for property, and to oblige the owner to authorize
expenses incurred but without prejudice to the him for the purpose and to provide him the
right of 3rd persons. (Ex. if the fruits had been necessary proofs (Art. 578).
planted by a possessor in good faith, the pending 5. To make useful improvements or expenses
crop expenses and charges shall be pro-rated for pleasure without right of compensation
between said possessor and the usufructuary) and to remove the improvements provided
no damage is caused to the property in
b. Fruits growing at the end of usufruct usufruct.
belong to the owner. 6. To set-off the improvements against any
damage the usufructuary may have caused
Note: The owner must reimburse the to the property.
usufructuary for ordinary cultivation expenses
and for seeds and similar expenses, from the As to the usufruct itself
proceeds of the fruits. 1. To alienate the right of usufruct subject to its
period (Art. 572).
Rights of innocent third parties should not be
prejudiced (Arts. 566-569) Right to transfer usufructuary rights –
gratuitous or onerous; but is coterminous with
c. Civil fruits accruing daily belong to the term of usufruct; but cannot do acts of
usufructuary in proportion to the time the ownership such as alienation or conveyance
usufruct may last (Art. 559). Both stock except when property is:
dividends and cash dividends are a. Consumable
considered civil fruits. b. Intended for sale
c. Appraised when delivered; if not
2. To enjoy any increase which the thing in appraised and consumable – return
usufruct may acquire through accession and same quality (mutuum)
servitudes established in its favor (Art. 571)
3. To enjoy personally the thing in usufruct or to 2. To exercise the right of a co-owner with
lease it to another, subject to the period of the respect to the administration and collection of
usufruct fruits from the co-owned property, and after
the partition from his share.
General Rule: The lease expires at the end of the
usufruct or earlier As to advances and damages
1. To be reimbursed for advances for
Exception: In the case of leases of rural lands extraordinary repairs and expenses on the
which continues for the remainder of the property, and for taxes on the capital
agricultural year; 2. To retain the property until he reimbursed for
such advances
If the usufruct should expire before the 3. To be respected in his usufruct in case of
termination of the lease, he or his heirs and alienation of the property by the owner, and
successors shall receive only the proportionate to be indemnified for damages caused to it by
share of the rent that must be paid by the lessees. latter.
(Art 568) If the naked owner allows the lease to
continue even after the expiration of the usufruct, Other Rights of the Usufructuary
he will be entitled to the rentals pertaining to such 1. Right to hidden treasure as stranger (not
extension. entitled as owner but as finder; if somebody
else is the finder, usufructuary gets nothing)
(Art. 566)
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2. Right not exempt from execution and can be obliged to return in that state; except when
sold at public auction by owner there is fraud or negligence, then he shall be
3. Naked owner still have rights but w/o liable (Art. 573)
prejudice to usufructuary; may still exercise
act of ownership – bring action to preserve Before the Usufruct Begins
ownership 1. To make an inventory of the property and to
4. Right to necessary expenses from cultivation give security for the fulfillment of his
at end of usufruct obligation (Art. 583), but may be excused
5. Right to make use of dead trunks of fruit when no one will be injured thereby (Art.
bearing trees and shrubs or those 585).
uprooted/cut by accident but obliged to plant
anew Note: Not applicable to parents who are
6. Right of usufructuary of woodland – ordinary usufructuary of children except when 2nd
cutting as owner does habitually or custom of marriage contracted.
place; cannot cut down trees unless it is for
the restoration of improvement of things in Caucion Juratoria – promise under oath to
usufruct – must notify owner first deliver:
7. Right to leave dead, uprooted trees at the 1. Furniture necessary for the use of the
disposal of owner with right to demand that usufructuary
owner should clear and remove them – if 2. House included in the usufruct
caused by calamity or extraordinary event – 3. Implements, tools and other movable
impossible or too burdensome to replace property necessary for an industry or
them vocation for which he is engaged (Art. 587)
8. Right to oblige owner to give authority and
furnish him proofs if usufruct is extended to Excused – allowed by owner, not required by law
recover real property or real right or any or no one will be injured, when the usufructuary is
movable property the donor of the property or when there is a
9. Right to demand the increase in value of stipulation in a will or contract
property if owner did not spend for
extraordinary repairs; when urgent and In case the naked owner refuses to make the
necessary for preservation of thing (Arts. exemption, appeal may be made to the courts
570-582) and the judge should consider all the
circumstances in deciding whether or not to give
When a usufructuary introduces useful the grant.
improvements which he can remove without
damage but the owner wants to retain them and For Failure to Give Security
offers to reimburse him, the usufructuary prevails. Owner may demand that:
Reason: The right of removal is granted to him by 1. Immovables be placed under administration;
the law. The rule is different from that in Art 546 2. Negotiable instruments can be converted into
and 548 registered certificates or deposited in bank;
3. Capital and proceeds of sale of movables be
b. Obligations of the Usufructuary invested in safe securities;
4. Interest on proceeds or property under
1. Pay expenses to 3rd persons for cultivation administration belong to usufructuary;
and production at beginning of usufruct; 5. Owner may retain property as administrator
those who have right to fruits should with an obligation to deliver fruits to
reimburse expenses incurred (Art. 567) usufructuary until he gives sufficient security;
2. Generally, usufructuary has no liability when 6. Effect of security is retroactive to day he is
due to wear and tear, thing deteriorates, entitled to fruits.
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IV. RIGHTS OF THE OWNER

Note: Unless exempted by owner.
Rights of the Naked Owner
During the Usufruct 1. Alienate thing (Art. 581)
1. To take care of the property as a good father 2. Cannot alter form or substance (Art. 581)
of the family (Art. 589). 3. Cannot do anything prejudicial to
2. To answer for damages to the property usufructuary (Art. 581)
caused by a person to whom he has 4. Construct any works and make any
alienated or leased his right of usufruct (Art. improvement provided it does not diminish
590). value or usufruct or prejudice right of
3. To make ordinary repairs, and to notify the usufructuary (Art. 595)
owner of the urgent extraordinary repairs
which shall be at the latter’s expense (Art. Obligations of the Naked Owner
592-593). 1. Extraordinary expenses; usufructuary
4. To permit works and improvements by the obliged to inform owner when urgent and
owner on the property not prejudicial to the there is the need to make them
usufruct. 2. Expenses after renunciation of usufruct
5. To pay annual taxes and charges on the fruits 3. Taxes and expenses imposed directly on
and to pay interest on taxes on capital when capital
such taxes have been paid by the owner (Art. 4. If property is mortgaged, usufructuary has no
596-597). obligation to pay mortgage; if attached, owner
6. To notify the owner of any prejudicial act to be liable for whatever is lost by
committed by third persons, and he shall be usufructuary
liable should he not do so, for damages, as if 5. If property is expropriated for public use –
it was caused through his own fault. owner obliged to either replace it or pay legal
7. To pay for court expenses and costs interest to usufructuary of net proceeds of the
regarding the usufruct. same
8. Insurance
V. EXTINCTION, TERMINATION, AND
At the Termination of the Usufruct EXTINGUISHMENT
7. To return the property in usufruct unless the
usufructuary has a right of retention (Art. 612). Extinguishment of Usufruct: (PLDTERM)
8. To pay legal interest on the expenses for 1. Prescription – use by 3rd person
extraordinary repairs made, and the proper 2. Termination of right of person constituting
interest on taxes paid by the owner (Art. 594 usufruct
& 597). 3. Total Loss of thing
4. Death of usufructuary – unless contrary
Other obligations of the usufructuary clearly intention appears
1. If usufruct is constituted on animals – duty 5. Expiration of period of usufruct for which it
bound to replace dead animals that die from was constituted or by the fulfillment of any
natural causes or became prey; if all of them resolutory condition provided in the title
perish w/o fault but due to contagious disease creating the usufruct
/ uncommon event – deliver remains saved; 6. Renunciation of usufructuary – express
if perish in part due to accident – continue on 7. Merger of usufruct and ownership in the
remaining portion; if on sterile animals – as if same person (Art. 603)
fungible – replace same kind & quality (Arts.
583-602)
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Other Important Points: a. It is an encumbrance upon an immovable

• Loss in part – remaining part shall continue to called the dominant estate – belonging
be held in usufruct (Art. 604) to another person (easement of common
• Usufruct cannot be constituted in favor of a law, Art. 613).
town, corporation or association for more b. Or in favor of a community or a person to
than 50 years (Art. 605) whom the servient estate does not
• Usufruct constituted on immovable whereby belong (servitude of civil law, Art. 614)
a building is erected – and building is
destroyed – right to make use of land and An easement or servitude is a real right on
materials another’s property, corporeal and immovable,
• If owner wishes to construct a new building – whereby the owner of the latter must refrain from
pay usufructuary the value of interest of land doing or allowing somebody else to do or
and materials something to be done on his or her property, for
• Both share in insurance if both pay premium; the benefit of another person or tenement. (Pilar
if owner only – then proceeds will go to owner Development Corporation v. Dumadag, GR No.
only (Arts. 607-608) 194336, 2013)
• Effect of bad use of the thing – owner may
demand the delivery of and administration of I. CHARACTERISTICS
the thing with responsibility to deliver net
fruits to usufructuary at termination of Characteristics of Easement
usufruct (Art. 610) a. A real right – an action in rem is possible
• Thing to be delivered to owner with right of against the possessor of the servient
retention for taxes and extraordinary estate
expenses w/c should be reimbursed, security b. Imposable only on another’s property
of mortgage shall be cancelled (Art. 612) c. Jus in re aliena – real right that may be
alienated although the naked ownership
In case of expropriation: when naked owner alone is maintained
was given indemnity - he has the option to replace d. Limitation or encumbrance on the
with equivalent thing or pay usufructuary legal servient estate for another’s benefit
interest; usufructuary alone was paid – must give e. There is inherence or inseparability
to naked owner and compel return of interest; if from the estate to which it belongs
both – each own indemnity, the usufruct i. Easements are inseparable from
extinguished (Art. 609) the estate to which they actively
or passively belong (Art. 617);
If the builder is a usufructuary, his rights will be they are transmissible, cannot be
governed by Arts. 579 and 580. In case like this, alienated or mortgaged
the terms of the contract and the pertinent independently of the estate, or
provisions of law should govern. By express assigned to another immovable.
provision of law, the usufructuary, do not have the f. It is indivisible (even if the tenement be
right to reimbursement for the improvements they divided)
may have introduced on the property. (Moralidad i. Partition of either the servient or
vs. Parnes, GR No. 152809, 2006) dominant estate between two or
more persons does not affect the
————- end of topic ————- existence of the easement
g. It is intransmissible (unless the
H. EASEMENTS tenement affected also be transmitted)
h. It is perpetual (as long as the dominant
Meaning of easement/servitude and servient estate exists unless sooner
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extinguished by the causes enumerated 10. Non-apparent – show no external indication

in the law). (Paras, supra, p. 646-647). of their existence (Ex. easement of not
building to more than certain height). (Art.
II. CLASSIFICATION 615)
According to Purpose of Easement or the Doctrine of Apparent Sign

Nature of limitation Easements are inseparable from the estate to
1. Positive – one which imposes upon the which they actively or passively pertain. The
servient estate the obligation of allowing existence of the apparent sign under Art. 624 is
something to be done or of doing it himself. equivalent to a title. It is as if there is an implied
(Art. 616) contract between the two new owners that the
2. Negative – that which prohibits the owner of easement should be constituted, since no one
the servient estate from doing something objected to the continued existence of the
which he could lawfully do if the easement did windows. (Amor v. Florentino, GR No. L-48384,
not exist. (Art 616) 1943)
According to Party Given the Benefit According to Right Given

1. Real (or predial) – for the benefit of another 1. Right to partially use the servient estate (Ex.
belonging to a different owner (e.g. easement Right of Way);
of water where lower estates are obliged to 2. Right to get specific materials or objects from
allow water naturally descending from upper the servient estate;
estates to flow into them) (Art. 614) 3. Right to participate in ownership (Ex.
2. Personal – for the benefit of one or more easement of party wall)
persons or community (e.g. easement of right 4. Right to impede or prevent the neighboring
of way for passage of livestock) (Art. 614) estate from performing a specific act of
ownership
According to the Manner They are Exercised
1. Continuous – their use is incessant or may According to Source or Origin and
be incessant; (Art. 615) Establishment of Easement
1. Voluntary – constituted by will or agreement
Note: For legal purposes for acquisitive of the parties or by a testator. (Art. 619)
prescription, the easement of aqueduct is 2. Mixed – created partly by agreement and
considered continuous; easement of light and partly by law
view is also continuous. 3. Legal – constituted by law for public use or for
private interest. (Art. 619)
2. Discontinuous – used at intervals and
depend upon the acts of man (E.g. right of How Established:
way because it can only be used if a man 1. By law (Legal)
passes). (Art. 615) 2. By the will of the owners (Voluntary)
3. Through prescription (only for continuous and
According to Whether or Not their Existence apparent easements) (Art. 619)
is Indicated
9. Apparent – made known and continually kept Resultantly, when the court says that an
in view by external signs that reveal the use easement exists, it is not creating one. For, even
and enjoyment of the same (Ex. right of way an injunction cannot be used to create one as
when there is an alley or a permanent path). there is no such thing as a judicial easement. The
(Art. 615) court merely declares the existence of an
easement created by the parties. (La Vista
Association v. CA, GR No. 95252, 1997)
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(b) They do not alter or render the servitude

III. MODES OF ACQUIRING EASEMENTS more burdensome;
(c) The dominant owner, before making the
Easement/Servitude may be acquired by works, must notify the servient owner; and
1. Title, that is, by judicial acts like law, (d) They shall be done at the most
donation, contact, will (Art. 620) convenient time and manner so as to
2. Prescription of 10 years through adverse cause the least inconvenience to the
possession or frequent exercises (Art. 620). servient owner
This applies only to continues and apparent 3. Renounce the easement totally if he desires
easement, either: to exempt himself from contribution to
(a) Positive from the day the dominant necessary expenses. (Art. 628)
owner begins to exercise it, e.g. party wall 4. Ask for mandatory injunction to prevent
(b) Negative from the day in which notarial impairment of his use of the easement.
prohibition is made on servient owner e.g. (Resolme v. Lazo, GR No. L-8654, 1914)
not to obstruct the passage light
3. Deed of recognition by servient owner, e.g. Obligations of the Dominant Owner
right of way (Art. 623). 1. Notify the servient owner of works necessary
4. Final judgment, e.g. court declares existence for the use and preservation of the servitude.
in an action filed for the purpose (Art. 623). (Art. 627)
Resultantly, when the court says that an 2. Contribute to the necessary expenses if there
easement exists, it is not creating one. are several dominant estates in proportion to
For, even an injunction cannot be used to the benefits derived from the works. (Art. 628)
create one as there is no such thing as a 3. Cannot alter or impose added burden on the
judicial easement. The court merely easement. (Art. 627)
declares the existence of an easement (a) Cannot use the easement except for
created by the parties. (La Vista benefit originally contemplated
Association v. CA, GR No. 95252, 1997) (b) In easement of right of way, he cannot
5. Apparent sign established by owner of two increase the agreed width of the path nor
adjoining estates. Then one estate is deposit soil or materials outside the
alienated and the easement continuous boundaries agreed upon
actively or passively unless at the time of 4. Choose the most convenient time and manner
division, it is provided that the easement will in making the necessary works as to cause
cease or the sign removed before execution the least inconvenience to the servient owner.
of deed (Art. 624). (Art. 627)
IV. RIGHTS AND OBLIGATIONS OF THE Rights of the Servient Owner

OWNERS OF THE DOMINANT AND 1. Retain ownership of the portion on which the
SERVIENT ESTATES easement is established, and may use it in
such a manner as not to affect the exercise of
Rights Of Dominant Owner the easement. (Art. 630)
1. Exercise all rights necessary for the use of the 2. Change the place or manner of the use of the
easement. (Art. 625) easement, provided it be equally convenient.
2. Make any works necessary for the use and (Art. 629)
preservation of the servitude; subject to the 3. Use the property subject of the easement,
following conditions: (Art. 627) unless there is an agreement to the contrary.
(a) The works shall be at his expense, are (Art. 628)
necessary for the use and preservation of
the servitude; The owner of the servient estate retains the
ownership of the portion on which the easement
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is established and may use the same in such a They shall be governed by the special laws and
manner so as not to affect the exercise of the regulations relating thereto, and in the absence
easement. (Pilar Development Corporation v. thereof, by the Civil Code. (Art. 635)
Dumadag, GR No. 194336, 2013)
Voluntary Easements
Obligations of the Servient Owner Those which may be established by the owner of
1. Contribute to the necessary expenses in case a tenement of piece of land as he may deem
he uses the easement, unless there is an suitable, and in the manner and form which he
agreement to the contrary may deem best, provided that he does not
2. Not to impair the use of the easement contravene the laws, public policy or public order.
3. In case of impairment, to restore conditions to (Art. 688)
the status quo at his expense plus damages
(Arts. 627-630) VII. KINDS OF EASEMENT
4. Public – for public or communal use
V. MODES OF EXTINGUISHMENT 5. Private – for the interest of private
persons/private use, including those relating
Easement/servitude are extinguished by: to (Art. 637-687): (WALL-DRIP)
1. Merger in one person of the ownership of both Waters
dominant and servient estates. Right of Way
2. Non-use for 10 years. Count: Light and View
(a) Discontinuous Easement: from day not Party Wall
used, Drainage of Building
(b) Continuous Easement: from day an act Intermediate Distances
contrary to easement happens Against Nuisance
3. Dominant and/or servient estates fall into Lateral and Subjacent Support
condition wherein the easement cannot be
used, e.g. flood permanently submerging the
land. If the easement is revived, it has not yet a. Relating to waters
prescribed.
Easement Relating To Waters
4. Expiration of term or fulfillment of condition, in
Lower estates are obliged to receive:
conditional or temporary easement.
5. Renunciation by dominant owner 6. The waters which naturally and without the
6. Redemption agreed upon by dominant and intervention of man descend from the higher
servient owners, such as payment of certain estates; as well as
sum, doing of an act, or other prestation. 7. Stones or earth which they carry with them
In co-ownership, there is no prescription for as Owner of the lower estate cannot construct
long as one of the co-owner exercises the works, which will impede the easement, nor can
easement(Art. 633). the owner of the higher estate make works, which
will increase the burden
VI. LEGAL V. VOLUNTARY EASEMENT
Legal Easements Banks of rivers and streams, although of private
Those imposed by law having for their object ownership, are subject throughout their entire
either public use or the interest of private persons. length and within a zone of 3 meters along their
(Art. 634) margins, to the easement of public use in the
general interest of navigation, floatage, fishing
and salvage
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Estates adjoining the banks of navigable and Note: Burden of proof of proving the
floatable rivers are, subject to the easement of requisites is on the owner of the dominant
towpath, for the exclusive service of river estate
navigation and floatage
In determining the existence of an easement of
Compulsory easements for drawing of water and right of way, the requirement of "least prejudicial
for watering animals can be imposed for reasons to the servient estate" trumps "distance between
of public use in favor of a town or village, after the dominant estate and the public highway."
payment of the proper indemnity Distance is considered only insofar as it is
consistent to the requirement of least prejudicial.
Use of any water by anyone can be disposed by (Reyes v. Valentin, G.R. No. 194488, 2015)
having the water flow through the intervening
estates but is obliged to do the following: On Indemnity
1. Prove that he can dispose of the water and Not compulsory if the isolation of the immovable
that it is sufficient for the use intended is due to the proprietor’s own acts
2. Show that the proposed right of way is the
most convenient and least onerous to 3rd Right of way is granted without indemnity if land
persons was acquired by and is surrounded by the other
3. Indemnify the owner of the servient estate estates of the vendor, exchanger or co-owner
in the manner determined by the laws and through:
regulations 7. Sale
8. Exchange
Easement of aqueduct is continuous and 9. Partition
apparent even though the flow of water may not
be continuous (Arts. 637-638) Extinguishment: Legal or Compulsory Right
of Way
10. When the dominant estate is joined to another
b. Right of way estate (such as when the dominant owner
bought an adjacent estate) which is abutting a
Easement of Right of Way
public road, the access being adequate and
Right granted to a person or class of persons to
convenient
pass over the land of another by using a particular
11. When a new road is opened giving access to
pathway therein, to reach the former’s estates,
the isolated estate
which have no adequate outlet to a public
12. In both cases: must substantially meet the
highway, subject, however to payment of
needs of the dominant estate. Otherwise, the
indemnity to the owner of the servient estate (Art.
easement may not be extinguished.
649)
13. Extinguishment NOT ipso facto; the servient
estate may demand; if he chooses not to, the
Requisites: (OIL-PAN) easement remains and he has no duty to
1. Claimant must be an Owner of enclosed refund indemnity
immovable or one w/ real right 14. If extinguished, must return the amount
2. No adequate outlet to public highway received as indemnity to the dominant owner
3. Right of way is Absolutely necessary without any interest. Interest shall be deemed
4. Least prejudicial in payment for the rent.
5. Isolation not due to claimant’s own act
6. Proper indemnity Article 630 expressly provides that “[t]he owner of
the servient estate retains ownership of the
portion on which the easement is established,
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and may use the same in such manner as not to the introduction of structures or objects which, by
affect the exercise of the easement.” Thus, the their nature, create or increase the probability of
owners of the servient estate retained ownership injury, death upon or destruction of life and
of the road right-of-way even assuming that said property found on the land is necessary, then the
encumbrance was for the benefit of the owner of owner should be compensated for the monetary
the dominant estate. (Mercader, Jr. vs. Bardilas, equivalent of the land (National Power
GR No. 163157, 2016) Corporation vs. Tiangco, GR No. 170846, 2007).
Under the law, and unlike in purchase of a c. Light and View

property, should the right of way no longer be
Easement of Light and View
necessary because the owner of the dominant
Period of prescription for the acquisition shall be
estate has joined it to another abutting on a public
counted:
highway, and the servient estate demands that
15. From the time of opening of the window, if
the easement be extinguished, the value of the
through a party wall
property received by the servient estate by way of
16. From the time of the formal prohibition upon
indemnity shall be returned in full to the dominant
the proprietor of the adjoining land, if window
estate. (De Guzman v. Filinvest Development
is through a wall on the dominant estate (Art.
Corporation. GR No. 191710, 2015)
668)
The only servitude which a private owner is
An easement of light and view can be acquired
required to recognize in favor of the government
through prescription of 10 years counting from the
is the easement of a public highway, way, private
time when the owner of the dominant estate
way established by law, or any government canal
formally prohibits, through a notarial instrument,
or lateral that has been pre-existing at the time of
the adjoining lot owner from blocking the view of
the registration of the land. If the easement is not
a window located within the dominant estate.
pre-existing and is sought to be imposed only
(Alolino v. Flores,GR No. 198774, 2016
after the land has been registered under the Land
Registration Act, proper expropriation
proceedings should be had, and just
compensation paid to the registered owner.
(Eslaban v. Vda. De Onorio, GR No. 146062, I. NUISANCE
2001) Nuisance – is any act, omission, establishment,
business, condition of property, or anything else
Easement of right of way is discontinuous. It which:
may be exercised only if a person passes or sets 17. Injures or endangers the health or safety of
foot on somebody else’s land. An easement of others
right of way of railroad tracks is discontinuous 18. Annoys or offends the senses
because the right is exercised only if and when a 19. Shocks, defies or disregards decency or
train operation by a person passes over another’s morality
property. (Bomedco v. Valdez, GR No. 124699, 20. Obstructs or interferes with the free passage
2003) of any public highway or street, or any body
of water
If the easement is intended to perpetually or 21. Hinders or impairs the use of property (Art.
indefinitely deprive the owner of his proprietary 694)
rights through the imposition of conditions that
affect the ordinary use, free enjoyment and Based on case law, the term “nuisance” is
disposal of the property or through restrictions deemed to be “so comprehensive that it has been
and limitations that are inconsistent with the applied to almost all ways which have interfered
exercise of the attributes of ownership or when with the rights of the citizens, either in person,
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property, the enjoyment of his property, or his Reason for the Doctrine: The principal reason
comfort.” (Rana vs. Uy, GR No. 192861 & for the doctrine is that the condition or appliance
192862, 2014) in question although its danger is apparent to
those of age, is so enticing or alluring to children
NOTE: Lapse of time cannot legalize any of tender years as to induce them to approach,
nuisance, whether public or private get on or use it, and this attractiveness is an
implied invitation to such children. (Hidalgo
Kinds of Nuisances Enterprises, Inc. v. Balandan, GR No. L-3422,
22. Public (or common) nuisance – affects the 1952)
public at large or a community or considerable
number of persons or their properties. Thus: One who maintains on his premises dangerous
A house constructed partly on a municipal instrumentalities or appliances of a character
street affects adversely the use of that likely to attract children in play, and who fails to
street by the public; and exercise ordinary care to prevent children from
An unsanitary piggery located in playing therewith or resorting thereto, is liable to
residential area emitting offensive odors a child of tender years who is injured thereby,
and pernicious to the health of residents. even if the child is technically a trespasser in the
A noisy or dangerous factory in a premises. (Hidalgo Enterprises, Inc. v. Balandan,,
residential district GR No. L-3422, 1952)
23. Private nuisance – affects an individual or a
limited number of persons only (Art. 695). Note: Generally not applicable to bodies of water,
Examples: artificial as well as natural in the absence of some
The wall of a property in danger of unusual condition or artificial feature other than
collapsing on the adjoining property the mere water and its location.
owned by another person
Obstruction to the right of way of a I. NUISANCE PER SE
property and its residents Nuisance per se is one which is a nuisance at all
24. Nuisance Per Se – one which is a nuisance times and under any circumstances, regardless
at all times and under any circumstances, of location or circumstances, such as a house
regardless of location or circumstances, such constructed on a public street or a fishpond
as a house constructed on a public street obstructing creek.
25. Nuisance Per Accidens – nuisance by
reason of location, surrounding or in the Squatting is unlawful and the grant of the permits
manner it is conducted or managed. (De fosters moral decadence. The houses are public
Leon, supra, p. 554-555). nuisance per se and they can be summarily
abated, even without the aid of the courts. The
A basketball court, an object of recreation in a squatters can, therefore, be ousted. (City of
barangay, is a mere nuisance per accidens and Manila v. Gerardo Garcia, et al. GR No. L-26053,
not per se, as it does not pose an immediate 1967)
danger to safety of persons and property. Hence,
it cannot be summarily abated. (Cruz v. II. NUISANCE PER ACCIDENS
Pandacan Hiker’s Club, GR No. 188213, 2016) Nuisance per accidens becomes a nuisance by
reason of circumstances, location or
surroundings.
Doctrine of Attractive Nuisance
Attractive Nuisance – dangerous instrumentality
It is not a nuisance by its nature but it may
or appliance which is likely to attract children to
become so by reason of locality, surrounding, or
play
circumstances (e.g. slaughter house).
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III. LIABILITIES that criminal prosecution is not allowable.

He who creates a nuisance is liable for the Hence the only remedies are a civil action and
resulting damages and his liability continues as abatement without judicial proceedings
long as the nuisance continues. (extrajudicial abatement) (Art. 705)
Every successive owner or possessor of property Effects on Owners

who fails or refuses to abate a nuisance in that Owner of nuisance property is not entitled to
property started by a former owner or possessor compensation. (Art. 436)
is liable therefor in the same manner as the one
who created it (Art. 696). Subsequent owner of the property, having full
knowledge of the existence of the nuisance and
When successor to the property may be held did not remove the nuisance, is solidarily liable for
liable the injuries and damages caused.
The successor, to be held liable, must knowing
fail or refuse to abate the nuisance. The successor, to be held liable, must knowingly
fail or refuse to abate the nuisance
IV. NO PRESCRIPTION
Lapse of time cannot legalize any nuisance, All Remedies May be Simultaneously Pursued
whether public or private (Art. 689). to Remove a Nuisance
Aside from the remedy of summary abatement
Effect of lapse of time which should be taken under the parameters
The action to abate a public or private nuisance stated in Art. 704 (for public nuisances) and Art.
is not extinguished by prescription (Art. 1143[2], 706 (for private nuisances), a private person
Civil Code). whose property right was invaded or
unreasonably interfered with by the act, omission,
Exception establishment, business or condition of the
Arts. 698 and 1143(2) do not apply to easements property of another, may file a civil action to
which are extinguished by obstruction and non- recover personal damages.
user for ten years. (See Art. 631).
Abatement may be judicially sought through a
V. REMEDIES AGAINST PUBLIC NUISANCE civil action therefor if the pertinent requirements
The remedies against a public nuisance are: under the Civil Code for summary abatement, or
1. Criminal prosecution under the the requisite that the nuisance is a nuisance per
Revised Penal Code or a local ordinance; se, do not concur.
2. Civil action, including damages;
3. Abatement, summary and without To note, the remedies of abatement and
judicial proceedings damages are cumulative; hence, both may be
demanded. (Rana v. Uy, GR No. 192861 &
Abatement is the exercise of police power which 192862, 2014)
includes the right to destroy property regarded as
a public health and safety, and there is VI. CRIMINAL PROSECUTION
accordingly no obligation for compensation. Criminal prosecution is only a remedy against a
public nuisance. In private nuisance, criminal
VI. REMEDIES AGAINST A PRIVATE prosecution is NOT a remedy. However, if indeed
NUISANCE a crime has been committed, as defined by the
Revised Penal Code, criminal prosecution can
The remedies against a private nuisance are the proceed. (Paras, p. 751)
same as in the case of public nuisance, except
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VII. JUDGMENT WITH ABATEMENT 1. That demand be first made upon the owner or
Besides being held liable for damages or being possessor of the property to abate the
sentenced to the penalty, the Court may also nuisance;
order to abate the nuisance. 2. That such demand has been rejected;
3. That the abatement be approved by the
VIII. EXTRAJUDICIAL ABATEMENT district health officer and executed with the
Any person injured by a private nuisance may assistance of the local police and
abate it by removing, or if necessary, by 4. That the value of the destruction does not
destroying the thing which constitutes the exceed three thousand pesos.
nuisance, without committing a breach of the 5. (Department of Public Works and Highways v.
peace or doing unnecessary injury. However, it is City Advertising Ventures Corp., G.R. No.
indispensable that the procedure for extrajudicial 182944, 2016).
abatement of a public nuisance by a private
person be followed. (Art. 706) IX. SPECIAL INJURY TO INDIVIDUAL
Note: An extrajudicial abatement can only be When a private person may sue on account of
applied for if what is abated is a nuisance per se a public nuisance
and not nuisance per accidens. a) Ordinarily, it is the mayor who must bring
the civil action to abate a public nuisance
Requisites for extrajudicial abatement b) But a private individual can also do so, if
1. The nuisance must be specially injurious to the public nuisance is SPECIALLY
the private person affected INJURIOUS to himself.
2. No breach of peace or unnecessary injury is a. The action may be for injunction,
committed abatement or for damages. (Art.
3. Demand has been made upon the owner or 703, Paras, p. 750)
possessor of the property to abate the
nuisance
X. RIGHT OF INDIVIDUAL TO ABATE A
4. Demand has been rejected
PUBLIC NUISANCE
5. Abatement must be approved by the district
health officer and executed with the
Requirements for Abatement of a Public
assistance of the local police
Nuisance by a Private Person:
6. Value of the destruction does not exceed
I. Any private person may abate a public
P3,000 (Art. 704)
nuisance which is specially injurious to him by
removing, or if necessary, by destroying the
Note: A private person or a public official
thing which constitutes the same, without
extrajudicially abating a nuisance shall be liable
committing a breach of the peace, or doing
for damages to the owner of the thing abated:
unnecessary injury.
1. If he causes unnecessary injury;
2. If an alleged nuisance is later declared by the
courts to be not a real nuisance. (Art. 707)
II. But it is necessary that:
1. Demand has been made upon the owner
While DPWH, by virtue of the AO issued by the
or possessor of the property to abate the
President, may abate the billboards for being
nuisance
public nuisance if it is specially injurious to it, the
2. Demand has been rejected
following procedure must be necessarily followed
3. Abatement be approved by the district
in order to satisfy the standards of due process:
health officer and executed with the
assistance of the local police
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4. Value of the destruction does not exceed 5. Intellectual Creation

P3,000 6. Prescription
5. If public nuisance, it must be specially 7. Succession (Art. 712)
injurious to him (Art. 704)
I. OCCUPATION
XI. RIGHT TO DAMAGES The acquisition of ownership by seizing corporeal
A person may maintain an action for damages things which have no owner, made with the
caused by a nuisance. intention of acquiring them, and accomplished
according to legal rules. (De Leon, supra, p. 585)
If the nuisance is temporary or recurrent in
character, each repetition of it gives rise to a new Requisites:
cause of action. 1. Seizure or apprehension
2. Property seized must be corporeal movable
The remedies of abatement and damages are property
cumulative; hence, both may be demanded. 3. Property must be susceptible of appropriation
4. Intent to appropriate
Even if nuisance no longer exists, the aggrieved 5. Compliance with requisites or conditions of
person may still pursue a civil action for damages the law (De Leon, supra, p. 585).
suffered during the existence of the nuisance.
Note: The holding of the material is not required
XII. DEFENSES TO ACTION as long as there is right of disposition.
Defenses
1. Estoppel Abandoned property – res derelicta, a thing is
- One who voluntarily places himself in a considered abandoned when:
situation whereby he suffers an injury will 1. The spes recuperandi (expectation to
not be heard to say that his damage is recover) is gone.
due to a nuisance maintained by another 2. The animo revertendi (intention to return or to
2. The non-existence of the nuisance have it returned) has been given up by the
3. Impossibility of abatement owner. (De Leon, supra, p. 587).
4. Public necessity (Paras, p. 752)
Un-owned Property – res nullius
XIII. WHO MAY SUE ON PRIVATE NUISANCE 1. Without an owner
Any person injured by a private nuisance may file 2. Intent to appropriate
a civil action or cause the summary abatement 3. Compliance with the requisites or conditions
thereof. of the law
Possession of the real estate alone is sufficient to Some Kinds of Property Acquirable by
sustain an action. Legal title is not necessary. Occupation
1. Those without an owner, like animals that are
————- end of topic ————- object of hunting and fishing
2. Hidden treasure (he gets half as finder, by
occupation, provided he is not a trespasser).
J. MODES OF ACQUIRING OWNERSHIP
(Art. 154)
3. Abandoned movables
Modes of Acquiring Ownership (OLD-TIPS)
1. Occupation
2. Law Note: Stolen property cannot be the subject of
3. Donation occupation.
4. Tradition
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Note: Hunting and fishing are regulated by Note: While land cannot be acquired by
special laws: Act 2590; Fisheries Act 4003 as occupation, it may be acquired by prescription
amended by C.A.116, C.A. 147 and R.A. 659; Act (which is an altogether different thing).
1499 as amended by Act 1685; P.D. 534;
Municipal ordinances. Abandonment requires:
26. A clear and absolute intention to renounce a
Kinds of Animals right or a claim or to abandon a right or
1. Wild – considered res nullius when not yet property; and
captured; when captured and escaped – 27. An external act by which that intention is
becomes res nullius again expressed or carried into effect. (De Leon,
2. Domesticated animals – originally wild but supra)
have been captured and tamed; now belong
to their capturer; has habit of returning to The intention to abandon implies a departure,
premises of owner; becomes res nullius if with the avowed intent of never returning,
they lose that habit of returning and regain resuming or claiming the right and the interest
their original state of freedom that have been abandoned. (Castellano v.
3. Domestic/tamed animals – born and Francisco, GR No. 155640, 2008)
ordinarily raised under the care of people;
become res nullius when abandoned by II. DONATIONS
owner. (De Leon, supra)
Nature
Rules When Movable Found is not Treasure: An act of liberality whereby a person disposes
1. Must be returned to owner gratuitously of a thing or right in favor of another,
2. If finder retains the thing found – he may be who accepts it (Art. 725)
charged with theft Donation is perfected from the moment the donor
3. If owner is unknown, the movable must e knows of the acceptance by the donee (Art. 724)
deposited with the mayor; mayor shall
announce publicly the finding of the movable Characteristics
for 2 weeks in a way he deems best 1. Unilateral – obligation imposed on the donor
4. If owner does not appear 6 months from 2. Consensual – perfected at time donor knows
publication, the movable shall be awarded to of acceptance
the finder
5. If owner appears, he is obliged to pay the
Requisites of Donation (CIDAF)
finder 1/10 of value of property as price 1. The donor must have Capacity to make the
6. If movable is perishable or cannot be kept donation of a thing or right
without deterioration or without expenses, it
2. Donative Intent (animus donandi) or intent to
shall be sold at public auction 8 days after the
make the donation out of liberality to benefit
publication. (Art. 719)
the donee
3. Delivery, whether actual or constructive of the
thing or right donated
Ownership of a Piece of Land Cannot be
4. Donee must Accept or consent to donation
Acquired by Occupation
5. Compliance with the prescribed Form
Land that does not belong to anyone is presumed
to be public land. When a land is without an
The donation is perfected once the acceptance of
owner, it pertains to the State.
the donation was made known to the donor.
Accordingly, ownership will only revert to the
donor if the resolutory condition is not fulfilled.
(Quijada v. CA, GR No. 126464, 1998)
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KINDS OF DONATION Note: Illegal or impossible conditions in simple

and remuneratory donations are considered as
Kinds As To Effectivity not imposed. Donation itself remains valid and
1. Inter vivos - takes effect during the lifetime only the illegal or impossible conditions are
of the donor, even though the property shall disregarded. (Art. 727)
not be delivered till after donor’s death or
even though it is subject to resolutory or Donation Inter Vivos distinguished from
suspensive condition (Art. 729 and Art. 730). Donation Mortis Causa
2. Mortis Causa - takes effect upon the death DONATION INTER DONATION MORTIS
of the donor and shall be governed by the VIVOS CAUSA
rules of succession (Art. 728) Disposition and Disposition happens
3. Propter Nuptias - Donation by reason of and acceptance to take upon the death of
in consideration of marriage, before its effect during lifetime donor; acceptance by
celebration, in favor of one or both of the of donor and donee donee can only be
future spouses (Art. 82, Family Code) done after donor’s
death
Kinds As to Consideration Already pertains to Even if there is a term
1. Pure and Simple – When the cause of the the donee unless of effectivity and
donation is the pure liberality of the donor in there is a contrary effectivity is upon the
consideration of the donee’s merits, intent death of the donor, still
2. Remuneratory or compensatory – entitled to fruits
Donation is given out of gratitude on account Formalities required - Formalities required -
of the services rendered by the donee to the follow law on follow law on
donor, provided the services do not donations and certain succession to be valid,
constitute a demandable debt. kinds of donations and donation must be
3. Modal – When the donation imposes upon and law on in the form of a will
the donee (necessarily future) a burden less obligations and
than the value of the thing given contracts (suppletory)
4. Onerous – the value of which is considered Irrevocable at the Revocable ad mutuum
the equivalent of the consideration for which instance of the donor; (exclusive will of
it is given and thus governed by the rules of may be revoked only donor)
obligations and contracts by reasons provided
by law
Note: Where a contract is seemingly a Revoked only for
remuneratory donation but is silent as to the value reasons provided for
of the burden imposed on the donee of a thing of by law (except
undetermined value, the law on contract instead onerous donations)
of the law on donations should govern. (Reyes v.
Asuncion, GR No. 196083, 2015)
Some Rules on Determination Whether Mortis
As to Effectivity of Extinguishment
Causa or Inter Vivos
1. Pure – not subject to any condition (uncertain
Where a donation was made “in consideration of
event) or period
love and affection” but further stipulated that “It
2. Conditional – subject to suspensive or
became effective upon the death of the donor
resolutory condition
provided that in the event the donee should die
3. With a Term – subject to a period,
before the donor, the donation would be deemed
suspensive or resolutory
automatically rescinded,” the Court held that the
same was a mortis causa since the right of
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disposition was not transferred to donee while (c) If oral, it must be with simultaneous
donor is still alive. (Sicad v. CA, GR No. 125888, delivery of the thing or of the document
1998) representing the right donated. (Art. 748)
Where, however, a donation was made 2. Immovable Property

stipulating that it would take effect after the death (a) To be valid, donation must be made in a
of the donor but further stipulated that (1) the public instrument, specifiying therein the
donor will not dispose nor take it away from the property donated and the value of the
donee and that (2) the donor is parting with the charges which the done must satisfy.
beneficial ownership while he lived was held to be (b) The acceptance of the donee may be
inter vivos. made in the same deed of donation or in
a separate public document..
In case of doubt, the conveyance should be (c) If the acceptance is made in a separate
deemed donations inter vivos, rather than mortis instrument, the donor shall be notified
causa, in order to avoid uncertainty as to the thereof in an authentic form, and this step
ownership of the property subject of the deed shall be noted in both instruments.
(Villanueva v. Spouses Branoco, GR No. 173804, (d) Acceptance must be be made during the
2011). lifetime the donor. (Art.749)
The reservation of the “right, ownership, Note: A donation mortis causa must comply with
possession and administration of the property” the formalities of a last will and testament
and made the donation operative upon death , in otherwise; it would be void and would produce no
the context of an irrevocable donation, simply effect. (Maglasang v. Heirs of Corazon
means that the donors parted with their naked Cabatingan, GR No. 131953, 2002)
title, maintaining only beneficial ownership of the
donated property while they lived. (Del Rosario If the donation is made in such a way that the full
vs. Ferrer, GR No. 187056, 2012) and naked ownership will pass to the donee upon
the death of the donor, then it is at that time when
Badges of Mortis Causa: the donation will take effect and it is the donation
1. Title remains with donor (full or naked mortis causa which should be embodied in the
ownership) and conveyed only upon death last will and testament. (Maglasang v.
2. Donor can revoke ad nutum (Villanueva v. Cabatingan, GR No. 131953, 2002)
Spouses Branoco, G.R. No. 172804, 2011)
Checklist for Donation:
Note: Transfer is void if transferor survives 1. Whether onerous or gratuitous – if onerous,
transferee (Del Rosario v. Peralta G. No. 187056, governed by law on contracts
2010; Villanueva v. Spouses Branoco, GR No. 2. If gratuitous, whether mortis causa or inter
172804, 2011) vivos – if mortis causa, governed by law on
succession
FORMS OF DONATION 3. If inter vivos, whether perfected or not (made
1. Movable Property known to the donor). If no perfection, donation
(a) If the value exceeds P5,000, the donation is void.
and acceptance shall be made in writing. 4. If perfected, check for the capacity of the
Otherwise the donation shall be void. donor to give and the donee to receive. If no
(b) If the value is below P5,000, donation capacity, donation is void.
may be made orally or in writing. 5. Compliance with form, otherwise void.
(a) Art. 748 (movable); and
(b) Art. 749 (immovable)
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DOUBLE DONATIONS 9. Individuals, corporations, and associations

Rule: Priority in time, priority in right not permitted by law.
1. If movable – one who first takes possession in
good faith Note: The prohibition against donations between
2. If immovable – one who recorded in registry spouses must likewise apply to donations
of property in good faith between persons living together in illicit relations.
(a) No inscription, one who first took (Joaquino v. Reyes, G.R. No. 154645, 2003)
possession in good faith
(b) In absence thereof, one who presents Note: In case of donation of the same thing to two
oldest title or more different persons, the rules on double
sale will apply.
Note: Donation of purchase money must follow
the formal requirements mandated by law should Pursuant to Article 1544, ownership of immovable
the money donated exceed P5000. (Spouses property subject of a double sale is transferred to
Devisfruto v. Greenfell, G.R. No. 227725, July 1, the buyer who first registers it in the Registry of
2020) Property in good faith. However, when the
second buyer has actual or constructive
knowledge of the prior sale, they cannot be a
PERSONS WHO MAY GIVE OR RECEIVE A
registrant in good faith (Spouses German v.
DONATION
Spouses Santuyo, G.R. No. 210845, January 22,
2020)
1. Capacity to be Donor
All persons who may contract and dispose of their 2. Capacity to be Donee
property may give donation. Those who cannot
All those who are not specially disqualified by law
give consent to a contract cannot be donors.
may accept donations.
Note: Donor’s capacity shall be determined as of
the time of the “making” and not at the “perfection” Who May Accept Donations
of the donation (Arts. 737) 1. Natural and juridical persons not especially
disqualified by law
Who are Disqualified to Donate 2. Minors and other incapacitated
1. Guardians and trustees with respect to By themselves if pure and simple
property entrusted to them donation or if it does not require written
2. Husband and wife, to each other. acceptance
3. Between paramours/persons guilty of adultery By their parents or legal representatives
or concubinage at the time of donation if the donation is onerous or conditional or
4. Between parties guilty of same criminal needs written acceptance
offense, in consideration thereof i. Natural guardian – not more than
5. Made to public officers, wife, descendant, 50,000
ascendant, by reason of his office (Arts. 736, ii. Court appointed – more than
739) 50,000
6. Priest who heard confession of donor during 3. Conceived and unborn child, represented by
his last illness; person who would have been guardian if
7. Relatives of priest within the fourth degree, already born (Arts. 738, 741 & 742)
church order, or community where priest
belongs; Requirements for Acceptance
8. Physician, nurse, etc. who took care of donor 4. Acceptance must be made during the lifetime
during his last illness; of the donor and donee (Art. 746)
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5. Acceptance may be made personally or - The limitation applies when the donor
through an agent with special or general and has forced or compulsory heirs. The
sufficient power, otherwise, the donation shall purpose is to not diminish their legitimes.
be void (Art. 745)
6. Authorization should be in a public A donation would not be legally feasible if the
instrument. donor has neither ownership nor real rights that
7. Minors and others who cannot enter into a he can transmit to the donee. (Hemedes v. CA,
contract, shall have acceptance done through GR No. 107132, 2008)
parents or legal representatives (Art. 741)
8. Conceived and unborn children shall have Rights and Obligations of Donor
donation accepted by persons who would 1. Donor may reserve the right to dispose of
legally represented them if they were already some of the things donated, or of some
born (Art. 742) amount or income charge thereon (Art. 755)
2. Donor may donate the ownership of property
Void Donations to one person and the usufruct to another (Art.
1. Those made between persons who are guilty 756)
of adultery or concubinage at the time of 3. Donor is not obliged to warrant the things
donation donated except when the donation is
2. Those made between persons found guilty of onerous, in which case the donor is liable for
the same criminal offense, in consideration eviction or hidden defects in case of bad faith
thereof on his part. (Art. 754).
3. Those made to a public officer or his wife, 4. Donor may provide for reversion in his favor.
descendants and ascendants, by reason of (Art. 757)
his office (Art. 739)
4. Donation between spouses during marriage, Rights and Obligations of Donee:
except moderate gifts (Art. 87, Family Code) 1. If donation is made to several persons jointly,
5. Those made to incapacitated persons, though it is understood to be in equal shares and
simulated under the guise of another contract there is no right of accretion among them,
or through a person who is interposed. unless the donor provides otherwise.
If made to the husband and wife jointly, there
EFFECTS AND LIMITATIONS OF DONATION is right of accretion. (Art. 753)
1. Reservation of sufficient means for support of 2. Donee is subrogated to all the rights and
donor and relatives. actions which in case of eviction would pertain
- Donation may comprehend all present to the donor (Art. 754)
properties of the donor, or part thereof, (a) If donation imposes upon the donee the
provided he reserves sufficient means for obligation to pay the debts of the donor, it
his support and of relatives who, at the is understood to be liable to pay only the
time of the acceptance of the donation, debts previously contracted.
are by law entitled to be supported by the Note: In no case shall the donee be
donor. Otherwise, the donation will be responsible for debts exceeding the
subject to reduction upon petition of any value of the property donated, unless a
person affected. (Art. 750) contrary intention appears. (Art. 758)
2. Donation of future property is prohibited. (Art. 3. If no stipulation regarding they payment of
751) debts, donee is liable only when the donation
3. Donation shall be limited to what the donor has been made in fraud of creditors
may give by will. Otherwise, the donation is Note: It is always presumed to be in fraud of
inofficious (Art. 752). creditors, when at the time of donation, the
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donor did not reserve sufficient property to

pay his debts. (Art. 759) (c) Donee unduly refuses to give support
when the donee is legally or morally
REVOCATION AND REDUCTION OF bound to give support to the donor.
DONATION
Period for action prescribes within one year,
REVOCATION counted from the time the donor:
Revocation Of Donations (d) Had knowledge of the fact; and
1. Affects the whole donation (e) It was possible for him to bring the action.
2. Applies only to donation inter vivos (Art. 769)
3. Not applicable to onerous donations
4. Donor can revoke donation if the donee fails Note: Action granted to the donor by reason of
to comply with the conditions imposed by the ingratitude may not be advanced and may not be
donor. transmitted to the heirs of the donor. (Art. 769 -
770)
Grounds For Revocation
1. Birth, Adoption, Reappearance of a Child Exception to Rule on Intransmissibility of
It applies when the donor, at the time he made Action regarding Revocation Due to
the donation, did not have any child or Ingratitude
descendant or erroneously thought so. Donation General Rule: Personal to the donor; heir cannot
may be revoked or reduced when: institute if donor did not provide for
(a) Donor should have any children, after
donation, even though they be Exception: Heirs may file in the following cases:
posthumous (a) Donor has instituted proceedings but dies
(b) Donor’s child whom he believed to be before bringing civil action for revocation
dead when he made the donation, turn (b) Donor already instituted civil action but died,
out to be living heirs can substitute
(c) Donor subsequently adopt a minor child (c) Donee killed donor or his ingratitude caused
(Art. 760) the death of the donor
(d) Donor died without having known the
2. Ingratitude ingratitude done
The donation may also be revoked by reason of (e) Criminal action filed but abated by death
ingratitude in the following cases:
(a) Donee should commit some offense 3. Non-compliance with conditions
against the person, honor or property of Donation may be revoked when the donee fails to
the donor, or of his wife, or children under comply with any of the conditions which the donor
his parental authority. imposed.
(b) Donee imputes to the donor any: The alienations and mortgages made by the
a. Criminal offense; or donee are void, subject to the limitations imposed
b. Any act involving moral turpitude; by the Mortgage Law and Land Registration laws
with regard to third persons.
Note: Revocation applies even if the
donee proves that the crime or act was Action prescribes after 4 years from the
actually committed, unless the crime or noncompliance with the condition.
the act has been committed against the
donee himself, his wife, or children under
his authority.
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Note: This action may be transmitted to the heirs 4. If there are 2 or more donation: recent ones
of the donor, and may be exercised against the shall be suppressed
donee’s heirs. (Art. 764) 5. If 2 or more donation at same time – treated
equally and reduction is pro rata but donor
When There is No Period Fixed for the may impose preference which must be
Condition Imposed expressly stated in donation
General rule is that if the period is not fixed in the 6. Effect of declaration as inofficious: the
contract, the court can fix the period. However, in donation is annulled only as to the portion
a case where 50 years had passed without the diminishing the legitime
condition having been fulfilled the Court refused
to fix a period and ruled that the donation can be Cause of action arising from the inofficiousness
revoked for failure to comply with that condition. of donation arises only upon death of the donor,
(Central Philippine University v. CA, GR No. as the value of the donation will be contrasted
112127, 1995) with the net value of the estate of the donor
decedent. (Eloy Imperial v. CA, GR No. 112483,
Illegal and Impossible Conditions 1999)
In Simple/Remunatory donations – shall be
considered as not imposed (Art. 727) Automatic Revocation
In contracts providing for automatic revocation,
In Onerous/Contract – annuls obligation; judicial intervention is necessary not for purposes
obligation and conditions are void (Art. 1183) of obtaining a judicial declaration rescinding a
contract but in order to determine whether or not
REDUCTION the rescission was proper.
Grounds For Reduction
1. Birth, appearance or adoption of a child The stipulation of the parties providing for
- Same cases as revocation automatic revocation of the deed of donation,
2. Failure to reserve without prior judicial action for that purpose, is
- Failure of the donor to reserve sufficient valid subject to the determination of the propriety
means for support of himself or of the rescission sought. Where such propriety is
dependent relatives sustained, the decision of the court will be merely
declaratory of the revocation, but it is not in itself
3. Fraud against creditors
the revocatory act. (Zamboanga Barter Traders v.
- Failure of donor to reserve sufficient
Plagata, G.R. No. 148433, 2008)
property to pay off existing debts
4. Inofficiousness
III. PRESCRIPTION
- the donation exceeds that which the
Prescription is a mode of acquiring ownership
donor can give by will
and other real rights through lapse of time
(acquisitive prescription); and losing rights and
Inofficious donations: action (extinctive prescription)
1. Shall be reduced with regard to the excess
2. Action to reduce shall be filed by heirs who There are two kinds of prescription.
have right to legitime at time of donation 1. Acquisitive prescription – it is the
(compulsory heirs of donor, heirs and acquisition of ownership and other real rights
successor-in-interest of compulsory heirs) through possession of a thing in the manner
3. Voluntary heirs/devisees/ legatees/ Donees/ and under conditions provided by law.
creditors of deceased donor cannot ask for 2. Extinctive prescription – it is the loss or
reduction of donation extinguishment of property rights or actions
through the possession by another of a thing
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for the period provided by law or through PRESCRIPTION

failure to bring the necessary action to
enforce one’s right within the period fixed by
law (De Leon, p. 701); also referred to as
limitation of actions (Morales v. CFI, GR No.
A. TYPES OF PRESCRIPTION
L-52278, 1980)
I. Acquisitive
Prescription Of Ownership And Other Real II. Extinctive
Rights
B. WHEN PRESCRIPTION IS
Acquisitive prescription of ownership and other INAPPLICABLE
real rights may be ordinary or extraordinary. I. By offender
II. Registered lands
Ordinary acquisitive prescription requires III. Actions to demand right of way;
possession of things in good faith and with just to abate a nuisance
title for the time fixed by law. Extraordinary IV. Action to quiet title if plaintiff is
acquisitive prescription requires neither good possession
faith nor just title but possession for a longer V. Void contracts
period than the ordinary. VI. Action to demand partition;
distinguished from laches
Period for acquisition VII. Property of public dominion
1. Movable
4 years with good faith & just title C. PRESCRIPTION OR LIMITATION OF
8 years if without ACTIONS
I. To recover movables
2. Immovable II. To recover immovable
10 years with good faith & just title III. Other actions
30 years if without
D. INTERRUPTION
Prescription Of Actions
Mode of losing rights and actions by mere lapse
of time fixed by law.
Interruption of prescription of actions

1. Action is filed before the court
2. There is extrajudicial demand by the
creditors
3. There is any written acknowledgement of the
debt by the debtor (Jurado, Civil Law
Reviewer, 2009)
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2. Between parents and children, during the

A. TYPES OF PRESCRIPTION minority or insanity of the latter.
3. Between guardian and ward during the
1. ACQUISITIVE continuance of the guardianship. (Art. 1109)
Mode of acquiring ownership and other real rights

Things Subject to Prescription (Art. 1113)
through lapse of time.
All things within the commerce of men
General Requisites for Acquisitive 1. Private property
Prescription: (CTPL) 2. Patrimonial property of the State
4. Capacity of the possessor to acquire by - To be subject of prescription,
prescription the land must be classified as alienable
5. Thing capable of acquisition by prescription and disposable, and
6. Possession of thing under certain conditions it must be expressly declared by the State
7. Lapse of time provided by law that it is no longer intended for public use.
(Republic v. Ching, G.R. No. 186166,
Who May Acquire by Prescription 2010)
1. Person who is capable of acquiring property
by other legal modes It is only when alienable and disposable lands are
2. State expressly declared by the State to be no longer
3. Minors (through guardians or personally) (Art. intended for public service or for the development
1108) of the national wealth that the period of acquisitive
prescription can begin to run.
Against Whom Prescription May Run (Heirs of Delfin v. National Housing Authority, GR
1. Minors and incapacitated person who have 193618, November 28, 2016)
parents, guardians or other legal
representatives; The period of possession prior to the declaration
2. Absentees who have administrators; that land is alienable and disposable agricultural
3. Persons living abroad who have managers or land is included in the computation of possession
administrators for purposes of acquiring registration rights over
4. Juridical persons, except the state with a property so long as the land has already been
regard to property not patrimonial in character declared as alienable and disposable at the time
(Art. 1108); of the application for registration. (AFP
5. Between husband and wife (only if specifically Retirement and Separation Benefits System v
provided for by law); Republic of the Philippines, G.R. No. 180086,
6. Between parents and children (during 2014)
minority/insanity) (prescription may run)
7. Between guardian and ward (during Things Not Subject to Prescription
guardianship) (prescription may run) 1. Property of public dominion (Art. 1113)
8. Between co-heirs/co-owners (there must be 2. Intransmissible rights
definite repudiation first) 3. Movables possessed through a crime (Art.
9. Between owner of property and person in 1133)
possession of property in concept of owner 4. Registered land; lands covered by title (P.D.
1529, Sec. 47)
Against Whom Prescription Does Not Run
1. Between husband and wife, even though
there be a separation of property agreed upon
in the marriage settlements or by judicial
decree.
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Renunciation of Prescription
Persons with capacity to alienate may renounce Just Title – when the possession was acquired
prescription already obtained but not the right to through one of the modes recognized by law, but
prescribe in the future. the grantor was not the owner or could not
transmit any right (Art. 1129, NCC); must be
Renunciation may be express or tacit. proved and never presumed; only Titulo Colorado
Prescription is deemed to have been tacitly is required
renounced; renunciation results from the acts 1. Titulo Colorado – such title where there was
which imply abandonment of right acquired. (Art. a mode of transferring ownership but
1112) something is wrong because the grantor is
NOT the owner
Creditors and persons interested in making
2. Titulo putativo - a person believes he has
prescription effective may avail it themselves
obtained title but he has not because there
notwithstanding express or tacit renunciation.
was no mode of acquiring ownership, as
(Art. 1114)
when one is in possession of a thing in the
a. Ordinary mistaken belief that it had been bequeathed
to him. (Doliendo v Biarnesa, G.R. No. L-
Ordinary Prescription 2765, 1906)
1. Possession in the concept of an owner, 3. Title must be one which would have been
public, peaceful and uninterrupted; sufficient to transfer ownership if grantor had
2. Within time fixed by law (4 years for been the owner
movables; 10 years for immovable); 4. Through one of the modes of transferring
3. Good faith ownership but there is vice/defect in capacity
4. Just title; of grantor to transmit ownership
b. Extraordinary
In Concept of Owner
In extraordinary prescription, ownership and 1. Possession NOT by mere tolerance of owner
other real rights over immovable property are but adverse to that of the owner
acquired through uninterrupted adverse 2. Claim that he owns the property
possession thereof for 30 years without need of
title or of good faith. (Gesmundo v. CA, G.R. No. Public, Peaceful & Uninterrupted
119870, 1999). 1. Must be known to the owner of the thing
2. Acquired and maintained without violence
Extraordinary Prescription 3. Uninterrupted (no act of deprivation by others)
1. Possession in the concept of an owner, in the enjoyment of property
public, peaceful and uninterrupted;
2. Within time fixed by law (8 years for
movables; 30 years for immovables): 2. EXTINCTIVE
a. Characteristics
Note: Just title and good faith NOT
required in extraordinary prescription; Extinction of rights and actions; also referred to
as limitation of actions (Morales v. CFI, GR No. L-
Good Faith 52278, 1980) which implies that actions to
1. Reasonable belief that person who enforce or preserve a right or claim must be
transferred the thing is the owner and could brought within a certain period of time.
validly transmit ownership
2. Must exist throughout the entire period
required for prescription
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b. Requisites 6. Actions to Imprescriptible

quiet title if
1. Capacity to acquire by prescription plaintiff is in
2. A thing capable of acquisition by prescription possession
3. Possession of the thing under certain 7. Void contracts Action to declare a
conditions contract void is
4. Lapse of time provided by law imprescriptible
c. Periods
Note: An action to annul
Prescription of action to recover movables a voidable contract
and immovables prescribes after 4 years
8. Actions to Action to demand
demand partition is imprescriptible
1. Movable
partition; or cannot be barred by
4 years with good faith & just title
distinguished laches, absent a clear
8 years if without
from laches repudiation of the co-
ownership by a co-owner.
2. Immovable
(De Leon, p. 253)
10 years with good faith & just title
30 years if without 9. Property of Property of public
public dominion cannot be
dominion acquired by prescription
B. WHEN PRESCRIPTION IS INAPPLICABLE
for they are outside the
IMPRESCRIPTIBLE
commerce of men.
3. By Offender The offender can never
acquire, through
prescription, movables Right of reversion or
possessed through a reconveyance to the
crime (Art. 1133). State of things which are
not susceptible of being
The action to recover appropriated is not barred
from the offender is by prescription. (De Leon,
imprescriptible. p. 758)
4. Registered Title to lands registered Land of the public domain

lands under the Torrens System must be declared
cannot be acquired by alienable and disposable
prescription or adverse either by the President or
possession as against the the Secretary of the
registered owner or DENR to be the subject of
hereditary successor (PD appropriation. The period
1529). Action to recover of possession prior to the
registered land is reclassification of the land
imprescriptible. as disposable cannot be
5. Actions to Imprescriptible considered in reckoning
demand right the prescriptive period in
of way; to favor of the possessor.
abate (Republic v. De Guzman
nuisance
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Vda. De Joson, GR No. 4 years Injury to rights

163767, 2014) Quasi Delict (Art. 1146)
Rescission/Annulment of contract
1 year Forcible entry
C. PRESCRIPTION OR LIMITATION OF
Illegal detainer
ACTIONS
Defamation (Art. 1147)
1. TO RECOVER MOVABLES 5 years Other actions whose periods are
not fixed by law (Art. 1149)
Prescriptive period for action to recover movables
is 8 years from the time the possession is lost.
Prescription starts from the accrual or the day
(Art. 1140)
the action may be brought. (Art. 1150, NCC)
However, the action shall not prosper if it is

brought after 4 years when the possessor has D. INTERRUPTION
already acquired title by ordinary acquisitive Interruption of possession for the purpose of
prescription. prescription (PEN-C)
1. Natural
2. TO RECOVER IMMOVABLES a. Through any cause, possession ceases
for more than 1 year
The period for bringing real actions over
immovables is 30 years unless the possessor b. If 1 year of less – as if no interruption; the
has acquired ownership of the immovable by time elapsed shall be counted in favor of
ordinary acquisitive prescription through prescription
possession of 10 years (meaning with good faith 2. Civil – when there is judicial summons to the
and just title). possessor
Note: Exceptions
If the action is based on fraud, the prescriptive
a) Void for lack of legal solemnities
period is 4 years from discovery of fraud.
b) Plaintiff desists from complaint/allows
3. OTHER ACTION proceedings to lapse
c) Possessor is absolved from complaint
PRESCRIPTIVE PERIODS (ART. 1140-1149)
d) Express or tacit renunciation
None Right of way
Abatement of nuisance 3. Express or tacit recognition by the possessor
8 years Action to recover movables – from of the owner’s right;
time possession is lost (Art. 1140) 4. Possession in wartime.
30 years Real action over an immovable
property – from time possession is
Rules in Computation of Period
lost (Art. 1141)
1. Present possessor may tack his possession
10 years Mortgage action (Art. 1142)
to that of his grantor or predecessor in interest
2. Present possessor presumed to be in
Upon written contract continuous possession even with intervening
Obligations arising from law time unless contrary is proved
Court judgment (Art. 1144) 3. First day excluded, last day included
Reconveyance based on implied

Tacking Period
constructive trust
1. There must be privity between previous and
6 years Oral Contract
present possessor
Quasi Contract (Art. 1145)
2. Possible when there is succession of rights
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3. If character of possession different: by the owners of the lands which suffer or are
predecessor in bad faith / possessor in clearly exposed to suffer injury. (Art. 515)
good faith – use extraordinary Note: The remedies are exclusive.(De Leon,
prescription supra, pp. 294)
Interruption of prescription of actions All the owners who participate in the benefits
1. When they are filed before the court arising from the works referred to in the two
2. When there is a written extrajudicial preceding articles, shall be obliged to contribute
demand by the creditors to the expenses of construction in proportion to
3. When there is any written their respective interests. Those who by their fault
acknowledgement of the debt by the may have caused the damage shall be liable for
debtor (Art. 1155) the expenses. (Art. 517)
————- end of topic ————- 1. Ownership of Waters
Public Dominion
E. SPECIAL TOPICS UNDER PROPERTY
1. Rivers and their natural beds;
LAW
2. Continuous or intermittent waters of
springs and brooks running in their
I. AIRSPACE
natural beds and the beds themselves;
3. Waters rising continuously or
The owner of a parcel of land is the owner of its
intermittently on lands of public dominion;
surface and of everything under it, and he can
4. Lakes and lagoons formed by Nature on
construct thereon any works or make any
public lands, and their beds;
plantations and excavations which he may deem
5. Rain waters running through ravines or
proper, without detriment to servitudes and
sand beds, which are also of public
subject to special laws and ordinances. He
dominion;
cannot complain of the reasonable requirements
6. Subterranean waters on public lands;
of aerial navigation. (Art. 437)
7. Waters found within the zone of
operation of public works, even if
The right of the owner of a parcel of land to
constructed by a contractor;
construct any works or make any plantations and
8. Waters rising continuously or
excavations on his land is subject to:
intermittently on lands belonging to
1. Existing servitudes or easements;
private persons, to the State, to a
2. Special laws;
province, or to a city or a municipality
3. Local ordinances;
from the moment they leave such lands;
4. The reasonable requirements of
9. The waste waters of fountains, sewers
aerial navigation; and
and public establishments.
5. The rights of third persons (De
Leon, supra, pp. 124-125)
Private Ownership
1. Continuous or intermittent waters rising
II. WATERS on lands of private ownership, while
The owner of a piece of land on which there are running through the same;
defensive works to check waters, or on which, 2. Lakes and lagoons, and their beds,
due to a change of their course, it may be formed by Nature on such lands;
necessary to reconstruct such works, shall be 3. Subterranean waters found on the same;
obliged, at his election, either to make the 4. Rain waters falling on said lands, as long
necessary repairs or construction himself, or to as they remain within the boundaries;
permit them to be done, without damage to him,
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5. The beds of flowing waters, continuous from the owners, except as provided by the
or intermittent, formed by rain water, and Mining Law (Art. 509)
those of brooks, crossing lands which are
not of public dominion. The ownership which the proprietor of a piece of
land has over the waters rising thereon does not
2. Use of Public Waters prejudice the rights which the owners of lower
estates may have legally acquired to the use
Acquisition of Public Waters thereof. (Art. 510)
The use of public waters is acquired:
1) By administrative concession; Every owner of a piece of land has the right to
2) By prescription for ten years. construct within his property, reservoirs for rain
waters, provided he causes no damage to the
The extent of the rights and obligations of the use public or to third persons. (Art. 511)
shall be that established, in the first case, by the
terms of the concession, and, in the second case, Subterranean Waters
by the manner and form in which the waters have Only the owner of a piece of land, or another
been used. (Art. 504) person with his permission, may make
explorations thereon for subterranean waters,
Use of Public Waters except as provided by the Mining Law.
Every concession for the use of waters is
understood to be without prejudice to third Explorations for subterranean waters on lands of
persons. (Art. 505) public dominion may be made only with the
permission of the administrative authorities. (Art.
The right to make use of public waters is 512)
extinguished by the lapse of the Concession and
by non-user for five years. (Art. 506) Waters artificially brought forth in accordance
with the Special Law of Waters of August 3, 1866,
3. Private Waters/Subterranean belong to the person who brought them up. (Art.
Waters 513)
When the owner of waters artificially brought to
Use of Waters of Private Ownership the surface abandons them to their natural
The owner of a piece of land on which a spring or course, they shall become of public dominion.
brook rises, be it continuous or intermittent, may (Art. 514)
use its waters while they run through the same,
but after the waters leave the land they shall III. MINERALS
become public, and their use shall be governed Mining claims and rights and other matters
by the Special Law of Waters of August 3, 1866, concerning minerals and mineral lands are
and by the Irrigation Law. (Art. 507) governed by special laws. (Art. 519)
The private ownership of the beds of rain waters IV. TRADEMARK/TRADENAME

does not give a right to make works or A trade-mark or trade-name duly registered in the
constructions which may change their course to proper government bureau or office is owned by
the damage of third persons, or whose and pertains to the person, corporation, or firm
destruction, by the force of floods, may cause registering the same, subject to the provisions of
such damage. (Art. 508) special laws. (Art. 520)
No one may enter private property to search Article 521. The goodwill of a business is
waters or make use of them without permission property, and may be transferred together with
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the right to use the name under which the provided to ensure such utilization. The loan
business is conducted. (Art. 521) value of each lot or unit covered by the mortgage
shall be determined and the buyer thereof, if any,
Trade-marks and trade-names are governed by shall be notified before the release of the loan.
special laws. (Art. 522) The buyer may, at his option, pay his installment
for the lot or unit directly to the mortgagee who
V. SUBDIVISION/CONDOMINIUM BUYER’S shall apply the payments to the corresponding
PROTECTIVE DECREE mortgage indebtedness secured by the particular
lot or unit being paid for, with a view to enabling
National Housing Authority said buyer to obtain title over the lot or unit
It has the exclusive jurisdiction to regulate the real promptly after full payment thereto. (P.D. 957,
estate trade and business in accordance with the Section 18)
provisions of this Decree. (P.D. 957, Section 3)
Advertisements
Registration of Projects Advertisements that may be made by the owner
Owner submits his subdivision plan to the or developer through newspaper, radio,
Authority which shall act upon and approve the television, leaflets, circulars or any other form
same, upon a finding that the plan complies with about the subdivision or the condominium or its
the Subdivision Standards' and Regulations operations or activities must reflect the real facts
enforceable at the time the plan is submitted. and must be presented in such manner that will
not tend to mislead or deceive the public.
Same for condominiums in addition, said
Authority shall act upon and approve the plan with The owner or developer shall answerable and
respect to the building or buildings included in the liable for the facilities, improvements,
condominium project in accordance with the infrastructures or other forms of development
National Building Code (P.D. 957, Section 4) represented or promised in brochures,
advertisements and other sales propaganda
License to Sell disseminated by the owner or developer or his
uch owner or dealer to whom has been issued a agents and the same shall form part of the sales
registration certificate shall not, however, be warranties enforceable against said owner or
authorized to sell any subdivision lot or developer, jointly and severally. Failure to comply
condominium unit in the registered project unless with these warranties shall also be punishable in
he shall have first obtained a license to sell the accordance with the penalties provided for in this
project within two weeks from the registration of Decree. (P.D. 957, Section 19)
such project.
Time of Completion
License shall only be issued if Authorities find the Every owner or developer shall construct and
owner a person of good refute. (P.D. 957, Section provide the facilities, improvements,
5) infrastructures and other forms of development,
including water supply and lighting facilities,
Mortgages which are offered and indicated in the approved
No mortgage on any unit or lot shall be made by subdivision or condominium plans, brochures,
the owner or developer without prior written prospectus, printed matters, letters or in any form
approval of the Authority. Such approval shall not of advertisement, within one year from the date of
be granted unless it is shown that the proceeds of the issuance of the license for the subdivision or
the mortgage loan shall be used for the condominium project or such other period of time
development of the condominium or subdivision as may be fixed by the Authority. (P.D. 957,
project and effective measures have been Section 20)
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of Deeds, shall be collected for the issuance of

Alteration of Plans such title. In the event a mortgage over the lot or
No owner or developer shall change or alter the unit is outstanding at the time of the issuance of
roads, open spaces, infrastructures, facilities for the title to the buyer, the owner or developer shall
public use and/or other form of subdivision redeem the mortgage or the corresponding
development as contained in the approved portion thereof within six months from such
subdivision plan and/or represented in its issuance in order that the title over any fully paid
advertisements, without the permission of the lot or unit may be secured and delivered to the
Authority and the written conformity or consent of buyer in accordance herewith. (P.D. 957, Section
the duly organized homeowners association, or in 25)
the absence of the latter, by the majority of the lot
buyers in the subdivision. (P.D. 957, Section 22) Other Charges: No owner or developer shall levy
upon any lot or buyer a fee for an alleged
Payments community benefit. Fees to finance services for
common comfort, security and sanitation may be
Non-forfeiture of Payments: No installment collected only by a properly organized
payment made by a buyer in a subdivision or homeowners association and only with the
condominium project for the lot or unit he consent of a majority of the lot or unit buyers
contracted to buy shall be forfeited in favor of the actually residing in the subdivision or
owner or developer when the buyer, after due condominium project. (P.D. 957, Section 27)
notice to the owner or developer, desists from
further payment due to the failure of the owner or Accessibility/Homeowners
developer to develop the subdivision or
condominium project according to the approved Public Offices: No owner or developer shall
plans and within the time limit for complying with deny any person free access to any government
the same. Such buyer may, at his option, be office or public establishment located within the
reimbursed the total amount paid including subdivision or which may be reached only by
amortization interests but excluding delinquency passing through the subdivision. (P.D. 957,
interests, with interest thereon at the legal rate. Section 28)
(P.D. 957, Section 23)
Right of Way to Public Road: The owner or
Failure to Pay Installments: The rights of the developer of a subdivision without access to any
buyer in the event of this failure to pay the existing public road or street must secure a right
installments due for reasons other than the failure of way to a public road or street and such right of
of the owner or developer to develop the project way must be developed and maintained
shall be governed by Republic Act No. 6552. according to the requirement of the government
and authorities concerned. (P.D. 957, Section 29)
If the contract was entered prior to enactment of
the said law, defaulting buyer shall be entitled to Homeowners Association: The owner or
the corresponding refund based on the developer of a subdivision project or
installments paid after the effectivity of the law in condominium project shall initiate the
the absence of any provision in the contract to the organization of a homeowners association
contrary. (P.D. 957, Section 24) among the buyers and residents of the projects
for the purpose of promoting and protecting their
Issuance of Title mutual interest and assist in their community
The owner or developer shall deliver the title of development. (P.D. 957, Section 30)
the lot or unit to the buyer upon full payment of
the lot or unit. No fee, except those required for
the registration of the deed of sale in the Registry
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Government and establish backward and forward linkages

among industries in and around the economic
Donation of Roads to Local Government: The zones;
registered owner or developer of the subdivision 4. To stimulate the repatriation of Filipino capital
or condominium project, upon completion of the by providing attractive climate and incentives
development of said project may, at his option, for business activity;
convey by way of donation the roads and open 5. To promote financial and industrial
spaces found within the project to the city or cooperation between the Philippines and
municipality wherein the project is located. Upon industrialized countries through technology-
acceptance of the donation by the city or intensive industries that will modernize the
municipality concerned, no portion of the area country’s industrial sector and improve
donated shall thereafter be converted to any productivity levels by utilizing new
other purpose or purposes unless after hearing, technological and managerial know-how; and
the proposed conversion is approved by the 6. To vest the special economic zones on
Authority. (P.D. 957, Section 31) certain areas thereof with the status of a
separate customs territory within the
Take-over Development: The Authority, may framework of the Constitution and the
take over or cause the development and national sovereignty and territorial integrity of
completion of the subdivision or condominium the Philippines. (The Special Economic Zone
project at the expenses of the owner or Act of 1995, Section 3)
developer, jointly and severally, in cases where
the owner or developer has refused or failed to Decentralization
develop or complete the development of the ECOZONE shall be developed, as much as
project as provided for in this Decree. possible, into a decentralized, self-reliant and
self-sustaining industrial, commercial/trading,
The Authority may, after such take-over, demand, agro-industrial, tourist, banking, financial and
collect and receive from the buyers the investment center with minimum government
installment payments due on the lots, which shall intervention.
be utilized for the development of the subdivision.
(P.D. 957, Section 35) Each ECOZONE shall be provided with
transportation, telecommunications, and other
VII. SPECIAL ECONOMIC ZONES – PEZA facilities needed to generate linkage with
industries and employment opportunities for its
Purposes, Intents and Objectives own inhabitants and those of nearby towns and
1. To establish the legal framework and cities. (The Special Economic Zone Act of 1995,
mechanisms for the integration, coordination, Section 7)
planning and monitoring of special economic
zones, industrial estates / parks, export The ECOZONE shall be managed and operated
processing zones and other economic zones; by the PEZA as separate customs territory. (The
2. To transform selected areas in the country Special Economic Zone Act of 1995, Section 8)
into highly developed agro industrial,
industrial, commercial, tourist, banking, Except for privately-owned, managed or operated
investment, and financial centers, where ECOZONES, each ECOZONE shall be
highly trained workers and efficient services organized, administered, managed and operated
will be available to commercial enterprises; by the ECOZONE executive committee.
3. To promote the flow of investors, both foreign Privately-owned ECOZONES shall retain
and local, into special economic zones which autonomy and independence but shall be
would generate employment opportunities monitored by the PEZA for the implementation of
incentives and operations for adherence to the
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law. (The Special Economic Zone Act of 1995, 9. To monitor and evaluate the development
Section 15) and requirements of entities in subsection (a)
and recommend to the local government
Functions of PEZA units or other appropriate authorities the
1. To operate, administer, manage and develop location, incentives, basic services, utilities
the ECOZONE according to the principles and infrastructure required or to be made
and provisions set forth in this Act; available for said entities. (The Special
2. To register, regulate and supervise the Economic Zone Act of 1995, Section 13)
enterprises in the ECOZONE in an efficient
and decentralized manner; VIII. RECLAMATION – PEA
3. To coordinate with local government units
and exercise general supervision over the Purposes
development, plans, activities and operations 1. To reclaim land, including foreshore and
of the ECOZONES, industrial estates, export submerged areas, by dredging, filling or other
processing zones, free trade zones, and the means, or to acquire reclaimed land;
like; 2. To develop, improve, acquire. administer,
4. In coordination with local government units deal in, subdivide, dispose, lease and sell any
concerned and appropriate agencies, to and all kinds of lands, buildings, estates and
construct, acquire, own, lease, operate and other forms of real property, owned,
maintain on its own or through contract, managed, controlled and/or operated by the
franchise, license, bulk purchase from the government.
private sector and build-operate-transfer 3. To provide for, operate or administer such
scheme or joint venture, adequate facilities services as may be necessary for the
and infrastructure, such as light and power efficient, economical and beneficial utilization
systems, water supply and distribution of the above properties.
systems, telecommunication and
transportation, buildings, structures, Functions of PEA
warehouses, roads, bridges, ports and other 1. To prescribe its by-laws.
facilities for the operation and development of 2. To sue and be sued in its corporate
the ECOZONE; name.
5. To create, operate and/or contract to operate 3. To adopt and use a seal and alter it at its
such agencies and functional units or offices pleasure.
of the authority as it may deem necessary; 4. To purchase, lease, build, alter,
6. To adopt, alter and use a corporate seal; construct, erect, enlarge, occupy,
make contracts, lease, own or otherwise manage, sell, mortgage, dispose of or
dispose of personal or real property; sue and otherwise deal in, buildings of every kind
be sued; and otherwise carry out its duties and character whatsoever, whether
and functions as provided for in this Act; belonging to, or to be acquired by the
7. To coordinate the formulation and Authority.
preparation of the development plans of the 5. To construct, maintain and operate
different entities mentioned above; mains, pipes, machinery, water
8. To coordinate with the National Economic reservoirs, artesian wells as may be
Development Authority (NEDA), the reasonably and necessarily required for
Department of Trade and Industry (DTI), the the transaction of the lawful business of
Department of Science and Technology the Authority.
(DOST), and the local government units and 6. To own or operate railroads, tramways
appropriate government agencies for policy and other kinds of land transportation,
and program formulation and vessels and pipelines, power house,
implementation; and
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hotels, restaurants, terminals, indemnified for any actual damage

warehouses and to manufacture, caused thereby.
produce, purchase, sell, dispose, 11. To issue such regulations as may be
encumber or otherwise deal in, rolling necessary for the proper use by private
stock, equipment, tools and other parties of any or all of the highways,
appliances; to construct and operate in roads, utilities, buildings and/or any of its
connection with its railroad lines toll properties and to impose or collect fees
viaducts, toll bridges and toll tunnels or tolls for their use provided that all
7. To construct, maintain and operate such receipts by the Authority from fees, tolls
systems of sanitary sewers as may be and other charges are automatically
necessary for the proper sanitation of its appropriated for its use.
areas of operation; to charge and collect 12. To organize subsidiary companies to
such sums for construction and rates for undertake any of the activities mentioned
this service as may be determined by the herein. The capital stock of such
Board to be equitable and just; and to subsidiary companies shall be
process waste materials obtained in the subscribed in whole or in part by the
sewers for fertilizing purposes. Authority.
8. To construct, maintain and operate such 13. To enter into, make, perform and carry
storm drains as may be necessary. out contracts of every class and
9. To hold lands of the public domain in description, including loan agreements,
excess of area permitted to private mortgages and other types of security
corporations by statute. arrangements, necessary or incidental to
10. To reclaim lands and to construct work the realization of its purposes with any
across, or otherwise, any stream, person, firm or corporation, private or
watercourse, canal, ditch, flume, street, public, and with any foreign government
avenue, highway or railway of private or or entity.
public ownership, as the location of said 14. To exercise the right of eminent domain
works may require, provided that said in the name of the Republic of the
works be constructed in such a manner Philippines, and in the acquisition of real
not to endanger life or property or in a estate by condemnation proceedings, the
manner not to impair unnecessarily their title to such real estate shall be taken in
usefulness. Every person or entity whose the name of the Republic of the
property is crossed or intersected by said Philippines, and thereupon all such real
works shall not obstruct any such estate shall be entrusted to the Authority
crossings or intersections and shall grant as the agent of the Republic of the
the Authority or its representatives, the Philippines to accomplish the aims and
proper authority for the execution of such purposes of this decree.
work. The Authority is hereby given the 15. To perform such acts and exercise such
right-of way to locate construct and functions as may be necessary for the
maintain such works over the throughout attainment of the purposes and
the lands owned by the Republic of the objectives herein specified.
Philippines or any of its branches and 16. To promulgate such rules and
political subdivisions. The Authority or its regulations as may be necessary to carry
representatives may also enter upon out its purposes and to provide penalties
private property in the lawful for the violation thereof, which penalties
performance or prosecution of its shall be a fine of not more than five
business and purposes: provided that the hundred pesos or imprisonment for not
owner of such private property shall be more than six months, or both such fine
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and imprisonment in the discretion of the assets and liabilities to the apropriate agencies of
court. the National Government. (EO 380, Section 3)
17. To perform such other functions as may IX. IPRA LAW
be provided by law.
Concept of Ancestral Domain
Additional Powers Ancestral lands/domains shall include such
1. Provide advice and assistance to the concepts of territories which cover not only the
President in the formulation, implementation, physical environment but the total environment
and evaluation of plans or policies relative to including the spiritual and cultural bonds to the
all reclamation projects as would maximize areas which the ICCs/IPs possess, occupy and
their contribution to national development; use and to which they have claims of ownership.
2. Issue such rules and regulations including the (IPRA Law, Section 4)
identification of such requirements as may be
necessary for the evaluation and sound Indigenous Concept: Ancestral domains and all
administration of all reclamation projects; resources found therein shall serve as the
3. Establish and implement a system of material bases of their cultural integrity. It
coordination with all concerned government generally holds that ancestral domains are the
agencies including monitoring of the progress ICC's/IP's private but community property which
of all reclamation projects; and belongs to all generations and therefore cannot
4. Perform such other functions as may be be sold, disposed or destroyed.
directed by the President. (EO 525, Section It likewise covers sustainable traditional resource
2) rights. (IPRA Law, Section 5)
All lands reclaimed by PEA shall belong to or be Rights to Ancestral Domains

owned by the PEA which shall be responsible for 1. Ownership
its administration, development, utilization or 2. Develop Lands and Natural Resources
disposition in accordance with the provisions of 3. Stay in the Territories
Presidential Decree No. 1084. Any and all income 4. In Case of Displacement
that the PEA may derive from the sale, lease or 5. Regulate Entry of Migrants
use of reclaimed lands shall be used in 6. Safe and Clean Air and Water
accordance with the provisions of Presidential 7. Claim Parts of Reservations
Decree No. 1084. (EO 525, Section 3) 8. Resolve Conflict (IPRA Law, Section 7)
Transformation of PEA Rights to Ancestral Lands

The PEA is hereby transformed into the 1. Transfer land/property
Philippine Reclamation Authority (PRA). The 2. Redemption (IPRA Law, Section 8)
PRA shall perform all the powers and functions of
the PEA relating to reclamation activities. The Responsibilities of ICCs/IPs to their
remaining non-reclamation enterprises, including Ancestral Domains
the management of the PEA-Tollway Corporation 1. Maintain Ecological Balance
(PEA-TC), are hereby transferred to the National 2. Restore Denuded Areas
Development Company. (EO 380, Section 1) 3. Observe Laws (IPRA Law, Section 9)
Transfer of Assets/Liabilities Delineation

With the exception of the assets and liabilities of Self-delineation shall be the guiding principle in
the PEA on its reclamation functions which shall the identification and delineation of ancestral
be retained with the PRA, all its other assets and domains. As such, the ICCs/IPs concerned shall
liabilities are hereby transferred without cost to have a decisive role in all the activities pertinent
the DOF. The DOF shall then transfer such
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thereto. The Sworn Statement of the Elders as to

the scope of the territories and agreements/pacts
made with neighboring ICCs/IPs, if any, will be
essential to the determination of these traditional
territories. The Government shall take the
necessary steps to identify lands which the
ICCs/IPs concerned traditionally occupy and
guarantee effective protection of their rights of
ownership and possession thereto. Measures
shall be taken in appropriate cases to safeguard
the right of the ICCs/IPs concerned to land which
may no longer be exclusively occupied by them,
but to which they have traditionally had access for
their subsistence and traditional activities,
particularly of ICCs/IPs who are still nomadic
and/or shifting cultivators. (IPRA Law, Section 51)
Page 156 of 474

SUCCESSION
Civil Law
ATENEO CENTRAL
A. GENERAL PROVISIONS
SUCCESSION I. DEFINITION
TOPIC OUTLINE UNDER THE SYLLABUS Succession – mode of acquisition by virtue of

which the property, rights and obligations to the
A. GENERAL PROVISIONS extent of the value of the inheritance, of a person
I. Definition are transmitted through his death to another or
II. Succession occurs at the others either by his will or by operation of law.
moment of death (Art. 774)
III. Kinds of Successors
Kinds of succession
B. TESTAMENTARY SUCCESSION (a) Compulsory — succession to the legitime
I. Wills (this prevails over all kinds)
II. Institution of heirs (b) Testate — succession by will
III. Substitution of heirs
(c) Intestate — succession by operation of law;
IV. Conditional testamentary
occurs in the absence of a valid will
dispositions and testamentary
dispositions with a term (d) Mixed — a combination of testate and
V. Legitime intestate succession. (Balane, Jottings and
Jurisprudence in Civil Law, p. 29, 2016)
C. LEGAL OR INTESTATE SUCCESSION
I. General provisions Elements of Succession
II. Order of intestate succession
Subjective Element
D. PROVISIONS COMMON TO TESTATE (i) Decedent — person whose property is
AND INTESTATE SUCCESSION transmitted through succession (Art. 775);
I. Right of accretion also called testator in testate succession.
II. Capacity to succeed by will or (ii) Successors/Heirs – those who are called to
intestacy succession to the whole or to an aliquot
III. Acceptance and repudiation of portion of the inheritance either by will or by
the inheritance operation on law. (Art. 782)
IV. Collation
V. Partition and distribution of
estate II. SUCCESSION OCCURS AT THE MOMENT
OF DEATH
(a) Causal Element

Death of the Person – The rights to the
succession are transmitted from the moment of
the death of the decedent. (Art. 777)
Thus, the capacity of the heir is determined as of

the time the decedent died (Art. 1034); the
legitime is to be computed as of the same
moment (Art. 908), and so is the inofficiousness
of the donation inter vivos (Art. 771). Similarly, the
legacies of credit and remission are valid only in
the amount due and outstanding at the death of
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the testator (Art. 935), and the fruits accruing after Succession Distinguished From Inheritance
that are deemed to pertain to the legatee. (Art. Succession refers to the legal mode by which
948; Calalang-Parulan v. Calalang-Garcia, G.R. inheritance is transmitted to the persons entitled
No. 184148, 2014) to it; while inheritance refers to the universality
or entirety of the property, rights and obligations
of a person who died.
In addition, the law in force at the time of the
decedent’s death will determine who the heirs
should be [Uson v. Del Rosario, 92 Phil. 530 III. KINDS OF SUCCESSORS
(1953)] and ownership passes to the heir at the 1. Compulsory – those who succeed by
very moment of death, therefore, from that force of law and are entitled to a legitime,
moment: (a) the heir acquires the right to dispose which is in proportion to the entire
of his share [De Borja v. Vda. De Borja, 46 SCRA disposable estate and is predetermined by
577 (1972)] and; (b) the heir’s interest in the law, of which they cannot be deprived by
estate may be attached for purposes of execution the testator, except through a valid
of his creditor [Reganon v. Imperial, 22 SCRA 80 disinheritance
(1968)] 2. Voluntary or Testamentary – those who
are instituted by the testator in his/her will
to succeed to the free portion (that which
However, a person may be presumed dead for
the testator can freely dispose)
the purpose of opening his succession. (see rules
(a) Devisees – persons to whom gifts of
on presumptive death, Art. 390-391) In this case,
real property are given by virtue of a
succession is only of provisional character
will (Art. 782)
because there is always the chance that the
(b) Legatees – persons to whom gifts of
absentee may be alive.
personal property are respectively
given by virtue of a will (Art. 782)
Future inheritance cannot be the subject of a 3. Legal or Intestate – those who succeed
contract of sale because the seller owns no to the estate of the decedent who dies
inheritance while his predecessor lives. (Art. 1347 without a valid will, or one who does not
in relation to Art. 777) leave a will, or to the portion of such estate
not disposed of by will
(a) Objective Element (Art. 776) 4. Mixed – is that effected partly by will and
partly by operation of law (Art. 780)
Inheritance – is the subject matter of succession
and includes all the transmissible property, rights,
NOTE: The distinction between heirs and
and obligations of a person, which are not
devisees or legatees is important in these cases:
extinguished by his death.
(a) Preterition (Art. 854)
(b) Imperfect/Ineffective disinheritance
NOTE: If the right or obligation is strictly personal,
it is not transmissible, hence, it is extinguished by (c) After-acquired properties
death. (Balane, supra, p.2) (d) Acceptance or non-repudiation of
successional rights
Determination of “Non-Transmissibility” of
Obligation: ————- end of topic ————-
1. Nature of the Obligation- must be personal
obligation (e.g., to sing, dance, or obligations
to do)
2. Intransmissibility by stipulation of the parties;
3. Intransmissible by law
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B. TESTAMENTARY SUCCESSION leave in general to specified classes

or causes; and
I. WILLS b. Designation of the persons,
institutions or establishments to
Concept of a Will which such property or sums are to
It is an act whereby a person is permitted with the be given or applied.
formalities prescribed by law to control to a
certain degree the disposition of his estate to take 3. Free and Voluntary Act — any vice affecting
effect after his death. (Art. 783) testamentary freedom can cause the
disallowance of the will (Art. 839)
NOTE: A will disposes only the free portion of the
estate. (Art. 886; Balane, supra, p. 38) 4. Formal and Solemn Act — the formalities
are essential for validity (Art. 804-814; 820-
Characteristics of a Will 821) and will depend if what is executed is
1. Unilateral — does not need the approval of an attested or holographic will.
any other person (implied in Art. 783)
5. Act Mortis Causa — takes effect only after
2. Strictly Personal Act (Arts. 784-785) the death of the testator (Art. 783)
• The making of a will is strictly a personal

6. Revocable or Ambulatory—Revocable at
act; it cannot be left to the discretion of a
any time during the testator’s lifetime (Art.
third person, or accomplished through
828)
the instrumentality of an agent or
attorney (Art. 784)
7. Individual Act — two or more persons
• The following acts or stipulations may not cannot make a single joint will, either for their
be delegated to third persons: reciprocal benefit or for another person. (Art.
a. Designation of heirs, devisees, or 818)
legatees; (Balane, supra, p.41)
b. Duration or efficacy of the However, separate or individually executed
designation of heirs, devisees or wills, although containing reciprocal
legatees; provisions (mutual wills) are not prohibited,
c. Determination of the portions which subject to the rules on disposicion captatoria.
the heirs, devises, or legatees are to (Art. 875)
take, when referred to by name; and
d. Determination of whether or not the 8. Executed with animus testandi – testator
testamentary disposition is to be knowledgeable he wants to dispose of his
operative (Arts.785 and 787) property to take effect after his death. (Art.
783)
NOTE: This is entirely different from
the acceptance or renunciation by 9. Executed with testamentary capacity –
the heir as beneficiary. The heir has see below (Art. 796-803)
the freedom to accept or renounce
the testamentary benefit. 10. Dispositive of property (Art. 783)
• Acts which may be delegated to third
persons (Art. 786): 11. Permitted/Statutory – Purely statutory such
a. Distribution of specific property or that without a law authorizing it, it is not
sums of money that the testator may available.
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Interpretation of Wills
If a testamentary disposition admits of different Oral declarations of the testator as to his intention
interpretations, in case of doubt that interpretation cannot be used in resolving either latent or patent
by which the disposition is to be operative shall ambiguities. (Balane, supra, p. 46) Why? A dead
be preferred. (Art. 788) man cannot refute a tale.
The words of a will are to be interpreted in a Interpretation By General Meaning

manner which will give effect to every expression, The words of a will are to be taken in their
rather than one which will render any of the ordinary and grammatical sense, unless a clear
expressions inoperative. The interpretation which intention to use them in another sense can be
will prevent intestacy shall be preferred. (Art. 791) gathered, and that other can be ascertained. (Art.
790, par. 1)
Underlying Principle: Testacy is always
preferred than intestacy, because the former is Technical words in a will are to be taken in their
the express will of the decedent whereas the technical sense, unless the context clearly
latter is only his implied will. (Balane, supra, p. 45) indicates a contrary intention, or unless it
satisfactorily appears that the will was drawn
Animus Testandi - The testator’s intent (animus solely by the testator, and that he was
testandi), as well as giving effect to such intent, is unacquainted with such technical sense. (Art.
primordial. 790)
Exception: when the intention of the testator is Principle of Severability

contrary to law, morals or public policy. The invalidity of one of several dispositions
contained in a will does not result in the invalidity
In case of doubt, the interpretation by which the of the other dispositions, unless it is to be
disposition is to be operative or will sustain and presumed that the testator would not have made
uphold the will in all its parts shall be adopted, such other dispositions if the first invalid
provided that it can be done consistently with the disposition had not been made. (Art. 792)
established rules of law.
Property Acquired After the Execution of the
Kinds of Ambiguities In Wills (Art. 789) Will
a. Latent or Intrinsic Ambiguities Property acquired during the period between the
– those which do not appear on the face of execution of the will and the death of the testator
the will is NOT included among the property disposed of.
– may be resolved through evidence aliunde (Art. 793)
or those outside of the will, except oral
declarations of the testator. Exception: When a contrary intention expressly
b. Patent or Extrinsic Ambiguities appears on the will. (Art. 793)
– those which appear on the face of the will
itself Interpretation Of Legacy and Devise
– must be resolved only by provisions General Rule: In a legacy or devise, the testator
contained in the will itself. gives exactly the interest he has in the thing. (Art.
794)
In resolving ambiguities in wills, any admissible
and relevant evidence may be used to determine Exceptions:
the intention of the testator, except for patent or 1. It is clear in the will that he intended to convey
extrinsic ambiguities, for which the words of the a less interest. (Art. 794)
will are to be resorted to.
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2. The testator expressly declares that he GOVERN For Filipinos

conveys a part greater than his interest in the ING LAW and
thing. (Art. 929) AS TO Foreigners:
PLACE (Art. 815-817)
NOTE: In case the testator conveys a part greater
than his interest in the thing, and if the person a. Citizenship
owning such interest in excess of that of the b. Domicile
testator does not wish to part with it, the solution c. Residence
in Art. 931 can be applied; the legatee or devisee d. Place of
shall be entitled only to the just value of the Execution
interest that should have been acquired. (Balane, e. Philippine
supra, p. 49) Law
Requirements for Validity of Wills Rules of Formal Validity of Wills

1. Extrinsic / Formal Validity – refers to the Every testator, whether Filipino or alien, wherever
requirement of form and determined in he may be, has five choices as to what law to
probate proceedings; it includes: follow for the form of his/her will:
(a) Formalities provided by law (a) Law of his citizenship (Art. 15, 816, 817)
(b) Law of the place of execution (Art. 17)
(b) Testamentary Capacity
(c) Law of his domicile (Art. 816)
2. Intrinsic / Substantive Validity – refers to (d) Law of his residence (Art. 816)
the substance of the provisions and generally (e) Philippine law (Art. 15, 816, 817)
determined after probate (Balane, supra, p.
50)
TESTAMENTARY CAPACITY AND INTENT
EXTRINSIC INTRINSIC It is the ability as well as the legal capacity to

VALIDITY VALIDITY make a will. It must be present at the time of the
GOVERN For Filipinos For Filipinos: execution of the will. (Balane, supra, p. 52)
ING LAW and Law at the
AS TO Foreigners: time of death Who are capacitated to make a will (NES)
TIME Law at the time (Art. 16 & 1. Natural person not expressly prohibited by
of execution 2263) law to make a will. (Art. 796)
(Art. 795) 2. Eighteen (18) years old and above (Art. 797).
For 3. Of Sound mind, at the time of its execution
Foreigners: (Art. 798)
National law All of these must be present at the time of the
(Art. 16, execution of the will. (in relation with Art. 801)
par.2; Art.
1039) Soundness of Mind
To be of sound mind, it is not necessary that the
testator be in full possession of all his reasoning
faculties, or that his mind be wholly unbroken,
unimpaired, or unshattered by disease, injury or
other cause. (Art. 799)
A testator is considered of sound mind if at the

time of making of the will he knows the following:
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1. Nature of the estate to be disposed of - The Burden of Proof of Soundness of Mind

testator should have a fairly accurate 1. The person who opposes probate of the will
knowledge of what he owns. (Balane, supra, has the burden of proof that the testator was
p. 53) not of sound mind. (Art. 800).
2. The person who maintains the validity of the
2. Proper objects of his bounty - The testator will must prove that the testator executed it
should know under ordinary circumstances, during a lucid interval, when the testator was
who his relatives in the most proximate publicly known to be insane, one month or
degrees, are. (Balane, supra, p. 53) less before making his will. (Art. 800)
3. Character of the testamentary act (Art. 799) - Kinds of Wills

The testator should know the legal nature of a (a) Notarial / Attested – an ordinary will
will. He or she must know that he is executing acknowledged before a notary public by the
a document that disposes of his properties testator and the instrumental witnesses (Art.
gratuitously, which would take effect upon his 805-806)
death. (Balane, supra, p. 53-54) (b) Holographic – a will totally handwritten,
dated, and signed by the testator alone. (Art.
Legal Presumption in Favor Of Soundness Of 810)
Mind (Art. 800)
General Rule: The law presumes that every Formalities Common To Notarial And
person is of sound mind, in the absence of proof Holographic Wills:
to the contrary. Forgetfulness, even if proven, is 1. Every will must be in writing (Art. 804); and
not proof of unsoundness of mind. (Baltazar v. • Nuncupative (Oral) Wills are not allowed
Laxa, G.R. No. 17449, 2012) except in the Muslim Personal Laws of
the Philippines
Exceptions: 2. Executed in a language or dialect known to
(a) When the testator, one month or less before the testator (Art. 804)
the execution of the will, was publicly known
to be insane (Art. 800); In Writing
(b) When the testator executed the will after Any form of writing is allowed, provided
being placed under guardianship or ordered a. Must be understood by others, and
committed to a mental institution (under b. Must be capable of being preserved and with
Rules 93 and 101, respectively of the Rules permanence. Reason: generally, wills are
of Court), and before said order has been probated after the death of the testator, so it
lifted. (Torres and Lopez de Bueno vs. Lopez, must have the character of permanence and
G.R. No. 24569, 1926) must be understood by others.
NOTE: Supervening capacity or incapacity does In Language or Dialect known to Testator

not invalidate an effective will, nor is the will of an It must be understood by testator, but it is not
incapable validated by supervening capacity (Art. required that the will specifically state that it is in
801). a language or dialect known to the testator.
(Abada v. Abaja, G.R. No. 147145, 2005) This is
Mentally aberrant medically does not equate to merely evidentiary and should be proven during
testamentary incapacity. [Galvez v. Galvez, 26 probate.
Phil 243 (1913)]
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Presumption of Compliance with the with the requirement of the law. There is no basis
Language Requirement for limiting the validity of thumbprints only to
The presumption that testator knows and cases of illness or infirmity. (De Gala v. Gonzales
understands language or dialect applies only if: G.R. No. L-30289, 1929; Dolar v. Diancin, G.R.
1. The will was executed in a language No. L-33365, 1930; Lopez v. Liboro, G.R. No. L-
generally spoken in the place of execution; 1787, 1948)
and
2. The testator is a native or resident of such However, a sign of the cross does not comply with
locality. (Abangan v. Abangan, G.R. No. L- the statutory requirement of signature, unless it is
13431, 1919) the testator’s usual manner of signature or one of
his usual styles of signing. The cross does not
have the trustworthiness of a thumbmark. (Garcia
NOTARIAL/ATTESTED WILLS
v. Lacuesta, G.R. No. L-4067, 1951)
Requirements for Notarial Wills (Art. 805-806)
Agent of the Testator Subscribing under his
1. Subscribed by the testator or his agent in his Express Direction
presence and by his express direction at the The essential thing for validity is that the agent
end thereof, in the presence of the witnesses; wrote the testator’s name. It would be a good
2. Attested and subscribed by at least three thing, but not required, for the agent to indicate
credible witnesses in the presence of the the fact of agency or authority. (Barut v.
testator and of one another; Cabacungan, G.R. No. L-6285, 1912)
3. The testator or his agent, must sign every
page, except the last, on the left margin in the Signed at the End
presence of the witnesses; Signing before the end invalidates not only the
4. The witnesses must sign every page, except dispositions that come after, but the entire will,
the last, on the left margin in the presence of because the one of the statutory requirements
the testator and of one another; would not have been complied with. (Azuela v.
5. The witnesses must sign every page, except Court of Appeals, G.R. No. 122880, 2006)
the last, on the left margin in the presence of
the testator and of one another; Two Kinds of End
6. All pages must be numbered correlatively in 1. Physical end – where the writing stops
letters on the upper part of each page; 2. Logical end – where the last testamentary
7. Attestation clause stating: disposition ends.
a. The number of pages of the will; Signing in either end is permissible. (Balane,
b. The fact that the testator or his agent supra)
under his express direction signed
the will and every page thereof, in
Signed in the Presence of Witnesses
the presence of the witnesses;
Actual seeing is not required, but the ability to see
c. The fact that the witnesses
each other by merely casting their eyes in the
witnessed and signed the will and
proper direction. (Nera v. Rimando, G.R. No. L-
every page thereof in the presence
5971, 1911)
of the testator and one another;
8. Acknowledgement before a notary public
Acts of Witnesses
• Attesting – act of witnessing
Subscribed by the Testator or his Agent in his
• Subscribing – act of signing their names in
Presence and by his Express Direction at the
the proper places of the will (Balane, supra,
End thereof, in the Presence of the Witnesses
p. 81 citing Taboada v. Rosa, G.R. No. L-
The testator’s thumbprint is always a valid and
sufficient signature for the purpose of complying
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36033, 1982; Caneda v. CA, G.R. No. unsigned attestation clause cannot be considered
103554, 1993) an act of the witnesses, since the omission of
The witnesses need not sign at the end of the will. their signatures at the bottom negatives their
It is sufficient that they signed the will even participation. If an attestation clause not signed at
marginally. (Taboada v. Rosal, G.R. No. L-36033, the bottom be admitted, it would be easy to add
1982) such clause to a will on a subsequent occasion
and in the absence of the testator and any or all
Signing on Every Page, Except the Last witnesses. (Cagro v. Cagro, G.R. No. L-5826,
Signing on every page of the will is mandatory, 1953; Azuela v. Court of Appeals, G.R. No.
while the place of signing i.e. left margin is merely 122880, 2006)
directory. The signature can be affixed anywhere
on the page. (Balane, supra) Attestation Clause Separate from
Acknowledgement Clause
When No Marginal Signatures are Required An attestation clause is mandatory for attested
If the entire document consists of only two sheets, wills. It is separate and distinct from an
the first containing the will and the second, the acknowledgement clause. These two cannot be
attestation clause, there need not be any merged. (Echavez v. Dozen Construction, G.R.
marginal signatures at all. (Abangan v. Abangan, No. 192916, 2010)
G.R. No. L-13431, 1919)
Acknowledgment
Order of Signing The act of one who has executed a deed in going
The order of signing is immaterial, provided before some competent officer (i.e., notary public)
everything is done in a single transaction. or court and declaring it to be his act or deed. It
However, if the affixation of the signatures is done involves an extra step undertaken whereby the
in several transactions, then it is required that the signatory actually declares to the notary public
testator affix his signature ahead of the that the same is his or her own free act and deed.
witnesses. (Balane, supra, p. 86-87) (Lee v. Tambago, A.C. No. 5281, 2008)
Pagination Two-Fold Purpose of the Acknowledgement

The pagination by means of a conventional 1. To safeguard the testator’s wishes long after
system, a generally accepted or known his demise; and
sequential order, is required, while the pagination 2. To assure that his estate is administered in
in letters on the upper part of each page is merely the manner that he intends it to be done (Lee
directory. (Balane, supra) v. Tambago, A.C. No. 5281, 2008)
Attestation Clause Need Not be Signed by the

Certification Need Not be Signed in the
Testator
Presence of the Testator and Witnesses
The Attestation Clause is the affair of the
Whether or not the notary signed the certification
witnesses, therefore, it need not be signed by the
of acknowledgment in the presence of the
testator. (Fernandez v. Vergel de Dios, G.R. No.
testator and the witnesses, does not affect the
L-21151, 1924)
validity of the will. All that must be done is that the
testator and the witnesses avow to the certifying
Witnesses Must Sign at the End of Attestation
officer the authenticity of their signatures and the
Clause
voluntariness of their actions in executing the
The attestation clause is a memorandum of the
testamentary disposition. (Javellana v. Ledesma,
facts attending the execution of the will required
G.R. No. L-7179, 1955)
by law to be made by the attesting witnesses, and
it must necessarily bear their signatures. An
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Requirements for the Notary Public three instrumental witnesses and the notary
1. Must be duly commissioned for the locality public. The court stated: “So when an
where the acknowledgment is made interpretation already given assures such ends,
(Guerrero v. Bihis, G.R. No. 174144, 2007) any other interpretation whatsoever, that adds
2. Must not be one of the three attesting nothing but demands more requisites entirely
witnesses (Cruz v. Villasor, G.R. No. L- unnecessary, useless and frustrative of the
32213, 1973) testator's will, must be disregarded.“
NOTE: There is no requirement that an attested Rule on Substantial Compliance (Art. 809)
will should be dated. Consequently, a variance Article 809 is Applicable Only to the
between the indicated dates of execution and Attestation Clause
acknowledgement does not in itself invalidate the 1. In the absence of
will. (Ortega v. Valmonte, G.R. No. 157451, 2005) a. Bad faith
b. Forgery
Special Requirements for Handicapped c. Fraud
Testators d. Undue and improper pressure and
influence
Deaf/Deaf-Mute Testator (Art. 807) 2. Defects and imperfections in the form of
1. If able to read — he must read the will attestation or in the language used therein
personally 3. Shall not render the will invalid
2. If unable to read — he must designate two 4. If it is proved that the will was in fact executed
persons to read the will and communicate to and attested in substantial compliance with
him, in some practicable manner, its all the requirements of Art. 805.
contents.
However, only omissions in the attestation clause
Blind Testator (Art. 808) which can be supplied by an examination of the
The will shall be read to him twice, once by one will itself or by intrinsic evidence will not be fatal
of the subscribing witnesses and another by the to the validity of the will. The omissions in the
notary public before whom the will is attestation clause which can only be proved by
acknowledged. extrinsic evidence would result in the invalidation
of the attestation clause and ultimately of the will
The rationale behind the requirement of reading itself. (Caneda v. CA, G.R. No. L-18076, 1962)
the will to the testator if he is blind or incapable of
reading the will himself (as when he is illiterate), However, the attestation clause indisputably
is to make the provisions of the will known to him, omitted to mention the number of pages
so that he may be able to object if they are not in comprising the will. Nevertheless, the
accordance with his wishes. (Garcia v. Vasquez, acknowledgment portion of the will supplied the
G.R. No. L-26615, 1970) omission by stating that the will has five pages
and was therefore deemed substantial
The special requirements for handicapped compliance by the Supreme Court under Article
testators are mandatory; non-compliance with 809 (Tanchanco v. Santos, G.R. No. 204793)
Articles 807 or 808 will result in nullity and denial
of probate. (Balane, supra) However, in the case HOLOGRAPHIC WILLS
of Alvarado v. Gaviola, Jr., 226 SCRA 348 (1993),
the Supreme Court stated that substantial Requirements for Holographic Wills (EHAND-
compliance is sufficient as when the lawyer who DS)
drafted the will read the will aloud before the
A holographic will is valid if it is:
testator (who was suffering from glaucoma), the
1. Entirely HANDwritten by the testator
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2. Dated by him the full customary signature of the testator should

3. Signed by him (Art. 810; Balane, supra, p. authenticate all alterations, cancellations and
130) erasures. If not, general rule is that the will is valid
but the alterations, cancellations and erasures
Date will not be valid. (Velasco v. Lopez, G.R. No. 905,
The date of the will should include the day, month, 1903).
and year of its execution. (Roxas v. De Jesus,
G.R. No. L-38338, 1985) Exceptions:
1. Where there is only one testamentary
The law does not specify a particular location disposition and the unauthenticated
where the date should be placed in the will. The alteration affects the sole disposition (e.g.,
only requirements are that the date be in the will one heir substituted by another), then the
itself and executed in the hand of the testator. whole will is void (Kalaw v. Relova, G.R. No.
(Labrador v. Court of Appeals, G.R. Nos. 83843- 40207, 1994)
44, 1990) 2. Where the alteration or erasure is on the
signature and the date, the whole essence is
Signed by the Testator affected making the whole will void.
The testator must sign at the end of testamentary (Spouses Alejo v. CA, G.R. No. 106720,
dispositions. Otherwise, the dispositions written 1994)
below his signature, which are not subsequently
dated and signed by him will be invalidated. (Art.
ALTERATIONS MADE BY A THIRD
812)
PERSON
Without the The insertion, cancellation,
Forms of Holographic Wills consent of the erasure or alteration is not
A holographic will is subject to no other form, and testator considered as written.
may be made in or out of the Philippines, and With the The will is void for not being
need not be witnessed. (Art. 810) consent of the totally in the handwriting of
testator the testator (Art. 810)
Additional Dispositions in a Holographic Will
Additional dispositions in a holographic will must Prohibition on Joint Wills
be dated and signed by the testator. (Art. 812) Two or more persons cannot make a will jointly,
The signature and the date may be done in the or in the same instrument, either for their
following manner: reciprocal benefit or for the benefit of a third
1. Signature and date after each additional person. (Art. 818)
disposition, or
2. Each additional disposition signed and Joint Will – One document which constitutes the
undated, but the last disposition signed and wills of two or more individuals. These kinds of
dated. (Art. .813) wills are void. (Balane, supra)
If there are several documents, each serving as

What if additional dispositions are dated but
one independent will, even if they are written on
not signed? Only the last disposition that is
the same sheet, they are not joint wills. (Balane,
dated and signed will be valid.
supra)
Insertion, Cancellation, Erasure or Alteration

NOTE: Joint wills executed by Filipinos in a
in a Holographic Will (Art. 813)
foreign country shall not be valid in the
General Rule: If made by the testator Philippines, even though authorized by the laws
contemporaneously with the making of the will, of the country where they may have been
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executed. (Art. 819) However, reciprocal wills of CODICILS AND INCORPORATION BY

foreign nationals jointly probated in another REFERENCE
jurisdiction, can be admitted for reprobate in the
Philippines since the prohibition is in the making Codicil – A supplement or addition to a will, made
of joint wills, and not on the joint probate of wills. after the execution of a will and annexed, to be
(Vda. De Perez v. Tolete, G.R. No. 76714, 1994) taken as a part of the will. It explains, adds, or
alters, any disposition made in the original will.
Reasons of Public Policy Against Joint Wills (Art. 825)
1. Limitation on the modes of revocation. (i.e.
one of the testators would not be able to Codicils Must be Executed as in Wills
destroy the document without also revoking it In order that a codicil may be effective, it shall be
as the will of the other testator, or in any executed as in the case of a will. (Art. 826)
event, as to the latter, the problem of
unauthorized destruction would come in) However, the codicil does not need to conform to
(Balane, supra, p. 171) the form of the will to which it refers. An attested
2. Diminution of testamentary secrecy; (Balane, will may have a holographic codicil, or vice versa.
supra) (Balane, supra)
3. Danger of undue influence (Dacanay v.
Florendo, G.R. No. L-2071, 1950) Requirements for Incorporation by Reference
4. Danger of one testator killing the other If a will refers to a document or paper, such
(Dacanay v. Florendo, G.R. No. L-2071, document or paper will be considered a part of
1950) the will if the following requisites concur: (EPPS)
1. The document or paper referred to in the will
WITNESSES TO WILLS must be in Existence at the time of the
execution of the will;
Qualifications: 2. The will must clearly describe and identify the
1. Of sound mind (Art. 820) same, stating among other things the number
2. At least 18 years of age (Art. 820) of Pages thereof;
3. Not blind, deaf, or dumb (Art. 820) 3. It must be identified by clear and satisfactory
4. Able to read and write (Art. 820) Proof as the document or paper referred to
5. Domiciled in the Philippines (Art. 821) therein; and
6. Must not have been convicted of falsification 4. It must be Signed by the testator and the
of a document, perjury, or false testimony witnesses on each and every page except in
(Art. 821) case of voluminous books of account or
inventories. (Art. 827)
The above qualifications must be possessed at
the time of attesting the will. Their subsequent The documents, inventories, books of accounts,
incompetence shall not prevent the allowance of documents of titles, and other papers of similar
the will. (Art. 822) nature should under no circumstances make
testamentary dispositions, for then the formal
Creditors as Witnesses requirements for wills would be circumvented.
Creditors can be witnesses to his or her debtor’s (Balane, supra)
will. A mere charge on the estate of the testator
for the payment of debts due at the time of death NOTE: Holographic wills cannot incorporate
does not prevent the creditor from being a documents by reference unless the incorporated
competent witness. (Art. 824) paper is also entirely in the handwriting of the
testator. In case of notarial wills, it is sufficient
that the signatures of the testator and witnesses
on every page of the incorporated document
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except in case of voluminous books of account or subsequently, testator brings action against
inventories. (Balane, supra, p. 183) debtor (Art. 936)
d. Substantial transformation of specific thing
REVOCATION OF WILLS AND bequeathed, or sale or disposition of property
TESTAMENTARY DISPOSITIONS bequeathed or devised before the death of
A will may be revoked by the testator at any time the testator (Art. 957)
before his death. Any waiver or restriction of this e. When heir, devisee or legatee commits any
right is void. (Art. 828) of the acts of unworthiness (Art. 1032)
f. Annulled or void ab initio marriages revoke
Rules for Revocation (Art. 829) testamentary dispositions made by one
1. If revocation made in the Philippines – spouse in favor of the other (Family Code,
Philippine law Art. 50)
2. If revocation is made outside the Philippines g. If both spouses of the subsequent marriage
and testator is not domiciled in the acted in bad faith, said marriage shall be void
Philippines: ab initio and testamentary dispositions made
a. Law of the place where the will was by one in favor of the other are revoked by
made, or operation of law. (Family Code, Art. 44)
b. Law of the place where the testator was
domiciled at the time of revocation Revocation by Some Will, Codicil, or Other
3. If revocation is made outside the Philippines Writing Executed as Provided in case of Wills
and testator is domiciled in the Philippines Express – When there is a revocatory clause
a. Philippine law expressly revoking the previous will or a part
b. Law of the place of revocation thereof. (Balane, supra, p. 193)
c. Law of the place where the will was made
(Balane, supra, p. 184) Implied – When the provisions thereof are
partially or entirely inconsistent with those of the
Modes of Revoking a Will (Art. 830) previous wills. (Art. 831)
No will shall be revoked except in the following
cases: (LSPD) NOTE: Subsequent wills which impliedly revoke
1. By implication of Law the previous ones, annul only such dispositions in
• May be total or partial the prior wills as are inconsistent with or contrary
2. By Subsequent will – some will, codicil, or to those contained in the later wills. (Art. 831)
other writing executed as provided in case of
wills Requisites for a Revocation by Subsequent
3. By Physical Destruction – by burning, tearing, Instrument
cancelling, or obliterating the will with 1. The subsequent instrument must comply with
intention of revoking it, by the testator the formal requirements of a will. (Molo v.
himself, or by some other person in his Molo, G.R. No. L-2538, 1951)
presence, and by his express direction. 2. The testator must possess testamentary
capacity. (Balane, supra, p. 185)
Instances of Revocation by Operation of Law: 3. The subsequent instrument must either
a. Decree of legal separation, nullity or contain an express revocatory clause or be
annulment of marriage for dispositions in incompatible with the prior will. (Art. 831)
favor of the guilty spouse (Family Code, Art. The subsequent will must be probated in order to
63, par. 4) take effect. (Molo v. Molo, G.R. No. L-2538, 1951)
b. Preterition (Art. 854) Requisites for a Valid Revocation by Physical
c. Legacy or credit against third person or Destruction (Art. 830 (3); Balane, supra, p. 186-
remission of debt was provided in will and 187)
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Testamentary capacity at the time of performing subsequent will. (Molo v. Molo, G.R. No. L-2538,
the act of destruction; 1951)
1. Intent to revoke (animus revocandi);
2. Actual physical act of destruction, even In the doctrine of dependent relative revocation,
partial as long as it is not due to desistance the first will may be admitted to probate and given
(corpus); effect, despite it being torn provided that the
3. Completion of the subjective phase; and testator tore it with the mistaken belief that the
4. Performed by the testator himself or by some second will was perfectly valid. This is because
other person in his presence and express he would have not destroyed the first will had he
direction (Art. 830(3)) known that second will is not valid. The revocation
is therefore dependent on the validity of the
NOTE: No amount of destruction without animus second will. (Molo v. Molo, G.R. No. L-2538,
revocandi, without destruction (even partial, as 1951)
long as not due to desistance) will revoke a will.
(Art. 830 (3); Balane, supra, p. 187) Revocation Based on a False or Illegal Cause
Revocation based on a false or illegal cause is
If the will was burned, torn, cancelled, or null and void. (Art. 833)
obliterated by some other person, without the
express direction of the testator, the will may still Requisites:
be established, and the estate distributed in 1. The cause must be concrete, factual and not
accordance therewith, if its contents, and due purely subjective.
execution, and the fact of its unauthorized 2. It must be false.
destruction, cancellation, or obliteration are 3. The testator must not know of its falsity.
established according to the Rules of Court. (Art. 4. It must appear from the will that the testator
830) is revoking because of the cause, which is
false. (Balane, supra, p. 204)
Doctrine of Presumed Revocation
Where the will cannot be found following the NOTE: Even if the revocation is for a false cause
death of the testator and it is shown that it was in but the will is holographic and the revocation is by
the testator's possession when last seen, the physical destruction, the revoked will can no
presumption is that he must have destroyed it longer be probated.
with animus revocandi. (Gago v. Mamuyac, G.R.
No. L-26317, 1927) The recognition of an illegitimate child does not
lose its legal effect, even though the will wherein
Revocation by Subsequent Will Effective even it was made should be revoked. (Art. 834)
if New Will Becomes Inoperative
A revocation made in a subsequent will shall take REPUBLICATION AND REVIVAL OF WILLS
effect, even if the new will should become
inoperative by reason of the incapacity of the Republication
heirs, devisees or legatees designated therein, or If the testator wishes to republish a will that is void
by their renunciation. (Art. 832) as to form, the only way to republish it is to
execute a subsequent will and reproduce it. (Art.
General Rule: Revocation is always effective. 835)
Exception: Doctrine of Dependent Relative Revival (Art. 836)

Revocation – when the testator provides in the The testator needs only to execute a subsequent
subsequent will that the revocation of the prior will or codicil referring to the previous will if the
one is dependent on the capacity or acceptance testator wishes to republish a will that is either:
of the heirs, devisees, or legatees instituted in the (a) Void for reason other than a formal defect
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(b) Previously revoked cannot enter into compromise agreement

different from the terms of the will. If admitted to
REPUBLICATION REVIVAL probate and found valid, the will should be the
Takes place by an Takes place by basis of disposition as the express will of the
act of the testator operation of law testator. (Roberts v. Leonidas, G.R. No. L-55509,
Corrects extrinsic Restores a revoked 1984)
and extrinsic defects will in certain
instances Two Kinds of Probate
(a) Post-mortem – After the testator’s death
If after making a will, the testator makes a second (b) Ante-mortem – During his lifetime (Balane,
will expressly revoking the first, the revocation of supra, p. 217)
the second will does not revive the first will, which
can be revived only by another will or codicil. (Art. The testator himself may, during his lifetime,
837) petition the court having jurisdiction for the
allowance of his will. (Art. 838)
Illustration:
In 1985, X executed Will I. In 1987, X executed Finality of a Probate Decree
Will II expressly revoking Will I. In 1990, X Subject to the right of appeal, the allowance of the
executed Will III, revoking Will II. The revocation will, either during the lifetime of the testator or
of Will II by Will III does not revive Will I, unless of after his death, shall be conclusive as to its due
course, Will III expressly revives Will I. (Balane, execution. (Art. 838) Once a decree of probate
supra, p. 205) becomes final in accordance with the rules of
procedure, it is res judicata.
PROBATE (ALLOWANCE OR
DISALLOWANCE OF WILLS) Joint wills are considered to have a defect in form
(non-compliance with formalities). However, if
Probate – Judicial process of proving: allowed and probated and becomes final, it can
1. Compliance with formal requirements of will; pass properties. (De la Cerna v. De la Cerna G.R.
and No. L-28838, 1976)
2. Testamentary capacity of the testator.
Scope of Probate Proceedings
Irrespective of whether its provisions are valid General Rule: Probate proceedings cover the
and enforceable or otherwise. (Fernandez v. due execution of the will, extrinsic of formal
Dimagiba, G.R. No. L-23638, 1967) validity and testamentary capacity of the testator
only, and no other extraneous matters.
No will shall pass either real or personal property
unless it is proved and allowed in accordance with Intrinsic validity cannot be ruled upon (i.e.
the Rules of Court. (Art. 838 (1)) impairment of legitime, unlawful provisions,
disqualifications of heirs, legatees, devices, etc.)
Mandatory Character of Probate or other extraneous matters. An extrinsically valid
Probate is mandatory in the sense that if there is will admitted to probate can still be declared void
a will, properties of the estate should pass only in intrinsically. (Balane, supra, p. 221)
accordance with the will, provided it is admitted
for probate. It is mandatory also in the sense that Exceptions: Other extraneous matters, which
it takes precedence over intestate proceedings. can be raised and decided in probate
Court ordered consolidation of the intestate proceedings (Nepomuceno v. CA, G.R. No. L-
proceedings with the testate proceedings, with 62952, 1985; Balanay v. Martinez, G.R. No. L-
the testate proceedings taking precedence. Heirs 39247, 1975. Thus:
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1. Provisional ruling on ownership of 4. All heirs are in agreement that intrinsic

properties validity should be determined first. (Reyes v.
The ruling is only for purposes of inclusion in the CA, G.R. No. 139587, 2000)
inventory of assets of the estate. It not conclusive
and is subject to final decision in a separate NOTE: Once the will is admitted to probate, the
action to resolve title. In case of community court may continue to proceed in determining the
properties of spouses, there must first be intrinsic validity of the will.
liquidation of ACP or CPG because the assets of
the estate should be net of the share of surviving Decree of Probate Conclusive as to the Due
spouse. (Pastor v. Pastor G.R. No. L-56340, Execution or Formal Validity of the Will
1983). This means that:
1. The fact that the will is indeed the testator’s
However, the rule of provisional character of last will and testament;
determination of ownership not being within the 2. Compliance with the required formalities
proper jurisdiction of the probate court applies (Balane, supra, p. 221);
only if the dispute is between the estate and third 3. Testamentary capacity of the testator;
persons claiming ownership, in which case a (Gallanosa v. Arcangel, G.R. No. L-29300,
separate proceeding should be instituted to settle 1978)
the issue of ownership. A probate court has 4. Due execution of the will – meaning, that
jurisdiction if the dispute is only among heirs, and testator was of sound disposing mind, that he
the issue is to determine whether the property is freely executed the will, that there is no
part of the ACP/CPG or is a separate property of duress, fraud, undue influence, menace, that
one of the spouses. (Romero v. CA, G.R. No. the will is genuine (not forged), and that
188921, 2012) testator was not disqualified from making a
will. (Dorotheo v. CA, G.R. No. 108581,
The approval of the inventory and the 1999).
concomitant determination of the ownership as
basis for inclusion or exclusion from the inventory Proof of Extrinsic Validity
were provisional and subject to revision at any Attested / Notarial Will
time during the course of the administration 1. Present original will (ideally)
proceedings. (Aranas v. Mercado, G.R. No. 2. Present any attesting witnesses and/or
156407, 2014) notary public to prove due execution/
testamentary capacity; and
2. Apparent intrinsic defect – If the intrinsic 3. If no one is available, present any available
defect is apparent on the face of the will, evidence to show authenticity or validity of
since probate of the will is unnecessary (as in contents of attestation clause. (Rules of
preterition, which annuls the will) (Nuguid v. Court, Rule 76)
Nuguid, G.R. No. 23445, 1966)
Holographic Will
1. Present original will or at least a photo static,
3. For practical considerations when
scanned or any legible copy; and
testamentary provisions are of doubtful
2. One person familiar with the handwriting of
validity such as when it is apparent that the
the testator, unless contested in which case,
disposition is in favor of a person the testator
three witnesses familiar with the handwriting
is guilty of concubinage with (Nepomuceno v.
of the testator must be presented to prove
CA, G.R. No. L-62952, 1985); and
that the will was written in the handwriting of
the testator. (Rules of Court, Rule 76, Sec. 5)
If there are no competent witnesess and the
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court deems it necessary, expert testimony the will with other writings or letters of the
may be resorted to. (Art. 811) deceased, have come to the conclusion that such
will has not been written by the hand of the
ATTESTED / NOTARIAL WILLS testator. And the court in view of such
Uncontested One subscribing witness only, contradictory testimony may use its own its own
if such witness testify that the visual sense, and decide in the face of the
will was executed as is document, whether the will submitted to it has
required by law (Rule 76, indeed been written by the testator. Obviously,
Section 5, Rules of Court) when the will itself is not submitted these means
Contested All the subscribing witnesses, of opposition and of assessing the evidence are
and the notary (Rule 76, not available. The only guaranty of authenticity—
Section 11, Rules of Court) the testator’s handwriting—has disappeared.
(Gan v. Yap, G.R. No. L-12190, 1958)
HOLOGRAPHIC WILLS
Uncontested At least one witness who Exception: A photo static copy or Xerox copy of
knows the handwriting and the holographic will may be allowed because
signature of the testator comparison can be made with the standard
explicitly declare that the will writings of the testator. (Rodelas v. Aranza, G.R.
and the signature are in the No. L-58509, 1982)
handwriting of the testator (Art.
811) Proof of Testamentary Capacity
Contested At least three witnesses who Testamentary capacity including soundness of
knows the handwriting and mind can be proven by the attestation clause and
signature of the testator testimony of witnesses and/or notary public. In
explicitly declare that the will the absence of any proof, the court may rely on
and the signature are in the the presumption of soundness of mind. (Art. 800)
handwriting of the testator (Art.
811) Exclusive Grounds for Disallowance of Wills
(LIF-P-FraM) (Art. 839)
Probate of Lost or Destroyed Will 1. Formalities required by Law were not
Requirements for the Probate of a Lost or complied with;
Destroyed Will (Rules of Court, Rule 76, Sec. 5) 2. Testator was Insane or incapable of making
1. Establish the execution and validity of the will a will at the time of execution (lack of
2. Establish that the will is in existence at the testamentary capacity);
time of death of the testator, or is shown to 3. The will was executed through Force or under
have been fraudulently or accidentally duress, or the influence of fear, or threats;
destroyed in the lifetime of the testator 4. The will was procured by undue and improper
without his knowledge Pressure and influence, on the part of the
3. Its provisions must be clearly and distinctly beneficiary or of some other person;
proved by at least two credible witnesses 5. The testator’s signature was procured
through Fraud; and
Lost or Destroyed Holographic Will 6. If the testator acted by Mistake or did not
General Rule: In the probate of a holographic intend that the instrument he signed should
will, the document itself must be produced. A lost be his will at the time of affixing his signature.
holographic will cannot be probated. (Gan v. Yap,
G.R. No. L-12190, 1958) NOTE: Once a will is disallowed because of any
of the following grounds, intestate succession will
The oppositor may present witnesses who know ensue.
the testator’s handwriting, who after comparing
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II. INSTITUTION OF HEIRS DEVISEES AND Intestacy Follows If Entire Free Portion Not
LEGATEES Disposed of by Will
An act by virtue of which a testator designates in If the testator has instituted one or several heirs,
his will the person or persons who are to succeed and the institution of each is limited to an aliquot
him in his property and transmissible rights and part of the inheritance, intestate succession takes
obligations. (Art. 840) place with respect to the remainder of the
disposable portion. (Art. 851)
NOTE: The declaration of heirship must be made
in a special proceeding, not in an independent Rules on Institution of Aliquot Share Less
civil action. However, the Court held that recourse Than or In Excess of the Whole Estate
to administration proceedings to determine who The rules will apply if the following concur:
the heirs are is sanctioned only if there is a good 1. There is more than one instituted heir.
and compelling reason for such recourse. Hence, 2. The testator intended them to get the whole
the Court had allowed exceptions to the rule estate or the whole disposable portion.
requiring administration proceedings as when the 3. The testator has designated a definite or
parties in the civil case already presented their aliquot portion for each heir. (Balane, supra,
evidence regarding the issue of heirship, and the p. 251-252)
RTC had consequently rendered judgment upon
the issues it defined during the pre-trial. RULES ON INSTITUTION OF ALIQUOT
(Rebusquillo v. Gualvez, G.R. No. 204029, 2014) SHARE LESS THAN OR IN EXCESS OF THE
WHOLE ESTATE
An Affidavit of Self-Adjudication is only proper Art. 852 Art. 853
when the affiant is the sole heir of the decedent. Total of all the aliquot Total of all the aliquot
(Rebusquillo v. Gualvez, G.R. No. 204029, 2014) parts of the instituted parts of the instituted
heirs do not cover the heirs exceed the
A will shall be valid even though it does not whole inheritance, or whole inheritance, or
contain an institution of an heir, or such institution the whole free portion the whole free portion
does not comprise the estate, or even though the Remedy: Each part Remedy: Each part
person so instituted should not accept the shall be increased shall be reduced
inheritance or should be incapacitated to proportionately proportionately
succeed. In such case, the testamentary
dispositions made in accordance with law shall be NOTE: In Article 852, the difference between the
complied with, and the remainder of the estate total of all the portions and the whole of the
shall pass to the legal heirs. (Art. 841) inheritance or free portion cannot pass by
intestacy because the testator’s intention is to
DISPOSITIONS BY WILL give the instituted heirs the entire amount.
No compulsory Dispose by will the entire (Balane, supra, p. 252)
heirs hereditary estate
With compulsory Dispose by will the free Requisites for a Valid Institution of Heir
heirs portion (net hereditary 1. Designation in the will of person/s to succeed
estate minus legitimes) (Art. 840)
(Balane, supra, p. 239) 2. The will specifically assigns to such person
an inchoate share in the estate.
3. The person so named has capacity to
succeed.
4. The will is formally valid
5. No vice of consent is present
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6. No preterition results from the effect of such If the testator should institute his brothers
will (Art. 854) and sisters, and he has some full blood
and others of half-blood, the inheritance
Designation in the Will of Person/s to Succeed shall be distributed equally unless a
different intention appears. (Art. 848)
Directory – Designation of name and surname
(Balane, supra, p. 240) NOTE: In intestacy, the proportion of 2:1
between full and half-blood siblings and
Mandatory – Identity of the heir must be the Iron Curtain Rule between legitimate
established, otherwise void disposition, unless and illegitimate siblings shall be applied.
his identity becomes certain.
(b) Individuality – Heirs collectively instituted are
NOTE: If there is ambiguity in the designation, the deemed individually named unless a
designation must be resolved by discerning the contrary intent is prove. (Art. 847)
testator’s intent. If the ambiguity cannot be (c) Simultaneity – When several heirs are
resolved, intestacy to that portion results. (Art. instituted, they are deemed instituted
844, par. 2) simultaneously and not successively. (Art.
849)
Unknown person – A successor whose identity
cannot be determined because the designation in Effect of False Cause for Institution of an Heir
the will is unclear or ambiguous. (Balane, supra, General Rule: The falsity of the stated cause
p. 241) does not affect the validity or efficacy of the
institution. The false cause is merely considered
NOTE: Unknown persons do not refer to one with as not written. (Art. 850)
whom the testator is not personally acquainted.
The testator may institute somebody who is a Exceptions: It appears from the will that the
perfect stranger to him, provided the identity is testator would not have made such designation if
clear. (Balane, supra, p. 241) he had known the falsity of such cause. (Art. 850)
Dispositions in Favor of an Unknown Person Requisites for the Exception to Apply:

(Art. 845) 1. The cause for the institution of heirs must be
General Rule: Every disposition in favor of an stated in the will (Austria v. Reyes, G.R. No.
unknown person shall be void. L-23079, 1970);
Exception: By some event or circumstance his 2. The cause must be shown to be false (Austria
identity becomes certain. v. Reyes, G.R. No. L-23079, 1970);
3. It must appear from the face of the will that
Dispositions in Favor of a Definite Class the testator would not have made such
A disposition in favor of a definite class or group institution if he had known the falsity of the
of persons shall be valid. (Art. 845) cause. (Austria v. Reyes, G.R. No. L-23079,
1970)
Presumptions in Institution of Heirs
In the absence of specific provisions in the will, PRETERITION
these presumptions will apply: (E-In-S) The preterition or omission of one, some, or all of
(a) Equality – Heirs who are instituted without the compulsory heirs in the direct line, whether
designation of shares inherit in equal parts. living at the time of the execution of the will or
(Art. 846) born after the death of the testator, shall annul the
Shares of Brothers and Sisters in institution of heir; but the devises and legacies
Testamentary Succession shall be valid insofar as they are not inofficious.
(Art. 854)
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Compulsory Heir in the Direct Line

If the omitted compulsory heirs should die before This covers children or descendants, or in default
the testator, the institution shall be effectual, of children or descendants, parents or
without prejudice to the right of representation. ascendants. Illegitimate descendants and
(Art. 854) ascendants are also protected, since the law
does not distinguish. (Balane, supra)
Definition of Preterition
Preterition is the total omission of a compulsory Adopted children are considered compulsory
heir from the inheritance. It consists in the silence heirs in the direct line, and may be preterited. This
of the testator with regard to a compulsory heir, is because adoption gives to the adopted child the
omitting him in his will, either by not mentioning same rights and duties as if he were a legitimate
him at all, or by not giving him anything in the child of the adopter. (Acain v. Intermediate
hereditary property but without expressly Appellate Court, G.R. No. 72706, 1987)
disinheriting him, even if he is mentioned in the
will in the latter case. (Heirs of Ureta v. Ureta, Effects of Preterition
G.R. No. 165748, 2011) 1. The institution of heir is annulled. The
annulment is in toto, unless in the will there
NOTE: Preterition is a concept of testamentary are, in addition, testamentary dispositions in
succession and requires a will. (Heirs of Ureta v. the form of devises or legacies. (Nuguid v.
Ureta, G.R. No. 165748, 2011) Nuguid, G.R. No. L-23445, 1966) Preterition
annuls the institution of an heir and
Elements of Preterition (OCLIT) annulment throws open to intestate
1. There must be a total Omission of one, some succession the entire inheritance. (Acain v.
or all of the heir/s in the will, without the heir Intermediate Appellate Court, G.R. No.
being expressly disinherited. 72706, 1987)
2. The omission must be that of a Compulsory
heir in the direct line. 2. Devises and legacies shall remain valid as
3. The omitted compulsory heir must be Living long as they are not inofficious. The only
or at least conceived at the time of testator’s provisions which do not result in intestacy are
death. (Art. 854) the legacies and devises made in the will for
4. The omission must be complete and Total in they should stand valid and respected,
character. The heir in question must have except insofar as the legitimes are
received nothing from the testator by way of: concerned. (Acain v. Intermediate Appellate
a. Testamentary succession; Court, G.R. No. 72706, 1987) If the devises
b. Legacy or devise; and legacies impair the legitimes, they are
c. Donation inter vivos; merely reduced. (Balane, supra)
d. Intestacy (Balane, supra, p. 266)
3. If the omitted compulsory heir should die
NOTE: What constitutes preterition is not before the testator, the institution shall be
omission in the will but being completely left out effectual, without prejudice to the right of
of the inheritance. (Seangio v. Reyes, G.R. No. representation.
140371-72, 2006)
PRETERITION DISINHERITANCE
Determination of Preterited Heirs Deprivation of a Deprivation of the
The determination of whether or not there are compulsory heir of compulsory heir of
preterited heirs can be made only upon the his legitime is tacit his legitime is
testator’s death. (JLT Agro v. Balansag, G.R. No. express
141882, 2005)
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Law presumes that Done with a legal III. SUBSTITUTION OF HEIRS

there has been cause
merely an oversight The appointment of another heir so that he may
or mistake on the part enter into the inheritance in default of the heir
of the testator originally instituted. (Art. 857)
It results in the The nullity is limited
complete nullity of the to the portion of the
NOTE: Only one substitution is allowed. The
institution of heir, estate of which the
person substituting cannot be substituted again.
except the devises disinherited heir has
and legatees, as long been legally
as they are not deprived. Substitute Subject to Same Charges and
inofficious. Conditions Imposed on Original Heir
Omitted heir gets not If disinheritance is General Rule: The substitute shall be subject to
only his legitime but unlawful or the same charges and conditions imposed upon
also his share in the ineffective, for the instituted heir. (Art. 862)
free portion not absence of one or
disposed of by way of other of the
legacies or devises requisites, the Exception: The testator expressly provided the
compulsory heir is contrary, or the charges or conditions are
merely restored to his personally applicable only to the heir instituted.
rightful share. (Art. 862)
(Nuguid v. Nuguid,
G.R. No. L-23445) Classes of Substitution
(a) Vulgar or Simple – The testator may
Successional Rights are Intransmissible designate one or more persons to substitute
An heir, whether compulsory, voluntary, or legal, the heir or heirs instituted in case such heir or
transmits nothing to his heirs, in case of heirs should:
predecease, incapacity, renunciation, or i. Die before him (Predecease)
disinheritance. However, in case of predecease ii. Should not wish to be instituted,
or incapacity of compulsory or legal heirs, as well (Renounce) or
as disinheritance of compulsory heirs, the rules iii. Should be incapacitated to accept the
on representation shall apply. (Balane, supra) inheritance (Incapacitated) (Art. 859)
There is Right of Representation for

Simple Substitution
Compulsory Heirs under the ff:
Simple substitution may be done by the testator:
1. Predecease;
2. Incapacity a. By specifying all the three causes,
3. Disinheritance (Art. 859) b. By merely providing for simple substitution.
(Art. 859)
No Right of Represention for Testamentary /
Voluntary Heirs A simple substitution, without a statement of the
cases to which it refers, shall comprise the three
There is Right of Representation for Legal / causes mentioned, unless the testator has
Intestate Heirs under the ff: otherwise provided. (Art. 859)
1. Predecease;
Restricted Simple Substitution
2. Incapacity
The testator may limit the operation of simple
substitution by specifying only one or two of the
three causes.
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Transmit it after the lapse of the period to the

(b) Brief (Brevilocua)- Two or more persons may fideicommissary heir. (Art. 865)
be substituted for one person (Art. 860) 5. Both heirs must be Living and qualified to
succeed at the time the testator’s death.
(c) Compendious (Compediosa) – one person
6. The fideicommissary substitution must be
may be substituted for two or more heirs (Art.
Expressly made. (Art. 865)
860)
7. The fideicommissary substitution is imposed
(d) Reciprocal (Reciproca) – If heirs instituted in on the Free portion of the estate and never
unequal shares should be reciprocally on the legitime. (Art. 864)
substituted, the substitute shall acquire the
share of the heir who dies, renounces, or is NOTE: Pending the transmission of the property,
incapacitated, unless it clearly appears that the fiduciary is entitled to all the rights of a
the intention of the testator was otherwise. If usufructuary having the right to use and enjoy the
there are more than one substitute, they shall property, but without the right to dispose the
have the same share in the substitution as in same. Although the fideicommissary heir does
the institution. (Art. 861) not receive the property upon the testator’s death,
his right thereto vests at the time and merely
NOTE: If one is substituted for two or more becomes subject to a period, and that right
original heirs, substitution will only take place if all passes to his own heirs should he die before the
the original heirs are disqualified. If not all of the fiduciary’s right expires. (Balane, supra)
original heirs are disqualified, the share left
vacant will accrue to the surviving co-heir or co-
Tenure of Fiduciary
heirs.
Primary Rule: Period indicated by the testator
(e) Fideicommissary Substitution - If the Secondary Rule: If the testator did not indicate a
testator institutes an heir with an obligation to period, then the fiduciary’s lifetime. (Balane,
deliver to another the property so inherited. supra, citing Manresa)
The heir instituted to such condition is called
the first heir or fiduciary heir, the one to
Two Ways of Making an Express Imposition of
receive the property is the fideicommissary or
Fideicommissary Substitution
second heir. (Art. 863)
1. By the use of the term fideicommissary; or
Requisites for a Fideicommissary 2. By imposing upon the first heir the absolute
Substitution (1st-2nd-1-PT-LEFree) obligation to preserve and to transmit to the
second heir. (Art. 865)
1. A fiduciary or a FIRST heir who takes the
property upon the testator’s death. (Art, 863)
2. A fideicommissary or SECOND heir who Transmission of Property from First Heir to
takes the property subsequently from the Second Heir
fiduciary. (Art. 863) General Rule: The fiduciary should deliver the
3. The second heir must be ONE degree from property without deductions.
the first heir. Thus, the fideicommissary can Exceptions: Deductions which arise from
only be a parent or a child of the fiduciary. legitimate expenses, credits and improvements.
(Palacios v. Ramirez, G.R. No. 27952, 1982) (Art. 865)
4. The dual obligation imposed upon the
fiduciary to Preserve the property and to
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Right to Succession of the Second Heir Period of Inalienability of the Estate

The second heir shall acquire the right to the General Rule: The dispositions of the testator
succession from the time of the testator’s death, declaring all or part of the estate inalienable for
even though he should die before the fiduciary. more than 20 years are void. (Art. 870)
The right of the second heir shall pass to his heirs. Exception: In fideicommissary substitution, the
(Art. 866) period is the lifetime of the first heir.
The following shall not take effect: (Art. 867) IV. CONDITIONAL TESTAMENTARY
1. Fideicommissary substitutions which are not DISPOSITIONS AND DISPOSTIONS WITH A
made in an express manner, either by giving TERM
them this name, or imposing upon the The institution of an heir may be made
fiduciary the absolute obligation to deliver the conditionally, or for a certain purpose or cause.
property to a second heir; (Art. 871)
2. Provisions which contain a perpetual
prohibition to alienate, and even a temporary Three Kinds of Testamentary Dispositions
one, beyond the limit fixed in Article 863.
(a) Conditional dispositions
3. Those which impose upon the heir the charge
(b) Dispositions with a term
of paying to various persons successively,
beyond the limit prescribed in Article 863, a (c) Dispositions with a mode
certain income or pension;
4. Those which leave to a person the whole or Definitions
part of the hereditary property in order that he (a) Condition – Future or uncertain event, or a
may apply or invest the same according to past event unknown to the parties, upon
secret instructions communicated to him by which the performance of an obligation
the testator. depends (Art. 1179)
(b) Term – The day or time when an obligation
Nullity of Fideicommissary Substitution either becomes demandable or terminates
The nullity of the fideicommissary substitution (Art. 1193)
does not prejudice the validity of the institution of (c) Mode – The statement of the object of the
heirs first designated; the fideicommissary clause institution or the application of the property
shall simply be considered as not written (Art. left by the testator or the charge imposed on
868) such that the institution of the first heir simply the heir. (Art. 882) It is an obligation imposed
becomes pure and unqualified. (Balane, supra) upon the heir, without suspending the
effectivity of the institution or the rights to the
succession. (Rabadilla v. Court of Appeals,
Ownership and Usufructuary Provisions
G.R. No. 113725, 2000)
A provision whereby the testator leaves to a
(d) Disposicion Captatoria/ Scriptura
person the whole or part of the inheritance, and
Captatoria – A condition that the heir shall
to another the usufruct, shall be valid. (Art. 869)
make some provision in his will of the testator
or of any other person. This is prohibited
Successive Usufructuaries because it will make the making of the will a
If the testator gives the usufruct to various contractual act. (Art. 875)
persons, not simultaneously, but successively,
the requisites of a fideicommissary substitution It is not merely the condition that is declared void
must be present. (Art. 869) but the testamentary disposition itself which
contains the condition. (Balane, supra)
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(e) Casual Condition – A condition is casual if it Conditions Prohibiting Marriage

depends upon chance and/or upon the will of General Rule: An absolute condition not to
a third person contract a first or subsequent marriage shall be
(f) Mixed Condition - A condition is mixed if it considered as not written. (Art. 874)
depends both partly upon the will of the heir Exception: The condition has been imposed on
himself and upon chance and/or the will of a the widow or widower by the deceased spouse,
third person or by the latter’s ascendant’s or descendants.
(g) Potestative Condition – One the fulfillment (Art. 874)
of which depends purely on the heir.
(h) Suspensive Term – One that merely The right of usufruct, or an allowance or some
suspends the demandability of a right; personal prestation may be devised or
happening is certain. bequeathed to any person for the time during
(i) Caucion Muciana – Bond or security that which he or she should remain unmarried or in
should be given in favor of those who would widowhood. (Art. 874)
get the property if the condition not be
complied with. (Art. 879)
RULES ON POTESTATIVE, CASUAL AND
MIXED CONDITIONS
Interpretation
• When in doubt whether there is a condition or Positive Potestative Condition (Art. 876)
merely a mode, consider the same as mode.
General Rule – It must be fulfilled as soon as the
• When in doubt as to whether there is a mode heir learns of the testator’s death.
or merely a suggestion, consider same only Exception: The condition, already complied with,
as a suggestion. is of such nature that it cannot be fulfilled again.
• A condition suspends but does not obligate,
while a mode obligates but does not suspend
Negative Potestative Condition (Art. 879)
(for he who inherits with a mode is already an
heir; one who inherits conditionally is not yet If the potestative condition imposed upon the heir
an heir.) is negative, or consists in not doing or not giving
something, the heir shall comply by giving a
security (caucion muciana) that he will not do or
Condition on the Legitimes is Prohibited give that which has been prohibited by the
The testator cannot impose any charge, condition testator, and that in case of contravention he will
or substitution whatsoever upon the legitimes. return whatever he may have received, together
Should he do so, the same shall be considered with its fruits and interests.
as not imposed. (Art. 872)
Casual or Mixed (Art. 877)

Conditions which are Impossible, Contrary to It is sufficient if it happens or be fulfilled at any
Law or Good Customs other time before or after the testator’s death,
These conditions are considered as not imposed, unless testator provides otherwise.
and shall not prejudice the heir, even if the
testator provide otherwise. (Art. 873) The
If already fulfilled at the time of execution of the
testamentary disposition is not annulled; it simply
will
becomes pure. (Balane, supra)
a. If testator is unaware of fact of fulfillment-
Deemed fulfilled.
b. If testator is aware of the fact of fulfillment
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i. If it can no longer be fulfilled again –It is Dispositions with a Term

deemed fulfilled Suspensive Term (Art. 878)
ii. If it can be fulfilled again – It must be A disposition with a suspensive term does not
fulfilled again. (Art. 877) prevent the instituted heir from acquiring his
rights and transmitting them to his heirs even
before the arrival of the term.
Constructive Compliance (Art. 883, par. 2)
If the person interested in the condition should NOTE: The heir’s right vests upon the testator’s
prevent its fulfillment, without the fault of the heir, death. Should the heir die before the arrival of the
the condition shall be deemed to have been suspensive term, he merely transmits his right to
complied with. his own heirs who can demand the property when
the term arrives. (Balane, supra)
RULES ON APPLICABILITY OF
The designation of the day or time when the
CONSTRUCTIVE COMPLIANCE
effects of the institution of an heir shall commence
CASUAL
MIXED CONDITION or cease shall be valid. (Art. 885)
CONDITION
Not Dependent Dependent on
TERM
Applicable Partly on Will of Third
SUSPENSIVE RESOLUTORY
Chance Party
Before the arrival of Before the arrival of
Not Applicable only if
the term, the property the term, the property
Applicable third party is
should be delivered to should be delivered to
interested in the
the intestate heirs. the instituted heir. No
condition (Art.
However, a sufficient security is required of
883)
security has to be them. (Art. 885)
posted by the
Effects of Suspensive Condition or Term (Art.
intestate heirs.
880)
The estate shall be placed under administration
Dispositions with Modes
until:
Dispositions with modes may be claimed at once,
(a) Condition is fulfilled, or
provided that the instituted heirs give security for
(b) Until it becomes certain that condition will
compliance with the wishes of the testator and for
never be fulfilled, or
the return of anything he or they may receive,
(c) Until arrival of the term
together with its fruits and interests, if he or they
should disregard this obligation. (Art. 882, par. 2)
The same shall be done if the heir does not give
the security required as in negative potestative
Indicators of a Modal Institution
conditions. (Art. 880)
The testator states the following:
1. The object of the institution;
IF THE IF IT BECOMES
2. The purpose or application of the property left
CONDITION CERTAIN THAT
by the testator;
HAPPENS CONDITION WILL NOT
3. The charge imposed by the testator upon the
HAPPEN
heir. (Rabadilla v. Court of Appeals, G.R. No.
The property will The property will be turned
113725, 2000)
be turned over over to a secondary heir, if
to the instituted there is one, or to the
NOTE: An obligation imposed upon the heir
heir. intestate heirs, as the case
should not be considered a condition unless it
may be.
clearly appears from the will itself that such was
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the intention of the testator. In case of doubt, the (a) Primary – Those who have precedence over
institution should be considered as modal and not and exclude other compulsory heirs
condition. (Rabadilla v. Court of Appeals, G.R. i.Legitimate or adopted children and/or
No. 113725, 2000) descendants (legitimate), with
respect to their legitimate parents
Analogous Performance and ascendants (Arellano v.
When without fault of the heir, a modal institution Pascual, G.R. No. 189776, 2010,
cannot take effect in the exact manner stated by citing Tolentino 1992 ed., p. 252)
the testator, it shall be complied with in a manner
most analogous to and in conformity with his (b) Secondary – Those who succeed only in the
wishes. (Art. 883, par. 1) absence of the primary heirs
i.Legitimate parents and ascendants
Prohibited or Void Conditions (legitimate), with respect to their
The prohibited or void conditions are: (LIM-Will) legitimate children and descendants
1. Charges, conditions, substitutions, upon the ii.Parents of illegitimate children – only in
Legitimes. (Art. 872) default of any kind of descendants
2. Impossible conditions and those contrary to (Arellano v. Pascual, G.R. No.
law or good customs. (Art. 873) 189776, 2010, citing Tolentino 1992
3. An absolute condition not to contract a first or ed., p. 252)
subsequent Marriage. (Art. 874)
1. However, if the condition not to contract (c) Concurring – Those who succeed together
a first or subsequent marriage has been with the primary or the secondary compulsory
imposed on the widow or widower by the heirs
deceased spouse, or by the latter’s i.Widow or widower (legitimate) – the
ascendants or descendants, such surviving spouse referred to is the
condition is valid. (Art. 874) spouse of the decedent.
4. Disposition Captatoria –Any disposition ii.Illegitimate children and/ or descendants
made upon the condition that the heir shall (Arellano v. Pascual, G.R. No.
make some provision in his WILL in favor of 189776, 2010, citing Tolentino 1992
the testator or of any other person. (Art. 875) ed., p. 252)
————- end of topic ————- Compulsory Heirs (Art. 887)

(a) Legitimate or adopted children and/or
V. LEGITIME legitimate descendants.
The part of the testator’s property which he NOTE: The nearer exclude the more
cannot dispose of because the law has reserved remote. Hence, children exclude
it for his compulsory heirs. (Art. 886) grandchildren, except when the rule on
representation is proper.
NOTE: When the disposition is for valuable
consideration, there is no diminution of the estate (b) Legitimate parents and/or ascendants,
by merely a substitution of value, that is the parents of illegitimate children.
property sold is replaced by the equivalent
monetary consideration. (Buenaventura v. Court NOTE: Legitimate parents or ascendants are
of Appeals, G.R. No. 126376, 2003; Manongsong excluded only by legitimate children. Parents
v. Estimo, G.R. No. 136773, 2003) of illegitimate children are excluded by both
legitimate and illegitimate children. The
Classes of Compulsory Heirs illegitimate ascending line does not go
beyond the parents.
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side. After the portions corresponding to the

(c) Surviving spouse line has been assigned, there will be equal
apportionment between or among the
NOTE: The marriage between the decedent recipients within the line, should there be
and the surviving spouse must either be valid more than one. (Art. 890)
or voidable. If voidable, there should have (f) There is no right of representation in the
been no final decree of annulment at the time direct ascending line. (Art. 972)
of the decedent’s death. (g) For a surviving spouse to inherit from the
deceased, the marriage between the
Separation de facto is not a ground for the decedent and the widow/widower must be
disqualification of the surviving spouse as either valid or voidable. (Balane, supra,
heir. p.341)
Effect of decree of legal separation: Rules of Surviving Spouse as Sole

a. On the offending spouse – disqualified Compulsory Heir (Art. 900)
from inheriting
b. On the innocent spouse – no effect General Rule: The surviving spouse gets 1/2 of
c. If after the final decree of separation the estate
there was a reconciliation between the
spouses, the reciprocal right to succeed Exception: 1/3 of the estate, if the following
is restored. circumstances are present:
1. The marriage was in articulo mortis;
(d) Illegitimate children and/or descendants 2. The testator died within 3 months from the
time of the marriage;
NOTE: In all cases of illegitimate 3. The parties did not cohabit for more than 5
children, their filiation must be duly years; and
proved. (Art. 887) 4. The spouse who died was the party in articulo
mortis at the time of the marriage.
As to illegitimate descendants the rule is
also the nearer exclude the more remote,
without prejudice to representation when
proper.
General Rules in Ascertaining Legitimes

(a) Rule of proximity: The nearer exclude the
more remote, except when the rule on
representation is proper. (Art. 962)
(b) Legitimate parents or ascendants are
excluded only by legitimate children. (Arts.
896, 899)
(c) Parents of illegitimate children are excluded
by both legitimate and illegitimate children.
(Art. 903)
(d) The illegitimate ascending line does not go
beyond the parents. (Art. 903; Balane, supra,
p.345)
(e) In the direct ascending line, there is the rule
of division by line. The legitime is divided
equally between the paternal and maternal
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DIFFERENT COMBINATIONS OF Shares of Compulsory Heirs (Art. 888-903)
FREE
HEIR LEGITIME
PORTION
Legitimate Children & Descendants 1/2 1/2
Legitimate Children (LC) & Surviving Legitimate Children – 1/2 Whatever

Spouse Spouse – Equal to share of 1 LC remains
One Legitimate Child/Descendant & Child/Descendant – 1/2

1/4
Surviving Spouse Spouse – 1/4
Legitimate Children -1/2
Whatever
Legitimate Children (LC) &
Illegitimate Children – 1/2 of share of 1 LC as remains
Illegitimate Children (ILC)
may be accommodated, otherwise reduce
proportionately
LC –1/2
Legitimate Children/Descendants, Spouse – equal to 1 share of 1 LC
Surviving Spouse & Illegitimate Whatever
Children ILC – 1/2 of share of 1 LC as may be remains
accommodated, otherwise reduce
proportionately
LC – 1/2
ILC – 1/2 of share of 1 LC as may be
One Legitimate Child, Illegitimate Whatever
accommodated, otherwise reduce
Children & Surviving Spouse remains
proportionately
Spouse –1/4 of estate
Parents & Ascendants of Legitimate

1/2 1/2
Children
Parents/Ascendants of Legitimate Legitimate Parents/Ascendants – 1/2

Children & Illegitimate Children Illegitimate Children – 1/4 1/4
Legitimate Parents/Ascendant – 1/2

Parents/Ascendants of Legitimate
Children & Surviving Spouse 1/4
Spouse – 1/4
Parents/Ascendants of Legitimate Parents/Ascendants –1/2
Children, Illegitimate Children & ILC –1/4
1/8
Surviving Spouse, Spouse – 1/8
General Rule or If in artiuculo mortis, but
1/2
cohabited for more than 5 years – 1/2
Surviving Spouse Only
1/3 if in articulo mortis 2/3
ILC – 1/3
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Surviving Spouse & Illegitimate 1/3

Spouse – 1/3
Children
Surviving Spouse & Parents Of Spouse – 1/4
1/2
Illegitimate Children Parents – 1/4
Illegitimate Children Only 1/2 1/2
Parents Of Illegitimate Children 1/2 1/2
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Reserva Troncal 4. There are relatives within the Third degree

This is the reservation by virtue of which an (Reservatarios) belonging to the line from
ascendant who inherits from his descendant any which the said property came. (Chua v. Court
property which the latter may have acquired by of First Instance, G.R. No. L-29901, 1977)
gratuitous title from another ascendant or a
brother or sister, is obliged to reserve the property NOTE: The provisions of Art. 891 only apply to
for the benefit of relative within the third degree legitimate relatives. (Nieva v. Alcala, G.R. No. L-
and who belong from the same line from which 13386, 1920)
the property came from. (Art. 891)
Three Transmissions Involved in Reserva
NOTE: It constitutes as an exception to both the
Troncal:
system of legitimes and the order of intestate
succession. 1. A first transmission by lucrative title
(inheritance or donation) from an ascendant
Purpose of Reserva Troncal: or brother or sister to the deceased
1. To reserve certain properties in favor of descendant; (Mendoza v. Delos Santos, G.R.
certain persons No. 176422, 2013)
2. To prevent persons outside a family from
acquiring, by some chance or accident, 2. A posterior transmission, by operation of law
property which otherwise would have (intestate succession or legitime) from the
remained with the said family deceased descendant (prepositus) in favor of
another ascendant, the reservista, which two
Requisites of Reserva Troncal (GWOT) transmissions precede the reservation;
1. The property was acquired by a person (Mendoza v. Delos Santos, G.R. No. 176422,
(Prepositus) from an ascendant or from a 2013)
brother or sister (Origin) by Gratuitous title;
It is this second transfer that creates the
Acquisition by Gratuitous Title (First reserva. (Solivio v. Court of Appeals, G.R.
Transfer) No. 83484, 1990)
a. By donation, or
b. By any kind of succession 3. A third transmission of the same property (in
consequence of the reservation) from the
2. The said descendant died Without legitimate reservistas to the reservatarios or the
issue; relatives within the third degree from the
deceased descendant belonging to the line of
NOTE: Only legitimate descendants will the first ascendant, brother or sister of the
prevent the property from being inherited by deceased descendant. (Gonzalez v. CFI,
the legitimate ascending line by operation of G.R. No. 34395, 1981)
law.
Parties Involved
3. The property is inherited by another 1. Origin or Mediate Source – The ascendant,
descendant (Reservista) by Operation of law; brother or sister from whom the prepositus
had acquired the property by gratuitous title;
Transmission by Operation of Law (Second (Balane, supra)
Transfer)
a. Compulsory succession, or 2. Prepositus – The descendant/brother/ sister
b. Intestate succession who died and from whose death the
reservistas in turn had acquired the property
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by operation of law. The so-called “arbiter of Two Events to be Considered to Determine

the fate of the reserva troncal.” (Balane, the Right of the Reservatarios over the
supra) Reservable Property
1. Death of Prepositus – All qualified
While the property is owned by the reservatarios merely have an inchoate right.
prepositus, he has all the rights of ownership The reservistas own the property subject to
over it and may exercise such rights in order the resolutory condition
to prevent a reserva from arising. He can 2. Death of Reservista – surviving
terminate the reserva by reservatarios acquire a perfect right. (Balane,
substituting or alienating or disposing the supra)
property during his lifetime;
a. By bequeathing or devising it either Preference Among Reservatarios
to the potential reservista or to other Upon the death of the ascendant reservista, the
third person (subject to rights of reservable property should pass, not to all the
compulsory heirs to the legitime); or reservatarios as a class, but only to those nearest
b. By partitioning in such a way as to in degree to the descendant (prepositus),
assign the property to parties other excluding those reservatarios of more remote
than the potential reservista (subject degree. The reserva troncal merely determines
to the constraints of the legitime). the group of relatives to whom the property
should be returned; but within that group the
individual right to the property should be decided
3. Reservista – The ascendant of the prepositus
by the applicable rules of ordinary intestate
of whatever degree, obliged to reserve the
succession, since Art. 891 does not specify.
property; (Balane, supra)
(Padura v. Baldovino, G.R. No. 11960, 1958)
4. Reservatarios – The relatives of the
Representation Among the Reservatarios
prepositus within the third degree and who
There is a right of representation on the part of
belong to the line from which the property
reservatarios who are relatives of the prepositus
came and for whose benefit the reservation is
within the third degree. These reservatarios have
constituted. (Balane, supra)
the right to represent their ascendants.
(Florentino v. Florentino, G.R. No. 14856, 1919)
NOTE: The reference point from which the
third degree requirement should be reckoned Relatives within the 4th and succeeding degrees
is the prepositus – the one at the end of the cannot be considered reservatarios. They cannot
line from which the property came and upon claim representation of their predecessors since
whom the property last resolved by descent. the right granted in Art. 891 is a personal right.
(Mendoza v. delos Santos, 2013) The only recognized exemption is the case of
nephews and nieces of the prepositus, who have
NOTE: As long as the reservatario is alive at the right to represent their fathers or mothers who
the time of the reservista’s death, he qualifies are brothers and sisters of the prepositus.
as such, even if he was conceived and born (Mendoza v. De los Santos, G.R. No. 176422,
after the prepositus’ death. (Balane, supra) 2013)
There will only be one instance of representation

among reservatarios, i.e., a case of the
prepositus being survived by brothers/sisters and
children of a predeceased or incapacitated
brother/sister. (Balane, supra)
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Juridical Nature of Reserva Troncal RESERVA MAXIMA RESERVA MINIMA

Nature of Reservista’s Right The whole property is Every single property
1. The reservista’s right over the reserved reservable for as long in the Prepositus’
property is one of ownership; as it can be estate must be
2. The ownership is subject to a resolutory accommodated in the deemed to pass,
condition. (The existence of reservatarios at legitime or intestate partly by will and
the time of the reservista’s death) share of the partly by operation of
3. The right of ownership is alienable, but reservatarios law, so that in
subject to the same resolutory condition. general, only 50% of
4. The reservista’s right of ownership is the property is
registrable. (Edroso v. Sablan, G.R. No. reservable.
6878, 1913) Maximizes the scope Minima finds wider
of reserve acceptance in the
The reservista has no power to appoint, by will, Philippines
which reservatarios are to get the reserved
property. (Gonzales v. CFI, G.R. No. L-34395, Rights of the Reservatarios and the
1981) Corresponding Obligations of the Reservista
(Balane, supra)
Nature of Reservatarios’ Right 1. To Inventory reserved properties;
1. The reservatarios have a right of expectancy 2. To Annotate the reservable character (if
over the property; registered immovables) in the Registry of
2. The right is subject to a suspensive condition. Property within 90 days from acceptance by
(The expectancy ripens into ownership if the the reservista;
reservatarios survive the reservista). 3. To Appraise the movables;
3. The right is alienable, but subject to the same 4. To Secure by means of mortgage:
suspensive condition. a. The indemnity for any deterioration of or
4. The right is registrable. (Sienes v. Esparcia , damage to the property occasioned by
G.R. No. L-12957, 1961) the reservista’s fault or negligence, and
b. The payment of the value of such
Property Reserved reserved movables as may have been
Any kind of property may be reserved. The very alienated by the reservista onerously and
same property must go through the process of the gratuitously. (Dizon v. Galang, G.R. No.
three transmissions, in order for the reserva to 23144, 1926)
arise. (Balane, supra)
Reserva Troncal is Extinguished By
Reserva Maxima/Minima Theories: Applies 1. The death of the reservista
only if two circumstances concur: 2. The death of all the reservatarios;
1. Prepositus makes a will instituting the 3. Renunciation by all the reservatarios,
ascendant-reservista to the whole or a part of provided that no other reservatario is born
the free portion; (Balane, supra) subsequently;
2. There is left in the prepositus’ estate, upon 4. Total fortuitous loss of the reserved property;
his death, property reservable. (Balane, 5. Confusion or merger of rights, as when the
supra) reservatarios acquire the reservista’s right by
contract inter vivos; (Balane, supra)
6. Prescription or adverse possession. (Balane,
supra)
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Principle of Non-Impairment of Legitimes may demand that the same be fully satisfied. (Art.
General Rule: The testator cannot deprive his 906)
compulsory heirs of their legitime. (Art. 904)
Exception: Valid disinheritance General Rule: Anything a compulsory heir
receives by gratuitous title from the predecessor
General Rule: The testator cannot impose upon is considered an advance on the legitime and is
the same any burden, encumbrance, condition, or deducted from it. (Art. 909 & Art. 910)
substitution of any kind whatsoever. (Art. 904)
Exceptions:
Exceptions: 1. If the predecessor gave the compulsory heir
1. Parent in the interest of his family to keep any a donation inter vivos and provided that it was
manufacturing, agricultural or industrial not to be charged against the legitime. (Art.
enterprise intact may order the legitime of the 1062)
other children be paid in cash. (Art. 1080) 2. Testamentary dispositions made by the
2. Express prohibition of the partition of the predecessor to the compulsory heir, unless
estate for a period not exceeding 20 years. the testator provides that it should be
(Art. 1083) considered part of the legitime. (Art. 1063)
3. The family home shall continue despite the
death of one or both spouses or of the The impaired legitime of a compulsory heir shall
unmarried head of the family for a period of be filled up in the following manner:
ten years or for as long as there is a minor (a) It must first be taken from the part of the
beneficiary, and the heirs cannot partition the estate not disposed of by will.
same, unless the court finds compelling (b) If it is not sufficient, it must then be taken from
reasons therefor. (Family Code, Art. 159) the shares of the testamentary heirs,
4. Reserva Troncal (Art. 891) legatees, and devisees, proportionally. (Art.
855)
Renunciation or Compromise of Future
Legitime (Art. 905) Testamentary dispositions that impair or diminish
Every renunciation or compromise as regards the legitime of compulsory heirs shall be reduced
future legitime between the person owing it and on petition of the same insofar as they may be
his compulsory heir is void, and the latter may inofficious or excessive. (Art. 907)
claim the same upon the death of the former; but
they must bring to collation whatever they may INCOMPLETE
PRETERITION
have received by virtue of the renunciation or LEGITIME
compromise. Heir not entirely Total omission of the
forgotten heir
NOTE: The rights of the heirs are merely inchoate Less than the portion Total deprivation of
because it is only perfected upon the testator’s of the legitime legitime
death. Hence, there is still nothing to renounce. Remedy is to demand Effect is the total
for completion of annulment of the
No contract may be entered into with respect to legitime institution of heirs
future inheritance except in cases expressly
authorized by law. (Art. 1347, par. 2) Steps in Determining the Legitime of
Compulsory Heirs
Completion of Legitime (actio ad supplendam 1. Determination of the gross value of the estate
legitimam) at the time of the death of the testator;
Any compulsory heir to whom the testator has left 2. Determination of all debts and charges which
by any title less than the legitime belonging to him are chargeable against the estate;
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3. Determination of the net value of the estate Principles on Devises or Legacies of Usufruct
by deducting all the debts and charged from or Life Annuities or Pensions
the gross value of the estate; 1. If, upon being capitalized according to
4. Collation or addition of the value of all actuarial standards, the value of the grant
donations inter vivos to the net value of the exceeds the free portion, it has to be reduced,
estate; because the legitime cannot be impaired.
5. Determination of the amount of the legitime (Art. 911)
from the total thus found; 2. The testator can impose no usufruct or any
6. Imputation of all the value of all donations other encumbrance on the part that passes
inter vivos made to compulsory heirs against as legitime. (Art. 911)
their legitimes and of the value of all 3. Subject to the two rules stated above, the
donations inter vivos made to strangers compulsory heirs may elect between ceding
against the disposable free portion and to the devisee/legatee the free portion, or the
restoration to the hereditary estate if the proportional part thereof corresponding to the
donation is inofficious. If legitime is impaired, said legacy/devise, and complying with the
the following reductions shall be made: terms of the usufruct or life annuity or
a. First, reduce pro-rata non-preferred pension. (Art. 911)
legacies and devises, and the
testamentary dispositions. When Devise Subject to Reduction Consists
b. Second, reduce pro rata the preferred of Indivisible Real Property
legacies and devises. IF THE EXTENT OF IF THE EXTENT OF
c. Third, reduce the donations inter vivos REDUCTION IS REDUCTION IS ½
according to the inverse order of their LESS THAN ½ OF OR MORE OF THE
dates. (Art. 911) THE VALUE OF THE THING
d. Fourth, reduce the legitimes of the THING
illegitimate children. It shall be given to the It shall be given to the
7. Distribution of the residue of the estate in devisee. compulsory heirs.
accordance with the will of the testator.
In either case, there should be pecuniary
Donations inter vivos to Compulsory Heirs reimbursement to the party who did not get his
General Rule: Donations inter vivos to a physical portion of the thing devised. (Art. 912)
compulsory heir shall be charged to their legitime
(Art. 909) The devisee who is entitled to a legitime may
retain the entire property, provided its value does
Exception: If the predecessor gave the not exceed that of the disposable portion and of
compulsory heir a donation inter vivos and the share pertaining to him as legitime. (Art. 912)
provided that it was not to be charged against the
legitime. (Art. 1062) If the heirs or devisees do not choose to avail
themselves of the right granted in Art. 912, the
Donations inter vivos to Strangers thing devised should be disposed of by:
Donations made to strangers shall be charged to 1. Any other heir or devisee, who elects to do
the part of the estate which the testator could so, may acquire the thing and pay the parties
disposed of by will. (Art. 909) their respective shares in money;
2. If no heir or devisee elects to acquire it, it shall
Stranger – Anyone who does not succeed as a be sold at public auction and the net
compulsory heir. (Balane, supra) proceeds accordingly divided between the
parties concerned. (Art. 913)
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DISINHERITANCE NOTE: The disinherited heir can be represented

in the legitime and also to any intestate portion
Causes of Vacancy in Succession that he or she would have inherited:
(a) Disinheritance - The testator creates it • Only in the descending line, never in the
himself (Art. 916) ascending
(b) Repudiation - The heir rejects the inheritance • In collateral line, only with respect to
(Art. 1041) nephews and nieces.
(c) Incapacity/Predecease - Something happens
to the heir The disinherited parents shall not have the
usufruct or administration of the property which
Disinheritance constitutes the legitime. (Art. 923)
A compulsory heir may, in consequence of
disinheritance, be deprived of his legitime, for Ineffective Disinheritance
causes expressly stated by law. (Art. 915) Disinheritance without specification of the cause,
or for a cause the truth of which, if contradicted,
Requisites for Valid Disinheritance (WET2- is not proved, or which is not one of those set forth
LUP) in this Code, shall annul the institution of heirs
1. Effected only through a valid Will (Art. 916) insofar as it may prejudice the person
NOTE: Will containing disinheritance must be disinherited; but the devises and legacies and
probated. other testamentary dispositions shall be valid to
such extent as will not impair the legitime. (Art.
Disinheritance only occurs in testamentary 918)
succession. Its counterpart in intestate
succession is unworthiness. Effects of Ineffective Disinheritance
2. For a cause Expressly stated in the will (Art. 1. If the testator had made disposition of the
916, 918) entire estate, the testamentary disposition is
3. Cause must be certain and True (Art. 918) annulled only insofar as they prejudice the
4. Total; legitime of the person disinherited. It does not
5. It must be for a cause expressly stated by affect the dispositions of the testator with
Law (Art. 916, in relation to Art. 919-921) respect to the free portion
6. Unconditional; 2. If the testator did not dispose of the free
7. If the truth of the cause is denied, it must be portion, the compulsory heir will be given all
Proved by the proponent. (Art. 917) that he is entitled to receive as if the
disinheritance has not been made, without
Effects of Disinheritance prejudice to lawful dispositions made by the
• Total exclusion of the compulsory heir from testator in favor of others.
the inheritance, which includes his legitime, 3. Devisees, legacies and other testamentary
his share in the intestate portion, and any dispositions shall be valid to such extent as
testamentary disposition made in a prior will. will not impair the legitime. (Vitug, Civil Law
(Balane, supra at p. 437-438) Volume III, 2006 edition, p. 263)
NOTE: Therefore, the heir loses his legitime. INEFFECTIVE PRETERITION

As to the free portion, it passes through DISINHERITANCE
Substitution, Accretion, and Intestacy. Person disinherited The person omitted
may be any must be a compulsory
• The children or descendants of the person compulsory heir heir in the direct line
disinherited shall take his or her place and Express Implied
shall preserve the rights of compulsory heirs
with respect to the legitime. (Art. 923)
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Intentional Either intentional or d. The accusation must be found to be

unintentional groundless. The judgment of acquittal
Partial annulment of Effect: Total annulment must state either no crime was committed
institution of heirs of institution of heirs or that the accused did not commit the
crime. An acquittal on reasonable doubt
Preterition is total omission from the inheritance, will not be a ground of disinheritance.
without the heir being expressly disinherited. The e. This ground also applies to disinheritance
implied basis of the rule on preterition is of parents, ascendants, and spouse.
inadvertent omission by the testator. Thus, if the
testator explicitly disinherits the heir, Article 854 3. When a child or descendant has been
on preterition will not apply. Should the convicted of adultery or concubinage with the
disinheritance be ineffective, for absence of one spouse of the testator;
or other of the requisites for a valid disinheritance, a. Final conviction is required.
the heir is simply entitled to demand his rightful b. There must be a valid marriage between
share. (Balane, supra) the spouse and the testator.
c. This ground also applies to disinheritance
GROUNDS FOR DISINHERITANCE of parents and ascendants. (Balane,
supra)
Grounds for Disinheritance of Legitimate or
Illegitimate Children and Descendants (Art. 4. When the child or descendant, by fraud,
919) violence, intimidation, or undue influence,
1. When the child or descendant has been causes the testator to make a will or to
found guilty of an attempt against the life of change one already made;
the testator, his or her spouse, descendants,
or ascendant; 5. A refusal without justifiable cause to support
a. Final conviction is required. the parent or ascendant who disinherits such
b. It includes all stages of commission of a child or descendant;
crime. (Attempted, frustrated, or a. The obligation to support must be proven.
consummated) b. There must be a need and demand for
c. This ground also applies to disinheritance support.
of parents, ascendants, and spouse. c. The demand must be unjustifiably
d. Felony must be intentional (not through refused.
negligence) d. This ground also applies to disinheritance
of parents, ascendants, and spouses
2. When a child or descendant has accused the
testator of a crime for which the law NOTE: Refusal may be justified, if the obligor
prescribes imprisonment for six years or does not have enough resources for all whom
more, if the accusation has been found he is obliged to support. The ascendants are
groundless; only third in the hierarchy of preference
a. It includes filing of a complaint before the among claimants of support. (Family Code,
prosecutor, or presenting incriminating Art. 200, par. 3)
evidence against the testator, or even
suppressing exculpatory evidence. 6. Maltreatment of the testator by word or deed,
b. It may be made by the heir in a by the child or descendant;
proceeding as a complainant or witness a. The verbal or physical assault must be of
in a criminal case. a serious nature.
c. The testator must be acquitted. b. No conviction is required. It is not even
required that a criminal case be filed.
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By word – Slander, offensive language, 4. When the parent or ascendant has been
insult, libel. May be spoken or written. convicted of adultery or concubinage with the
By deed – No need for violence. It could be spouse of the testator;
something which caused the testator to be 5. When the parent or ascendant by fraud,
humiliated. violence, intimidation, or undue influence
causes the testator to make a will or to
7. When a child or descendant leads a change one already made;
dishonorable or disgraceful life; 6. The loss of parental authority for causes
a. The conduct must be habitual. (Balane, specified in this Code;
supra) • It refers to culpable loss of parental
8. Conviction of a crime which carries with it the authority and excludes attainment of age
penalty of civil interdiction. of majority. (Balane, supra) The causes
a. Final conviction is required. for cuplable loss of parental authority
b. The accessory penalty of civil interdiction include:
is imposed with the principal penalties of a. judicial deprivation of parental
death, reclusion perpetua, and reclusion authority on the ground of sexual
temporal. (Balane, supra) abuse;
b. loss of parental authority as a result of
NOTE: The enumeration is exclusive. judicial declaration of abandonment of
the child
Grounds for Disinheritance of Legitimate or c. judicial deprivation of parental
Illegitimate Parents or Ascendants (Art. 920) authority based on:
1. When the parents have abandoned their i. excessively harsh or cruel
children or induced their daughters to live a treatment of child
corrupt or immoral life, or attempted against ii. giving the child corrupting orders,
their virtue; counsel or example
a. Includes all conduct constituting a iii. compelling the child to beg; or
repeated or total refusal or failure to care iv. subjecting the child or allowing him
for a child. to be subjected to acts of
b. This applies when the parents willfully left lasciviousness
the children to fend for themselves. • No conviction is required.
c. It is not restricted to those instances of 7. The refusal to support the children or
abandonment penalized by law. descendants without justifiable cause;
d. Inducement- same as deprivation of 8. An attempt by one of the parents against the
parental authority; only applies to female life of the other, unless there has been a
descendants reconciliation between them.
e. Attempt on virtue- no conviction is a. Final conviction is not required.
required b. It includes all stages of commission of a
2. When the parent or ascendant has been crime. (Attempted, frustrated, or
convicted of an attempt against the life of the consummated)
testator, his or her spouse, descendants, or c. Even if parents are not married, it is still a
ascendants; ground. The parents do not need to be
3. When the parent or ascendant has accused spouses. However, the testator must be
the testator of a crime for which the law a common child.
prescribes imprisonment for six years or d. Reconciliation between the parents
more, if the accusation has been found to be removes the right of a child or
false; descendant to disinherit and rescinds a
disinheritance already made.
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NOTE: The enumeration is exclusive. actions subsequent to the act of disinheritance.

(Vitug, supra, p. 264)
Grounds for Disinheritance of a Spouse (Art.
921) Reconciliation may be done by:
1. When the spouse has been convicted of an 1. Concrete and express pardon extended to
attempt against the life of the testator, his or the offender, who accepts it.
her descendants, or ascendants; A general pardon extended by the testator on
2. When the spouse has accused the testator of his deathbed to all who have offended him
a crime for which the law prescribes will not suffice.
imprisonment of six years or more, and the
2. Unequivocal conduct toward the offending
accusation has been found to be false;
heir, by which the intent to forgive must be
3. When the spouse by fraud, violence,
clear.
intimidation, or undue influence cause the
testator to make a will or to change one
already made; OCCURRED BEFORE OCCURRED
4. When the spouse has given cause for legal DISINHERITANCE IS AFTER
separation; MADE DISINHERITANCE
a. A decree of legal separation is not IS MADE
required. Right to disinherit is Disinheritance is set
b. The grounds for legal separation need extinguished aside. (Art. 922)
not be proven, unless contested by the
heir. Effects of Setting Aside the Disinheritance
c. If there is already a decree of legal
1. The disinherited heir is restored to his
separation, the ground is conclusive, but
legitime.
there is still a need to disinherit by will.
5. When the spouse has given grounds for the 2. If the disinheriting will did not dispose of the
loss of parental authority; disposable portion, the disinherited heir is
o Judicial decree is not required. Giving entitled to his proportionate share, if any.
grounds therefore is sufficient. (Art. 921) 3. If the disinheriting will or any subsequent will
6. Unjustifiable refusal to support the children or disposed of the disposable portion in favor of
the other spouse. testamentary heirs, legatees or devisees,
such dispositions remain valid.
NOTE: The enumeration is exclusive.
Revocation of Disinheritance
1. Reconciliation (Art. 922)
2. Subsequent institution of the disinherited
heir.
3. Nullity of the will, which contains the
disinheritance.
Reconciliation
This refers to the resumption of genuine cordial
relationship between the testator and the
disinherited heir, approximating that which
prevailed before the testator learned of the cause
for disinheritance, reciprocally manifested by their
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SUMMARY OF GROUNDS FOR DISINHERITANCE (ARTS. 919, 920 & 921)
CHILD/ PARENT/
GROUND SPOUSE
DESCENDANT ASCENDANT
Attempt against the life of the testator, √ √ √
spouse, ascendant, descendant
Accusation of a crime with penalty of √ √ √
six years
Adultery and Concubinage with the √ √ N/A
spouse of testator
Induce testator to make/change the √ √ √
will.
Support unjustifiably refused √ √ Unjustifiable refusal to

support the children or
the other spouse
Maltreatment of the testator by word √ N/A N/A
or deed
Leading a dishonorable or disgraceful √ N/A N/A
life
Conviction of a crime which carries √ N/A N/A
with the penalty of civil interdiction
Abandonment of Children, N/A √ N/A
Inducement to live a corrupt or moral
life, or attempted against their virtue
Loss of parental authority N/A √ It is sufficient that the
spouse has given
grounds for loss of
parental authority
Attempt by one Parent against the Life N/A √ N/A
of the Other
Giving Cause for Legal Separation N/A N/A √
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LEGACIES AND DEVISES Where the will is silent as to who shall pay or
deliver the legacy/devise:
Legacy – Testamentary disposition of personal 1. If there is an administration proceeding, there
property by particular title. (Balane, supra) is a presumption that such legacy or devise
constitutes a charge against the decedent’s
Devise – Testamentary disposition of real estate (Paras, supra, 2016)
property by particular title. (Balane, supra) 2. If there are no administration proceedings, it
is a charge upon the heirs, in the same
LEGATEE / proportion in which they may inherit. (Art.
HEIR
DEVISEE 926, par. 2)
One who succeeds Those who succeed
to the whole or a to definite, specific, EXTENT OF LIABILITY
fractional part of the and individual LEGATEE / DEVISEE HEIR
inheritance properties If charged with a If charged with a
(Balane, supra) legacy or devise, he or legacy or devise, he
she shall be liable only or she shall not be
Things And Rights Which May Be Bequeathed for the extent of the liable beyond the
of Devised value of the legacy or amount of the free
All things and rights which are within the devise received. portion given to him.
commerce of man may be bequeathed or (Arts. 925-926; Tolentino, supra)
devised. (Art. 924)
NOTE: It is not required that the thing devised or NOTE: Since legacies and devises are to be
bequeathed belong to the testator. Also, it must taken from the disposable free portion of the
not impair the legitimes. estate, the provisions on institution of heirs are
generally applicable to them.
Persons Who May Be Charged With Legacies
And Devises When Two Or More Heirs Take Possession Of
A testator may charge with legacies and devises The Estate
not only his compulsory heirs but also the If two or more heirs take possession of the estate,
legatees and devisees. (Art. 925) they shall be solidarily liable for the loss or
destruction of a thing devised or bequeathed,
General Rule: Estate is charged with the legacy even though only one of them should been
or devise. negligent. (Art. 927)
Exception: Subsidiary legacy or devise Liability for Eviction

(Paras, Civil Code of the Philippines Annotated, General Rule: The estate is liable for eviction.
2016) Exception: In case of a subsidiary legacy or
devise, the heir, legatee or devise charged shall
Subsidiary legacy or devise – When the be liable in case of eviction, if the thing is
testator imposes the burden on an heir or a indeterminate and is indicated only by its kind.
legatee or devisee; the heir, legatee, or devisee (Art. 928)
charged will be bound to deliver the legacy or
devise to the person specified. As far as the heir, Thing Owned In Part By Testator
legatee, or devisee charged is concerned, it will General Rule: Conveys only interest or part
be a mode. (Balane, supra) owned by testator (Art. 929)
Exception: If testator otherwise provides
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1. He may convey more than what he owns and i. If thing was acquired onerously
the estate should try to acquire the part or by legatee/devisee – The
interest owned by other parties. If other legatee/devisee is entitled to
parties are unwilling to alienate, the estate reimbursement.
should give the legatee/devise the monetary ii. If thing was acquired gratuitously
equivalent. (by analogy with Art. 931) by legatee/ devisee – Nothing
2. He may convey less than what he owns. (Art. more is due.
794)
3. If thing was owned by testator at time will was
Thing Owned by Another (Arts. 930-931) made and the legatee/devisee acquired the
thing from the testator —The legacy/devise
1. If the testator orders acquisition of the thing –
should be deemed revoked
The order should be complied with. If the
owner is unwilling to part with the thing, the
legatee/devisee should be given the Legacy / Devise to Remove an Encumbrance
monetary equivalent. (Art. 931) Over a Thing Belonging to the Testator (Art.
932, par. 2)
2. If the testator erroneously believed that the If the testator expressly orders that the thing be
thing belonged to him –The legacy/devise is freed from such interest or encumbrance, the
void. legacy or devise shall be valid to that extent.
Exception: If subsequent to the making of
NOTE: The legacy/ devise is valid, if the
the disposition, the thing is acquired by the
encumbrance can be removed for a
testator onerously or gratuitously, the
consideration.
disposition is validated. (Art. 930)
Legacy / Devise of a Thing Pledged or

3. If the testator knew that the thing did not Mortgaged (Art. 934)
belong to him but did not order its acquisition If the testator should bequeath or devise
– The disposition should be considered valid. something pledged or mortgaged to secure a
There is an implied order to acquire the recoverable debt before the execution of the will,
property. (Paras, supra) the estate is obliged to pay the debt, unless the
contrary intention appears.
Thing Already Owned by the Legatee/Devisee
(Arts. 932-933) The same rule applies when the thing is pledged
1. If thing already belonged to legatee/devisee or mortgaged after the execution of the will. (Art.
at time of execution of will – The 934, par. 2)
legacy/devise is void even if legatee/devisee
alienates the property subsequently unless Any other charge, perpetual or temporary, with
the acquirer is the testator himself. (Balane, which the thing bequeathed is burdened, passes
supra citing Manresa) with it to the legatee or devisee. (Art. 934, par. 3)
2. If thing was owned by another person at time Legacy / Devise Subject to a Usufruct
of making the will and thereafter it is acquired If the thing bequeathed should be subject to a
by legatee/devisee: usufruct, the legatee or devisee shall respect
a. If testator erroneously believed that he such right until it is legally extinguished. (Art. 946)
owned the thing – The legacy/devise
is void. Legacy of Credit or Remission (Art. 935-937)
b. If testator knew that he did not own the 1. Applies only to the amount still unpaid at the
thing: time of testator’s death. (Art. 935);
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2. Revoked if testator subsequently sues the 2. If the choice belongs to an heir, legatee, or
debtor for collection. (Art. 936); devisee – The right is transmitted to his own
3. If generic, applies only to those existing at the heirs.
time of the execution of the will, unless NOTE: The choice is irrevocable. (Art. 940, par.
otherwise provided. (Art. 937 and 793) 3)
Legacy / Devise to a Creditor (Art. 938) Generic Legacies or Devises

A legacy or devise made to a creditor shall not be RULES ON VALIDITY (Art. 941)
applied to his credit, unless the testator so GENERIC LEGACY GENERIC DEVISE
expressly declares. Valid even if no such Valid only if there
movable exists in the exists such an
If the testator provides that the devise or legacy estate upon the immovable in the
will be imputed to the debt, and if the debt testator’s death. The estate at the time of
exceeds the legacy or devise, the excess may be estate will simply have the testator’s death
demanded as an obligation of the estate. to acquire what is
given by legacy.
Testamentary Instruction to Pay a Debt (Art.
939) Right of Choice in Generic Legacies or
INSTRUCTION INSTRUCTION TO PAY Devises (Art. 941-943)
TO PAY A NON- MORE THAN WHAT IS General Rule: The executor or administrator,
EXISTING DEBT DUE acting for the estate.
The disposition The instruction should Exception: When the testator expressly leaves
should be be effective only as to the right of choice to the heir, or the legatee or
considered as not what is due, unless the devisee, on whom the obligation to give is
written. contrary intention imposed. (Subsidiary legacy or devise).
appears.
Limitation on choice
Alternative Legacies or Devises – One which The persons who have the right of choice shall
provides that among several things mentioned, comply with the legacy by the delivery of a thing
only one is to be given. which is neither of inferior nor of superior quality.
(Art. 941)
General Rule: The choice is left to the:
1. Direct legacy or devise – Estate, through If the person who shall make the choice cannot
the executor or administrator; do so:
2. Subsidiary legacy or devise – Heir, legatee, 1. If the choice belonged to the executor or
devisee charged (Tolentino, supra) administrator – The right is transmissible to
his successor in office;
Exception: If the testator provides that the 2. If the choice belongs to an heir, legatee, or
legatee or devisee himself may choose, or that a devisee – The right is transmitted to his own
third party may choose. (Art. 942) heirs.
If the person who shall make the choice dies NOTE: The choice is irrevocable. (Art. 940)
before the choice is made: (Art. 940, par. 2)
1. If the choice belonged to the executor or If the person to whom the testator has expressly
administrator – The right is transmissible to given the right to choose does not exercise his
his successor in office; right, it shall be understood that he has
renounced it and the person obliged to pay the
legacy or devise may deliver any of the things
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designated, provided it is not of the lowest or of DEMANDABILITY, OWNERSHIP, AND

the highest quality. (Tolentino, supra) FRUITS
PURE AND WITH A SUSPENSIVE
Legacy for Education (Art. 944) DETERMINATE TERM OR CONDITION
Duration – Age of majority or the completion of a OR GENERIC
professional, vocation, or general course Upon the Upon the arrival of the
whichever comes later. In the latter instance, only testator’s death term or upon the
if the legatee pursues his studies diligently. happening of the
condition, as the case
Amount (Art. 944, par. 3) may be
1. The amount fixed by the testator; or (Art. 947; Paras, supra)
2. That which is proper, as determined by:
a. The social standing and circumstances of When Ownership Vests
the legatee, and 1. Pure and determinate property – Upon
b. The value of the disposable portion of the testator’s death
estate. 2. Pure and generic property –
a. If the property came from the testator’s
estate – Upon testator’s death
Legacy for Support (Art. 944)
b. If the property is acquired from a third
Duration – During the lifetime of the legatee,
person – Upon acquisition
unless the testator provided otherwise
3. Devises or legacies with a suspensive term –
Upon arrival of the term, but the right to it
Amount (Art. 944, par. 3-4)
vests upon the testator’s death
1. The amount fixed by the testator; or 4. Devises or legacies with a suspensive
2. That which the testator, during his lifetime, condition – Upon the testator’s death, if the
used to give the legatee by way of support, condition is fulfilled. (Art. 948; Paras, supra)
unless markedly disproportionate to the value
of the disposable portion.
Fruits
3. That which is reasonable, as determined by:
1. Pure and determinate property – Upon
a. The social standing and circumstances of
testator’s death
the legatee, and
2. Pure and generic property – Upon
b. The value of the disposable portion of the
determination, unless the testator provides
estate.
otherwise
3. Devises or legacies with a suspensive term –
Legacy of a Periodical Pension Upon arrival of the term
If a periodical pension, or a certain annual, 4. Devises or legacies with a suspensive
monthly, or weekly amount is bequeathed, the condition – Upon the happening of the
legatee may petition the court for the first condition, unless the testator provides
installment upon the death of the testator, and for otherwise (Art. 948; Paras, supra)
the following ones which shall be due at the
beginning of each period; such payment shall not
NOTE: If the legacy or devise is of a specific and
be returned, even though the legatee should die
determinate thing pertaining to the testator, the
before the expiration of the period which has
legatee or devisee do not acquire the income
commenced. (Art. 945)
which was due and unpaid before the testator’s
death. (Art. 948)
From the moment of the testator’s death, the

specific and determinate thing bequeathed shall
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be at the risk of the legatee or devisee, who shall 4. Legacies for education;
bear its loss or deterioration, and shall be 5. Legacies or devises of a specific, determinate
benefited by its increase or improvement, without thing which forms a part of the estate;
prejudice to the responsibility of the executor or 6. All others, pro-rata
administrator. (Art. 948)
REDUCTION OF ORDER OF
Obligation to Deliver the Thing Bequeathed LEGACIES AND PREFERENCE OF
The thing bequeathed shall be delivered with all DEVISES DEVISES AND
its accessories and accessories and in the (ART. 911) LEGACIES
condition in which it may be upon the death of the (ART. 950)
testator. (Art. 951) Non-preferred In the order of
legacies or devises preference, the last is
The heir, charged with a legacy or devise, or the will be reduced pro- to be reduced first and
executor or administrator of the estate, must rata and the preferred the first is to be
deliver the very thing bequeathed if he is able to legacies or devises reduced last.
do so and cannot discharge this obligation by will be reduced last.
paying its value. (Art. 952, par. 1) Applies when the Applies when the
legitimes have been reduction is due to
Legacies of Money Paid in Cash impaired reasons other than
Legacies of money must be paid in cash, even impairment of
though the heir or the estate may not have any. legitimes
(Art. 952, par. 2)
Rules on Acceptance and Repudiation of
Necessary Expenses for the Delivery of the Devices or Legacies
Thing Bequeathed General Rule: Acceptance may be total or
The expenses necessary for the delivery of the partial. (Art. 954)
thing bequeathed shall be for the account of the Exception: If the legacy or devise is partly
heir or the estate, but without prejudice to the onerous and partly gratuitous, the recipient
legitime. (Art. 952 par. 3) cannot accept the gratuitous part and renounce
the onerous part. Any other combination is
Possession of the Thing Bequeathed permitted. (Art. 954)
The legatee or devisee cannot take possession of
the thing bequeathed upon his own authority, but Acceptance or Repudiation by Heirs of
shall request its delivery and possession of the Legatee or Devisee (Art. 954, par. 2)
heir charged with the legacy or devise, or of the If the legatee or devisee dies before accepting or
executor or administrator of the estate should he renouncing the devise or legacy, his heirs shall
be authorized by the court to deliver it. (Art. 953) exercise such right as to their pro-indiviso share,
applying the rules in Article 954.
Order of Preference in Case Estate is
Insufficient to Cover all Legacies and Devices TWO LEGACIES / DEVISES TO THE SAME
(Art. 950) RECIPIENT (ART. 955)
If the estate should not be sufficient to cover all both are one is gratuitous AND
the legacies or devises, their payment shall be gratuitous or the other is onerous
made in the following order: onerous
1. Remuneratory legacies or devises; The recipient The recipient cannot
2. Legacies or devises declared by the testator may accept or accept the gratuitous and
to be preferential; renounce either renounce the onerous.
3. Legacies for support; or both.
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Any other combination is (b) If the reversion is by virtue of redemption in a

permitted. sale with pacto de retro.
Legacy or Devise to a Compulsory Heir 3. Total Loss: If the thing bequeathed or

Any compulsory heir who is at the same time a devised is totally lost during the lifetime of the
legatee or devisee may waive the inheritance and testator, or after his death without the heir’s
accept the legacy or devise, or renounce the latter fault. (Art. 957)
and accept the former, or waive or accept both.
(Art. 955 par. 2) 4. If the legacy is a credit against a third person
or the remission of a debt, and the testator,
NOTE: For acceptance and repudiation of subsequent to the making of the will brings an
devices or legacies, the testator’s wishes are action against such debtor for payment. (Art.
supreme. All the rules apply in the absence of 936)
stipulation providing otherwise. (Balane, supra) 2.
Repudiation by or Incapacity of Legatee or Mistake in the Name of the Thing Bequeathed

Devisee (Art. 956) or Devised
If the legatee or devisee cannot or is unwilling to A mistake as to the name of the thing bequeathed
accept the legacy or devise, or if the legacy or or devised, is of no consequence, if it is possible
devise for any reason should become ineffective, to identify the thing which the testator intended to
the following steps apply: bequeath or devise. (Art. 958)
1. Follow substitution, if any.
2. Then accretion, ————- end of topic ————-
3. Lastly, intestacy as it shall be merged to the
mass of the estate. C. LEGAL OR INTESTATE SUCCESSION
I. GENERAL PROVISIONS
When Legacy/Devise can be Revoked by
Operation of Law Legal or Intestate Succession – Takes place by
1. Transformation: If the testator transforms operation of law in the absence of a valid will.
the thing bequeathed or devised in such a (Paras, supra)
manner that it does not retain its form and
denomination. (Art. 957) Instances when Legal or Intestate Succession
Operates (Art. 960)
2. Alienation: If the testator, by any title or for 1. If a person dies without a will, or with a void
any cause, alienates the thing bequeathed or will, or one which has subsequently lost its
devised or any part thereof. (Art. 957) validity;
2. When the will does not institute an heir to, or
NOTE: The alienation revokes the legacy or dispose of all the property belonging to the
devise even if for any reason the thing reverts to testator. In such case, legal succession shall
the testator (e.g. nullity of the contract) (Paras, take place only with respect to the property of
supra) which the testator has not disposed;
3. If the suspensive condition attached to the
Exceptions: institution of heir does not happen or is not
(a) If the reversion is caused by the annulment of fulfilled, or if the heir dies before the testator,
the alienation and the cause for annulment or repudiates the inheritance, there being no
was vitiation of consent on the grantor’s part, substitution, and no right of accretion takes
either by reason of incapacity or of duress. place;
(Fernandez v. Dimagiba, G.R. No. L-23638,
1967)
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4. When the heir instituted is incapable of NOTE: The direct line is preferred over the
succeeding, except in cases provided in the collateral, even if they are of the same
Civil Code. degree
2. The distinction between legitimate and
Other Causes of Intestacy (Tolentino, supra) illegitimate filiation;
1. Happening of a resolutory condition; 3. The rule of division by line in the ascending
2. Expiration of a resolutory term; line;
3. Preterition (Balane, supra) 4. The distinction between full-blood and half-
blood relationship among brothers and
sisters, as well as nephews and nieces;
NOTE: Intestacy operates on the same principles
5. Representation; and
as succession to the legitime. They are both
6. Concurrence of nephews and nieces and
governed by the rules on exclusion and
uncles and aunts (Paras, supra)
concurrence.
a. Relationship
Four Basic Rules of Intestacy Proximity of relationship is determined by the
1. Rule of Relationship – the heirs must be number of generations. (Art. 963)
related to the decedent.
Degree – One generation

Four Kinds of Relationships
a) Ascendants and Descendants;
b) Collaterals; Computation of Degrees
c) Marriage; 1. Direct line – No legal limit to the number of
d) State of sovereign degrees for entitlement to intestate
succession.
2. Rule of Preference of Lines – the 2. Collateral line – Intestate succession extends
descending line excludes the ascending and only to the fifth degree of collateral
the collateral, and the ascending excludes relationship (Art. 1010)
the collateral. (Art. 965)
Line – Series of degrees, which may be direct or
Three lines of relationship collateral
a) Descending line
(a) Direct line – Constituted by the series of
b) Ascending line
degrees among ascendants and
c) Collateral line
descendants
3. Rule of Proximity of Degree – the nearer i. Descending line – Unites the head of
exclude the more remote, without prejudice to the family with those who descend from
representation. (Art. 962, par. 1) him
ii. Ascending line – Binds a person with
4. Rule of Equality Among Relatives of the those from whom he descends
Same Degree – the nearer exclude the more In the direct line, ascend is made to the
remote, those of equal degree should inherit common ancestor.
in equal shares. (Art. 962, par. 2) There is no legal limit to the number of
degrees for entitlement to intestate
Exceptions to the Rule of Equality in the Same succession
Degree (b) Collateral line – Constituted by the series of
1. The rule of preference of lines; degrees among persons who are not
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ascendants and descendants, but who come Relatives must be in the same kind of relationship
from a common ancestor for accretion to take place. This is because of the
In the collateral line, ascent is made to the principle of preference of lines in intestate
common ancestor and then descend is succession. (Balane, supra)
made to the person with whom the
computation is to be made. RENUNCIATION IN INTESTACY
Intestate succession extends only to the 5th If the inheritance should be repudiated by the
degree of collateral relationship nearest relative, should there be one only, or by
all the nearest relatives called by law to succeed,
should there be several, those of the following
Full Blood Relationship
degree shall inherit in their own right and cannot
Full blood relationship is that existing between
represent the person or persons repudiating the
persons who have the same father and the same
inheritance. (Art. 969)
mother. (Art. 967, par. 1)
Effect of Renunciation by All in the Same

Half Blood Relationship
Degree
Half-blood relationship is that existing between
The right of succession should first be passed on
persons who have the same father, but not the
the heirs in succeeding degrees, before the next
same mother, or the same mother, but not the
line can succeed.
same father. (Art. 967, par. 2)
1. The descending line inherits first.
NOTE: If ALL the descendants of a certain
Importance of Distinction Between Full Blood
degree renounce, succession passes to the
and Half Blood Relationship (Arts. 1006, 1008)
descendants of the next degree, and so on.
Ratio of 2:1 for full-blood and half-blood
2. The ascending line inherits next.
relationship in Articles 1006 and 1008, for
brothers and sisters and nephews and nieces. NOTE: Should no one be left in the
descending line, the heirs in the ascending
line acquire the right of succession, in order
ACCRETION IN INTESTACY of degrees of proximity.
If there are several relatives of the same degree, 3. The collateral line inherits last.
and one or some of them are unwilling or
NOTE: Only if all the descendants and
incapacitated to succeed, his portion shall accrue
ascendants renounce will the collateral
to the others of the same degree, save the right
relatives acquire the right to succeed.
of representation when it should take place. (Art.
968)
The effect of renunciation by all in the same
degree applies in cases of predecease or
Accretion applies among heirs of the same
incapacity by all in the same degree, except in
degrees in the following instances: (Arts. 1015,
cases where representation is proper.
1016)
1. Predecease;
b. Right of Representation
2. Incapacity;
Representation - a right created by fiction of law,
3. Renunciation
by virtue of which the representative is raised to
the place and the degree of the person
HOWEVER, in case of predecease or incapacity, represented, and acquires the rights which the
representation, if proper will prevent accretion latter would have if he were living or if he could
from occurring. (Balane, supra) have inherited. (Art. 970; Tumbokon v. Legaspi,
G.R. No. 153736, 2010)
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Right of representation
In order that representation may take place, it is DECEDENT IS DECEDENT IS AN
necessary that the representative himself be A LEGITIMATE ILLEGITIMATE
capable of succeeding the decedent. (Art. 973) CHILD CHILD
The right of The right of
representation is representation is
Representation only applies in compulsory and
given only to granted to both
intestate succession in the direct descending line
legitimate legitimate and
(Art. 972) and in one instance in the collateral line
descendants. illegitimate
in the case of nephews and nieces representing
descendants.
brothers and sisters of the deceased (Art. 975)
(Art. 992)
In the collateral line, the right of representation Representation of and by an Adopted Child
extends no further than the nephews and nieces. An adopted child can neither represent nor be
Grandnephews and grandnieces are not entitled represented. (Balane, supra at p. 484)
to inherit by right of representation in the collateral
line. (In re: Intestate Estates of Delgado & Rustia An adopted child cannot represent his/her
v. Heirs of Vda. De Damian, G.R. No. 155733, adopter in the estate of his/her adopter’s
2006) grandparents because the relationship between
the adopter and the adopted does not go beyond
NOTE: There is no representation in their relatives of either party. (Teotico v. Del Val,
testamentary succession and in any type of G.R. No. L-18753, 1965)
succession in the direct ascending line. (Paras,
supra) Nonetheless, an adopted child succeeds to the
property of the adopting parents in the same
manner as a legitimate child. (Art. 979, par. 2)
Instances When Representation Operates
(PID)
1. Predecease; Representation by a Renouncer
A renouncer cannot be represented; however, he
2. Incapacity or unworthiness;
can represent the person whose inheritance he
3. Disinheritance (Paras, supra) has renounced. (Art. 976)
NOTE: Representation does not apply in Operation of Representation

renunciation. (Art. 977) Per stirpes – The representative or
representatives receive only what the person
Right of Representation of Illegitimate represented would have received. If there are
Children (Art. 902) more than one representative in the same
The rights of illegitimate children set forth in the degree, then the portion is divided equally,
articles on legitimes and intestate succession are without prejudice to the distinction between
transmitted upon their death to their descendants, legitimate and illegitimate children, when
whether legitimate or illegitimate. applicable. (Balane, supra)
Rules to Qualify as a Representative

1. The representative must be qualified to
succeed the decedent. (Art. 973)
2. The representative need not be qualified to
succeed the person represented. (Art. 971)
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3. The person represented need not be qualified a. Exclude parents, collaterals, and the
to succeed the decedent. State
NOTE: The representative does not succeed the b. Concur with surviving spouse, and
person represented but the one whom the person illegitimate children or descendants
represented would have succeeded. (Art. 971) c. Excluded by no one
Representation 2. Illegitimate Children or Descendants (Arts.

BY BY NEPHEWS 983, 988-994)
GRANDCHILDREN AND NIECES a. Exclude parents of illegitimate children,
If all children are If they survive with collaterals, and the State;
disqualified, the their uncles and
b. Concur with surviving spouse,
grandchildren aunts, they shall legitimate children, and legitimate
inherit by inherit from the parents;
representation. (Art. deceased by
c. Excluded by no one
982) representation.
If all their uncles and 3. Legitimate parents (Arts. 985-986)

aunts are a. Exclude collaterals and the State;
disqualified from b. Concur with illegitimate children and
inheriting the surviving spouse;
(predeceased, c. Are excluded by legitimate children
incapacitated or
unworthy,
4. Parents of illegitimate children (Arts. 993-
disinherited), they
994)
inherit in equal
a. Exclude collaterals and the State;
portions. (Art. 975)
b. Concur with the surviving spouse;
c. Excluded by legitimate children and
II. ORDER OF INTESTATE SUCCESSION illegitimate children
Intestate Heirs (Paras, supra)
1. Legitimate Children or Descendants (Art. 5. Surviving spouse (Arts. 995-1002)
979) a. Excludes collaterals other than
brothers, sisters, nephews, nieces, and
2. Illegitimate Children or Descendants (Art.
the State;
988, 990, 992)
b. Concur with legitimate children,
3. Legitimate Parents or Ascendants (Art. 986)
illegitimate children, legitimate parents,
4. Parents of Illegitimate Children (Art. 993) parents of illegitimate children,
5. Surviving Spouse (Art. 994) brothers, sister, nephews and nieces;
6. Brothers, Sisters, Nephews, Nieces (Arts. c. Excluded by no one
1004-1008)
7. Other Collateral up to the fifth degree (Art. 6. Brothers and sisters, nephews and nieces
1009) (Arts. 1003-1008)
8. State (Art. 1011) a. Exclude all other collaterals and the
State;
Rules of Exclusion and Concurrence b. Concur with the surviving spouse;

1. Legitimate Children or Descendants (Arts.
978-982)
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c. Excluded by legitimate children,

illegitimate children, legitimate parents, Partial Intestacy (Balane, supra)
and parents of illegitimate children
Where a decedent left a will disposing of a part,
but not all, of the disposable portion, the following
7. Other collaterals up to the fifth degree (Arts. steps may solve the problem:
1009-1010)
1. Trace where the free portion went in total
a. Exclude collaterals in more remote
intestacy.
degree and the State;
2. The testamentary provision should be carried
b. Concur with collaterals in the same
out first, then what is left of the free portion
degree;
should then be given to the intended
c. Excluded by legitimate children, beneficiary in intestacy. (Balane, supra)
illegitimate children, legitimate parents,
parents of illegitimate children,
surviving spouse, brothers and sisters,
nephews and nieces;
8. State (Arts. 1011-1014)

a. Excludes no one;
b. Concurs with no one;
c. Excluded by everyone
Iron Curtain Rule / Barrier Principle /

Principle of Absolute Separation
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. (Art. 992)
The right of representation is not available to

illegitimate descendants of legitimate children in
the inheritance of a legitimate grandparent. (Diaz
v. Intermediate Appellate Court, G.R. No. L-
66574, 1990)
Person to be Represented
ILLEGITIMATE LEGITIMATE CHILD
CHILD
His or her Only his or her
descendant whether legitimate descendants
legitimate or can represent him, his
illegitimate, may or her illegitimate
represent him. descendants cannot
represent him. (Vda. De
Crisologo v. Cam G.R.
No. L-44051, 1985)
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COMBINATIONS OF LEGITIMES AND INTESTATE SUCCESSION

(Arts. 888-889, 892-901, 903, 983, 986-987, 991, 993-1001, 1004-1008, 1011)
HEIRS LEGITIME INTESTACY TOTAL

Legitimate Children 1/2 divided equally 1/2 divided Whole estate divided
Alone equally equally
Legitimate Children LC – 1/2 divided equally Residue left shall Whole estate divided
and Illegitimate be divided among among them, observing the
ILC – 1/2 of share of 1
Children them, observing 2:1 ratio
LC
the 2:1 ratio
Legitimate Children LC – 1/2 divided equally Residue left shall Whole estate divided
and Surviving Spouse be divided among equally
Spouse – Share of 1 LC
them equally
One Legitimate Child LC – 1/2 1/4 goes to the LC – 1/2
and Surviving Spouse spouse
Spouse – 1/4 Spouse – 1/2
Legitimate Children, LC – 1/2 Residue left shall Whole estate divided
Surviving Spouse, Spouse – share of 1 LC be divided among among them, observing the
Illegitimate Children them, observing 2:1 ratio
ILC – 1/2 of share of 1
the 2:1 ratio
LC
Legitimate Parents LP – 1/2 1/2 goes to the Whole estate divided
Alone parents equally
Legitimate 1/2 1/2 Whole estate divided
Ascendants Other among them, observe rules
than Parents in proximity in degree, and
division by line
Legitimate Parents LP – 1/2 1/4 goes to the LP – 1/2
and Illegitimate illegitimate
ILC – 1/4 ILC – 1/4
Children children
Legitimate Parents LP – 1/2 1/4 goes to the LP – 1/2
and Surviving Spouse spouse
Legitimate Parents, LP – 1/2 1/8 goes to the LP – 1/2
Surviving Spouse, and ILC – 1/4 spouse ILC – 1/4
Illegitimate Children
Illegitimate Children ILC – 1/2 1/2 goes to Whole estate divided
Alone illegitimate equally
children
Illegitimate Children ILC – 1/3 1/6 goes to ILC – 1/2
and Surviving Spouse illegitimate
children
Spouse – 1/3 1/6 goes to Spouse – 1/2
spouse
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continuation
Surviving Spouse 1/2 Residue goes to the Whole estate goes to the spouse
Alone 1/3 if marriage is spouse
in articulo mortis
Surviving Spouse Spouse – 1/4 1/ 4 goes to the Spouse 1/2
and Parents of spouse
Illegitimate Parents of 1/4 goes to the Parents of Illegitimate Children – ¼
Children Illegitimate parents of illegitimate
Children – 1/4 children
Surviving Spouse Spouse – 1/2 1/2 goes to the Spouse – 1/2
and Legitimate legitimate brothers
Brothers and and sisters, nephews Legitimate brothers and sisters,
Sisters, Nephews and nieces nephews and nieces – 1/2
and Nieces
Surviving Spouse Spouse – 1/2 1/2 goes to the Spouse – 1/2
and Illegitimate illegitimate brothers
Brothers and and sisters, nephews
Legitimate brothers and sisters,
Sisters, Nephews and nieces
nephews and nieces – 1/2
and Nieces
Parents of 1/2 1/2 goes to the Whole estate divided equally
Illegitimate parents of illegitimate
Children Alone children
Parents of Any kind of 1/2 goes to the any Whole estate goes to the children,
Illegitimate children – 1/2, kind of children, observing 2:1 ratio, if applicable
Children and observe 2:1 observe 2:1 ratio Parents of illegitimate children are
Children of Any ratio excluded by all kinds of children
Kind
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continuation
Legitimate Brothers N/A Whole estate divided among them, observing the 2:1 ratio for
and Sisters Alone full-blood and half-blood siblings
Legitimate Brothers N/A Whole estate divided among them, observing the 2:1 ratio for
and Sisters, Nephews full-blood and half-blood siblings
and Nieces Apply rules on representation when proper
Nephews and Nieces N/A Whole estate divided among nephews and nieces, observing
with Uncles and Aunts the 2:1 ratio for full-blood and half-blood siblings
Uncles and aunts of the decedent are excluded. (Bacayo v.
Borromeo)
Illegitimate Brothers N/A Whole estate divided among them, observing the 2:1 ratio for
and Sisters Alone full-blood and half-blood siblings
Illegitimate Brothers N/A Whole estate divided among them, observing the 2:1 ratio for
and Sisters, Nephews full-blood and half-blood siblings
and Nieces
Nephews and Nieces N/A Whole estate divided among them, observing the 2:1 ratio for
Alone full-blood and half-blood siblings
Other Collaterals up to N/A Whole estate divided equally, observe rules in proximity in
the Fifth Degree degree
State N/A (Resident Decedent) (Non-Resident Decedent)
Personal property – Municipality Personal property and
of the last residence real property –Municipality
Real property – Municipality where it is situated
where it is situated
Property is to be used for the benefit of public education and

charitable institutions in the respective municipalities or cities,
or alternatively, at the instance of an interested party, or motu
proprio, court may order creation of a permanent trust for the
benefit of the institutions concerned.
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D. PROVISIONS COMMON TO TESTATE AND of the instituted heirs, if no substitute has been
INTESTATE SUCCESSION designated, shall pass to the legal heirs of the
testator, who shall receive it with the same
I. RIGHT OF ACCRETION charges and obligations (Art. 1022)
Accretion – A right by virtue of which, when two
or more persons are called to the same Accretion Among Devisees, Legatees and
inheritance, devise or legacy, the part assigned to Usufructuaries
the one who renounces or cannot receive his
Accretion shall also take place among devisees,
share, or who died before the testator, is added
legatees and usufructuaries under the same
or incorporated to that of his co-heirs, co-
conditions established for heirs. (Art. 1023)
devisees, or co-legatees. (Art. 1015)
Accretion in Intestacy
Elements of Accretion in Testamentary
In legal succession the share of the person who
Succession (Art. 1016)
repudiates the inheritance shall always accrue to
1. That two or more persons be called to the his co-heirs. (Art. 1018)
same inheritance, or to the same portion, pro
indiviso; and
Occasions for the Operation of Accretion in
2. That one of the persons thus called die before
Intestacy (Balane, supra)
the testator, or renounce the inheritance, or
be incapacitated to receive it. 1. Repudiation or renunciation; (Art. 1018)
2. Predecease, only if representation does not
take place;
Meaning of Pro Indiviso (Balane, supra)
3. Incapacity or unworthiness, only if
• Undivided or in common representation does not take place
• Either the co-heirs are instituted without
individual designation of shares; or
NOTE: In intestacy, accretion is subordinate to
• The co-heirs are instituted with the representation. (Balane, supra)
specification that they share equally.
• The co-heirs are instituted with unequal
Co-heirs in the Same Category
fractional shares. The co-heirs in whose favor accretion occurs
must be co-heirs in the same category as the
Instances when Accretion operates in excluded heir. (Balane, supra)
Testamentary Succession (Balane, supra)
1. Renunciation; Accretion Must be Proportional
2. Predecease; The heirs to whom the portion goes by the right of
accretion take it in the same proportion that they
3. Incapacity
inherit. (Art. 1019)
NOTE: Provided, only some, not all of the

General Rule: The heirs to whom the inheritance
instituted heirs renounce, predecease, or are
accrues shall succeed to all the rights and
incapacitated to succeed. (Balane, supra)
obligations which the heir who renounced or
could not receive it would have had. (Art. 1020)
Accretion Subordinate to Substitution in
Testamentary Succession
In testamentary succession, when the right of
accretion does not take place, the vacant portion
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Exceptions: (Balane, supra) religious, scientific, cultural, educational, or

1. In testamentary succession, if the testator charitable purposes.
provides otherwise;
2. If the obligation is purely personal, and All other corporations or entities may succeed
hence, intransmissible under a will, unless there is a provision to the
contrary in their charter or the laws of their
creation, and always subject to the same. (Art.
Accretion among Compulsory Heirs
Among the compulsory heirs the right of accretion 1026)
shall take place only when the free portion is left
to two or more of them, or to any one of them and Time to Determine Capacity to Succeed
to a stranger. (Art. 1021) General Rule: In order to judge the capacity of
the heir, legatee, or devisee, his qualification at
the time of the death of the decedent shall be the
No Accretion in the Legitime
If the part repudiated be the legitime, the other co- criterion. (Art. 1034)
heirs shall succeed to it in their own right, and not
by the right of accretion. (Art. 1021) Exceptions:
1. Those disqualified under Article 1032
(Unworthiness, pars. 2,3,5) wherein it is
II. CAPACITY TO SUCCEED BY WILL OR BY necessary to wait until final judgment is
INTESTACY rendered;
2. Those disqualified under Article 1032
Persons not incapacitated by law may succeed (Unworthiness, par. 4) wherein it is necessary
by will or ab intestato. to wait for the expiration for the month
allowed for report;
The provisions relating to incapacity by will are 3. If the institution of the heirs, legacy or devise
equally applicable to intestate succession. (Art. is conditional, the time of compliance with the
1024) condition shall be considered. (Art. 1034)
NOTE: Both a natural person and a juridical NOTE:

person may inherit. (Art. 1026) • The capacity to succeed is governed by the
law of the nation of the decedent. (Art. 1039)
Requisites for Natural Persons • Persons not incapacitated by law may
In order to be capacitated to inherit, the heir, succeed by will or ab intestato. (Art. 1024)
devisee or legatee must be living at the moment • A testamentary provision in favor of a
the succession opens, except in case of disqualified person, even though made
representation, when it is proper. (Art. 1025, par under the guise of an onerous contract, or
1) made through an intermediary, shall be void.
(Art. 755)
A child already conceived at the time of the death
of the decedent is capable of succeeding IF INSTITUTION IS
provided it be born later under the conditions IF INSTITUTION IS
SUBJECT TO A
prescribed in Article 41 of the Civil Code. (Art. SUBJECT TO A
SUSPENSIVE
1025, par 2) SUSPENSIVE TERM
CONDITION
The successor must The requirement of
Requisites for Juridical Persons be living or legally being alive or legal
A testamentary disposition may be made to the existing both when existence applies
State, provinces, municipal corporations, private the decedent dies only at the moment of
corporations, organizations, or associations for
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and when the the decedent’s death. 4. Any attesting witness to the execution of a
condition happens. (Balane, supra) will, the spouse, parents, or children, or any
(Balane, supra) one claiming under such witness, spouse,
parents, or children;
Incapacity to Succeed in Testamentary • Reiteration of Art. 823 but in more
Succession (Art. 1027) general terms as it annuls all
The following are incapable of succeeding: testamentary disposition not only
1. The priest who heard the confession of the legacies and devises. The rule that if
testator during his last illness, or the minister there are three other competent
of the gospel who extended spiritual aid to witnesses as an exception should be
him during the same period; read into this.
Requisites:
a. The will must have been executed during 5. Any physician, surgeon, nurse, health officer
the testator’s last illness; or druggist who took care of the testator
b. The spiritual ministration must have been during his last illness;
extended during the last illness; • The physician must have taken care of
c. The will must have been executed during the testator during his/her final illness.
or after the spiritual ministration. “Taking care” means medical attendance
o Applies to all religions with some regularity or continuity.
2. The relatives of such priest or minister of the 6. Individuals, associations and corporations
gospel within the fourth degree, the church, not permitted by law to inherit under any kind
order, chapter, community, organization, or of succession. (Art. 1027)
institution to which such priest or minister
may belong; Prohibitions in donations applies to
testamentary succession (Art. 1028 in rel. to
3. A guardian with respect to testamentary Art. 739)
dispositions given by a ward in his favor Those who are disqualified from receiving
before the final accounts of the guardianship donations under Article 739.
have been approved, even if the testator Under Article 739, the following are disqualified
should die after the approval thereof; from receiving testamentary dispositions from the
nevertheless, any provision made by the parties specified:
ward in favor of the guardian when the latter
1. Those made between persons who are guilty
is his ascendant, descendant, brother, sister,
of adultery, or concubinage at the time of the
or spouse, shall be valid;
donation;
a. The will must have been executed by the
2. Those made between persons found guilty
ward during the effectivity of the
of the same criminal offense, in
guardianship
consideration thereof;
b. The terms of this provision seem to be
3. Those made to a public officer or his wife,
limited to guardians over the property.
descendants and ascendants, by reason of
c. A guardian who happens to be an his office;
ascendant, descendant, brother, sister,
or spouse of the ward-testator is
Disposition For Prayers and Pious Works for
excluded from the prohibition
the Benefit of His Soul
Should the testator dispose of the whole or part
of his property for prayers and pious works for the
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benefit of his soul, in general terms and without Disqualification of a Witness to Succeed to a
specifying its application, the executor, with the Legacy or Devise (Art. 823)
court's approval, shall deliver one-half thereof or If a person attests to the execution of a will, to
its proceeds to the church or denomination to whom or to whose spouse, or parent, or child, a
which the testator may belong, to be used for devise or legacy is given by such will, such devise
such prayers and pious works, and the other half or legacy shall, so far only as concerns such
to the State, for the purposes mentioned in Article person, or spouse, or parent, or child of such
1013. (Art. 1029) person, or any one claiming under such person or
spouse, or parent, or child, be void, unless there
Requisites: (Balane, supra) are three other competent witnesses to such will.
1. Disposition for prayers and pious works for However, the person attesting shall be admitted
the benefit of the testator’s soul; as a witness if such devise or legacy had not been
2. No specification of the application of the made or given.
disposition.
Testamentary Provision in Favor of a
Disqualified Person is Void (Art. 1031)
Apportionment of the disposition or its
A testamentary provision in favor of a disqualified
proceeds: (Balane, supra)
person, even though made under the guise of an
1. 1/2 to the church or denomination to which onerous contract, or made through an
the testator belonged intermediary, shall be void.
2. 1/2 to the State, to be applied as provided in
Article 1013.
Unworthiness (Art. 1032)
The following are incapable of succeeding under
Dispositions in Favor of the Poor in General all kinds of succession by reason of
(Art. 1030) unworthiness:
Testamentary provisions in favor of the poor in 1. Parents who have abandoned their children
general, without designation of particular persons or induced their daughters to lead a corrupt
or of any community, shall be deemed limited to or immoral life, or attempted against their
the poor living in the domicile of the testator at the virtue;
time of his death, unless it should clearly appear
o Three grounds are provided: (a)
that his intention was otherwise.
abandonment; (b) inducement of a
daughter to lead a corrupt or immoral life;
The designation of the persons who are to be
and (c) attempt against a daughter’s
considered as poor and the distribution of the
virtue
property shall be made by the person appointed
o Abandonment- includes all conduct
by the testator for the purpose; in default of such
constituting a repeated or total refusal or
person, by the executor, and should there be no
failure to care for the child.
executor, by the justice of the peace, the mayor,
o Inducement- same as deprivation of
and the municipal treasurer, who shall decide by
parental authority; only applies to female
a majority of votes all questions that may arise. In
descendants
all these cases, the approval of the Court of First
o Attempt on virtue- no conviction is
Instance shall be necessary.
required
The preceding paragraph shall apply when the
2. Any person who has been convicted of an
testator has disposed of his property in favor of
attempt against the life of the testator, his or
the poor of a definite locality.
her spouse, descendants, or ascendants;
o Covers all stages in the commission of
the crime
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o Felony must be intentional (so not one already made, or who supplants,
through negligence) conceals, or alters the latter's will;
o Final conviction required
8. Any person who falsifies or forges a
3. Any person who has accused the testator of supposed will of the decedent.
a crime for which the law prescribes
imprisonment for six years or groundless; Revocation of Unworthiness
o Covers filing of the complaint before the The cause of unworthiness shall be without effect
prosecutor, presenting incriminating if the testator had knowledge thereof at the time
evidence, suppressing exculpatory he made the will, or if, having known of them
evidence subsequently, he should condone them in writing.
o The testator must be acquitted (Art. 1033)
o The accusation must be found to be
groundless—must state that no crime The unworthiness is set aside in the following
was committed or that accused did not ways: (Balane, supra)
commit the crime. 1. A written condonation, or
2. The execution by the offended party of a will
4. Any heir of full age who, having knowledge of with knowledge of the cause of unworthiness.
the violent death of the testator, should fail to
report it to an officer of the law within a month,
By Operation of Law – In order to restore the
unless the authorities have already taken
disinherited heir to capacity, subsequent
action; this prohibition shall not apply to
reconciliation is enough under the rules of
cases wherein, according to law, there is no
disinheritance while under those on
obligation to make an accusation;
unworthiness; either a written pardon or a
o There is no such obligation existing under subsequent will is required. These rules on
our present law disinheritance and unworthiness would overlap
o Requisites: the moment the testator uses one of the acts of
a. the heir has knowledge of violent unworthiness as a cause to disinherit an heir.
death of the decedent; Such act submits the situation to the rules on
b. the heir is of legal age disinheritance; thus, reconciliation renders the
c. the heir fails to report it to an office disinheritance ineffective. (Balane, supra)
of the law within a month (after
learning of it)
Pardon of Acts of Unworthiness (Art. 1033)
d. there is a legal obligation for the heir
EXPRESS IMPLIED
to make an accusation
Made by the Effected when
execution of a testator makes a will
5. Any person convicted of adultery or
document or any instituting the
concubinage with the spouse of the testator;
writing in which the unworthy heir with
o Final conviction required descendent knowledge of the
condones the cause cause of incapacity
of incapacity
6. Any person who by fraud, violence,
Cannot be revoked Revoked when the
intimidation, or undue influence should cause
testator revokes the
the testator to make a will or to change one
will or the institution
already made;
7. Any person who by the same means prevents

another from making a will, or from revoking
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Representation in Unworthiness (Balane, the hereditary property, shall be obliged to return

supra) it together with its accessions. (Art. 1038)
If the person excluded from the inheritance by
reason of the incapacity should be the child or Prescriptive Period
descendant of the decedent, and should have The action for a declaration of incapacity and
children or descendants, the latter shall acquire recovery of the inheritance, devise or legacy shall
his right to the legitime. be 5 years from the time the disqualified person
took possession thereof. (Art. 1040)
The person excluded shall not enjoy the usufruct
and the administration of the property thus NOTE: It may be brought by any one who may
inherited by his children. (Art. 1035) have an interest in the succession. (Art. 1040)
NOTE: The extent of representation may be as to III. ACCEPTANCE AND REPUDIATION OF

the legitime and as to the share of the unworthy THE INHERITANCE
heir in the intestate portion. (Balane, supra)
Characteristics of Acceptance and
If the unworthy heir is a brother or sister, his Repudiation
children (nephews and nieces of the decedent) 1. Free and Voluntary (Art. 1041)
will represent. (Balane, supra) 2. Irrevocable once made and cannot be
impugned, except in cases vitiating consent
Alienations Made by an Excluded Heir or when an unknown will appear; (Art. 1056)
Alienations of hereditary property, and acts of 3. Retroactive (Art. 777)
administration performed by the excluded heir,
before the judicial order of exclusion, are valid as Requirements to Accept or Repudiate and
to third persons who acted in good faith. (Art. Inheritance
1036) A person may only accept or repudiate an
inheritance once he or she is certain of:
NOTE: The validity of the alienation is determined 1. The death of the person from whom he is to
by the good faith or bad faith of the transferee, not inherit; and
of the transferor. (Balane, supra) 2. His right to the inheritance. (Art. 1043)
The co-heirs of the excluded heir have the right to

Time for Acceptance or Repudiation
recover damages from the disqualified heir. (Art. Within 30 days after the court has issued an order
1036) for the distribution of the estate the heir, devisee,
or legatee shall signify to the court having
Right of an Excluded Heir for Indemnity for jurisdiction whether they accept or repudiate the
Expenses inheritance. If they do not do so within that time,
The unworthy heir who is excluded from the they are deemed to have accepted the
succession has the right to demand indemnity for inheritance. (Art. 1057)
any expenses incurred in the preservation of the
hereditary property, and to enforce such credits Who May Accept or Repudiate
as he may have against the estate. (Art. 1037) General Rule: Any person having the free
disposal of his property may accept or repudiate
Obligations of the Disqualified Heir in an inheritance. (Art. 1044)
Possession of the Hereditary Property
Any person incapable of succession, who, Exceptions:
disregarding the prohibition stated in the 1. Minors or incapacitated persons
preceding articles, entered into the possession of Acceptance – By their parents or guardians.
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Repudiation – By their parents or guardians the co-heirs in whose favor it is made are
with judicial authorization (Art. 1044) those upon whom the portion renounced
2. Inheritance left to the poor – The right to should devolve by virtue of accretion, the
accept the inheritance shall belong to the inheritance shall not be deemed as
persons designated by the testator to accepted
determine the beneficiaries and distribute the
property, or in their default, to those 3. Implied Acceptance - This is acceptance by
mentioned in Article 1030. (Art. 1044) inaction. Under Art 1057, to signify
3. Corporation, association, institution, or acceptance or repudiation within 30 days
entity as beneficiary (Art. 1045) after an order of distribution by the probate
Acceptance – May be made by the lawful court.
representatives
Repudiation – May be made by the lawful Manner of Repudiation (Art. 1051)
representatives with judicial authority The repudiation of the inheritance shall be made
4. Literate Deaf-Mutes in:
Acceptance and Repudiation –Personally or 1. A public document signed before a notary
through an agent (Art. 1048) public, or
5. Illiterate Deaf-Mutes (Balane, supra) 2. Authentic instrument – equivalent to an
Acceptance – Guardians indubitable writing or a writing whose
Repudiation – Guardians with judicial authenticity is admitted or proved, or
approval 3. By a petition presented to the court having
jurisdiction over the testamentary or intestate
If the Beneficiary is a Married Woman (Art proceedings.
1047)
She may either accept or repudiate the • The law considers that the act of repudiation
inheritance without her husband’s consent. is more solemn that the act of acceptance
and that repudiation produces more violent
Manner of Acceptance of Inheritance (Art. and disturbing consequences.
1049) • If the heir repudiates the inheritance to the
1. Express Acceptance prejudice of his own creditors, the latter may
a. Public Document petition the court to authorize them to accept
b. Private Writing it in the name of the heir.
• If an heir is both a testate and legal heir,
2. Tacit Acceptance – one resulting from acts by repudiation of the inheritance as a testate
which the intention to accept is necessarily heir, he is understood to have repudiated in
implied or which one would have no right to both capacities. However, should he
do except in the capacity of an heir. It can be repudiate as a legal heir, without knowledge
presumed from certain acts of the heir such of being a testate heir, he may still accept the
as: inheritance as a legal heir.
a. If the heir sells, donates, or assigns his
right to a stranger, or to his co-heirs, or to
If renounced in favor of other heirs, does it
any of them
mean acceptance? (Balane, supra)
b. If the heir renounces the same, even
It depends:
though gratuitously, for the benefit of one 1. If specific heir – whether or not renouncing
or more of his co-heirs
heir receives anything, considered as
c. If he renounces it for a price in favor of all
acceptance on the part of the heir. There are
his co-heirs indiscriminately; but if this
two transfers.
renunciation should be gratuitous, and
2. If gratuitous –
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a. In favor of all his co heirs indiscriminately the latter, by way of donation, or any other
- there is repudiation because the heir gratuitous title, in order that it may be computed
deemed to have not accepted. Hence, in the determination of the legitime of each heir,
accretion takes place. and in the account of the partition. (Art. 1061)
b. In favor of all co-heirs but in proportion
different from those they would receive
However, donations inter vivos to compulsory
by accretion: considered as tacit
heirs shall not be imputed to the legitime:
acceptance.
c. If gratuitous in favor of one or some of his 1. If the donor expressly provided; (Art. 1062)
co-heirs – deemed conveyance in favor 2. The donee repudiated the inheritance; (Id.)
of the co-heirs specified, hence there is 3. The value of donation exceeds the donee’s
acceptance. legitime
3. If onerously: NOTE: The donation will be imputed to the
a. There is no repudiation legitime to the extent of the legitime’s value,
b. Transfer considered to be with and the excess to the free portion. (Balane,
consideration supra at p. 577)
There are also tax implications because there are Properties or Rights Received by Compulsory
two transfers. Heir not Subject to Collation
1. Property left by will (Art. 1063)
IV. COLLATION 2. Property which may have been donated by
an ascendant of the compulsory heir (Art.
The act by virtue of which, the persons who 1065)
concur in the inheritance bring back to the 3. Property donated to the spouse of the
common hereditary mass the property, which compulsory heir (Art. 1066)
they have received from him, so that a division 4. Expenses for support, education, medical
may be effected according to law and the will of attendance even in extraordinary illness,
the testator. (Mison, Wills and Succession Better apprenticeship, ordinary equipment or
Explained, 2011) customary gifts (Art. 1067)
5. Expenses incurred by parents in giving their
To collate is to bring back or to return to the children a professional, vocational, or other
hereditary mass, in fact or by fiction, property career (Art. 1068)
which came from the estate of the decedent, 6. Wedding gifts consisting of jewelry, clothing
during his lifetime, but which the law considers as and outfit, given by parents or ascendants, so
an advance from the inheritance. (Mison, supra) long as they do not exceed 1/10 of the
disposable portion (Art. 1070)
Concept of Collation
The act of bringing back to the estate properties Kinds of Collation (Balane, supra)
acquired inter vivos and gratuitously from 1. Collation of Values – values only, no
decedent (if acquired by will, e.g. legacies and physical return
devisees, they are not collatable, but may be 2. Collation in kind – actual return of property
reduced for being inofficious) received: only required when inofficious, i.e.,
legitime is impaired
Obligation of Every Compulsory Heir
Every compulsory heir, who succeeds with other
compulsory heirs, must bring into the mass of the
estate any property or right which he may have
received from the decedent, during the lifetime of
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COLLATION OF VALUES there is no intention to be reimbursed,

otherwise placed on asset side as
Purposes receivables from the heir (not collation).
1. For computation – Arts. 908, 909 as basis • If there is no liberality, such as arising
for determining the legitime from obligation to support (e.g.
• Determination: value at the time of education) –other compulsory heirs
donation + fruits & legal interest from cannot ask for collation.
date succession opens (if required to • Exception: When liberality is present,
return in kind) but no collation is required: Wedding gift
• Compulsory heirs and strangers must of parent/ascendants consisting of
collate for computation. For strangers, jewelry, clothing, outfit (Art. 1070) not
there is no effect unless found to be more than 1/10 of the sum disposable by
inofficious. If donation to strangers is not will –considered customary gift, not
included, compulsory heirs will be collatable, while excess required to be
prejudiced because basis for the legitime collated.
will be smaller. (Balane, supra)
3. Identity of heir and donee which may be:
2. For equalization on account of partition
a. Actual: e.g. F donates to son; Son
• Only required for compulsory heirs; 2nd
collates for computation and
collation; when actually charged either to
equalization; If he donates to grandson,
legitime or free portion.
son is not required to collate, but
• Reason: donation to compulsory heirs
grandson collates for computation as a
are considered advance of legitime,
stranger. If son predeceases, grandson
otherwise, it will prejudice other
collates for computation and equalization
compulsory heirs. For strangers, no
(now a compulsory heir)
equalization is required, are always
b. Constructive: F donates to son, son
charged to free portion. (Paras, supra)
predeceases and GS succeeds by
representation. GS must collate donation
Not subject to collation (i.e., charged to free to son even if he does not actually
portion) if: receive it.
1. Testator provides otherwise (but still collated
for computation) (Art. 1062) If there is no identity: no collation for equalization
2. If compulsory heir repudiates, in which case is required. E.g. Father donates to spouse of son:
he is considered a stranger – for computation Son has no obligation to collate, but spouse must
only, charged to free portion (Art. 1062) collate for computation as a stranger. If he
donates to both spouses: ½ each, son collates for
COLLATION FOR EQUALIZATION computation and equalization, spouse collates
only for computation. (Paras, supra)
Requisites (Art. 1069)
If collation required for equalization, may be
1. Two or more compulsory heirs. If only
quantitative: same amount, or qualitative: same
one, no equalization is needed.
kind. If immovable -equivalent, if not available,
sell other properties to generate cash, and if
2. Liberality – must be acquired gratuitously
movable, equivalent properties (Paras, supra)
from the decedent (inter vivos). In donation,
gratuitous act may be direct or indirect, as
when parent pays for debt of child or pays for
purchase price of the car placed in name of
the child – not a demandable debt as when
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COLLATION IN KIND 2. Voluntary heir;

3. Legatee or devisee;
Actual return - Only if inofficious, i.e. legitime 4. Any person who has acquired interest in the
impaired. Operates as resolutory condition: estate
donation terminated and must return only to the
extent inofficious: not necessarily a case of total When Partition Cannot be Demanded (PAPU)
return. A donee who is required to collate in kind 1. When expressly Prohibited by the testator
is a possessor in good faith, and not required to himself for a period not exceeding 20 years;
account for fruits and interests except from the (Art. 1083)
date succession opens. (Art. 1075) 2. When the co-heirs Agreed that the estate
shall not be divided for a period not
Operations Related to Collation (Paras, supra) exceeding 10 years, renewable for another
1. Collation – adding to the mass of the 10 years;
hereditary estate the value of the donation or 3. When Prohibited by law;
gratuitous disposition 4. When to partition the estate would render it
2. Imputing or Charging – crediting the Unserviceable for the use for which it is
donation as an advance on the legitime (if the intended.
donee is a compulsory heir) or on the free
portion (if the donee is a stranger) NOTE:
3. Reduction – determining to what extent the • Partition Inter Vivos (Art. 1080) – it is
donation will remain and to what extent it is one that merely allocates specific items
excessive or inofficious or pieces of property on the basis of the
4. Restitution – return or payment of the pro indiviso shares fixed by law or given
excess to the mass of hereditary estate. under the will to heirs or successors.
• Partition is not itself a mode of acquiring
————- end of topic ————- ownership, nor a title, but being
predicated on succession, necessitates
V. PARTITION AND DISTRIBUTION relationship to the decedent (in case of
intestacy) or a will duly probated (in case
PARTITION (Art. 1079, 1082) of testacy).
The separation, division and assignment of a
thing held in common among those to whom it Prohibition to Partition (Art. 1083)
may belong. It includes every act which is 1. The prohibition to partition for a period not
intended to put an end to indivision among co- exceeding 20 years can be imposed on the
heirs, and legatees or devisees, although it legitime.
should purport to be a sale, exchange, 2. If the prohibition to partition is for more than
compromise, or any other transaction. It is not 20 years, the excess is void.
subject to any form. 3. Even if a prohibition is imposed, the heir’s
mutual agreement can still make the
Who May Effect Partition partition.
1. Decedent himself during his lifetime by an act
inter vivos or by will (Art. 1080) Legal Redemption In Favor Of Co-Heirs (Art.
2. Heir themselves (Art. 1083) 1623)
3. Competent court (Art. 1083) The right of legal redemption predicated upon the
4. Third person designated by the decedent fact that the sale made by the co-heir is effected
(Art. 1081) before the partition of the estate but after the
death of the decedent.
Who Can Demand Partition (Art. 1083)
1. Compulsory heir;
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Requisites: (Aguilar v. Aguilar, G.R. No. 141613, but the latter shall be proportionately obliged
December 16, 2005) to pay the true heir of his share
1. There must be several co-heirs
2. That one of them sells his right to a NOTE: Partition with respect to the mistaken heir
stranger is VOID. (Art. 1105)
3. That the sale is made before the partition
4. That the right of redemption must be A Void Will may be a Valid Partition (Paras,
exercised by one or more of the co-heirs supra)
within 1 month from the time they were 1. If the will was in fact a partition; and
notified in writing by the co-heir vendor 2. If the beneficiaries in the void will were legal
5. The vendee is reimbursed for the price of heirs
the sale.
RESCISSION AND NULLITY OF PARTITION
Effects of Partition
• Confers upon each heir the exclusive A partition, judicial or extra-judicial, may also be
ownership of the property adjudicated. (Art. rescinded on account of lesion, when any one of
1091) the co-heirs received things whose value is less,
• After the partition, the co-heirs shall be by at least one-fourth, than the share to which he
reciprocally bound to warrant the title to is entitled, considering the value of the things at
(warranty against eviction) and the quality of the time they were adjudicated. (Art. 1098)
(warranty against hidden defects), each
property adjudicated. (Art. 1092) Partition Made By the Testator (Art. 1099)
• The obligation of warranty shall cease in the
following cases: (Art. 1096) General Rule: A partition made by the testator
cannot be impugned on the grounds of lesion.
1. When the testator himself has made
the partition unless his intention was
Exceptions:
otherwise, but the legitime shall
1. When the legitime of the compulsory heirs is
always remain unimpaired.
prejudiced; or
2. When it has been expressly
2. When it appears or may reasonably be
stipulated in the agreement of
presumed, that the intention of the testators
partition, unless there has been bad
was otherwise.
faith.
3. When the eviction was due to a
Options Available to Obligor-Heir (Art. 1101)
cause subsequent to the partition, or
The heir who is sued shall have the option of:
has been caused by the fault of the
1. Indemnifying the plaintiff for the loss, by
distributee of the property.
payment in cash or by delivery of a thing of
the same kind and quality as that awarded to
Effects of Inclusion of Intruder in Partition
the plaintiff; or
(Art. 1105)
2. Consenting to a new partition
1. Between a true heir and several mistaken
heirs – Partition is VOID
NOTE: If a new partition is made, it shall
2. Between several true heirs and a mistaken
affect neither those who have not been
heir – transmission to mistaken heir is VOID
prejudiced nor those who have not received
3. Through error or mistake; share of true heir is
more than their just share. (Art. 1101)
allotted to mistaken heir – partition shall not
be rescinded unless there is bad faith or fraud
on the part of the other persons interested,
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Remedy of an Heir Who has Alienated the

Property Adjudicated to Him
An heir who has alienated the whole or a
considerable part of the real property adjudicated
to him cannot maintain an action for rescission on
the ground of lesion, but he shall have a right to
be indemnified in cash. (Art. 1102)
Incompleteness of Partition Not a Ground for

Rescission
The omission of one or more objects or securities
of the inheritance shall not cause the rescission
of the partition on the ground of lesion, but the
partition shall be completed by the distribution of
the objects or securities which have been
omitted. (Art. 1103)
Omission of a Compulsory Heir in the

Partition
General Rule: A partition made with preterition of

any of the compulsory heirs shall not be
rescinded. (Art. 1104)
NOTE: This is not preterition under Article 854.

This is simply an omission of a compulsory heir in
the partition, the assumption being that
something is left for him in the form of an
undisposed portion of the estate. The omitted heir
simply gets his rightful share. (Non v. CA, G.R.
No. 137287, 2000)
Exception: Bad faith or fraud on the part of the

other persons interested. (Art. 1104)
Remedy: The other persons interested shall be

proportionately obliged to pay to the person
omitted the share which belongs to him. (Art.
1104)
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PERIODS TO REMEMBER ON PARTITION
20 years (Art. 1083) Maximum period testator can prohibit alienation of

dispositions
5 years from delivery to the State (Art. 1014) To claim property escheated to the State
5 years from the time disqualified person took Action for declaration of incapacity & for recovery of
possession (Art. 1040) the inheritance, devise or legacy
30 days from issuance of order of distribution Must signify acceptance/repudiation otherwise,

(Art. 1057) deemed accepted
1 month form written notice of sale (Art. 1088) Right to repurchase hereditary rights sold to a
stranger by a co-heir
10 years (Art. 1094) To enforce warranty of title/quality of property

adjudicated to co-heir from the time right of action
accrues
5 years from partition (Art. 1095) To enforce warranty of solvency of debtor of the
estate at the time partition is made
4 years from partition (Art. 1100) Action for rescission of partition on account of lesion
Page 222 of 474

OBLIGATIONS
AND CONTRACTS
Civil Law
ATENEO CENTRAL
A. GENERAL PROVISIONS
OBLIGATIONS I. DEFINITION
TOPIC OUTLINE UNDER THE SYLLABUS Obligation: A juridical necessity to give, to do or

not to do. (An Act to Ordain and Institute the Civil
Q. GENERAL PROVISIONS Code of the Philippines [CIVIL CODE], Republic
I. Definition Act No. 386, art. 1156 (1950))
II. Elements of an Obligation
III. Sources of Obligations II. ELEMENTS OF AN OBLIGATION
R. NATURE AND EFFECTS OF Essential Elements an Obligation (Arts. 1156

OBLIGATIONS – 1162) (PAVO)
I. Obligation to Give
II. Obligation to Do or Not to Do
1. Passive Subject (obligor/debtor): the person
who has the duty of giving, doing or not doing;
III. Transmissibility of Obligations
person bound to the fulfillment
IV. Performance of Obligations
V. Breaches of Obligations 2. Active Subject (obligee/creditor): the person
VI. Remedies Available to Creditor in whose favor the obligation is constituted;
in Cases of Breach person entitled to make a demand
3. Vinculum Juris/ Legal Tie: the efficient cause
S. KINDS OF OBLIGATIONS or the juridical tie between two subjects by
I. Pure reason of which the debtor is bound in favor
II. Conditional of the creditor to perform the obligation. It can
III. Obligations with a Period or a be established by various sources of
Term obligations (law, contract, quasi-contracts,
IV. Alternative or Facultative delicts, and quasi-delicts) and may arise
Obligations either from bilateral or unilateral acts of
V. Joint and Solidary Obligations persons.
VI. Obligations with a Penal Clause 4. Object/ Subject Matter: the prestation or
conduct which has to be observed by the
T. EXTINGUISHMENT OF OBLIGATIONS debtor/obligor; to be valid, it must be:
I. Payment or Performance (LiPoDeM):
II. Loss of Determinate Thing Due (a) Licit
or Impossibility or Difficulty of (b) Real or Possible
Performance (c) Determinate/ Determinable
III. Condonation or remission of (d) Must be within the commerce of men (i.e.
debt susceptible of appropriation and
IV. Confusion transmissible from one person to
V. Compensation another) (DESIDERIO P. JURADO,
VI. Novation COMMENTS AND JURISPRUDENCE ON
OBLIGATIONS AND CONTRACTS 457
(2010))
In certain kinds of obligations, the following

may constitute additional requirements:
5. Form: in formal contracts where form is
necessary for validity, e.g., donation
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6. Delivery or Tradition: real contracts where The terms of the contracts determine the
delivery is necessary for perfection of the respective obligations of the parties. If the terms
obligation, e.g., Pledge (ERNESTO L. PINEDA, of the contract are clear and leave no doubt upon
OBLIGATIONS AND CONTRACTS 412 (2009)) the contracting parties’ intention, such terms
should be applied in their literal meaning. (CIVIL
III. SOURCES OF OBLIGATIONS CODE, art. 1370)
Obligations arise from: (L-CQAQ) Neither party may unilaterally evade his
obligation in the contract, unless the contract
1. Law;
authorizes it or the other party assents. (ERNESTO
2. Contracts;
L. PINEDA, OBLIGATIONS AND CONTRACTS 385
3. Quasi-contracts;
(2009))
4. Acts or omissions punished by law; and
5. Quasi-delicts (CIVIL CODE, art. 1157)
C. QUASI-CONTRACTS (OBLIGATION EX
QUASI-CONTRACTU)
Note: The list is exclusive. (Sagrado Orden v.
Nacoco, G.R. No. L-37756, June 30, 1952)
Juridical relations resulting from lawful,
voluntary and unilateral acts, which has for its
A. LAW (OBLIGATION EX LEGE)
purpose, the payment of indemnity to the end that
no one shall be unjustly enriched or benefited at
The law cannot exist as a source of
the expense of another. (CIVIL CODE, art. 2142)
obliga;.lptions, unless the acts to which its
principles may be applied exist.
Distinguished from other Sources (LUV)
1. The act giving rise to a quasi-contract must
Once the acts or facts exist, the obligations
be Lawful distinguishing it from delict;
arising therefrom by virtue of the express
2. The act must be Voluntary distinguishing it
provisions of the law are entirely independent of
from a quasi-delict which is based on fault or
the agreement of the parties. (Manila Trading &
negligence; and
Supply Co. v. Saez, G.R. No. 43861, Sept. 26,
3. The act must be Unilateral distinguishing it
1938)
from contract which is based on agreement.
(ERNESTO L. PINEDA, OBLIGATIONS AND
It must be expressly or impliedly set forth and
CONTRACTS 15 (2009))
cannot be presumed. (Martinez v. Martinez, G.R.
No. 858, Jan. 23, 1903)
Kinds of quasi-contract
a) Negotiorum Gestio - is the voluntary
B. CONTRACTS (OBLIGATION EX
management of the property or affairs of
CONTRACTU)
another in times of emergency without the
owner’s authority. (CIVIL CODE, art. 2144)
Obligations arising from contracts have the force
of law between the contracting parties and should
Obligation created: Return of the property by
be complied with in good faith. (CIVIL CODE, art.
the officious manager to the owner once the
1159)
emergency ceases, and for the owner to
reimburse expenses incurred by the officious
Parties may freely enter into any stipulations
manager. (CIVIL CODE, art. 2150)
provided they are not contrary to law, morals,
good customs, public order or public policy. (CIVIL
b) Solutio Indebiti - is the juridical relation,
CODE, art. 1306)
which is created when something is received
when there is no right to demand it and it was
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unduly delivered through mistake. (CIVIL Scope of civil liability

CODE, art. 2154) 1. Restitution
2. Reparation for damage caused
Obligation created: Recipient to return the 3. Indemnity for consequential damages
property delivered through mistake. (REVISED PENAL CODE, art. 104)
c) Other cases of quasi-contracts (CIVIL CODE, Effect of acquittal in criminal case

art. 2164-2175) General Rule: The acquittal of the accused in the
criminal case due to the prosecution’s failure to
Note: The Civil Code provides [the above- prove guilt beyond reasonable doubt does not
mentioned] enumeration of quasi-contracts, but prejudice the civil action, in which the offended
the list is not exhaustive and merely provides party may still be able to recover damages by a
examples. (Metrobank v. AMC, G.R. No. 170498, mere preponderance of evidence. (CIVIL CODE,
Jan. 9, 2013) art. 29)
Exception: Where the judgment of acquittal
Solutio indebiti vs. Natural obligations contained a declaration that no negligence can
In natural obligations, the person making the be attributed to the accused and that the fact
payment or delivery knows that he has no legal from which the civil action might arise did not
obligation to pay or to deliver but still exist. (Castillo v. CA, G.R. No. 48541, Aug. 21,
voluntarily makes such payment or delivery. 1989)
For this reason, once payment or delivery has
been made, there is no right to ask for the Extinguishment of liability
return. (CIVIL CODE, art. 1423) The civil liability for crimes is extinguished by the
same causes provided by the Civil Code for the
In solutio indebiti, the payment or delivery is made extinguishment of other obligations. (RULES OF
on the basis of a mistake, hence the recipient CIVIL PROCEDURE, rule 4, § 4)
has the legal obligation to return. (CIVIL CODE,
art. 2154) Note: Death of the accused during the pendency
of the case can extinguish the civil liability if the
D. DELICTS (OBLIGATION EX MALEFICIO same arose directly from the crime committed.
OR EX DELICTO) However, this does not apply if civil liability can be
based on another source of obligation (i.e., law on
Every person criminally liable for a felony is also human relations). (Asilo, Jr. v. People, G.R. Nos.
civilly liable. (An Act Revising the Penal Code and 159017-18 & 159059, Mar. 9, 2011)
Other Penal Laws [REVISED PENAL CODE], Act No.
3815, art. 100 (1932)) E. QUASI-DELICT/TORTS (OBLIGATION EX
QUASI-DELICTO OR EX QUASI
Such civil liability is a necessary consequence of MALEFICIO)
criminal responsibility, and is to be declared and
generally enforced in the criminal proceeding It is an act or omission arising from fault or
EXCEPT where: negligence, which causes damage to another,
(a) the injured party reserves his right to avail there being no pre-existing contractual
himself of it in a distinct civil action or relations between the parties. (CIVIL CODE, art.
(b) in cases where an independent civil 2176)
action is allowed by law. (CIVIL CODE, art.
33; 2000 REVISED RULES OF CRIMINAL
PROCEDURE, rule 110, § 1)
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Elements: (ADD) 2. If the act that breaks the contract may

1. That there exists a wrongful Act or omission also be a tort (Air France v. Carrascoso,
imputable to the defendant by reason of his G.R. No. L-21438, Sept. 28, 1966).
fault or negligence;
2. That there exists a Damage or injury, which Note: When the obligation is based on a
must be proved by the person claiming contract, without which the obligation
recovery; does not exist, the cause of action must
3. That there must be a Direct causal connection be founded on the breach of contract and
or a relation of cause and effect between the cannot be based on quasi-delict (PSBA
fault or negligence and the damage or injury; v. Court of Appeals, G.R. No. 84698,
or that the fault or negligence be the cause of Feb. 4, 1992). In Air France, what was
the damage or injury. (CIVIL CODE, art. 2176; punished was the company’s racist policy
Taylor v. Manila Electric Co., G.R. No. L- which emboldened the manager to expel
4977, Mar. 22, 1910) the Filipino from first class because a
white man had a better right to the seat.
Negligence: Failure to observe for the protection
of the interests of another person, that degree of Air France would apply if the act which
care, precaution and vigilance, which the breaches a contract was done in bad faith
circumstances justly demand, whereby such and amounts to a violation of Article 21 of
other person suffers injury. (US v. Barias, G.R. the Civil Code.
No. L-7567, Nov. 12, 1912)
Test of Negligence: “Would a prudent man, in
the position of the person to whom negligence is B. NATURE AND EFFECTS OF OBLIGATIONS
attributed, foresee harm to the person injured as
a reasonable consequence of the course about to I. DUTIES OF A DEBTOR IN AN OBLIGATION
be pursued?” (Picart v. Smith, G.R. No. L-12219, TO GIVE
Mar. 15, 1918)
1. To give a determinate thing (CIVIL CODE,
Quasi-delict as a cause of action despite a arts. 1163, 1164 & 1166)
pre-existing contractual relation (a) To deliver the thing itself; (CIVIL CODE,
General Rule: Actions based on breach of art. 1163)
contract and actions based on quasi-delicts differ (b) To preserve or take care of the thing due
in terms of conditions, defenses, and proof. They with the diligence of a good father of a
cannot co-exist. (Orient Freight v. Keihin, G.R. family (i.e., that standard of care which an
No. 191937, Aug. 9, 2017) owner would give to his own property),
Exceptions: unless the law requires or the parties
1. When such a contractual relation exists, agree otherwise; (CIVIL CODE, art. 1163)
the obligor may break the contract that • The law or contractual stipulation
the same act which constitutes a breach may require a different degree of
of the contract would have constituted diligence: greater or extraordinary
the source of an extra-contractual diligence (diligentia exactissima), or
obligation, had no contract existed less or slight diligence (diligentia
between the parties (Cangco v. Manila levissima). (RUBEN F. BALANE,
Railroad Co., G.R. No. L-12191, Oct. 14, JOTTINGS AND JURISPRUDENCE IN
1918); CIVIL LAW (OBLIGATIONS AND
CONTRACTS) 63 (2020))
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(c) To deliver fruits, whether civil, industrial, Right pertaining to a Right pertaining to a
or natural fruits (obligor is liable for fruits person to demand person over a
only from the time the obligation to deliver from another, as a specific thing, without
arises); and definite passive a definite passive
(d) To deliver accessions and accessories subject, the fulfillment subject against whom
(CIVIL CODE, art. 1166) of the prestation to the right may be
• Accessions – incorporated or give, to do or not to personally enforced
attached to the object to form part of do.
the principal. (ERNESTO L. PINEDA, OBLIGATIONS AND
• Accessories – added for CONTRACTS 15 (2009))
completion, use perfection or
embellishment. III. TRANSMISSIBILITY OF OBLIGATIONS
2. To give a generic thing (CIVIL CODE, arts. General Rule: All rights acquired in virtue of an
1246 & 1170) obligation are generally transmissible (CIVIL
(a) To deliver the thing of the quality CODE, art. 1178)
intended by the parties, taking into
consideration the purpose of the Exception: Rights acquired in virtue of an
obligation, intent of the parties, and other obligation are NOT transmissible when:
circumstances. (CIVIL CODE, art. 1246) 1. Prohibited by law
(b) To pay damages in case of breach of the Examples:
obligation. (CIVIL CODE, art. 1170) (a) Contract of partnership (CIVIL CODE, art.
1767)
II. RIGHTS OF A CREDITOR IN AN (b) Contract of agency (CIVIL CODE, art.
OBLIGATION TO DO OR NOT TO DO 1868)
(c) Contract of commodatum (CIVIL CODE,
1. To do (Positive Personal) art. 1933)
(a) The obligee is entitled to have the thing 2. Prohibited by stipulation of the parties, as
done in a proper manner, by himself or by long as it is not contrary to public policy.
a third person, at the expense of the 3. The obligation is purely personal in nature—
obligor; when the obligor’s personal qualifications
(b) To demand what has been poorly done and skill was the motive behind the contract.
be undone;
(c) To recover damages because of breach IV. PERFORMANCE OF OBLIGATIONS
of the obligation. (CIVIL CODE, art. 1167)
4. The obligation arises:
2. Not to do (Negative Personal) 1. Pure obligation: Upon demand (CIVIL CODE,
(a) To have the thing undone at the expense art. 1179)
of the obligor; and/or
(b) To ask for damages. (CIVIL CODE, art. 2. Obligations with Suspensive Condition:
1168) General Rule: Only from the time the
condition is fulfilled, but the obligation
PERSONAL RIGHT REAL RIGHT retroacts to the day of its constitution. (CIVIL
Jus ad rem, a right Jus in re, a right CODE, art. 1187)
enforceable only enforceable against
against a definite the whole world Exception: Regarding fruits and interests
person or group of in reciprocal obligations (even if the two
persons reciprocal obligations are not of the same
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ATENEO CENTRAL
value), the parties are deemed as mutually

compensated during the pendency of the BREACH BREACH FORTUITO
condition. ARISING ARISING US EVENT
FROM FROM
Thus, there is no liability to account for fruits DOLO CULPA
and interests in reciprocal obligations. For Liable for
unilateral obligations, the debtor shall all Liable No liability
appropriate the fruits and interests received, consequen only for –
unless it was intended otherwise. -ces of act, those unforeseen
whether foreseen, or even if
Scope
3. Obligations subject to a Suspensive foreseen or or could foreseen, is
of
Period: There is no similar provision as unforeseen have unavoidabl
liability
Article 1187, hence there are 2 schools of (e.g., loss foreseen e
thought: (1) from perfection, since there is of profits) (CIVIL (CIVIL
already an obligation from the date the (CIVIL CODE, art. CODE, art.
obligation is perfected, and only the CODE, art. 2201) 1174)
performance or delivery is suspended until 2201)
the arrival of the period, and (2) same as a Actual
Absence of
suspensive condition, from date the period knowledge Possibility
possibility
arrives. or of
of
awareness knowledg
knowledge
4. Obligations subject to a Resolutory of the e or
(could not
Condition/Period: No obligation to deliver cause aware-
be
fruits since performance or delivery is Basis (CIVIL ness
foreseen or
immediate, subject to its resolution upon the of CODE, art. (ought or
if foreseen,
happening of the condition/period. (CIVIL liability 2201; could
could not
CODE, art. 1187) Legaspi Oil have
be
Co., Inc. v. foreseen)
avoided)
V. BREACHES OF OBLIGATIONS CA, G.R. (CIVIL
(CIVIL
No. 96595, CODE, art.
CODE, art.
Causes of Breach Jul. 1, 2201)
1174)
1993)
1. Incidental Fraud (Dolo incidente)
2. Negligence (Culpa)
1. Incidental fraud (Dolo incidente)
3. Default / Delay (Mora)
Fraud is the deliberate or intentional evasion of
4. Contravention of Terms (CIVIL CODE, art.
the normal fulfillment of an obligation. (8
1170)
Manresa, 5th Ed., Book, 1, 72)
There is breach when the obligor fails without
Types of Fraud
legal excuse (such as fortuitous events) to
INCIDENTAL CAUSAL
perform any promise, which forms the whole or
(Dolo incidente) (Dolo causante)
part of an obligation. (Guanio v. Makati Shangri-
(ART. 1170) (ART. 1338)
La and Resort, Inc., G.R. No. 190601, Feb. 7,
Present during the Present before or
2011; R.S. Tomas Inc. v. Rizal Cement Co. Inc.,
G.R. No.173155, Mar. 21, 2012) performance of a pre- simultaneously with
existing obligation the perfection of a
contract
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Purpose is to evade Purpose is to secure (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
the normal fulfillment the consent of COMMENTS AND CASES ON OBLIGATIONS AND
of the obligation another to enter into CONTRACTS 62 (2014))
the contract
Results in the breach Results in vitiation of NEGLIGENCE CRIME
of an obligation consent; voidable Any act with fault or Acts punishable by
contract negligence (CIVIL law (REVISED PENAL
Gives rise to a right in Gives rise to a right CODE, art. 1173) CODE, art. 3)
favor of the obligee to of an innocent party Criminal intent Criminal intent
sue for breach (see to annul the contract unnecessary necessary
remedies for breach) Damages may be
Some crimes do NOT
(DESIDERIO P. JURADO, COMMENTS AND awarded to injured
give rise to civil liability
JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS party
63 (2010)) Violation of private Violation of public
rights rights
Note: Future fraud CANNOT be waived. Preponderance of Proof beyond
However, the law does NOT prohibit renunciation evidence reasonable doubt
of the action for damages on the ground of past Can be Criminal liability
fraud. (CIVIL CODE, art. 1171) compromised as any cannot be
other civil liability compromised
2. Negligence (Culpa) Presumption of Presumption of
Any voluntary act or omission, there being no negligence innocence
malice which prevents the normal fulfillment of an (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
obligation. (HECTOR S. DE LEON & HECTOR M. DE COMMENTS AND CASES ON OBLIGATIONS AND
LEON, JR., COMMENTS AND CASES ON OBLIGATIONS CONTRACTS 27 (2014))
AND CONTRACTS 58 (2014))
Kinds of Negligence
Consists in the omission of that diligence which 1. Quasi-Delict (Culpa aquiliana/culpa extra
is required by the nature of the obligation and contractual) – source of obligation; wrong or
corresponds with the circumstances of the negligence committed independent of
persons, of the time and of the place (CIVIL CODE, contract and without criminal intent
art. 1173)
2. Contractual Negligence (Culpa
FRAUD NEGLIGENCE Contractual) – wrong or negligence in the
There is deliberate There is no deliberate performance of an obligation or contract
intention to cause intention to cause
damage damage 3. Criminal Negligence (Culpa Criminal) –
Liability may be wrong or negligence in the commission of a
Liability cannot be
mitigated (CIVIL CODE, crime (HECTOR S. DE LEON & HECTOR M. DE
mitigated
art. 1173) LEON, JR., COMMENTS AND CASES ON
Presumed from the OBLIGATIONS AND CONTRACTS 65-66 (2014))
Must be clearly
breach of a contractual
proved
obligation CULPA
CULPA AQUILIANA
Waiver for future CONTRACTUAL
Waiver for future
negligence may be Negligence is Negligence merely an
fraud is void (CIVIL
allowed in certain substantive and incident of
CODE, art. 1171)
cases independent performance of an
obligation
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There may or may There is a pre- Standard of care of disabled person

NOT be a pre- existing contractual A disabled person is required to use the same
existing contractual relation degree of care that a reasonably careful person
obligation having the same disability would use. Physical
Source of the Source of the handicaps are treated as part of the
obligation is the obligation is the circumstances under which a reasonable person
negligence itself breach of the must act. Thus, the standard of conduct for a blind
(CIVIL CODE, art. contractual obligation person becomes that of a reasonable person who
2176) (CIVIL CODE, arts. is blind. (Francisco v. Chemical Bulk Carriers,
1170-1174; 2201) Incorporated, G.R. No. 193577, Sept. 7, 2011)
Negligence must be Proof of existence of
proved the contract and its Instances where the law requires a higher
breach is prima facie standard of care
sufficient to warrant • Banks – as a business affected with public
recovery interest, and because of the nature of its
For the negligence of For the negligence of functions, banks are under obligation to treat
an employee, an employee, the accounts of its depositors with
diligence in the diligence in the meticulous care, always having in mind the
selection and selection and fiduciary nature of their relationship. (Simex
supervision of the supervision of the v. CA, G.R. No. 88013, Mar. 19, 1990)
employees is a employees is NOT
defense of the available as a Exception: Extraordinary diligence does not
employer defense of the cover transactions outside bank deposits, i.e.
employer commercial transactions. (Reyes v. CA,
(EDGARDO L. PARAS, CIVIL CODE OF THE G.R. No. 94214, Dec. 1, 1992)
PHILIPPINES ANNOTATED: PRESCRIPTION;
OBLIGATIONS AND CONTRACTS 144-145 (2016)) • Realty Corporations – A corporation
engaged in the buying and selling of real
Rule on Standard of Care estate is expected to exercise a higher
1. That which the law requires; or standard of care and diligence in ascertaining
2. That stipulated by the parties; or the status and condition of the property
3. In the absence of the above, diligence of a subject of its business transaction. Similar to
good father of a family (CIVIL CODE, art. 1163) investment and financing corporations, it
cannot simply rely on an examination of a
However, parties cannot stipulate that there Torrens certificate to determine what the
would be absolute exemption from liability for subject property looks like, as its condition is
any fault or negligence, since it is against not apparent in the document. (Eagle Realty
public policy. (Heacock vs. Macondray, G.R. Corp. v. Republic, G.R. No. 151424, Jul. 31,
No. L-16598, Oct. 3, 1921; CIVIL CODE, arts. 2009)
1306, 1744, 1745)
• Common Carriers – from the nature of their
Diligence of a good father of a family: ordinary business and for reasons of public policy,
care or that diligence which an average or common carriers are bound to observe
reasonably prudent person would exercise over extraordinary diligence in the vigilance over
his own property (HECTOR S. DE LEON & HECTOR the goods and for the safety of the
M. DE LEON, JR., COMMENTS AND CASES ON passengers transported by them, according
OBLIGATIONS AND CONTRACTS 34 (2014)) to all the circumstances of each case. (CIVIL
CODE, art. 1733)
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that since both parties exercised their right to

Effects of contributory negligence of the resolve under Art. 1191, judicial rescission is not
obligee necessary because the power to resolve is
• General rule: Reduces or mitigates the implied in reciprocal obligations. (Lam v. Kodak,
damages which he can recover. G.R. No. 167615, Jan. 11, 2016; see discussion
• Exception: If the negligent act or omission of on Nissan Car Lease v. Lica Management, Jan.
the creditor is the proximate cause of the 13, 2016 under “Void or Inexistent Contracts”)
event, which led to the damage or injury
complained of, he cannot recover. (CIVIL The use of a credit card to pay for a purchase is
CODE, art. 2179) only an offer to the credit card company to enter
a loan agreement with the credit card holder.
3. Default or Delay (Mora) Before the credit card issuer accepts this offer, no
General rule: Those obliged to deliver or to do obligation relating to the loan agreement exists
something incur in delay from the time the obligee between them. A demand presupposes the
judicially or extrajudicially demands from them existence of an obligation between the parties.
the fulfillment of their obligation. (CIVIL CODE, art. (Pantaleon v. American Express International,
1169) Inc., G.R. No. 174269, Aug. 25, 2010)
Exception: Demand by the creditor NOT If the contract stipulates that “the project is
necessary when: (LTU) estimated to be completed in 6 years,” failure to
1. Law or obligation expressly declares so finish the project in 6 years does not put the
2. Time is of the essence obligor in delay. Mere estimate cannot be
3. Demand would be Useless (CIVIL CODE, considered a period or a day certain. (Salonte v.
art. 1169) COA, et al., G.R. No. 207348, Aug. 19, 2014)
Requisites to be in delay: (CIVIL CODE, art. Kinds of delay

1169) 1. Mora solvendi – delay or default committed
1. Obligation is Demandable by obligor
2. Debtor Delays performance 2. Mora accipiendi – delay or default
3. Creditor Demands performance judicially or committed by obligee
extrajudicially 3. Compensatio Morae – default of both
obligor and obligee (DESIDERIO P. JURADO,
Note: In reciprocal obligations, a party does not COMMENTS AND JURISPRUDENCE ON
incur in delay if the other party is not ready or OBLIGATIONS AND CONTRACTS 457 (2010))
willing to assume and perform the obligation
imposed upon him/her (CIVIL CODE, art. 1169) 4. Contravention of the tenor of the obligation
This refers to failure to comply with the terms of
But see: In reciprocal obligations, if the period for the obligation, and will require dolo, culpa or delay
the fulfillment of the obligation is fixed, demand as the cause of the failure to comply, in order to
by the obligee is still necessary before the obligor constitute a breach. (CIVIL CODE, art. 1170;
can be considered in default and before a cause DESIDERIO P. JURADO, COMMENTS AND
of action for rescission will accrue. (Solar Harvest JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS,
v. Davao Corrugated Carton Corporation, G.R. 74 (2010))
No. 176868, Jul. 26, 2010)
Defense against breach: FORTUITOUS EVENTS
Note: The power to rescind is implied in
reciprocal obligations. In Lam v. Kodak (2016), Requisites of Fortuitous Events (NIIU)
although there was no stipulation, the court ruled 1. Event must be Independent of obligor’s will;
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2. Event is Unforeseeable or unavoidable

3. Such event renders it Impossible for the The sudden act of a passenger who stabbed
debtor to perform (not only makes it difficult, another passenger in the bus is within the context
but impossible) of force majeure. But before common carrier may
4. No contributory negligence (Lasam v. Smith, be absolved, it is not enough that the accident
G.R. No. L-19495, Feb. 2, 1924) was caused by force majeure. The common
carrier must still prove that it was not negligent in
General rule: Loss due to fortuitous events shall causing injuries. (Bachelor Express, Inc. v. CA,
extinguish the obligation (CIVIL CODE, art. 1174) G.R. No. 85691, Jul. 31, 1990)
Exceptions: (SALTD) If obligation is to deliver materials for a fixed

1. If by Law the obligor is liable even for period such as 30 years, fortuitous events
fortuitous event occurring within the period, such as the outbreak
2. If by Stipulation the obligor is liable even for of war which took 6 years out of the 30-year
fortuitous event period and destroyed plants, machinery and
3. If the nature of the obligation requires the equipment and prevented the obligor from
Assumption of the risk (CIVIL CODE, art. 1174) making deliveries, the occurrence of such a
4. If the loss of the thing occurs after the obligor fortuitous event will not extend the period of the
incurred in Delay; and contract beyond its fixed period. This is because
5. If the obligor promised to deliver the same the obligor was excused from performance during
thing to Two or more persons who do not the period when the fortuitous events prevented it
have the same interest (CIVIL CODE, art. from performing its obligations. (Victorias
1165) Planters Association v. Victorias Milling, G.R. No.
6648, Jul. 25, 1955)
Declaration of martial law, per se, is not a
fortuitous event. While a lot of businesses A person obliged to perform an obligation is NOT
suffered financial reverses during this period, it excused from a fortuitous event when the nature
could not be used as a defense when sued for of the obligation requires the assumption of risk.
collection of debts validly incurred. (Philippine In other words, it is NOT enough that the event
Free Press v. CA, G.R. No. 132864, Oct. 24, should not be foreseen or anticipated, but it must
2005) be one that is impossible to foresee or to avoid.
(Republic v. Luzon Stevedoring, G.R. No. L-
The Asian Debt Crisis in 1997 is not a fortuitous 21749, Sept. 29, 1967)
event. A real estate company engaged in pre-
selling of condominium units should have been VI. REMEDIES AVAILABLE TO CREDITOR IN
able to assess foreign exchange risks. The CASES OF BREACH
fluctuating movement of the Philippine Peso in
the FX market is a daily occurrence, so 1. Specific Performance - requiring delivery or
Megaworld cannot claim fortuitous events as an performance of the obligation.
excuse for non-delivery of units. (Megaworld • Can be combined with damages, but
Globus Asia Inc. v. Tanseco, G.R. No. 181206, inconsistent with the remedy of
Oct. 9, 2009) resolution or cancellation. (Magdalena
Estate, Inc. v. Myrick, G.R. No. L-47774,
The Christmas season cannot be cited as an act Mar. 14, 1941)
of God that would excuse a delay in the • Can be pursued successively (but not
processing of claims by a government entity that simultaneously) with resolution or
is subject to routine accounting and auditing cancellation; if initial action is for specific
rules. (MIAA v. ALA Industries Corp, G.R. No. performance and obligor does not or
147349, Feb. 13, 2004)
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cannot deliver, courts have allowed (Multinational v. Ara Security, 441 SCRA 126
obligee to pursue resolution or (2004))
cancellation. (CIVIL CODE, art. 1191)
• This is NOT a remedy in an obligation Remedy Specific only to Obligations Not to
“Not to do” that has been breached since Do: to compel that the act in violation of the
the prohibited act has been done. obligation to be undone if possible and if not, only
(HECTOR S. DE LEON & HECTOR M. DE damages may be pursued. (CIVIL CODE, art.
LEON, JR., COMMENTS AND CASES ON 1168)
OBLIGATIONS AND CONTRACTS 44 (2014)) ————- end of topic ————-
2. Damages - can be combined with any remedy C. KINDS OF OBLIGATIONS

or pursued independently – also available in
breach of any prestation. (CIVIL CODE, art. I. PURE
1191)
Pure Obligations - It is an unqualified obligation,
3. Substitute performance - ask others to which is demandable immediately. Its
perform and charge the cost to the obligor performance does NOT depend upon a future
(CIVIL CODE, arts. 1165-1168) and uncertain event, or past event unknown to the
• Not available in: parties. (CIVIL CODE, art. 1179)
a. Obligation to give specific things
(already set apart from class or genus II. CONDITIONAL OBLIGATION
to which it belongs); (CIVIL CODE, art.
1165) Conditional Obligations - The performance in
b. Obligations not to do; (CIVIL CODE, conditional obligations depends upon a (1) future
art. 1168) and AND uncertain event, (2) or upon a past event
c. Obligations to do which are purely unknown to the parties. (HECTOR S. DE LEON &
personal in character. (4 ARTURO M. HECTOR M. DE LEON, JR., COMMENTS AND CASES
TOLENTINO, COMMENTARIES AND
ON OBLIGATIONS AND CONTRACTS 106 (2014))
JURISPRUDENCE ON THE CIVIL CODE OF
THE PHILIPPINES 99-100 (1991))
Note: For the first kind, Article 1179 uses the
phrase “future ‘or’ uncertain” -- it must be
4. Resolution/Cancellation - implied in construed as “and”. (4 ARTURO M. TOLENTINO,
reciprocal obligations, but not available if the COMMENTARIES AND JURISPRUDENCE ON THE CIVIL
breach is slight, unless time is of the CODE OF THE PHILIPPINES 144 (1991))
essence. (Biando v. Embestro, G.R. No. L-
11919, Jul. 27, 1959) If breach is only slight, Conditional Obligations may be further
generally courts will grant additional time for classified into:
the obligor to pay or perform and after this
5. Suspensive or resolutory
additional time, if obligor still does not
6. Potestative (based on the will of one of the
perform, courts will allow resolution or
parties), Casual (based upon chance or will of
cancellation. (CIVIL CODE, art. 1191;
3rd parties), and Mixed (combination of will of
Kapisanan Banahaw v. Dejarme, G.R. No. L-
one of the parties + chance and/or will of 3rd
32908, Nov. 28, 1930) The principle is that
persons)
resolution will not be permitted for a slight or
7. Possible or impossible
casual breach of a contract, but only for such
8. Positive or negative
breaches as are so substantial and
9. Divisible or indivisible
fundamental as to defeat the object of the
10. Conjunctive or alternative
parties in entering into the agreement.
11. Express or implied
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(DESIDERIO P. JURADO, COMMENTS AND • Gives birth to obligations

JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
110 (2010)) COMMENTS AND CASES ON OBLIGATIONS AND
CONTRACTS 106-107 & 111-112 (2014))
Note: All combinations are valid, EXCEPT only
those conditional obligations which are Rule on fruits in suspensive condition:
suspensive and dependent solely on the will of (a) In suspensive conditions, the effect of a
the debtor. conditional obligation “to give” retroacts to the
day of the constitution of the obligation.
Thus: suspensive condition + purely potestative (b) Nevertheless, when the obligation imposes
on debtor = both condition and obligation void. reciprocal prestations, the fruits and
Hence, there is no obligation. interests during the pendency of the
suspensive condition shall be deemed to
A provision in a Conditional Deed of Sale stating have been mutually compensated.
that the vendee shall pay the balance of the (c) If the obligation is unilateral, the debtor or
purchase price when he has successfully obligor shall appropriate the fruits and
negotiated and secured a right of way is not a interests received, unless from the nature
purely potestative condition on the perfection of and circumstances of the obligation it should
the contract nor on the validity of the entire be inferred that the intention of the person
contract or its compliance as contemplated by constituting the same is different. (CIVIL
Art. 1308. Such a condition is likewise dependent CODE, art. 1187)
on chance as there is no guarantee that the
vendee and the third-party landowners would Note: Doctrine of constructive fulfillment -
come to an agreement regarding the road right of Condition shall be deemed fulfilled when the
way, a type of mixed condition expressly allowed obligor voluntarily prevents fulfillment. (CIVIL
under Art. 1182. Where the so-called potestative CODE, art. 1186)
condition is imposed not on the birth of the • REQUISITES:
obligation but on its fulfillment, only the condition (a) Condition is suspensive
is avoided, leaving unaffected the obligation itself. (b) Obligor prevents fulfillment of
(Catungal v. Rodriguez, GR No. 146839, Mar. 23, condition
2011) (c) Obligor acts voluntarily
1. Suspensive condition 2. Resolutory condition

• The happening of the condition creates the • Demandable at once
obligation. • Once the condition is established or
• Not demandable at once. acknowledged, the right to demand
• Gives rise to the existence of an obligation. performance immediately exists and
For example, in a Contract to Sell, the therefore the obligation can be demanded at
fulfillment of the suspensive condition, which once.
is the full payment of the purchase price, • It is also known as “condition subsequent”
gives rise to the obligation of the seller to • The happening of the condition has the effect
convey the title to the prospective buyer. If of extinguishing an obligation. (HECTOR S. DE
the condition was not fulfilled, it only prevents LEON & HECTOR M. DE LEON, JR., COMMENTS
the obligation of the seller to convey title to AND CASES ON OBLIGATIONS AND CONTRACTS
arise. (HECTOR S. DE LEON & HECTOR M. DE 109 & 111-112 (2014))
LEON, JR., COMMENTS AND CASES ON
OBLIGATIONS AND CONTRACTS 102 (2014)) Note: In case of reciprocal obligations, the
• Also known as “condition precedent” obligation of one is a resolutory condition of the
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obligation of the other, the non-fulfillment of which if it has become evident that the event cannot
entitles the other party to resolve or cancel the occur. (CIVIL CODE, art. 1185)
contract. (HECTOR S. DE LEON & HECTOR M. DE
LEON, JR., COMMENTS AND CASES ON OBLIGATIONS Otherwise, generally, a party must wait for the
AND CONTRACTS 53 (2014)) condition to be fulfilled, until it becomes certain
that condition (1) cannot be fulfilled (parties are
3. Potestative condition released), or (2) may be deemed fulfilled at such
The fulfillment of the condition entirely depends time as the parties contemplated, bearing in mind
upon the sole will of a party – may be purely the nature of the obligation. (CIVIL CODE, art.
potestative on the part of the obligee (valid), or 1185)
the obligor/ debtor (void if suspensive). (EDGARDO
L. PARAS, CIVIL CODE OF THE PHILIPPINES POSITIVE NEGATIVE
ANNOTATED: PRESCRIPTION; OBLIGATIONS AND SUSPENSIVE SUSPENSIVE
CONTRACTS 201 (2016)) Condition
Condition
should NOT
must be
Effect of illegal, immoral or impossible happen
Rule fulfilled before
condition before
stipulated
TO GIVE / TO DO NOT TO GIVE / NOT stipulated
term
SOMETHING TO DO SOMETHING term
Both condition and Condition considered Effect if The parties
obligation are void, not written, hence, Condition are released
Obligation
hence, there is no the obligation is is fulfilled as of the date
arises from
obligation. valid – the condition before of the
fulfillment
is merely arrival of happening of
Exception: In superfluous. the term the condition
gratuitous (ERNESTO L. PINEDA, Parties are
obligations, iIIegal OBLIGATIONS AND released as of
conditions are CONTRACTS 92 arrival of the
considered as not (2009)) term
Effect if
written, hence
Condition
condition is deemed But Parties The obligation
is not
not written and the may be arises from
fulfilled
obligation is valid released even the time the
before the
(becomes a pure before arrival term arrives.
arrival of
obligation). (HECTOR if it becomes
the term
S. DE LEON & HECTOR indubitable
M. DE LEON, JR., that the
COMMENTS AND condition will
CASES ON not happen
OBLIGATIONS AND
CONTRACTS 135 ————- end of topic ————-
(2014))
III. OBLIGATIONS WITH A PERIOD OR A
TERM
Condition coupled with a Term: The condition
that some event will not happen at a determinate Obligations which are demandable on a “day
time, shall render the obligation effective from the certain”.
moment (1) the time indicated has elapsed, or (2)
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“Day certain” refers to either: Retroactivit Once fulfilled, There is no

(a) A future AND certain event; or y it will retroact retroactivity
(b) Payable when able, or when debtor promises to date the because
to pay when “his means permit him to do so” obligation there is
– period is to be fixed by the court, taking into was entered already an
account intention of the parties (ERNESTO L. into obligation
PINEDA, OBLIGATIONS AND CONTRACTS 129 (Note: if it is from the time
(2009)) an obligation the parties
to do or not to enter in the
May also be further classified into: do, courts will obligation,
(a) Suspensive - obligation is suspended until determine except only in
arrival of the period; or retroactivity) prescription
(where
(b) Resolutory - obligation is immediate but EXCEPT: prescriptive
terminates upon arrival of the period. (i) fruits (Art. period is
(HECTOR S. DE LEON & HECTOR M. DE LEON, 1187- when counted from
JR., COMMENTS AND CASES ON OBLIGATIONS the obligation arrival of the
AND CONTRACTS 194 (2014)) to deliver term – i.e.,
arises), (ii) when the
Difference between suspensive or resolutory prescription action could
condition and term (from have been
CONDITION TERM fulfillment of brought).
Suspensive It may or may It is certain condition –
not happen, that it will when action
hence happen; just could have
uncertain uncertain as been brought)
whether there to when it will (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
is an happen. COMMENTS AND CASES ON OBLIGATIONS AND
obligation. CONTRACTS 191 (2014))
Resolutory It is not It is certain
certain if the that it will Effects before the happening/ arrival of
obligation will terminate at a condition/ term
terminate at future time. Obligee: May file Protective Action only, such as
all asking for security or requiring escrow of the
object since there is no right or obligation yet at
this time.
Obligor: No obligation to deliver or perform yet at

this time.
Note: In an obligation to give specific things,

these are the effect of loss, impairment or
improvement of the specific thing which is the
object of the obligation:
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CAUSE LOSS IMPAIR IMPROVEM Both are subject to the right of each party to waive
MENT ENT – even if the obligor is willing to pay interest for
Obligor Obligor Obligee Obligor has the remainder of the period. (DESIDERIO P.
’s Fault to pay may usufructuary JURADO, COMMENTS AND JURISPRUDENCE ON
damage choose rights only – OBLIGATIONS AND CONTRACTS 152-153 (2010))
s resolutio i.e., can use
n or it but is not Presumption: for the benefit of both parties
fulfillme entitled to (CIVIL CODE, art. 1196; HECTOR S. DE LEON &
nt, with payment, HECTOR M. DE LEON, JR., COMMENTS AND CASES
damage and can ON OBLIGATIONS AND CONTRACTS 197 (2014))
s remove it
only if it will It can be given to either party:
not cause (a) To the Debtor or Obligor: By law or by
damage stipulation (e.g., payable on or before)
Obligee Obligor Deliver Obligor (b) To the Creditor or Obligee: Only by
’s Fault release in its without right Stipulation (DESIDERIO P. JURADO, COMMENTS
d impaire to payment AND JURISPRUDENCE ON OBLIGATIONS AND
d state of CONTRACTS 152-153 (2010))
improvement
Nature/ Obligor Borne Inures to the Debtor/obligor may lose the benefit of the period
Fortuito release by the benefit of the (therefore may be compelled to pay immediately)
us d obligee; obligee in the following cases (FAt-VISA):
Events cannot (a) Debtor becomes Insolvent (when his assets
ask for are less than his liabilities)
damage Exception: When he gives security for
s or the obligation
refuse (b) Failure to create or establish the security
to promised;
accept (c) When Security established but is later
impaire impaired (through fault of debtor) or totally
d object lost (due to fault of debtor or fortuitous
(CIVIL CODE, art. 1189; HECTOR S. DE LEON & events).
HECTOR M. DE LEON, JR., COMMENTS AND CASES Unless: Debtor provides another
ON OBLIGATIONS AND CONTRACTS 135-137 security of equal value;
(2014)) (d) Violation of any undertaking on the basis of
which, period is granted;
The same effect applies if the resolutory condition (e) Debtor Attempts to abscond (mere attempt
happens and the party obliged cannot return the sufficient, because if actual abscondment is
object or is improved for the same above reasons. to be awaited, creditor can no longer collect;
and
Benefit of the period (f) With an Acceleration clause stipulation
Significance of Period: • Applies to obligations payable in
(a) Obligor cannot be compelled to pay or installments or based on amortization
perform before the arrival of the period schedule, where stipulation says that
(b) Obligee cannot compel payment or failure to pay one or some installments or
performance amortizations will entitle creditor to
accelerate payment – i.e., to call for the
payment on the entire remaining unpaid
obligation. (CIVIL CODE, art. 1198)
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When courts may fix period (ID-JBL) General Rule: The right to make a choice is
(a) If the obligation does NOT fix a period, but with the debtor/obligor, subject to the rule that
from its nature and circumstances it can be he cannot choose the impossible, unlawful or
Inferred that a period was intended by the could not have been the object of the obligation.
parties (CIVIL CODE, art. 1197) (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
(b) If the duration of the period Depends upon COMMENTS AND CASES ON OBLIGATIONS AND
the will of the debtor (CIVIL CODE, art. 1197) CONTRACTS 218 (2014))
(c) In case of reciprocal obligations, when there
is a Just cause for fixing a period (CIVIL CODE, Exception: By contrary stipulation, the right to
art. 1191) make a choice may be given to the
(d) If the debtor Binds himself when his means creditor/obligee or to a 3rd person, subject also to
permit him to do so (CIVIL CODE, art. 1180) the rule that he CANNOT choose the:
(e) If no period for the Lease has been set, • Impossible
applicable in specific cases depending on the • Unlawful
length of the lessee’s stay in the premises • Could not have been the object of the
(CIVIL CODE, art. 1687) obligation. (HECTOR S. DE LEON &
Note: Art. 1197 is only applicable when there is HECTOR M. DE LEON, JR., COMMENTS AND
absence of any period fixed by the parties. It CASES ON OBLIGATIONS AND CONTRACTS
requires that period cannot be set arbitrarily by 218 (2014))
the courts.
• 2-step process to determine if the Court When Choice is Effective – from notification.
may fix the period (a) Debtor’s Choice: upon notice to creditor
(a) Determine that the obligation (b) Creditor’s Choice: upon notice to debtor
does not fix a period (or that (c) 3rd Person’s Choice: upon notice to both
period is made to depend upon debtor and creditor (CIVIL CODE, art.
will of debtor) but from the nature 1200; HECTOR S. DE LEON & HECTOR M.
and circumstances, it can be DE LEON, JR., COMMENTS AND CASES ON
inferred that a period was OBLIGATIONS AND CONTRACTS 218
intended (2014))
(b) Decide what period was
probably contemplated by the Note: There is no form required for the notice.
parties. (Gregorio Araneta, Inc. It may be oral or written, express or implied (as
v. The Philippine Sugar Estates when debtor delivers one of the choices and
Dev. Co., G.R. No. L-22558, May creditor accepts). Mere notice is required, not
31, 1967) consent. Once choice is made and
communicated, it becomes irrevocable, and
converted to a simple obligation. (DESIDERIO P.
IV. ALTERNATIVE OR FACULTATIVE JURADO, COMMENTS AND JURISPRUDENCE ON
OBLIGATIONS OBLIGATIONS AND CONTRACTS 169 (2010))
Alternative obligations If the party who has the right to make the choice
Initially, the obligation is indeterminate and does not make it or delays, the right does not
becomes determinate upon making of choice and pass to the other party – action is specific
notification. (HECTOR S. DE LEON & HECTOR M. DE performance to compel delivery of ANY
LEON, JR., COMMENTS AND CASES ON OBLIGATIONS prestation. (ERNESTO L. PINEDA, OBLIGATIONS AND
AND CONTRACTS 217 (2014)) CONTRACTS 146-147 (2009))
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Note: When only one object or prestation is left, (b) If creditor has right of choice
it becomes a tacit choice. The obligation CAUSE ONE/SOME ALL
becomes a simple obligation. (CIVIL CODE, art. Debtor’s Act Creditor may Creditor
1202) choose from entitled to
remaining, or choose the
Effect of loss / impossibility of one, some or the price of value of any
all prestations any object of the objects
destroyed by lost, with
(a) If debtor has right of choice the debtor, damages
CAUSE ONE/SOME ALL with
Debtor’s Exercise of the Creditor is damages
Act right of choice, entitled to Creditor’s Exercise of Obligation is
debtor may damages Act the right of extinguished
choose from based on choice-
remaining value of the creditor may
last one lost choose the
Creditor’s Debtor can Debtor is from
Act choose (a) entitled to remaining
deliver object resolution or objects
from remaining cancellation Fortuitous Creditor to Obligation is
or (b) plus damages Event choose from extinguished
resolution or remaining; if
cancellation only 1 left –
with damages becomes a
Fortuitous Debtor may Obligation is simple
Event choose from extinguished obligation
remaining (DESIDERIO P. JURADO, COMMENTS AND
objects; and if JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS
only 1 left – it 168 (2010))
becomes a
simple In alternative obligations, various things are due
obligation but the delivery or performance of one will
(DESIDERIO P. JURADO, COMMENTS AND extinguish the obligation. (HECTOR S. DE LEON &
JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS HECTOR M. DE LEON, JR., COMMENTS AND CASES
172-173 (2010)) ON OBLIGATIONS AND CONTRACTS 217 (2014))
Note: As long as one choice is left, it becomes a If one of the prestations is illegal, others may be
simple obligation and if the last object is lost due valid but obligations remains. (ERNESTO L.
to fortuitous events, the obligation is PINEDA, OBLIGATIONS AND CONTRACTS 147 (2009))
extinguished. (HECTOR S. DE LEON & HECTOR M.
DE LEON, JR., COMMENTS AND CASES ON If it is impossible to give all except one, the last
OBLIGATIONS AND CONTRACTS 221-222 (2014)) one must still be given. (4 ARTURO M. TOLENTINO,
COMMENTARIES AND JURISPRUDENCE ON THE CIVIL
CODE OF THE PHILIPPINES 209 (1991))
The right to choose may be given either to the

debtor or creditor. (DESIDERIO P. JURADO,
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COMMENTS AND JURISPRUDENCE ON OBLIGATIONS Exceptions: (FLENT)

AND CONTRACTS 168 (2010)) 1. When the obligation Expressly stipulates
solidarity;
V. JOINT AND SOLIDARY OBLIGATIONS 2. When the Law requires solidarity;
3. When the Nature of the obligation requires
Involves multiple parties (more than one debtor or solidarity;
more than one creditor or more than 1 debtors 4. When a charge or condition is imposed upon
and creditors). heirs or legatees and the Testament
expressly makes the charge or condition in
The liability or rights of parties may be joint or solidum (Manresa); and
solidary. It is presumed joint. Solidary obligation 5. When a solidary responsibility is imputed by
requires either stipulation or law to create the a Final judgment upon several defendants.
solidary liability/right. (CIVIL CODE, art. 1207) (Gutierrez v. Gutierrez, G.R. No. 34840,
Sept. 23, 1931)
In a joint obligation/credit, just divide the
obligation/credit into as many numbers of debtors Effects of joint liability
and creditors to get the sharing, unless sharing 1. Demand on one produces delay only with
was stipulated (sharing is presumed equal). (CIVIL respect to the debt of the debtor against
CODE, art. 1208) whom a demand is made.
2. Interruption in payment by one does not
In a joint obligation, each of the joint debtors is benefit or prejudice the other.
only responsible for his/her own share and each 3. Each debtor can be held liable only for the
cannot be made to pay for the share of others, payment of his proportionate share of the
even those who are insolvent or who have died; debt.
joint creditors cannot collect the share of the 4. A joint debtor cannot be compelled to answer
others. (CIVIL CODE, arts. 1207 & 1209) for the acts or liability of the other debtors.
5. Vice of one debtor to creditor has no effect on
In a solidary obligation, the solidary debtors can the others.
be made to pay the full amount of the obligation 6. Insolvency or death of one debtor does NOT
(subject to presentation of available defenses); affect other debtors.
solidary creditors can collect the full amount of the
obligation. (CIVIL CODE, art. 1216) Effects of joint credit
1. Each creditor can demand for the payment
Among solidary debtors and creditors, one who only of his proportionate share of the credit.
pays or receives the full amount of the obligation 2. A joint creditor cannot act in representation of
can recover from or deliver the share of others. the other creditors.
(CIVIL CODE, art. 1214 &1217)
NOTE: Unless there is no specification as to their
A. JOINT (DIVISIBLE) OBLIGATION proportionate share in the credit or in the debt, the
creditors and debtors in a joint obligation shall be
Joint obligation (Obligacion Mancomunada) – entitled or shall make payment in equal
The whole obligation is to be paid or fulfilled proportion.
proportionately by different debtors or demanded
proportionately by the different creditors. B. JOINT (INDIVISIBLE) OBLIGATIONS
General rule: The presumption is that an If there are 2 or more debtors, the fulfillment of
obligation is always joint. (CIVIL CODE, art. or compliance with the obligation requires the
1207) concurrence of all the debtors, although each for
his own share. (CIVIL CODE, art. 1209) The
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obligation can be enforced only by Words denoting solidarity include “jointly and
proceeding against all of the debtors. severally” (most common); “individually and
collectively”; “severally”; “individually”;
If there are 2 or more creditors, the concurrence “collectively”; “separately”; “distinctively”,
or collective act of all the creditors, although each “individually liable” and “individually and jointly”.
for his own share, is also necessary for the (Ronquillo v. Court of Appeals, G.R. No. L-55138,
enforcement of the obligation (CIVIL CODE, art. Sept. 28, 1984)
1209)
Also, use of pronoun “I” in a promissory note
The Court pointed out that there’s a loan where several debtors sign denotes solidarity.
partnership, which means that there should be an (ERNESTO L. PINEDA, OBLIGATIONS AND
inclined sharing of losses. However in the JVA, CONTRACTS 163-164 (2009); Republic Planters
there was an agreement that all cash should be Bank v. CA, 216 SCRA 738 (1992))
paid by X; SC held that you should apply the rules
on partnership rather than the JV contract. If a solidary debtor pays the obligation in part and
(Marsman v. Philippine Geonalytics, G.R. No. is issued a quitclaim, he can recover
183374, Jun. 29, 2010) reimbursement from the co-debtor only insofar as
his payment exceeded his share in the total
Effect of breach obligation. If the debtor pays less than his share,
If one of the joint debtors fails to comply with his he cannot demand reimbursement because his
undertaking, the obligation can no longer be payment is less than his actual debt. (Republic
fulfilled or performed. Consequently, it is Glass Corp. v. Qua, G.R. No. 144413, Jul. 30,
converted into one of indemnity for damages. 2004)
Innocent joint debtor shall not contribute to the
indemnity beyond their corresponding share of Kinds of solidary obligations
the obligation. (CIVIL CODE, art.1224) 1. Active Solidarity
2. Passive Solidarity
INDIVISIBILITY SOLIDARITY 3. Mixed Solidarity
Refers to the Refers to the legal tie 4. Conventional Solidarity
prestation which and consequently to 5. Legal Solidarity (HECTOR S. DE LEON &
constitutes the object the subjects or HECTOR M. DE LEON, JR., COMMENTS AND
of the obligation parties of the CASES ON OBLIGATIONS AND CONTRACTS 217-
obligation 219 (2014))
Plurality of subjects is Plurality of subjects is
NOT required indispensable 1. Active Solidarity – solidarity on the part of
(HECTOR S. DE LEON & HECTOR M. DE LEON, JR., creditor or obligee
COMMENTS AND CASES ON OBLIGATIONS AND
CONTRACTS 225 (2014)) (a) Each creditor represents the other in the act
of recovery of payment. (HECTOR S. DE LEON
C. SOLIDARY OBLIGATIONS & HECTOR M. DE LEON, JR., COMMENTS AND
CASES ON OBLIGATIONS AND CONTRACTS 218
Solidary obligation (Obligacion Solidaria) – (2014))
must be expressed in stipulation or provided by
law or by nature of obligation. Otherwise, it will be (b) Credit is divided equally between creditors as
considered a joint obligation/credit. (CIVIL CODE, among themselves.
art.1207)
(c) Debtor may pay any of the solidary creditors.
(CIVIL CODE, art. 1214)
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(d) Any creditor can collect full amount of the living debtors, in which case the 2-year period
obligation. Unless there is an agreement as does not apply.
to which creditor can collect. Debtor must pay
to the creditor who first makes a demand. Although the Rules of Court mandate that in case
There is a case of improper payment if the of death of a respondent, the claims should be
debtor pays to another creditor who did not filed in the settlement of estate, the court said
make a demand; he can be made to pay that’s a procedural rule and the rule of the Civil
again to the creditor who made the demand. Code on solidary liability should prevail — in
(CIVIL CODE, art. 1214) which case, creditor can choose who to sue.
(Boston v. CA, G.R. No. 173946, June. 19, 2013)
(e) After a solidary creditor collects the full
amount, all debtors are released from the Effect if several solidary debtors offer to pay:
obligation. The creditor who received creditor can choose from anyone or all of them,
payment must then deliver the shares of the as long as he does not collect more than the full
other solidary creditors (presumed equal amount of the obligation.
unless amount indicated). (CIVIL CODE, art.
1215; 4 ARTURO M. TOLENTINO, Effect of Prescription: interruption of
COMMENTARIES AND JURISPRUDENCE ON THE prescription to one creditor affects all creditors. (4
CIVIL CODE OF THE PHILIPPINES 228 (1991)) ARTURO M. TOLENTINO, COMMENTARIES AND
JURISPRUDENCE ON THE CIVIL CODE OF THE
Effect if one of solidary creditor dies: Share is PHILIPPINES 229 (1991))
transmitted to heirs (but collectively)
Effect of Delay: interests from delay on one
2. Passive Solidarity – solidarity on the part of debtor is borne by all debtors. (4 ARTURO M.
debtors or obligors TOLENTINO, COMMENTARIES AND JURISPRUDENCE
ON THE CIVIL CODE OF THE PHILIPPINES 229 (1991))
(a) Any debtor can be made to pay the full
amount of the obligation with the right to Defenses – a solidary debtor when sued can
recover from co-debtors. (CIVIL CODE, art. raise the ff. defenses:
1216) (a) From the nature of obligation – e.g. the
obligation is void, has prescribed, or has
(b) The right to make a choice of who among already been paid – the defense is complete:
the debtors the creditor will proceed debtor sued is not liable, and no one is liable;
against, lies on the creditor.
(b) Personal to him – may be: (i) complete
An accommodation party under the law is (debtor sued is not liable, but others may be
solidarily liable based on the Negotiable sued and the amount that may be collected
Instruments Law. (Gonzales v. PCIB, G.R. No. should be less than the share of the debtor
180257, Feb. 23, 2011) with a personal defense) e.g., minority,
vitiated consent; or (ii) partial e.g., non arrival
Effect of demand on one solidary debtor: It will of term or condition – possible even if
not stop the creditor from going against another solidary-debtor sued is liable for share of
debtor as long as the debt has not yet been paid others, less his own share) (4 ARTURO M.
in full. (CIVIL CODE, art. 1216) TOLENTINO, COMMENTARIES AND
Effect if one of solidary debtor dies: creditor is PHILIPPINES 250-251 (1991))
not bound to make a claim on the estate of the
deceased debtor within 2-year period under the (c) Those which pertains to the share of his
Rules of Court since creditor may choose any of co-debtors – with respect to the share which
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personally belong to others, the debtor may Effects:

avail himself thereof only as regards that part No reimbursement if payment is made after
of the debt for which the others are prescription or became illegal.
responsible. (CIVIL CODE, art. 1222)
Payment made before debt is due: no interest
Once creditor is paid in full, the obligation is can be charged except from maturity, otherwise,
extinguished, and the debtor who pays is entitled interest can be charged from date of payment
to reimbursement from others, as if joint (based
on agreed sharing or if not, equal). (CIVIL CODE, Insolvency of one: others are liable for share
art. 1217) pro-rata
When one of the solidary debtors cannot, If different terms and conditions: collect only
because of his insolvency, reimburse his share to what is due, later on collect as and when they
the debtor paying the obligation, such share shall become due or the conditions are fulfilled
be borne by all his co-debtors, in proportion to the
debt of each. (CIVIL CODE, art. 1217) Remission made after payment is made: co-
debtor still entitled to reimbursement HECTOR S.
Difference from joint obligation: The share of DE LEON & HECTOR M. DE LEON, JR., COMMENTS
the insolvent debtor is assumed proportionately AND CASES ON OBLIGATIONS AND CONTRACTS 238-
by others, in the meantime. 239 (2014))
Reimbursement includes interest from date of Effect of insolvency or death of co-debtor: still
payment until actual reimbursement, except if liable for whole amount
solidary debtor pays before maturity – in which
case interest runs only from maturity. Fault of any debtor: everyone is responsible to
the creditor – price, damage and interest, but the
3. Mixed Solidarity – on the part of the obligors debtor at fault should reimburse those who paid
and obligees, or the part of the debtors and the the creditor (HECTOR S. DE LEON & HECTOR M. DE
creditors (HECTOR S. DE LEON & HECTOR M. DE LEON, JR., COMMENTS AND CASES ON OBLIGATIONS
LEON, JR., COMMENTS AND CASES ON OBLIGATIONS AND CONTRACTS 240-241 (2014))
Complete/personal defense: total or partial (up
4. Conventional Solidarity – agreed upon by the to amount of share only) if NOT personal to him
parties (HECTOR S. DE LEON & HECTOR M. DE (Braganza v. Villa Abrille, G.R. No. L-12471, Apr.
LEON, JR., COMMENTS AND CASES ON OBLIGATIONS 3, 1959)
SOLIDARY DEBTOR SURETY
5. Legal Solidarity – imposed by law; instances: With principal liability With subsidiary
(a) Obligations arising from tort liability: can be made
(b) Obligations arising from quasi-contracts to pay only when
(c) Legal provisions regarding obligation of principal debtor does
devisees and legatees not pay
(d) Liability of principals, accomplices, and Pays for full amount If he pays the full
accessories of a felony and can seek amount, he may
(e) Bailees in commodatum (HECTOR S. DE LEON reimbursement from recover the FULL
& HECTOR M. DE LEON, JR., COMMENTS AND other solidary debtors amount from principal
CASES ON OBLIGATIONS AND CONTRACTS 219- debtors
220 (2014))
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Extension of time Extension of time VI. OBLIGATIONS WITH A PENAL CLAUSE

granted to other granted to principal
solidary debtors w/o debtor w/o his One to which an accessory undertaking is
his consent does not consent releases him attached for the purpose of insuring its
release him performance by virtue of which the obligor is
bound to pay a stipulated indemnity or perform a
Can be made to pay Can bind himself for
stipulated prestation in case of breach. (HECTOR
the full amount less than the full
S. DE LEON & HECTOR M. DE LEON, JR., COMMENTS
amount of the
AND CASES ON OBLIGATIONS AND CONTRACTS 252
obligation
(2014))
(HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
COMMENTS AND CASES ON OBLIGATIONS AND Penal cause vs. Condition
CONTRACTS 222-223 (2014)) PENAL CLAUSE CONDITION
Serves as accessory NOT a separate
Effect of loss or impossibility of the obligation obligation; part of
prestation: principal
(a) If without fault – no liability Demandable in Never demandable
(b) If with fault – there is liability (also for damage default
and interest) Obligation exists No obligation until
(c) Loss due to fortuitous event after default – suspensive condition
there is liability (because of default) happens
(ERNESTO L. PINEDA, OBLIGATIONS AND Depends on the non- Principal itself is
CONTRACTS 189 (2009)) performance of the dependent on an
principal obligation uncertain event
As a rule, corporations are solely liable for their (ERNESTO L. PINEDA, OBLIGATIONS AND
obligations. The directors or trustees and officers CONTRACTS 203 (2009))
are not liable with the corporation even if it is
through their acts that the corporation incurred
the obligation. As an exception, directors or Obligation with a penal clause vs. Alternative
trustees and corporate officers may be solidarily obligation
liable with the corporation for corporate PENAL CLAUSE ALTERNATIVE
obligations if they acted “in bad faith or with gross OBLIGATION
negligence in directing the corporate affairs.” Only 1 prestation Several prestations
(Oliveras v. Castillo, G.R. No. 196251, Jul. 9, Impossibility of Impossibility of 1
2014) principal prestation does
extinguishes penalty NOT extinguish the
Note: The law clearly provides that the creditor obligation
who may have executed any acts mentioned in Debtor may not Debtor may choose
Art. 1215 (Novation, Compensation, Merger or choose between among the different
Confusion), as well as he or she who collects the principal and prestations
debts, shall be liable to the others for the share in penalty
the obligation corresponding to them. (HECTOR S. (ERNESTO L. PINEDA, OBLIGATIONS AND
DE LEON & HECTOR M. DE LEON, JR., COMMENTS CONTRACTS 203 (2009))
AND CASES ON OBLIGATIONS AND CONTRACTS 231
(2014))
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Obligation with a penal clause vs. Facultative Penalty as substitute for damages
obligation General rule: the penalty fixed by the parties
PENAL CLAUSE FACULTATIVE takes the place of all damages and interests in
OBLIGATION case of breach. (CIVIL CODE, art. 1226)
Penalty of payment Power to choose
in lieu of the prestation is Exceptions: (StiRF)
principal must be absolute 1. When by Stipulation of the parties, penalty,
expressly granted IN ADDITION to interest, may be collected;
Creditor may Creditor may not 2. When the debtor is sued for Refusal to pay
demand both if demand both the agreed penalty; and
expressly granted principal and 3. When debtor is guilty of Fraud. (CIVIL CODE,
substitute art. 1226)
CONTRACTS 203 (2009)) Double functions of penalty:
1. To provide for liquidated damages
Purpose 2. To strengthen the coercive force of the
1. Funcion coercitiva o de garantia – to insure obligation by the threat of greater
the performance of the obligation responsibility in the event of breach (HECTOR
2. Funcion liquidatoria – to liquidate the amount S. DE LEON & HECTOR M. DE LEON, JR.,
of damages to be awarded to the injured COMMENTS AND CASES ON OBLIGATIONS AND
party in case of breach of the principal CONTRACTS 258; 261-262 (2014))
obligation (compensatory); and
3. Funcione strictamente penal – in certain Kinds of penalties:
exceptional cases, to punish the obligor in (a) Legal – constituted by law
case of breach of the principal obligation (b) Conventional – constituted by agreement of
(punitive). (HECTOR S. DE LEON & HECTOR M. the parties
DE LEON, JR., COMMENTS AND CASES ON (c) Compensatory – established for the purpose
OBLIGATIONS AND CONTRACTS 253 (2014)) of indemnifying the damages suffered by the
obligee or creditor in case of breach of the
Characteristics obligation
1. Subsidiary – As a general rule, only penalty (d) Punitive – established for the purpose of
can be demanded, principal cannot be punishing the obligor or debtor in case of
demanded, Except: Penalty is joint or breach of the obligation
cumulative (Art. 1227), and in monetary (e) Subsidiary or alternative- in case of non-
obligations where both principal and interest performance only the penalty is demandable
as a form of penalty may be collected. (f) Joint or cumulative – both the principal
(HECTOR S. DE LEON & HECTOR M. DE LEON, undertaking and the penalty may be
JR., COMMENTS AND CASES ON OBLIGATIONS demanded (HECTOR S. DE LEON & HECTOR M.
AND CONTRACT 259-260 (2014)) DE LEON, JR., COMMENTS AND CASES ON
OBLIGATIONS AND CONTRACTS 256 (2014))
2. Exclusive – generally takes place of all
damages and interests. (HECTOR S. DE LEON Causes for reduction of penalty
& HECTOR M. DE LEON, JR., COMMENTS AND (a) Partial/irregular performance
CASES ON OBLIGATIONS AND CONTRACT 254 (b) Penalty provided is iniquitous/
(2014)) unconscionable (CIVIL CODE, art. 1229)
Although parties may voluntarily agree on any

amount of interest, voluntariness does not make
the stipulation on interest valid. A 5% per month,
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or 60% per annum, rate of interest is iniquitous, 6. Arrival of Resolutory Period (CIVIL CODE, art.
and must be struck down. (Menchavez v. 1193)
Bermudez, G.R. No. 185368, Oct. 11, 2012)
I. PAYMENT OR PERFORMANCE
Parties have wide latitude to stipulate any rate of
interest in view of BSP Circular 905, which The delivery of money or thing, or performance,
suspended the ceiling on interest effective Jan. 1, in any manner of the obligation. (CIVIL CODE, art.
1983. However, whenever interest is 1232)
unconscionable, the courts may declare it illegal.
Compounded interest of 5% monthly, being 1. Principles applicable for valid payment or
iniquitous and unconscionable, is void and performance
inexistent from the very beginning. Thus, the legal (a) Identity
rate of 6% per annum must be imposed in lieu of (b) Integrity or completeness
the excessive interest agreed upon by the parties. (c) Indivisibility (HECTOR S. DE LEON &
(Benavidez v. Salvador, G.R. No. 173331, Dec. HECTOR M. DE LEON, JR., COMMENTS AND
11, 2013) CASES ON OBLIGATIONS AND CONTRACTS
300-301 (2014))
(a) Principle of identity
D. EXTINGUISHMENT OF OBLIGATIONS
With respect to the prestation or the object –
Principal Modes of Extinguishment (PaL- the same thing or the same prestation, in the
CoCoCo-No) manner agreed upon, must be delivered or
(a) Payment or performance performed in order to extinguish the obligation.
(b) Loss of the thing due The obligor cannot compel the obligee to accept
(c) Condonation or remission of debt a different thing or prestation, even if the one
(d) Confusionor merger of rights offered is more valuable than the one agreed
(e) Compensation upon. (CIVIL CODE, art. 1244)
(f) Novation (CIVIL CODE, art. 1231)
With respect to parties – must be made by
Other modes of extinguishment proper party to proper party
(a) Annulment i. Payor - the one who delivers or performs
(b) Rescission must be the debtor or anyone interested in
(c) Fulfillment of resolutory condition the fulfillment of the obligation. Any other
(d) Prescription (CIVIL CODE, art. 1231) person requires the creditor’s consent (CIVIL
CODE, art. 1236)
Not stated in the Civil Code:
1. Death of a party in personal obligations (4 When there is a 3rd person interested in the
ARTURO M. TOLENTINO, COMMENTARIES AND fulfillment of the obligation – creditor must
JURISPRUDENCE ON THE CIVIL CODE OF THE accept the payment and debtor need not give
PHILIPPINES 271 (1991)) consent.
2. Mutual Desistance (Saura Import & Export
Co. v. DBP, GR No. L-24968, Apr. 27, 1972) When a 3rd person not interested in the
3. Compromise (CIVIL CODE, art. 2028) fulfillment of the obligation pays/performs –
4. Impossibility of Fulfillment (CIVIL CODE, art. creditor can refuse to accept, but once
1184) accepted, the obligation to the creditor is
5. Happening of Fortuitous Event (CIVIL CODE, extinguished. Note: There is full subrogation
art. 1165) if the debtor consented to the payment by the
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3rd person (unless he intended it to be a Payment to an incapacitated person, valid if:

donation). In the absence of consent by the (KB)
debtor, the 3rd person is entitled only to 1. Incapacitated person Kept the thing
reimbursement of the payment made, to the delivered, or
extent that the debtor has been benefitted 2. Insofar as the payment has been Beneficial
o W/O DEBTOR’S CONSENT – Only to him. (CIVIL CODE, art. 1241)
the cost which the third person paid
to creditor will be the extent of third Where payment should be made
person’s right to collect. (a) In the place designated in the obligation
o W/ CONSENT – third person gets all (b) If there is no express stipulation and the
rights including right against undertaking is to deliver a specific thing – at
securities, collateral guarantees, etc. the place where the thing might be at the
(CIVIL CODE, arts. 1236-1238) moment the obligation was constituted
(c) In other case – in the place of the domicile of
ii. Payee - creditor or obligee at the time the debtor (CIVIL CODE, art. 1251)
payment is due (includes successor in
interest of transferee since credit is generally When to pay: Generally, upon demand. (See
assignable) (CIVIL CODE, art. 1240) previous discussions when demand is not
necessary)
If paid to a 3rd person – Payment is valid only
in any of the ff. cases: (b) Principle of integrity (CIVIL CODE, art. 1233)
(a) Payment which redounded to the benefit
of the obligee General rule: A debt shall not be deemed paid
Instances when the presumption that the UNLESS the thing or service of which the
payment redounded to the benefit of the obligation consists of has been completely
obligee: delivered or rendered, as the case maybe. (CIVIL
CODE, art. 1233)
After payment, 3rd person acquires the
creditor’s rights (subrogation) Exceptions:
(1) Creditor ratifies payment to 3rd 1. When the obligation has been substantially
person performed in good faith CIVIL CODE, art.
(2) By creditor’s conduct, debtor has 1234);
been led to believe that 3rd 2. When the obligee accepts performance
person is authorized to receive despite its incompleteness or irregularity and
payment make the payment without expressing any protest or correction.
(estoppel) (CIVIL CODE, art. (CIVIL CODE, art. 1235);
1241) 3. In cases involving divisible obligations
capable of partial performance. (ERNESTO L.
(b) Payment to the possessor of the credit, PINEDA, OBLIGATIONS AND CONTRACTS 192-
when made in good faith (CIVIL CODE, 193 (2009)).
art. 1242)
Requisites: (GP) Substantial performance
o Payment by debtor must be made in If the obligation has been substantially
Good faith. performed in good faith, the obligor may
o Creditor must be in Possession of the recover as though there had been a strict and
credit and NOT merely the evidence complete fulfillment, less damages suffered by
of indebtedness. the obligee. This is the basis of the rule that if the
breach is only slight, the obligee cannot resolve
or cancel the obligation. Generally, the courts will
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grant the obligor a certain time to make up for the (c) Nature of obligation – susceptible of
slight breach. The “damages suffered by the partial fulfillment (HECTOR S. DE LEON &
obligee” refers to the deficiency which the obligee HECTOR M. DE LEON, JR., COMMENTS AND
is still entitled to collect. (CIVIL CODE, art. 1234; 4 CASES ON OBLIGATIONS AND CONTRACTS
ARTURO M. TOLENTINO, COMMENTARIES AND 250 (2014))
PHILIPPINES 277 (1991)) (c) Indivisibility or Indivisible Obligations
Substantial performance is applied only when the One not capable of partial performance.
obligor admits breaching the contract after (a) To give definite things
honestly and faithfully performing all the material (b) Not susceptible of partial
elements thereof except for some technical performance
aspects or deficiency that cause no serious harm (c) Provided by law
to the obligee. (International Hotel Corporation v. (d) Intention of parties (HECTOR S. DE
Joaquin Jr., G.R. No. 158361, Apr. 10, 2013) LEON & HECTOR M. DE LEON, JR.,
COMMENTS AND CASES ON
Requisites of substantial performance OBLIGATIONS AND CONTRACTS 249,
(GoSTeM): 2014))
1. Attempt in Good faith to perform without Notes:
willful or intentional departure • Divisibility or indivisibility of the obligation
2. Deviation is Slight refers to the performance of the prestation
3. Omission/Defect is Technical or unimportant and not to the thing which is the object
4. Must not be so Material that intention of thereof (HECTOR S. DE LEON & HECTOR M.
parties is not attained. (International Hotel DE LEON, JR., COMMENTS AND CASES ON
Corporation v. Joaquin Jr., G.R. No. 158361, OBLIGATIONS AND CONTRACTS 249, 2014))
Apr. 10, 2013) • Intention of parties should be taken into
account to determine whether obligation is
Acceptance by the obligee as full divisible or not (HECTOR S. DE LEON &
• When the obligee accepts the performance, HECTOR M. DE LEON, JR., COMMENTS AND
knowing its incompleteness or irregularity, CASES ON OBLIGATIONS AND CONTRACTS 244,
and WITHOUT expressing any protest or 2014))
objection, the obligation is deemed fully
complied with. This is because the obligee is 2. Special rules on monetary obligations
deemed to have waived his right to collect the (Loans and Forbearance of Money, Goods
deficiency. (CIVIL CODE, art. 1235) and Credits)
Forbearance of money, goods and is defined as
• Unlike Art. 1234 where the obligee does not “arrangements other than loan agreements
give up his right to collect the balance, in Art. where a person acquiesces to the temporary use
1235, the obligee waives his right to collect of his money, goods or credits pending the
such balance. happening of certain events or fulfillment of
certain conditions.” (Estores v. Supangan, G.R.
Divisible obligations No. 175139, Apr. 18, 2012)
An obligation that is capable of partial
performance. (ERNESTO L. PINEDA, OBLIGATIONS (a) Payment must be in legal tender (CIVIL
AND CONTRACTS 192-193 (2009)) CODE, art. 1249)
(a) Execution of certain number of days’
work Personal checks, Cashier’s or Managers checks
(b) Expressed by metrical units are NOT legal tender, so creditor cannot be
compelled to accept them (unless such is
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stipulated as the mode of payment). Creditor,

however, has the option to accept payment in In cases of extraordinary inflation or deflation, the
checks of any kind. If the creditor accepts the value of the currency at the time the obligation
check or no prompt objection to the form of was incurred should be the basis of payment,
payment is made, there is valid tender of payment unless there is stipulation to the contrary. (CIVIL
and creditor can no longer claim later that CODE, art. 1250)
payment is not in legal tender. (Pabugais v.
Sahijwani, G.R. No. 156846, Feb. 23, 2004) Inflation (or deflation) rates are determined by
economic managers (BSP specifically), but
When payment in check is accepted, it whether extraordinary, this will require
produces the effect of payment only when the judicial determination. The Court has ruled that
check is cleared (retroacts to the date the check whoever alleges extraordinary inflation must
was deposited) and the funds are transferred to prove it – indicating that the courts will determine
the account of the creditor. Stale checks (those based on evidence presented. (Citibank v.
not presented for payment within 6 months from Sabeniano, G.R. No. 156132, Feb. 6, 2007)
date of check) do not produce the effect of
payment and debtor can be required to issue a Requisites for the application of Art. 1250 on
new check or pay in cash since the obligation is extraordinary inflation/deflation:
not yet deemed paid. Debtor cannot however be 1. There is an official declaration of
liable for interest or penalty and cannot be extraordinary inflation or deflation from the
declared in default since creditor could have BSP
immediately presented it for payment. It is only in 2. The obligation is contractual in nature
cases where the value is impaired through 3. The parties expressly agreed to consider the
creditor’s fault (i.e., creditor misplaced the effects of the extraordinary inflation or
check and someone else encashed it), that the deflation. (HECTOR S. DE LEON & HECTOR M.
debtor is deemed to have paid his obligation DE LEON, JR., COMMENTS AND CASES ON
without having to issue a new check or paying in OBLIGATIONS AND CONTRACTS 311 (2014));
cash. (Evangelista v. Screenex, Inc., G.R. No. see Equitable PCI Bank v. Sheung Ngor,
211564, Nov. 20, 2017) G.R. No. 171545, Dec. 19, 2007)
Payment in coins is legal tender only up to a Note: Inflation or deflation is based on increase
certain amount: or decrease of purchasing power and not based
for P1, 5 and 10 coins, only up to P1,000; on Peso-US Dollar exchange rate. (Singson v.
for P.01, .05, .10, and .25 coins, only up to P 100. Caltex, G.R. No. 137798, Oct. 4, 2000). The rate
(BSP Circular No. 537, Series of 2006, July 18, of inflation/deflation is measured by determining
2006)) rate of increase or decrease of purchasing power
from a prior period. It is determined by the amount
Payment in foreign currency is allowed, if of basic goods (within a basket) that money can
stipulated. The Uniform Currency Act (1950) buy, as compared to a prior period. If money can
was expressly repealed by R.A. No. 8183 buy P100 of basic goods at a certain prior period,
(effective July 5, 1996). Art. 1249 allowing determine how much of the same goods can be
stipulation of payment in foreign currency has purchased at a later period – this represents the
been restored. Agreements with stipulation to pay rate of inflation or deflation. (Citibank v.
foreign currency may be discharged in Philippine Sabeniano, G.R. No. 156132, Feb. 6, 2006)
Pesos at rate of exchange at the time of payment.
(Union Bank v. Tui, G.R. No. 173090, Sept. 7, Example:
2011) A loan of P100 was obtained in 2013, and
payable after one year. At the time the
(b) Extraordinary Inflation or Deflation
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obligation was incurred, the P100 annum but will now be six percent (6%) per
proceeds of the loan could purchase annum effective July 1, 2013. It should be
P100 worth of goods. In 2014 when the noted, nonetheless, that the new rate could
loan is due, P100 can purchase only ½ of only be applied prospectively and not
the goods it could purchase in 2013. retroactively. Consequently, the twelve
Inflation rate is therefore 100%. percent (12%) per annum legal interest shall
apply only until June 30, 2013. Come July 1,
If there is no declaration of extraordinary 2013 the new rate of six percent (6%) per
inflation – Debtor must pay P100 in 2014. annum shall be the prevailing rate of interest
when applicable. (Nacar v. Gallery Frames,
If courts declare extraordinary inflation – G.R. No. 189871, Aug. 13, 2013; See also
Debtor must pay P200 in 2014 so that Lim v. HMRPI, G.R. No. 201483, Aug. 4,
creditor will get the same value of his 2014)
money in 2013 when he lent the money.
iii. With stipulation in writing, and the rate
has been stipulated – collect the
(c) Payment of Interest stipulated rate of interest, subject to the
right of the courts to reduce the rate if
Note: In loan, ownership is transferred to the unconscionable or iniquitous. (State
borrower. Creditor merely has the right to an Investment House, Inc. v. Court of
equal amount of the same kind and quality. (CIVIL Appeals, G.R. No. 112590, Jul. 12, 2001)
CODE, art. 1953)
• By way of penalty (debtor in default)
Rules on payment of interest i. With penalty clause – substitutes
• For use of money, no default payment of interest, except if it is clearly
i. Stipulation in writing is required – if stipulated that penalty is in addition to
none, no interest is collectible (CIVIL interest. (CIVIL CODE, art. 1226)
CODE, art. 1956)
ii. Without penalty clause (even if no
ii. With stipulation in writing, but the interest is stipulated) – collect legal rate
interest rate is not stipulated – interest of interest by way of penalty for default
is legal rate of 6% for loans and (no more distinction, see above). Liability
forbearance of money (decrease from arises only from default (unless demand
12% to 6% based on BSP Circular 799, not necessary, from extrajudicial or
effective July 1, 2013). The legal rate of judicial demand). (Eastern Shipping
interest now is the same for all Lines, Inc. v. Court of Appeals, G.R. No.
obligations, including judgment 97412, Jul. 12, 1994)
obligations not arising from loans,
forbearance of money, goods or credits, Note: No penalty is collectible during grace
including those based on torts. (BSP period because debtor is not in default if he is
Circular No. 799, Series of 2013, June given time to pay.
21, 2013)
iii. Compounded interest (interest over
Note: In the absence of an express interest) – applies only if stipulated, or in
stipulation as to the rate of interest that would case of judicial demand. (CIVIL CODE, art.
govern the parties, the rate of legal interest 1959 & 2212)
for loans or forbearance of any money, goods
or credits and the rate allowed in judgments • Judgment Debt (Not arising from loans or
shall no longer be twelve percent (12%) per forbearance of money, such as torts)
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Except in cases where the amount can be How application is made:

determined with reasonable certainty, the (a) Debtor makes the designation
amount of obligation may still be unliquidated (b) If not, creditor proposes to make the
and not yet determined upon filing of the application by advising the debtor or through
case. The liquidation or the determination of certain acts such as issuing a receipt with an
the amount of the obligation takes place only application of payment. Since this is a mere
from the time judgment is rendered in the first proposal (since only a debtor can make an
instance. Thus: application of payments), the debtor must
i. If the amount of the obligation can be accept it either expressly or impliedly by not
established with reasonable certainty, objecting to the creditor’s proposal, as when
the interest runs from extrajudicial or the debtor accepts without objection the
judicial demand (default) – [at the receipt issued by the creditor with an
discretion of the court] at the rate of 6% application of payment.
p/a, up to time decision becomes final (c) If the debtor makes no application and the
and until fully paid. (Republic v. de creditor has not made a proposal, or if the
Guzman, G.R. No. 175021, June 15, application is not valid, then application is
2011) made by operation of law:
i. It is to be applied to the most onerous
ii. If the amount of the obligation cannot be debt (e.g., to an interest bearing debt
established with reasonable certainty, over debts without interest; or
interest will run only from the time ii. If all debts are equally onerous or of the
judgment is rendered in the first instance same burden, or it cannot be determined
at the rate 6% up to time of payment. which debt is the most onerous, then the
(Eastern Shipping Lines, Inc. v. Court of payment should be applied pro rata to all
Appeals, G.R. No. 97412, Jul. 12, 1994) the obligations due. (CIVIL CODE, art.
1252-1254)
3. Special rules/forms of payment
Q: Article 1176 provides that: “The receipt of the
(a) Application of payments principal by the creditor, without reservation with
The designation of the debt which payment shall respect to the interest, shall give rise to the
be made, out of 2 or more debts owing the same presumption that said interest has been paid.”
creditor. (CIVIL CODE, art. 1252) Article 1253 states that: “If the debt produces
interest, payment of the principal shall not be
Requisites (OTD) deemed to have been made until the interests
1. There must be only One debtor and only one have been covered.” How are these two
creditor; rebuttable presumptions reconciled?
2. Two or more debts of the same kind; and
3. All debts must be Due. (CIVIL CODE, art. 1252) A: Article 1176 should be treated as a general
presumption subject to the more specific
Exception on 3rd requisite: There may be presumption under Article 1253. Article 1176
application of payment even if all debts are applies when there is doubt as to whether interest
not yet due if: is waived because the creditor accepts the
i. Parties so stipulate payment for the principal without reservation with
ii. When application of payment is made by respect to the interest. Here, the creditor is
the party for whose benefit the term has presumed to have waived the right to collect
been constituted (CIVIL CODE, art. 1252) interest. Article 1254 has no issue on waiver of
interest because it is a given under this Article
that the debt produces interest. The doubt is on
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whether the amount received by the creditor is As in a contract of sale, valuation should be
payment for the principal or the interest. Article agreed upon by the creditor as buyer, and the
1253 resolves this doubt by providing a hierarchy: debtor as seller. It is also subject to the usual
payments shall first be applied to the interest; warranties of sale. (4 ARTURO M. TOLENTINO,
payment shall then be applied to the principal only COMMENTARIES AND JURISPRUDENCE ON THE CIVIL
after the interest has been fully paid. (Marquez v. CODE OF THE PHILIPPINES 294 (1991))
Elisan Credit Corporation, G.R. No. 194642, Apr.
6, 2015) Requisites: (PAD)
1. There must be the Performance of the
(b) Dation in payment (Dacion en pago) (CIVIL prestation in lieu of payment (animo solvendi)
CODE, art. 1245) which may consist in the delivery of a
corporeal thing or a real right or a credit
Definition against the third person
A mode of extinguishing an obligation whereby 2. There must be some Difference between the
the debtor pays a monetary obligation with prestation due and that which is given in
property. It is a special form of payment because substitution (aliud pro alio)
one element of payment is missing: Identity. 3. There must be an Agreement between the
(EDGARDO L. PARAS, CIVIL CODE OF THE creditor and debtor that the obligation is
PHILIPPINES ANNOTATED: PRESCRIPTION; immediately extinguished (to the extent of
OBLIGATIONS AND CONTRACTS 380 (2016)) agreed valuation) by reason of the
performance of a prestation different from
Dation in payment extinguishes the obligation that due. (HECTOR S. DE LEON & HECTOR M.
to the extent of the value of the thing delivered, DE LEON, JR., COMMENTS AND CASES ON
either as agreed upon by the parties or as may be OBLIGATIONS AND CONTRACTS 321 (2014))
proved, unless the parties by agreement –
express or implied, or by their silence – consider Intent is Controlling
the thing as equivalent to the obligation, in which Like in all contracts, the intention of the parties to
case the obligation is totally extinguished. (Tan the dation in payment is paramount and
Shuy v. Maulawin, , G.R. No. 190375, Feb. 8, controlling. The contractual intention determines
2012) whether the property subject of the dation will be
considered as the full equivalent of the debt and
The contractual intention determines whether the will therefore serve as full satisfaction for the debt.
property subject of the dation will be considered “The dation in payment extinguishes the
as the full equivalent of the debt and will therefore obligation to the extent of the value of the thing
serve as full satisfaction for the debt. (Luzon Dev delivered, either as agreed upon by the parties or
Bank v. Enriquez, G.R. No. 168646, Jan. 12, as may be proved, unless the parties by
2011) agreement, express or implied, or by their
silence, consider the thing as equivalent to the
Law on Sales Apply obligation, in which case the obligation is totally
The law on sales will apply in case of dacion en extinguished.” (Luzon Development Bank v.
pago since it partakes of the nature of sale – with Enriquez, G.R. No. 168646, Jan. 12, 2011)
the creditor purchasing the thing or property of the
debtor, the payment of which is charged to the (c) Cession or Assignment (in favor of
debtor’s obligation. It extinguishes the obligation creditors) (CIVIL CODE, art. 1255)
to the extent of the value of the thing delivered.
(Tan Shuy v. Maulawin, , G.R. No. 190375, Feb. The process by which a debtor transfers ALL his
8, 2012) assets which are not subject to execution in favor
of creditors, so that the latter may sell them and
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apply the proceeds to his outstanding obligations. Dation in Payment v. Cession in Payment
Except if there is contrary agreement, or as may DATION IN CESSION IN
be provided by law, the obligations are PAYMENT PAYMENT
extinguished only up to the net amount of the (Art. 1245) (Art. 1255)
proceeds of the sale. (EDGARDO L. PARAS, CIVIL One creditor Plurality of creditors
CODE OF THE PHILIPPINES ANNOTATED: NOT necessarily in Debtor must be
PRESCRIPTION; OBLIGATIONS AND CONTRACTS 417 state of financial partially or relatively
(2016)) difficulty insolvent
Thing delivered is Universality of
Kinds of Assignment considered as property of debtor is
1. Legal – governed by the insolvency law equivalent of what is ceded
2. Voluntary – agreement of creditors performance
(EDGARDO L. PARAS, CIVIL CODE OF THE Payment Merely releases
PHILIPPINES ANNOTATED: PRESCRIPTION; extinguishes debtor up to the net
OBLIGATIONS AND CONTRACTS 417 (2016)) obligation to the proceeds of things
extent of the value of ceded or assigned,
Requisites of Voluntary Assignment: (DACCI) the thing delivered as unless there is a
1. More than one Debt agreed upon contrary intention
2. More than one Creditor (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
3. Complete or partial Insolvency of debtor COMMENTS AND CASES ON OBLIGATIONS AND
4. Abandonment of all debtor’s property not CONTRACTS 356-357 (2014))
exempt from execution
5. Acceptance or Consent on the part of the (d) Tender of payment and Consignation (CIVIL
creditors (EDGARDO L. PARAS, CIVIL CODE OF CODE, art. 1256)
THE PHILIPPINES ANNOTATED: PRESCRIPTION;
OBLIGATIONS AND CONTRACTS 417 (2016)) Tender – the act of offering to the creditor what is
due him together with a demand that the creditor
Effects of Assignment accepts the same. (EDGARDO L. PARAS, CIVIL
(a) Creditors do not become the owner; they are CODE OF THE PHILIPPINES ANNOTATED:
merely assignees with authority to sell PRESCRIPTION; OBLIGATIONS AND CONTRACTS 419
(hence, the legal contract involved is one of (2016))
Agency and not Sale);
(b) Debtor is released up to the amount of the net If the creditor refuses w/o just cause to accept
proceeds of the sale, UNLESS there is a payment, he becomes in mora accipiendi and
stipulation to the contrary tender alone will not extinguish the obligation;
(c) Creditors will collect credits in the order of consignation is needed. (Co v. PNB, G.R. No. L-
preference agreed upon, or in default of 51767, June 29, 1982)
agreement, in the order ordinarily established Consignation – the act of depositing the thing
by law (EDGARDO L. PARAS, CIVIL CODE OF due with the court or judicial authorities whenever
THE PHILIPPINES ANNOTATED: PRESCRIPTION; the creditor refuses to accept payment, and
OBLIGATIONS AND CONTRACTS 417-418 generally requires prior tender of payment.
(2016)) (RUBEN E. AGPALO, OBLIGATIONS AND CONTRACTS
185 (2008))
Requisites of Valid Consignation (VUPAS)

1. Existence of Valid debt;
2. Creditor has Unjustifiably refused to accept
payment, i.e., previous valid tender;
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3. Prior notice of Consignation had been given (Dalton v. FGR Realty and Development
to the person interested in performance of Corporation, G.R. No. 172577, Jan. 19, 2011)
obligation (1st notice) (CIVIL CODE, art. 1257)
4. Actual deposit/consignation with proper Tender of payment vs. Consignation
judicial authorities TENDER OF CONSIGNATION
5. Subsequent notice of Consignation (2nd PAYMENT
notice) (HECTOR S. DE LEON & HECTOR M. DE Antecedent act; Principal act;
LEON, JR., COMMENTS AND CASES ON preparatory produces the effects
OBLIGATIONS AND CONTRACTS 359-360 of payment
(2014)) Extrajudicial Judicial
(EDGARDO L. PARAS, CIVIL CODE OF THE
Exception on 2nd requirement, i.e., where PHILIPPINES ANNOTATED: PRESCRIPTION;
consignation w/o prior tender allowed (CIVIL OBLIGATIONS AND CONTRACTS 419-420 (2016))
CODE, art. 1256):
i. Creditor absent or unknown/ does not appear II. LOSS OF DETERMINATE THING OR
at the place of payment IMPOSSIBILITY OR DIFFICULTY OF
ii. Incapacitated to receive payment at the time PERFORMANCE
it is due
iii. Refuses to issue receipt w/o just cause Includes partial or total loss of thing (CIVIL CODE,
iv. 2 or more creditors claiming the same right to arts. 1262 & 1264)
collect
v. Title of obligation has been lost 1. Loss of the thing due
vi. Debtor had previously been notified by the (a) When the object perishes (physically)
creditor that the latter would not accept any (b) When it goes out of commerce
payment (Kapisanan Banahaw, Inc. v. (c) When it disappears in such a way that: its
Dejarme, G.R. No. L-32908, Nov. 28, 1930) existence is unknown or it cannot be
recovered (CIVIL CODE, art. 1189)
Effects of Consignation
(a) Debtor may ask judge to order cancellation of Effect of Loss in Obligation to Deliver a
obligation Specific Thing
(b) Running of interest is suspended If loss was due to fortuitous events, obligation is
(c) Before creditor accepts or before judge extinguished; no damages.
declares consignation has been properly
made, obligation remains (debtor bears risk If the loss is due to the fault of the debtor or any
of loss at the meantime, and after acceptance person, that person should be held liable for
by creditor or after judge declares that damages. (EDGARDO L. PARAS, CIVIL CODE OF THE
consignation has been properly made – risk PHILIPPINES ANNOTATED: PRESCRIPTION;
of loss is shifted to creditor) (EDGARDO L. OBLIGATIONS AND CONTRACTS 438 (2016))
PARAS, CIVIL CODE OF THE PHILIPPINES
ANNOTATED: PRESCRIPTION; OBLIGATIONS AND Effect of Loss in Obligation to Deliver a
CONTRACTS 433 (2016)) Generic Thing
General rule: Loss does NOT extinguish
When Consignation Extinguishes Obligation obligation. Genus numguam perit: “Genus never
Consignation is completed at the time the creditor perishes.”
accepts the same without objections, OR, if he
objects, at the time the court declares that it has Exceptions:
been validly made in accordance with law. i. Loss of entire genus (e.g., when sale of
a certain class of things become illegal)
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ii. Loss of entire group of limited generic

obligation (e.g., I will deliver “one of my • Doctrine of Subjective Impossibility: The
cars” and all cars are no lost through obligation undoubtedly becomes impossible
force majeure. (See RUBEN F. BALANE, if there is no physical or legal loss but the
JOTTINGS AND JURISPRUDENCE IN CIVIL object obligation belongs to another person;
LAW (OBLIGATIONS AND CONTRACTS) 400 the obligor must indemnify the obligee for the
(2020) damages suffered by the latter. (4 ARTURO M.
Effect of Partial Loss JURISPRUDENCE ON THE CIVIL CODE OF THE
1. When loss is significant – may be enough to PHILIPPINES 336 (1991))
extinguish obligation
2. When loss insignificant – NOT enough to • Rebus Sic Stantibus: The agreement is
extinguish obligation (HECTOR S. DE LEON & valid only if the same conditions prevailing at
HECTOR M. DE LEON, JR., COMMENTS AND time of contracting continue to exist at the
CASES ON OBLIGATIONS AND CONTRACTS 377 time of performance. Obligor may be
(2014)) released in whole or in part if the conditions
have changed so that it becomes manifestly
NOTE: When thing is lost in the possession of the beyond the intention of the parties. (4 ARTURO
debtor, it is presumed to be due to debtor’s fault; M. TOLENTINO, COMMENTARIES AND
Exceptions: natural calamity, earthquake, flood, JURISPRUDENCE ON THE CIVIL CODE OF THE
storm. (CIVIL CODE, art. 1265) PHILIPPINES 336 (1991))
2. Impossibility of performance Requisites of Rebus Sic Stantibus: (FoDAF)

(a) Physical impossibility – it is not within 1. The event or change could not have been
man’s capability Foreseen at the time of the execution of the
(b) Legal impossibility – when the prestation is contract
prohibited by law 2. The performance is extremely Difficult, but
(c) Moral impossibility – when the service has NOT impossible (because if it is impossible,
become so burdensome that it could not have it is extinguished by impossibility)
been the intention of the parties (CIVIL CODE, 3. The event was not due to the Act of any of
art. 1267) the parties
4. The contract is for a Future prestation (4
Effect of Impossibility of Performance in ARTURO M. TOLENTINO, COMMENTARIES AND
Obligation to Do JURISPRUDENCE ON THE CIVIL CODE OF THE
Debtor is released when the prestation becomes PHILIPPINES 347 (1991))
legally or physically impossible without fault on
the part of the debtor. (CIVIL CODE, art. 1266) The difficulty of performance contemplated
should be such that one party would be placed
NOTE: at a disadvantage by the unforeseen event.
• Judicial determination of extent is necessary Mere inconvenience, or unexpected
impediments, or increased expenses did not
• Doctrine of Unforeseen Events: The court suffice to relieve the debtor from a bad bargain.
is authorized to release the obligor, in whole (Tagaytay Realty v. Gacutan G.R. No. 160033,
or in part, when the service has become so Jul. 1, 2015)
difficult as to be manifestly beyond the
contemplation of the parties. (CIVIL CODE, art.
III. CONDONATION OR REMISSION OF DEBT
1267; HECTOR S. DE LEON & HECTOR M. DE
LEON, JR., COMMENTS AND CASES ON
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Condonation – An act of liberality by which the EXCEPTION: when the waiver is inofficious.
creditor renounces the enforcement of the (CIVIL CODE, art. 1271 (2))
obligation contracted in his favor. To condone is
to forgive or to remit a debt. (Bañez v. Young, L- Defense to the claim of inofficiousness:
4635, Oct. 27, 1952) the delivery of the document was made in
Remission – An act of liberality by virtue of which virtue of payment of the debt. (CIVIL CODE,
the obligee, without receiving any price or art. 1271 (2))
equivalent, renounces the enforcement of the
obligation, as a result of which it is extinguished ii. If there if actual proof, or the presumption
in its entirety or in that part or aspect of the same above is not rebutted, that the evidence of
to which the remission refers (Manresa). In brief, indebtedness was returned by the creditor to
“it is the gratuitous abandonment by the creditor the debtor, there is a presumption of waiver
of his right” (4 ARTURO M. TOLENTINO, (a) If in hands of joint debtor – only his share
COMMENTARIES AND JURISPRUDENCE ON THE CIVIL is condoned.
CODE OF THE PHILIPPINES 353 (1991)) (b) If in hands of solidary debtor – whole debt
is condoned.
Requisites (CapRe-FLAgS) (c) Tacit – voluntary destruction of
1. There must be an Agreement instrument by creditor; made to prescribe
2. There must be a Subject matter (object of the w/o demanding. (CIVIL CODE, art. 1271)
remission, otherwise there would be nothing
to condone) Note: In a pledge, when after the constitution of
3. Cause of consideration must be Liberality the debt, the pledged property is found in the
(Essentially gratuitous, an act of liberality) possession of the pledgor or a third person who
4. Parties must be Capacitated and must owns it, only the accessory obligation under the
consent; requires acceptance by obligor; pledge is deemed remitted, but the principal
implied in mortis causa and express in inter obligation remains as an unsecured obligation.
vivos condonations. (CIVIL CODE, art. 1274)
5. Formalities of a donation are required in the
case of an express remission or condonation IV. CONFUSION
6. Revocable – subject to rule on inofficious
donations. (EDGARDO L. PARAS, CIVIL CODE The character of debtor and creditor is merged in
OF THE PHILIPPINES ANNOTATED: same person with respect to same obligation.
PRESCRIPTION; OBLIGATIONS AND CONTRACTS (DESIDERIO P. JURADO, COMMENTS AND
448 (2016)) JURISPRUDENCE ON OBLIGATIONS AND CONTRACTS
306 (2010))
Examples of Implied Condonation, Waiver of
Right to Collect Requisites of Merger of Rights: (COP)
i. Voluntary delivery of evidence of 1. It must take place between Principal debtor
indebtedness – when evidence of and principal creditor only.
indebtedness is found in the possession of 2. Merger must be Clear and definite.
the debtor – there is a rebuttable presumption 3. Only One obligation is involved. (EDGARDO L.
of voluntary delivery (CIVIL CODE, art. 1272), PARAS, CIVIL CODE OF THE PHILIPPINES
which if not rebutted, will create the ANNOTATED: PRESCRIPTION; OBLIGATIONS AND
presumption of waiver condonation CONTRACTS 456 (2016))
(remission) which in effect extinguishes the
debt. (CIVIL CODE, art. 1271 (1)) Confusion does not extinguish a joint obligation,
except as regards the share corresponding to the
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creditor or debtor in whom the 2 characters obligations even in the absence of some
concur. (CIVIL CODE, art. 1277) of the requirements.
V. COMPENSATION (b) Conventional – based on agreement of

A mode of extinguishment up to the concurrent parties, even if the other requirements are not
amount of the obligation of persons who, in their complied with.
own right, have become mutual debtors or • Conventional compensation takes place
creditors of one another. (DESIDERIO P. JURADO, when the parties agree to compensate
COMMENTS AND JURISPRUDENCE ON OBLIGATIONS their mutual obligations even in the
AND CONTRACTS 309 (2010)) absence of some requisites. (Mondragon
Personal Sales Inc. v. Sola Jr., G.R. No.
Requisites (LM-STD): 174882, Jan. 21, 2013)
1. Both parties must be Mutual creditors and
debtors - in their own right and as principals. (c) Facultative – only one party may invoke the
2. Both debts must consist in Sum of money or compensation, such as the person who has
if consumable, of the same kind or quality. the benefit of the period who can invoke it
3. Both debts are Due. even before the period has arrived.
4. Both debts are Liquidated and demandable
(determined). (d) Judicial – set off takes place upon order of
5. Neither debt must be retained in a the court; needs pleading and proof; all
controversy commenced by Third person requirements must concur, EXCEPT
and communicated w/ debtor (neither debt is liquidation.
garnished). (CIVIL CODE, art. 1279)
(e) Total – when 2 debts are of the same
A claim is liquidated when the amount and time of amount.
payment is fixed. If acknowledged by the debtor,
although not in writing, the claim must be treated (f) Partial –when 2 debts are not of the same
as liquidated. When the defendant, who has an amount. (EDGARDO L. PARAS, CIVIL CODE OF
THE PHILIPPINES ANNOTATED: PRESCRIPTION;
unliquidated claim, sets it up by way of
counterclaim, and a judgment is rendered OBLIGATIONS AND CONTRACTS 461 (2016))
liquidating such claim, it can be compensated
against the plaintiff’s claim from the moment it is Effect of Assignment of Credit to Third
liquidated by judgment. Compensation takes Person: Can There Still be Compensation?
place only if both obligations are liquidated. (Lao 1. If made after legal compensation has set
v. Special Plans, Inc., G.R. No. 164791, June 29, in – no effect; compensation has already
2010) extinguished the obligation, so there is
nothing to assign.
Kinds of Compensation 2. If made before legal compensation has set
(a) Legal – by operation of law; as long as 5 in:
requisites concur – even if unknown to (a) With consent of debtor – debtor is
parties; if not equal debts, only up to estopped UNLESS he reserves his right
concurring amount. to compensate and gave notice to
assignee
• Legal compensation takes place by
(b) With knowledge but w/o consent of
operation of law when all the requisites
debtor – compensation may be set up as
are present, as opposed to conventional
subrogation which takes place when the to debts maturing prior to assignment
parties agree to compensate their mutual (c) W/o knowledge – compensation may be
set-up on all debts prior to his knowledge
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(c) Subrogating 3rd person to the rights of the

Compensation vs. Confusion creditor (CIVIL CODE, art. 1291)
COMPENSATION CONFUSION
Different persons are Only 1 person who is
involved; each is a creditor and debtor of Requisites of novation: (VICN)
debtor and creditor of himself
1. There must be a previous Valid obligation;
each other 2. Intent to extinguish the old and substitute it
Two obligations One obligation with the new obligation, whether expressed,
Indirect payment No need to pay or implied as when the two obligations are
oneself inconsistent and cannot stand together.
(HECTOR S. DE LEON & HECTOR M. DE LEON, JR., 3. Capacity and consent of the parties to the
COMMENTS AND CASES ON OBLIGATIONS AND new obligation; and
CONTRACTS 416-417 (2014)) 4. Valid New obligation. (Garcia, Jr. v. CA, G.R.
No. 80201, Nov. 20, 1990)
Obligations not allowed to be Compensated
(Co-PGT) Novation is never presumed, there must be an
(a) When one of the debts arises from a express intention to novate. The creditor’s
depositum or from the obligations of a acceptance of another check, which replaced an
depositary or of a bailee in Commodatum. earlier dishonored check, does not result in
(CIVIL CODE, art. 1287) novation where there was no express agreement
(b) Against a creditor who has a claim for support to establish that the debtor was already
due by Gratuitous title, without prejudice to discharged from his liability. (Salazar v. J.Y.
Article 301 par. 2 (CIVIL CODE, art. 1287) Brothers Marketing Corporation, G.R. No.
(c) If one of the debts consists in civil liability 171998, Oct. 20, 2010)
arising from a Penal offense. (CIVIL CODE, art.
1288) Novation can be done without the knowledge or
(d) Obligation to pay Taxes is not compensable even against the will of the original debtor, but not
with the government’s obligations to the without the consent of the creditor (Interport
taxpayer. (Francia v. IAC, G.R. No. L-67649, Resources Corporation v. Securities Specialist,
June 28, 1988). In. G.R. No. 154069, June 6, 2016)
Taxes cannot be subject to compensation for the Effects of Novation

simple reason that the government and the GR: It extinguishes the old obligation and a
taxpayer are not creditors and debtors of each new one is created in its place.
other. There is a material distinction between a
tax and debt. Debts are due to the Government in Exception:
its corporate capacity, while taxes are due to the (a) Modificatory novation only, in which
Government in its sovereign capacity. (United case the old obligation remains, as
Airlines, Inc. v. Commissioner of Internal amended by the new (Swagman Hotels
Revenue, G.R. No. 178788, Sept. 29, 2010) and Travels, Inc. v. CA, G.R. No. 161135,
Apr. 8, 2005)
VI. NOVATION (b) Old obligation is void
Conversely, the old obligation subsists if
Novation - Extinguishment of obligation by the new obligation is void or is voidable
creating/ substituting a new one in its place and later annulled. (4 ARTURO M.
(a) Changing object or principal conditions TOLENTINO, COMMENTARIES AND
(b) Substituting person of debtor JURISPRUDENCE ON THE CIVIL CODE OF THE
PHILIPPINES 397 (1991))
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old obligation remains subsisting. (4

Novation, in its broad concept, may either be ARTURO M. TOLENTINO, COMMENTARIES
extinctive or modificatory. AND JURISPRUDENCE ON THE CIVIL CODE
• It is extinctive when an old obligation is OF THE PHILIPPINES 397 (1991))
terminated by the creation of a new obligation
that takes the place of the former; it is merely Kinds of Novation:
modificatory when the old obligation subsists (a) Real / objective – When there is a change in
to the extent that it remains compatible with the object, cause/consideration or principal
the amendatory agreement. condition. (ERNESTO L. PINEDA, OBLIGATIONS
• An extinctive novation results either by AND CONTRACTS 332 (2009))
changing the object or principal conditions (b) Personal / subjective
(objective or real), or by substituting the Substituting person of debtor (passive).
person of the debtor or subrogating a third (ERNESTO L. PINEDA, OBLIGATIONS AND
person in the rights of the creditor (subjective CONTRACTS 332 (2009))
or personal). (Banate v. Philippine
Countryside Rural Bank (Liloan, Cebu), Inc., i. Expromision: initiative is from a 3rd
G.R. No. 163825, Jul 13, 2010) person or new debtor who agrees to
assume the obligation of the old debtor,
There is novation when there is an irreconcilable with the consent of the creditor. The old
incompatibility between the old and new debtor’s consent is not required and upon
obligations. There is no novation in case of only assumption by the new debtor of the
slight modifications, in which case, the old debt, the old debtor is released from
obligation still subsists. (Heirs of Franco v. liability. Since the old debtor does not
Spouses Gonzales, G.R. No. 159709, June 27, consent, his liability cannot be revived
2012) even if the new debtor becomes insolvent
or cannot pay the obligation. It is however
Novation does not extinguish criminal liability important that the creditor and the new
(Philippine National Bank v. Soriano, G.R. debtor agree to release the old debtor,
164051, Oct. 3, 2012) otherwise the “new” debtor only becomes
a co-debtor and no novation takes place.
Effect of Conditions in Either Old or New
Obligation: ii. Delegacion: initiative of old debtor
(a) If old obligation is conditional who “delegates” his obligation to a
i. If resolutory and it occurred – old new debtor; In this case all the parties
obligation already extinguished; no new must consent. The old debtor’s liability is
obligation is created since there is generally not revived in case of the
nothing to novate insolvency of the old debtor UNLESS:
ii. If suspensive – the condition must the new debtor’s insolvency already
happen, otherwise there is no old existed at the time of the delegacion AND
obligation to novate. (4 ARTURO M. (1) it was of public knowledge, or (2) the
TOLENTINO, COMMENTARIES AND old debtor knew of the insolvency of the
JURISPRUDENCE ON THE CIVIL CODE OF THE new debtor at the time of delegacion.
PHILIPPINES 399 (1991)) (ERNESTO L. PINEDA, OBLIGATIONS AND
(b) If the new obligation is conditional:
i. If resolutory – valid Parties:
ii. If suspensive – the condition must (a) Delegante – old debtor
happen, otherwise there is no new (b) Delegatario – creditor
obligation to replace the old, so that the
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(c) Delegado – new debtor. (EDGARDO L. When Subrogation is Presumed

PARAS, CIVIL CODE OF THE 1. Creditor pays another preferred creditor even
PHILIPPINES ANNOTATED: w/o debtor’s knowledge
PRESCRIPTION; OBLIGATIONS AND 2. 3rd person not interested in obligation pays
CONTRACTS 508 (2016)) w/ approval of debtor
3. Person interested in fulfillment of obligation
Expromision vs. Delegacion pays debt even w/o knowledge of debtor
EXPROMISION DELEGACION (CIVIL CODE, art. 1302)
Intention: old debtor be released from the
obligation Payment by 3rd Person v. Change of Debtor
Consent of creditor required on both DIFFERENCE CHANGE OF DEBTOR
Consent of creditor and Consent of debtor FROM PAYMENT
third person (initiates), creditor BY 3RD PERSON
and third person; Debtor is NOT Old debtor is released
need NOT be given necessarily
simultaneously released from debt
Governed by the rules Same applies in the Creditor is not Needs consent of
of payment by third absence of an bound to accept creditor: express or
persons agreement payment, unless implied
If w/o knowledge of Subrogation there is stipulation
debtor, beneficial to the contrary
reimbursement, no (CIVIL CODE, art.
subrogation 1236)
New debtor's Same UNLESS the 3rd person can New debtor is obliged to
insolvency does NOT new debtor’s make payments pay the full remaining
make old debtor liable insolvency already less than the amount of the obligation
existed at the time amount of the
of the delegacion obligation and
AND (i) it was of cannot be held
public knowledge, liable for the
or (ii) the old debtor deficiency
knew of the
insolvency of the Conventional Subrogation Vs. Assignment
new debtor at the CONVENTIONAL ASSIGNMENT OF
time of delegacion. SUBROGATION RIGHTS
(ERNESTO L. PINEDA, OBLIGATIONS AND Governed by Arts. Governed by Arts.
CONTRACTS 341-343 (2009)) 1300-1304 1624 to 1627
Debtor’s consent is Debtor’s consent is
(c) Subrogating 3rd person to rights of required NOT required, but
creditor (active) must be notified in
i. Conventional – agreement and consent order to be bound
of all parties; clearly established (CIVIL Extinguishes the Transmission of right
CODE, arts. 1300-1301) obligation and gives of the creditor to third
ii. Legal – takes place by operation of law; rise to a new one person without
no need for consent; NOT presumed modifying or
except as provided for in law: (CIVIL extinguishing the
CODE, arts. 1300 & 1302) obligation
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Defects and vices in Defects and vices in A. GENERAL PROVISIONS

the old obligation the old obligation are
are cured NOT cured I. STAGES OF CONTRACTS
CONTRACTS 354-355 (2009)) 1. Preparation/Negotiation - period from the
time the prospective contracting parties
indicate their interest in the contract to the
————- end of topic ————- time the contract is perfected
CONTRACTS 2. Perfection/Birth
(a) Consensual contracts
TOPIC OUTLINE UNDER THE SYLLABUS: As a general rule, contracts are perfected
by mere consent of the parties regarding
VI. CONTRACTS the subject matter and the cause of the
A. GENERAL PROVISIONS contract. (CIVIL CODE, arts. 1315, 1319)
I. Stages of Contracts They are obligatory in whatever form they
II. Classifications may have been entered into, provided all
III. Essential Requisites the essential requisites for their validity
are present. (CIVIL CODE, art. 1356)
B. FORMALITY
(b) Real contracts
C. REFORMATION OF INSTRUMENTS The exceptions are real contracts, which
are perfected not merely by consent but
D. INTERPRETATION OF CONTRACTS by the actual or constructive delivery of
the object of the obligation. (CIVIL CODE,
E. DEFECTIVE CONTRACTS art. 1316)
I. Rescissible Contracts
II. Voidable Contracts (c) Formal/Solemn contracts
III. Unenforceable Contracts When the law requires that a contract be
IV. Void or Inexistent Contracts in some form to be valid (CIVIL CODE, art.
V. Distinguish: resolution and 1356), this special form is necessary for
rescission of contracts its perfection
3. Consummation - period when the parties

perform their respective undertaking under
the contract, culminating in the
extinguishment thereof (HECTOR S. DE LEON
& HECTOR M. DE LEON, JR., COMMENTS AND
CASES ON OBLIGATIONS AND CONTRACTS 542
(2014))
Negotiation begins from the time the prospective

contracting parties manifest their interest in the
contract and ends at the moment of agreement of
the parties. The perfection or birth of the contract
takes place when the parties agree upon the
essential elements of the contract. The last stage
is the consummation of the contract where the
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parties fulfill or perform the terms they agreed on, subject matter and cause (CIVIL CODE,
culminating in its extinguishment. (International art. 1356) (e.g., donation of real property)
Freeport Traders, Inc. v. Danzas Intercontinental,
Inc., 640 SCRA 621, Jan. 26, 2011) 2. As to cause
(a) Onerous – The cause is, for each
II. CLASSIFICATIONS contracting party, the prestation or
promise of a thing or service by the other
Auto Contracts - only one person represents two (e.g., contract of sale) (CIVIL CODE, art.
opposite parties, but in different capacities. 1350)
(ERNESTO L. PINEDA, OBLIGATIONS AND (b) Remuneratory– The cause is some past
CONTRACTS 367 (2009)) service or benefit which by itself is a
recoverable debt (CIVIL CODE, art. 1350)
Example: An agent representing his principal
sells a specific car to himself, as a buyer Note: In a remuneratory donation, the past
service or debt is not by itself a recoverable
Collective Contracts - will of the majority binds debt. (CIVIL CODE, art. 726)
the minority to an agreement notwithstanding the
opposition of the latter. (4 ARTURO M. TOLENTINO, (c) Gratuitous (or contracts of pure
COMMENTARIES AND JURISPRUDENCE ON THE CIVIL beneficence) – founded on the mere
CODE OF THE PHILIPPINES 437 (1991)) liberality of the benefactor (e.g., pure
donation) (CIVIL CODE, art. 1350)
Example: Collective bargaining contracts by
labor organizations under R.A. No. 875. 3. As to importance or dependence of one
upon another
Contracts of Adhesion - One party imposes a (a) Principal – when the contract does not
ready-made form of contract which the other depend for its existence and validity upon
party may accept or reject but cannot modify; one another contract (e.g. sale, lease)
party prepares the stipulation in the contract, (b) Accessory – depends on another
while the other party merely affixes his signature contract for its existence and validity
or his “adhesion” thereto, giving no room for (e.g., mortgage, guaranty)
negotiation and depriving the latter of the (c) Preparatory – the contract is entered
opportunity to bargain on equal footing (Polotan, into as a means through which future
Sr. v. CA, G.R. No. 119379, Sept. 25, 1998); contracts may be made (e.g. agency,
construed strictly against the one who drafted the partnership) (ERNESTO L. PINEDA,
same (Geraldez v. CA, G.R. No. 108253, Feb. 23, OBLIGATIONS AND CONTRACTS 36 (2009))
1994).
4. As to parties obliged
1. As to perfection or formation (a) Unilateral – only one of the parties has
(a) Consensual – perfected by mere an obligation (ERNESTO L. PINEDA,
consent of the parties on the subject OBLIGATIONS AND CONTRACTS 366
matter and cause (CIVIL CODE, art. 1315) (2009))
(e.g., contract of sale) (b) Bilateral – both parties are required to
(b) Real – perfected by delivery (CIVIL CODE, render reciprocal prestations (CIVIL
art. 1316) (e.g. commodatum, pledge, CODE, art. 1191)
deposit)
(c) Formal/Solemn – require a certain 5. As to form
specified form, in addition to consent, (a) Common or informal – require no
particular form (CIVIL CODE, art. 1356)
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(b) Special or formal – require some III. ESSENTIAL REQUISITES

particular form (CIVIL CODE, art. 1356) 1. Consent
6. As to their purpose 2. Subject Matter
(a) Transfer of ownership 3. Consideration
(b) Conveyance of use
(c) Rendition of service (4 ARTURO M. 1. CONSENT
JURISPRUDENCE ON THE CIVIL CODE OF THE Definition
PHILIPPINES 410-411 (1991)) Meeting of the offer and the acceptance upon the
thing and the cause which are to constitute the
7. As to their subject matter contract; concurrence of a certain offer and an
(a) Things absolute acceptance (CIVIL CODE, art. 1319)
(b) Services (4 ARTURO M. TOLENTINO,
COMMENTARIES AND JURISPRUDENCE ON Requisites (C3):
THE CIVIL CODE OF THE PHILIPPINES 410-
1. Must be manifested by the Concurrence of
411 (1991))
the offer and acceptance upon the thing and
cause;
8. As to the risk involved
2. Parties are legally Capacitated to enter into
(a) Commutative – when the undertaking of
contracts
one party is considered the equivalent of
3. Consent must be intelligent, free,
that of the other (e.g. sale, lease)
spontaneous, and real (ERNESTO L. PINEDA,
(b) Aleatory – when it depends upon an
uncertain event or contingency both as to
benefit or loss (e.g. insurance, sale of
Offer – A proposal made by one party to another
hope) (DESIDERIO P. JURADO, COMMENTS
to enter into a contract; must be certain or
AND JURISPRUDENCE ON OBLIGATIONS AND
definite, complete and intentional. (CIVIL CODE,
art. 1319)
9. As to name or designation
Acceptance – Manifestation by the offeree of his
(a) Nominate – those which have a specific
assent to the terms of the offer; must be absolute
name or designation in law (e.g., lease,
(i.e. must not qualify the terms of the offer)
sale, agency, etc.)
(Oesmer v. Paraiso Development Corporation,
(b) Innominate – those which have no
G.R. No. 157493, Feb. 5, 2007)
specific designation or name in law (CIVIL
CODE, art. 1307)
Note: A qualified acceptance constitutes counter-
Do ut des – I give that you may give
offer. (CIVIL CODE, art. 1319)
Do ut facias – I give that you may do
Facio ut des – I do that you may give
Elements of a valid offer
Facio ut facias – I do that you may do
(ERNESTO L. PINEDA, OBLIGATIONS AND 1. Definite
CONTRACTS 380 (2009)) 2. Complete
3. Intentional (Palattao v. CA, G.R. No. 131726,
Note: Do ut des is, however, no longer an May 7, 2002)
innominate contract. It has already been given
a name of its own, i.e., barter or exchange. Elements of a valid acceptance
(CIVIL CODE, art. 1638) 1. Unequivocal
2. Unconditional (Palattao v. CA, G.R. No.
131726, May 7, 2002)
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When offer becomes ineffective (QR-DRIP) manifestation. Under our Civil Law, the offer and
i. Death, civil interdiction, insanity or insolvency acceptance concur only when the offeror comes
of either party before acceptance is conveyed to know of, and not when the offeree merely
(CIVIL CODE, art. 1323); manifests his acceptance.
ii. Express or implied Rejection of the offer by
the offeree; (NHA v. Grace Baptist Church, Rule on complex offers
G.R. No. 156437, Mar. 1, 2004) 1. Offers are interrelated – Contract is
iii. Qualified or conditional acceptance of the perfected if all the offers are accepted.
offer, which becomes a counter-offer; (CIVIL 2. Offers are not interrelated – Single
CODE, art. 1319) acceptance of each offer results in a
iv. Subject matter becomes Illegal or impossible perfected contract unless the offeror has
before acceptance is communicated; made it clear that one is dependent upon the
(EDGARDO L. PARAS, CIVIL CODE OF THE other and acceptance of both is necessary.
PHILIPPINES ANNOTATED: PRESCRIPTION; (CIVIL CODE, art. 1319)
OBLIGATIONS AND CONTRACTS 612 (2016)) 3. Offer interpraesentes must be accepted
v. Lapse of Period given to the offeree within immediately. If the parties intended that there
which to signify acceptance; (CIVIL CODE, art. should be an express acceptance, the
1324) or contract will be perfected only upon
vi. Revocation of the offer in due time (i.e. before knowledge by the offeror of the express
the offeror has learned of its acceptance by acceptance by the offeree of the offer. An
the offeree) (CIVIL CODE, art. 1324) acceptance which is not made in the manner
prescribe by the offeror is not effective, but a
Period for acceptance counter-offer which the offeror may accept or
1. Stated fixed period in the offer – The reject. (Malbarosa v. Court of Appeals, G.R
offeree may accept at any time until such No. 125761, Apr. 30, 2003)
period expires (Young v. Court of Appeals,
G.R. No. 83271, May 8, 1991). Rule on advertisements as offers
2. No stated fixed period 1. Business advertisements – Not a definite
(a) Offer is made to a person present – offer, but mere invitation to make an offer,
Acceptance must be made immediately unless it appears otherwise (CIVIL CODE, art.
(Malbarosa v. Court of Appeals, G.R No. 1325)
125761, Apr. 30, 2003). 2. Advertisements for bidders – They are
(b) Offer is made to a person absent – simply invitations to make proposals and the
Acceptance may be made within such advertiser is not bound to accept the highest
time that, under normal circumstances, or lowest bidder, unless the contrary appears
an answer can be received from him. (CIVIL CODE, art. 1326)
CONTRACTS 425 (2009)) Article 1326 of the Civil Code, which specifically
tackles offer and acceptance of bids, provides
Note: For a contract to arise, the acceptance that advertisements for bidders are simply
must be made known to the offeror. Accordingly, invitations to make proposals, and that an
the acceptance can be withdrawn or revoked advertiser is not bound to accept the highest
before it is made known to the offeror. (Oesmer v. bidder unless the contrary appears. (PMO v.
Paraiso Development Corporation, G.R. No. STRADEC, G.R. No. 200402, June 13, 2013)
157493, Feb. 5, 2007)
Four (4) theories on acceptance of offer by
Note: We follow the theory of cognition (CIVIL telegram or letter
CODE, art. 1319) and not the theory of (a) Manifestation – perfected from the moment
the acceptance is declared or made.
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(b) Expedition – perfected from the moment the price) – offeror can withdraw the offer at any
offeree transmits the notification of time before acceptance by communicating
acceptance. such withdrawal
(c) Reception – perfected from the moment the 2. Supported by independent consideration –
offeror receives the letter. offeror cannot withdraw his offer (CIVIL CODE,
(d) Cognition – perfected from the moment the art. 1324)
acceptance comes to the knowledge of the
offeror. (DESIDERIO P. JURADO, COMMENTS Persons incapacitated to give consent (DD-
AND JURISPRUDENCE ON OBLIGATIONS AND MI):
CONTRACTS 402 (2010)) i. Minors (CIVIL CODE, art. 1327).
ii. Insane or demented persons (CIVIL CODE, art.
Note: Contracts under the Civil Code generally 1327), unless the contract was entered into
adhere to the Cognition Theory while during a lucid interval (CIVIL CODE, art. 1328)
transactions under the Code of Commerce iii. Deaf-mutes who do not know how to write
adhere to the Manifestation Theory. (DESIDERIO (CIVIL CODE, art. 1327).
P. JURADO, COMMENTS AND JURISPRUDENCE ON iv. In a state of Drunkenness or under a hypnotic
OBLIGATIONS AND CONTRACTS 402 (2010)) spell (CIVIL CODE, art. 1328)
When the offeror refuses to open the letter or Contracts entered into by the persons above are
telegram he is held to have a constructive notice in generally valid until annulled; however,
of the contents thereof and will be bound by the annulment cannot prosper when they have been
acceptance of the offeree. (DESIDERIO P. JURADO, ratified. (CIVIL CODE, art. 1390).
COMMENTS AND JURISPRUDENCE ON OBLIGATIONS
AND CONTRACTS 403-404 (2010)) Rule on contracts entered into by minors
General rule: Voidable (CIVIL CODE, art. 1391)
Options
General rule: If the offeror has allowed the Exceptions (MENGS) (These contracts are
offeree a certain period to accept, the offer may valid):
be withdrawn at any time before acceptance by 1. If upon reaching age of Majority, they ratify
communicating such withdrawal. (CIVIL CODE, art. the same. (Ibanez v. Rodriguez, G.R. No.
1324) 23153, Mar. 7, 1925)
2. They were entered unto by a Guardian and
Exception: When the option is founded upon a the court having jurisdiction had approved the
consideration as something paid or promised. same. (Roa v. Roa, G.R. No. 28532, Mar. 4,
(CIVIL CODE, art. 1324) 1929)
3. They were in the form of Savings account in
An option, sometimes called an “unaccepted the Postal Savings Bank, provided
offer,” is simply a contract by which the owner of furthermore that the minor was at least 7
property agrees with another person that he shall years old. (Rev. Adm. Code, Sec. 2007)
have the right to buy his property at a fixed price 4. They were contracts for Necessaries such as
within a certain time. An option is not of itself a food, but here the persons who are bound to
purchase, but merely secures the privilege to buy. give them support should pay therefor (CIVIL
It is not a sale of property but a sale of the right to CODE, arts. 1489 & 2164; FAMILY CODE, E.O.
purchase. (Adelfa Properties, Inc. v. CA, G.R. No. 209, art. 194 (1987))
111238, Jan. 25, 1995) 5. Contracts where the minor misrepresented
his age and pretended to be one of major age
Effects of option: and is thus in Estoppel. (Hermosa v. Zobel,
1. Not supported by an independent G.R. No. L-11835, Oct. 30, 1958). It is,
consideration (i.e., distinct from the purchase however, essential here that the other party
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must have been MISLED (Bambalan v. (ERNESTO L. PINEDA, OBLIGATIONS AND

Maramba, G.R. No. L-27710, Jan. 30, 1928). CONTRACTS 440 (2009))
HOWEVER, minors can set up the defense of
minority to resist the claim when there is only Causes which vitiate consent
passive misrepresentation, as when they did A contract where consent is given through
not disclose their minority because they had Mistake, Violence, Intimidation, Undue Influence,
no juridical duty to disclose their inability. or Fraud is voidable (VIMFU). (CIVIL CODE, art.
(Braganza v. De Villa Abrille, G.R. No. L- 1330)
12471, Apr. 13, 1959)
i. Mistake
Note: If both parties to a contract are minors, the Must include both ignorance, which is the
contract is unenforceable. (CIVIL CODE, art. absence of knowledge with respect to a thing, and
1403(3)). mistake properly speaking, which is a wrong
conception about said thing, or a belief in the
Examples of persons specially disqualified to existence of some circumstance, fact, or event,
enter into contracts (Contracts entered into are which in reality does not exist. (Theis v. Court of
VOID): Appeals, G.R. No. 126013, Feb. 12, 1997)
1. Husband and wife selling to one another
(CIVIL CODE, art. 1490) or donating to one
Requisites (FES):
another (CIVIL CODE, art. 134)
2. Insolvents before they are discharged 1. The error must be Substantial regarding:
cannot, for example, make payments. i. The object of the contract, or
Exception: Payment of administrative ii. The conditions which principally moved
expenses shall be allowed. (An Act Providing or induced one of the parties (error in
For The Rehabilitation Or Liquidation Of quality or in quantity), or
Financially Distressed Enterprises And iii. Identity of qualifications, but only if such
Individuals [Financial Rehabilitation and was the principal cause of the contract
Insolvency Act of 2010], Republic Act No. (CIVIL CODE, art. 1331)
10142, § 57 (2010)) 2. The error must be Excusable (not caused by
3. Persons disqualified because of fiduciary negligence). There is no mistake if the party
relationship (CIVIL CODE, art. 1491) alleging it knew the doubt, contingency or risk
affecting the object of the contract. (CIVIL
INCAPACITY DISQUALIFICATION CODE, art. 1333)
3. The error must be mistake of Fact, and not of
Restrains the Restrains the very
law. (Luna v. Linatoc, G.R. No. L-48403, Oct.
exercise of the right right itself
28, 1942)
to contract
May still enter into Absolutely disqualified
Two (2) General Kinds of Mistake
contract through
(a) Mistake of Fact – When one or both of the
parent, guardian or
contracting parties believe that a fact exists
legal representative
when in reality it does not, or that such fact
Based upon Based upon public
does not exist when in reality it does
subjective policy and morality
circumstance of
certain person
Contracts entered Contracts entered into
(b) Mistake of Law
into are merely are void
• General Rule: Mistake does not vitiate
voidable
consent (CIVIL CODE, art. 1331)
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Reason: Ignorance of the law does not petitioner Edna's imprisonment would be a
excuse anyone from compliance legal consequence of such conviction.
therewith (CIVIL CODE, art. 3) (Spouses Binua v. Ong, G.R. No. 207176,
June 18, 2014)
• Exception: Mutual error as to the legal
effect of an agreement when the real Reluctant Consent – It is necessary to
purpose of the parties is frustrated (CIVIL distinguish between real duress and the motive
CODE, art. 1334). which is present when one gives his consent
“Legal effect” here refers to the rights of reluctantly. A contract is valid even though one of
the parties as stated in the legal the parties entered into it against his wishes or
provisions. even against his better judgment. Contracts are
also valid even though they are entered into by
ii. Violence one of the parties without hope of advantage or
Requisites (PFR): profit. (Martinez v. Hongkong and Shanghai
1. Serious or irresistible Physical Force Bank, G.R. No. L-5496, Feb. 19, 1910)
2. Such force is the Reason why the contract
was entered into. (CIVIL CODE, art. 1335) Note: Violence or intimidation shall annul the
obligation, although it may have been employed
Note: Violence refers to physical coercion, while by a third person who did not take part in the
intimidation refers to moral coercion. (EDGARDO L. contract. (CIVIL CODE, art. 1336)
PARAS, CIVIL CODE OF THE PHILIPPINES
ANNOTATED: PRESCRIPTION; OBLIGATIONS AND iv. Undue Influence
CONTRACTS 632 (2016)) Requisites (DIP):
1. Improper advantage
iii. Intimidation 2. Power over the will of another
Requisites (FReT): 3. Deprivation of the latter of a reasonable
1. Reasonable and well-grounded Fear of an freedom of choice. (CIVIL CODE, art. 1337)
imminent and grave evil upon his person,
property, or upon the person or property of Circumstances to be considered (FIRM)
his spouse, descendants, or ascendants (a) Confidential, family, spiritual, and other
2. It is the Reason why the contract was entered Relations between the parties
into (b) Mental weakness
3. The Threat must be of an unjust act, an (c) Ignorance
actionable wrong (A threat to enforce a just or (d) Financial distress (CIVIL CODE, art. 1337).
legal claim through competent authority does
not vitiate consent.) (CIVIL CODE, art. 1335) Fraud
Example: What the respondent did was Fraud in Obtaining Consent

merely inform them of petitioner Edna’s In order that fraud may vitiate consent, it must be
conviction in the criminal cases for estafa. It the causal (dolo causante), not merely the
might have evoked a sense of fear or dread incidental (dolo incidente), inducement to the
on the petitioners’ part, but certainly there is making of the contract. (Ponce de Leon v.
nothing unjust, unlawful or evil in the Rehabilitation Finance Corporation, G.R. No. L-
respondent's act. ... The petitioners must 24571, Dec. 18, 1970)
remember that petitioner Edna's conviction
was a result of a valid judicial process and (a) Causal Fraud (Dolo Causante)
even without the respondent allegedly This is the use of insidious words or machinations
“ramming it into petitioner Victor's throat,” by one of the contracting parties to induce the
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other party to enter into a contract, which, without Simulated Contracts

them, he would not have agreed to. (CIVIL CODE, (a) Absolute – the parties have no intention to
art. 1338) be bound at all (CIVIL CODE, art. 1345); void
from beginning (CIVIL CODE, art. 1346).
Determines or is the essential cause of consent. (b) Relative – the parties conceal their true
agreement (CIVIL CODE, art. 1345): the real
It is the deception employed by one party prior to agreement binds the parties when:
or simultaneous to the contract in order to secure i. There is no prejudice to 3rd persons; and
the consent of the other (Metropolitan Fabrics, ii. It is not contrary to law, moral, good
Inc. v. Prosperity Credit Resources, Inc., G.R. No. customs, public order or public policy
154390, Mar. 17, 2014) (CIVIL CODE, art. 1346)
Effects: Voidability of the contract and the (c) Dealer’s Talk (Dolo bonus)
indemnification for damages (Geraldez v. This oxymoron (literally, good fraud) refers to
CA, G.R. No. 108253, Feb. 23, 1994) dealer’s talk, the kind of exaggerations in
advertisement the public is familiar with. The
Requisites (PS-SOBIA) ancient principle still governs in this regard:
1. There must be misrepresentation or Caveat emptor -- Buyer beware. But once the
concealment (CIVIL CODE, arts. 1338 & 1339) dealer’s talk goes beyond innocent conventional
by a party Prior to or Simultaneous to the exaggeration and later the realm of bad faith, then
consent or creation of the contract. deceit (either causante or incidental) may set in.
2. Must be Serious. (CIVIL CODE, art. 1344) (RUBEN F. BALANE, JOTTINGS AND JURISPRUDENCE
3. Must have been employed by only One of the IN CIVIL LAW (OBLIGATIONS AND CONTRACTS) 635-
contracting parties. (CIVIL CODE, art.1342) 36 (2020))

4. Must be made in Bad faith or with intent to
deceive. (CIVIL CODE, art. 1343) NOTE: In absolute simulation, there is a colorable
5. Must have Induced the consent of the other contract but the parties have no intention to be
contracting party. (CIVIL CODE, art. 1338) bound by it. However, if the parties state a false
6. Must be Alleged and proved by clear and cause in the contract to conceal their real
convincing evidence, and not merely by a agreement, the contract is relatively simulated
preponderance thereof. (Tan Sua Sia v. and the parties are still bound by their real
Sontua, 56 Phil. 711, 1932) agreement. (CIVIL CODE, art. 1345; Valerio v.
Refresca, G.R. No. 163687, Mar. 28, 2006)
(b) Incidental Fraud (Dolo Incidente)
Deceptions or misrepresentations which are not 2. SUBJECT MATTER (SM)
serious and without which the other party would
still have entered into the contract. Requisites of things as SM (W-PLDT):
1. Within the commerce of man (CIVIL CODE, art.
It is not the cause which induced the party to enter 1347) – either existing or in potency
into a contract and refers only to some particular 2. Licit or not contrary to law, morals, good
or accident of the obligations. (Geraldez v. customs, public order or public policy (CIVIL
CA, G.R. No. 108253, Feb. 23, 1994) CODE, art. 1347)
3. Possible, legally or physically (CIVIL CODE,
Effect: Only renders the person employing it art. 1348).
liable for damages. (CIVIL CODE, art. 1344) 4. Determinate as to its kind or determinable
without need to enter into a new contract
5. Transmissible (CIVIL CODE, art. 1347)
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Requisites of services as SM (PWD): Requisites (LET)

1. Within the commerce of man (CIVIL CODE, art. 1. It must Exist at the time the contract is
1347) entered into. (CIVIL CODE, art. 1352 &
2. Possible, physically or legally (CIVIL CODE, 1409[3])
art. 1348) 2. It must be True. (CIVIL CODE, art 1353)
3. Determinate or capable of being made 3. It must be Licit. (CIVIL CODE, art. 1352)
determinate (CIVIL CODE, arts. 1318[2] &
1349) Motive – refers to the particular reason of one
12. party for entering into the contract which does not
Things which cannot be the subject matter of affect the other party nor the validity of the
a contract (I-COFID): contract; however, when the motive
1. Things which are Outside the commerce of predetermines the cause or when the realization
men (CIVIL CODE, art. 1347) of such motive has been made a condition upon
2. Intransmissible rights (CIVIL CODE, art. 1347) which the contract is made to depend, the motive
3. Future inheritance, except in cases expressly may be regarded as the cause (Uy v. CA, G.R.
authorized by law (CIVIL CODE, art. 1347) No. 120465, Sept. 9, 1999).
4. Services Contrary to law, morals, good
customs, public order or public policy (CIVIL Cause distinguished from Motive
CODE, art. 1347) CAUSE MOTIVE
5. Impossible things or services (CIVIL CODE, Immediate or direct Remote or indirect
art. 1348). reason of a contract reason
6. Objects which are not possible of Objective and Psychological or
Determination as to their kind (CIVIL CODE, juridical reason of purely personal
art. 1349) contract; always reason; may be
known to both parties unknown to the other
NOTE: Contracts upon future inheritance are void party
when:
Remains the same May vary although a
• The succession has not yet been regardless of a party enters into the
opened; party’s motive for same kind of contract
• The object of the contract forms part of entering into a
the inheritance; and contract
• The promissor has, with respect to the Legality or illegality of Legality or illegality of
object, an expectancy of a right, which is cause affects the motive does not
purely hereditary in nature. (De Belen existence or validity affect the existence
Vda. De Cabalu v. Tabu, G.R. No. of the contract or validity of contract
188417, Sept. 24, 2012) (HECTOR S. DE LEON & HECTOR M. DE LEON, JR.,
COMMENTS AND CASES ON OBLIGATIONS AND
3. CAUSE OR CONSIDERATION CONTRACTS 673-674 (2014))
Definition Causes in some contracts:

Refers to the immediate, direct and most 1. Onerous contracts – The prestation of
proximate reason which justifies the creation of promise of a thing or service by the other.
an obligation through the will of the contracting (CIVIL CODE, art. 1350)
parties and is the essential reason for the 2. Remuneratory contracts – The service or
contract. (Uy v. CA, G.R. No. 120465, Sept. 9, benefit remunerated. (CIVIL CODE, art. 1350)
1999)
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3. Contracts of Pure Beneficence – Mere 2. In cases

liberality of the donor or benefactor. (CIVIL specified by law
CODE, art. 1350) (the ff. contracts
4. Accessory Contracts Like Mortgage and may be
Pledge – The cause is generally the same as rescinded)
the cause for the principal contract of loan. • Those entered
(China Bank v. Lichauco, G.R. No. L-22001, into by guardians
Nov. 4, 1924) when the wards
5. Accessory Contracts of Personal suffer lesion by
Guaranty – Generally pure liberality but more than ¼ of
sometimes material consideration may be the value of the
given. (Standard Oil Co. v. Arenas, G.R. No. things which are
L-5921, Jul. 25, 1911) the object thereof
(CIVIL CODE, art.
EFFECT IN CAUSE EFFECT 1381, par. 1)
Absence of causa – Void – Contract • Those agreed
Total lack or absence produces no legal upon in
of cause effect (CIVIL CODE, representation of
art. 1352) absentee, if the
Illegality of causa – Void – Contract latter suffer lesion
The cause is contrary produces no legal stated in par. 1
to law, morals, good effect (CIVIL CODE, (CIVIL CODE, art.
customs, public order art. 1352) 1381, par. 2)
and public policy • Partition among
Falsity of causa – A Void IF it should not co-heirs, when
cause is stated but it be proved that the any one of them
is not true contract was founded received things
upon another cause with a value less
which is true and by at least ¼ than
lawful (CIVIL CODE, the share to
art. 1353) which he is
Causa not stated in Presumed to Exist – entitled (CIVIL
the contract Burden of proof is on CODE, art. 1098)
the person assailing
its existence (CIVIL Moral Obligation as Cause
CODE, art. 1354) Where the moral obligation arises wholly from
Inadequacy of General Rule: Does ethical considerations, unconnected with any civil
causa or lesion not invalidate obligations, it cannot constitute a sufficient cause
(CIVIL CODE, art. contract or consideration to support an onerous contract.
1355) (Fisher v. Robb, G.R. No. 46274, Nov. 2, 1939)
Exceptions:
1. When, together Where such moral obligation is based upon a
with lesion, there previous civil obligation which has already been
has been: fraud, barred by the statute of limitations at the time
mistake or undue when the contract is entered into, it constitutes a
influence sufficient cause or consideration to support a
contract. (Villaroel v. Estrada, G.R. No. L-47362,
Dec. 19, 1940)
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B. FORMALITY it shall not take effect unless it is done during the

lifetime of the donor. (CIVIL CODE, art. 749)
FORM refers to the manner in which a contract is
executed or manifested (HECTOR S. DE LEON & If the acceptance is made in a separate
HECTOR M. DE LEON, JR., COMMENTS AND CASES instrument, the donor shall be notified thereof in
ON OBLIGATIONS AND CONTRACTS 697 (2014)). In an authentic form, and this step shall be noted in
general, form does not matter for the validity of a both instruments. (CIVIL CODE, art. 749)
contract. It is enough that there be consent,
object, and cause. (CIVIL CODE, art. 1356) 2. Partnership
A partnership may be constituted in any form,
(a) Informal Contracts – may be entered into except where immovable property or real rights
whatever form as long as there is consent, are contributed thereto, in which case a public
object and cause instrument shall be necessary. (CIVIL CODE, art.
(b) Formal Contracts – required by law to be in 1771)
certain specified form, such as donation of
real property, stipulation to pay interest, A contract of partnership is void, whenever
transfer of large cattle, sale of land thru immovable property is contributed thereto, if an
agent, contract of antichresis, contract of inventory of said property is not made, signed by
partnership, registration of chattel mortgage, the parties, and attached to the public instrument.
donation of personal property in excess of (CIVIL CODE, art. 1773)
5,000. (HECTOR S. DE LEON & HECTOR M. DE
LEON, JR., COMMENTS AND CASES ON 3. Antichresis
OBLIGATIONS AND CONTRACTS 699, 701 The amount of the principal and of the interest
(2014)) shall be specified in writing; otherwise, the
contract of antichresis shall be void. (CIVIL CODE,
Formal / Solemn Contracts art. 2134)
1. Donation
The donation of a movable may be made orally or 4. Agency to Sell Real Property
in writing. (CIVIL CODE, art. 748) When a sale of a piece of land or any interest
therein is through an agent, the authority of the
An oral donation requires the simultaneous latter shall be in writing; otherwise, the sale shall
delivery of the thing or of the document be void. (CIVIL CODE, art. 1874)
representing the right donated. (CIVIL CODE, art.
748) 5. Interest
No interest shall be due unless it has been
If the value of the personal property donated expressly stipulated in writing. (CIVIL CODE, art.
exceeds five thousand pesos, the donation and 1956)
the acceptance shall be made in writing.
Otherwise, the donation shall be void. (CIVIL 6. Ordinary Diligence
CODE, art. 748) A stipulation between the common carrier and the
shipper or owner limiting the liability of the former
In order that the donation of an immovable may for the loss, destruction, or deterioration of the
be valid, it must be made in a public document, goods to a degree less than extraordinary
specifying therein the property donated and the diligence shall be valid, provided it be:
value of the charges which the donee must (a) In writing, signed by the shipper or owner;
satisfy. (CIVIL CODE, art. 749) (b) Supported by a valuable consideration
other than the service rendered by the
The acceptance may be made in the same deed common carrier; and
of donation or in a separate public document, but
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(c) Reasonable, just and not contrary to some of them, of such things in action or
public policy (CIVIL CODE, art. 1744) pay at the time some part of the purchase
money; but when a sale is made by
7. Chattel Mortgage auction and entry is made by the
By a chattel mortgage, personal property is auctioneer in his sales book, at the time
recorded in the Chattel Mortgage Register as a of the sale, of the amount and kind of
security for the performance of an obligation. If property sold, terms of sale, price, names
the movable, instead of being recorded, is of the purchasers and person on whose
delivered to the creditor or a third person, the account the sale is made, it is a sufficient
contract is a pledge and not a chattel mortgage. memorandum
(CIVIL CODE, art. 2140) (e) An agreement for the Leasing for a
longer period than one year, or for the
8. Sale of Large Cattle sale of real property or of an interest
The form sale of large cattle shall be governed by therein;
special laws. (CIVIL CODE, art. 1581) (f) A representation as to the Credit of a third
person. (CIVIL CODE, art. 1403)
General rule: A contract is valid and binding in
whatever form provided that the 3 essential NOTE: Article 1443 requires an express trust
requisites of a contract (consent, object, and over an immovable or an interest therein to
cause) concur. (CIVIL CODE, art. 1356) be in writing for purposes of proof.
Exceptions: iii. Law requires the contract to be in some form

i. Law requires the contract to be in some form for convenience - Contracts enumerated in
for validity (e.g., donation and acceptance of Art. 1358 are valid. Formal requirements are
real property) (CIVIL CODE, art. 749). only for the benefit of third parties. Non-
ii. Law requires the contract to be in some form compliance therewith does not adversely
to be enforceable – Contracts enumerated in affect the validity of neither the contract nor
Art. 1403(2) are valid but cannot be enforced the contractual rights and obligations of the
in court or sued upon unless they are cured parties thereunder. (Fule v. CA, G.R. No.
or ratified. 112212, Mar. 2, 1998)
The following agreements shall be
unenforceable by action, unless the same, or The following must appear in a public
some note or memorandum, thereof, be in document:
writing, and subscribed by the party charged, (a) Contracts whose object is the creation,
or by his agent: (CYS-DLM) transmission, modification or
extinguishment of real rights over
(a) An agreement that by its terms is not to immovables
be performed within a Year from the (b) Cession, repudiation, renunciation of
making thereof; hereditary rights or those of the conjugal
(b) A special promise to answer for the Debt, partnership of gains
default, or miscarriage of another; (c) Power to administer property for another,
(c) An agreement made in consideration of or any other power which has for its
Marriage, other than a mutual promise to object an act appearing or which should
marry; appear in a public document, or should
(d) An agreement for the Sale of goods, prejudice a third person;
chattels or things in action, at a price not (d) Cession of action of rights proceeding
less than five hundred pesos, unless the from an act appearing in a public
buyer accept and receive part of such document.
goods and chattels, or the evidences, or
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(e) All other contracts where the amount (a) Mutual mistake fails to disclose the real
involved exceeds P500 must appear in agreement (but it must be a mistake of Fact)
writing, even a private one. (CIVIL CODE, (CIVIL CODE, art. 1361)
art. 1358) (b) Unilateral mistake or the other party acted
Fraudulently (CIVIL CODE, art. 1362)
NOTE: Electronic documents shall have the legal (c) Unilateral mistake and the other party is guilty
effect, validity or enforceability as any other of Concealment (CIVIL CODE, art. 1363)
document or legal writing, and where the law (d) Person drafting the instrument or clerk or
requires a document to be in writing, that typist through ignorance, lack of skill,
requirement is met by an electronic document if negligence or bad faith, does not show the
the said electronic document maintains its True Intention (CIVIL CODE, art. 1364)
integrity and reliability and can be authenticated (e) Parties agree on Mortgage, pledge of real or
so as to be usable for subsequent reference. (Act personal property but instrument says that it
Providing for the Recognition and Use of is sold absolutely or involves a right to
Electronic Commercial and Non-commercial repurchase (CIVIL CODE, art. 1365)
Transactions and Documents, Penalties for
Unlawful Use Thereof and For Other Purposes [e- No reformation is allowed in: (SD-WV)
Commerce Act of 2000], Republic Act No. 8792, (a) Simple Donation
§ 7 (2000)) (b) Wills
(c) Real agreement is Void (CIVIL CODE, art.
————- end of topic ————- 1366)
Who may ask for reformation: (NOT-FE-MM)
C. REFORMATION OF INSTRUMENTS (a) The party who is NOT at Fault (i.e., injured
party, heirs or assigns) (CIVIL CODE, art.
As distinguished from annulment where there is 1367)
no meeting of the minds, in reformation, there is (b) Party who is NOT asked to Enforce the
meeting of the minds but attended by mistake, instrument (CIVIL CODE, art. 1368)
fraud, inequitable conduct, or accident. (CIVIL (c) If there is a Mutual Mistake, reformation may
CODE, art. 1359) be had by either party or successor in interest
Requisites for action for reformation (VP-PIM)
Procedure for reformation shall be governed by
1. Meeting of the minds (CIVIL CODE, art. 1359)
the Rules of Court as promulgated by the
2. True Intention is not expressed (CIVIL CODE,
art. 1359) Supreme Court. (CIVIL CODE, art. 1369)
3. Clear and convincing Proof (HECTOR S. DE
LEON & HECTOR M. DE LEON, JR., COMMENTS
AND CASES ON OBLIGATIONS AND CONTRACTS
713 (2014)) D. INTERPRETATION OF CONTRACTS
4. Within proper prescriptive Period If the terms of the agreement are clear and
5. Not simple unconditional donation inter vivos unequivocal, their plain and literal meanings
or contract where real agreement is Void should be followed. (CIVIL CODE, art. 1370)
In the construction or interpretation of an
NOTE: In reformation, no new contract is made. instrument, the intention of the parties is
primordial and is to be pursued. (Valdez v. CA,
Contracts that may be reformed: (CM-TIFF) G.R. No. 140715, Sept. 24, 2004)
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In order to judge the intention of the contracting opportunity to bargain on equal footing. (Dio v. St.
parties, their contemporaneous and subsequent Ferdinand Memorial Park, Inc., G.R. No. 169578,
acts shall be principally considered. (CIVIL CODE, Nov. 30, 2006)
art. 1371)
In case of doubt concerning the surrounding
circumstances in the execution of a contract, the E. DEFECTIVE CONTRACTS
least transmission of rights and interest shall
prevail if the contract is gratuitous, and if onerous, I. RESCISSIBLE CONTRACTS
the doubt is to be settled in favor of greatest
reciprocity. (CIVIL CODE, art. 1378) Definition
Those which have caused economic damage
The terms of an agreement or writing are either to one of the parties or to a third person and
presumed to be have been used in their primary which may be set aside even if valid. They may
and general acceptation. However, evidence may be set aside in whole or in part, to the extent of
be admitted to show that they have a local, the damage caused. (4 ARTURO M. TOLENTINO,
technical, or otherwise peculiar signification and COMMENTARIES AND JURISPRUDENCE ON THE CIVIL
were used and understood in that particular CODE OF THE PHILIPPINES 574 (1991))
instance, in which case, the agreement or writing
must be construed accordingly. (REVISED RULES
Rescissible Contracts under Art. 1381: (ALL-
ON EVIDENCE, rule 130, § 15)
GF)
Only laws existing at the time of the execution of (a) Entered into by Guardian whenever ward
a contract are applicable to it and not the later suffers damage by more than 1/4 of value of
statutes unless the latter are specifically intended object;
to have retroactive effect. (Vive Eagle Land, Inc. (b) Agreed upon in representation of Absentees,
v. CA, G.R. No. 150308, Nov. 26, 2004) if absentee suffers lesion by more than ¼ of
value of property;
When there are several provisions in a contract, (c) Contracts where rescission is based on
the construction to be adopted should be that one Fraud committed on creditors (accion
which will give effect to all provisions. A contract pauliana);
must be read in its entirety. (Rigor v. Consolidated (d) Objects of Litigation; contract entered into by
Orix Leasing Finance Corporation, G.R. No. defendant without knowledge or approval of
136423, Aug. 20, 2002) litigants or judicial authority; and
The ambiguity in a contract should be construed Contracts involving things under litigation are
against the party who caused the same. (CIVIL rescissible. Art. 1381 (4) requires the
CODE, art. 1377) concurrence of the following: (1) the
defendant, during the pendency of the case,
CONTRACT OF ADHESION: Its terms are enters into a contract which refers to the
prepared by only one party while the other party subject of litigation; and (2) said contract was
merely affixes his signature signifying his entered into without the knowledge and
admission thereto. It is binding as ordinary approval of the litigants or of a competent
contracts the reason being that the party who judicial authority. The court then has the duty
adheres to it is free to reject its entirety. It is to order the rescission of the contract upon
stricken down as void when the weaker party is the concurrence of such requisites. (Ada v.
imposed upon in dealing with the dominant Baylon, G.R. No. 182435, Aug. 13, 2012)
bargaining party and is reduced to the alternative (e) Provided for by Law – e.g. Arts. 1526, 1534,
of taking it or leaving it, completely deprived of the 1539, 1542, 1556, 1560, 1567 and 1659
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Accion pauliana refers to the action to rescind

i. Art. 1526 – Unpaid seller of goods, contracts in fraud of creditors under Art. 1381.
notwithstanding that the ownership in the
goods may have passed to the buyer, Requisites: (NR-CAFS)
subject to other provisions on Sales 1. The plaintiff asking for rescission has a Credit
ii. Art. 1534 – Unpaid seller having the right prior to the alienation, although demandable
of lien or having stopped the goods in later;
transit, where he expressly reserved his 2. The debtor has made a Subsequent contract
right to do so in case the buyer should conveying a patrimonial benefit to a third
make default, or the buyer has been in person;
default in the payment of the price for an 3. The creditor has No other legal Remedy to
unreasonable time satisfy his claim;
iii. Art. 1539 – In the sale of real estate at a 4. The act being impugned is Fraudulent;
rate of a certain price for a unit of 5. The third person who received the property
measure or number, at the will of the conveyed, if it is by onerous title, has been an
vendee, when the inferior value of the Accomplice in the fraud. (Anchor Savings
thing sold exceeds one-tenth of the price Bank v. Furigay, G.R. No. 191178, Mar. 13,
agreed upon, or if the vendee would not 2013; Lee v. Bangkok Bank Public Company,
have bought the immovable had he Limited, G.R. No. 173349, Feb. 9, 2011)
known of its smaller area or inferior
quality Under Art. 1382, payments made in a state of
iv. Art. 1542 – In the sale of real estate, insolvency for obligations to whose fulfillment
made for a lump sum, where the the debtor could not be compelled at the time they
boundaries are mentioned and the area were effected are also rescissible.
or number within the boundaries exceed
that specified in the contract, when the Requisites:
vendee does not accede to the failure to
1. The debtor-payer must have been insolvent
deliver what has been stipulated
(the insolvency need not be a judicially
v. Art. 1556 – Should the vendee lose, by
declared one).
reason of eviction, a part of the thing sold
2. The debt was not yet due and demandable
of such importance, in relation to the
whole, that he would not have bought it
without said part
Obligation created by the rescission of the
vi. Art. 1560 – Vendee may ask for
contract
recession if the immovable sold should
be encumbered with any non-apparent
Mutual Restitution
burden or servitude, not mentioned in the
1. Things which are the objects of the contract
agreement, of such a nature that it must
and their fruits
be presumed that the vendee would not
2. Price with interest (CIVIL CODE, art. 1385)
have acquired it had he been aware
thereof
NOTE: The obligation of restitution obviously
vii. Art. 1567 – In cases of breach of
does not apply to creditors who seek to impugn
warranty against hidden defects of or
fraudulent transactions of their debtors. The
encumbrances upon the thing sold
obligation of mutual restitution applies to
viii. Art. 1659 – If the lessor or lessee should
OTHERS so that that status quo may be restored.
not comply with their obligations, the
(EDGARDO L. PARAS, CIVIL CODE OF THE
aggrieved party may ask for rescission
PHILIPPINES ANNOTATED: PRESCRIPTION;
OBLIGATIONS AND CONTRACTS (2016))
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2. VOIDABLE CONTRACTS
Requisites: (4-TRR)
Definition
1. Plaintiff must be able to Return what has Intrinsic defect; valid until annulled; defect is due
been received by virtue of the rescissible to vice of consent or legal incapacity (ERNESTO L.
contract (CIVIL CODE, art. 1385) PINEDA, OBLIGATIONS AND CONTRACTS 601-602
2. Object of the contract is not in the legal (2009))
possession of Third persons in good faith.
Characteristics (ACED)
3. Plaintiff has no other legal Remedy. (CIVIL
CODE, art. 1383) (a) Effective until set aside
4. Action must be brought within the proper (b) May be assailed or attacked only in an Action
prescriptive period of 4 years. (CIVIL CODE, for that purpose
art. 1389) (c) Can be Confirmed
Note: Confirmation is the proper term for
Badges of fraud are circumstances indicating curing the defect of a voidable contract.
that certain alienation has been made in fraud of (d) Can be assailed only by the party whose
creditors. Some examples are: consent was Defective or his heirs or assigns
i. Consideration of the conveyance is
inadequate or fictitious; What contracts are voidable:
ii. Transfer was made by a debtor after a suit Contracts entered into: (SIM-D3)
has been begun and while it is pending (a) By Minors (CIVIL CODE, art. 1327)
against him; (b) By Insane unless he/she acted during a lucid
iii. Sale upon credit by an insolvent debtor; interval (CIVIL CODE, art. 1327 & 1328)
iv. Evidence of indebtedness or complete (c) By Deaf mute who can’t read or write (CIVIL
insolvency; CODE, art. 1327)
v. Transfer of all his property by a debtor when (d) By Persons specially Disqualified: civil
he is financially embarrassed or insolvent; interdiction (CIVIL CODE, art. 1329 & 38)
vi. Transfer made between father and son where (e) In state of Drunkenness (CIVIL CODE, art.
this fact is considered together with the 1328)
preceding circumstances; and (f) In state of hypnotic Spell (CIVIL CODE, art.
vii. Failure of the vendee to take exclusive 1328)
possession of the property (Caltex
Philippines, Inc. v. PNOC Shipping and Mistake
Transport Corporation, G.R. No. 150711, False belief of something which is contrary to the
Aug. 10, 2006) real intention of the parties (ERNESTO L. PINEDA,
The presumption of fraud in case of alienations
by onerous title of a person against whom a Requisites: (CP-SEN)
judgment has been rendered or attachment 1. Refers to the Subject of the thing which is the
issued does not apply to registered lands if the object of the contract
judgment or attachment made is not also 2. Refers to the Nature of the contract
registered. (Lee v. Bangkok Bank, G.R. No. 3. Refers to the principal Conditions in an
173349, Feb. 9, 2011) agreement (ERNESTO L. PINEDA, OBLIGATIONS
4. Error as to Person – When it is the principal
consideration of the contract
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5. Error as to legal Effect – When mistake is former’s special knowledge (CIVIL CODE, art.
mutual and frustrates the real purpose of 1341)
parties (CIVIL CODE, art. 1334)
Fraud by third person – does not vitiate
Violence consent; only action for damages except if there
Serious or irresistible force is employed to wrest is collusion between one party and the third
consent (CIVIL CODE, art. 1335) person, or resulted to substantial mistake, mutual
between parties. (CIVIL CODE, art. 1342)
Intimidation
One party is compelled by a reasonable and well- Causes of Extinction of the Action to Annul
grounded fear of an imminent and grave danger
upon person and property of himself, spouse, 1. Prescription - Period to bring an action for
ascendants or descendants (moral coercion) Annulment
(a) Intimidation, violence, undue
Undue Influence influence – 4 years from time defect of
Person takes improper advantage of his power consent ceases
over will of another depriving latter of reasonable (b) Mistake, fraud – 4 years from time of
freedom of choice (CIVIL CODE, art. 1337) discovery
(c) Incapacity - From time guardianship
The doctrine on reluctant consent provides that ceases (CIVIL CODE, art. 1391)
a contract is still valid even if one of the parties
entered it against his wishes or even against his Discovery of fraud must be reckoned to have
better judgment. Contracts are also valid even taken place from the time the document was
though they are entered into by one of the parties registered in the office of the register of deeds.
without hope of advantage or profit. (Martinez v. Registration constitutes constructive notice to the
HSBC, G.R. No. L-5496, Feb. 19, 1910) whole world (Carantes v. CA, G.R. No. L-33360,
Apr. 25, 1977).
Fraud
Thru insidious words or machinations of one of 2. Ratification
the contracting parties, the other is induced to
enter into a contract without which he will not Requisites: (Wack)
enter it (dolo causante). (Samson v. CA, G.R. No. (a) Knowledge of reason rendering contract
108245, Nov. 25, 1994) voidable (CIVIL CODE, art. 1393)
(b) Such reason must have Ceased (CIVIL
Kinds of Fraud in the Performance of CODE, art. 1393). Except in case of
Obligations or Contracts ratification effected by the guardian to
(a) Causal Fraud (dolo causante) contracts entered into by an
(b) Incidental Fraud (dolo incidente) incapacitated (CIVIL CODE, art. 1394)
(c) Tolerated Fraud – includes minimizing the (c) The injured party must have executed an
defects of the thing, exaggeration of its good act which expressly or impliedly conveys
qualities and giving it qualities it does not an intention to Waive his right (CIVIL
have; lawful misrepresentation (CIVIL CODE, CODE, art. 1393)
art. 1340)
Even assuming that petitioner’s
Note: misrepresentation consists of fraud which
Expression of an opinion – not fraud unless could be a ground for annulling their Contract
made by expert and other party relied on the to Sell, respondent’s act of affixing her
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signature to the said Contract, after having (c) Curable by Acknowledgment – Failure to
acquired knowledge of the property's actual comply with Statute of Frauds. (CIVIL CODE,
location, can be construed as an implied art. 1405)
ratification thereof.
Statute of Frauds
Implied ratification may take diverse forms, (a) Agreement to be performed within a year
such as by silence or acquiescence; by acts after making contract
showing approval or adoption of the contract; (b) Special promise to answer for debt, default or
or by acceptance and retention of benefits miscarriage of another
flowing therefrom. (ECE Realty v. Mandap, (c) Agreement made in consideration of promise
G.R. No. 196182, Sept. 1, 2014) to marry
(d) Agreement for sale of goods, chattels or
3. Loss of the Thing which is the object of the things in action at price not less than 500;
contract through fraud or fault of the person exception: auction when recorded sale in
who is entitled to annul the contract. (CIVIL sales book
CODE, art. 1401) (e) Agreement for lease of property for more than
Note: If the object is lost through a fortuitous one year and sale of real property regardless
event, the contract can still be annulled, but of price
the person obliged to return the same can be (f) Representation as to credit of another (CIVIL
held liable only for the value of the thing at the CODE, art. 1403 (2))
time of the loss, but without interest thereon.
(4 ARTURO M. TOLENTINO, COMMENTARIES AND Two Ways of Curing Unenforceable Contracts
JURISPRUDENCE ON THE CIVIL CODE OF THE (a) Failure of defendant to object in time, to
PHILIPPINES 614 (1991)) the presentation of parole evidence in court,
the defect of unenforceability is cured
Ratification cleanses the contract of its (b) Acceptance of benefits under the
defects from the moment it was constituted. contract. If there is performance in either
(CIVIL CODE, art. 1396) part and there is acceptance of performance,
it takes it out of unenforceable contracts; also
III. UNENFORCEABLE CONTRACTS estoppel sets in by accepting performance,
the defect is waived. (CIVIL CODE, art. 1405)
Definition
They are valid but the execution cannot be Note: The contracts/agreements under the
compelled unless ratified; extrinsic defect; Statute of Frauds require that the same be
produce legal effects only after ratified. evidenced by some note or memorandum or
writing, subscribed by the party charged or by his
Kinds: (URA) agent, otherwise, the said contracts shall be
(a) Unauthorized or no sufficient authority – unenforceable. (CIVIL CODE, art. 1403)
Entered into in the name of another when:
(CIVIL CODE, art. 1404) The Statute of Frauds applies only to executory
i. No authority conferred (CIVIL CODE, art. contracts, not to those that are partially or
1317) completely fulfilled. (Carbonnel v. Poncio, G.R.
ii. In excess of authority conferred (ultra No. L-11231, May 12, 1958)
vires) (CIVIL CODE, art. 1317)
(b) Curable by Ratification – Both parties
incapable of giving consent (2 minor or 2
insane persons) (CIVIL CODE, art. 1407)
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IV. VOID OR INEXISTENT CONTRACTS ones) – essential formalities are not complied
with. Example: Donation propter nuptias –
Definition Should conform to formalities of a donation to
These contracts have no legal effect (Modina v. be valid)
CA, G.R. No. 109355, Oct. 29, 1999) (b) Those which are absolutely simulated or
fictitious – no cause. An absolutely
Characteristics: simulated or fictitious contract is void, and the
parties may recover from each other what
1. It produces no effect whatsoever either
they may have given under the contract. In
against or in favor of anyone; (Modina v. CA,
absolute simulation, there is a colorable
G.R. No. 109355, Oct. 29, 1999)
contract but it has no substance as the
2. There is no action for annulment necessary
parties have no intention to be bound by it.
as such is ipso jure. A judicial declaration to
(Heirs of Dr. Mario S. Intac and Angelina
that effect is merely a declaration;
Mendoza-Intac v. CA, G.R. 173211, Oct. 11,
3. It cannot be confirmed, ratified or cured;
2012).
(c) Those which cause or object did not exist
NOTE: Assuming that the nullified ...
at the time of the transaction – no
resolutions may be deemed as contracts, we
cause/object. This refers to a contract whose
declared in our [previous ruling] that the
cause or object could not have existed or
infirmity in the nullified ... resolutions did not
could not come into existence at the time of
stem from the absence of consent or
the transaction. (RUBEN F. BALANE, JOTTINGS
authority, which would have made them
AND JURISPRUDENCE IN CIVIL LAW
unenforceable contracts under Article 1401
(OBLIGATIONS AND CONTRACTS) 778 (2020))
(1) of the Civil Code. The infirmity comes from
(d) Those whose object is outside the
the failure of the NPC to comply with the
commerce of man – no object
requirements set forth in the EPIRA.
(e) Those which contemplate an impossible
service – no object
On this basis, they cannot be classified as an
(f) Those which intention of parties relative to
unenforceable contract under Article 1403 (1)
principal object of the contract cannot be
of the Civil Code, but as void contracts under
ascertained
Article 1409 (7) of the Civil Code for being
(g) Those expressly prohibited or declared
"expressly prohibited or declared void by
void by law – Contracts w/c violate any legal
law." The last paragraph of Article 1409 of the
provision, whether it amounts to a crime or
Civil Code expressly provides that void
not
contracts cannot be ratified. (NPC DAMA v.
(h) Those whose cause, object or purpose is
NPC, G.R. No. 156208, June 30, 2014)
contrary to law, morals, good customs,
4. If performed, restoration is in order, except if
public order or public policy. Example:
pari delicto will apply; (CIVIL CODE, art. 1411
Contract to sell marijuana
& 1412)
5. The right to set up the defense of nullity
Other void contracts:
cannot be waived; (CIVIL CODE, art. 1409)
(a) Pactum Commissorium (CIVIL CODE, art.
6. Imprescriptible (CIVIL CODE, art. 1410); and
2088, 2130, 1390)
7. Anyone may invoke the nullity of the contract
whenever its juridical effects are asserted
Elements: (MAp)
against him (CIVIL CODE, art. 1421)
i. There should be a property Mortgaged by
way of security for the payment of the
Kinds of void contract: (CIVIL CODE, art. 1409)
principal obligation.
(a) Those lacking in essential elements: No
ii. There should be a stipulation for
consent, no object, no cause (inexistent
automatic Appropriation by the creditor
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of the thing mortgaged in case of non-

payment of the principal obligation within Exception: If purpose has not yet been
the stipulated period. (Development accomplished and if damage has not been
Bank of the Philippines v. CA, G.R. No. caused to any 3rd person.
118342, Jan. 5, 1998)
(b) Pactum De Non Alienando (CIVIL CODE, art. Other exceptions:

2130) i. Payment of usurious interest. (CIVIL CODE,
• A stipulation forbidding the owner from art. 1413)
alienating the immovable mortgaged ii. Payment of money or delivery of property for
shall be void. an illegal purpose, where the party who paid
• It is a clause in a mortgage giving the or delivered repudiates the contract before
mortgagee the right to foreclose by the purpose has been accomplished, or
executory process directed solely against before any damage has been caused to a
the mortgagor and giving him or her the third person. (CIVIL CODE, art. 1414)
right to seize and sell the mortgaged iii. Payment of money or delivery of property
property, regardless of any subsequent made by an incapacitated person. (CIVIL
alienations. CODE, art. 1415)
iv. Agreement or contract which is not illegal per
(c) Pactum Leonina (CIVIL CODE, art. 1799) se and the prohibition is designed for the
• A stipulation which excludes one or more protection of the plaintiff. (CIVIL CODE, art.
partners from any share in profit or loss is 1416)
void. v. Payment of any amount in excess of the
maximum price of any article or commodity
Illegal Contracts fixed by law or regulation by competent
authority. (CIVIL CODE, art. 1417)
Pari Delicto Doctrine vi. Contract whereby a laborer undertakes to
General Rule: work longer than the maximum number of
• Both parties are guilty, no action against hours fixed by law (CIVIL CODE, art. 1418 &
each other; (CIVIL CODE, art. 1412) 1419)
• Those who come in equity must come vii. One who lost in gambling because of
with clean hands; (Department of Public fraudulent schemes practiced on him is
Works and Highways v. Quiwa, G.R. No. allowed to recover his losses (REVISED PENAL
183444, Feb. 8, 2012) CODE, art. 313) even if gambling is prohibited.
• Applies only to illegal contracts and not to
inexistent contracts; Requisites of Illegal Contracts:
• Does not apply when a superior public 1. Contract is for an illegal purpose;
policy intervenes. 2. Contract must be repudiated by any of the
parties before purpose is accomplished or
The Clean Hands Doctrine states that “a litigant damage is caused to third parties; and
may be denied relief by a court of equity on the 3. Court believes that public interest will be
ground that his conduct has been inequitable, served by allowing recovery (discretionary
unfair and dishonest, or fraudulent, or deceitful as upon the court).
to the controversy in issue.” Bad faith and fraud • Based on remorse;
are allegations of fact that demand clear and • Illegality is accomplished when
convincing proof. (Department of Public Works parties entered into contract;
and Highways v. Quiwa, G.R. No.183444, Feb. 8, • Before it takes effect – Party which is
2012) remorseful prevents it.
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contract to subterfuge the illegality. The legal

Where laws are issued to protect certain proscription in such an instance will be easily
sectors: consumer protection, labor, and rendered nugatory and meaningless to the
usury law prejudice of the general public.” (Gonzalo v.
(a) Consumer Protection – If price of Tarnate, G.R. No. 160600, Jan. 15, 2014)
commodity is determined by statute, any
person paying an amount in excess of the Mutual restitution in void contracts
maximum price allowed may recover such General rule: Parties should return to each other
excess. (CIVIL CODE, art. 1417) what they have given by virtue of the void contract
(b) Labor – If the law sets the minimum wage for in case
laborers, any laborer who agreed to receive
less may still be entitled to recover the Where nullity arose from defect in essential
deficiency; if the law sets max working hours elements
and laborer who undertakes to work longer 1. Return object of contract and fruits
may demand additional compensation. (CIVIL 2. Return price plus interest
CODE, art. 1418 & 1419)
(c) Interest paid in excess of the interest allowed Exception: No recovery can be had in cases
by the usury law may be recovered by debtor where nullity of contract arose from illegality of
with interest from date of payment. (CIVIL contract where parties are in pari delicto. (CIVIL
CODE, art. 1413) CODE, art. 1412)
Effects of illegal contracts Exceptions to the exception:

1. If one party is incapacitated, courts may allow 1. When incapacitated – Not obliged to return
recovery of money, property delivered by what he gave but may recover what he has
incapacitated person in the interest of justice. given
(CIVIL CODE, art. 1415) 2. Other party is less guilty or not guilty. (CIVIL
• Pari delicto doctrine cannot apply CODE, art. 1412)
because an incapacitated person does
not know what he is entering into and is V. DISTINGUISH: RESOLUTION AND
unable to understand the consequences RESCISSION OF CONTRACTS
of his own action.
Similarity and distinction between resolution
2. If agreement is not illegal per se but merely or cancellation in Art. 1191; and rescission in
prohibited and prohibition is designated for Art. 1383-84
the protection of the plaintiff – may recover
what he has paid or delivered by virtue of Similarity: Both apply to valid contracts (Cannot
public policy. (CIVIL CODE, art. 1416) cancel/rescind invalid contracts because there is
nothing to cancel or rescind). Both also require
3. If a subsequent contract results directly mutual restitution. (EDGARDO L. PARAS, CIVIL
because of a previous illegal contract, the CODE OF THE PHILIPPINES ANNOTATED:
subsequent contract is also void and PRESCRIPTION; OBLIGATIONS AND CONTRACTS 735
inexistent. “The illegality of the Sub-Contract (2016))
Agreement necessarily affects the [resulting]
Deed of Assignment because the rule is that Mutual restitution is required in cases of
an illegal agreement cannot give birth to a resolution/cancellation under Art. 1191 so as to
valid contract. To rule otherwise is to sanction bring the parties back to their original
the act of entering into transaction the object situation, prior to the inception of the contract.
of which is expressly prohibited by law and
thereafter execute an apparently valid
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(Forest Hills Golf & Country Club v. Vertex Sales cases where one of the obligors should fail to
and Trading Inc., G.R. No. 202205, Mar. 6, 2013) comply with what is incumbent upon him.
Otherwise stated, an aggrieved party is not
Distinction: (Suria v. IAC, G.R. No. 73893, June prevented from extrajudicially rescinding a
30, 1987) contract to protect its interests, even in the
(a) Art. 1191 applies only to reciprocal absence of any provision expressly providing for
obligations, i.e., those that arise from the such right. (Nissan Car Lease v. Lica
same cause, and which each party is a debtor Management, Jan. 13, 2016)
and creditor of each other. Performance by
one is a condition to performance by the other The law definitely does not require that the
party. If one party is unable to perform his contracting party who believes itself injured must
obligation, the other can ask for resolution as first file suit and wait for a judgment before taking
a remedy for the breach. Since this is based extrajudicial steps to protect its interest.
on breach of contract, it is a principal action. Otherwise, the party injured by the other's breach
will have to passively sit and watch its damages
On the other hand, Art. 1383 is a subsidiary accumulate during the pendency of the suit until
action which is based on lesion or fraud of the final judgment of rescission is rendered when
creditors (Wellex Group v. U-Land Airlines, the law itself requires that he should exercise due
Jan. 14, 2015). diligence to minimize its own damages. (U.P. v.
delos Angeles, Sept. 29, 1970
(b) Resolution or cancellation in Art. 1191 is
predicated on breach, and not on injury to Whether a contract provides for it or not, the
economic interests of a party, that violates remedy of rescission is always available as a
the reciprocity between the parties. remedy against a defaulting party. When done
without prior judicial imprimatur, however, it may
(c) The operation of Arts.1383 and 1384 is still be subject to a possible court review. (Nissan
limited to the cases of rescission for lesion Car Lease v. Lica Management, Jan. 13, 2016)
enumerated in Article 1381 of the Civil Code
of the Philippines and does not apply to cases ————- end of topic ————-
under Article 1191.
Art. 1191 does not apply to a Contract to Sell NATURAL OBIGATIONS

where the condition is breached. Payment is the
condition in a Contract to Sell and if full payment Natural obligations, not being based on positive
is not made, it is breach of the condition. Art. law but on equity and natural law, do not grant a
1191 refers to an existing obligation and what right of action to enforce their performance, but
is breached is the obligation, not the after voluntary fulfillment by the obligor, they
condition. (Rivera v. Del Rosario, G.R. No. authorize the retention of what has been
144934, Jan. 15, 2004) delivered or rendered by reason thereof. (CIVIL
CODE, art. 1423)
A party may not extrajudicially rescind a
contract without a specific stipulation in the Examples of natural obligations enumerated
contract authorizing extrajudicial rescission. under the Civil Code:
The party needs to file an action for rescission i. Performance after the civil obligation has
under Art. 1191. (Eds Manufacturing, v. prescribed
Healthcheck International, Inc., Oct. 9, 2013) ii. Reimbursement of a third person for a debt
that has prescribed
But see: Art. 1191 provides that the power to
rescind is implied in reciprocal obligations, in
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iii. Restitution by minor after annulment of 2. Intention or at least the expectation, that
contract such conduct shall be acted upon, or
iv. Delivery by minor of money or fungible thing influence, the other party or other
in fulfillment of obligation persons;
v. Performance after action to enforce civil 3. Knowledge, actual or constructive, of the
obligation has failed real facts
vi. Payment by heir of debt exceeding value of
property inherited B. As related to the party claiming the
vii. Payment of legacy after will has been estoppel (IRA)
declared void. (CIVIL CODE, art. 1423-1430) 1. Ignorance or lack of knowledge and of
the means of knowledge of the truth as to
the facts in question
————- end of topic ————- 2. Reliance in good faith, upon the conduct
or statement of the party to be estopped;
and
ESTOPPEL 3. Action or inaction based thereon of such
a character as to change the position or
Estoppel – a condition or state by virtue of which status of the party claiming the estoppel,
an admission or representation is rendered to his injury, detriment, or prejudice.
conclusive upon the person making it and cannot (Manila International Airport Authority v.
be denied or disproved as against the person Ding Velayo Sports Center, Inc., G.R.
relying thereon. (CIVIL CODE, art. 1431) No. 161718, Dec. 14, 2011)
Estoppel is effective only between the parties Requisites of estoppel by laches (CLID)
thereto or their successors in interest. (CIVIL 1. Conduct on the part of the defendant, or of
CODE, art. 1439) one under whom he claims, giving rise to the
situation of which complaint is made;
Kinds: 2. Delay in asserting the complainant’s right, the
1. Estoppel in pais (by conduct) complainant having had knowledge or notice
(a) Estoppel by silence of the defendant’s conduct and having been
(b) Estoppel by acceptance of benefits afforded an opportunity to sue; actual
2. Technical estoppel knowledge of the commission of the adverse
(a) Estoppel by deed act is not necessary, it being enough that
(b) Estoppel by record such knowledge may be imputed to the
(c) Estoppel by judgment complainant because of circumstances of
(d) Estoppel by laches which he was cognizant;
3. Lack of knowledge or notice on the part of the
Requisites of estoppel in pais defendant that the complainant would assert
the right on which he bases his suit; and
A. As related to the party to be estopped
4. Injury or prejudice to the defendant in the
(CIK)
event relief is accorded to the complainant, or
1. Conduct which amounts to a false the suit is not held to be barred. (Cimafranca
representation or concealment of v. IAC, G.R. No. L-68687, Jan. 31, 1987)
material facts, or at least which is
calculated to convey the impression that
the facts are otherwise than, and ————- end of topic ————-
inconsistent with those which the party
subsequently attempts to assert;
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SPECIAL
CONTRACTS
Civil Law
ATENEO CENTRAL
A. SALES
SPECIAL CONTRACTS
I. GENERAL PROVISIONS
Contract of Sale
TOPIC OUTLINE UNDER THE SYLLABUS:
It is a contract where one of the contracting
parties (Seller) obligates himself to transfer the
A. SALES
ownership and to deliver a determinate thing, and
I. General provisions
II. Parties the other party (Buyer) to pay a price certain in
III. Obligations of the vendor money or its equivalent. A contract of sale may be
IV. Obligations of the vendee absolute or conditional. (Art. 1458)
V. Transfer of ownership Elements of a Contract of Sale: (CSP)
VI. Risk of loss 1. Consent
VII. Documents of title 2. Determinate or Determinable Subject Matter
VIII. Warranties
3. Price certain in money or its equivalent
IX. Breach of contract
X. Performance of contract (Coronel v. CA, G.R. No. 103577, 1996)
XI. Extinguishment
The absence of any essential elements negates
B. TRUSTS the existence of a perfected contract of sale.
(Dizon v. CA, G.R. 122544, 1999)
C. AGENCY Characteristics of Contract of Sale: (NOC-
PCBR)
D. COMPROMISE 1. Nominate
2. Onerous
E. LOAN 3. Consensual
I. Loan 4. Principal
II. Commodatum 5. Commutative
III. Simple loan 6. Bilateral
IV. Interests on loan 7. Reciprocal
a. Conventional interest
b. Interest on interest
FORMALITIES OF CONTRACT
c. Compensatory, penalty or
indemnity interest
Form not important in validity of sale
d. Finance charges
GR: Sale being consensual, may be oral or
e. Usury
written, perfected by mere consent as to price and
subject matter (Art. 1475)
F. DEPOSIT
Non-compliance with the formal requirements
does not affect the validity of contract (Fule v. CA,
G. LEASE
G.R. No. L-40502 & L-42607, 1976)
When Form is Important for Validity;

Exception by Specific Provision of Law;
1. Donations and wills (Arts. 749, 804)
2. Power to sell a piece of land granted to an
agent must be in writing– otherwise sale is
VOID (Art. 1874)
3. Sale of large cattle; must also be registered
with Municipal treasurer – otherwise VOID
(Art. 1581; Revised Administrative Code,
Sec. 529)
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4. Sale of land by non-Christian if not approved 4. E-commerce: When sales are effected
by Governor – VOID (Tac-an v. CA, G.R. No. through electronic commerce (R.A. 8792,
L-38736, 1984) Sec. 12)
Article 1358, which requires the embodiment of While a sale of land appearing in a private deed
certain contracts in a public instrument, is only for is binding between the parties, it cannot be
convenience, and registration of the instrument considered binding on third persons if not
embodied in a public instrument and recorded in
only adversely affects third parties. Formal
the Registry of Deeds. (Secuya v. Vda. De Selma,
requirements are, therefore, for the benefit of G.R. No. 136021, 2000)
third parties; and non-compliance therewith does
not adversely affect the validity of the contract
and the rights and obligations of the parties
thereunder. (Dalion v. CA, 182 SCRA 872,1990)
Statute of Frauds
Note that if particular form is required under the
statute of frauds and the same is not followed:
• While the sale is valid, it is
UNENFORCEABLE even as to the parties to
the contract of sale.
When Form (should be in writing and not

merely verbal) is Important for Enforceability
[Statute of Frauds](Art. 1403 [2])
1. A contract not to be performed in 1 year: A
sale agreement which by its terms is not to be
performed within a year from the making
thereof;
2. Php 500 and Above: An agreement for the
sale of goods, chattels or things in action, at
a price not less than PhP500
3. Sale of Land: A sale of real property or of an
interest therein.
Exceptions to Coverage of Statute in Sales

Contracts:
1. Written: When there is a note or
memorandum in writing and subscribed to by
party or his agent (contains essential terms of
the contract) (Art. 1403)
2. Partial Execution: When there has been
partial performance/execution (seller delivers
with intent to transfer title/receives price; or
when buyer partially pays the price) (Art.
1405)
3. Failure to object: When there has been
failure to object to presentation of evidence
(oral) (Art. 1405)
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CONTRACT OF SALE CONTRACT TO SELL

TRANSFER OF TITLE
Title passes to the buyer Ownership is reserved in the seller and shall not pass to the purchaser until
upon delivery of the thing fulfillment of certain conditions, such as full payment of the purchase price.
sold (Art. 1477) (Art. 1478)
OWNERSHIP OF THE SELLER
The seller has lost and
Title remains in the seller if the buyer does not comply with the condition
cannot recover ownership of
precedent, which payment of the price at the time specified in the contract.
the thing sold and delivered
(Tuazon v. Garilao, G.R. No. 143673, 2001)
(Arts. 1477, 1496) until and
unless the contract of sale
NOTE: It must be stipulated that ownership in the thing shall not pass to the
itself is resolved and set
buyer until full payment of the price. (Art. 1478)
aside.
PAYMENT OF THE PRICE
Full payment of the price is a positive suspensive condition, the failure of
Non-payment of the price is which is not a breach of contract but simply an event that prevents the
a negative resolutory obligation of the seller to convey title to the buyer. (Uy& Sons, Inc. v.
condition. (Art. 1179) Valbueco Inc., G.R. No. 179594, 2013)
The non-payment of the purchase price renders the contract to sell without
force and effect. (Tumibay v. Lopez, G.R. No. 171692, 2013)
REMEDIES
Specific performance cannot be availed of when the contract to sell has
been cancelled due to the non-payment of the purchase price. The buyer
cannot demand the seller to convey title when such buyer did not pay the
price, and the seller cannot demand the buyer to pay the price, since failure
Specific performance or to pay resulted in the cancellation of the contract to sell. (Pilipino Telephone
rescission under Articles Corporation v. Radiomarine Network Phils. Inc., G.R. No. 160322, 2011)
1191, 1592, and 1593. Remedy of rescission is not available because the breach contemplated in
rescission of contracts is the obligor’s failure to comply with an obligation
already extant, not a failure of a condition to render binding that obligation.
A non-existent obligation cannot be subject of rescission. (Diego v. Diego,
G.R. No. 179965, 2013)
(De Leon, Comments and Cases on Sales and Lease, 21-23, 2014)
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FORMATION OF THE CONTRACT NOTE: There is no presumption of consideration,
Three Stages in Life of a Contract of Sale it needs to be proven (Sanchez v. Rigos, G.R. No.
1. Policitacion/Negotiation Stage – offer L-25494, 1972)
floated, acceptance is floated but they do not
meet; covers the period when parties indicate Option-an unaccepted or unexercised
their interest but no concurrence of offer and contractual offer (Adelfa Properties v. CA, G.R.
acceptance. No. 111238, 1995)
2. Perfection – the “birth” of the contract,
concurrence of all requisites; meeting of the Elements of Valid Option Contract:
minds upon the object and price. 1. Consent – meeting of the minds
3. Consummation – the “death” of the contract, 2. Subject matter – an option right to an
parties perform their respective undertakings “unaccepted unilateral offer to buy or sell”, or
(Arts. 1475, 1479, 1493-1506; Villanueva & an “accepted promise to sell, or to buy”:
Tiansay, Law on Sales, 118-119, 2016) (a) A determinate or determinable object
(b) For a price certain (including manner of
Rules: payment)
1. Offer is Prior to acceptance, may be 3. Prestation – a consideration separate from
floated withdrawn at will by offeror purchase price for option given, i.e., Option
2. Offer floated Without acceptance, (Villanueva & Tiansay, Law on Sales, 126,
with a period extinguished when period 2016)
has ended and may be
withdrawn at will by offeror; Characteristics of Option Contract: (SPNO-
right to withdraw must not CUUP)
be arbitrary otherwise, 1. Not the contract of sale by itself, Separate
liable to damage under Art. and distinct
19, 20, 21 of Civil Code 2. Nominate
3. Offer floated Extinguished by 3. Principal - but can be attached to other
w/ condition happening/non-happening principal contracts
of condition 4. Onerous
4. Offer floated Continue to be valid 5. Commutative
without period/ depending upon 6. Unilateral – versus contract of sale which is
without circumstances of time, bilateral
condition place and person 7. Preparatory
5. Offer is Original offer is destroyed, 8. Unaccepted or unexercised contractual offer
floated and there is a new offer; cannot
there is go back to original offer Consideration in an option contract may be
counteroffer anything of value, unlike in sale where it must be
6. Offer is No authority of offeror to price certain in money. (San Miguel Philippines v.
floated modify offer Huang, G.R. No. 137290, 2000) However, when
7. Offer Proceed to perfected stage the consideration is not monetary, the
accepted consideration must be clearly specified as such in
absolutely the option contract or clause. When the written
agreement itself does not state the consideration
Option Contract - a contract granting an for the option contract, the offeree bears the
exclusive right in one person, for which he has burden of proving the existence of a separate
paid a separate consideration, to buy a certain consideration for the option. (PNOC v. Keppel
object within an agreed period of time. (Art. 1479) Phils. Holdings, Inc., G.R. No. 202050, 2016)
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How Exercised: Notice of acceptance should be optionee-offeree may not sue for specific
communicated to offeror even without actual performance on the proposed contract since
payment of the option money as long as there is it has not been perfected; however, the
delivery of payment in consummation stage. optioner-offeror is liable for damages for
(Nietes v. CA, G.R. No. L-32873, 1972) breach of the option.
5. In these cases, if the consideration is
intended to be part of the consideration for
Situations in an Option Contract: the main contract with a right of withdrawal on
the part of the optionee, the main contract
1. With separate consideration could be deemed perfected; a similar
• Option contract is valid instance would be an “earnest money” in sale
• Offeror cannot withdraw offer until after that can evidence its perfection. (Ang Yu
expiry period Asuncion v. CA, G.R. No. 109125, 1994)
• Subject to damages for breach of option
contract if offeror withdraws during the Right of First Refusal
time stipulated but not to specific
performance because an option contract A right of first refusal (“RFR”) covers a situation
does not create an obligation to give wherein a promise on the part of the owner of a
(Tuazon v. Del Rosario-Suares, G.R. No. property is made that if he decides to sell the
168325, 2010) property in the future, he will first negotiate its sale
to the promisee.
2. Without separate consideration
Even if the option without separate consideration It creates a promise to enter into a contract of sale
constitute a certain offer, still it must still be in the event the seller decides to sell his/her
exercised within the option period and the property and it has no separate consideration. It
acceptance must still be absolute. (Tuazon v. Del is not subject to specific performance because
Rosario-Suares, G.R. No. 168325, 2010) there is no contractual relationship here and it is
not an obligation to give (not a real contract).
Rules on Option Contract:
1. If the period is not supported by a separate New doctrine: May be subject to specific
consideration, the offeror is still free and has performance in a specific instance.
the right to withdraw the offer before its
acceptance, or, if an acceptance has been The RFR is only subject to specific performance
made, before the offeror’s coming to know of insofar as it is attached to a valid written principal
such fact, by communicating that withdrawal contract (e.g. lease). RFR becomes one of the
to the offeree. considerations in the contract. If RFR is violated,
2. The right to withdraw, however, must not be and property sold to another buyer in bad faith,
exercised whimsically or arbitrarily; the sale to the 3rd party buyer is rescissible. The
otherwise, it could give rise to a damage price for the 3rd party buyer is to be the basis for
claim under Article 19 (Abuse of Rights). the price of the sale back to the one with the RFR.
3. If the period has a separate consideration, a Lessee can exercise the right of first refusal once
contract of “option” is deemed perfected, and the sale to the third party is set aside or
it would be a breach of contract to withdraw rescinded. (Equatorial Dev’t v. Mayfair Theater,
the offer during the agreed period. G.R. No. 106063, 2006)
4. The option is an independent contract in
itself, and it is to be distinguished from the Effect of new doctrine: Turned the world of
proposed sales contract. If the optioner- policitacion upside down because while valid
offeror withdraws the offer before its option contract is not subject to specific
acceptance by the optionee-offeree, the performance, right of first refusal, which does not
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even have a separate consideration, may be A: Z is correct. Implied renewals do not include
subject to specific performance. It recognizes the option to buy, as it is not germane to the
recovery of damage based on abuse of rights lessee's continued use of the property. Based on
doctrine. Article 1643, the lessee's main obligation is to
allow the lessee to enjoy the use of the thing
Only after the optionee fails to exercise his right leased. Other contract stipulations unrelated to
of first priority under the same terms and within this — for instance, the right of ﬁrst refusal —
the period contemplated, could the owner validly cannot be presumed included in the implied
offer to sell the property to a third person under contract renewal. The law itself limits the terms
the same terms as offered to the optionee. that are included in implied renewals. One cannot
(Parañaque Kings v. CA, G.R. No. 111538, 1997) simply presume that all conditions in the original
contract are also revived; after all, a contract is
Option Contract Distinguished from Right of based on the meeting of the minds between
First Refusal parties. (Spouses Manas v Nicolasora, G.R. No.
OPTION CONTRACT RIGHT OF FIRST 208845, February 3, 2020).
REFUSAL
Principal contract; Accessory; cannot
stands on its own stand on its own PERFECTION OF SALES
Needs separate Does not need
consideration separate General Rule: A contract of sale is perfected at
consideration the moment there is a meeting of the minds upon
the thing which is the object of the contract and
Subject matter and There must be
upon the price; consensual contract (Art. 1475)
price must be valid subject matter but
price not important
Exception: When the sale is subject to a
Not conditional Conditional
suspensive condition. (People’s Homesite v. CA,
Not subject to specific Subject to specific
G.R. No. L-61623, 1984)
performance performance
Requirements:
Mutual promise to buy and sell (Art. 1479)
1. When parties are face to face – when there
1. Promise to buy and sell a determinate thing
is absolute acceptance of an offer that is
for a price certain: reciprocally demandable;
certain
2. Accepted unilateral promise to buy or to sell:
2. When thru correspondence or telegram –
binding upon the promissor if promise
when the offeror receives or had knowledge
supported by a consideration distinct from the
of the acceptance (Art. 1319)
price.
3. When the sale is subject to a suspensive
condition – from the moment the condition is
Q: Spouses X & Y entered into a lease
fulfilled (People’s Homesite v. CA, G.R. No.
contract with Z over a property in Tacloban. It
L-61623, 1984)
appears that the Lease Contract lapsed in
2006, with no express renewal. However, the
NOTE: Qualified acceptance is a mere
Spouses X & Y continued using the premises
counteroffer which needs to be absolutely
and paying the rentals, without any objections
accepted to give rise to perfected contract of sale.
from Z. However, in 2008, Z sold several
(Art. 1319; Manila Metal Container v. PNB, G.R.
parcels of land including the land being
No. 166862, 2006)
leased to Spouses X & Y. Spouses X&Y
contend that the right of first refusal was
Business ads are mere invitations to make an
violated; however, Z claims that since the
offer except when it appears to be otherwise. (Art.
contract was only impliedly renewed, first
1325)
refusal does not attach to it. Who is correct?
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EMPTIO REI EMPTIO SPEI
Rules Governing Auction Sales SPERATAE
• Sale is perfected by the fall of the hammer “The purchase of “Purchase of hope”
• Seller has the right to bid at the auction what we hope”
provided such right was reserved and notice Sale of an expected Sale of a hope or
was given to that effect. (Art. 1476) thing/ future thing expectancy that the
thing will come to
In bidding contracts, the award of the contract to existence; sale of the
the bidder is an acceptance of the bidder's offer. hope itself
Its effect is to perfect a contract between the Sale is subject to a Sale is effective even
bidder and the contractor upon notice of the suspensive if the thing does not
award to the bidder. Failure to sign the physical condition—that the come into existence,
contract does not affect the contract's existence thing will exist; if it unless it is a vain
or the obligations arising. (Metro Rail Transit does not, there is no hope (Art. 1461 Sale
Development Corp v. Gammon Phil, G.R. No. contract of a vain hope or
200401, 2018.) expectancy is void)
Uncertainty is with Uncertainty is with
SUBJECT MATTER OF SALE regard to the quantity regard to the
and quality of the existence of the thing
Requisites of a valid subject matter (Arts. thing and not the
1459-1465) existence of the thing
1. Possible Object is a future Object is a present
2. Licit thing, which must be thing which is the
3. Determinate or Determinable determinate or hope or expectancy
specific (not generic)
If requisite not present, resulting contract is E.g. growing crops E.g., lottery ticket
VOID. (Villanueva & Tiansay, Law on Sales, 67-68,
2016)
1. Possible
Existing, having potential of existence, future, or 2. Licit
contingent (Arts. 1347, 1348, 1462) • Not outside the commerce of man (Art. 1459)
(a) Existing goods – goods owned or • If illicit, contract is void
possessed by the seller at the time of • Sale declared illegal by law (i.e., narcotics,
perfection wild birds and mammals, rare wild plants,
(b) Future goods – goods to be manufactured, etc.)
raise, or acquired by the seller after the
perfection of the contract (forward contracts) Prohibited:
(a) Narcotics (RA 6425);
Whether the subject matter is of a type and nature (b) Wild Birds or mammals (R.A. No. 2590); rare
that exists or could be made to exist to allow the wild plants (R.A. No. 3983); poisonous
seller reasonable certainty of being able to plants or fruits (R.A. No. 1288); dynamited
comply with his obligations. fish (R.A. 428);
(c) Gunpowder and explosives (Act No. 2255);
Minimum requirement of potential existence: and firearms and ammunitions (P.D. No, 9);
taking into consideration the state of science and (d) Sale of land by non-Christians (Sec. 145,
technology at the time of perfection of the Administrative Code of 1987)
contract. (e) Animals with contagious diseases (Art.
1575)
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(f) Sale of animals unfit for the use or service (Inchausti & Co. v. Cromwell, G.R. No. L-6584,
for which they were acquired (Art. 1575) 1991)
(g) Sale of future inheritance and other rights
that are not transmissible (Art. 1347) NOTE: Sale is valid when consideration is partly
in money and partly in another thing. (Art. 1468).
3. Determinate or Determinable
REQUISITES FOR A VALID PRICE (ReM-C)
Determinate: always specific 1. Real
• particularly designated or physically 2. In Money or its equivalent
segregated from all others of the same class; 3. Certain or ascertainable (Francisco v.
(Art. 1460) Desierto, G.R. No. 154117, 2009)
Determinable: always generic 1. Real, not simulated

• Thing is capable of being made determinate When at the perfection of the contract of sale,
(Capacity to Segregate Test) there is every intention on the buyer to pay the
• Without the necessity of a new or further price, and every expectation on the part of the
contract between the parties (No Further seller to receive such price as the value of the
Agreement Test). (Art. 1460) subject matter he obligates himself to deliver.
(Test of intention) (Rongavilla v. CA, G.R No.
NOTE: Subject matter CANNOT be 83974, 1998)
DETERMINED BY a 3rd PARTY. (Villanueva &
Tiansay, Law on Sales, 102, 2016) Effect Where Price is Simulated
i. The act may be shown to have been in reality
When Subject Matter is a Right: It must be a donation, or some other act or contract.
transmissible. (Art. 1311) (Art. 1471)
• Future inheritance cannot be sold (Art. 1347) ii. If not, and neither party had any intention
• Service cannot be sold (Art. 1348) whatsoever that the amount will be paid
(absolutely simulated): the sale is void
Quantity of subject matter is not essential for (Rongavilla v. CA, G.R. No. 83974, 1998)
perfection, but quantity is essential if it goes into iii. If there is a real price but what is stated in the
the determinability of the subject matter and the contract is not the one intended to be paid
price or consideration in the contract; Determine (only relatively simulated or what is called
the nature and quality of subject matter (National a “False Price”): the ostensible contract of
Grains Authority v. IAC, G.R. No. 74470, 1989) sale is valid but subject to reformation.
(Macapagal v. Remorin, G.R. No. 158380,
Generic things may be the object of a sale, but 2005)
the obligation to deliver the subject matter can
only be complied with when the subject matter 2. In money or its equivalent
has been made determinate (either by physical Consideration for a valid contract of sale can be
segregation or particular designation) (Yu Tek & the price and other valuable consideration; at the
Co. v. Gonzales, G.R. No. L-9935, 1915) very least, a true contract of sale must have price,
which consist of valuable consideration (i.e.,
PRICE something that can be quantifiable by pesos and
Price centavos) as part of its consideration (Test of
The sum stipulated as the equivalent of the thing value consideration). (Republic v. Phil.
sold and also every incident taken into Resources Dev., G.R. No. L-10141, 1958)
consideration for the fixing of the price, put to the
debit of the vendee and agreed to by him.
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3. Certain or ascertainable Exceptions:
1. When there is fraud, mistake, or undue
Certain: expressed and agreed in terms of influence indicative of a defect in consent
specific pesos and/or centavos (Art. 1469) thereby making the contract voidable. (Art.
1470)
Ascertainable:
i. Set by third persons (Art. 1469) NOTE: Art. 1456 of the CIVIL CODE provides that
ii. Set by the courts – only in cases where the a person acquiring a property through fraud
third person designated to fix the price, fixes becomes an implied trustee of the property’s true
the same in bad faith or by mistake (Art. and lawful owner. This case involved constructive
1469) trust. The action for reconveyance of the title to
iii. Set by reference to a definite day, particular the rightful owner prescribes in 10 years from the
exchange or market (Art. 1472) issuance of the title. This ten-year prescriptive
iv. Set by reference to another thing certain period begins to run from the date the adverse
(Art. 1472) party repudiates the implied trust, which
v. But never by only one party to the contract repudiation takes place when the adverse party
of sale as it amounts to a potestative registers the land. (Spouses Aboitiz v. Spouses
condition (unless the price is accepted by the Po, G.R. Nos. 208450 & 208497, 2017)
other party) (Art. 1473)
2. When it shows that the parties really intended
NOTE: When the 3rdparty is unwilling to set the a donation or some other act or contract
price, the parties may not ask the court to fix the thereby making the contract of sale void but
price because the condition imposed on the may be valid as a contract of donation or
contract has not happened yet and thus, no some other contract. (Art. 1470)
enforceable contract has arisen. (Art. 1474) 3. In Judicial Sale, where the inadequacy is
shocking to the conscience of man (Pascua
IF PRICE IS NEITHER CERTAIN NOR v. Heirs of Simeon, G.R. No. L-47717, 1988)
ASCERTAINABLE: The contract of sale is and there is showing that, in the event of
inefficacious. resale, a better price can be obtained, the
contract of sale is void. (Bie v. CA, G.R. No.
Effect of Non-Payment of Price L-17294, 1965)
Non-payment of price does not cancel or avoid
the sale, as the sale is still considered perfected. NOTE: If there was a failure of the contract to set
But it is a cause for either: a price but the buyer has already appropriated
(a) Specific performance or it, then the buyer must pay a reasonable price.
(b) Rescission. (Heirs of Escanlar v. CA, G.R. (Art. 1474)
No. 119777, 1997)
MANNER OF PAYMENT MUST BE AGREED
HOW PRICE IS DETERMINED UPON
Price is determined by the contracting parties. The manner of payment must be agreed upon.
(Art. 1473) (Marnelego v. Banco Filipino Savings and
Mortgage Bank, G.R. No. 161524, 2006)
INADEQUACY OF PRICE
It is an essential ingredient before a valid and
Effect of Gross Inadequacy of Price binding contract of sale can be said to exist,
General Rule: Mere inadequacy of the price because it is part of the prestation of the contract.
does not affect the validity of the sale. (Bautista (Sps. Navarra v. Planters Development Bank,
v. CA, G.R. No. 158015, 2004) G.R. No. 172674, 2007)
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EARNEST v. OPTION MONEY 1390), subject to annulment or ratification. (Art.
Earnest Money (Art. 1482) 1393)
• Money given as part of purchase price
• Acceptance is the proof that contract of sale ABSOLUTE INCAPACITY
exists Parties Disqualified to Enter into Sale
• Nothing in law prevents parties from treating Contract:
earnest money differently 1. Minors (Art. 1327)
2. Insane and Demented Persons (Art. 1327)
Absent proof of a clear agreement to the contrary, 3. Deaf-Mutes who do not know how to write
it is intended to be forfeited if the sale does not (Art. 1327)
happen without the seller's fault. The potential Also includes state of drunkenness and
buyer bears the burden of proving that the hypnotic spell (Art. 1328)
earnest money was intended other than as part of
the purchase price and to be forfeited if the sale GR: Status of Contract: Voidable, BUT it is
does not occur without the fault of the seller. subject to annulment or ratification.
(Racelis v. Spouses Javier, G.R. No. 189609,
January 29, 2018). Exception: Where necessaries are sold and
delivered to minors or other persons without
Qualification: if old concept is stipulated – valid capacity to act, he must still pay a reasonable
• Presumption of perfection of contract of sale price therefore, thus, the resulting contract is valid
and such earnest money as part of purchase and not voidable. (Art. 1489)
price is disputable
RELATIVE INCAPACITY
Option Money Distinguished from Earnest
Money 1. Spouses - A spouse may, without the consent
OPTION MONEY EARNEST MONEY of the other spouse, enter into sales transactions
Given as distinct Given as part of the in the regular pursuit of their profession, vocation,
consideration for an purchase price or trade. (Family Code, Arts. 73, 96, 124)
option contract
Applies to a sale that Applies when there is General Rule: The husband and the wife cannot
is not perfected already a sale sell property to each other. The contract is void.
When given, buyer is When given, buyer is There is no transfer of ownership, thus the
not required to buy bound to pay the creditors may go after the property. (Modina v.
balance CA, G.R. No. 109355, 1999)
(Oesmer v. Paraiso Development Corporation,
Exceptions:
G.R. No. 157493, 2007)
(a) When a separation of property was agreed
upon in the marriage settlement (Art. 1490)
————- end of topic————-
(b) When there has been a judicial separation
of property under Art. 191 (Art. 1490)
II. PARTIES
CAPACITY OF PARTIES NOTE: Prohibition likewise applies to common-

General rule: All persons who are authorized in law spouses (Matabuena v. Cervantes, G.R. No.
this Code to obligate themselves may enter into a L-28771, 1971)
contract of sale (Art. 1489); as long as these
persons are with civil capacity. The sale of conjugal property by a spouse without
the other's consent is void. All subsequent
When one of the parties is incapable of giving transferees of the conjugal property acquire no
consent, the contract of sale is voidable (Art. rights whatsoever from the conjugal property's
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unauthorized sale. (Malabanan v. Malabanan, Jr., Any others specially disqualified by law (Art. 1491
G.R. No. 187225, 2019) [6])
2. Others - Trust Relationships NOTE: These contracts are void for public policy.
They cannot be ratified neither can the right to set
Two groups of parties prohibited from up the defense of illegality be waived. (Rubias v.
acquiring by purchase certain properties: Batiller, G.R. No. L-35702, 1973)
(GAAE - PEJJOL) (Art. 1491)
1. Guardian/Agent/Executors and
Administrators III. OBLIGATION OF THE VENDOR
• Direct or indirect
• May be “ratified” since only private Obligation of the Vendor
wrong is involved, i.e., really in the The vendor (seller) is bound to transfer the
form of entering into a new contract ownership of and deliver, as well as warrant the
thing which is the object of the sale. (Art. 1495)
2. Public Officers and Employees/ Justices
and Judges/ Officers of Court/ Lawyers Objects that the vendor has to deliver: (Thi-F-
• Cannot be ratified since public wrong A)
is involved 1. The thing sold (Art. 1495)
2. Fruits, belong to the buyer from the day the
Requisites for the prohibition to apply to contract of sale is perfected (Art. 1537)
attorneys and their clients’ properties: 3. Accessions and accessories, in the condition
1. Existence of attorney client relationship; in which they were upon the perfection of the
2. Property is the subject matter in litigation; sale (Art. 1537)
3. While in litigation (from filing of complaint to
final judgment) Obligations of the Vendor
1. Preserve the subject matter – proper
NOTE: Exception to the prohibition against
diligence of a good father of a family unless
attorneys: contingent fee arrangement where
law or parties stipulate another standard (Art.
the amount of legal fees is based on a value of
1163)
property involved in litigation (rationale: the
2. Deliver – transfer ownership and deliver
transfer or assignment of the property takes effect
object (Art. 1495)
only after the finality of a favorable judgment and
3. Deliver fruits and accessories existing from
is always subject to supervision by the court)
the time of perfection (Arts. 1164, 1166,
(Fabillo v. IAC, G.R. No. L-68838, 1991)
1537)
4. Warrant subject matter against eviction and
hidden defects (Arts. 1546-1581)
Legal Status of Contract
General Rule: Seller need not be the owner of
Void (case law) – guardian/executor/public
the subject matter at the time of perfection:
officers/officers of the court. (Rubias v. Batiller,
sufficient that he is the owner at the time of
G.R. No. L-35702, 1973)
delivery. (Art. 1459)
Unenforceable (civil code) – agent; VALID if with

Exception: Foreclosure sale (mortgagor must be
consent (Art. 1491)
absolute owner) (Art. 2085)
SPECIAL DISQUALIFICATIONS
NOTE: A perfected contract of sale cannot be
challenged on the ground of the seller’s non-
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ownership of the thing sold at the time of the 1. Rules on Legal Effects of Sale by a Non-
perfection of the contract. It is at delivery that the owner
law requires the seller to have right to transfer
ownership of the thing sold. (Cavite Development General Rule: If sale is by a non-owner, buyer
Bank v. Sps. Lim, G.R. No. 131679, 2000) acquires no better title than seller had. (Art. 1505)
DELIVERY OF SUBJECT MATTER Exceptions:

1. Owner by his conduct is precluded from
Delivery- “the absolute giving-up of the control denying seller’s authority (Estoppel) (Art.
and custody of the property on the part of the 1434)
vendor, and the assumption of the same by the 2. Contrary is provided for in recording laws
vendee” (Equatorial Realty Dev. v. Mayfair (Art. 1505; P.D. 1529)
Theater, G.R. No. 133879, 2001) 3. Sale is made under statutory power of
sale or under order of a court of
Two Types of Delivery: competent jurisdiction (Art. 1505)
1. Actual- physical delivery 4. Sale is made in a merchant’s store in
2. Constructive accordance with code of commerce and
a. Execution of Public Instrument (Art. 1498) special laws. (Art. 1505)
only produces the effect of delivery when:
i. The thing sold is subject to control of 2. Title as to Movable Properties
seller at the time of execution of
instrument. (Addison v. Felix, G.R. No. General Rule: Possession is equivalent to title
L-12342, 1918); and (Art. 559)
ii. Such control should remain for a
reasonable period after execution of the Requisites:(PG)
Instrument. (Power Commercial and 1. Possession of movable
Industrial Corp. v. CA, G.R. No. 119745, 2. Made in Good faith (Art. 559)
1997)
b. Constitutum Possessorium (Art. 1500) – Exceptions:
the seller held possession of the subject 1. Owner lost movable – owner can recover
matter (real property) in the concept of by reimbursing price, including those
owner, and pursuant to the sale, the seller acquired in public sale or auction,
continues to hold physical possession but provided in good faith (not a fencer) (Art.
no longer in the concept of the owner 559)
(owner to lessee) 2. Owner is unlawfully deprived (stolen or
c. Traditio Brevi Manu – the would-be buyer delivered without intention of
was already in the possession (i.e., as transferring title) – owner can recover
lessee) of the subject matter (real property) w/o reimbursing price (Art. 559)
and pursuant to the sale, he would now 3. Bought in a merchant store – owner
hold possession as owner cannot recover even if unlawfully deprived
d. Traditio Longa Manu – delivery by mere (Art. 1505)
consent or agreement.
Exceptions to the Exceptions:
SALE BY A PERSON NOT THE OWNER AT 1. Movable is bought at public sale – owner
THE TIME OF DELIVERY (Arts. 1462, 1505, can only recover after reimbursing price
1459) 2. Acquired in good faith and for value
from auction
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SALE BY NON-OWNER OR BY ONE HAVING Exceptions to the rule on the effect of sale of
VOIDABLE TITLE a definite portion by a co-owner
1. Subject matter is indivisible in nature or by
1. Perfection Stage intent, hence, entire sale is void; (Mindanao
• Sale by owner – VALID Academy, Inc. v. Yap, G.R. No. L-17681,
• Sale by non-owner – VALID (Arts. 1459, 1965)
1475) 2. Sale of a particular portion of a property is
with consent of other co-owners, sale of
Reason why both sales are valid: ownership is entire property is valid; (Pamplona v.
necessary only at time of delivery; at perfection Moreto, G.R. No. L-33187, 1980)
stage, no obligation on part of seller to transfer 3. Co-owner sells 1 of 2 commonly owned lands
ownership (Villanueva, Law on Sales, 294, 2016) and does not turn over ½ of the proceeds,
other co-owner, by law and equity, has
Law on estoppel further bolsters it: title passes exclusive claim over remaining land.
by operation of law to grantee when person who (Imperial v. CA, G.R. No. 102037, 1996)
is not owner of the goods sold delivers it and later
on acquires title thereto (Art. 1434) E. SALE BY SELLER WITH VOIDABLE TITLE
IN GOOD FAITH and WITHOUT NOTICE OF
Since valid, action to annul is improper; there is THE DEFECT
already a perfected contract.
1. Perfection stage
2. Consummation Stage Valid sale – buyer acquires title of goods
Contract of sale is valid because it has passed
perfected stage, despite seller not being the 2. Consummation stage
owner or seller having no authority to sell Valid sale – if title has not yet been avoided, buyer
• What is void is the transfer of title -- ownership becomes owner of the goods under the condition
did not pass that the sale:
• Effect: buyer acquired no better right than 1. was made in good faith
transferor (Art. 1505) 2. is for value
• Legal effect: CAVEAT EMPTOR – BUYER 3. is without notice of seller’s defect of title (Art.
BEWARE but Buyer always has cause of 1506)
action against the Seller
SALE OF CO-OWNER OF WHOLE PROPERTY IV. OBLIGATION OF THE VENDEE
OR DEFINITE PORTION
There is real or actual delivery of the thing sold
General Rule: when it is placed in the control and possession of
1. Co-owner sells whole property prior to the vendee. (Art. 1497)
partition – sale of property itself is void but
valid as to his spiritual share (Panganiban v. Obligations of Vendee (Buyer)
Oamil, G.R. No. 149313, 2008) 1. Pay the price
2. Co-owner sells definite portion prior to Buyer is obligated to pay the price according to
partition – sale is void as to other co-owner the terms agreed upon regarding time, place and
but valid as to his spiritual share if the buyer amount (Art. 1582)
i. If payment of interest is stipulated – must
would have still bought such spiritual share
had he known that he would not acquire the pay; if amount of interest not mentioned
definite portion sold. (Lopez v. Cuaycong, – apply legal rate
ii. When buyer defaults – constitutes
G.R. No. L-46079, 1944)
breach; subject to specific
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performance/rescission and damages;
interest to be paid also from default Assignment
The owner of a credit transfers to another his
2. Accept delivery of thing sold rights and actions in consideration of a price
Where to accept: certain in money or its equivalent
(a) at time and place stipulated in the contract 1. Transfers the right to collect the full value of
(b) if none specified – at the time and place of the credit, even if he paid a price less than
delivery goods (Art. 1582) such value;
2. Transfers all the accessory rights (e.g.
There is acceptance when: guaranty, mortgage, pledge, preference) (Art.
(a) He intimates to seller that he has accepted 1427);
(b) When delivered and buyer does any act 3. Debtor can set up against the assignee all the
inconsistent with ownership of seller defenses he could have set up against the
(c) Retains without intimating to seller that he assignor.
has rejected (Art. 1585)
Difference from sale
3. Sale of Goods on installment • Technical term but basically a sale
Goods must be delivered in full, except when • Sale of credits and other incorporeal things
stipulated (Art. 1583) (Villanueva, Law on Sales, 524-526, 2016)
When not examined by buyer – not accepted until Effects of assignment

examined or at least had reasonable time to Lack of knowledge or consent of debtor not
examine (Art. 1584) essential for validity but has legal effects
(“meeting of minds” in assignment contemplates
Acceptance of goods in general, absent contrary that between assignor of the credit and his
express stipulation, does not discharge seller assignee) (Rodriguez v. CA, G.R. No. 84220,
from liability in case of breach of warranties 1992)
(unless no notice or failure to give it within
reasonable time) (Art. 1586) Assignment of rights made w/o knowledge of
debtor: Debtor may set up against assignee the
When buyer has a right to refuse goods, no need compensation which would pertain to him against
to return; shall be considered as depositary; assignor of all credits prior to assignment and of
unless there is stipulation to the contrary (Art. later ones until he had knowledge of the
1587) assignment.
————- end of topic————- Debtor has consented to assignment: Cannot

set up against assignee the compensation which
V. TRANSFER OF OWNERSHIP would pertain to him against assignor of all credits
prior to assignment and of later ones until he had
Transfer of ownership knowledge of the assignment
1. By tradition or delivery and not by perfection; • Compensation unless assignor was notified
2. By execution of public instrument because by debtor that he reserved his right to the
intangibles cannot be physically transferred; compensation
3. Without necessity of delivering the document
evidencing the credit. Debtor has knowledge but no consent: may
still set up compensation of debts previous to
NOTE: This rule does not apply to negotiable assignment but not the subsequent ones. (Art.
documents and documents of title which are 1285)
governed by special laws.
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Effect of payment of debtor after assignment ASSIGNMENT OF CREDIT OR INCORPOREAL
of credits RIGHT IN LITIGATION
1. Before Notice of the Assignment – Payment
to the original creditor is valid and debtor Requisites (SPA)
shall be released from his obligation 1. There must be a Sale or assignment of credit
2. After Notice – Payment to the original 2. There must be a Pending litigation
creditor is not valid as against the assignee. 3. The debtor must pay the Assignee:
He may be made to pay again by the i. Price paid by him AND
assignee (Art. 1626) ii. Judicial costs incurred by him AND
iii. Interest on the price from the date of
Warranties of the assignor payment (Art. 1634)
1. NO warranty against hidden defect - N/A
because intangibles have no physical The right must be exercised by the debtor within
existence (Villanueva & Tiansay, Law on 30 days from the date the assignee demands
Sales, 532, 2016) (judicially or extra-judicially) payment from him.
2. He warrants the existence and legality of (Art. 1634)
credit – there is warranty except when
expressly sold as a doubtful account NOTES:
3. NO warranty as to the solvency of debtor Presumption: buyer’s purpose is speculation and
unless it is expressly stipulated OR unless law would rather benefit the debtor of such credits
the insolvency was already existing and of rather than the one who merely speculates for
public knowledge at the time of the profit. (Villanueva, Law on Sales, 533, 2016)
assignment (Art. 1628)
When credit or incorporeal right in litigation is
NOTES: assigned or sold, debtor has a right to extinguish
Warranty shall last for 1 year only (Art. 1629) it by reimbursing the assignee for the price the
buyer paid plus interest (Art. 1634)
One who assigns inheritance right w/o
enumerating rights shall be answerable for his Right to redeem by debtor not available in the
character as an heir (Art. 1630) following instances (not considered
speculative (Art. 1635)
One who sells whole of certain rights for a lump 1. Assignment of credit/incorporeal right to co-
sum, shall be answerable for legitimacy of the heir or co-owner; the law does not favor co-
whole in general but not for each of the various ownership
parts (Art. 1631) 2. Assignment to creditor in payment for his
credit
Breach of warranty: liabilities of the assignor o Presumption is that the assignment is
of credit for violation of his warranties above suspicion; assignment is in the
form of dacion en pago, thus perfectly
Assignor in good faith – Liability is limited to legal
price received, expenses of the contract and 3. Assignment to possessor of tenement or
other legitimate payments made by reason of the piece of land which is subject to the right in
assessment litigation assigned
o Purpose is to presumably preserve the
Assignor in bad faith – Liable ALSO for tenement
(expenses of contract and other legitimate
payments plus useful and necessary expenses) ————- end of topic ————-
damages (Art. 1628)
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VI. RISK OF LOSS VII. DOCUMENT OF TITLE
GENERAL RULE Definition

Legal consequences from point of perfection are "Document of title to goods" includes any bill of
the same in both legal systems: upon perfection lading, dock warrant, "quedan," or warehouse
of an unconditional contract of sale involving receipt or order for the delivery of goods, or any
specific or determinate subject matter, the risk of other document used in the ordinary course of
loss deterioration and the benefits of fruits and business in the sale or transfer of goods, as proof
improvements, were for the account of the of the possession or control of the goods, or
buyer. authorizing or purporting to authorize the
possessor of the document to transfer or receive,
If the subject matter is generic, simply replace either by indorsement or by delivery, goods
item. (Art. 1263) represented by such document.
WHO BEARS RISK OF LOSS/ "Goods" includes all chattels personal but not
DETERIORATION/ FRUITS BEFORE things in action or money of legal tender in the
PERFECTION Philippines. The term includes growing fruits or
• Res perit domino crops.
• The seller is the owner, so he bears risk of
loss. (Art. 1504) "Order" relating to documents of title means an
order by indorsement on the documents.
WHO BEARS RISK OF LOSS/
DETERIORATION/FRUITS AT PERFECTION "Quality of goods" includes their state or
• Res perit domino condition.
• Contract is merely inefficacious because loss
of the subject matter does not affect the "Specific goods" means goods identified and
validity of the sale agreed upon at the time a contract of sale is
• Seller cannot anymore comply with obligation made.
so buyer cannot anymore be compelled to
pay the price. (Arts. 1493, 1494) “Value” – An antecedent or pre-existing claim,
whether for money or not, constitutes "value"
WHO BEARS RISK OF LOSS/ where goods or documents of title are taken
DETERIORATION/ FRUITS AFTER either in satisfaction thereof or as security
PERFECTION BUT BEFORE DELIVERY therefor. (Art. 1636)
• Loss – confused state
o Paras: BUYER Purpose
o Tolentino: SELLER Through a document of title, seller is allowed by
• Deterioration and fruits - Buyer bears loss fiction of law to deal with the goods described
and claims the fruits. (Art. 1538, 1189) therein as though he had physically delivered
them to the buyer; and buyer may take the
AFTER DELIVERY document as though he had actually taken
• Res perit domino possession and control over the goods described
• Delivery extinguishes ownership of the seller therein. (Philippine Trust Co. v. National Bank,
and creates a new one in favor of the buyer G.R. No. 16483, 1921)
and, therefore, buyer bears risk of loss. (Art.
1504)
The warehouse receipt represents the goods,
but the intrustion of the receipt, as stated, is
more than the mere delivery of the goods; it is
a representation that the one to whom the
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possession of the receipt has been so (1) By the owner thereof; or
intrusted has the title to the goods. (Siy Cong
Bieng v. HSBC, G.R. No. L-34655, 1932) (2) By any person to whom the
possession or custody of the document
NEGOTIABLE DOCUMENTS OF TITLE has been entrusted by the owner, if, by
the terms of the document the bailee
a. How Negotiated (Arts. 1508-1509). A issuing the document undertakes to
negotiable document of title may be negotiated by deliver the goods to the order of the
delivery:
person to whom the possession or
custody of the document has been
(1) Where by the terms of the document
entrusted, or if at the time of such
the carrier, warehouseman or other
entrusting the document is in such form
bailee issuing the same undertakes to
that it may be negotiated by delivery.
deliver the goods to the bearer; or
c. Effects Of Negotiation (Art. 1513)

(2) Where by the terms of the document
the carrier, warehouseman or other A person to whom a negotiable document
bailee issuing the same undertakes to of title has been duly negotiated acquires:
deliver the goods to the order of a 1) Such title to the goods as the person
specified person, and such person or a negotiating the document to him had
subsequent indorsee of the document or had ability to convey to a
has indorsed it in blank or to the bearer. purchaser in good faith for value and
also such title to the goods as the
Where by the terms of a negotiable person to whose order the goods
document of title the goods are were to be delivered by the terms of
deliverable to bearer or where a the document had or had ability to
negotiable document of title has been convey to a purchaser in good faith
indorsed in blank or to bearer, any holder for value; and
may indorse the same to himself or to any 2) The direct obligation of the bailee
specified person, and in such case the issuing the document to hold
document shall thereafter be negotiated possession of the goods for him
only by the indorsement of such indorsee according to the terms of the
document as fully as if such bailee
A negotiable document of title may be had contracted directly with him.
negotiated by the indorsement of the (Art. 1513)
person to whose order the goods are by
the terms of the document deliverable. Endorsement and delivery of a negotiable
Such indorsement may be in blank, to quedan operates as the transfer of possession
bearer or to a specified person. If and ownership of the property referred to therein
indorsed to a specified person, it may be and had the effect of divorcing the property
again negotiated by the indorsement of covered therein from the estate of the insolvent
such person in blank, to bearer or to prior to the filing of the petition for insolvency.
another specified person. Subsequent (Philippine Trust Co. v. National Bank, G.R. No.
negotiations may be made in like 16483, 1921).
manner.
b. Who Can Negotiate (Art. 1512) d. Unauthorized Negotiation (Art. 1518) –

A negotiable document of title may be When valid:
negotiated:
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The validity of the negotiation of a negotiable the transferee to the goods and the right
document of title is not impaired by the fact that to acquire the obligation of such bailee
the negotiation was a breach of duty on the part may be defeated by the levy of an
of the person making the negotiation, or by the attachment of execution upon the goods
fact that the owner of the document was deprived by a creditor of the transferor, or by a
of the possession of the same by loss, theft, notification to such bailee by the
fraud, accident, mistake, duress, or conversion, if transferor or a subsequent purchaser
the person to whom the document was from the transferor of a subsequent sale
negotiated or a person to whom the document of the goods by the transferor.
was subsequently negotiated paid value
therefor in good faith without notice of the WARRANTIES OF SELLER THROUGH A
breach of duty, or loss, theft, fraud, accident, DOCUMENTS OF TITLE (ART. 1516)
Persons covered:
mistake, duress or conversion. (Art. 1518)
1. A person who for value negotiates or
transfers a document of title by
As between the owner of a negotiable document indorsement or delivery, unless a
of title who endorsed it in blank and entrusted it to contrary intention appears
a friend, and the holder of such negotiable 2. One who assigns for value a claim
document of title to whom it was negotiated and secured by a document of title, unless a
who received it in good faith and for value, the contrary intention appears
latter is preferred, under the principle that as
between two innocent persons, he who made the Warranties:
loss possible should bear the loss. (Siy Cong 1. GENUINE. That the document is
Bieng v. HSBC, G.R. No. L-34655, 1932) genuine;
2. LEGAL RIGHT. That he has a legal right
to negotiate or transfer it;
NON-NEGOTIABLE DOCUMENTS OF TITLE
3. NO KNOWLEDGE. That he has
a. How Transferred or Assigned (Art. knowledge of no fact which would impair
1514) the validity or worth of the document;
Transferred but not negotiated: 4. RIGHT TO TRANSFER. That he has a
A person to whom a document of title has right to transfer the title to the goods;
been transferred, but not negotiated, acquires 5. GOODS ARE FIT. That the goods are
thereby, as against the transferor, the title to merchantable or fit for a particular
the goods, subject to the terms of any purpose, whenever such warranties
agreement with the transferor. would have been implied if the contract of
the parties had been to transfer without a
Document is non-negotiable: document of title the goods represented
If the document is non-negotiable, such thereby.
person also acquires the right to notify the
bailee who issued the document of the ————- end of topic————-
transfer thereof, and thereby to acquire the
direct obligation of such bailee to hold VIII. WARRANTIES
possession of the goods for him according to
the terms of the document. Warranty Defined
A warranty is a statement or representation made
How title of transferee defeated: by the seller of goods, contemporaneously and as
Prior to the notification to such bailee by part of the contract of sale, having reference to
the transferor or transferee of a non- the character, quality or title of the goods, and by
negotiable document of title, the title of which he promises or undertakes to insure that
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certain facts are or shall be as he then represents Implied Warranty – those which by law
them. (Ang v. CA, G.R. No. 177874, 2008) constitute part of every contract of sale, whether
or not the parties were aware of them.
Two kinds:
a. Express Implied Warranties (Art. 1547) (SESH-RFC)
b. Implied 1. Seller has the right to Sell;
Requisites for Express Warranty 2. Warranty against Eviction;

1. There must be an affirmation of fact or
any promise by the seller; Requisites for warranty to apply:
2. The affirmation of fact or any promise a) Purchaser has been deprived of, or
must be in relation to the thing; evicted from the whole or part of the thing
3. The natural tendency of such affirmation sold;
or promise is to induce the buyer to b) Eviction is by final judgment;
purchase the same; and c) Basis is by virtue of a right existing prior
4. The buyer purchases the thing relying to the sale;
thereon. (Art. 1546) d) Seller has been summoned and made
co-defendant in the suit for eviction at the
Rule on Seller’s Opinion instance of the buyer.
No affirmation of the value of the thing, nor any
statement purporting to be a statement of the Remedies in case warranty violated:
seller's opinion only, shall be construed as a a) return of the value of thing sold;
warranty, unless the seller made such affirmation b) return of income or fruits;
or statement as an expert and it was relied upon c) reimbursement for cost of suit which
by the buyer. (Art. 1546) caused the eviction;
d) reimbursement for expenses of contract;
“Seller’s/Dealer’s Talk” e) damages (if violation in bad faith).
The law allows considerable latitude to seller’s
statements, or dealer’s talk; and experience 3. Warranty against Non-Apparent Servitude
teaches that it is exceedingly risky to accept it at
its face value. The refusal of the seller to warrant Requisites for warranty to apply:
his estimate should have admonished the a) Existence of non-apparent servitude;
purchaser that the estimate was put forth as a b) Servitude is such that buyer would not
mere opinion; and we will not now hold the seller have bought it had it known it existed
to a liability equal to that which would have been
created by a warranty, if one had been given. Warranty not applicable when:
(Songco v. Sellner, G.R. No. L-11513, 1917) a) Servitude is mentioned in the agreement;
b) Servitude is recorded in the Registry of
Caveat Emptor in relation to Dealer’s Talk Deeds, unless there is an express
The caveat emptor rule only requires the warranty that the thing is free from
purchaser to exercise such care and attention as encumbrances.
is usually exercised by ordinarily prudent men in
like business affairs, and only applies to defects Remedies available:
which are open and patent to the service of one If brought within 1 year from execution of
exercising such care. (Guinhawa v. People of the deed: rescission and damages
Philippines, G.R. No. 162822, 2005) If brought after 1 year from execution: only
damages
4. Warranty against Hidden Defects
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Requisites: IX. BREACH OF CONTRACT
a) Defect is hidden;
b) Defect exists at time of perfection; A. REMEDIES OF SELLER IN CASE OF
c) Defect must ordinarily be excluded from MOVABLES
contract;
d) Defect must be important (render the General Remedies:
thing unfit or decrease fitness); 1. Specific Performance with damages; OR
e) Action must be instituted within six 2. Rescission with damages
months from delivery.
(a) When ownership is transferred to the buyer
General Remedies available – the seller may maintain an action against
a) Withdraw from the sale with damages him for the price of the goods, i.e., specific
b) Demand proportionate reduction of the performance (Art. 1595)
price with damages
(b) When there is no transfer of ownership to the
Remedies of thing is lost: buyer
a) If lost due to hidden defect: i. If the goods can be resold for a
• If seller aware – seller bears loss and reasonable price – seller may resell
obliged to return price and refund ii. If the goods cannot be resold – the
expenses of contract and pay damages seller can deliver the goods and if
• If seller unaware – seller must return the buyer refuses, then the seller may
price and interest, reimburse for notify the buyer that the same is being
expenses of the contract but not liable for held by the seller as bailee for the
damages buyer then maintain an action for the
b) If lost due fortuitous event or through fault price, i.e., specific performance.(Art.
of buyer 1595)
5. Warranty against Redhibitory Defects on (c) When price is Payable on Certain Day and
Animals (Read Arts. 1573-1578) Buyer Fails to Pay on the Day Set – the seller
can maintain action for the price, i.e., specific
6. Warranty as to Fitness or Quality of Goods performance (Art. 1595)
In order to enforce the implied warranty that the NOTE: Read Articles 1595-1596 of the Civil Code
goods are reasonably fit and suitable to be used
for the purpose which both parties contemplated, UNPAID SELLER
the following must be established: (a) that the
buyer sustained injury because of the product; (b) A seller of the goods is deemed to be an unpaid
that the injury occurred because the product was seller either:
defective or unreasonably unsafe; and finally (c) (a) When the whole of the price has not been
the defect existed when the product left the hands paid or tendered; or
of the petitioner. (Nutrimix Feeds Corp. v. CA, (b) When the seller received bill of exchange or
G.R. No. 152219, 2004) negotiable instrument as a condition for
payment and the condition has been broken
7. Warranties under the Consumer Protection Act by reason of the dishonor of instrument, the
(R.A. 7394) insolvency of the buyer, or otherwise. (Art.
1592)
Requisites of Unpaid Seller: (PUG)
1. Physical possession is with seller
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2. Seller is Unpaid 1. From the time goods are Delivered to carrier
3. Subject matter – Goods for purpose of transmission to buyer
2. Goods Rejected by buyer and carrier
Special remedies of unpaid seller: (PSRR) continues to possess them (Art. 1531)
1. Possessory lien
2. Stoppage in Transitu When goods no longer in transit
3. Special right of Re-sale (a) Reached point of destination;
4. Special right to Rescind (Art. 1526) (b) Before reaching destination, buyer or his
agent obtains delivery of the goods;
NOTE: Hierarchical Application – only when (c) Goods are supposed to have been delivered
unpaid seller has exercised possessory lien or to buyer but carrier refused;
stoppage in transitu can the seller proceed with (d) Bailee or carrier acknowledges that he is
his other special rights of resale or to rescind. holding the goods for the buyer or his agent.
(Villanueva & Tiansay, Law on Sales, 335, 2016) (Art. 1531)
1. Possessory lien How is right exercised

Seller is not bound to deliver if buyer has not paid 1. Obtain actual possession of goods
him the price. (Art. 1524) 2. Give notice of claim to carrier/bailee in
possession thereof
Right to retain cannot be availed when seller
does not have custody (Art. 1526) NOTE: Notice by seller to buyer is not required;
• Exercisable only in following notice to carrier is what is essential (Art. 1532)
circumstances:(CCI) 3. Special Right to Resell the Goods
(a) Goods sold without stipulation as to Can be exercised under the following
Credit instances:
(b) Goods sold on Credit but term of credit (a) Goods are perishable;
has expired (b) Stipulated the right of resale in case buyer
(c) Buyer becomes Insolvent (Art. 1527) defaults in payment;
• When part of goods delivered, may still (c) Buyer in default on payment of price for
exercise right on goods undelivered unreasonable time. (Art. 1533)
Instances when possessory lien is lost: NOTE: Notice by seller to buyer not essential
1. Seller delivers goods to carrier for
transmission to buyer without reserving Why ‘special’? There are things which seller
ownership in goods or right to possess them cannot do in ordinary sale:
2. Buyer or his agent lawfully obtains 1. Ownership is with buyer but seller can sell
possession of goods goods
3. Waiver (Art. 1529) 2. Title accorded to buyer is destroyed even
4. When he parts with goods (still has stoppage without court intervention (Villanueva &
in transitu) Tiansay, Law on Sales, 342, 2016)
NOTE: Notice by seller to buyer not essential NOTE: In ordinary sale, need to go to court to
destroy transfer of ownership.
2. Stoppage in transitu
• Goods are in transit 4. Special Right to Rescind
• Remedy is available only when buyer is
insolvent (Art. 1526) Can be exercised under the following
instances:
Requisites when goods are in transit (DR) 1. Expressly stipulated
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2. Buyer is in default for unreasonable time buy, when the lessor has deprived the lessee of
(Art. 1534) the possession or enjoyment. (Art. 1485)
Sale on installment: Payment by several partial
NOTE: Notice needed to be given by seller to payments (two or more) in small amount (Levy
buyer. Hermanos, Inc. v. Gervacio, G.R. No. L-46306,
1939)
B. RECTO LAW: SALE OF MOVABLES ON
INSTALLMENT (ARTS. 1484-1486) Rationale of the law: Buyer is lulled into thinking
that he could afford because of small amounts per
Coverage: Sale on installment (two or more installment and at the same time to remedy abuse
installments required) and financing transaction of commercial houses. (Manila Trading and
(Equitable Savings Bank v. Palces, G.R. No. Supply Co. v. Reyes, G.R. No. L-43263, 1935)
214752, 2016) on movable property and
contracts of lease of movable property with option Nature of remedies: Alternative, not cumulative
to purchase (PCI Leasing and Finance v. Giraffe- (Nonato v. IAC, G.R. No. L-67181, 1985)
X Creative Imaging, G.R. No. 142618, 2007)
The fact that the seller did not foreclose the
Contract to sell is not covered. (Visayan Sawmill chattel mortgage constituted on the movable
Co. v. CA, G.R. No. 83851, 1993). purchased on credit, but opted specific
performance, with a plea for a writ of replevin,
does not amount to a foreclosure of the chattel
Rule on Forfeiture of Partial Payments in a mortgage to be covered by Art. 1484.
Contract to Sell (Tajanglangit v. Southern Motors, G.R. No. L-
In a contract to sell, the forfeiture of partial 10789, 1957)
payments may only be valid if there is a
stipulation to that effect, subject to payments of REMEDIES are NOT CUMULATIVE but are
reasonable rents. In a contract to sell, failure to ALTERNATIVE and EXCLUSIVE
fully pay the purchase price results in the
cancellation of the contract, and the parties shall 1. Specific Performance
stand as if the obligation to sell never existed." General Rule: Once chosen, can no longer
(Spouses Godinez v. Spouses Norman, GR No. rescind nor foreclose mortgage.
225449, February 26, 2020, citing Olivarez Realty
Corporation v. Castillo) Exception: After choosing specific performance
but the same becomes impossible, rescission
Remedies available under the Recto Law: may be pursued subsequently. (Villanueva &
In a sale of personal property, the price of which Tiansay, Law on Sales, 352-353, 2016
is payable in installments, the seller may exercise
the following remedies: (REF) 2. Rescission
1. Exact fulfillment of the obligation, should the When chosen, there is a correlative obligation to
buyer fail to pay any installment; restitute.
2. Rescind the sale, should the buyer’s failure to
pay cover two or more installments; Stipulations that installments paid are forfeited
3. Foreclose the chattel mortgage, if one is are valid if not unconscionable.
constituted, should the buyer’s failure to pay
cover two or more installments (Art. 1484) Deemed chosen when:
1. Notice of rescission is sent;
NOTE: This also applies to contracts purporting 2. Takes possession of subject matter of sale;
to be leases of personal property with option to 3. Files action for rescission;
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4. Barring effect on recovery of balance.
(Villanueva & Tiansay, Law on Sales, 353- Excluded:
356, 2016) 1. Industrial real estate
2. Commercial real estate
3. Foreclosure 3. Sale to tenants under agrarian laws (R.A.
Once there has been foreclosure sale, the seller 6552, Sec. 3)
can no longer claim for remaining balance on the
purchase price. (Northern Motors v. Sapinoso, Requisites of Sec. 3 of Maceda Law: (FReT)
G.R. No. L-28074, 1970) 1. Failure to pay installments was due to
reasons, other than failure of the developer to
GR: When foreclosure is chosen, seller can no develop the subdivision or condominium
longer claim all amounts due from the sale, according to the approved plan and to comply
including damages and attorney’s fees. with such within the time limit;
(Macondray & Co. v. Eustaquio, G.R. No. 43683, 2. Only covers Residential lots including
1937) condominium units, excluding, sales to
tenants;
E: In case of Perverse Buyer-Mortgagor, if 3. The buyer has paid at least Two years of
mortgagor refuses to deliver property to effect installments. (R.A. 6552, Sec. 3)
foreclosure, expenses incurred in recovering the
property may also be recovered, i.e., attorney’s Rights of the Buyer under Maceda Law with at
fees, etc. (Filipinas Investment & Finance Corp. least two (2) years of Installment: (R.A. 6552,
v. Ridad, G.R. No. L-27645, 1969) Sec. 3)
1. To pay, without additional interest, the unpaid
C. REMEDIES OF SELLER IN CASE OF SALE installments due within the total grace period
OF IMMOVABLES earned by him. Said grace period is fixed at
the rate of one-month grace period for every
General Remedies one year of installments payments made.
1. Specific Performance with damages; or Thus, here the buyer has at least two months
2. Rescission with damages grace period for he should have paid at least
two years of installments to avail of the rights
Anticipatory Breach under this section.
1. Seller has reasonable grounds to fear loss of NOTE: This right can be exercised only once
immovable sold and its price, sue for in every five (5) years of the life of the contract
Rescission and its extensions, if any.
2. Non–payment of price, sue for Rescission 2. To be refunded the cash surrender value of
(Art. 1591) his payments equal to 50% of his total
payments if the contract is cancelled. But if
D. MACEDA LAW (R.A. 6552) he has paid five years or more, he is entitled
to an increase of 5% every year and so on but
Rationale of the Law the cash surrender value shall not exceed
Public policy to protect buyers of real estate on 90% of his total payments. (McLaughlin v.
installment payments against onerous and CA, G.R. No. L-57552, 1986)
oppressive conditions.
The actual cancellation of the contract
Covered transactions referred to above shall take place only:
Applies to all sale of residential real estate on 1. After 30 days from receipt by the buyer of the
installments including Contracts to Sell and those notarial notice of cancellation or demand for
financed through banking institutions (R.A. 6552, rescission, AND
Sec. 3)
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2. Upon full payment to the buyer of the cash E. REMEDIES OF THE BUYER
surrender value (R.A. 6552, Sec. 3)
NOTE: Buyer may update payment during the 30 Suspension of Payment
day waiting period which will render the General Rule: Buyer may suspend payment in
cancellation ineffective. case:
In the computation of the total number of 1. He is disturbed in the possession or
installment payments the following are included: ownership of the thing acquired;
1. Down payment and 2. He has reasonable grounds to fear such
2. Deposit or option money (R.A. 6552, Sec. 3) disturbance. (Art. 1590)
Rights of the Buyer under Maceda Law with Exception: No right to suspension of payment if
less than two (2) years of installments: (R.A. the seller gives security for the return of the price.
6552, Sec. 4) (Art. 1590)
1. Still has the right to pay within a grace period
of not less than sixty (60) days from the date In case of subdivision or condominium projects,
the installment became due. the buyer may rescind the contract or suspend
2. If the buyer fails to pay the installment due at payment if real estate developer fails to comply
the expiration of the grace period, i.e. 60 with obligation according to approved plan. (P.D.
days, the seller may cancel the contract after 957, Sec. 23)
30 days from receipt by the buyer of the
notice of cancellation or demand for F. REMEDIES IN DOUBLE SALES
rescission of the contract by a notarial act.
NOTE: Here, the buyer is not entitled to any General Rule: FIRST IN TIME, PRIORITY IN
refund RIGHT (Art. 1544)
Other rights granted under the Maceda Law: When general rule does not apply: when not all
(R.A. 6552, Sec. 5 & 6) requisites embodied in Art. 1544 concur.
1. Sell rights to another;
2. Assign the same to another person; Requisites for Double Sales to Exist (VOCS)
3. Reinstate contract by updating during grace 1. That two (or more) sales transactions in the
period and before actual cancellation; issue must pertain to exactly the same
4. Deed of Sale to be done by notarial act; subject matter, and must be valid sales
5. To pay in advance any installment or the full transactions.
balance of price anytime without interest and 2. That two (or more) buyers at odds over the
have such full payment annotated in rightful ownership of the subject matter must
certificate of title. each represent conflicting interests; and
Purpose of the law: Protect buyers in installments 3. That two (or more) buyers at odds over the
against oppressive conditions. Applies to rightful ownership of the subject matter must
contracts even before the law was enacted. (R.A. each have bought from the very same seller.
6552, Sec. 2; Siska Dev. Corp. v. Office of the (Spouses German v. Spouses Santuyo,
President, G.R. No. 93176, 1994) G.R. No. 210845, January 22, 2020)
NOTE: Stipulations contrary to the provisions of If not all the elements are present for Art. 1544 to
Sections 3, 4, 5 and 6 are null and void. (R.A. apply, the principle of prior tempore, potior jure or
6552, Sec. 7) Waiver of the required notice is simply “he who is first in time is preferred in right”
oppressive. should apply. Indisputably, he is a purchaser in
good faith because at the time he bought the real
property, there was still no sale to as a second
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vendee. (Consolidated Rural Bank v. CA, G.R. NOTE: The FIRST BUYER is always in good faith
No. 132161, 2005) and will always prevail if he registers his sale first.
His good faith is not destroyed by the subsequent
NOTE: If the two contracts involved are not both knowledge of the second sale. The reason behind
contracts of sale, as when one is a contract to this is that at the time of perfection of his contract
sell, and the other one a contract of sale, Art. of sale, he was the only buyer. (Carbonell v. CA,
1544 does not apply. This follows the principle G.R. No. L-29972, 1976) But the knowledge
that in a contract to sell, the seller has no gained by the 2nd buyer of the first sale defeats
obligation to deliver title until there is full payment his rights even if he is first to register, since such
of the purchase price. Thus, for as long as the knowledge taints his registration with bad faith.
condition of full payment has not been fulfilled, a (Ordua v. Fuentebella, G.R. No. 176841, 2010)
subsequent sale of the same property will be valid
since the seller still has title to the property. With Buyer in Good Faith – one who purchases and
more reason, if the seller in a contract to sell has pays a fair price for a property without notice that
defaulted, the breach in the condition entitles the another has an interest or right to it. (Amoguis v.
seller to sell the same property for full Ballado, G.R. No. 189626, 2018.)
consideration. Even if the buyer in the contract to
sell annotates his right in the title, the buyer in the If a land is registered and is covered by a
contract of sale is not in bad faith. (Sps. Domingo certificate of title, any person may rely on the
v. Sps. Manzano, G.R. No. 201883, 2016) correctness of the certificate of title. However, this
does not apply where the party has actual
Note that the Court applied this in this case even knowledge of facts and circumstances that would
if the buyer in the contract to sell was not in impel a reasonably cautious man to make such
default since the seller accepted payment after inquiry or when the purchaser has knowledge of
due date. Seller however must reimburse a defect or the lack of title in his vendor or of
payments made to the buyer even if he has only sufficient facts to induce a reasonably prudent
paid less than 2 years of installments because he man to inquire into the status of the title of the
was not in default. Court distinguished this from property in litigation. It is incumbent upon a buyer
earlier case of Abarquez v. CA even if in that to prove good faith should he or she assert this
case, one also involved a contract to sell – status. (Amoguis v. Ballado, G.R. No. 189626,
because in Abarquez, the seller already delivered 2018.)
to the buyer who accepted and took possession,
and even constructed a house on the land under Lis pendens – notice that subject matter is in
installment sale. (Sps. Domingo v. Sps. litigation (Sps. Lim v. Vera Cruz, G.R. No.
Manzano, G.R. No. 201883, 2016) 143646, 2001) is a form of registration accorded
priority right.
Double Sales Rules according to Art. 1544:
1. Movable A buyer cannot be considered a transferee in
First to possess in good faith shall prevail (Art. good faith if it was aware of the title’s notices of
1544) lis pendens. (Register of Deeds of Negros
Occidental v. Anglo, Sr., G.R. No. 171804, 2015)
2. Immovable
(a) First to register in good faith shall prevail; Adverse claim – notice that somebody is
(b) In case no registration is made, then first to claiming better right (Gardner v. CA, G.R. No. L-
possess in good faith shall prevail; 59952, 1984) is a form of registration accorded
(c) No registration and no possession in good priority right.
faith, then the person who presents oldest
title in good faith, shall prevail. (Art. 1544)
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Possession – both actual and constructive The Torrens system was adopted so that one
(Roman Catholic Church v. Pante, G.R. No. need not inquire beyond the certificate of title
174118, 2012) when dealing with registered property. P.D. 1529
or the Property Registration Decree recognizes
Registration – any entry made in the books of the innocent purchasers in good faith for value and
registry, including both registration in its ordinary their right to rely on a clean title. An innocent
and strict sense, and cancellation, annotation, purchaser for value is someone who “buys the
and even marginal notes. It is the entry made in property of another without notice that some other
the registry which records solemnly and person has a right to or interest in it, and who
permanently the right of ownership and other real pays a full and fair price at the time of the
rights.. (Cheng v. Genato, G.R. No. 129760, purchase or before receiving any notice of
1998) another person’s claim.” One claiming to be an
• Registered under Torrens system – 1544 innocent purchaser for value has the burden of
applies proving such status. (Leong v. See, G.R. No.
• Not registered under the Torrens system – 204700, 2014)
1544 still applies
Requisite Diligence for Buyer in Good Faith:
If2nd sale is a judicial sale (made by way of levy 1. Diligence in verifying the validity of the title of
on execution), buyer merely steps into the shoes the property;
of the judgment debtor. Outside of such situation 2. Diligence in inquiring into the authority of the
– must apply to conflicting sales over the same transacting spouse to sell conjugal property
unregistered parcel of land. If sale 1 occurs when in behalf of the other spouse. (Aggabao v.
land is not yet registered and sale 2 is done when Parulan, G.R. No. 165803, 2010).
land is already registered – apply first in time,
priority in right. G. REMEDY OF RESCISSION IN CONTRACTS
COVERING IMMOVABLES (ARTS. 1191 &
Good faith must concur with registration. To be 1592)
entitled to priority, the second purchaser must not General Rule: Judicial Rescission (Art. 1191)
only establish prior recording of his deed, but
must have acted in good faith. (Gabriel v. Exception: Extrajudicial Rescission allowed but
Mabanta, G.R. No. 142403, 2003) SUBJECT to COURT Confirmation.
• Allowed if stipulated; burden to sue shifts to
Under the Torrens system, a sale of property that party who does not like rescission
is not registered under the Torrens system is • Court still has final say as to propriety of
binding only between the buyer and the seller and rescission (Iriñgan v. CA, G.R. No. 129107,
does not affect innocent third persons. (Evy 2001)
Construction and Development Corp. v. Valiant • Forfeiture of amounts valid being in nature of
Roll Forming Sales Corp., G.R. No. 207938, penal clause
2017)
NOTE: Article 1191 of the CIVIL CODE provides
As an exception, “knowledge of an unregistered that in case of breach of reciprocal obligations,
sale is equivalent to registration.” (Evy such as in a contract of sale, the injured party may
Construction and Development Corp. v. Valiant choose between rescission and specific
Roll Forming Sales Corp., G.R. No. 207938, performance ‘with the payment of damages in
2017) either case’. Mutual restitution under Article 1191
is no license for the negation of contractually
RATIONALE FOR THE ADOPTION OF THE stipulated liquidated damages. The very same
TORRENS SYSTEM breach or delay in performance that triggers
rescission is what makes damages due. Further,
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when the contracting parties, by their own free The indivisibility of an obligation is tested against
acts of will, agreed on what these damages ought whether it can be the subject of partial
to be, they established the law between performance: an obligation is indivisible when it
themselves. Thus, in order to uphold both Article cannot be validly performed in parts, whatever
1191 of the CIVIL CODE and the parties’ will, may be the nature of the thing which is the object
contractually stipulated liquidated damages must, thereof. The indivisibility refers to the prestation
as a rule, be maintained. (PEZA v. Pilhino Sales and not to the object thereof. (Spouses Lam v.
Corp, G.R. No. 185765, 2016). Kodak Phils., Ltd., G.R. No. 167615, 2016)
Contract of Sale – Rescission is applicable PLACE OF DELIVERY (Art. 1521)

Contract to Sell – Rescission not applicable General Rule: Whether it is for the buyer to take
(Roque v. Lapuz, G.R. No. L-32811, 1980) possession of the goods or of the seller to send
them to the buyer is a question depending in each
Nonpayment of purchase price would case on the contract, express or implied, between
automatically cancel even without further action the parties.
for rescission.
If the contract is silent, and no usage of trade
Exception: If subject matter is residential lots, to the contrary: Apart from any such contract,
the law on rescission applies when there is express or implied, or usage of trade to the
substantial breach as Maceda law applies. contrary, the place of delivery is the seller's place
of business if he has one, and if not, his
————- end of topic————- residence.
X. PERFORMANCE OF OBLIGATION Rule on Contract of Sale of Specific Goods

In case of a contract of sale of specific goods,
Q: X and Corp A. entered into an agreement which to the knowledge of the parties when the
for the sale of 3 units of minilab equipment. contract or the sale was made were in some other
Corp A delivered 1 out of 3 minilab equipment. place, then that place is the place of delivery.
X issued a postdated check as payment for
the delivered unit. X requested not to TIME OF DELIVERY (Art. 1521)
negotiate the first 2 check due to insufficiency General Rule: Follow the contract, express or
of funds. However, Corp A still negotiated the implied.
said checks and were honored by the If the contract is silent: Where by a contract of
depository bank. X canceled the sale and sale the seller is bound to send the goods to the
demanded the return of unit. X ignored the buyer, but no time for sending them is fixed, the
demand but also rescinded the contract for seller is bound to send them within a reasonable
failure to deliver the 2 remaining minilab time.
equipment. Is the contract of X and Corp A
severable, divisible, and susceptible of partial If with third person: Where the goods at the time
performance under Art. 1225? of sale are in the possession of a third person, the
seller has not fulfilled his obligation to deliver to
The intention of the parties is for there to be a the buyer unless and until such third person
single transaction covering 3 units of the minilab acknowledges to the buyer that he holds the
equipment. Corp A’s obligation was to deliver all goods on the buyer's behalf.
products purchased under a package and in turn
X’s obligation was to pay for the total purchase NOTES:
price, payable in installments. • Demand or tender of delivery may be treated
as ineffectual unless made at a reasonable
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hour. What is a reasonable hour is a question
of fact. The right is exercised only by the seller in whom
right is recognized in the contract or by any
EXPENSES OF PUTTING GOODS INTO person to whom right was transferred; It must be
DELIVERABLE STATE (Art. 1521) in the same contract. (Villanueva & Tiansay, Law
General Rule: Follow the contract on Sales, 474-475, 2016)
If the contract is silent: Borne by the seller.
Period to redeem:
EXPENSES OF EXECUTION AND (a) No period agreed upon – 4 years from date
REGISTRATION (Art. 1487) of contract
(b) Period agreed upon – should not exceed 10
General Rule: Follow the contract years; if it exceeded, valid only for the first 10
If the contract is silent: Borne by the seller. years.
(c) When period to redeem has expired and
————- end of topic————- there has been a previous suit on the nature
of the contract – seller still has 30 days from
XI. EXTINGUISHMENT final judgment on the basis that contract was
a sale with pacto de retro. (Art. 1606)
A. CAUSES
Grounds (same grounds by which obligations in
Rationale: No redemption due to erroneous
general are extinguished) (PLCCC - PNARF)
belief that it is equitable mortgage which can be
1. Payment or performance
extinguished by paying the loan.
2. Loss of the subject matter
3. Condonation or remission
This refers to cases involving a transaction where
4. Confusion or merger of rights of creditor and
one of the parties contests or denies that the true
debtor
agreement is one of sale with the right to
5. Compensation
repurchase; not to cases where the transaction is
6. Novation
conclusively a pacto de retro sale. (Villanueva &
7. Annulment
Tiansay, Law on Sales, 486, 2016)
8. Rescission
9. Fulfillment of a resolutory condition
Example: Where a buyer a retro honestly
10. Prescription
believed that he entered merely into an equitable
11. Conventional Redemption
mortgage, not a pacto de retro transaction, and
12. Legal Redemption (Art. 1231)
because of such belief he had not redeemed
within the proper period. (Leonardo v. CA, G.R.
B. CONVENTIONAL REDEMPTION (SALE
No. 82457, 1993)
WITH RIGHT TO REPURCHASE)
NOTE: When period has expired, and seller has
There is conventional redemption when the seller
allowed the period of redemption to expire – seller
reserved for himself the right to repurchase the
is at fault for not having exercised his rights so he
thing sold, with the obligation to return:
should not be granted a new period.
1. The price of the sale;
2. The expenses of contract,
Tender of payment is SUFFICIENT to compel
3. Other legitimate payments,
redemption but is not in itself a payment that
4. The necessary and useful expenses made
relieves the vendor from his liability to pay the
on the thing sold (Art. 1601)
redemption price. (Paez v. Magno, G.R. No. L-
793, 1949)
NOTE: This only extinguishes obligations
pertaining to contract of sale. It does not
extinguish contract itself.
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Effect When There is No Redemption Made (c) When rights of co-owners over an undivided
• Jurisprudence before the NCC: buyer a retro thing is sold as regards to their own share –
automatically acquires full ownership vendee retro cannot compel one to redeem
• Under present Art. 1607: there must be the whole property
judicial order before ownership of real (d) Should one of the co-heirs/co-owners
property is consolidated in the buyer a retro succeed in redeeming the property – such
vendor a retro shall be considered as trustee
The seller who is given the right to repurchase with respect to the share of the other co-
may exercise his right of redemption by paying owners/co-heirs. (De Guzman v. CA, G.R. No.
the buyer: 1) the price of the sale; 2) the expenses L-47378, 1987)
of the contract; 3) legitimate payments made by
reason of the sale; and 4) the necessary and NOTE: A Seller can only sell what he or she
useful expenses made on the thing sold. The owns, or that which he or she does not own but
repurchase was exercised because from the has authority to transfer, and a buyer can only
P10M purchase price directly paid to B, he acquire what the seller can legally transfer.
deducted the P2M purchase price, his expenses, Before the property is partitioned, the heirs are
interest, and the price of the loan paid to DBP. He co-owners of the property. The heirs cannot
returned the remaining amount and one of the alienate the shares that do not belong to them.
tractors. This is a tacit acknowledgment of the A’s Any sale by one heir of the rest of the property will
exercise of his right to repurchase. (David v. not affect the rights of the other heirs who did not
David, G.R. No. 162365, 2014) consent to the sale. Such sale is void with respect
to the shares of the other heirs. Issuance of a
How is Redemption Effected certificate of title is not a grant of title over
Seller a retro must first pay the following: (PENT) petitioners' undivided portions of the
1. The Price of the thing sold property. Nevertheless, a buyer could acquire
2. Expenses of the contract and other legitimate valid title over the whole property if the buyer
payments made by reason of the sale were an innocent purchaser for value. (Heirs of
3. Necessary and useful expenses made on the Gregorio Lopez v. Development Bank of the
thing sold (Art. 1616) Phils., G.R. No. 193551, 2014.)
4. Valid Tender of payment is sufficient (Legaspi
v. CA, G.R. No. L-45510, 1986) NOTE: A co-owner has “no right to sell or alienate
• Mere sending of notice without valid a concrete, specific or determinate part of the
tender is insufficient. thing owned in common, because his right over
• Failure to pay useful and unnecessary the thing is represented by quota or ideal portion
expenses entitles vendee to retain land without any physical adjudication.” (Cabrera v.
unless actual reimbursement is made Ysaac, G.R. No. 166790, 2014)
In Case of Multi-Parties Fruits

(a) When an undivided thing is sold because co- What controls is the stipulation between parties
owners cannot agree that it be allotted to one as regards the fruits.
of them – vendee a retro may compel the
vendor to redeem the whole thing (Art. 1611) If none:
(b) When an undivided thing is sold by co- 1. At time of execution of the sale a retro, there
owners/co-heirs, vendors a retro may only are visible or growing fruits – there shall be no
exercise his right over his respective share; pro-rating at time of redemption if no indemnity
vendee a retro may demand that they must was paid by the vendee a retro.
come to an agreement first and may not be 2. At time of execution sale a retro, there be no
compelled to consent to a partial redemption fruits but there are fruits at time of redemption
(Art. 1612) – pro-rated between vendor a retro and
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vendee a retro giving the vendee a retro a part 5. Seller binds himself to pay Taxes on thing
corresponding to the time he possessed the sold
land. (Art. 1617) 6. Any other case where the real Intention of
parties is to secure the payment of a debt or
PRE-EMPTION REDEMPTION performance of other obligation (Art. 1602)
Arises before sale Arises after sale
No rescission There can be NOTE: In case of doubt – in determining whether
because no sale rescission of the it is an equitable mortgage or a sale a retro, the
exists yet original sale sale shall be construed as an equitable mortgage.
Action is directed Action is directed (Art. 1603)
against prospective against buyer
seller What to Look for in Determining Nature of
Contract
C. EQUITABLE MORTGAGE 1. Language of the contract
One which lacks the proper formalities, form of 2. Conduct of parties – to reveal real intent
words, or other requisites prescribed by law for a
mortgage, but shows the intention of the parties Remedies available to the vendor:
to make the property subject of the contract as 1. Reformation of contract (Art. 1359)
security for a debt and contains nothing 2. Action for declaration of nullity of deed of sale
impossible contrary to law. (Cachola v. CA, G.R. 3. Action for specific performance (Tolentino v.
No. 97822, 1992) CA, G.R. No. 128759, 2002); or
4. Foreclosure of the mortgage in equity
Any money, fruits, or other benefit to be received (Briones-Vasquez v. CA, G.R. No. 144882,
by the vendee as rent or otherwise shall be 2005)
considered as interest and is subject to usury
laws. Rationale Behind Provision on Equitable
Mortgage:
The essential requisites of an equitable 1. Circumvention of usury law
mortgage are: 2. Circumvention of prohibition against pactum
1. The parties entered into a contract commissorium – creditor cannot appropriate
denominated as a contract of sale; and the things given by way of pledge or
2. Their intention was to secure an existing debt mortgage; remedy here is foreclosure. The
by way of a mortgage. (Molina vs. CA, G.R. real intention of parties is that the pretended
No. 125755, 2003) purchase price is money loaned and to
secure payment of the loan, sale with pacto
A contract with right to repurchase may be de retro is drawn up. (Heirs of Reyes, Jr. v.
deemed to be an equitable mortgage under the Reyes, G.R. No. 158377, 2010)
following conditions (IPERTI):
1. Price of sale with right to repurchase is D. LEGAL REDEMPTION
unusually Inadequate
2. Seller remains in Possession as lessee or The right to be subrogated upon the same terms
otherwise and conditions stipulated in the contract, in the
3. Upon or after expiration of right to place of one who acquires the thing by (1)
repurchase, another instrument Extending purchase OR (2) by dation in payment OR (3) by
the period of redemption or granting new other transaction whereby ownership is
period is executed transmitted by onerous title. (Art. 1619)
4. Buyer Retains for himself a part of the
purchase price NOTE: Only applies to contracts of sale.
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Types of Legal Redemption: extinguish it by reimbursing the assignee for the
1. Among co-heirs price the latter paid therefor plus judicial costs,
Any of the heirs sells his hereditary rights to a interest; except when the assignment or sale is
stranger before partition: made: (a) to a co-heir or co-owner of the right
• Any of the co-heirs may be subrogated to the assigned; (b) to a creditor in payment of his credit;
rights of the purchaser by redeeming said or (c) to the possessor of a tenement or piece of
hereditary right: reimburse the buyer of the land which is subject to the right in litigation
price of the sale assigned. (Arts. 1634, 1635)
• Co-heirs have 1 month from receipt of notice
in writing (Art. 1088) Debtor may exercise right within 30 days from the
date assignee demands payment from him (Art.
2. Among co-owners 1634)
Any or all of co-owners sell their shares to 3rd
person: Other Instances When Right of Legal
• Any co-owner may exercise the right of Redemption is Granted:
redemption by paying reasonable price of 1. Redemption of homesteads
property to the buyer 2. Public Land Act
• If 2 or more co-owners desire to exercise right 3. Land acquired under free patent homestead
of redemption, they may only do so in subject to repurchase by wife, legal heirs
proportion to the share they respectively have within 5 years from date of conveyance
in thing owned in common (Art. 1620) granted by law, need not be stipulated
3. Among adjoining owners Redemption in tax sales

Rural land In case of tax delinquency/failure to pay tax
(a) Where piece of rural land has an area not assessments, property shall be foreclosed.
exceeding 1-hectare, adjoining owner has
right to redeem unless grantee does not own Delinquent payer has 1 year from date of sale to
a rural land redeem by paying to the revenue District Officer
(b) If two or more adjacent lot owners desire to the amount of tax delinquencies, and interest or
exercise right to redeem, owner of adjoining purchase price. (National Internal Revenue Code,
lot with smaller area shall be preferred Sec. 214)
(c) If two or more adjacent lot owners desire to
exercise right to redeem and both have Redemption by judgment debtor: 1 year from
same lot area, one who first requested shall date of registration of certificate of sale to redeem
be granted (Art. 1621) by paying purchaser at public auction with
interest (Rules of Court, Rule 39, Secs. 27, 28)
Urban land
(a) When piece of land is small and cannot be Redemption in extrajudicial foreclosure: 1
used for any practical purpose and bought year from date of sale and registration (Act No.
merely for speculation, owner of adjoining 3135, Sec. 6)
land can redeem
(b) When 2 or more owners of adjoining lot Redemption in judicial foreclosure of
desire to exercise right to redeem, owner mortgage: right to redeem is granted to debtor
whose intended use is best justified shall be mortgagor except when mortgagee is bank of a
preferred. (Art. 1622) banking institution 90 days after finality of
judgment. (GSIS v. CFI, G.R. No. 45322, 1989)
4. Sale of credit in litigation
When a credit or other incorporeal right in When Period of Redemption Begins to Run:
litigation is sold, debtor shall have a right to Right of legal pre-emption of redemption shall be
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exercised within 30 days from notice by the seller. 5. Where the legal title is held by one, the
(Art. 1623) equitable title or beneficial title is held by
another
How exercised: Tender of payment is not 6. Involves the existence of equitable duties
necessary; offer to redeem is enough. (Vda. de imposed upon the holder of the title to the
Panaligan v. CA, G.R. No. 112611, 1996) property to deal with it for the benefit of
another; and
NOTE: Written notice under Art. 1623 is 7. Arises as a result of a manifestation of
mandatory for the right of redemption to intention to create the relationship. (Morales
v. CA, G.R. No. 117228, June 19, 1997.)
commence. (PSC vs. Sps. Valencia, G.R. No.
150060, 2003)
Parties to a Trust
General Rule: Actual knowledge 1. Trustor – The person who establishes the
notwithstanding, written notice is still required. trust.
2. Trustee – The person in whom confidence is
(Verdad v. CA, G.R. No. 109972, 1996)
reposed as regards property for the benefit of
another.
Exception: When actual knowledge is acquired
3. Beneficiary – The person for whose benefit
by co-heirs living in same land with purchaser
the trust has been created. (Penalber v.
(Alonzo v. IAC, G.R. No. L-72873, 1987) or co-
Ramos, G.R. No. 178645, Jan. 30, 2009.)
owner was middleman in sale to 3rd party (Disitro
v. CA, G.R. No. 95256, 1991) STIPULATION
POUR AUTRUI
Art. 1623 does not prescribe any distinctive TRUST (CIVIL CODE,
(Mamaril v. BSP,
method for notifying the redemptioner. (Etcuban Art. 1441)
G.R. No. 179382,
v. CA, G.R. No. L-45164, 1987) Jan. 14, 2013.)
Arises either by virtue Arises only by virtue
————- end of topic————- of a contract or by of a contract
operation of law
B. TRUST Either express or Always express
I. DEFINITION implied
Continues to exist Third person must
Trust – A fiduciary relationship between a person unless repudiated have communicated
who establishes a trust (trustor), one in whom his acceptance to the
confidence is reposed as regards property for the obligor before its
benefit of another person (trustee), and a person revocation by the
for whose benefit the trust has been created obligee or the original
(beneficiary). (CIVIL CODE, Art. 1440) parties
It is a legal relationship between one person who Trustees Cannot Donate Property in Trust
has equitable ownership of the property and Trustees cannot donate the property entrusted to
another who owns the legal title to the property. them. (CIVIL CODE, Art. 736)
(Oco v. Limbaring, G.R. No. 161298, Jan. 31,
2006.) NOTE: The principles of the general law of trusts,
insofar as they are not in conflict with the Civil
Characteristics of a Trust Code, the Code of Commerce, the Rules of Court
1. It is a relationship; and special laws applies. (CIVIL CODE, Art. 1442)
2. Fiduciary;
3. Created by law or agreement
4. Involves property, not merely personal duties;
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II. KINDS OF TRUST On Declining Trustees
General Rule: No trust shall fail because the
1. Express Trust - created by express trustee appointed declines the designation. (CIVIL
agreement of the parties, or by intention of CODE, Art. 1445)
trustor. (CIVIL CODE, Art. 1441)
NOTE: In case of refusal to accept an express
Requisites in Creating an Express Trust trust, the court will appoint a trustee.
1. Clear intent to establish trust; (Art. 1444)
2. Direct and positive acts of the parties Exception: When the contrary appears in the
evidence the intention to create trust by instrument constituting the trust. (CIVIL CODE, Art.
means of: 1445)
a. Writing;
b. Deed; Acceptance by Beneficiary
c. Will; Acceptance by the beneficiary is necessary. If he
d. Words. (Canezo v. Rojas, G.R. No. repudiates or declines, the trust does not become
148788, Nov. 23, 2007.) effective. (CIVIL CODE, Art. 1446)
NOTE: No particular words are required for the NOTE: The beneficiary’s acceptance shall be
creation of an express trust, it being sufficient that presumed if the trust imposes no onerous
a trust is clearly intended. (CIVIL CODE, Art. 1444) condition upon the beneficiary and if there is no
proof to the contrary. (CIVIL CODE, Art. 1446)
Proof Required for Express Trusts

Concerning Immovables On Acquisitive Prescription
No express trust concerning an immovable or any General Rule: A trustee cannot acquire
interest therein may be proved by parol evidence. ownership of property entrusted to him through
(CIVIL CODE, Art. 1443) prescription, as possession of a trustee is not
adverse. (Canezo v. Rojas, G.R. No. 148788,
However, when oppositors failed to timely object Nov. 23, 2007.)
when the petitioner tried to prove by parol
evidence the existence of an express trust over Exception: (REKA)
immovable, there is deemed to be a waiver since
1. Trustee performed unequivocal acts of
Art. 1443 ―is in the nature of a statute of frauds.
repudiation amounting to an ouster of the
(Penalber v. Ramos, G.R. No. 178645, Jan. 30,
cestui que trust;
2009.).
2. Positive acts of repudiation have been made
known to the cestui que trust;
NOTE: To prove an express trust over an
3. Evidence is clear and conclusive; and
immovable or any interest therein, there must
4. Adverse possession of the trustee must be
always be a showing of some documents
at least 10 years in the concept of an owner.
proving the same. (Pascual v. Meneses, G.R. No.
(Canezo v. Rojas, G.R. No. 148788, Nov.
L-18838, May 25, 1967.)
23, 2007.)
Requisites for Creating a Testamentary Trust
NOTE: Above elements must concur.
1. Sufficient words to raise a trust;
2. Definite subject; Extinguishment of an Express Trust
3. Certain or ascertained object. (Lorenzo v. a) Accomplishment of the aims of the trust;
Posadas, Jr., G.R. No. L-43082, June 18, b) Expiration of the agreed term;
1937.) c) Mutual agreement of all parties;
d) Happening of a resolutory condition;
e) Total loss of the object of the trust;
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f) Annulment or rescission of the trust; Resulting Trust vs. Constructive Trust (O’Laco
g) Decision of the court declaring termination; v. Co Cho Chit, G.R. No. 58010, March 31, 1993.)
h) Merger of the rights of the trustor and the RESULTING CONSTRUCTIVE
trustee; TRUSTS TRUSTS
i) Prescription; and Based on the Created by the
j) Upon the trustee's death (Canezo v. Rojas, equitable doctrine construction of equity
G.R. No. 148788, Nov. 23, 2007.) that valuable in order to satisfy the
consideration & not demands of justice &
2. Implied Trust legal title prevent unjust
Basis of implied trust is equity determines enrichment
equitable title or
Implied trusts are remedies against unjust
enrichment. Under the general principles on trust, interest; presumed
to always have
equity converts the holder of property right as
trustee for the benefit of another if the been contemplated
by the parties
circumstances of its acquisition makes the holder
ineligible in good conscience to hold and enjoy it. Arise from the Arise contrary to
(Juan v. Yap, Sr., G.R. No. 182177, March 30, nature or intention against one
2011.) circumstances of who, by fraud, duress
the consideration or abuse of confidence,
Chapter on Implied Trusts is not an exclusive involved in a obtains or hold the
list transaction whereby legal right to property,
one person thereby which he ought not, in
The chapter on implied trust does not exclude
becomes invested equity, & good
others established by the general law of trust
with legal title but is conscience, to hold
which do not violate our rules and laws. (CIVIL
obligated in equity
CODE, Art. 1447)
to hold his legal title
for the benefit of
When there is no trust
another
A trust will not be created when for the purpose of
evading the law prohibiting one from taking or
Constructive Trust
holding real property, one takes conveyance
thereof in the name of a third person. (Kiel v. Article 1450 is an illustration of an implied trust
Estate of Sabert, G.R. No. 21639, Sept. 25, which is constructive. It presupposes a situation
1924.) where a person, using his own funds, purchases
a certain piece of land in behalf of another who,
If there is an express intention to create a trust, in the meantime, may not have sufficient funds to
the trust is express and not implied, even if the purchase the land. The property is then
situations falls under any of the provisions in this transferred in the name of the trustee, the person
chapter. (Cuaycong v. Cuaycong, G.R. No. L- who paid for the land, until he is reimbursed by
21616, Dec. 1, 1967.) the beneficiary, the person for whom the land is
purchased. It is only after the beneficiary
There can be no implied trust created over land reimburses the trustee of the purchase price that
in favor of a foreigner that would amount to a the former can compel conveyance of the
violation of the constitution. (Encarnacion v. purchased property from the latter. (Nakpil v. IAC,
Johnson, G.R. No. 192285, July 11, 2018.) G.R. No. 74449, Aug. 20, 1993.)
A constructive trust does not arise on every moral

wrong in acquiring or holding property or on every
abuse of confidence in business or other affairs;
such a trust arises & will be declared only on
wrongful acquisitions or retentions of property of
which equity takes cognizance. It has been
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broadly ruled that a breach of confidence (Sime Darby Pilipinas v. Mendoza, G.R. No.
although in business or social relations, rendering 20227, June 19, 2013.)
an acquisition or retention of property by one
person unconscionable against another, raises a 2. Implied Trust in Donation
constructive trust. (Policarpio v. CA, G.R. No. There is also an implied trust when a donation is
116211, March 7, 1997.) made to a person but it appears that although the
legal estate is transmitted to the donee, he
Resulting Trust nevertheless is either to have no beneficial
Resulting trusts are species of implied trusts that interest or only a part thereof. (CIVIL CODE, Art.
are presumed always to have been intended by 1449)
the parties (Ossorio Pension Foundation v. Court
of Appeals, G.R. No. 162175, June 28, 2010.) 3. Implied Trust in Sale of Property
If the price of a sale of property is loaned or paid
1. Implied Trust When Property is Granted to
by one person for the benefit of another & the
One/Trustee But Price is Paid by Another for
conveyance is made to the lender or payor to
the Interest of Beneficiary
secure the payment of the debt, a trust arises by
There is an implied trust when property is sold, & operation of law in favor of the person to whom
the legal estate is granted to one party but the the money is loaned or for whom it is paid. The
price is paid by another for the purpose of having latter may redeem the property & compel a
the beneficial interest of the property. The former conveyance thereof to him. (CIVIL CODE, Art.
is the trustee, while the latter is the beneficiary. 1450)
However, if the person to whom the title is
conveyed is a child, legitimate or illegitimate, of 4. Implied Trust in Co-Ownership
the one paying the price of the sale, no trust is
If two or more persons agree to purchase
implied by law, it being disputably presumed that
property & by common consent the legal title is
there is a gift in favor of the child. (CIVIL CODE,
taken in the name of one of them for the benefit
Art. 1448)
of all, a trust is created by force of law in favor of
the others in proportion to the interest of each.
Elements of purchase money resulting trust
(CIVIL CODE, Art. 1452)
1. Actual payment of money, property, or
service, or an equivalent valuable A resulting trust arises in the situation, because
consideration; and of the intention to create one. Purchasers are co-
2. Such consideration must be furnished by the owners of the property. In the absence of any
alleged beneficiary of a resulting trust. specific agreement to the contrary, their shares
(Trinidad v. Imson, G.R. No. 197728, Sept. are presumed equal.
16, 2015.)
5. Implied Trust in Succession
Burden of proof
When land passes by succession to any person
The burden of proving the existence of a trust is
and he causes the legal title to be put in the name
on the party asserting existence of trust, and such
of another, a trust is established by implication of
proof must be clearly and satisfactorily show the
law for the benefit of the true owner. (CIVIL CODE,
existence of the trust and its elements. (Jarantilla,
Art. 1451)
Jr. v. Jarantilla, G.R. No. 154486, Sept. 16, 2010.)
This article provides for a resulting trust there
NOTE: Presumption is that he who pays for a
being a clear intention to establish a trust. The
thing intends a beneficial interest for himself. (e.g.
refers to inherited land. There is no good reason
where the club share was bought and paid for by
why the principle cannot apply to personal
A and placed in the name of its officer B, a
properties.
resulting trust is presumed as a matter of law in
favor of A. The burden shifts to show otherwise)
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6. Implied Trust in Co-Ownership for the purchase of property & causes the
If two or more persons agree to purchase conveyance to be made to him or to a third
property and by common consent the legal title is person, a trust is established by operation of law
taken in the name of one of them for the benefit in favor of the person to whom the funds belong.
of all, a trust is created by force of law in favor of (CIVIL CODE, Art. 1455)
the others in proportion to the interest of each.
(CIVIL CODE, Art. 1452) In order to prevent unjust enrichment on the part
of the fiduciary, an implied constructive trust is
A resulting trust arises in the situation, because created in this circumstance.
of the intention to create one. Purchasers are co-
owners of the property. In the absence of any Persons covered
specific agreement to the contrary, their shares Any person holding a fiduciary position such as a
are presumed equal. trustee, guardian, agent, partner, or a confidential
employee, among others
7. Property Conveyed in Reliance upon His
Declared Intention to Hold it For Another Rationale of rule
When property is conveyed to a person in To prevent fiduciary from temptation of putting his
reliance upon his declared intention to hold it for, own self-interest above that of his principal whom
or transfer it to another or the grantor, there is an he is supposed to protect. It also is intended to
implied trust in favor of the person whose benefit keep and encourage the fiduciary to remain
is contemplated. (CIVIL CODE, Art. 1453) honest and loyal to his principal
An implied resulting trust is created because of 10. Property Acquired Through Mistake or
the declared intention of the grantee to hold or Fraud
transfer the property to the grantor or to another If property is acquired through mistake or fraud,
person. the person obtaining it is, by force of law,
considered a trustee of an implied trust for the
8. An Absolute Conveyance to Secure benefit of the person from whom the property
Performance of Obligation comes. (CIVIL CODE, Art. 1456)
If an absolute conveyance of property is made in
order to secure the performance of an obligation This trust is created by law to prevent unjust
of the grantor toward the grantee, a trust by virtue enrichment on the part of the acquirer to the
of law is established. If the fulfillment of the prejudice of the true owner. The mistake must be
obligation is offered by the grantor when it committed by a third person. If made by a party,
becomes due, he may demand the reconveyance there is no trust.
of the property to him. (CIVIL CODE, Art. 1454)
E.g. Conveyance made by seller of a property
A resulting trust is one that arises by implication acquired through pactum commisorium is void,
of law and presumed always to have been and thus not vest title to the buyer. Such a
contemplated by the parties, the intention as to situation falls squarely under Art. 1456, where the
which can be found in the nature of their buyer is deemed to have acquired the property by
transaction although not expressed in a deed or mistake or through ineffectual transfer (Home
instrument of conveyance. (Heirs of Yap v. CA, Guaranty Corp. v. La Savoie Dev. Corp G.R. No.
G.R. No. 133047, Aug. 17, 1999.) There is an 168616, Jan. 28, 2015.).
intention to create trust, although it was not
reflected in the deed of reconveyance, therefore, Violation of a condition in donation
an implied resulting trust is created. No trust is created if a condition in a valid
donation has been breached by the donee. The
9. Trustee’s Use of Funds Held in Trust property remains in ownership of the donee
When any trustee, guardian or other person subject to proper action for revocation. If the
holding a fiduciary relationship uses trust funds
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action has prescribed however, the donee will consent or authority of the latter. (CIVIL CODE, Art.
remain as the rightful owner. 1868)
Oral Evidence Characteristics:

An implied trust may be proved by oral evidence. i. Consensual: perfected by mere consent;
(CIVIL CODE, Art. 1457) (CIVIL CODE, Art. 1869, Art. 1870) The basis
for agency is representation; on principal’s
It is deducible from the nature of the transactions part, there must be an intention to appoint,
as matters of intent or which are super-induced or such intention is naturally inferable from
on the transaction by operation of law, words or actions; on part of the agent, there
independently of the particular intention of the must be an intent to accept the appointment
parties. and act on it; in the absence of either, there
is no agency. (Dominion Insurance Corp. v.
When an immovable or an interest therein is CA, 376 SCRA 239 [2002])
involved in an express trust, parol evidence is ii. Nominate: it has its own name; It will be an
not allowed. But, when trust is implied, parol agency whether or not parties understood
evidence is allowed to prove its existence. the exact nature of the relation. (Doles v.
Consequently, if property involved in express Angeles, G.R. No. 149353, June 6, 2006.)
trust is movable, parol evidence is allowed. iii. Preparatory: The object of agency is for the
agent to enter on behalf of the principal and
Proof needed to prove trust by parol evidence within the scope of his authority into juridical
It must be trustworthy and received by the courts acts with third parties (Rallos v. Felix Go
with caution, and should not be made to rest on Chan & Sons Realty Corp., G.R. No. L-
loose, equivocal or indefinite declarations. 24332, Jan. 1,1978.)
Trustworthy evidence is required because oral iv. Principal: it does not depend on another
evidence can easily be fabricated. (Herbon v. contract for its existence and validity; (Doles
Palad, G.R. No. 149542, July 20, 2006.). Further, v. Angeles, G.R. No. 149353, June 6, 2006.)
it must be clear, satisfactory, and convincing, as v. Unilateral/Bilateral and Primarily Onerous:
intent to establish trust cannot rest on vague, a. Unilateral: if contract is gratuitous or it
uncertain evidence, or on loose, equivocal, or creates obligations for only one party
indefinite declaration. (Heirs of Narvasa Sr. v. (i.e. the agent) (Urban Bank, Inc. v.
Imbornal, G.R. 182908, Aug. 6, 2014.) Peña, G.R. No. 145817, 145822,
162562, Oct. 19, 2011.)
Q: What is the applicable prescriptive period b. Bilateral: if contract is for compensation
for actions for the reconveyance of real or gives rise to reciprocal rights and
property based on implied trust? obligations (Urban Bank, Inc. v. Peña,
G.R. No. 145817, 145822, 162562, Oct.
A: 10 years, reckoned from the time the cause of
19, 2011.)
action accrues. (CIVIL CODE, Art. 1144; Sps.
Dico v. Vizcaya Management Corporation ,
NOTE: Agency is presumed to be for
G.R. No. 161211, July 17, 2013.)
compensation, unless there is proof to the
contrary. (CIVIL CODE, Art. 1875)
-------- end of topic --------
Basis: Representation
C. AGENCY The acts of the agent on behalf of the principal
within the scope of his authority produce the
I. DEFINITION OF AGENCY same legal and binding effects as if they were
personally done by the principal. (Litonjua, Jr. v.
By the Contract of Agency a person binds Eternit Corp., G.R. No. 144805, June 6, 2006.)
himself to render some service or to do something
in representation or on behalf of another, with the The distinguishing features of agency are its
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representative character & its derivative authority. Exception to Contractual Nature
(Rallos v. Felix Go Chan & Sons Realty Corp., Gr. When the agency is created by operation of law
No. L-24332, Jan. 1,1978.) (See Part VIII on “Agency by Operation of Law”)
Purpose NOTE: An illegal termination of agency does not

Extend the personality of the principal through the justify reinstatement of the agent. The agency
facility of the agent (Litonjua, Jr. v. Eternit Corp., cannot be compelled by the courts to be
G.R. No. 144805, June 6, 2006.) reinstated because such relationship can only be
given effect with the consent of the principal.
Parties to the Contract of Agency (Orient Air Services v. CA, G.R. No. 76931, May
1. Principal 29, 1991.)
i. May be a natural or a juridical person
ii. Must be capacitated. (CIVIL CODE, Art. Acts that cannot be done through an agent
1327) i. Personal Acts (making of a will; exercise of
General rule: If a person is capacitated right of suffrage; statements required to be
to act in his own right, he can act through made under oath; attending meetings of
an agent. board of directors/trustees of a corporation;
iii. The agent is not liable where he was agents prohibited from appointing a
ignorant of the principal’s incapacity. substitute)
2. Agent ii. Criminal Acts or Acts Not Allowed by Law
i. Like the principal, the agent may be (ownership of private agricultural lands by
either a natural or juridical person, and aliens through an agent; persons prohibited
must be capacitated. to acquire a property by reason of position or
ii. One who is absolutely incapacitated (ex. relation to the person cannot do the same
insane persons) cannot be an agent. through the mediation of another;
participation in the commission of a crime –
NOTE: From the time the agent acts or transacts a person cannot escape punishment on the
the business for which he has been employed in ground that he was merely an agent)
representation of another, a third party is added
to the agency relationship – the party with whom Nature of Relationship between Principal and
the business is transacted (De Leon, 2010). Agent
Fiduciary – based on trust & confidence
Essential Elements (CROW) i. Agent is estopped from asserting an interest
1. Consent of the parties to establish the adverse to his principal’s, whether his own or
relationship; that of an adverse party (Severino v.
2. Object or subject matter of the contract is the Severino, G.R. No. 18058, Jan. 16, 1923.)
execution of a juridical act in relation to third ii. Agent must not use or disclose secret
persons; information (CIVIL CODE, Art. 1889)
3. Agent acts as a Representative and not for iii. Agent must give notice of material facts
himself; and (CIVIL CODE, Art. 1889)
4. Agent acts Within the scope of his authority.
(Rallos v. Felix Go Chan & Sons Realty NOTE: Theory of Imputed Knowledge
Corp., Gr. No. L-24332, Jan. 1, 1978.) General Rule: Knowledge of the agent is
imputed to the principal even though the agent
II. NATURE, FORMS AND KINDS OF AGENCY never communicated it to his principal (Sunace
International Management Services, Inc. v.
Nature NLRC, G.R. No. 161757, Jan. 25, 2006.)
Since it is a contract, there must be a meeting of
the minds as to consent, object, and cause. (CIVIL Exceptions:
CODE, Art. 1868) i. Where the interests of the agent are adverse
to those of the principal;
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ii. The agent’s duty is not to disclose the Distinction between Agency and Lease
information, as where he is informed by way LEASE OF
of confidential information. AGENCY
PROPERTY
iii. Agent acts in bad faith or where the person Agent is controlled by Lessee is not
claiming the benefit of the rule colludes with the principal. controlled by the
the agent to defraud the principal (CIVIL lessor.
CODE, Art. 1898) Agency may involve Lease of property
things other than involves property.
Distinction between Agency and property.
Guardianship Agent can bind the Lessee cannot bind
AGENCY GUARDIANSHIP principal. the lessor.
Agent represents a A guardian
capacitated person represents an Distinction between Agency to Sell and Sale
incapacitated person. (Quiroga v. Parsons, G.R. No. 11491, Aug. 23,
Agent is appointed by Guardian is 1918; Spouses Viloria v. Continental Airlines, G.R.
the principal and can appointed by the No. 188288, Jan. 16, 2012.)
be removed by the court and stands in AGENCY TO SELL SALE
latter. loco parentis.
Agent receives the Buyer receives the
Agent is subject to Guardian is not goods as the goods as owner
the directions of the subject to the principal’s goods
principal. directions of the ward Agent delivers the Buyer pays the price
but must act for the
proceeds of the sale
benefit of the latter
Agent can return the Buyer, as a general
Agent can make the Guardian has no
object in case he is rule, cannot return
principal personally power to impose unable to sell the the object sold
liable. personal liability on
same to a third
the ward.
person
Agent in dealing with Buyer can deal with
Distinction between Agency and Judicial the thing received is the thing as he
Administration bound to act pleases, being the
JUDICIAL according to the owner
AGENCY instructions of his
ADMINISTRATION
Agent is appointed by Judicial administrator principal
the principal. is appointed by the
court. Distinction between Agency and Contractor
Agent represents the Judicial administrator (Shell v. Firemen’s Ins. Co., G.R. No. L-8169,
principal. not only represents
Jan. 29, 1957.)
the court but also the
heirs and creditors of INDEPENDENT
AGENT
the estate. CONTRACTOR
Agent does not file a Judicial administrator Represents his Employed by the
bond. files a bond. principal employer
Agent is controlled by Judicial Acts under the Acts according to his
the principal through administrator’s acts principal’s control and own method
the arrangement. are subject to specific
instruction
orders from the court.
Principal is liable for Employer not liable
torts committed by for torts committed by
the agent within the the independent
scope of his authority contractor. (Rule VIII,
Sec. 9(b), Omnibus
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(Civil Code, Art. Implementing Rules ii. Special – agency comprises one or more
1897, Art. 1899) of the Labor Code of specific transactions (CIVIL CODE, Art. 1876)
the Philippines)
As to Authority Conferred
Distinction between Agency and Partnership i. Couched in general terms – only acts of
AGENCY PARTNERSHIP administration (CIVIL CODE, Art. 1878)
An agent must A co-partner is not ii. Couched in specific terms – only the
submit to the subject to co-partner’s performance of a specific act/s (CIVIL CODE,
principal’s right to right to control, unless Art. 1876)
control there is an agreement
to that effect As to Nature and Effects
The agent assumes The partner binds not i. Ostensible or Representative – agent acts
no personal liability only the firm members in the name and representation of the
where he acts within but himself as well principal
the scope of his ii. Simple or Commission – agent acts in his
authority (CIVIL own name but for the account of the
CODE, Art. 1897) principal.
The agent takes his The profits belong to
agreed share of all the partners as Forms of Agency
profits not as owner common proprietors General rule: Appointment of an agent may be
but as an agreed in agreed proportions oral or written; no formal requirement (CIVIL
measure of CODE, Art. 1869)
compensation for his
services Exception: When the law requires a specific form
(e.g., sale of a piece of land or any interest therein
As to Manner of Creation through an agent – the agent’s authority must be
i. Express – agent has been explicitly in writing, otherwise the sale is void) (CIVIL CODE,
authorized by the principal, either orally or in Art. 1874)
writing. (CIVIL CODE, Art. 1869)
ii. Implied – agency is implied from the acts of How Agency May be Constituted from Side of
the principal, from his silence, or lack of Third Parties:
action, or his failure to repudiate the agency i. Agency is not presumed to exist – persons
knowing that another person is acting on his dealing with an agent must ascertain not
behalf without authority, or from the acts of only the fact of agency, but also the nature
the agent which carry out the agency. (CIVIL and extent of his authority – he must
CODE, Art. 1869) require the presentation of the power of
attorney, or the instructions as regards the
Other Classifications of Agency agency. (Salvador v. Rabaja , G.R. No.
199990, Feb. 2, 2015.)
As to Character ii. Agency by Estoppel with Respect to Third
i. Gratuitous – agent receives no Parties – one who clothes another with
compensation for his services (CIVIL CODE, apparent authority as his agent, and holds
Art. 1875) him out to the public as such, cannot be
ii. Onerous – agent receives compensation for permitted to deny the authority of such
his services (CIVIL CODE, Art. 1875) person to act as his agent, to the prejudice
of innocent third parties dealing with such
As to Extent of Business of the Principal person in good faith and in the following
pre-assumptions or deductions, which the
i. General – agency comprises all the
law expressly directs to be made from
business of the principal (CIVIL CODE, Art.
particular facts, are deemed conclusive.
1876)
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(Macke v. Camps, G.R. No. 2962, Feb. 27, 9184, Feb. 2, 1916.)
1907.) 2. A broker is not entitled to commission for
unsuccessful efforts. (Guardex Enterprises v.
Compensation NLRC, G.R. No. 66541, Nov. 20, 1990.)
General rule: Agency is presumed to be for 3. The broker should be paid his commission
compensation, unless there is proof to the where he is the efficient procuring cause in
contrary. (CIVIL CODE, Art. 1875) bringing the sale. (Prats v. CA, G.R. No. L-
39822, Jan. 31, 1978; Manotok Brothers v.
The agent does not have to prove that the agency CA, G.R. No. 94753, Apr. 4, 1993.)
is for compensation.
Efficient Procuring Cause
Exception: The presumption that the agency is When there is a close proximate and causal
for compensation is prima facie, meaning it may connection between the efforts and labor of the
be disproved by contrary evidence (CIVIL CODE, agent and the principal’s sale of property.
Art.1875) (Manotok Brothers v. CA, G.R. No. 94753, Apr. 7,
1993.)
Broker
Negotiates contracts relative to property in behalf Q: Will a broker be paid if the transaction was
of others and for a compensation/fee (Litonjua v. effected after the expiration of his authority?
Eternit Corp., G.R. No. 144805, June 8, 2006.) A: The broker should be paid his commission
where he is the efficient procuring cause in
Difference from a Broker bringing the sale. He is the efficient procuring
cause when there is a close proximate and causal
A broker brings parties together and parties agree
connection between the efforts and labor of the
to enter into a contract. A broker is not necessarily
agent and the principal’s sale of property
an agent of either party, and negotiate contracts
(Manotok Brothers v. CA, G.R. No. 94753, Apr. 4,
relative to property in behalf of others and for a
1993.)
compensation/fee. He is described merely as a
“go-between” between the parties in Litonjua v.
NOTE: “Procuring cause” refers to a cause
Eternit Corp. (G.R. No. 144805, June 8, 2006.),
originating a series of events which, without break
and does not have authority to bind the parties.
in their continuity, resulting in the
Thus, in Litonjua, the Court said that a real estate
accomplishment of the prime objective of the
broker (not an agent) is one who negotiates the
broker’s employment, i.e. to produce a purchaser
sale of real properties – his authority is to find a
ready, willing, and able to buy on the owner’s
buyer (or seller) who wishes to purchase (or sell)
terms. To be regarded as the “procuring cause”
a property on terms agreed upon by the parties.
to be entitled to a commission, a broker’s efforts
He has no authority to bind the parties in the
must have been the foundation on which the
contract of sale. His authority is to find a buyer (or
negotiations resulting in a sale began. (Medrano
seller) and not to sell the property. Thus, there is
v. CA, G.R. No. 150678, Feb. 18, 2005.)
no need of a special power of attorney under Art
1878.
Law on Double Agency
When Broker Entitled to Compensation If two or more persons have appointed an agent
1. Whenever he brings to his principal a party for a common transaction or undertaking, they
shall be solidarily liable to the agent for all the
who is able and willing to take the property,
consequences of the agency (CIVIL CODE, Art.
and enter into a valid contract upon the terms
1915).
named by the principal, although the
particulars may be arranged and the matter Requisites for Principal to be bound by act of
negotiated and completed between the Agent (CIVIL CODE, Art. 1897)
principal and the purchaser directly
1. The agent must act on behalf of the principal
(Macondray & Co., Inc. v. Sellner, G.R. No.
2. The agent must act within the scope of his
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authority implied acceptance if the principal delivers his
power of attorney to the agent and the latter
When Principal is not bound by act of Agent receives it without any objection (CIVIL CODE, Art.
1871)
General Rule: The agent acts without or beyond
the scope of his authority in the principal’s name Between persons who are absent
(CIVIL CODE, Art. 1897, 1910, Art. 1403 (1) General rule: Acceptance not deemed implied
from the silence of the agent. (CIVIL CODE,
Exceptions: Art.1872)
So far as third persons are concerned, an act is
Exceptions:
deemed to be within the scope of the agent's
authority, if such act is within the terms of the i. When the principal transmits his power of
power of attorney, as written, even if the agent attorney to the agent who receives it without
has in fact exceeded the limits of his authority any objection
according to an understanding between the ii. When the principal entrusts to him by letter
principal and the agent; (CIVIL CODE, Art. 1900) or telegram a power of attorney with respect
i. Where the principal has ratified the acts of to the business in which he is habitually
the agent, expressly or impliedly (CIVIL engaged as an agent, and he did not reply to
CODE, Art. 1910) the letter or telegram (CIVIL CODE, Art.1872)
If an agent acts in his own name, he (and not the “Present”

principal) is the one bound to the third person.
Generally, “face to face”, but includes people
The principal would not have a right of action in
conversing directly through technology (e.g. over
such case, unless the transaction involves things
the telephone or through a videoconference).
belonging to him (CIVIL CODE, Art. 1883)
Q: How is implied acceptance manifested as

NOTE: The agent is not deemed to have
between persons who are present and those
exceeded his authority should he perform the
who are absent?
agency in a manner more advantageous to the
A: As between persons who are present, the
principal than that indicated by him, since he is
acceptance of the agency may be implied if the
authorized to do such acts as may be conducive
principal delivers his power of attorney to the
to the accomplishment of the purpose of the
agent and the latter receives it without any
agency. (CIVIL CODE, Art. 1882)
objection. (CIVIL CODE, Art. 1871). Meanwhile, as
to those who are absent, the acceptance of the
In the absence of an agreement to the contrary, a
agency cannot be implied from the silence of the
managing agent (i.e. one entrusted with the care
agent, except when the principal delivers his
and management of a business) may enter into
power of attorney to the agent, who receives it
contracts that he deems reasonably necessary or
without any objection; or when the principal
requisite for the protection of the interests of his
entrusts to him by letter or telegram a power of
principal entrusted to his management. (Eurotech
attorney in which he is habitually engaged as an
v. Cuizon, G.R. No. 167552, Apr. 23, 2007.)
agent, and he did not reply to the letter or
telegram. (CIVIL CODE, Art. 1872)
Forms of Acceptance by Agent
i. Express - when it is oral or written (CIVIL Kinds of Agency
CODE, Art. 1870) i. Based on business or transactions
ii. Implied - when it can be inferred from the encompassed - General vs Special Agency
acts of the agent which carry out the agency, GENERAL SPECIAL
or from his silence or inaction according to BASIS
AGENT AGENT
the circumstances (CIVIL CODE, Art. 1870)
Scope of All acts Specific acts
Authority connected in pursuance
Between persons who are present – there is
with the of particular
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business or instructions Legal Encyclopedia, p. 66)
employment or with
in which he is restrictions His authority is provided in a special power of
engaged necessarily attorney or general power of attorney or letter of
(CIVIL CODE,, implied from attorney. An attorney-in-fact is not necessarily a
Art. 1876) the act to be lawyer.” (Pineda, Legal Ethics, p. 8)
done (CIVIL
CODE, Art. iii. Whether it covers acts of administration or
1876) acts of dominion – General Power vs. Special
Nature of Involves No continuity Power of Attorney
Service continuity of of service
Authorized service Power of Attorney
Extent to May bind his Cannot bind Instrument in writing by which the principal
Which Agent principal by his principal appoints his agent and confers authority to do
May Bind the an act within in a manner specific acts on behalf of the principal. Its primary
Principal the scope of beyond or purpose is to evidence the agent’s authority to
his authority, outside the third parties with whom the agent deals (Wee v.
although it specific acts De Castro, G.R. No. 176405, 2008.)
may not have which he is
been the authorized to Construction of Power of Attorney (Olaguer v.
subject of perform Purugganan, Jr., G.R. No. 158907, Feb. 12,
any specific 2007.)
instruction General rule: Strictly construed to grant only
Construction Generally Strictly those specified powers.
of Principal’s considered construed as
Instructions as advisory they limit the Exception: When strict construction will defeat
in nature agent’s the very purpose of the power
authority
Ways of Giving Notice of Agency and its
NOTE: Universal Agent – one employed to do Effect
all acts which the principal may personally do,
i. By special information - the person
and which he can lawfully delegate to another the
appointed as agent is considered as such
power of doing. (Siasat v. IAC, G. R. No. L-67889,
with respect to the person to whom it was
Oct. 20,1985.)
given. (CIVIL CODE, Art. 1873)
ii. By public advertisement - the agent is
ii. Whether it covers legal matters – Attorney at
considered as such with regard to any
Law vs. Attorney-in-Fact
person. (CIVIL CODE, Art. 1873)
Attorney-at-Law
“A practitioner in a court of law who is legally Agency Couched in General Terms
qualified to prosecute and defend actions in such Covers only mere acts of administration (not acts
court.” of dominion) even if:
i. The principal should state that he withholds
Attorney-in-Fact no power
“An attorney-in-fact is simply an agent whose ii. The agent may execute such acts as he may
authority is strictly limited by the instrument consider appropriate
appointing him, though he may do things not iii. The agency should authorize a general and
mentioned in his appointment necessary to the unlimited management (CIVIL CODE,
performance of the duties specifically required of Art.1877)
him by the power of attorney appointing him, such
authority necessarily being implied (Philippine
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How to Construe Contracts of Agency 13. To Accept or repudiate an inheritance;
Contracts of agency, as well as general powers 14. To Ratify or recognize obligations contracted
of attorney, must be interpreted in accordance before the agency;
with the language used by the parties. 15. Any Other act of strict dominion. (CIVIL
• The real intention of the parties is primarily CODE, Art. 1878)
determined from the language used and
gathered from the whole instrument. NOTE: A Special Power of Attorney is not
• In case of doubt, resort must be had to the required to execute a Deed of Partition because
situation, context, and relations of the partition is a conveyance of real property. (Heirs
parties. The intention of the parties must of Ureta v. Heirs of Ureta, G.R. No. 165748, Sept.
be sustained, not defeated. 14, 2011.)
• If the contract is open to two (2)
constructions, one of which would uphold the NOTE: A Special Power of Attorney is strictly
intention while the other would overthrow it, construed. Hence, the act under Article 1878
the former is to be chosen. (Liñan v. Puno, sought to be authorized must be clearly stated.
G.R. No. L-9608, Aug. 7, 1915.)
Accordingly, the power of administration does not
Cases Where Special Power of Attorney is include acts of disposition or encumbrance, which
Necessary (PECWAM-LLB-BOCARO) are acts of strict ownership. Similarly, an authority
to sell or dispose does not include the authority to
1. To make such Payments as are not usually administer. (Aggabao v. Parulan, G.R. No.
considered as acts of administration; 165803, Sept. 1, 2010.)
2. To Effect novations which put an end to
obligations already in existence at the time NOTE: A Special Power of Attorney must express
the agency was constituted; the powers of the agent in clear and unmistakable
3. To Compromise, to submit questions to language for the principal to confer the right upon
arbitration, to renounce the right to appeal an agent (Yoshizaki v. Joy Training Center of
from a judgment, to waive objections to the Aurora, Inc., G.R. No. 174978, July 31, 2013.).
venue of an action, or to abandon a
prescription already acquired;
However, Article 1878 does not state that the
4. To Waive any obligation gratuitously;
authority be in writing. As long as the mandate is
5. To Enter into any contract by which the
express, such authority may either be oral or
ownership of an immovable is transmitted or
written. The requirement under Article 1878
acquired either gratuitously or for a valuable
refers to the nature of authorization and not to its
consideration;
form (Patrimonio v. Gutierrez, G.R. No. 187769,
6. To Make gifts, except customary ones for
June 4, 2014.).
charity or those made to employees in the
business managed by the agent;
The special power of attorney can be included in
7. To Loan or borrow money, unless the latter
the general power when it specifies therein the
act be urgent and indispensable for the
act or transaction for which the special power is
preservation of the things which are under
required.
administration;
8. To Lease any real property to another
Q: A borrowed money from C on behalf of B
person for more than one year;
without B’s knowledge. C sought to recover
9. To Bind the principal to render some service
from A, but to no avail. He thereafter sent
without compensation;
several demand letters to B asking for the
10. To Bind the principal in a contract of
payment. B now contends that he should not
partnership;
be held liable because there was no loan
11. To Obligate the principal as a guarantor or
between him and C since he did not give a
surety;
special power of attorney for the borrowing of
12. To Create or convey real rights over
money. Is B correct?
immovable property;
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A: Yes. Art. 1878 of the NCC provides that a the latter case with regard to any person
special power of attorney is necessary in order to (CIVIL CODE, Art.1873).
loan or borrow money, unless the latter act be • Even when the agent has exceeded his
urgent and indispensable for the preservation of authority, the principal is solidarily liable with
the things which are under administration. Such the agent if the former allowed the latter to act
authorization, however, need not be in writing. As as though he had full powers (CIVIL CODE, Art.
long as the mandate is express, such authority 1911)
may be either oral or written. (Patrimonio v.
Gutierrez, G.R. No. 187769, June 4, 2014.) Requisites of Agency by Estoppel
1. The principal manifested a representation of
Powers not included in the power to mortgage the agent’s authority or knowingly allowed the
agent to assume such authority;
i. To sell (CIVIL CODE, Art. 1879)
2. The third person, in good faith, relied upon
ii. To execute a second mortgage
such representation; and
iii. To mortgage for the agent’s or any 3rd
3. Relying upon such representation, such third
persons’ benefit, unless clearly indicated
person has changed his position to his
detriment (Country Bankers Insurance
Powers not included in the power to
Corporation v. Keppel Cebu Shipyard, et. al.,
compromise
G.R. No. 166044, June 18, 2012.)
Submission to arbitration (CIVIL CODE, Art. 1880)
Distinction between Agency by Estoppel and
Rationale: Implied Agency
i. A principal may authorize his agent to AGENCY BY IMPLIED
compromise because of his confidence in BASIS
ESTOPPEL AGENCY
the latter’s discretion to protect his rights and Existence No agency at There is an
obtain for him the best deal. of actual all actual agency
ii. If the transaction were left in the hands of an agency
arbitrator, said arbitrator may not enjoy the Reliance Can be Such reliance
trust of the principal. by 3rd invoked only is not needed,
iii. The agent must act within the scope of his persons by a 3rd since the agent
authority. He may do such acts as may be person who in is a real agent
conducive to the accomplishment of the good faith
purpose of the agency. (CIVIL CODE, Art. relied on the
1881) conduct of the
principal in
Agency by Estoppel holding the
There is really no agency at all, but the alleged agent out as
agent seemed to have apparent or ostensible, being
although not real, authority to represent another. authorized
(Country Bankers Insurance Corporation v. Nature of An agent by An agent by
Keppel Cebu Shipyard, et. al., G.R. No. 166044, Authority estoppel has implied
July 18, 2012.) none of the appointment
rights of an has all the
NOTE: agent, except rights and
• If a person specially informs another or states where the liabilities of an
by public advertisement that he has given a principal’s agent, i.e. has
power of attorney to a third person, the latter conduct are actual
thereby becomes a duly authorized agent, in such that the authority to act
the former case with respect to the person agent on behalf of
who received the special information, and in reasonably the principal
believed that
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the principal in good faith and without knowledge of the
intended him to revocation. Notice of revocation in a
act as an agent newspaper of general circulation is a
sufficient warning. (CIVIL CODE, Art. 1922)
NOTE: An authority embodied in a letter is 4. The appointment of a new agent for the
sufficient. (Jimenez v. Rabot, G.R. No. 12579, same business or transaction revokes the
July 7, 1918.) previous agency from the day on which
notice was given to the former agent. (CIVIL
Instances creating an Agency by Operation of CODE, Art. 1923)
Law 5. Agency is revoked if principal directly
1. The agent must finish the business already manages the business entrusted to the
begun on the death of the principal, should agent, dealing directly with third persons
delay entail any danger (CIVIL CODE Art. (CIVIL CODE, Art. 1924)
1884, par. 2) 6. When two or more principals have granted a
2. In case a person declines an agency, he is power of attorney for a common transaction,
bound to observe the diligence of a good any one of them may revoke the same
father of a family in the custody and without the consent of the others. (CIVIL
preservation of the goods forwarded to him CODE, Art. 1925)
by the owner until the latter should appoint an
7. A general power of attorney is revoked by a
agent (CIVIL CODE, Art. 1885)
special one granted to another agent, as
3. The agent, even if he should withdraw from
regards the special matter involved in the
the agency for a valid reason, must continue
latter. (CIVIL CODE, Art. 1926)
to act until the principal has had reasonable
opportunity to take the necessary steps to 8. The power shall continue to be in full force
meet the situation (CIVIL CODE, Art. 1929). until the notice is rescinded in the same
4. Anything done by the agent, without manner as it was constituted. (Civil Code,
knowledge of the death of the principal or of Art. 1873). However, constitution by Special
any other cause which extinguishes the Information may be revoked by notice in a
agency, is valid and shall be fully effective daily newspaper, provided it can be proven
with respect to third persons who may have that 3rd persons in question read the
contracted with him in good faith (CIVIL CODE, revocation (CIVIL CODE, Art. 1922)
Art. 1931).
5. If the agent dies, the heirs must notify the III. OBLIGATIONS OF THE AGENT
principal thereof, and in the meantime adopt
such measures as the circumstances may General Obligations of the Agent to the
demand in the interest of the latter (CIVIL Principal (GOC)
CODE, Art. 1932) 1. Act with utmost Good faith & loyalty for the
furtherance of principal’s interests
How Agency is revoked 2. Obey principal’s instructions
1. Principal may revoke the agency (express or 3. Exercise reasonable Care
implied) at will and compel agent to return
the document evidencing the agency. (CIVIL General Obligation of Agent who accepts the
CODE, Art. 1920) Agency
2. Agency has been entrusted for purpose of NOTE: The agent is bound by his acceptance to
contracting with specified persons – carry out the agency and is liable for the damages
revocation will not prejudice specified which, through his non-performance, the principal
persons if they were not notified. (CIVIL may suffer.
CODE, Art. 1921)
3. If the agent had general powers – revocation He must also finish the business already begun
does not prejudice third persons who acted on the death of the principal, should delay entail
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any danger. (CIVIL CODE, Art. 1884) 12. Pay Interest on funds he has applied to his
own use (CIVIL CODE, Art. 1896)
Specific Obligations of the Agent (FADI –
CALAMARI) Obligation of Agent who declines Agency
1. Carry out the agency (CIVIL CODE, Art. 1884); In case a person declines an agency, he is bound
2. Answer for damages which through his non- to observe the diligence of a good father of a
performance the principal may suffer; family in the custody and preservation of the
3. Finish the business already begun on the goods forwarded to him by the owner until the
death of the principal should delay entail any latter should appoint an agent. The owner shall
danger (exception to the rule that death as soon as practicable either appoint an agent or
extinguishes agency) (CIVIL CODE, Art. 1884); take charge of the goods. (CIVIL CODE, Art. 1885)
4. Observe the Diligence of a good father of a
family in the custody and preservation of the Effects of Agent’s Acts to Principal’s Liability
goods forwarded to him by the owner in case
LIABILITY OF
he declines an agency, until an agent is ACT OF AGENT
PRINCIPAL
appointed (CIVIL CODE, Art. 1885);
Mismanagement of Principal still
5. Advance necessary funds if there be a
the business by the responsible for the
stipulation to do so (except when the principal
agent acts contracted by
is insolvent);
the agent with
6. Act in accordance with the Instructions of the
respect to 3rd
principal, and in default thereof, to do all that
persons; Principal,
a good father of a family would do (CIVIL
however, may seek
CODE, Art. 1887);
recourse from the
Exceptions (to the rule that the agent must
agent
not depart from the instructions of principal)
Tort committed by the Principal civilly liable
(SAI):
agent so long as the tort is
i. There’s a Sudden emergency
committed by the
ii. If the instructions are Ambiguous
agent while
iii. If the Departure is so Insubstantial that it
performing his duties
does not affect the result and the
in furtherance of the
principal suffers no damage thereby
principal’s business
7. Not to carry out the agency if it would
Manifestly result in loss or damage to the Agent in good faith but Principal is liable for
principal (CIVIL CODE, Art. 1888); prejudices 3rdparties damages
8. Answer for damages if there being a conflict Agent in bad faith and Only the agent is
between his & his principal’s interests, he prejudices 3rd persons liable for damages
prefers his own (CIVIL CODE, Art. 1889);
9. Not to Loan to himself if he has been When Agent has a right to disobey the
authorized to loan money at interest (CIVIL Principal’s instructions
CODE, Art. 1890) 1. When the instruction calls for the
10. Render an Account of his transactions and performance of illegal acts
deliver to the principal whatever he may have 2. Where he is privileged to do so to protect his
received by virtue of the agency (If the agent security in the subject matter of the agency
fails to deliver and instead converts or
appropriates for his own use the money or When obligation to account not applicable
property belonging to his principal, he may be
i. If the agent acted only as a middleman with
charged with ESTAFA.) (CIVIL CODE, Art.
the task of merely bringing together the
1891)
vendor and the vendees.
11. Be Responsible in certain cases for the act of
ii. If the agent had informed the principal of the
the substitute appointed by him (CIVIL CODE,
gift/bonus/profit he received from the
Art. 1892)
purchaser and his principal did not object.
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iii. Where a right of lien exists in favor of the appoint one;
agent. b. When he was given such power, but
without designating the person, and the
When Agent may incur Personal Liability person appointed was notoriously
i. When the agent expressly binds himself incompetent or insolvent. (CIVIL CODE,
(CIVIL CODE, Art. 1897) Art. 1892)
ii. When the agent exceeds his authority (CIVIL
CODE, Art. 1897, 1898) If there is a prohibition, B cannot do so, unless he
iii. When an agent by his act prevents seeks the consent of the principal.
performance on the part of the principal
iv. When a person acts as an agent without Responsibility of Two (2) or More Agents
authority or without a principal Appointed Simultaneously
v. A person who purports to act as agent of an General rule: Joint liability
incapacitated principal Exception: When solidarity has been expressly
stipulated, in which case, each of the agents
Appointment of Sub-Agent becomes solidarily liable for (1) the non-fulfillment
i. If the principal has not prohibited the agent of the agency; and for (2) the fault or negligence
from appointing a substitute, the Principal of his fellow agent(s) (CIVIL CODE, Art.1894)
will be liable to 3rd persons for the acts of
the sub-agent within the scope of his Exception to the Exception: when one of the
authority other agent/s acts beyond the scope of his
ii. If there is a prohibition but nevertheless the authority – innocent agent is not liable. (CIVIL
agent appoints a sub-agent, all the sub- CODE, Art. 1895)
agent’s acts are void as to the principal
and the agent will be personally liable as to Doctrine of Agency by Necessity
third parties. An agency can never be created by necessity;
iii. If there is authority to appoint and sub-agent what is actually created is additional authority in
is not designated by the principal, the agent an agent appointed and authorized before the
will be liable for all the acts of the sub-agent emergency arose.
if the sub-agent is notoriously
incompetent or insolvent. The existence of emergency or other unusual
iv. If there is authority to appoint and sub-agent conditions may operate to invest in an agent
is designated by the principal, the agent is authority to meet the emergency, provided
released from any liability from the acts of (PURE):
the sub-agent and the principal shall be 1. The agent’s enlarged authority is exercised
liable. for the principal’s Protection
v. If the appointment of a sub-agent is not 2. The agent is Unable to communicate with
prohibited, it shall be valid if it is beneficial principal;
to the principal. But, should the principal 3. The means adopted are Reasonable under
incur damage due to such appointment, the the circumstances;
agent shall be primarily responsible for 4. The emergency really Exists;
the acts of the sub-agent. (CIVIL CODE, Art.
1892) Effect where 3rd Person aware of limits of
agent’s power
Q: A constituted B as his agent. Can B appoint
If the agent exceeds his authority, it shall be void
a substitute?
unless the principal ratifies it. (Cervantes v. CA,
A: Yes. The agent may appoint a substitute or G.R. No. 125128, March 2, 1999.)
sub-agent if the principal has not prohibited him
from doing so, but he shall be responsible for the
acts of the substitute:
a. When he was not given the power to
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When third persons can repudiate the assert a gain. (Robinson v. Borse)
contract
Before actual ratification by the principal, or NOTE: The agent is responsible not only for
before the principal has signified his willingness fraud, but also for negligence, which shall be
to ratify the agent’s acts. judged with more or less rigor by the courts,
according to whether the agency was or was
Effect of the principal receiving the benefits of not for compensation. (CIVIL CODE, Art. 1909)
the transaction
He is deemed to have ratified it. A principal may
not accept the benefits of a transaction and at the
same time repudiate its burdens
Conditions for Ratification

1. The principal must have capacity and power
to ratify
2. He must have had knowledge of material
facts
3. He must ratify the acts in its entirety
4. The act must be capable of ratification
5. The act must be done on behalf of the
principal
6. To be effective, ratification need not be
communicated or made known to the agent
or the third party. The act or conduct of the
principal rather than his communication is the
key. But before ratification, the third party is
free to revoke the unauthorized contract.
Effects of Ratification
i. With respect to agent - relieves the agent
from liability to the third party for the
unauthorized transaction, and to his principal
for acting without authority; may recover
compensation
ii. With respect to principal - assumes
responsibility for the unauthorized act, as if
the agent had acted under original authority
but not liable for acts outside the authority
approved by his ratification
iii. With respect to 3rd persons - bound by
ratification to the same extent as if the
ratified act had been authorized; cannot
raise the question of the agent’s authority to
do the ratified act
NOTE: There is ratification when the principal

sues to enforce the contract entered into by
the unauthorized agent. However, there is no
such ratification if the principal’s action is
brought to avert a greater loss rather than to
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ACTS OF THE
EFFECT EXCEPTION(S)
AGENT
On behalf of the Binds the principal Agent liable if he:
principal, within the Agent not personally liable (CIVIL i. Expressly makes himself liable
scope of authority CODE, Art. 1881) ii. Exceeds the limits of his authority
without giving the parties sufficient
notice of his powers
Without or beyond Contract is unenforceable as against Binding on the principal when:
scope of authority the principal but binds the agent to the i. Ratified or
third person (CIVIL CODE, Arts. 1317, ii. The principal allowed the agent to
1403 and 1898) act as though he had full powers
Within the scope of Not binding on the principal. Principal When the transaction involves things
authority but in the has no cause of action against the 3rd belonging to the principal:
agent’s name parties and vice versa • Remedy of the principal - damages
for agent’s failure to comply with
the agency. Remedies of the third
person
i. If the case falls under the
general rule, he can sue the
agent.
ii. But when the contract involves
things belonging to the
principal, he can sue the
principal.
iii. But if it cannot be determined
without litigation who is liable,
he can sue both.
Within the scope of Insofar as 3rd persons are concerned,
the written power of not required to inquire further than the
attorney but agent terms of the written power, agent
has actually acted within scope of his authority;
exceeded his Principal is estopped
authority according
to an understanding
between him & the
principal
With improper Motive is immaterial; as long as within Third person knew agent was acting for
motives the scope of authority, valid his own benefit: principal is not liable to
3rd person
Owner is seeking recovery of personal
property of which he has been
unlawfully deprived
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Authorized - principal still liable
Beyond the scope of the agent’s

authority
General Rule: Principal not liable
Exception: principal takes advantage
of a contract or receives benefits
made under false representation of
his agent
For the agent’s own benefit – principal

still liable; agent’s motive immaterial
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Obligation Rules for Commission Agents agent entitled to any interest/benefit which
may result from such sale (CIVIL CODE,
Commission Agent - one whose business is to Art.1905)
receive and sell goods for a commission and who 4. If an agent receives guarantee commission (a
is entrusted by the principal with the possession of del credere agent), he shall Bear the risk of
goods to be sold, and usually selling in his own collection and shall pay the principal the
name. proceeds of the sale on the same terms
agreed upon with the purchaser. The agent
Distinction between Commission Agent and shall be liable for damages if he does not
Broker collect the credits of his principal at the time
COMMISSION when they become due and demandable,
BROKER unless he proves, that he exercised due
AGENT
Engaged in the No custody or diligence for that purpose. (CIVIL CODE, Art.
purchase and sale for possession of the 1907)
a principal of personal thing he disposes;
property which has to merely a go-between, IV. OBLIGATIONS OF THE PRINCIPAL
be placed in his an intermediary
possession and between the seller Obligations of the Principal to the Agent
disposal and the buyer (CARIP)
Has a relation with Maintains no relation 1. Comply with all the obligations agent
principal, buyer or with the thing which contracted in representation of the principal
seller, and property he purchases or sells (CIVIL CODE, Art. 1910)
which is the object of 2. Advance sums necessary for the execution of
the transaction the agency, when agent so requests; liable for
reimbursement regardless of the
Distinction between Ordinary Agent and undertaking’s success whenever agent had
Commission Agent advanced & has no fault; includes interest
COMMISSION (CIVIL CODE, Art. 1912)
ORDINARY AGENT 3. Reimburse the agent for all advances made by
AGENT
Acts for and in behalf May act in his own him provided the agent is free from fault (CIVIL
of his principal name or in that of the CODE, Art. 1912)
principal 4. Indemnify the agent for all the damages which
the execution of the agency may have caused
Need not have Must be in possession
the latter without fault or negligence on his part
possession of the of the thing he
principal’s goods disposes
5. Pay the agent the compensation agreed upon
or the reasonable value of the latter’s services
Obligations of a Commission Agent (RMCB)
1. Responsible for the goods received by him, as
described in the consignment, unless upon Liability of 3rd Persons to the Principal
receiving them he should make a written
1. In Contract – a 3rd person is liable to the
statement of the damage and deterioration
principal upon contracts entered into by his
suffered by the same (CIVIL CODE, Art. 1903)
agent, as if the contract has been entered into
2. If goods are of the same kind and mark but
by the principal. (CIVIL CODE, Art. 1897)
belonging to different owners, make a
2. In Tort – the 3rd person’s tort liability to the
distinction by counter Marks and designate the
principal, insofar as the agent is involved in the
merchandise respectively belonging to each
tort, arises in 3 situations:
principal (CIVIL CODE, Art. 1904)
i. Where the 3rd person damages or injures
3. He cannot, without consent of the principal,
property or interest of the principal in the
sell on Credit; should he do, principal may
possession of the agent
demand payment in cash, but the commission
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ii. Where the 3rd person colludes with the Agent’s Right of Retention
agent to injure/defraud the principal 1. Specific (only for those goods connected with
iii. Where the 3rd person induces the agent to the agency); and
violate his contract with the principal to 2. Until the principal effects the reimbursement
betray the trust reposed upon him by the and pays the indemnity (CIVIL CODE, Art. 1914)
principal.
Principal’s Liabilities for Expenses
Rules on Liability of Two (2) or more Principals
General rule: Principal is liable for the expenses
Requisites for Solidary Liability of Principals incurred by the agent.
1. There are two (2) or more principals
2. The principals have all concurred in the Exceptions (AFUS):
appointment of the same agent i. If the agent Acted in contravention of the
3. The agent is appointed for a common principal's instructions, unless the latter
transaction or undertaking (CIVIL CODE, Art. should wish to avail himself of the benefits
1915) derived from the contract.
ii. When the expenses were due to the Fault of
NOTE: The rule in Art. 1915 applies even when the agent.
the appointments were made by the principals in iii. When the agent incurred them with
separate acts, provided that they are for the same knowledge that an Unfavorable result would
transaction. The solidarity arises from the ensue, if the principal was not aware thereof.
common interest of the principals and not from iv. When it was Stipulated that the expenses
the act of constituting the agency. would be borne by the agent, or that the latter
would be allowed only a certain sum. (CIVIL
The principal is not bound by the acts of the CODE, Art.1918)
authorized agent where the latter failed to indicate
in the mortgage that she was acting for and in Who can be estopped to deny Agency?
behalf of her principal, and the REM explicitly 1. Estoppel of Agent - one professing to act as
shows on its face that it was signed by agent in her agent is estopped to deny his agency both as
own name and personal capacity. The third-party against his asserted principal and the third
bank has no one to blame but itself. Not only did it persons interested in the transaction in which
act with undue haste when it granted and released he is engaged
the loan, but it also acted negligently in preparing
the REM as it failed to indicate that the agent was 2. Estoppel by the Principal
signing it for and on behalf of the principal. (Bucton
i. As to agent – one knowing another is
v. Rural Bank of El Salvador, Inc., G.R. No.
acting as his agent and fails to repudiate
179625, Feb. 24, 2014.)
his acts, or accept the benefits of them,
will be estopped to deny the agency as
Rule where two persons contract separately
against such other
with Agent and Principal
ii. As to sub-agent – for the principal to be
Two persons may contract separately with the estopped from denying his liability to a
agent and the principal with regard to the same third person, he must have known or be
thing. If the two contracts are incompatible with charged with knowledge of the transaction
each other, the one of prior date shall be and the terms of the agreement between
preferred. This is subject, however, to the rules on the agent and sub-agent
Double Sales under Art. 1544 of the Civil Code iii. As to third persons – one who knows that
(i.e. for movables: first in possession, first in right; another is acting as his agent or permitted
for immovables: first to register in good faith, first another to appear as his agent, to the
in right; absent any inscription: first in possession injury of third persons who have dealt with
or party who presents oldest title acquires the apparent agent as such in good faith
ownership). (CIVIL CODE, Art. 1916) and in the exercise of reasonable
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prudence, is estopped to deny the agency reliance of third persons upon the conduct of the
(Litonjua, Jr. v. Eternit Corp., G.R. No principal or agent. (Professional Services, Inc. v.
144805, June 8, 2006.) CA, G.R. No. 126297, Feb 2, 2010.)
3. Estoppel of Third Persons – a third person,

Agency by Estoppel
having dealt with one as an agent may be
estopped to deny the agency as against the General Rule: Principal may revoke the agency at
principal, agent or 3rd persons in interest. will (CIVIL CODE, Art. 1920)
4. Estoppel of the Government - government Exception: Agency coupled with interest

neither estopped by the mistake/error of its i. When a bilateral contract depends upon the
agents; may be estopped through affirmative agency.
acts of its officers acting within the scope of ii. When the agency is the means of fulfilling an
their authority. obligation already contracted
iii. When a partner is appointed as manager of a
Distinction between Ratification and Estoppel partnership in the contract of partnership and
his removal from the management is
RATIFICATION ESTOPPEL
unjustifiable. (CIVIL CODE, Art. 1927)
Rests on intention Rests on prejudice
Affects the entire Affects only relevant Exception to the Exception: When the agent
transaction from the parts of the acts to defraud the principal – Implied
beginning transaction Revocation of Agency
Substance of Substance of Principal appoints a new agent for the same
ratification is estoppel is the business or transaction (only if there is
confirmation of an principal’s incompatibility); effective as between the
authorized act or inducement to principal and the agent only if communicated
conduct after it has another to act to his to the agent; does not prejudice rights of third
persons acting in good faith without
been done prejudice
knowledge of the revocation (CIVIL CODE, Art.
1923)
Distinction between Apparent Authority and Principal directly manages the business
Authority by Estoppel entrusted to the agent, or deals directly with 3rd
APPARENT AUTHORITY BY persons (CIVIL CODE, Art. 1924)
AUTHORITY ESTOPPEL
Though not actually Where the principal, Effect of Issuance of a Special Power of
granted, principal by his negligence, Attorney
knowingly permits his agent to The general power is impliedly revoked as to
permits/holds out the exercise powers not matters covered by the special power because a
agent as possessing granted to him, even special power naturally prevails over a general
the necessary powers though the principal power (CIVIL CODE, Art. 1926)
to act in a certain way may have no notice or
knowledge of the Principal’s Liability for Damages despite
conduct of the agent Revocation
1. If the agency was constituted for a fixed
period, the principal shall be liable for
A principal may be held liable under the Doctrine
damages occasioned by the wrongful
of Apparent Authority when the principal’s liability
discharge of the agent before the expiration of
arises from: (a) his manifestations of the existence
the period fixed
of the agency which need not be expressed, but
2. Even if there was no time fixed for the
may be general and implied, or acts of the agent
continuance of the agency, but the agent can
which suggest the existence of a principal-agency
prove that the principal acted in bad faith by
relationship which are known to the principal and
revoking the agency in order to avoid the
which the principal does not deny; and (b) the
payment of commission about to be earned,
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the principal can be held liable for damages
(Villanueva supra at 209-210 (citing Diolosa v. NOTE: The list is not exclusive; causes are
CA, 130 SCRA 350, July 16, 1984 & particular only to agency; may be extinguished by
Valenzuela v. CA, 191 SCRA 1, Oct. 19, the modes of extinguishment of obligations in
1990.)). general whenever they are applicable, like loss of
the thing and novation.
Necessity of Notice of Revocation
1. As to the agent – notice is always necessary; Presumption of Continuance of Agency
sufficient notice if the party to be notified When once shown to have existed, an agency
actually knows, or has reason to know, a fact relation will be presumed to have continued, in the
indicating that his authority has been absence of anything to show its termination.
terminated or suspended; revocation without
notice to the agent will not render invalid an Continuance of Agency
act done in pursuance of the authority Parties must be:
2. As to 3rd persons – notice necessary 1. Present;
3. As to former customers - notice must be 2. Capacitated; and
given to them because they always assume 3. Solvent.
the continuance of the agency relationship
4. As to other persons - notice by publication is Modes of Extinguishing an Agency, Generally
enough (CIVIL CODE, Art. 1922) (ASO)
a) Agreement
Effect of Extinguishment without Notice
b) Subsequent acts of the parties which may be
Act of agent deemed valid insofar as third parties either:
acting in good faith and without knowledge of a. By the act of both parties or by mutual
revocation. (CIVIL CODE, Art. 1922; Bitte v. Jones, consent
G.R. No. 212256, Dec. 9, 2015.) b. By the unilateral act of one of them
c) By Operation of Law
V. MODES OF EXTINGUISHMENT
NOTE: Even if the reason for extinguishing the
How Agency is Extinguished (EDWARD) agency is not true, the agent cannot insist on
a) By the Expiration of the period for which the reinstatement. The agent can only demand
agency was constituted. damages. (Orient Air Services v. Court of Appeals,
b) By the Death, civil interdiction, insanity or G.R. No. 76931, May 29, 1991.)
insolvency of the principal or of the agent;
c) By the Withdrawal of the agent; What happens if the subject matter of the
d) By the Accomplishment of the object or agency is lost or destroyed?
purpose of the agency; General rule: In the absence of any agreement by
e) By its Revocation; the parties to the contrary, the loss or destruction
f) By the Dissolution of the firm or corporation of the subject matter of the agency terminates the
which entrusted or accepted the agency agent‘s authority to deal with reference to it.
Exceptions:
Other Modes
i. If it is possible to substitute other material for
a) Mutual withdrawal from the relationship by the that which was destroyed without substantial
principal and agent; detriment to either party
b) By the happening of a supervening event that ii. If the destroyed subject matter was not in fact
makes illegal or impossible the objective or essential to the contract
purpose for which the agency was constituted, iii. A partial loss or destruction (agency may
like the destruction of the subject matter which continue in existence as to other property not
is the object of the agency. affected).
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May the agency be extinguished at will?
If the loss is due to a breach or wrongful act of the Agent may do so but subject to the contractual
principal, he liable for damages. obligations owing to the principal (i.e. fixed period
of time for the agency or purpose not yet
Form of Renunciation accomplished).
It is not always necessary for the agent to
renounce the agency expressly. He can do so Expressly or Impliedly
impliedly, such as: i. Conducted himself in a manner incompatible
i. Where he has conducted himself in a manner with his duties;
incompatible with his duties as agent ii. Abandons the object of agency and acts for
ii. When he abandons the object of his agency himself in committing a fraud upon his
and acts for himself in committing a fraud upon principal;
his principals iii. He files a complaint against the principal and
iii. When he files a complaint against the principal adopts an antagonistic attitude towards him
and adopts an antagonistic attitude towards iv. The mere fact that the agent violates the
him principal’s instructions does not amount to
renunciation, but that may render him liable
Exceptions to Extinguishment by Death (KID- for damages.
C)
i. If the agency is coupled with an Interest; -------- end of topic --------
ii. If the act of the agent was executed without
the Knowledge of the death of the principal D. COMPROMISE
and the third person who contracted with the
agent acted in good faith. (Rallos v. Go Chan, Compromise – a contract by which the parties, by
G.R. No. L-24332, Jan. 31, 1978.) making reciprocal concessions, avoid litigation or
iii. To avoid Damage put an end to one already commenced. (Art. 2028)
iv. If it has been constituted in the Common
• It is a consensual contract, perfected upon
interest of the principal and of the agent, or in
the meeting of the minds. (Paraiso
the interest of a third person who has
International Properties, Inc. v. CA, G.R.
accepted the stipulation in his favor
No. 153420, April 16, 2008).
Can the heirs continue the agency? • As such, neither courts nor quasi-judicial
bodies cannot impose a compromise
General rule: Agency calls for personal services
different from the agreement between the
on the part of the agent; rights & obligations are
parties. (Philippine Bank of
not transmissible
Exceptions: Communications v. Echiverri, G.R. No. L-
41795, Aug. 29, 1980, citing Municipal
i. Agency by operation of law, or a presumed or
Board of Cabanatuan City v. Samahang
tacit agency
Magsasaka, G.R. No. L-25818, Feb. 25,
ii. Agency is coupled with an interest in the
1975, 62 SCRA 435).
subject matter of the agency (e.g. power of
sale in a mortgage).
Compromise requires: (CARE)
Revocation 1. Contract
Termination of the agency by the subsequent act 2. With Reciprocal concessions
of the principal 3. Seeking to Avoid or End litigation
Renunciation/Withdrawal Two kinds of compromise agreements:

1. Judicial – which puts an end to a pending
Termination of the agency by the subsequent act
litigation; and
of the agent
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2. Extrajudicial – which is to avoid litigation. exclusively in Congress, per Sec. 20(1),
(Spouses Lana v. CA, G.R. No. 104133, Chap. IV, Subtitle B, Title I, Book V of EO
April 18, 1995, citing Caguioa, VI No. 292. (Binga Hydroelectric Plant, Inc. v.
Commentaries and Cases on Civil Law). COA, G.R. No. 218721, July 10, 2018).
The courts shall endeavor to persuade the litigants The following CANNOT be compromised (Art.
in a civil case to compromise. (Art. 2029) 2035):
• Procedurally, this is done through 1. Civil status of persons
mandatory court-annexed mediation, 2. Validity of marriage or of legal separation
judicial disputed resolution. (see A.M. No. 3. Any ground for legal separation
11-1-6-SC-PHILJA, Jan. 11, 2011), and 4. Future support
also during pre-trial (Rule 18). 5. Jurisdiction of courts
• Note that what can be compromised is a 6. Future legitime
civil case; “there may be a compromise
upon the civil liability arising from an A compromise covers only those matters definitely
offense; but such compromise shall not stated therein, or those included by necessary
extinguish the public action for the implication. (Art. 2036)
imposition of the legal penalty.” (Art.
2034); “it is settled that criminal liability A compromise is res judicata upon the parties, but
cannot be the subject of a compromise.” there shall be no execution except in compliance
(Team Image Entertainment, Inc. v. Solar with a judicial compromise. (Art. 2037)
Team Entertainment, Inc., G.R. No. • Note: even if the compromise is not
191652, Sept. 13, 2017). judicially approved, it is res judicata. (Jose
• If either or both parties express a Cochingyan, Jr. v. Cloribel, G.R. No. L-
willingness to compromise, or one party 27070-71, April 22, 1977, 76 SCRA 361).
offers to compromise (even if the other • However, only if the compromise is
party refused the offer), the civil approved by the court can it be enforced
action/proceeding shall be suspended. by mandamus. (Spouses Lana v. CA,
(Art. 2030) G.R. No. 104133, Apr. 18, 1995, citing
• If a losing party showed a sincere desire Maceda, Jr. v. Moreman Builders, G.R.
to compromise, the courts may mitigate No. 100239, Oct. 28, 1991, 203 SCRA
the damages to be paid. (Art. 2031) 293).
Court approval is necessary for compromises Compromises in which there is mistake, fraud,
entered into by (GRAPE) (Art. 2032): violence, intimidation, undue influence, or falsity of
1. Guardians documents are voidable.
2. Representatives of absentees • However, if one party, by virtue of the
3. Administrators or Executors of a decedent’s compromise, already withdrew from a
estate litigation that had commenced, the other
4. Parents party cannot set up mistake of fact. (Art.
2038)
For a juridical person to compromise, it must
comply with the form and requirements that are General Rule for newly-discovered
needed for alienation of property. (Art. 2033). documents: If there are newly-discovered
• Generally, only a Board Resolution is documents referring to part of a compromise that
required; however, for GOCCs and was already entered into, the discovery of such by
government agencies, the authority to itself is not cause of annulment/rescission of the
compromise a settled claim or liability compromise, unless the documents were
exceeding P100,000.00 is vested concealed by one of the parties.
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Exception for newly-discovered documents: If ARBITRATIONS
the compromise refers to only one thing, and the
newly-discovered documents show that one party The same persons who may enter into
had no right to said thing (Art. 2039) compromise may also submit their arbitrators for
decision. (Art. 2042)
If the parties entered into compromise, and either
or both parties were unaware that there was All provisions relating to compromise are also
already a final judgment entered into at the time applicable to arbitrations. (Art. 2043)
they entered the compromise, the compromise Any stipulation that the arbitrators’ award or
may be rescinded (Art. 2040) decision shall be final is valid, without prejudice
to Articles 2038-40. (on voidable compromises;
If one party fails or refuses to abide by the Art. 2044)
compromise, the other party has the option of
either enforcing the compromise, or consider the Any clause giving one party the power to choose
compromise rescinded and insist on the original more arbitrators than the other is void. (Art.
demand (Art. 2041) 2045)
The appointment of arbitrators and the
The doctrine on immutability of judgments applies procedure for arbitration shall be governed by
to compromise agreements approved by courts in such rules of court as the SC may provide. (Art.
the same manner as it applies to judgments that 2046).
have been rendered on the basis of a full-blown
trial. Thus, a judgment on compromise that has Arbitration is a preferred method of settling
attained finality cannot be “modified in any respect, disputes in our jurisdiction. RA 9285 (Alternative
even if the modification is meant to correct Dispute Resolution Act of 2004) provides that:
erroneous conclusions of fact and law, and 1. The RTC must refer the case to arbitration
whether it be made by the court that rendered it or if there is an arbitration clause; it does not
the Highest Court of the land.” (Chiquita Brands v. have jurisdiction;
Omelio, G.R. No. 189102, 2017). 2. Foreign arbitral awards, however, must be
confirmed by the RTC to be enforced;
A judgment upon a compromise is rendered based 3. The RTC does have jurisdiction to review
on the parties’ reciprocal concessions. All the the foreign arbitral award (even if it does
more reason should a judgment upon a not have jurisdiction over the dispute
compromise be complied with in good faith itself);
considering that the parties themselves crafted its 4. The grounds to set aside a foreign arbitral
terms. However, notwithstanding provisions in a award are different from those to set aside
compromise agreement stating that the parties a domestic arbitral award; for the former,
should “immediately provisionally dismiss all the grounds are Art. 34(2) of the
actions, whether civil or criminal, they may have UNCITRAL Model Law, while for the latter,
filed against each other”, a party that fails to cause the grounds are set in Sec. 23 of RA 876;
the dismissal of the criminal cases filed cannot be and
deemed to have violated the compromise 5. The RTC decision on a foreign arbitral
agreement, since criminal liability cannot be the award is appealable.
subject of a compromise. (Team Image
Entertainment v. Solar Team Entertainment, G.R. Thus, if there is an arbitration clause, unilateral
No. 191652, 2017). rescission is improper. (Korea Technologies v.
Lerma, G.R. No. 143581, Jan. 7, 2008)
Under the doctrine of separability, even the

party who repudiates the main contract may
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invoke an arbitration clause. Also, a formal 2. Arbitrators awarded on a matter not
request for arbitration is not the only method to submitted to them, not affecting the merits
activate the arbitration clause; raising the of the decision upon the mater submitted;
existence of the arbitration clause and the desire or
to avail of such in an Answer is valid invocation 3. Award is imperfect in a matter of form not
of the right to arbitrate. (Koppel, Inc. v. Makati affecting the merits of the controversy,
Rotary Club Foundation, Inc., G.R. No. 198075, and if it was a commissioner’s report, the
Sept. 4, 2013) defect could have been amended or
disregarded by the court.
Note: the following CANNOT be the subject of an
arbitration clause (Sec. 6, RA 9285): A party has 1 month to file for confirmation or
1. Labor disputes covered by the Labor enforcement of the arbitral award (Sec. 23, RA
Code; 876), and 30 days to move for the modification or
2. Civil status of persons; vacation of the award (Sec. 26, RA 876)
3. Validity of marriage; Grounds to vacate or modify a foreign arbitral
4. Any ground for legal separation; award (Art. 34(2) of the UNCITRAL Model Law,
5. Jurisdiction of courts; and Sec. 45 of RA 9285):
6. Future legitime; 1. A party to the award furnishes proof that:
7. Criminal liability; and a. A party to the agreement was
8. Anything which by law cannot be under some incapacity, or the
compromised. agreement is not valid under the
law to which the parties have
Note: Arbitration of constructions disputes are subjected it; or
governed by E.O. No. 1008 (the Construction b. The party making the
Industry Arbitration Law), and falls under the application was not given proper
jurisdiction of the Construction Industry notice of the appointment of the
Arbitration Commission. (Chapter 6 of RA 9285) arbitrator or of the arbitration
Grounds to vacate a domestic arbitral award proceedings or was otherwise
(Sec. 24, RA 876): unable to present his case; or
1. Award procured by corruption, fraud, or c. The award deals with a dispute
other undue means; or beyond the arbitration
2. Evident partiality or corruption in any of agreement, or contains
the arbitrators; or decisions on matters beyond the
3. Arbitrators were guilty of misconduct in agreement; or
refusing to postpone when there is good d. The composition of the
cause, or in refusing to hear pertinent and arbitration tribunal or the
material evidence, or was disqualified and arbitration proceedings were not
concealed such disqualification; or in accordance with the
4. Arbitrators either exceeded their powers agreement between the parties;
or so imperfectly executed them that a or
mutual, final, and definite award was not 2. The court finds that:
made a. The subject matter of the dispute
is not capable of settlement by
Grounds to modify a domestic arbitral award arbitration under the law of the
(Sec. 25, RA 876): State; or
1. Evident miscalculation of figures or b. The award is in conflict with the
evident mistake in description of any public policy of the State.
person, thing, or property referred to in the
award; or -------- end of topic --------
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identical thing, the contract perfected is a contract
E. LOAN of commodatum. There is however, NO
TRANSFER OF OWNERSHIP.
Credit Transactions - include all transactions
involving the purchase or loan of goods, services In mutuum, the object borrowed must be a
or money in the present with a promise to pay or consumable thing the OWNERSHIP OF WHICH
deliver in the future (contract of security). IS TRANSFERRED to the borrower who incurs the
obligation to return the same consumable to the
2 Types of Credit Transactions: lender in an equal amount, and of the same kind
1. Secured transactions – those supported and quality.
by a collateral or an encumbrance of
property. Art. 1941 (05, BAR): Bailee is obliged to pay
2. Unsecured transactions – those ordinary expenses.
supported only by a promise to pay or the
personal commitment of another such as Art. 1946 (05, BAR):
a guarantor or surety. General Rule Bailor cannot demand return until
after (a) expiration of period stipulated, or (b)
Security is something given, deposited or serving accomplishment of use for which commodatum
as a means to ensure the fulfillment or was constituted.
enforcement of an obligation or of protecting some
interest in the property. Exceptions:
1. If urgently need thing (may demand
2 Types of Security return/temporary use); or
1. Personal – when an individual becomes a 2. If the bailor may demand immediate return of
surety or a guarantor the thing if the bailee commits any acts of
2. Real or Property – when an ingratitude. (Art. 1948)
encumbrance is made on property (e.g.
real estate mortgage, chattel mortgage Art. 1949 (05, BAR):Bailor is obliged to refund
over vessels or aircrafts, or security extraordinary expenses provided the bailee
interest over movables) informs the bailor before incurring them, EXCEPT
if they are so urgent that reply cannot be awaited
Bailment - the delivery of property of one person without danger.
to another in trust for a specific purpose, with a
contract, express or implied, that the trust shall be However, if the extraordinary expenses arise on
faithfully executed and the property returned or occasion of actual use by bailee, even without
duly accounted for when a special purpose is fault, they shall be borne equally by bailor and
accomplished or kept until the bailor reclaims it. bailee, unless there is a stipulation to contrary.
Generally, it is contractual, but may also be
created by operation of law. Art. 1951 (05, BAR): Bailor who knows flaws but
does not advise bailee is liable to bailee for
Parties in Bailment damages suffered because of flaws.
Bailor– The lender/giver; the party who delivers
possession/custody of the thing bailed General Rule: Bailee has no right of retention on
Bailee – The recipient; the party who receives the the ground that the bailor owes him something.
possession/custody of the thing delivered
Exception: Art. 1951 on hidden defects.
Art. 1933 (06, 04, BAR): If the bailor delivers to
the bailee a non-consumable thing so that bailee I. LOAN
may use the same for a certain time and return the
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Characteristics i. There is no stipulation as to the
1. Real Contract – delivery is essential for duration of the contract or use of
perfection of the loan (BUT a promise to lend, the thing loaned.
being consensual, is binding upon the ii. Use of the thing is merely
parties). tolerated by the owner. (Art. 1947)
2. Unilateral Contract - only the borrower has
the obligation once the subject matter has III. SIMPLE LOAN
been delivered.
Mutuum or Simple Loan - lender delivers to the
II. COMMODATUM borrower money or other consumable thing upon
the condition that the latter will pay the same
Commodatum – bailor delivers to bailee a non- amount of the same kind and quality. (Art. 1953)
consumable thing so that the latter may use it for LOAN CREDIT
a certain time and return the identical thing. Delivery by one party Ability of an individual
However, consumable goods may be the subject and the receipt by the to borrow money or
of commodatum if the purpose of the contract is other party of a given things by virtue of the
not the consumption of the object, as when it is sum of money or other confidence or trust
merely for exhibition. (Producers Bank of the consumable thing reposed by a lender
Philippines v. Court of Appeals, G.R. No. 115324, upon an agreement, that he will pay what
February 19, 2003). express or implied to he may promise w/in a
repay the same specified period
Commodatum Usufruct amount of the same
The bailee only The usufructuary gets kind and quality, w/ or
acquires the use of the the right to the use and w/o interest
thing loaned but not its to the fruits of the
fruits. (Art. 1935) usufruct. (Art. 564) COMMODATUM MUTUUM
It creates only a It creates a real right Ordinarily not Money or other
purely personal right to the fruits of consumable consumable thing
to use another’s another’s property. Exception:
property, and requires (Art. 564) Consumable goods
a stipulation to enable may be the subject of
the bailee to “make commodatum if the
use” of the fruits. (Arts. purpose of the
1939-1940) contract is not the
Real contract; Consensual contract consumption of the
perfected only by object, as when it is
delivery of the subject merely for exhibition
matter thereof. (Art. (Art. 1936).
1934) Ownership is retained Ownership is
by the lender transferred to the
Elements of commodatum borrower
1. Delivery of non-consumable thing; Essentially gratuitous Gratuitous or onerous,
2. Obligation to return it (Art. 1933). that is with stipulation
to pay interest
Kinds of commodatum
(a) Ordinary commodatum – bailee uses the
thing for a certain period of time.
(b) Precarium – bailor may demand the thing
loaned at will; exists in cases where:
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Borrower must return Borrower need only If the obligation consists in the payment of a sum
the same thing loaned pay or return a of money, and the debtor incurs in delay, the
consumable thing of indemnity for damages, there being no stipulation
the same amount of to the contrary, shall be the payment of the interest
the same kind and agreed upon, and in the absence of stipulation, the
quality legal interest, which is six per cent per annum.
May involve real or Only personal (Art. 2209)
personal property property
Beginning July 1, 2013, the rate of interest on the
Loan for use or Loan for consumption loan or forbearance on money, goods, or credits
temporary possession and the rate allowed in judgments, in the absence
Bailor may demand Lender may not of stipulation, shall be 6% per annum (BSP
the return of the thing demand its return Circular No. 799).
loaned before the before the lapse of the
expiration of the term term agreed upon However, judgments that became final and
in case of urgent need Exception: When the executory before July 1, 2013 shall continue to
NOTE: In case of debtor loses every apply the previous legal rate of 12% per annum
temporary use by the right to make use of (NACAR v. Gallery Frames Inc., G.R. No. 189871,
bailor, the contract of the period. (Art. 1198) 2013).
commodatum is
suspended while the NOTE: The computation of the amount due must
thing is in the take into consideration the legal rate or rates (6%
possession of the and/or 12% per annum) applicable throughout the
bailor (Art. 1946(2)). duration of the period in which interest runs.
Loss of the subject Borrower suffers the (DPWH Secretary vs. Spouses Tecson, G.R. No.
matter is suffered by loss even if caused 179334, 2015)
the bailor since he is exclusively by a
the owner fortuitous event and LAW, RULE, DATE OF LEGAL
he is not therefore REGULATION, EFFECTIVITY INTEREST
discharged from his BSP RATE
duty to pay ISSUANCE
Purely personal Not purely personal Act. No. 2655 May 1, 1916 6%
The lender taking into CB Circular July 29, 1974 12%
account the character, No. 416
credit, and conduct of CB Circular December 22, 12%
the borrower. (De No. 905 1982
Leon, 2016) CB Circular July 1, 2013 6%
No. 799
IV. INTERESTS ON LOAN (DPWH Secretary vs. Spouses Tecson, G.R. No.
179334, 2015)
No interest shall be due unless it has been The Court finds the stipulated 5% monthly interest
expressly stipulated in writing (Art. 1956). to be excessive and unconscionable. In a plethora
of cases, the Court has affirmed that stipulated
a. Conventional Interest
interest rates of three percent (3%) per month and
It is the interest on the cost of borrowing money. higher are excessive, iniquitous, unconscionable,
(Spouses Abella v. Spouses Abella, G.R. No. and exorbitant, hence, illegal and void for being
195166, July 8, 2015). contrary to morals. In Agner v. BPI Family Savings
Bank, Inc., the Court had the occasion to rule:
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Stipulated interest rates of 3% per month and legal interest prescribed by the Bangko
higher are excessive, iniquitous, unconscionable, Sentral ng Pilipinas, which shall be
and exorbitant. While CB Circular No. 905-82, computed from default, i.e., from
which took effect on Jan. 1, 1983, removed the extrajudicial or judicial demand in
ceiling on interest rates for loans, nothing in the accordance with Article 1169 of the Civil
circular could possibly be read as granting Code, UNTIL FULL PAYMENT, without
authority to lenders to raise interest rates to levels compounding any interest unless
which would either enslave their borrowers or lead compounded interest is expressly stipulated
to a hemorrhaging of their assets. Since the by law or regulation. Interest due on the
stipulation on the interest rate is void for being principal amount accruing as of judicial
contrary to morals, it is as if there was no express demand shall SEPARATELY earn legal
contract on said interest rate; thus, the rate may interest at the prevailing rate prescribed
be reduced as reason and equity demand. by the Bangko Sentral ng Pilipinas, from
(Marilag v. Martinez, G.R. No. 201892, 2015) the time of judicial demand UNTIL FULL
PAYMENT.
Computation of Legal Interest
The Supreme Court, in Lara’s Gifts & Decors v. 3. When the obligation, not constituting a loan
Midtown Industrial Sales, G.R. No. 225433, 2019, or forbearance of money, goods, credits
modified the new guid∆elines on the imposition of or judgments, is breached, an interest on
interest as provided in Eastern Shipping Lines v. the amount of damages awarded may be
CA, G.R. No. 97412, 1994 and NACAR v. Gallery imposed in the discretion of the court at
Frames, G.R. No. 189871, 2013: the prevailing legal interest prescribed by
the Bangko Sentral ng Pilipinas, pursuant
1. When the obligation is breached, and it to Articles 2210 and 2011 of the Civil Code.
consists in the payment of a sum of No interest, however, shall be adjudged on
money, i.e., a loan or forbearance of unliquidated claims or damages until the
money, goods, credits or judgments, the demand can be established with reasonable
interest due shall be that which is stipulated certainty. Accordingly, where the amount of
by the parties in writing, provided it is not the claim or damages is established with
excessive and unconscionable, which, in the reasonable certainty, the prevailing legal
absence of a stipulated reckoning date, shall interest shall begin to run from the time the
be computed from default, i.e., from claim is made extrajudicially or judicially
extrajudicial or judicial demand in (Art. 1169, Civil Code) UNTIL FULL
accordance with Article 1169 of the Civil PAYMENT, but when such certainty cannot
Code, UNTIL FULL PAYMENT, without be so reasonably established at the time
compounding any interest unless the demand is made, the interest shall begin
compounded interest is expressly stipulated to run only from the date of the judgment
by the parties, by law or regulation. Interest of the trial court (at which time the
due on the principal amount accruing as quantification of damages may be deemed
of judicial demand shall SEPARATELY to have been reasonably ascertained)
earn legal interest at the prevailing rate UNTIL FULL PAYMENT. The actual base
prescribed by the Bangko Sentral ng for the computation of the interest shall,
Pilipinas, from the time of judicial demand in any case, be on the principal amount
UNTIL FULL PAYMENT. finally adjudged, without compounding
any interest unless compounded interest is
2. In the absence of stipulated interest, in a loan expressly stipulated by law or regulation.
or forbearance of money, goods, credits
or judgments, the rate of interest on the Any other monetary judgment which does not
principal amount shall be the prevailing involve or which has nothing to do with loans or
Page 348 of 474

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forbearance of any money, goods or credit does Bank v. Spouses Beluso, G.R. No. 159912,
not fall within its coverage for such imposition is August 17, 2007).
not within the ambit of the authority granted to the
Central Bank. When an obligation not constituting e. Usury
a loan or forbearance of money is breached then
Usury – may be defined as contracting for or
an interest on the amount of damages awarded
receiving something in excess of the amount
may be imposed at the discretion of the court at
allowed by law for the loan or forbearance of
the rate of 6% per annum in accordance with Art.
money, goods or chattels. (De Leon, citing
2209 of the Civil Code. (Philippine National Bank
Tolentino v. Gonzales, 50 Phil. 558 (1927)).
v. Court of Appeals, G.R. No. 123643 (Resolution),
While it is true that the interest ceilings set by the
October 30, 1996)
Usury Law are no longer in force, it has been held
that PD 1684 and CB Circular 905 merely allow
The judgments spoken of and referred to are
contracting parties to stipulate freely on any
judgments in litigations involving loans or
adjustment in the interest rate on a loan by
forbearance of any money, goods or credits. Any
forbearance of money but do not authorize a
other kind of monetary judgment which has
unilateral increase of the interest rate by one party
nothing to do with, nor involving loans or
without the other's consent (PNB v. CA, G.R. No.
forbearance of any money, goods or credits does
L-26001, 1968).To say otherwise will violate the
not fall within the coverage of the said law for it is
principle of mutuality of contracts under Article
not within the ambit of the authority granted to the
1308 of the CC. To be valid, therefore, any change
Central Bank. (Reformina v. Tomol, Jr., G.R. No.
of interest must be mutually agreed upon by the
L-59096, October 11, 1985).
parties. (Dizon v. Magsaysay, G.R. No. L-23399,
1974).
Any modification of stipulated interest (e.g.
In a loan agreement, compounding of interest has
allowing the creditor to unilaterally increase or
to be in writing to be valid. Payment of monetary
decrease the interest rate at any time) must be
interest shall be due only if: (1) there was an
mutually agreed upon, otherwise, it has no binding
express stipulation for the payment of interest; and
effect. Further, a borrower may not be required to
(2) the agreement for such payment was in writing.
prepay the loan if he is not agreeable to the
The first requirement does not only entail reducing
arbitrary interest rates being imposed. (Spouses
in writing the interest rate to be earned but also the
Silos v. PNB, G.R. No. 181045, 2014)
manner of earning the same, if it is to be
b. Interest on Interest compounded. (Albos v. Embisan, G.R. No.
210831, 2014).
It is the interest due on conventional interest. If a credit card provided failed to prove the pre-
(Spouses Abella v. Spouses Abella, G.R. No. screened client’s consent to the credit card’s terms
195166, July 8, 2015). and conditions, the client may only be charged
with legal interest. (Spouses Yulo v. BPI, G.R. No.
c. Compensatory, penalty or indemnity 217044, 2019).
interest A contract of loan with usurious interest in violation
of the Usury Law is valid as to the loan but void as
These are damages paid arising from delay in
to the usurious interest. In usurious loans, the
paying a fixed sum of money or delay in assessing
entire obligation does not become void because of
and paying damages. (Spouses Abella v. Spouses
an agreement for usurious interest; the unpaid
Abella, G.R. No. 195166, July 8, 2015).
principal debt still stands and remains valid but the
d. Finance charges stipulation as to the usurious interest is void,
consequently, the debt is to be considered without
These should be disclosed in connection with the stipulation as to the interest. (First Metro
extensions of credit under the R.A. No. 3765 or the Investment Corp. v. Este Del Sol Mountain
Truth in Lending Act. (United Coconut Planters
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Reserve, Inc., G.R. No. 141811, November 15,
2001).
The principal debt remaining with stipulation for
payment of interest can thus be recovered. In case
of judicial or extrajudicial demand, and the debtor
incurs in delay, the debt earns legal interest from
the date of the demand. Such interest is not due to
stipulation, for there was none, the same being
void. Rather, it is due to the general provision of
law that in obligations to pay money, where the
debtor incurs in delay, he has to pay interest by
way of damages. (Art. 2209, Civil Code)
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MONETARY COMPENSATORY COMPOUND FINANCE USURY
INTEREST INTEREST INTEREST CHARGES
Compensation Interest imposed by Interest on interest, Includes Excessive
fixed by the parties law or by courts as imposed either by interest, fees, interest; beyond
for the use or penalty or indemnity stipulation or by service that allowed by
forbearance of for damages for judicial demand charges, law
money. breach of discounts, and
contractual such other
obligations. charges
incident to the
extension of
credit as the
Board may by
regulation
provide (Sec.
3(3), RA 3765)
No interest shall be If the obligation Without prejudice n/a Contracts and
due unless it has consists in the to the provisions of stipulations,
been expressly payment of money, Article 2212, under any cloak
stipulated in writing and the debtor interest due and or device
(Art. 1956). incurs delay, the unpaid shall not whatever,
indemnity of earn interest. intended to
damages, there However, the circumvent the
being no stipulation contracting parties laws against
to the contrary, shall may by stipulation usury shall be
be the payment of capitalize the void. The
the interest agreed interest due and borrower may
upon, and in the unpaid, which as recover in
absence of added principal, accordance with
stipulation, the legal shall earn new the laws on
interest, which is 6% interest. (Art. 1959) usury. (Art. 1957)
p.a. (Art. 2209) Interest due shall Usurious
earn legal interest contracts shall be
from the time it is governed by the
judicially Usury Law and
demanded, other special
although the laws, so far as
obligation may be they are not
silent upon this inconsistent with
point. (Art. 2212) this Code. (Art.
1961)
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E. DEPOSIT JUDICIAL EXTRA-
JUDICIAL
Deposit - it is constituted from the moment a Creation Will of the Will of the
person receives a thing belonging to another, with court contracting
the obligation of safely keeping it and of returning parties
the same (Art. 1962). Purpose Security or to Custody and
ensure the safekeeping
NOTE: Safekeeping must be the principal purpose right of a
of the contract. Otherwise, it is not a deposit. party to the
property or to
Characteristics recover in
1. Real – because it is perfected only by the case of
delivery of the subject matter favorable
BUT: An agreement to constitute a judgment
deposit is binding and enforceable, since Subject Movable or Movables only
it is merely consensual Matter immovable
2. Unilateral - if gratuitous property, but
3. Bilateral - if with compensation generally
immovables
Creation of Deposit (Art. 1964) Cause Always May be
1. By virtue of a court order; or onerous compensated
2. By law but generally
3. By the will of the parties gratuitous
Return of Upon order of Gratuitous:
Kinds of Deposit thing the court / Upon demand
1. Judicial - when an attachment or seizure end of of the
of property in litigation is ordered litigation depositor; (Art.
2. Extrajudicial (Art. 1967) 1988) or return
a. Voluntary - delivery is made by the by depositary
will of the depositor or by two or more for justifiable
persons each of whom believes reasons (Art.
himself entitled to the thing deposited 1989)
b. Necessary - made in compliance with Compensated:
a legal obligation, or on the occasion The
of any calamity, or by travelers in depositary
hotels and inns or by travelers with may retain the
common carriers. There is lack of free thing in pledge
choice in the depositor. until full
payment of
General Rule: A deposit is generally gratuitous what may be
(Art. 1965). due him by
Exceptions: (JESS) reason of
1. When there is a contrary Stipulation deposit. (Art.
2. Where depositary is Engaged in the 1994)
business of storing goods In whose Person who Depositor or /
3. Where property is Saved from destruction behalf it is has a right 3rd person
without knowledge of the owner held designated
4. Judicial deposit
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Subject Matter of Deposit (Art. 1966) b) The depositor b) Pay the depositor
General rule: Only movable or personal property himself if he should the amount by w/c he
may be the object of deposit (whether voluntary or acquire capacity may have benefited
necessary); however, deposit does not include himself w/ the thing or
incorporeal/intangible property, such as rights its price subject to the
and actions, for it follows the owner, wherever he right of any 3rd person
goes and not susceptible of custody. who acquires the thing
in good faith
Exception: In judicial deposit, it may cover both
movable and immovable property. If the thing deposited is money or other
consumable thing, the permission to use it will
General rule: The depositor must be the owner of result in its consumption and converts the contract
the thing deposited. into a simple loan or mutuum. However, if
safekeeping is still the principal purpose of the
Exceptions: It may belong to another person than contract, it is still a deposit but an irregular one;
the depositor, hence, an Irregular Deposit. Example: Bank
1. When two or more persons claiming to be deposit. (De Leon)
entitled to a thing may deposit the same BASIS IRREGULAR MUTUUM
with a third person. In such case, the third DEPOSIT
person assumes the obligation to deliver Demandability Demandable Lender is
to the one to whom it belongs. at will of the bound by the
2. Interpleader – the action to compel the irregular provisions of
depositors to settle their conflicting claims. depositor for the contract
Here, one of the depositors is not the whose and cannot
owner. benefit the seek
deposit has restitution
Form of Contract of Deposit been until the time
General rule: A contract of deposit may be constituted of payment
entered into (but not perfected) orally or in writing as provided
(Art. 1969) in the
contract has
However: Delivery of the thing deposited is arisen
needed for perfection. (except
under Article
DEPOSITARY DEPOSITARY 1198)
CAPACITATED, INCAPACITATED Benefit Benefit If with
DEPOSITOR , DEPOSITOR accrues to interest,
INCAPACITATE CAPACITATED the depositor benefit of
D both parties
Depositary is subject Depositary does not
to ALL the obligations incur the obligations of
of a depositary a depositary Preference of Depositor Thing loaned
Depositary must Depositary, however, credit has enjoys no
return the property is liable to: preference preference in
either to: a) Return the thing over other the
a) The legal deposited while still creditors with distribution
representative of in his possession; respect to of the
the incapacitated, AND thing debtor’s
OR deposited property
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(Rogers v. diligence which the depositary is
Smith, Bell & accustomed with respect to his
Co., G.R. No. own property.
L-4347,
March 9, NOTE: The depositary cannot excuse
1908) himself from liability, in the event of loss,
by claiming that he exercised the same
Obligations of the Depositary amount of care toward the thing deposited
1. Safekeep the thing deposited as he would towards his own if such care
2. Return the thing on the date stipulated or is less than that required by the
when depositor claims it circumstances.
3. Not to transfer deposit
4. Not to change the way of deposit b. Return of the thing when depositor
5. To collect on the choses in action deposited claims it
6. Not to commingle things if so stipulated Even though a specified term or time for
7. Not to make use of the things so deposited such may have been stipulated in the
8. Liability for loss through fortuitous event contract.
9. Obligation when the thing is closed and
sealed Obligation not to Transfer deposit (Art. 1973)
10. To return products, accessories and General rule: The depositary is not allowed to
accessions deposit the thing with a third person.
11. To pay interest on sums converted to
personal use Reason: A deposit is founded on trust and
12. Cannot require that the depositor prove his confidence and it can be supposed that the
ownership over the thing depositor, in choosing the depositary, has taken
13. Obligation when third person appears to be into consideration the latter’s qualification.
the owner
14. Obligation when there are two or more Exception: The depositary is authorized by
depositors express stipulation.
15. To return to the person to whom return must
be made Liabilities: Depositary is liable for loss of the
16. Liability in case of loss by force majeure or thing deposited when
government order a. He transfers the deposit with a third
17. Liability in case of alienation of depositary’s person without being authorized to do so
heir although there is no negligence on his part
and the third person;
Two primary obligations (Art. 1972) b. He deposits the thing with a third person
a. Safekeeping of the object who is manifestly careless or unfit
Degree of Care – same diligence as he although authorized, even in the absence
would exercise over his property (ordinary of negligence; or
diligence/diligence of a good father). c. The thing is lost through the negligence of
his employees whether the latter are
Reasons: manifestly careless or not.
i. Essential requisite of judicial
relation which involves the Exemption from liability: The thing is lost without
depositor’s confidence in his good the negligence of the third person with whom he
faith and trustworthiness. was allowed to deposit the thing if such third
ii. The presumption that the person is not “manifestly careless or unfit” (e.g.,
depositor took into account the minor).
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Obligation not to change the way of deposit General rule: The depositary is permitted to
General rule: Depositary may not change the way commingle grain or other articles of the same kind
of the deposit. (Art. 1974) and quality
Exception: If there are circumstances indicating Effects:
that the depositor would consent to the change. a. The various depositors of the mingled
This is a situation wherein the depositary would goods shall own the entire mass in
reasonably presume that the depositor would common.
agree to the change if he knows of the facts of the b. Each depositor shall be entitled to such
situation. (Art. 1974) portion of the entire mass as the amount
Requisites: deposited by him bears the whole.
a. The depositary must notify the depositor
of such change; and Exception: When there is a stipulation to the
b. Must wait for the reply of the depositor to contrary.
such change.
Obligation not to make Use of the things
NOTE: These requisites may not be dispensed deposited (Art. 1977)
with if delay would cause danger. General rule: Deposit is for safekeeping of the
subject matter and not for its use.
Obligation to Collect Interest on the choses in Exceptions:
action deposited (Art. 1975) a. Expressly authorized by the depositor.
• If the thing deposited should earn interest, b. Such use is necessary for its preservation
the depositary is under the obligation to: but limited for the purpose only.
a. Collect the interest as it becomes • Effect of unauthorized use:
due. Liability for damages
b. Take such steps as may be • Effects of authorized use: (Art.
necessary to preserve its value 1978)
and the right corresponding to it.
• The depositary is bound to collect the If the thing deposited is non-consumable (Art.
capital, as well as the interest, when due. 1978)
General rule: The contract loses the character of
NOTE: The obligation to collect in the choses in a deposit and acquires that of a commodatum,
action does not apply to contracts for the rent of despite the fact that the parties may have
safety deposit boxes. denominated it as a deposit.
Exception: Safekeeping is still the principal
Contract of rent of safety deposit boxes (Art. purpose of the contract.
1975)
• A contract for the rent of safety deposit If the thing deposited is money or other
boxes is not an ordinary contract of lease consumable thing:
of things, but a special kind of deposit; General rule: Converts the contract into a simple
hence, it is not to be strictly governed by loan or mutuum
the provisions on deposit. Exception: Safekeeping is still the principal
• The prevailing rule in the US is that the purpose of the contract, but it becomes an
relation between a bank renting out safety irregular deposit. Bank deposits are in the nature
deposit boxes and its customer with of irregular deposits but they are really loans
respect to the contents of the box is that of governed by the law on loans.
bailor and bailee. An instrument acknowledging receipt of a sum of
money as a deposit returnable two months after
Obligation not to Commingle things if so notice with interest is evidence of a contract of loan
stipulated (Art. 1976)
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and not of deposit. (Gavieres v. Pardo de Tavera, c. Keep the secret of the deposit when the
G.R. No. 6, November 14, 1901) seal or lock is broken, with or without his
fault.
Liability for Loss through fortuitous event (Art.
1979) When depositary justified in opening closed
General rule: Depositary is not liable for loss of and sealed subject matter (Art. 1982):
the thing deposited through a fortuitous event a. The depositary is presumed authorized to
without his fault. (Art. 1174) do so if the key has been delivered to him.
b. When the instructions of the depositor as
Exceptions: (USDA) regards the deposit cannot be executed
a. If it is so Stipulated without opening the box or receptacle
b. If he Uses the thing without the depositor’s (Necessity).
permission
c. If he Delays in its return Where Third person appears to be the owner
d. If he Allows others to use it, even though (Art. 1984)
he himself may have been authorized to The depositary may be relieved from liability
use the same when:
a. He advised the true owner of the thing of
NOTE: Liability for loss without fortuitous event: the deposit.
Depositary presumed at fault since he is in b. If the owner, in spite of such information,
possession (Art. 1265) does not claim it within the period of one
Relation between bank and depositor (Art. month (30 days), and the depositary
1980) returns the thing deposited to the
Fixed, savings, and current deposits of money in depositor.
banks and similar institutions shall be governed by
the provisions concerning simple loan. Obligation of the depositary when there are
a. Contract of loan – deposits in banks are two or more depositors (Art. 1985)
really loans because the bank can use the a. Divisible thing and joint depositors – each
same for its ordinary transactions. one of the depositors can demand only his
b. Relation of creditor and debtor – the share proportionate thereto
relation between a depositor and a bank is General rule: Each one of the depositors
that of a creditor and a debtor. may do whatever may be useful to the
others (Art. 1212)
A bank has a right of set off of the deposit in its
hands for the payment of any indebtedness to it on Exception: Anything which may be
the part of the depositor. (Gullas v. Philippine prejudicial to the other depositors
National Bank, G.R. No. 43191, November 13,
1935) b. Indivisible thing or solidary depositors –
rules on active solidarity
Obligation when the thing deposited is Closed General rule: The depositary may return
and Sealed (Art. 1981) the thing to any one of the solidary
depositors
The depositary has the obligation to: Exception: When a demand, judicial or
a. Return the thing deposited when delivered extrajudicial, for its return has been made
closed and sealed in the same condition. by one of them in which case delivery
b. Pay for damages should the seal or lock should be made to him
be broken through his fault, which is
presumed unless proven otherwise. c. Return to one of the depositors stipulated
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• If by stipulation, the thing should b. When notified of the opposition of a third
be returned to one of the person to the return or the removal of the
depositors, the depositary is thing deposited.
bound to return it only to the
person designated, although he Right of the depositary to return the Thing
has not made any demand for its deposited (Art. 1989)
return. NOTE: In this case, it is the depositary returning
the deposit with or without the demand of the
Obligation to Return to the person to whom depositor.
return must be made (Art. 1986) General rule: The depositary may return the thing
a. The depositary is obliged to return the deposited, notwithstanding that a period has been
thing deposited, when required, to: fixed for the deposit, if:
i. The depositor; a. The deposit is gratuitous
ii. To his heirs or successors; or b. The reason is justifiable
iii. To the person who may have • Remedy if depositor refuses to
been designated in the contract. receive the thing: The depositary
b. If the depositor was incapacitated at the may deposit the thing at the
time of making the deposit, the property disposal of the judicial authority.
must be returned to:
i. His guardian or administrator Exception: When the deposit is for a valuable
ii. To the depositor himself should consideration, the depositary has no right to return
he acquire capacity the thing before the expiration of the time
c. Even if the depositor had capacity at the designated even if he should suffer inconvenience
time of making the deposit, but he as a consequence.
subsequently loses his capacity during the Depositary’s liability in case of Loss by force
deposit, the thing must be returned to his majeure or government order (Art. 1990)
legal representative. Depositary is not liable in cases of loss by force
majeure or by government order. However, he has
Obligation to return at the Place of return the duty to deliver to the depositor money or
General rule: At the place agreed upon by the another thing he receives in place of the thing.
parties, transportation expenses shall be borne by Liability in case of alienation by the
the depositor (Art. 1987) depositary’s Heir (Art. 1991)
Exception: In the absence of stipulation, at the • When alienation is done in good faith:
place where the thing deposited might be even if it a. Return the value of the thing
should not be the same place where the original deposited; or
deposit was made b. Assign the right to collect from the
NOTE: Same as the general rule of law regarding buyer
the place of payment (Art. 1251) • The heir does not need to pay the
actual price of the thing
Obligation to return upon the Time of return deposited.
(Art. 1988)
General rule: The thing deposited must be • When alienation is done in BAD FAITH:
returned to the depositor upon demand, even a. Liable for damages; and
though a specified period of time for such return b. Pay the actual price of the thing
may have been fixed deposited
Exceptions:
a. When the thing is judicially attached while Depositary may retain the thing in his
in the depositary’s possession. possession until the full payment of what may
be due him by reason of the deposit. (Art. 1994)
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• Pledges created by operation of law under Art. the law really means that the
1994 are governed by the articles on the depositary is not obliged to continue
possession, care and sale of the thing, and the with the contract of deposit.
termination of the pledge. But after payment of b. Deposit for compensation – not
the debt and expenses, the remainder of the extinguished by the death of either
price of the sale shall be delivered to the party.
obligor. (Art. 2121)
• A thing under a pledge by operation of law Extinguishment of Deposit
may only be sold by public auction after 1. Upon the loss or deterioration of the thing
demand of the amount for which the thing is deposited;
retained, which shall take place within one 2. Upon the death of the depositary, only in
month after such demand. If the creditor, gratuitous deposits;
without just grounds, does not cause the 3. Other provisions in the Civil Code (novation,
public sale to be held within such period, the merger, etc.)
debtor may require the return of the thing. (Art.
2122) Extrajudicial Deposit: Necessary Deposit
When deposit is Necessary: (PLCT)
The thing retained serves as security for the 1. It is made in compliance with a Legal
payment of what may be due to the depositary by obligation.
reason of the deposit (see Arts. 1965, 1992 & 2. It takes place on the occasion of any Calamity,
1993). such as fire, storm, flood, pillage, shipwreck,
or other similar events.
Obligations of the Depositor (PLD) • There must be a causal relation
1. Obligation to Pay expenses of preservation between the calamity and the
(Art. 1992) constitution of the deposit.
• Applies only when the deposit is 3. Made by Passengers with common carriers.
gratuitous • As to baggage the passengers or their
2. Obligation to pay Losses incurred due to agents carry
character of thing deposited (Art. 1993) 4. Made by Travelers in hotels or inns. (Art.
General rule: The depositary must be 1998)
reimbursed for loss suffered by him because • Before keepers of hotels or inns may
of the character of the thing deposited. be held responsible as depositaries
with regard to the effects of their
Exceptions: guests, the following must concur:
a. Depositor was not aware of the
danger. Elements:
b. Depositor was not expected to know a. They have been previously informed
the dangerous character of the thing. about the effects brought by the guests;
c. Depositor notified the depositary of and
such dangerous character. • Is notification required before the common
d. Depositary was aware of the danger carrier becomes liable for lost belongings that
without advice from the depositor. remained in the custody of the passenger?
NO.
3. Effect of Death of depositor or depositary (Art.
1995) Actual delivery of the goods to the innkeepers
a. Deposit gratuitous – death of either of or their employees is unnecessary before
the depositor or depositary liability could attach to the hotelkeepers in the
extinguishes the deposit (personal in event of loss of personal belongings of their
nature). By the word “extinguished,” guests considering that the personal effects
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were inside the hotel or inn because the When hotelkeeper liable: (Arts. 2000 – 2002)
hotelkeeper shall remain accountable. NOTE: In the following cases, the hotel-keeper is
Accordingly, actual notification was not liable regardless of the amount of care exercised:
necessary to render the petitioner as the a. The loss or injury to personal property is
common carrier liable for the lost personal caused by his servants or employees as
belongings of Sesante. By allowing him to well as by strangers. (Art. 2000)
board the vessel with his belongings without b. The loss is caused by the act of a thief or
any protest, the petitioner became sufficiently robber done without the use of arms or
notified of such belongings. So long as the irresistible force. (Id., Art. 2001)
belongings were brought inside the premises
of the vessel, the petitioner was thereby Reason: Hotelkeeper is apparently negligent.
effectively notified and consequently duty- When hotelkeeper not liable:
bound to observe the required diligence in a. The loss or injury is caused by force
ensuring the safety of the belongings during majeure, like flood, fire, theft or robbery by
the voyage. Applying Article 2000 of the Civil a stranger (not the hotel-keeper’s servant
Code, the petitioner assumed the liability for or employee) with the use of firearms or
loss of the belongings caused by the irresistible force.
negligence of its officers or crew. In view of our Exception: Unless the hotel-keeper is
finding that the negligence of the officers and guilty of fault or negligence in failing to
crew of the petitioner was the immediate and provide against the loss or injury from his
proximate cause of the sinking of the M/V cause
Princess of the Orient, its liability for Sesante's
lost personal belongings was beyond b. The loss is due to the acts of the guests,
question. (Sulpicio Lines v. Sesante, 2016) his family, servants, visitors.
c. The loss arises from the character of the
b. The guests have taken the precautions things brought into the hotel.
prescribed regarding their safekeeping.
Exemption or diminution of liability:
Extent of liability: The hotelkeeper cannot free himself from
a. Liability in hotel rooms which come under responsibility by posting notices to the effect that
the term “baggage” or articles such as he is not liable for the articles brought by the guest
clothing as are ordinarily used by travelers (Art. 2003)
b. Include those lost or damages in hotel Effect: Any stipulation between the hotel-keeper
annexes such as vehicles in the hotel’s and the guest whereby the responsibility of the
garage. former (as set forth in Arts. 1998-2001) is
• When the traveler avails of the suppressed or diminished shall be void.
valet service of hotels. The
contract of deposit is perfected Hotel-keeper’s right to retain
from the traveler’s delivery of the The hotel-keeper has a right to retain the things
keys to the vehicle to the hotel, brought into the hotel by the guest, as a security
who has the obligation to safely for credits on account of:
keep and return it to the owner. a. Lodging
Loss of the vehicle on the hotel’s b. Supplies usually furnished to hotel guests
premises or annexes may give
rise to a claim of damages. Reason: It is given to hotel-keepers to
(Durban Apartments v. Pioneer compensate them for the liabilities imposed upon
Insurance, G.R. No. 179419, them by law. The right of retention recognized in
2011). this Article is in the nature of a pledge created by
operation of law.
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• In compliance with a legal obligation BASIS JUDICIAL EXTRA-
(governed by the law establishing it, and in DEPOSIT JUDICIAL
case of deficiency, the rules on voluntary DEPOSIT
deposit e.g. Arts. 538, 586 and 2104). Cause or By will of the By will of the
• Made on the occasion of any calamity origin courts parties.
(governed by the rules on voluntary deposit Hence, there
and Art. 2168). is a contract
Purpose. Security; Custody;
Hotel-keeper’s right to sell Secure the Safekeeping
The hotel-keeper’s right to sell the things brought right of a of the thing
into the hotel by the guest as credit security arises party to
when such credit (on account of lodging and recover in
supplies usually furnished to hotel guests) has not case of
been satisfied in due time. The hotel-keeper may favorable
proceed before a Notary Public to the sale of the judgment.
thing pledged. This sale shall be made at a public Subject Either Only
auction, and with notification to the debtor and the Matter movable or movable
owner of the thing pledged in a proper case, immovable property
stating the amount for which the public sale is to property but
be held. (The right of retention of hotel-keepers is generally,
in the nature of a pledge created by operation of immovable
law under Art. 2112) Remuneration Always Generally
Sequestration or judicial deposit remunerated gratuitous,
When judicial deposit takes place: When an (onerous) but may be
attachment or seizure of property in litigation is compensated
ordered by a court. (Art. 2005) In whose In behalf of In behalf of
Nature: Auxiliary to a case pending in court. behalf it is the person the depositor
Purpose: To maintain the status quo during the held who, by the or third
pendency of the litigation or to insure the right of judgment, person
the parties to the property in case of a favorable has a right designated
judgment
Depositary of sequestered property: person ————- end of topic ————-
appointed by the court. (Art. 2007)
Obligations:
1. To take care of the property with the
diligence of a good father of the family.
(Art. 2008)
2. He may not be relieved of his
responsibility until the litigation is ended or
the court so orders. (Art. 2007)
Applicable law: The law on judicial deposit is

remedial or procedural in nature. Hence, the Rules
of Court are applicable. (Art. 2009)
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F. ANTICHRESIS unless there is a stipulation to the
contrary. If he does not pay the taxes,
Antichresis – a contract whereby the creditor then he will be obliged to pay
acquires the right to receive the fruits of an indemnity for damages to the debtor.
immovable of the debtor, with the obligation to (Pando v. Gimenez, G.R. No. L-
apply them to the payment of the interest, if owing, 31816, February 15, 1930).
and thereafter to the principal of the credit. (Art.
2132) NOTE: Creditor may avoid said obligation
Characteristics by:
1. Accessory contract – it secures the a. Compelling debtor to reacquire
performance of a principal obligation. enjoyment of the property; or
2. Formal contract – it must be in a specified b. By stipulation to the contrary.
form to be valid (Art. 2134) Amount of
principal and interest must be in writing. 2. To apply all the Fruits, after receiving
them, to the payment of interest, if owing,
Special Requisites: and thereafter to the principal;
1. Only the fruits of an immovable property; 3. To render an Account of the fruits to the
2. Delivery of the immovable is necessary for debtor; and
the creditor to receive the fruits and not 4. To bear the Expenses necessary for its
that the contract shall be binding; preservation and repair.
3. Amount of principal and interest must be
specified in writing (otherwise, void); and Remedies of Creditor in Case of Non-Payment
4. Express agreement that debtor will give of Debt
possession of the property to creditor and 1. Action for specific performance; or
that the latter will apply the fruits to the 2. Petition for the sale of the real property as
interest, if any, then to the principal of his in a foreclosure of mortgages under Rule
credit. 68 of the Rules of Court.
NOTE: The obligation to pay interest is not NOTE: The parties, however, may agree on an
essential in a contract of antichresis, there being extrajudicial foreclosure in the same manner as
nothing in the Code to show that antichresis is only they are allowed in contracts of mortgage and
applicable to securing the payment of interest- pledge. (Tavera v. El Hogar Filipino, Inc., G.R. No.
bearing loans. On the contrary, antichresis is L-45963, 1939)
susceptible of guaranteeing all kinds of
obligations, pure or conditional. A stipulation authorizing the antichretic creditor to
appropriate the property upon the non-payment of
Obligations of an Antichretic Creditor (FATE) the debt within the agreed period is void. (Art.
1. To pay Taxes and charges on the estate, 2088)
including necessary expenses;
• The creditor is obliged to pay the
taxes and charges upon the estate
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COMMODATUM MUTUUM DEPOSIT BARTER
Movable or
immovable
Fungible /
Except: Movable / personal Non-consumable or
Object consumable
consumable if used property consumables
(e.g., money)
for exhibition
purposes only
Temporary use of
Purpose Consumption Safekeeping
the thing
Exchange (sale)
Take care of the
Take care of the
thing
thing with due
diligence Return a thing of
Do not use the thing Deliver another
Obligation the same kind and
deposited unless thing in exchange
Return the thing quality
authorized or is
upon expiration of
required for its
period or purpose
preservation
Passes to the other
Status of Retained by the
Retained by bailor Passes to bailee party (mutual
Ownership depositor
exchange)
Anytime, if no
period or purpose
has been agreed Only after the
Cannot demand
upon or if by mere expiration of the
Anytime, unless for return because
tolerance only period
compensation contract is already
Ability to demand (precarium) Exception: Art.
(depositary has extinguished
return 1198 when the
right of retention)
If there is an urgent debtor loses every
Rescission only if
necessity right to make use of
grounds exist
the period
Acts of ingratitude
by the bailee
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G. LEASE Exception: Lease of real property for more than
one year (must be in writing to comply with Statute
I. GENERAL PROVISIONS of Frauds).
Contract of Lease is a contract by which one

agrees to give to the other for a fixed time and 2. LEASE OF WORK AND SERVICES
price the use or profit of a thing or his services (The
• One of the parties binds himself to execute a
Employees’ Club, Inc. v. China Banking
piece of work or to render to the other some
Corporation, G.R. No. L-40188, 1934).
service for a price certain
Characteristics of Lease of things (CLONS- • The relation of principal and agent does not
PEP-TP) exist between them
(a) Consensual CONTRACT OF CONTRACT OF

(b) Lessor need not be the owner LEASE OF SERVICE LEASE OF THING
(c) Onerous The object of the The object of a
(d) Nominate contract is the service contract is a thing
(e) Subject matter must be within the commerce itself and not the
of man (i.e., not belonging to the public result which it
domain) generates
(f) Principal contract Lessor’s services Lessor has to deliver
(g) Purpose is to allow enjoyment or use of a thing must still be paid the thing leased
(h) Purpose to which the thing will be devoted even if the result In case of breach,
should not be immoral intended is not there may be an
(i) Period is temporary attained action for specific
(j) Period may be definite or indefinite In case of breach, no performance
action for specific
performance
NOTE: Persons disqualified to buy under ARTS.
1490 and 1491 of the Civil Code are also
disqualified from becoming lessees of the things
mentioned therein. (Art. 1646)
Kinds of Leases II. LEASE OF RURAL AND URBAN LANDS
1. LEASE OF THINGS Elements of a Tenancy Agreement (PACAPS)
• Concerns movable or immovable property 1. Parties are the landowner and the tenant or
• One of the parties binds himself to give to agricultural lessee;
another the enjoyment or use of a thing 2. Subject matter of the relationship is an
• For a price certain and Agricultural land;
• For a period which may be definite or 3. There is Consent between the parties to the
indefinite relationship;
4. Purpose of the relationship is to bring about
NOTE: However, no lease for more than 99 years Agricultural production;
shall be valid. 5. There is Personal cultivation on the part of the
tenant or agricultural lessee; and
General Rule: The contract of lease may be made 6. Harvest is Shared between the landowner and
orally. the tenant or agricultural lessee.
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NOTE: Absence of any of the elements will not Development Corporation, G.R. No. 175678,
make the alleged tenant a de facto tenant. 2007)
What a tenant is estopped from denying is the title LEASE USUFRUCT

of his landlord at the time of the commencement Ownership on the Ownership of the
of the landlord-tenant relation. If the title asserted part of the lessor is thing on the part of
is one that is alleged to have been acquired not necessary to the grantor is
subsequent to the commencement of that relation, constitute a contract necessary to
the presumption will not apply. (Ermitaño v. of lease constitute a usufruct
Paglas, G.R. No. 174436, 2013) It is generally a It is always a real
personal right and is right
a real right only by
NOTE: A contract of civil law lease can prohibit a
exception
civil law lessee from employing a tenant on the
It is limited to the use It includes all
land subject matter of the lease agreement.
specified in the possible uses and
.(Crisostomo v. Victoria, G.R. No. 175098, 2015)
contract enjoyment of the
thing
Tenancy relations cannot be a means for vesting
Lessor places and Owner allows the
a tenant with security of tenure, such that he or she
maintains the lessee usufructuary to use
is effectively the landowner.(Crisostomo v.
in the peaceful and enjoy the
Victoria, G.R. No. 175098, 2015)
enjoyment of the property
thing
Rent is the compensation either in money,
provisions, chattels, or labor received by the lessor Its term is generally Its term may be for
from the lessee. for a definite period an indefinite period
It may be created by It may be created by
Requisites: contract as a general law, contract, last
rule will, or prescription
1. Must not be fictitious or nominal; otherwise
Lessee has no duty Usufructuary has the
the contract is considered essentially
to make repairs duty to make repairs
gratuitous;
Lessee has no duty Usufructuary has a
2. Must be capable of determination; and
to pay taxes duty to pay taxes
3. May be in the form of products, fruits, or
Lessee cannot Usufructuary may
construction, as long as it has value.
constitute a usufruct constitute a sublease
of the property
• Owner has the right to fix the rent because the
leased
contract is consensual and not imposed by
law. LEASE SALE
• Increasing the rent is NOT an absolute right of Only the use or Ownership is
the lessor. enjoyment is transferred
• If the rent is fixed for the first time, courts transferred
cannot interfere, but if it is a renewal, the Transfer is temporary Transfer is
courts can settle the disagreements. permanent
• There being no agreement on the reasonable Lessor need not be Seller must be the
compensation that a lessee must pay for its the owner owner at the time the
continuing use and occupation of the premises property is delivered
after the termination of the lease, it was proper The price of the Usually, the selling
for the lower courts to determine the same. object (distinguished price is mentioned
(MATERCCO v. First Landlink Asia from the rent) is
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usually not • Agent: principal
mentioned • Executor and administrators
• Public officer: state property
LEASE OF SERVICES AGENCY • Justices/judges: property under litigation
It is based on It is based on • Others disqualified by law
employment representation
– the lessor of services – agent represents Lease by Filipinos
does not represent his his principal and
employer, nor does he enters into juridical May lease lands of public domain with an area of
execute juridical acts acts 500 hectares and may acquire not more than 12
Principal contract Preparatory contract hectares.
Lease by Corporations
General Rule: A lease of real property is a
personal right.
At least 60% of Filipino-owned corporations, may
Exceptions: lease lands of public domain for a period of 25
years, renewable for not more than 25 years; the
i. If it is for more than one year and to be area not to exceed more than 1,000 hectares.
enforceable, it must be in writing.
ii. If it is registered with the Registry of Property, Rules on Lease of Things when Lessee is an
Alien
regardless of its period.
(a) 99-year limit applies to aliens as long as it is a
Effects if lease of real property is not lease of personal property.
registered (b) Aliens CANNOT lease public lands and
cannot acquire private lands except through
• The lease is not binding on third persons. succession.
• Such third person is allowed to terminate the (c) If lease of real property (private lands),
lease in case he buys the property from the maximum of 25 years renewable for another
owner-lessor. 25 years (P.D. 713).
(d) Under the Investor’s Lease Act (ILA) of 1995,
• Actual knowledge of existence and duration of
the 25-year period was extended to 50 years
lease is equivalent to registration.
renewable for another 25 years provided the
• Stranger knows of the existence of the lease
following conditions are met:
but was led to believe that the lease would
1. Lessee must make investments;
expire soon or before the new lease in favor of
2. Lease is approved by DTI; and
him begins, the stranger can still be
3. If terms are violated, DTI can terminate it
considered innocent.
Persons disqualified to become lessees NOTE: The ILA did not do away with P.D. 713.
Under ILA the consent of DTI is required, while in
(a) General Rule: Husband and wife cannot P.D. 713 it is not.
lease to each other their separate properties.
Rent Control Act of 2009
Exceptions:
Coverage:
i. If the property regime is complete
1. Lease of all residential unit in the NCR and
ii. By judicial decree of separation of
other highly urbanized cities, the total
property
monthly rent for each ranges from P1.00 to
(b) Those disqualified due to fiduciary relationship P10,000.00.
• Guardian: ward
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2. Lease of all residential unit elsewhere where ————- end of topic————-
the total monthly rental ranges from P1.00 to
P5,000.00.
III. RIGHTS AND OBLIGATIONS OF LESSOR
3. Rent-to-own units, commercial spaces,
AND LESSEE
motels and hotels are not covered.
Obligations of the Lessor (Art. 1654) (DNM)
Rent: the amount paid for the use of residential
unit excluding utilities, association dues, etc. 1. To Deliver the thing which is the object of the
contract in such condition as to render it fit for
Limitations: the use intended.
1. No landlord is allowed to increase the rent 2. To make on the same during the lease all the
more than seven percent (7%) annually if the Necessary repairs in order to keep it suitable
unit is occupied by the same tenant. Moreover, for the use to which it has been devoted unless
for landlords whose units are dormitories, bed there is a stipulation to the contrary.
spaces, or boarding houses that are rented to 3. To Maintain the lessee in the peaceful and
student, they are only allowed to increase rent adequate enjoyment of the lease for the entire
once a year. duration of the contract.
2. Lessor cannot demand from tenant more than
one (1) month advance rent and more than • This is true only if the contract is valid.
two (2) months deposit. Where the contract is void, for having an
3. Tenant is not allowed to sub-lease unless with existent contract of lease, the lessor has
the written consent of the landlord. no right to lease the same property.
(Bercero v. Capitol Development
Grounds for Eviction: Corporation, G.R. No. 154765, 2007)
1. Assignment and sub-leasing without consent
of landlord; Nature of the duty of the Lessor to maintain
2. Arrears in payment of rent for a total of three peaceful possession of the premises by the
(3) months; Lessor
3. Legitimate need of the owner/lessor to
This is merely a warranty that the lessee shall not
repossess his or her property for his or her
be disturbed in his legal, and not physical,
own use of for the use of an immediate
possession. (Chua Tee Dee v. Court of Appeals,
member of his or her family as a residential
G.R. No. 135721, 2004)
unit: Provided, however, That the lease for a
definite period has expired: Provided, further, Obligations of the Lessee (Art. 1657) (PUP)
That the lessor has given the lessee the formal
notice three (3) months in advance of the 1. Pay the price of the lease according to the
lessor's intention to repossess the property terms stipulated.
and: Provided, finally, That the owner/lessor is 2. Use the thing leased as a diligent father of a
prohibited from leasing the residential unit or family devoting it to the use stipulated, and in
allowing its use by a third party for a period of the absence of stipulation, to that which may
at least one (1) year from the time of be inferred from the nature of the thing leased,
repossession; according to the custom of the place.
4. Need of the lessor to make necessary repairs 3. Pay the expenses for the deed of lease.
of the leased premises, which is the subject of
an existing order of condemnation by Rights of the Lessee
appropriate authorities concerned in order to
1. Right to be respected in his possession.
make the said premises safe and habitable;
5. Expiration of the period of the lease contract.
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2. Right to be restored to said possession by the (a) Ask for Rescission, in case of substantial
means established by law or by the Rules of damage to him;
Court, should he be disturbed therein. (b) Order repairs at the lessor’s cost;
(c) Sue for damages; or
Remedies when lessor or lessee does not (d) Suspend the payment of the rent.
comply with their obligations
Effect of destruction of the subject matter with
(a) Rescission and damages; or respect to the lease
(b) Damages while allowing the contract to
remain in force. IF TOTALLY IF ONLY
DESTROYED PARTIALLY
DESTROYED
Remedy of lessee if lessor refuses to accept Lease is Lessee can choose
the rentals extinguished between reduction of
the rent and
To make a proper tender of payment and
rescission
consignation in order to extinguish the debt.
Rules on changing the form of the lease Rules upon Termination of Lease governing
useful improvements caused by the lessee
• The lessor can alter the thing leased provided (OAR)
there is no impairment of the use to which the
thing is devoted under the terms of the lease. If made in good faith and suitable to the use for
• The lessee can also make alterations so long which the lease is intended, without altering the
as the value of the property is not substantially form or substance of the property:
impaired. 1. Lessor may Appropriate the improvements
• The lessee can also make alterations so long provided he pays the lessee ½ of its value at
as the value of the property is not substantially that time;
impaired. 2. If lessor does not appropriate, lessee may
Remove the improvements even if the
Rules in case of urgent repairs principal thing may suffer damage;
3. If improvement is Ornamental, no right of
• If the repairs last for not more than 40 days, reimbursement, but lessee may remove them
the lessee is obliged to tolerate the work even provided no damage is caused to the principal
though the work may annoy him, or he may be thing.
deprived of a part of the premises if repairs last
for not more than 40 days.
• If repairs last for 40 days or more, lessee can NOTE: Lessee has no right of retention of the
ask for reduction of the rent in proportion to the premises if the lessor does not pay. His only right
time – including the 1st 40 days – and the part is right of removal if lessor does opt not to pay and
of the property of which he is deprived. appropriate.
Kinds of Trespass in Lease

NOTE: In either case, rescission may be availed
(a) Trespass in fact (perturbacion de mere
of if the main purpose of the lease is to provide a
hecho):
dwelling place and the property becomes
uninhabitable.
• Lessor is not liable for the mere fact of a
Effects if lessor fails to make urgent repairs trespass or trespass in fact made by a
third person of a leased property.
The lessee may (ROSS): • Mere fact or mere act of trespass is when
the third person claims no right whatever.
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• Physical enjoyment is reduced. necessity for lessee to duly notify lessor of his
desire to so extend the term, unless the
(b) Trespass in law (perturbacion de contrary is stipulated.
derecho): 2. “May be extended” as stipulation: lessee can
extend without lessor’s consent, but lessee
• A third person claims legal right to enjoy must notify lessor.
the premises 3. “May be extended for 6 years, agreed upon by
• Lessor will be held liable both parties” as stipulation: this must be
interpreted in favor of the lessee. Hence,
Duration of Lease ordinarily the lessee, at the end of the original
period, may either:
(a) Lease may be for a determinate time or
(a) Leave the premises
fixed period
(b) Remain in possession
• Lease will be for the said period and it 4. In co-ownership, assent of co-owner is
ends on the day fixed without need of a needed; otherwise, it is void or ineffective as
demand. against non-consenting co-owners.
5. Where according to the terms of the contract,
(b) Lease may be without a fixed period the lease can be extended only by the written
consent of the parties thereto, no right of
i. For rural lands (Art. 1682) - It shall be for extension can rise without such written
all time necessary for the gathering of consent.
fruits which the whole estate may yield in
1 year, or which it may yield once. Implied new lease (Tacita Reconducion)
ii. For urban lands (Art. 1687)
(i) If rent is paid daily, lease is from day • Lease that arises if at the end of the contract
to day. the lessee should continue enjoying the thing
(ii) If rent is paid weekly, lease is from leased for 15 days with the acquiescence of
week to week. the lessor, unless a notice to the contrary had
(iii) If rent is paid monthly, lease is from previously been given by either party.
month to month. • Period of the implied new lease is not that of
(iv) If rent is paid yearly, lease is from year the original contract, but the time established
to year. in Arts. 1682 and 1687 (see Duration of Lease
above).
The general rule is lease contracts survive the • Other terms of the original contract are revived
death of the parties and continue to bind the heirs except option to purchase in case such was in
except if the contract states otherwise. (Inocencio the original contract.
vs. Hospicio de San Jose, G.R. No. 201787, 2013)
NOTE: Terms that are revived are only those
The well-entrenched principle is that a lease from which are germane to the enjoyment of
month-to-month is with a definite period and possession, but not those with respect to special
expires at the end of each month upon the demand agreements which are by nature foreign to the
to vacate by the lessor. (Cebu Bionic Builders right of occupancy or enjoyment inherent in a
Supply, Inc. vs. Development Bank of the contract of lease – such as an option to purchase
Philippines, G.R. No. 154366, 2010) the leased premises. (Dizon v. Magsaysay, G.R.
No. 23399, 1974)
Rules on Extension of the Lease Period Requisites for Implied New Lease (ENC)
1. If a lease contract for a definite term allows 1. The term of the original contract has Expired;
lessee to extend the term, there is no
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2. The lessor has Not given the lessee a notice SUBLEASE ASSIGNMENT OF
to vacate; LEASE
3. The lessee Continued enjoying the thing Lessee remains a Lessee is
leased for at least 15 days with the party in the contract. disassociated from
acquiescence of the lessor. the original contract
of lease.
Two leases and two Only one (lessor-
When there is no implied new lease distinct juridical assignee who
relationship (lessor- becomes the
(a) When before or after the expiration of the
lessee and lessee)because
term, there is a notice to vacate given by
sublessor-sublessee) lessee transmits
either party.
absolutely his rights
(b) When there is no definite fixed period in the
and his personality
original lease contract as in the case of
disappears
successive renewals.
Sublessee does not Assignee has a direct
have any direct action against the
EXTENSION OF RENEWAL OF
action against the lessor, there being
LEASE CONTRACT LEASE CONTRACT
lessor novation
Original contract Original contract
Subleasing is Assignment is not
subsists ceases to exist
allowed unless there allowed unless the
Creates additional Creates a new
is an express lessor gives his
term contract
prohibition consent
Perpetual Lease
NOTE: The sub-lessee is primarily liable to his
• A lease contract providing that the lessee can sub-lessor and only a court can extinguish or
stay in the premises for as long as he wants modify this primary liability if the sub-lessor
contests the pre-termination of the principal lease
and for as long as he can pay the rentals and
by the lessor. (Tamio v. Ticson, G.R. No. 154895,
its increases. 2004)
• This is not permissible; it is a purely
potestative condition because it leaves the Circumstances when a sub-lessee is made
effectivity and enjoyment of leasehold rights to liable to the lessor:
the sole and exclusive will of the lessee. i. For all acts which affect the use and
preservation of the thing leased in the manner
Sublease stipulated between the lessor and the lessee.
• A lessee may sublease the thing leased ii. For any rent due to the lessor from the lessee
unless there is an express prohibition to do so. which the latter failed to pay:
• Remedy of lessor if lessee violates prohibition: • Sublessee is subsidiarily liable
action for rescission of the lease and • Sublessee shall not be responsible
damages.
beyond amount of rent due from him, in
• If the prohibition to sublease is not express but
only implied, the sublease will still be allowed. accordance with the terms of the
• Duration of sublease cannot be longer than sublease, at the time of the extrajudicial
that of the lease to which it is dependent. demand by the lessor.
• The prohibition against subleasing may not
embrace the taking in of boarders. (Mallare v. Grounds for Ejectment
Court of Appeals, G.R. No. 85108, 1989) (a) When the period agreed upon or that which is
• In a sublease arrangement, there are two fixed for the duration of leases (Arts.1682,
distinct leases: the principal lease and the
1687) has expired (see Duration of Lease).
sublease.
(b) Lack of payment of the price stipulated.
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• In case lessor refuses to accept rentals,
lessee should make tender of payment, IV. SPECIAL RULES FOR LEASE OF
and consignation otherwise there is no RURAL/URBAN LANDS
payment.
• Willingness to pay is not payment. A. Lease of Rural Lands
(c) Violation of any of the conditions agreed upon Reduction on lessee’s rent (Art. 1680)
in the contract.
ALLOWED NOT ALLOWED
(d) When the lessee devotes thing leased to any
Loss of more than ½ Sterility of the land
use or service not stipulated which causes the
of the fruits through leased
deterioration thereof, or if he does not observe
extraordinary and Loss of fruits due to
the requirement in Art. 1657.
fortuitous events ordinary fortuitous
In a contract of lease, the twin remedies of events
rescission and judicial ejectment become Unless: There is Fruits are lost after
available after either the failure to pay rent or to stipulation to the they have been
comply with the conditions of the lease. contrary separated from their
stalk, root or trunk
Technically, no extrajudicial rescission effectively (Art. 1681)
takes place as a result of the violations until the
demand to pay or comply is duly served and is NOTE: Extraordinary fortuitous events are
rejected or disregarded by the lessee. understood to be (supra):
(a) Fire;
The tenant's refusal to heed the demand to vacate,
(b) War;
coming after the demand to pay or to comply
(c) Pestilence;
similarly went unheeded, renders unlawful the
(d) Unusual flood;
continued possession of the leased premises.
(e) Locusts;
(Cebu Automatic Motors, Inc. vs. General Milling
(f) Earthquake;
Corporations, G.R. No. 151168, 2010)
(g) Uncommon events; and
The lessor may judicially eject the lessee for (h) Those which the contracting parties could
any of the following causes: (EPCU) not have unreasonably seen.
1. When the period agreed upon, or that OUTGOING INCOMING LESSEE

which is fixed for the duration of leases LESSEE
under Articles 1682 and 1687, has To allow the To permit the
Expired; incoming lessee or outgoing lessee to do
2. Lack of Payment of the price stipulated; the lessor the use of whatever may be
3. Violation of any of the Conditions agreed the premises and necessary for the
upon in the contract. other means gathering or
necessary for the harvesting and
Lessee devotes the thing leased to any Use or preparatory labor for utilization of the
service not stipulated which causes the the following year fruits, in accordance
deterioration thereof; or if he does not observe the with custom of the
requirement in No. 2 of Article 1657. place (Art. 1683)
————- end of topic————- B. Lease of Urban Lands
Custom of a place shall be observed as to the

kind of repairs for which the lessor shall be liable.
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In case of doubt, repairs are deemed chargeable
against lessor. (Art. 1686)
When furniture is leased by the lessor of a house

or a store, the lease of the former shall be deemed
for the duration of the lease of the premises. (Art.
1688)
Page 371 of 474

LAND TITLES
AND DEEDS
Civil Law
ATENEO CENTRAL
A. TORRENS SYSTEM
LAND TITLES & DEEDS
I. CONCEPT AND BACKGROUND
The Torrens System is a system of registration of
transactions with interest in land the object of
A. TORRENS SYSTEM
which is, under governmental authority, to
I. Concept and background
II. Certificate of title establish and certify the ownership of an absolute
and indefeasible title to realty, and to simplify its
B. AGRARIAN TITLES AND ANCESTRAL transfer. (Grey Alba v. De la Cruz, G.R. No. 5246,
LANDS AND DOMAINS September 16, 1910 citing Hogg on Australian
I. Concept and registration of Torrens System.)
agrarian titles
II. Concept and registration of Title to real property
ancestral lands and domains A title to real property is the evidence of the
owner’s right or extent of his interest, by which he
C. CITIZENSHIP REQUIREMENT can maintain control and assert his right to
I. Individuals exclusive possession and enjoyment of the
II. Corporations
property. (Evangelista v. Santiago, G.R. 157447,
April 29, 2005 citing Narciso Peña, et al.,
D. ORIGINAL REGISTRATION
Registration of Land Titles and Deeds 3 (1994
I. Who may apply
II. Registration process and ed.))
requirements
III. Remedies Deed
IV. Cadastral Registration A deed is an instrument in writing by which any real
estate or interest therein is created, alienated,
E. SUBSEQUENT REGISTRATION mortgaged, or assigned, or by which title to any
I. Voluntary dealings real estate may be affected in law or equity.
II. Involuntary dealings
Land registration
F. NON-REGISTRABLE PROPERTIES
Land registration is a judicial or administrative
proceeding whereby a person’s claim over a
G. DEALINGS WITH UNREGISTERED
particular land is determined and confirmed or
LANDS
recognized so that such land and the ownership
thereof may be recorded in a public registry.
Purposes of land registration under the

Torrens System
(1) Quiet title to the land

To quiet title to the land and to stop forever any
question as to the legality of said title, except
claims which were noted at the time of registration,
in the certificate, or which may arise subsequent
thereto
- Relieves the land of unknown claims
- Gives every registered owner complete peace of
mind
(2) Guarantee the integrity of land titles
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To guarantee the integrity of land titles and to
protect their indefeasibility once the claim of Nature of land registration proceedings under
ownership is established and recognized P.D. 1529
1. Judicial in character and not merely
(3) Avoid possible conflicts administrative
To avoid possible conflicts of title to real property 2. A proceeding in rem
(4) Facilitate transactions relative thereto Judicial in character

To facilitate transactions relative thereto by giving In a registration proceeding, the judgment of the
the public the right to rely upon the face of a court confirming the title, and ordering its
Torrens certificate of title and to dispense with the registration in one’s name constitutes, when final,
need of inquiring further, except when the party res judicata against the whole world. (Ronald Ting
concerned has actual knowledge of facts and v. Heirs of Lirio, G.R. No. 168913, March 14, 2007)
circumstances that should impel a reasonably
cautious man to make such further inquiry. (Sps. A proceeding in rem
Peralta v. Heirs of Abalon, G.R. No. 183448, June In land registration proceedings, being in rem,
30, 2014) there is no need to personally notify the owners or
claimants of the land sought to be registered to
(5) Best evidence of ownership vest the courts with power and authority over the
To issue a certificate of title to the owner which res. (Guido-Enriquez v. Victorino, et al., G.R. No.
shall be the best evidence of his ownership of the 180427, September 30, 2013)
land
Administration of the Torrens System
Registration of title distinct from acquisition 1. Land Registration Authority (LRA)
The purpose of land registration is not the Agency charged with the efficient execution of
acquisition of lands but only the registration of title the laws relative to the registration of lands,
which the applicant already possessed over the under the executive supervision of the DOJ.
land. (Republic v. CA, G.R. Nos. L-43105, L- (P.D. 1529, § 4)
43190, August 31, 1984)
2. Register of Deeds (ROD)
Registration under the Torrens System does The office of the ROD is the public repository
not create or vest title of records and instruments affecting
Registration under the Torrens system, not being registered or unregistered lands and chattel
a mode of acquiring ownership, does not create or mortgages in the province or city wherein such
vest title. The Torrens certificate of title is merely office is situated. (P.D. 1529, § 10)
an evidence of ownership or title in the particular
Functions of the LRA: (SAC)
property described therein. (Casimiro
1. Extend Speedy and effective assistance to
Development Corporation vs. Mateo, G.R. No.
the Dept. of Agrarian Reform, the Land Bank,
175485, July 27, 2011)
and other agencies in the implementation of
the land reform program of the government;
Laws governing land registration
2. Extend Assistance to courts in ordinary and
13. Property Registration Decree (P.D. 1529, as
cadastral land registration proceedings; and
amended)
3. Be the Central repository of records relative
14. Cadastral Act (Act 2259, as amended)
to original registration of lands titled under the
15. Public Land Act (C.A. 141, as amended)
Torrens system, including the subdivision and
16. Indigenous Peoples’ Rights Act (R.A. 8371)
consolidation plans of titled lands. (P.D. 1529,
17. Emancipation Decree (P.D. 27, as amended)
§ 6(2))
18. Comprehensive Agrarian Reform Law of 1988
(R.A. 6657, as amended)
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Functions of the ROD: (PRIDe) Instances when the ROD may validly deny
1. Immediately Register an instrument registration of a voluntary instrument:
presented for registration dealing with real or - Where there is more than 1 copy of the owner’s
personal property which complies with the duplicate certificate of title and not all such
requisites for registration; copies are presented to the ROD;
2. See to it that said instrument bears the Proper - Where the voluntary instrument bears on its face
documentary stamps and that the same are an infirmity (e.g., where the property is
properly cancelled; presumed to be conjugal but the instrument of
3. If the instrument is not registrable, Deny the conveyance bears the signature of only one
registration thereof and inform the presentor spouse);
of such denial in writing, stating the ground or - Where the validity of the instrument sought to be
reason therefore, and advising him of his right registered is in issue in a pending court suit,
to appeal by consulta in accordance with Sec. notice of which must be given to parties;
117 of P.D. 1529; and - Where required certificates or documents such
4. Prepare and keep an Index system which as DAR clearance, copy of latest tax declaration,
contains the names of all registered owners are not submitted. (Balbin v. ROD, G.R. No. L-
and lands registered in their names. (P.D. 20611, 1969)
1529, § 12) Note: Any disposition of private agricultural
lands made prior to June 15, 1988, when RA
Function of ROD ministerial in character 6657 took effect, must be registered within 3
The function of the ROD with reference to months from said date or on or before
registration of deeds, encumbrances, instruments, September 13, 1988 to be valid. (R.A. 6557, §
and the like is ministerial in nature, provided the 6) Thus, on this ground, the proper DAR
applicant complies with all the requisites. (Baranda clearances must first be secured.
v. Gustilo, G.R. No. 81163, September 26, 1988) - Where the transfer/sale involves a total
aggregate landholding of 5 has. and below of a
Basic formal requirements of deeds and other particular landowner and the transferee will not
voluntary instruments: (See P.D. 1529, § 112) own an aggregate of more than 5 has., the
- In a public instrument transfer is legal and proper but a DAR clearance
- Signed by the person/s executing the same is needed for the purpose of monitoring and as
- Executed in the presence of least 2 witnesses requisite for registration. (DAR Administrative
present who shall also sign the same Order No. 05-06)
- Acknowledged to be the free act and deed of the - The ROD may also refuse to register a private
person/s executing the same before a notary document since Section 112 of P.D. 1529
public or other public officer authorized to take provided that deeds of conveyances affecting
acknowledgement lands should be verified and acknowledged
before a notary public or other public officer
It is enough that in the ROD’s opinion, an authorized by law to take acknowledgement.
instrument is registrable for him to register it. The (Gallardo v. IAC, G.R. No. L-67742, 1987)
act being an administrative act does not
contemplate notice to and hearing of interested In cases where the ROD is in doubt
parties. (Ledesma v. Villaseñor, G.R. No. L-18725, When the ROD is in doubt as to the proper action
March 31, 1965) to take on an instrument or deed presented to him
The determination of whether a document is valid for registration, he should submit the question to
or not is a function that belongs to a court of the Administrator of the LRA en consulta. (P.D.
competent jurisdiction and not to the ROD. (Almirol 1529, § 117)
v. ROD of Agusan, G.R. No. L-22486, March 20,
1968)
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II. CERTIFICATE OF TITLE the issue thereof pursuant to P.D. 27 or any
other laws or regulations on agrarian reform
A Torrens Title is a certificate of ownership issued
under the Torrens System, through the ROD, (2) Incontrovertible and indefeasible
naming and declaring the owner of the real
property described therein, free from all liens and General Rule: Upon the expiration of 1 year from
encumbrances, except such as may be expressly and after the entry of the decree of registration in
noted therein or otherwise reserved by law. (P.D. the LRA, the decree and the corresponding
1529, § 44) certificate of title become incontrovertible and
indefeasible.
Note: A title once registered cannot be impugned, Exceptions: (PNF)
altered, changed, modified, enlarged, or i. If Previous valid title of the same land exists
diminished except in a direct proceeding permitted ii. When land covered is Not capable of
by law, usually for the protection of innocent third registration
persons. iii. When acquisition of certificate is attended by
Fraud
Attributes of a Torrens Certificate of Title
(FINIP) The certificate is the best evidence of ownership
1. Free from liens and encumbrances and shows exactly the real interest of its owner,
2. Incontrovertible and indefeasible subject to certain exceptions.
3. Not subject to collateral attack
4. Imprescriptible The rule on the incontrovertible nature of a
5. Presumed valid and devoid of flaws certificate of title applies when what is involved is
the validity of the OCT, not when it concerns that
(1) Free from liens and encumbrances of the TCT. (Arguelles v. Timbancaya, G.R. No. L-
29052, July 30, 1976)
General Rule: Claims and liens of whatever
character existing against the land prior to the (3) Not subject to collateral attack
issuance of the certificate of title are cut off by such
certificate and the certificate so issued binds the A certificate of title shall not be subject to collateral
whole world, including the government. attack. It cannot be altered, modified, or cancelled
except in a direct proceeding in accordance with
Exceptions: (CNT-PD) the law. (P.D. 1529, § 48)
i. Those noted on the Certificate
ii. Liens, claims, or rights arising or existing under An action is an attack on a title when the object of
the laws and the Constitution, which are Not by the action is to nullify the title, and thus challenge
law required to appear on record in the Register the judgment or proceeding pursuant to which the
of Deeds in order to be valid title was decreed.
iii. Unpaid real estate Taxes levied and assessed
within 2 years immediately preceding the There is a direct attack when the object of an
acquisition of any right over the land by an action is to annul or set aside such judgment or
innocent purchaser for value enjoin its enforcement.
iv. Any Public highway, or private way established
or recognized by law, or any government There is an indirect or collateral attack when, in
irrigation, canal or lateral thereof, if the an action to obtain a different relief, an attack on
certificate of title does not state the boundaries the judgment or proceeding is nevertheless made
of such highway or irrigation canal or lateral as an incident thereof. (Sampaco v. Lantud, G.R.
thereof has been determined No. 163551, July 18, 2011)
v. Any Disposition of the property or limitation on
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What cannot be collaterally attacked is the General Rule: A Torrens certificate of title is
certificate of title and not the title itself. Title as a presumed to have been regularly issued, valid,
concept of ownership should not be confused with and without defects. The buyer has the right to rely
the certificate of title as evidence of such upon the face of the Torrens title and to dispense
ownership although both are interchangeably with the trouble of inquiring further.
used. (Lacbayan v. Samoy, G.R. No. 165427,
March 21, 2011) Exception: When he has actual knowledge of
facts and circumstances that would impel a
The question on the validity of a Torrens title, reasonably cautious man to make inquiry or when
whether fraudulently issued or not, can only be the purchaser has knowledge of a defect or lack of
raised in an action expressly instituted for that title in his vendor or of suffient facts to induce a
purpose. The action for the declaration of nullity reasonably prudent man to inquire into the status
of deed of sale commenced by the petitioners in of the title of the property in litigation (Amoguis v.
the RTC is not the direct proceeding required by Ballado, G.R. No. 189626, Aug. 20, 2018)
law to attack a Torrens certificate of title. (Tapuroc
v. Loquellano de Mende, G.R. No. 152007, 2007) General incidents of registered land
- Registered land or the owners thereof are not
(4) Imprescriptible relieved from the following:
- From any rights incident to the relation of
Even adverse, notorious and continuous husband and wife, landlord and tenant
possession under claim of ownership for the - From liability to attachment or levy on execution
period fixed by law is ineffective against a Torrens - From liability to any lien of any description
title. (JM Tuason and Co. Inc. v. CA, G.R. No. L- established by law on the land and buildings
23480, September 11, 1979) thereon, or in the interest of the owner in such
land or buildings
The fact that the title to the land was lost does not - From any right or liability that may arise due to
mean that the land ceased to be registered land change of the law on descent
before the reconstitution of its title. It cannot - From the rights of partition between co-owners
perforce be acquired by prescription. (Ruiz v. CA, - From the right of the government to take the land
G.R. No. L-29213, 1977) by eminent domain
- From liability to be recovered by an assignee in
Laches may be invoked to bar reconveyance of insolvency or trustee in bankruptcy under the
land to the registered owner only if there are laws relative to preferences
intervening rights of third persons which may be - From any other rights or liabilities created by law
affected or prejudiced if such land is returned to and applicable to unregistered land
the registered owner. (De Lucas v. Gamponia,
G.R. No. L-9335, 1956) Where certificate of title is obtained by a
trustee
With respect to a claim of acquisitive prescription, - Trustee who obtains a Torrens title in his name,
it is baseless when the land involved is a over property held in trust by him for another,
registered land since no title to registered land in cannot repudiate the trust relying on the
derogation of that of the registered owner shall be registrations, such being one of the limitations
acquired by adverse possession. (Feliciano v. upon the finality of title.
Zaldivar, G.R. No. 162593, 2006) - Trustee could not perforce legally convey
ownership of the registered property in her will
(5) Presumed valid and devoid of flaws for she is not the absolute owner thereof.
This is also called the “Mirror Doctrine.”
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Probative Value of the Torrens title Note: Only available if the land
possessed is public, alienable
Conclusive evidence as to Philippine courts and disposable
Torrens Title may be received in evidence in all
Philippine courts and shall be conclusive as to all A property registered under the
matters contained therein, principally as to the Torrens System is not subject
identity of the landowner, except in so far as to prescription.
provided in the Land Registration Act.
Prescription is unavailing
Evidence of indefeasibility of title against the registered owner
A Torrens Certificate is evidence of indefeasible and his hereditary successors.
title of property in favor of the person whose name Accretion Requisites: (G-A-C)
appears therein—such holder is entitled to the - The deposit of soil or sediment
possession of the property until his title is nullified. is Gradual and imperceptible;
(Pascual v. Coronel, G.R. No. 159292, 2007) - The land where accretion
takes place is Adjacent to the
Types of Torrens Certificate of Title banks of rivers or the
1. Original Certificate of Title (OCT) - the first seacoast; and
title issued in the name of the registered owner - It is the result of the natural
by the ROD covering a parcel of land which Current of the waters
had been registered by virtue of a judicial or (river/sea) and not because of
administrative proceeding. human intervention. (Binalay
2. Transfer Certificate of Title (TCT) - the title v. Manalo, G.R. No. 92161,
issued by the ROD in favor of the transferee to March 18, 1991)
whom the ownership of the already registered
land had been transferred by virtue of a sale Note: Accretion to registered
or other modes of conveyance. lands needs new registration.
Modes of acquiring title The alluvial deposit to the bank

Mode Description/Requisites of the river belongs to the
Public Grant A conveyance of public land by riparian owner; the accretion
the government to a private does not automatically become
individual part of his registered land and
Acquisitive Requisites: (OCEN) he must still apply for the
Prescription Open, registration thereof.
Continuous,
Exclusive, and There must be NO human
Notorious possession intervention.
If in good faith & with just title: The current causing the alluvial
10 yrs. uninterrupted deposit must be from a river. If
possession is required it is from the sea, the deposit
will pertain to the State
If in bad faith & without just title: (Government of the Phils. v.
30 yrs. continuous possession Cabangis, 53 Phil. 112, March
is required 27, 1929).
Reclamation Filling of submerged land by
deliberate act and reclaiming
title thereto.
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the date of the certificate of title not the date of the
Conditions: filing for application. (Heirs of Lopez v. De Castro,
1. Must be initially owned by the G.R. 112905, Feb. 3, 2000)
government
2. May be subsequently B. AGRARIAN TITLES AND ANCESTRAL
transferred to private owners LAND DOMAINS
Note: The reclaimed land I. CONCEPT AND REGISTRATION OF

formed through human AGRARIAN TITLES
intervention is public land and
belongs to the State. It has to The Agrarian Reform Program is founded on the
be recovered first by Special right of farmers and regular farmworkers, who are
Patent in the name of the landless, to own directly or collectively the lands
Republic of the Philippines or a they till or, in the case of other farm workers, to
government agency, and only receive a just share of the fruits thereof. To this
then may portions thereof be end, the State shall encourage and undertake the
transferred by sale or other just distribution of all agricultural lands, subject to
conveyances to private the priorities and retention limits set forth in this
persons. Act, having taken into account ecological,
Voluntary 1. Private grant developmental, and equity considerations, and
Transfer 2. Voluntary execution of deed subject to the payment of just compensation. The
of conveyance State shall respect the right of small landowners,
- Contractual relationship and shall provide incentives for voluntary land-
between the parties sharing. (R.A. 6657, § 2)
- Consensual
Involuntary - No consent from the owner Note: The exclusive list of exemptions from the
Alienation of land agrarian reform coverage are enumerated under
- Forcible acquisition by the Sec. 10 of R.A. 6557. The law explicitly states that
State lands foreclosed by government financial
Descent or Hereditary succession to the institutions are subject to agrarian reform. (GSIS
Devise estate of deceased owner v. Datoy, G.R. No. 232863, July 24, 2019)
Emancipa- The purpose of the same is to
tion ameliorate the sad plight of Beneficiaries and Qualifications
Patent/Grant tenant-farmers
(Certificate Basic Requirement
of Land Note: Title to land acquired Any qualified farmer beneficiary who must be a
Ownership pursuant to the land reform landless resident of the same barangay (or in the
Award) program of the government is absence thereof, a landless resident of the same
not transferable for a period of municipality)
10 years except by (a)
hereditary succession, (b) to Additional Qualifications
the government, (c) to the LBP, 1. Landless (owns less than 3 ha. of
or (d) to other qualified agricultural land)
beneficiaries. (R.A. 6657, § 27) 2. A Filipino citizen
3. At least 15 years of age or head of the
family at the time of acquisition of property
Note: Whoever first acquires title to a piece of land
4. Has willingness, availability, and aptitude
shall prevail and where there are more than one
to cultivate and make the land productive
certificates of title, the person holding the prior
as possible.
certificate is entitled to the land. The rule refers to
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Leasehold Relations Not Extinguished
Order of Priority of Distribution The agricultural leasehold relation under this Code
1. Agricultural lessees and share tenants shall not be extinguished by mere expiration of the
2. Regular farmworkers term or period in a leasehold contract nor by the
3. Seasonal farmworkers sale, alienation or transfer of the legal possession
4. Other farmworkers of the landholding. In case the agricultural lessor
5. Actual tillers or occupants of public lands sells, alienates or transfers the legal possession of
6. Collectives or cooperatives of the above the landholding, the purchaser or transferee
beneficiaries thereof shall be subrogated to the rights and
7. Others directly working on the land substituted to the obligations of the agricultural
Note: Children of landowners who are qualified lessor. (R.A. 3844, § 12)
under the CARL shall be given preference in the
distribution of the land of their parents. Right of Redemption of Agricultural Lessee
In case of sale, the lessor must first inform the
On Tenancy Relations lessee of the sale in writing. A 180-day period
Tenancy relations cannot be a means for vesting begins, within which the lessee must file a petition
a tenant with security of tenure, such that he or she to redeem the land. This right of redemption enjoys
is effectively the landowner. Art. 1649 of the Civil preference over any other legal redemption that
Code states that the lessee cannot assign the may be exercised over the property. Such right
lease without the consent of the lessor, unless may be exercised by paying a reasonable price of
there is a stipulation to the contrary. In this case, the land at the time of the sale. (Spouses Franco
the lessee was expressly prohibited from v. Spouses Galera, Jr., G.R. No. 205266, January
subleasing the land, as installing a leasehold 15, 2020)
tenant thereon is an attribute of ownership.
(Crisostomo v. Victoria, G.R. No. 17598, Aug. 26, Disqualification
2015) Beneficiaries under P.D. 27 who have culpably
sold, disposed of, or abandoned their land are
Requisites of a Valid Agricultural Tenancy disqualified to become beneficiaries under this
Agreement Program.
1. Parties are the landowner and the tenant
2. The subject-matter is agricultural land Award to Beneficiaries
3. There is consent between the parties The Department of Agrarian Reform (DAR) shall
4. The purpose is agricultural production award the lands to its beneficiaries through a duly
5. There is personal cultivation by the tenant registered emancipation patent or certificate of
6. There is sharing of the harvests between land ownership.
the parties
(Spouses Franco v. Spouses Galera, Jr., G.R. No. Certificate of Land Ownership (CLOA)
205266, January 15, 2020) A document evidencing ownership of the land
granted or awarded to the beneficiary by DAR,
Agricultural Tenancy Arrangements and contains the restrictions and conditions
Agricultural tenancy arrangements may be provided for in RA 6657 and other applicable laws.
established either orally or in writing. While it must (Lebrudo v. Loyola, G.R. 181370, March 9, 2011)
be supported by substantial evidence, the tenancy
relationship can be implied from the conduct of the Once awarded, the rights and responsibilities of
parties. (Spouses Franco v. Spouses Galera, Jr., the beneficiaries shall commence. Nevertheless,
G.R. No. 205266, January 15, 2020) once DAR takes possession of such land, the
beneficiaries shall already have the same rights
and responsibilities even pending the awarding of
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the emancipation patent or the certificate of land buildup before forwarding it to the DAR Secretary
ownership award. for decision, in accordance with R.A. 9700.
(Secretary of DAR v. Heirs of Abucay, G.R. No.
These awarded titles shall generally be 186432, Mar. 12, 2019)
indefeasible and imprescriptible after 1 year
from its registration with the Registry of Deeds. Right of Retention
These titles are brought under the ambit of the An owner must exercise his right of retention within
Torrens System. (R.A. 9700, § 9) 60 days from the notice of CARP coverage. A
landowner’s failure to manifest such is a ground of
Award ceiling losing his right of retention. The farmer should not,
Area must not exceed 3 has. (R.A. 9700, § 10) in equity, be made to suffer the landowner’s
negligence. A new and regular title issued to the
Obligations of Beneficiaries farmer, in few simple, is an absolute title, without
qualification or restriction. (Heirs of Nuñez, Sr. v.
Payment by beneficiaries Heirs of Villanoza, G.R. No. 218666, Apr. 6, 2017)
Lands awarded shall be paid by beneficiaries to
the Land Bank of the Philippines (LBP) in thirty II. CONCEPT AND REGISTRATION OF
annual amortizations at 6% per annum. ANCENTRAL LANDS AND DOMAINS
- Amortization will start 1 year from date of CLOA
registration. The Indigenous People’s Rights Act of 1997
Note: If occupancy took place after CLOA aims protect the rights of ICCs/IPs to their
registration, the amortization will start 1 year from ancestral domains to ensure their economic, social
occupancy. and cultural well being and shall recognize the
applicability of customary laws governing property
Lien by way of mortgage rights or relations in determining the ownership
LBP shall have lien by way of mortgage on the land and extent of ancestral domain. (Sec. 2(b), R.A.
which can lead to foreclosure for non-payment of 8371)
an aggregate of 3 annual amortizations.
Note: A beneficiary whose land has been The National Commission on ICCs/IPs (NCIP)
foreclosed herein shall be permanently shall be the primary government agency
disqualified from being a beneficiary. responsible for the formulation and
implementation of policies, plans and programs to
Transferability of Awarded Lands promote and protect the rights and well-being of
Limited transferability the ICCs/IPs and the recognition of their ancestral
Lands acquired by beneficiaries shall not be sold, domains as well as the rights thereto. (Sec. 38,
transferred, or conveyed for 10 years except: R.A. 8371)
- Through hereditary succession
- To the government Ancestral domains
- To the LBP All areas generally belonging to ICCs/IPs
- To other qualified beneficiaries through DAR comprising lands, inland waters, coastal areas,
Note: Children or spouse of transferor may and natural resources therein, held under a claim
repurchase land from government or LBP within 2 of ownership, occupied or possessed by ICCs/IPs,
years. (R.A. 9700, § 12) by themselves or through their ancestors,
communally or individually since time immemorial,
Cancellation of Emancipation Patents continuously to the present except when
A petition for cancellation of original certificates of interrupted by war, force majeure or displacement
title and emancipation patents should be filed by force, deceit, stealth or as a consequence of
before the Office of the Provincial Agrarian Reform government projects or any other voluntary
Adjudicator, which would then undertake the case dealings entered into by government and private
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individuals/corporations, and which are necessary Modes of Acquisition of CADTs and CALTs
to ensure their economic, social and cultural 1. By Native Title of IPPs/ICs over both ancestral
welfare. (R.A. 8371, § 3(a)) domain and lands
2. By Torrens Title under Public Land Act and the
Ancestral lands Land Registration Act (now Property
Land occupied, possessed and utilized by Registration decree) over ancestral lands only:
individuals, families and clans who are members - Continuous possession and occupation in the
of the ICCs/IPs since time immemorial, by concept of owner since time immemorial or
themselves or through their predecessors-in- for a period of not less than 30 years of
interest, under claims of individual or traditional individually-owned ancestral lands by
group ownership, continuously, to the present individual members of cultural communities,
except when interrupted by war, force majeure or by themselves or through their predecessors-
displacement by force, deceit, stealth, or as a in-interest
consequence of government projects and other - Claims are uncontested by the members of
voluntary dealings entered into by government and the same ICCs/IPs
private individuals/corporations. (R.A. 8371, § - Individually-owned ancestral lands must be
3(b)) agricultural in character and are actually used
for agricultural, residential, pasture and tree
Note: The definitions of ancestral domains and farming purposes for it to be classified as
ancestral lands are subject to: “Existing Property alienable and disposable agricultural lands of
Rights Regimes. — Property rights within the the public domain
ancestral domains already existing and/or vested - The ancestral lands shall be classified as
upon effectivity of this Act, shall be recognized and public agricultural lands regardless of
respected.” (R.A. 8371, § 56) whether they have a slope of 18% or more
- Option to register ancestral land must be
Native title exercised within (20) years from October 29,
This refers to pre-conquest rights to lands and 1997 (approval date of the IPRA)
domains which, as far back as memory reaches,
have been held under a claim of private ownership Procedure for Issuance of CADT through
by Indigenous Cultural Communities/Indigenous Native Title (R.A. 8371, § 53)
Peoples (ICCs/IPs), have never been public lands
and are thus indisputably presumed to have been Note: Ancestral domains delineated prior to this
held that way since before the Spanish Conquest. act shall have the right to apply for the issuance of
(R.A. 8371, § 3(l)) a CADT over the area without going through the
process below. (R.A. 8371, § 52)
Note: The Regalian Doctrine does not negate
native title. 1. Petition for Delineation by the NCIP with the
consent of ICC/IP concerned or filed by a
Certificate of Ancestral Domain Title (CADT) majority of the members of the ICCs/IPs with
CADT refers to title formally recognizing the rights the NCIP
of possession and ownership of ICCs/IPs over 2. Delineation Proper to be undertaken by the
their ancestral domains identified and delineated Ancestral Domains Office (ADO)
in accordance with this law. 3. Proof Required includes the testimony of
elders or community under oath, and other
Certificate of Ancestral Land Title (CALT) documents attesting to the possession or
CALT refers to title formally recognizing the rights occupation of the area since time immemorial
of ICCs/IPs over their ancestral lands. by such ICCs/IPs in the concept of owners such
as any of the following authentic documents:
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- Written accounts of the ICCs/IPs customs denial. Such denial is appealable to the
and traditions NCIP.
- Written accounts of the ICCs/IPs political - Conflicting claims among ICCs/IPs on the
structure and institution boundaries of the ancestral domain claims
- Pictures showing long term occupation such shall be resolved by the ADO through
as those of old improvements, burial meeting the parties for a preliminary
grounds, sacred places and old villages resolution.
- Historical accounts, including pacts and 8. Turnover of Areas within Ancestral
agreements concerning boundaries entered Domains Managed by other Government
into by the ICCs/IPs concerned with other Agencies as soon as the Chairperson of NCIP
ICCs/IPs certifies that such area is within an ancestral
- Survey plans and sketch maps domain
- Anthropological data 9. Issuance of CADT to ICCs/IPs whose
- Genealogical surveys ancestral domains have been officially
- Pictures and descriptive histories of delineated and determined by NCIP
traditional communal forests and hunting 10. Registration of CADT by NCIP before the
grounds Register of Deeds with jurisdiction
- Pictures and descriptive histories of
traditional landmarks such as mountains, Procedure for Issuance of CALT through
rivers, creeks, ridges, hills, terraces and the Native Title (NCIP Admin Order 01-98)
like
- Write-ups of names and places derived from The procedure for delineation of ancestral lands
the native dialect of the community. shall be undertaken by the NCIP Service Center
4. Preparation of Maps to be prepared by the where the land is located.
ADO with the technical descriptions within the
perimeter 1. Identification of Ancestral Lands within
5. Report of Investigation and Other Ancestral Domains
Documents to be prepared by the ADO - ICCs/IPs shall be responsible for
6. Notice of Publication including a translation in identifying and establishing ancestral
the native language of the ICCs/IPs concerned lands within their respective ancestral
shall be posted in a prominent place for at least domains based on their customs and
15 days traditions.
- A copy must also be posted at the local, 2. Application for Issuance of CALT over
provincial, and regional offices of the Ancestral Lands within Ancestral Domains
NCIP - Individuals, families, or clans belonging to the
- It must also be published in a newspaper of concerned ICCs/IPs may apply for CALT
general circulation once a week for 2 without going through the formal delineation
consecutive weeks to allow other claimants process by filling up the appropriate NCIP
to file opposition Form and filing with the NCIP Service
Note: In areas where no such newspapers Center.
exist, a radio broadcast can be a valid 3. Application for Issuance of CALT of
substitute. Where both are unavailable, mere Ancestral Lands outside Ancestral Domains
posting shall suffice. a) Fill up appropriate NCIP Form and file it
7. Endorsement to NCIP by the ADO within 15 with the NCIP Service Center with
days from publication and upon the compliance jurisdiction over the land.
of sufficient proof (ADO may require b) It must be accompanied by a testimony
submission of additional evidence) under oath of the elders of the ICC/IP who
- In case of rejection, ADO shall give the are knowledgeable of the claim.
applicant due notice containing grounds for
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c) It must also be accompanied with any other - Lease not more than 500 hectares of alienable
documentary proof showing continuous lands of the public domain.
occupation, utilization, or possession of the
area since time immemorial. Any foreign investor investing in the Philippines
d) Notice and Publication of the Petition shall be allowed to lease private lands provided
including a survey or sketch plan and that no lease contract shall be for a period
translation in the native language of the exceeding 50 years, renewable once for a period
ICCs/IPs concerned by the NCIP Service of not more than 25 years. (Investors Lease Act, §
Center. 4.)
- To be posted in conspicuous place within
the ancestral land and the Service Center, II. CORPORATIONS
Provincial, and Regional Offices of the
NCIP for at least 15 days Limitation to Ownership of Land
1. Private Lands
- If available, these will also be published in
- By corporations at least 60% of whose capital
a newspaper of general circulation in the
must be Filipino-owned (PHIL. CONST., art. XII,
area once a week for 2 consecutive weeks
§ 12.)
to allow others to file opposition thereto
- Restricted as to extent reasonably necessary
within 15 days from last publication date
to enable it to carry out purpose for which it
- Note: In areas where no such was created
newspapers exist, a radio broadcast can - If engaged in agriculture, it is restricted to
be a valid substitute. Where both are 1,024 hectares
unavailable, mere posting shall suffice.
e) Ocular Inspection and Appreciation of 2. Patrimonial Property of the State (PHIL. CONST.,
Proof by the NCIP Service Center art. XII, § 3.)
f) Resolution of Conflicting Claims to be - May only lease (cannot own land of the public
referred by the NCIP to the Council of domain) for 25 years, renewable for another
Elders/Leaders in the community for 25 years
settlement - Limited to 1,000 hectares
Note: In case of failure, it may be submitted - Applies to both Filipino & foreign corporations
for full adjudication by the NCIP.
g) Parcellary Survey to be done by NCIP Note: Determinative of this issue is the character
h) Report of Investigation by the NCIP of the parcels of land – whether they were still
Service Center public or already private when the registration
i) Review by the NCIP Provincial Office proceedings were commenced. If they were
which shall be endorsed to the NCIP ADO already private lands, the constitutional prohibition
through the Regional Office if the application against acquisitions by a private corporation would
is found to be sufficiently proven not apply. (Natividad v. CA, G.R. No. 88233, Oct.
j) Issuance of CALT by the NCIP 4, 1991.)
k) Registration of CADT by NCIP before the
Register of Deeds with jurisdiction D. ORIGINAL REGISTRATION
Original Registration under P.D. 1529 is a
C. CITIZENSHIP REQUIREMENT
proceeding brought before the RTC (as a land
registration court) to determine title or ownership
I. INDIVIDUALS of land on the basis of an application for
registration or answer by a claimant in a cadastral
Limitation to Ownership of Land
registration.
Only Filipino citizens may:
- Acquire not more than 12 hectares by
purchase, homestead or grant, or
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An Original Certificate of Title (OCT) is the first title
issued in the name of the registered owner by
virtue of judicial/voluntary or administrative/
involuntary proceedings. (Salao, et al. v. Salao,
G.R. No. L-26699, Mar. 16, 1976.)
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I. WHO MAY APPLY
P.D. 1529 C.A. 141

MATTER GOVERNED
Original registration proceedings Confirmation of imperfect or incomplete title
NATURE
1. In rem proceedings
2. Judicial
3. Decree of registration issued is conclusive and final
4. Governed by court procedure and law of evidence
WHO MAY APPLY
(OPAL) 1. Those who by themselves or through their
(PD 1529, § 14.) predecessors-in-interest have been in Open,
1. Those who by themselves or through their continuous, exclusive, notorious possession and
predecessors-in-interest have been in Open, occupation of alienable and disposable lands of
continuous, exclusive, notorious possession and the public domain under a bona fide claim of
occupation of alienable and disposable lands of acquisition since June 12, 1945 or earlier, or
the public domain under a bona fide claim of even since time immemorial.
ownership since June 12, 1945 or earlier
2. Those who by themselves or their predecessors-
Note: June 12, 1945 reckoning point refers to date in-interest have been prior to the effectivity of PD
of possession and not to date of classification as 1073 on January 25, 1977, in open, continuous,
alienable and disposable – the land needs only to exclusive, and notorious possession and
be classified as alienable and disposable as of the occupation of agricultural lands of the public
time of the application. (La Tondeña, Inc. v. domain, under a bona fide claim of acquisition of
Republic, G.R. No. 194617, Aug. 5, 2015) ownership, for at least 30 years.
3. Private corporations or associations which had

2. Those who acquired ownership of private lands acquired lands, formerly part of the alienable and
by Prescription under the provisions of existing disposable lands of the public domain, from
laws Filipino citizens who had possessed the same in
the manner and for the length of time as
indicated above.
3. Those who acquired ownership of private lands
or abandoned riverbeds by right of Accession or 4. Natural-born Filipino citizens who have lost their
accretion under the existing laws Philippine citizenship, who have acquired
disposable and alienable lands of the public
4. Those who have acquired ownership of land in domain from Filipino citizens who had who had
any manner provided for by Law possessed the same in the manner and for the
length of time as indicated above.
Note: Where the land is owned in common, all the
co-owners shall file the application jointly.
Where the land has been sold under pacto de

retro, the vendor a retro may file an application for
the original registration of the land, provided,
however, that should the period for redemption
expire during the pendency of the registration
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proceedings and ownership to the property
consolidated in the vendee a retro, the latter shall
be substituted for the applicant and may continue
the proceedings.
A trustee on behalf of his principal may apply for

original registration of any land held in trust by him,
unless prohibited by the instrument creating the
trust.
General rule: All these persons must be natural-born Filipino citizens.
Exceptions:
- Juridical persons may apply for registration of the lease of agricultural and disposable land not
exceeding 1,000 hectares in area for a period of 25 years and renewable for not more than 25 years
(PHIL. CONST., art. XII, § 3.)
- When the land has been previously acquired by prescription by a natural person and subsequently
transferred to a juridical entity. In this case, a corporation may apply for judicial confirmation of title.
(Dir. of Lands v. IAC and ACME, G.R. No. 73002, Dec. 29, 1986.)
Summary of rule: A juridical entity cannot acquire ownership of disposable and alienable land nor
apply for the registration thereof. The disposable and alienable land must first become private land by
operation of law through the possession and occupation of a Filipino citizen in the manner and period
required by law. The juridical entity may then acquire ownership of such private land from the Filipino
citizen and becomes eligible to apply for the registration thereof in its name.
Note: A judicial declaration that a parcel of land is
public does not preclude even the same applicant
from subsequently seeking a judicial confirmation
of his title to the same land, provided he thereafter
complies with the provisions of Sec. 48 of C.A.
141, as amended and as long as said public land
remains alienable and disposable.
(Dir. of Lands v. CA, G.R. No. L-47847, Jul. 31,
1981.)
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II. REGISTRATION PROCESS AND A defective publication of the notice of initial
REQUIREMENTS hearing deprives the court of jurisdiction.
Kinds of Registration Note: If it is shown that the decree of registration

1. Judicial/Voluntary/Ordinary – by filing with had included lands not included in the original
the proper court; application by the private application as published, then the registration
individual himself proceedings are null and void insofar as the land
2. Administrative/Involuntary/Cadastral – not included in the publication is concerned.
compulsory registration initiated by the (Benin v. Tuason, G.R. No. L-26127, Jun. 28,
government 1974.)
Procedure in Ordinary Land Registration 6. Mailing and posting of notice of initial hearing
Proceedings
Under P.D. 1529 and C.A. 141, the following Mailing
requisites should all be satisfied: (SAD-TraPu- Within 7 days after publication of said notice in the
MAHP-FESE) OG, the LRA shall mail notice to:
1. Survey of land by the Bureau of Lands or a 19. Persons named in the notice
duly licensed private surveyor 20. Sec. of Public Highways, Provincial Governor,
- Survey plan must be duly approved by the and Mayor, if the applicant requests to have
Director of Lands. the line of a public way or road determined
2. Filing of Application for registration by the 21. Sec. of Agrarian Reform, Solicitor General,
applicant together with all the muniments1 of Director of Lands, Director of Fisheries, and
titles and copies thereof with a survey plan Director of Mines, if the land borders on a river,
approved by Bureau of Lands. navigable stream, or shore, or on an arm of the
3. Setting of the Date of initial hearing of sea where a river or harbor lies
application by the RTC 22. Other persons as the court may deem proper
- Within 5 days from filing; initial hearing shall
be held 45-90 days from date of the order Posting
4. Transmittal of the application and the date Posting shall be made by the sheriff in a
of the initial hearing, with all the documents or conspicuous place on the subject land and on the
other evidence attached thereto, by the Clerk bulletin board of the municipal building of the
of Court to the LRA municipality or city in which the land or portion
5. Publication of notice of initial hearing thereof is situated, at least 14 days before the date
(mandatory) of initial hearing.
- Once in the Official Gazette (OG) (this
confers jurisdiction upon the court) 7. Filing of Answer or Opposition to the
- Once in a newspaper of general circulation application by any person whether named in
the notice or not (on or before the date of initial
Purposes and effects of publication: hearing, or within such further time as may be
- To confer jurisdiction over the land applied for allowed by the court.)
upon the court
- To charge the whole world with knowledge of the Requisites of Opposition
application of the land involved, and invite them The oppositor (DIGS):
to take part in the case and assert and prove 1. Must have an Interest in the land applied for;
their rights over the subject land 2. Should state the Grounds for his objection
as well as the nature of his claimed interest;
Effect of defective publication 3. Should indicate the Desired relief; and
1
NOTE: Muniments of title are instruments or written evidence substantiate and prove title to his estate. (e.g., Deed of
which the applicant holds or possesses to enable him to Sale/Donation/Assignment).
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4. Should Sign and have the opposition sworn (Republic of the Philippines v. Spouses Noval,
to by him or his duly authorized G.R. No. 170316, September 18, 2017.)
representative.
Effects of failure to file answer
Note: The opposition must be filed on or before Absent any oppositor, the court will issue an order
the date of initial hearing. of default pursuant to Sec. 26 of P.D. 1529.
If only a portion of the land applied for is contested General vs. Special Default
and such portion is not properly delimited, the GENERAL DEFAULT SPECIAL DEFAULT
court may require submission of a division plan Those persons who When a party appears
approved by the Director of Lands. did not appear and at initial hearing
answer within the time without having filed an
Note: While the burden of proving that the prescribed answer and asks
property is an alienable and disposable court for time to file
agricultural land of the public domain falls on the answer but failed to
applicant, the Office of the Solicitor General has do so within period
the correlative burden to present effective allowed
evidence of the public character of the land.
8. Hearing of the case by the court
When the State has no effective opposition, except 9. Promulgation of judgment by the court
for a pro forma opposition, to controvert an 10. Issuance of the order of Finality of judgment
applicant's convincing evidence of possession and and order instructing the LRA to issue a
occupation, presumptions are tilted to this decree2 of confirmation and registration and
applicant's favor. Therefore, when an applicant is OCT.
shown to have been in open, continuous,
exclusive, and notorious possession of a land for Note: The issuance of the decree of registration is
the period required by law, he or she has acquired not done by the court. What the court issues is the
an imperfect title that may be confirmed by the order of finality of judgment and the order to the
State. The State may not, for the simple reason LRA to issue the decree. It is the LRA which issues
that an applicant failed to show documents which the decree as well as the original and owner’s
the State is in the best position to acquire, duplicate of the OCT.
indiscriminately take an occupied property and
unjustly and self-servingly refuse to acknowledge 11. Entry of the decree of registration in the
legally recognized rights evidenced by LRA. One year after the date of entry of decree,
possession, without violating due process. it becomes incontrovertible and amendments
will not be allowed except for correcting clerical
The burden of evidence lies on the party who errors. It is deemed conclusive as to the whole
asserts an affirmative allegation. Therefore, if the world.
State alleges that lands belong to it, it is not - Puts an end to litigation
excused from providing evidence to support this - Purpose of Torrens system is protected
allegation. This specially applies when the land in
question has no indication of being incapable of 12. Sending of the original and owner’s duplicate
registration and has been exclusively occupied by OCT to the ROD of the city or province where
an applicant or his or her predecessor-in-interest the property is situated for entry in his
without opposition — not even from the State. registration book.
2
NOTE: Decree – issued by LRA after finality of judgment; b. Decrees of confirmation and registration (Subject
contains technical description of land. only to appeal)
a. Decrees dismissing application
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To establish that the land sought to be registered
13. Entry of OCT by the ROD in the Electronic is alienable and disposable, applicants must
Primary Entry Book for Registered Land and present a copy of the original classification
delivery of owner’s duplicate OCT to the approved by the DENR Secretary and certified as
applicant upon payment of the prescribed fees. a true copy by the legal custodian of the official
records. Absent the DENR Secretary's issuance
Note: Failure to comply with these requirements declaring the land alienable and disposable, the
will justify the court to deny the application for land remains part of the public domain. Even if X
registration. A certificate of title issued without fully adversely possessed the land, he cannot register
complying with said requirements is illegal and the land since he failed to prove the land is
invalid and may be cancelled by the courts. alienable. (Republic v. Malijan-Javier, G.R. No.
214367, Apr. 4, 2018.)
What to Prove and Evidence to Submit
1. Alienability and disposability of land Notation in a geodetic survey that the survey was
2. Identity of land inside alienable and disposable land does not
3. A) Private ownership or B) open, continuous, constitute a positive government act validly
exclusive, and notorious possession changing the classification of the land. A surveyor
has no authority to reclassify lands of public
(1) Alienability and disposability of land domain. Land of the public domain, to be the
How to prove: subject of appropriation, must be declared
a. Certification from City Environment and Natural alienable and disposable either by the President or
Resources Office (CENRO) or Provincial the DENR Secretary. The applicant for land
Environment and Natural Resources Office registration has the burden of overcoming the
(PENRO) presumption of State ownership by establishing
- If land is less than 50 hectares – CENRO through incontrovertible evidence that the land
Certification sought to be registered is alienable or disposable
- If land is 50 hectares or more – PENRO based on a positive act of the government.
Certification; and (Republic vs. De Guzman Vda. de Joson, G.R. No.
b. Copy of the original classification of land as 163767, Mar. 10, 2014.)
alienable and disposable approved by the
DENR Secretary and certified as a true copy The property subject of the application for
by the legal custodian of the official records. registration need not be classified as alienable and
(Republic of the Philippines v. Santos, G.R. disposable agricultural land of the public domain
No. 191516, Jun. 4, 2014.) for the entire duration of the requisite period of
possession. Alienable public land held by a
Note: It is not enough for the PENRO or CENRO possessor openly, continuously and exclusively
to certify that a land is alienable and disposable. during the prescribed statutory period is converted
The applicant for land registration must prove that to private property by the mere lapse of such
the DENR Secretary had approved the land period. The requirement that the land should have
classification and released the land of the public been classified as alienable and disposable
domain as alienable and disposable, and that the agricultural land at the time of the application for
land subject of the application for registration falls registration is necessary only to dispute the
within the approved area per verification through presumption that the land is inalienable.
survey by the PENRO or CENRO. (Espiritu v. (Malabanan v. Republic, G.R. No. 179987, Sept.
Republic, G.R. No. 219070, Jun. 21, 2017 & 3, 2013.)
Republic v. Raneses, G.R. No. 189970, Jun. 9,
2014.) The period of possession prior to the declaration
that land is alienable and disposable agricultural
land is included in the computation of possession
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for purposes of acquiring registration rights over a effectivity or on 16 August 1976), after which, the
property if the land has already been declared as Spanish titles may no longer be presented to prove
such at the time of the application for registration. ownership. Spanish titles can no longer be
What is important in computing the period of countenanced as indubitable evidence of land
possession is that the land has already been ownership. (Santiago v. SBMA, G.R. No. 156888,
declared alienable and disposable at the time of Nov. 20, 2006.)
the application for registration. Upon satisfaction of
this requirement, the computation of the period (3B) Open, exclusive, continuous, and
may include the period of adverse possession peaceful possession in the concept of owner
prior to the declaration that land is alienable and How to prove:
disposable. (AFP Retirement and Separation a. Tax declarations
Benefits System v. Republic of the Philippines, b. Regular realty tax payments
G.R. No. 180086, Jul. 2, 2014.) c. Muniments of title (e.g., deeds of sale, wills,
donation; to tack possession to that of
(2) Identity of land predecessors-in-interest)
How to prove: d. Testimonial evidence
- Survey plan approved by the Land Management e. Evidence of improvements introduced on the
Bureau (LMB) property
- Technical description of the land
- Tax declarations Where to file application
This is applicable for both PD 1529 and CA 141.
(3A) Private ownership (STOP)
How to prove: General rule: RTC of the province or city where
a. Spanish title (inadmissible and ineffective proof the land is situated.
of ownership in land registration proceedings
filed after Aug. 16, 1976) Note: File together with the application all original
b. Tax declarations and tax payments (not muniments of titles or copies thereof and a survey
conclusive evidence of ownership; must be plan of the land as approved by the Bureau of
coupled with proof of actual possession for the Lands.
period required by law)3
c. Other kinds of proof Under LRA Circular 05-2000, the original tracing
- Testimonial evidence cloth plan is no longer forwarded to the LRA; only
- Photos of improvements introduced a certified copy thereof needs to be forwarded.
d. Presidential issuances and legislative acts P.D. 1529 has eliminated the distinction between
(constitutive of a fee simple title or absolute title the general jurisdiction vested in the RTC and the
in favor of the grantee, a law ceding full limited jurisdiction conferred upon it by the former
ownership to a government institution) law when acting merely as land registration court.
Aimed at avoiding multiplicity of suits, the change
Note: The holder of a Spanish title may still lose has simplified registration proceedings by
his ownership of the real property to the occupant conferring upon the RTCs the authority to act not
who actually possesses the same for the required only on original applications but also those filed
prescriptive period. Taking the law as a whole, it after original registration, with the power to hear
has clearly set a deadline for the filing of and determine all questions arising upon such
applications for registration of ALL Spanish titles applications or petitions. (Averia v. Caguioa, G.R.
under the Torrens system (i.e., 6 months from its No. L-65129, Dec. 29, 1986)
3
Tax declarations or realty tax payments of property are not purposes strengthens one’s bona fide claim of acquisition of
conclusive evidence of ownership. At most, they serve as a ownership (Republic v. Sta. Ana-Burgos, G.R. No. 163254,
good indicia of possession in the concept of an owner. The Jun. 1, 2007.)
voluntary declaration of a piece of property for taxation
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Contents of Application (MADFARCE)
Exception: Delegated jurisdiction of the MTC to 1. Manner of acquisition of land
hear and determine cadastral or land registration 2. Assessed value of the land and the buildings
cases covering: and other improvements based on the last
- Lots where there is no controversy or opposition, assessment for taxation purposes
or 3. Description of the land applied for together
- Contested lots, the value of which does not with the buildings and improvements; the plan
exceed P100,000 approved by Director of Lands and the
technical descriptions must be attached
If there are several parcels of land situated in 4. The court may require Facts to be stated in the
different provinces/cities belonging to one owner, application in addition to those prescribed by
he must file in the RTC of each province/city where the Decree not inconsistent therewith and
the different parcels of land are located for may require the filing of additional papers
registration purposes. 5. Full names and addresses of All occupants of
the land and those of the Adjoining owners, if
If land is situated between boundaries of 2 known; and if not known, the applicant shall
provinces, application must be filed: state the extent of the search made to find
- When boundaries are not defined: with the RTC them
of the place where it is declared for taxation 6. If the application describes the land as
purposes; bounded by a public or private way or Road, it
- When boundaries are defined: a separate plan shall state whether or not the applicant claims
for each portion must be made by a surveyor any portion of the land within the limits of the
and a separate application for each lot must be way or road, and whether the applicant desires
filed with the appropriate RTC to have the line of way or road determined
(P.D. 1529, § 20.)
In cases of delegated jurisdiction to the MTC, 7. Citizenship and Civil status of the applicant
appeal is directed to the CA. - if married, name of spouse, and
- if the marriage has been legally dissolved,
When to file application when and how the marriage relation was
For CA 141, applications are extended up to terminated
December 31, 2020, as provided in Sec. 2 of R.A. 8. Mortgage or Encumbrance affecting the land
9176. or names of other persons who may have an
interest therein, legal or equitable (P.D. 1529,
Form of the application (WSS) § 15 & C.A. 141, § 50.)
1. Written
2. Signed by the applicant or person duly Note: If the applicant is a non-resident of the
authorized in his behalf Philippines, he shall file an instrument appointing
- If there is more than one applicant, the an agent residing in the Philippines and shall
application shall be signed and sworn to by agree that service of any legal process in the
and in behalf of each. proceeding made upon his agent shall be of the
3. Sworn to before an officer authorized to same legal effect as if made upon the applicant
administer oath for the province or city where within the Philippines. (P.D. 1529, § 16.)
the application was actually signed. (P.D.
1529, § 15 & C.A. 141, § 50.) Limitation of Area
For CA 141, application is only for a maximum of
12 hectares. (R.A. 6940, § 3.)
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Amendments (Republic v. San Mateo, et al., G.R. No. 20356,
AMENDMENTS IN ORDINARY Nov. 10, 2014).
REGISTRATION PROCEEDINGS
Striking out one or The court may strike Hearing, Judgment, and Post-Judgment
more of the parcels of out at any time Incidents in Ordinary Land Registration
land applied for or by a Speedy hearing
severance of the The trial court is required to dispose of the case
application within 90 days from the date of submission thereof
Substantial change in New technical for decision. (P.D. 1529, § 27)
boundaries, increase in description and new
area, inclusion of publication and Note: The court, if it deems necessary, may refer
additional land notice are necessary the case or any part thereof to a referee who shall
Joinder, substitution, or File motion with hear the parties and their evidence, and the
discontinuance of any court referee shall submit his report thereon to the court
of the parties within 15 days after the termination of such
Decrease in area File motion with hearing. The court may render judgment in
court; no need for accordance with the report as though the facts
new publication or have been found by the judge himself. (P.D. 1529,
notice § 27)
Summary of Rules A judgment is a decision of the court constituting

1. If the amendment consists in the inclusion in its opinion after taking into consideration the
the application for registration an area or parcel evidence submitted.
of land not previously included in the original
application, as published, a new publication of Judgment rendered in a land registration
the amended application must be made. The proceeding becomes final upon the lapse of 15
purpose of the new publication is to give notice days counted from the receipt of notice of the
to all persons concerned regarding the judgment. (P.D. 1529, § 30 as modified by B.P.
amended application. 129, § 39.)
2. Without a new publication, the registration court
cannot acquire jurisdiction over the area or The judgment of the court in the land registration
parcel of land that is added to the area covered case becomes final insofar as the State is
by the original application, and the decision of concerned 15 days from receipt by the OSG (not
the registration court would be a nullity insofar merely by the local designated prosecutor) of the
as the decision concerns the newly included copy of the decision, without there being an appeal
land. or motion for reconsideration by any of the parties.
3. But if the amendment consists in the exclusion (Republic v. Sayo, G.R. No. L-60413, Oct. 31,
of a portion of the area covered by the original 1990.)
application and the original plan as previously
published, a new publication is not necessary. However, notwithstanding the lapse of the 15-day
In the latter case, the jurisdiction of the court is period from receipt of judgment by the parties, the
not affected by the failure of a new publication court continues to retain control over the case until
(Benin v. Tuason, G.R. No. L-26127, 1974). the expiration of 1 year after the entry of decree of
Amendments in a petition that do not involve an registration by the LRA. (Republic v. Assosacion
addition but only a reduction of the original area Benevola de Cebu, G.R. No.77243, Oct. 26,
that was published no longer require a 1989.)
republication because the amended area was
already included in the first publication In special proceedings, the purpose of execution
of judgment is to establish a status, condition or
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fact; in land registration proceedings, the - Binds the land and quiets title thereto, subject
ownership by a person of a parcel of land is sought only to such exceptions or liens as may be
to be established. After the ownership has been provided by law
proved and confirmed by judicial declaration, no - Conclusive upon and against all persons
further proceeding to enforce said ownership is including the national government and all
necessary, except when the adverse or losing branches thereof, whether or not mentioned by
party had been in possession of the land and the name in the application or notice
winning party desires to oust him therefrom.
(Ronald Ting v. Liro, G.R. No. 168913, Mar. 14, Contents of the Decree (DMD-DO)
2007.) (P.D. 1529, § 31.)
1. Date, hour and minute of its entry
Partial judgment 2. Whether the owner is Married or unmarried,
In a case where only a portion of the land subject and if married, the name of the spouse;
of registration is contested, the court may render provided that if the land is conjugal property,
partial judgment provided that a subdivision plan the decree shall be issued in the name of both
showing the contested and uncontested portions spouses
approved by the Director of Lands is previously 3. If the owner is under Disability, the nature of
submitted to said court. (P.D. 1529, § 28.) such disability, and if a minor, his age
4. Description of the land and shall set forth the
Post-Judgment Incidents estate of the owner, and also show their relative
Writ of Possession: employed to enforce a easements, liens, attachments, and other
judgment to recover the possession of land. It encumbrances
commands the sheriff to enter the land and give 5. Other matters to be determined in pursuance of
possession of it to the person entitled under the the law
judgment; no prescription against: (1) the loser
and (2) anyone unlawfully and adversely Process of Issuing the OCT
occupying the land (P.D. 1529, § 39-42.)
1. Within 15 days from finality of order of judgment
When writ of possession may not issue: When directing registration of title – court orders the
a party who entered into the property after LRA to issue decree of registration and
issuance of final decree, is not an oppositor in the certificate of title
registration proceeding, and is in possession of the 2. Clerk of court will send order of court and
land for at least 10 years copies of judgment
3. Writ of Demolition may be issued. The court
Writ of Demolition: the complement of writ of has authority to order, as a consequence of the
possession; to demolish improvements introduced writ of possession issued by it, the demolition
by the defeated oppositor or his successor-in- of improvements introduced by the defeated
interest oppositor or his successor-in-interest
4. Administrator will issue a decree of registration
Means to Recover Possession and original and duplicate of OCT that is signed
- Forcible entry by him, enter, and file decree of registration in
- Unlawful detainer LRA
- Accion publiciana 5. Send to ROD the original and duplicate of title
- Accion reivindicatoria and certificate for entry in his registration book
6. Enter in record book, dated, signed, numbered
Decree of Registration (P.D. 1529, § 31.) and sealed to take effect upon date of entry
- The decree issued by the LRA pursuant to the 7. ROD to send notice to registered owner that his
order of the court owner’s duplicate is ready for delivery after
payment of fees
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8. ROD shall send duplicate and note on each extrinsic fraud. Actual fraud “proceeds from an
certificate of title to whom it is issued intentional deception practiced by means of the
9. Original copy to be filed in ROD misrepresentation or concealment of a material
10. Bound in consecutive order fact.” (Mendoza v. Valte, G.R. No. 172961, Sep. 7,
2015.)
Review of Decree of Registration
Remedy available in cases of actual fraud Intrinsic fraud refers to the acts of a party at a trial
committed in the adjudication or confirmation of that prevented a fair and just determination of the
title. (P.D. 1529, § 32.) case, but the difference is that the acts or things,
like falsification and false testimony, could have
Party to File (P.D. 1529, § 32.) been litigated and determined at the trial or
- Any aggrieved party, including persons deprived adjudication of the case. (Pinausukan Seafood
of opportunity to be heard, including the House v. Far East Bank & Trust Co., G.R. No.
government 159926, Jan. 20, 2014.)
- Aggrieved party does not need to be an
oppositor or original claimant in the proceedings Examples of Extrinsic Fraud
(Ramirez v. CA, G.R. L-38185, Sep. 24, 1986.)
Parties who Cannot File 1. When the applicants for registration
- An oppositor who abandoned his claim suppressed the fact that the petitioners (for
- An oppositor who had notice of the proceedings review of decree) were the legal and rightful
but failed to raise his claims (Crisolo v. CA, G.R. owners of the land in question, and that the
No. L-33093, Dec. 29, 1975.) applicants merely possessed the land as
antichretic creditors
Requisites for Review (ReDeFFiN) 2. When the applicant omits other persons’
(Walstrom v. Mapa, G.R. No. L-38387, Jan. 29, interests and claims on the land
1990.) 3. Deliberate misrepresentation that the land
1. Petitioner has a Real and dominical right; involved was uncontested
2. He was Deprived thereof; 4. Obtaining adjudication in the name of a co-
3. Through Fraud; owner, which the applicant knew had not been
4. Petition is Filed within 1 year from issuance of allotted to him in the partition
the decree; and 5. Intentionally concealing facts
5. The property has Not yet passed to an 6. Conniving with the land inspector
innocent purchaser for value 7. Deliberately failing to notify parties entitled to
notice
Fraud 8. Misrepresenting the identity of the land
Extrinsic fraud refers to a fraud committed to the involved
unsuccessful party by his opponent, preventing 9. Inducing a party not to oppose application
him from fully exhibiting his case by keeping him 10. Deliberate failure to disclose possession by
away from court, a false promise of a compromise; other persons
or where the defendant never had knowledge of
the suit, being kept in ignorance by the acts of the Note: In all cases, the allegation of fraud must be
plaintiff; or when an attorney fraudulently or substantiated with specific, intentional acts to
without authority connives at his defeat. (Baclaran deceive and deprive another of his right (Crisolo v.
Marketing Corp. v. Nieva, G.R. No. 189881, Apr. CA, G.R. No. L-33093, Dec. 29, 1975.)
19, 2017.)
Innocent Purchaser for Value
Different kinds of fraud exist, but the law allowing For a petition for review of the decree to prosper,
fraud as a ground for a review or reopening of a the land must not have passed to an innocent
land registration decree contemplates actual and purchaser for value.
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Innocent purchaser for value is one who buys

the property of another, without notice that some
other person has a right or interest in such
property and pays the full price for the same, at the
time of such purchase or before he has notice of
the claims or interest of some other person in the
property. One claiming to be an innocent
purchaser for value has the burden of proving such
status. (Leong v. See, G.R. No. 194077, Dec. 3,
2014.)
Note: Where innocent third persons who rely on

the correctness of the certificate of title thus issued
acquired rights over the property, the court cannot
disregard such rights and order the total
cancellation of the certificate. (Tenio-Obsequio v.
Court of Appeals, G.R. No. 107967, Mar. 1, 1994.)
Note: “the defense of having purchased the

property in good faith may be availed of only where
registered land is involved and the buyer had
relied in good faith on the clear title of the
registered owner." It does not apply when the land
is not yet registered with the Registry of Deeds.
(Heirs of Gregorio Lopez v. Development Bank of
the Phils., G.R. No. 193551, Nov. 19, 2014.)
Other Grounds for Review

- Fatal infirmity of the decision for want of due
process
- Lack of jurisdiction of the court
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III. REMEDIES
(Tables BASED ON STUDY GUIDES BY ATTY. Vivencio Abaño)
TIMELINE: HEARING JUDGMENT FINALITY DECREE OCT
Motion to Lift/Set Aside Order of Default Motion for New Trial Relief from Judgment
Remedy
(Rule 9, § 3) (Rule 37) (Rule 38, § 2)
Party to File Defaulted oppositor Aggrieved party Aggrieved Party
Prescriptive Period/ Before judgment Within 15 days from receipt of the judgment Within 60 days from the knowledge of and 6
Time to File months from judgment
FAME-V 1. FAME FAME, with an affidavit of merit
Fraud; Accident; Mistake; Excusable 2. Newly discovered evidence In case of extrinsic fraud, a party must state
Negligence; and with Valid Defense - Discovered after trial deprivation of hearing or prevention of appeal
- Could not be discovered earlier, even
with the exercise of diligence
Grounds/Requisites
- It will probably alter judgment
3. Award of excessive damages, or
insufficiency of evidence to justify a
decision, or that the decision is against
the law
Other Notes Must be under oath
Appeal
By aggrieved party
Within 15 days from receipt of the judgment
To the CA by ordinary appeal;
Then to the SC by petition for review or appeal
by certiorari, when only questions of law are
involved
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(continued) OCT 1 YEAR
Petition for Review Action for Reconveyance

Remedy
(P.D. 1529, § 32) (P.D. 1529, § 96; Act 496, § 102)
The aggrieved party, including persons deprived of the The aggrieved party, whose land was registered wrongly to another person
Party to File
opportunity to be heard, including the government
Within 1 year from the entry of the decree of Before issuance of the decree, or within/after one year from entry thereof
registration
- When based on fraud: Institute within 4 years from the discovery of the fraud
- When based on implied trust: Institute within 10 years from the issuance of OCT or
TCT
Prescriptive Period/
Time to File
Imprescriptible in the following cases:
- When brought by the registered owner or his children, co-heir, or plaintiff-in-
possession
- When based on express trust
- When based on a void contract
1. Actual or extrinsic fraud committed outside the trial,
preventing the petitioner from presenting his side
Grounds/Requisites
2. Fatal infirmity in the decision for want of due process
3. Lack of jurisdiction of the court
- Available provided the land has not passed to an - Available provided the land has not passed to an innocent purchaser for value
innocent purchaser for value - An action in personam
- Must be filed in the same registration case
- Not necessary for the petitioner to procure the lifting A complaint for reconveyance admits the registration of title of another party but claims
of the order of default, because fraud might itself that such registration was erroneous or wrongful. It seeks the transfer of the title to the
Other Notes
prevent him from filing an answer or moving for the rightful owner, or the one with a superior right, without prejudice to innocent purchasers.
lifting of the order of default (Garcia v. Mendoza, It seeks the transfer of a title issued in a valid proceeding. Relief may be granted based
G.R. No. 91729, Nov. 19, 1991) on intrinsic fraud (that committed on the true owner, not fraud committed on the
procedure amounting to lack of jurisdiction. (Aboitiz v. Po, G.R. Nos. 208450 & 208497,
June 5, 2017)
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Action for Compensation from

Remedy Action for Damages Cancellation Suit
Assurance Fund
Aggrieved party An aggrieved party who meets the The aggrieved party or the government
following:
23. Sustains loss or damage or is
deprived of land or interest
24. Loss or damage results from:
- Fraudulent registration after the
Party to File
land’s original registration, or
- Any error or omission in the
certificate or any entry in the
registration book
25. No negligence on his part, and
26. He is barred from recovering the land
- After 1 year from the decree, and no Within 6 years from the issuance of the
Prescriptive
reconveyance is possible due to an IPV certificate of title
Period/
- Within 4 years from the discovery of
Time to File
fraud (actual or constructive)
- Filed against the person responsible for 1. In case of double title:
- Filed against the person responsible for fraud, the Register of Deeds, and the - The earlier title prevails, unless
fraud National Treasurer procured by fraud or is jurisdictionally
- Compensation is equivalent to the flawed.
value of the land at the time of loss - The latter title is void even if IPV
- Execution is first sought against the derives title therefrom.
Notes person responsible for fraud, then 2. In case of non-registered land:
against the national government, if the - To be filed by the Sol. Gen. for
person is insolvent cancellation or reversion to the State
- Voiding or cancellation of OCT does
not affect derivative TCTs if their
holders are not given the opportunity to
be heard and defend their title
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Quieting of Title
Remedy Reversion Suit
(Art. 476, NEW CIVIL CODE)
Solicitor General By registered owner or person with an equitable right or interest
Party to File
in the property
Imprescriptible - If the plaintiff is in possession: imprescriptible
Prescriptive
- If plaintiff not in possession: within 10 years from the loss of
Period/Time to File
possession
Grounds Requisites
1. Violation of Sections 118, 120, 121, and 122 of the Public 1. Complainant has a legal or equitable title to or interest in the
Land Act (ex. Alienation or sale of homestead executed within real property subject of the action; and
the 5-year prohibitory period) 2. The deed, claim, encumbrance or proceeding claimed to
2. When the land patented and titled is not capable of be casting a cloud on his title must be shown to be invalid
registration or inoperative despite its prima facie appearance or validity.
3. Failure of the grantee to comply with conditions imposed by
law to entitle him to a patent or grant - An action quasi-in rem
Notes 4. When an area is an expanded area - An ordinary civil case brought to remove clouds on the title to
5. When the land is acquired in violation of the Constitution (e.g. real property or any interest therein, because of any contract,
land acquired by an alien) record, claim, encumbrance, or proceeding that is void,
voidable, or unenforceable, and may be prejudicial to said title.
- The objective is to restore public land fraudulently awarded
and disposed of to private individuals or corporations to the
mass of public domain;
- Indefeasibility of title, prescription, laches, and estoppel do not
bar reversion suits.
Criminal Action
Remedy Annulment of Judgment
(Act 496, § 496)
An exceptional remedy in equity available only when other The State may criminally prosecute for perjury the party who
remedies are unavailable, and only if the judgment was rendered obtains registration through fraud, such as by stating false
Notes by a court lacking jurisdiction or through extrinsic fraud. (Aboitiz assertions in the sworn answer required of applicants in cadastral
v. Po, G.R. Nos. 208450 & 208497, June 5, 2017) proceedings (People v. Cainglet, G.R. Nos. L-21493-94, Apr. 29,
1966).
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Petitions and Motions after Original Who may file Petition:

Registration - Registered owner, or
- Other person having an interest in the registered
I. Amendment and Alteration of Certificate of property, or
Title (P.D. 1529, § 108.) - The ROD, in proper cases, with the approval of
the LRA Administrator.
General Rule: A certificate of title or a
memorandum entered therein in the registration II. Lost Duplicate Certificate (P.D. 1529, § 109.)
book cannot be altered or amended. - Available remedy in cases of loss, theft, or
Exception: Alterations and amendments may be destruction of an owner’s duplicate certificate of
made through a direct proceeding in court title.
(summary proceeding). A court order is - This is the proper remedy when the duplicate
necessary to alter entries of such registration title of the landowner is lost, not the
books. reconstitution of the title.
- Not available when the certificate is not in fact
Grounds (CRIMENN) lost or stolen; any such proceeding will be void
1. When registered Interests of any description, for lack of jurisdiction (New Durawood v. CA,
whether vested, contingent, expectant, or G.R. No. 111732, Feb. 20, 1996.)
inchoate, have terminated and ceased;
2. When New interests have arisen or been Procedure
created which do not appear upon the 1. The owner shall send due notice under oath to
certificate; the Register of Deeds as soon as the loss or
3. When any Error, omission, or mistake was theft is discovered.
made in entering a certificate or any 2. If a duplicate certificate is lost or destroyed, or
memorandum thereon or on any duplicate cannot be produced by a person applying for
certificate; the entry of a new certificate to him or the
4. When the Name of any person on the certificate registration of any instrument, a sworn
has been changed; statement of the fact of such loss or destruction
5. When the registered owner has been may be filed by the registered owner or other
Married, or, registered as married, the persons in interest and registered.
marriage has been terminated and no right or 3. Upon the petition of the registered owner or
interest of heirs or creditors will thereby be other persons in interest, and after notice and
affected; due hearing, the court may direct the issuance
6. When a Corporation, which owned registered of a new duplicate certificate.
land and has been dissolved, has not - Notice should be sent to all interested
conveyed the same within three years after its persons as shown in the encumbrances
dissolution; and annotated in the OCT on file with the ROD.
7. When there is reasonable ground for the - The new duplicate shall indicate that it is
amendment or alteration of title (Paz v. issued in place of the lost duplicate
Republic, G.R. No. 157367, Nov. 20, 2011.) certificate. It shall have the same effects as
the original duplicate.
The following are corrections permitted in the
title: III. Petition Seeking Surrender of Duplicate
- Alterations that do not impair rights; Title (P.D. 1529, § 107.)
- Alterations which impair rights: with the consent
of all parties - Remedy available when a person in possession
- Alterations to correct obvious mistakes of the owner’s duplicate certificate fails or
refuses to surrender the same.
- Party in interest may file a petition in the RTC to
compel the surrender of such duplicate title.
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Grounds Material facts to be shown:

1. When necessary for the issuance of a new 1. That the certificate of title had been lost or
certificate of title, pursuant to voluntary and destroyed;
involuntary conveyances 2. That the documents presented by petitioner are
2. When necessary for amendment or sufficient and proper to warrant reconstitution
alternation, pursuant to a court order of the lost or destroyed certificate of title;
3. That the petitioner is the registered owner of the
Court Action property or had an interest therein;
After hearing, the court may: 4. That the certificate of title was in force at the
- Order the person holding the certificate to time it was lost or destroyed; and
surrender the same, and direct the entry of a 5. That the description, area, and boundaries of
new certificate or memorandum upon such the property are substantially the same and
surrender, or those contained in the lost or destroyed
- Order the annulment of the owner's duplicate certificate of title (Republic v. Lorenzo, G.R.
and issue a new certificate, if the person No.172338, Dec. 10, 2012.)
withholding the duplicate certificate is not
amenable to the court's process or if the Judicial Reconstitution
certificate cannot be surrendered for any
reason. The new certificate shall contain a Requirements (LDR-FB)
memorandum of the annulment of the 1. The certificate of title had been lost or
outstanding duplicate. destroyed.  
2. The Documents presented by the petitioner are
IV. Reconstitution of Original Certificate of sufficient and proper to warrant reconstitution
Title of the lost or destroyed certificate of title.  
- The restoration of the instrument which is 3. The petitioner is the Registered owner of the
supposed to have been lost or destroyed in its property or had an interest therein.  
original form and condition.
4. The certificate of title was in Force at the time it
- When the owner’s duplicate certificate of title
was lost or destroyed.  
has not been lost but is in fact in the
5. The description, area, and Boundaries of the
possession of another person, then the
property are substantially the same and those
reconstituted certificate is void, because the
contained in the lost or destroyed certificate of
court that rendered the decision had no
title. (Heirs of Toring v. Heirs of Boquilaga, G.R.
jurisdiction. Reconstitution can validly be
No. 163610, Sep. 27, 2010, citing R.A. 26, § 2,
made only in case of loss of the original
3, 12 and 13.)
certificate. (Alcazar v. Arante, G.R. No.
177042, Dec. 10, 2012)
Note: The claimants must prove that a title had
- When reconstituted, the new title has the same
been issued and that said certificate of title was
validity as the old one.
still in force at the time it was lost or destroyed. It
is necessary that the RD issue a certification that
Purpose
such was in force at the time of its alleged loss or
To have the same reproduced, after proper
destruction. The RD cannot issue such
proceedings, in the same form they were when
certification merely because of the dearth of
the loss or destruction occurred (Heirs of Pedro
records in its file. (Republic v. Heirs of Sps.
Pinote v. Dulay, G.R. No. L-56694, Jul. 2, 1990.)
Sanchez and Meneses, G.R. No. 212388, Dec. 10,
2014.)
Process:
Kinds of Reconstitution:
1. File a petition with the RTC (In rem
1. Judicial
proceeding).
2. Administrative
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2. The court shall cause a NOTICE to be addresses of the owners of such buildings or
PUBLISHED, POSTED, and MAILED. Non- improvements
compliance voids the proceeding as such 5. The names and addresses of the (a) occupants
requirements are jurisdictional. or persons in possession of the property, (b) of
3. When the court grants the petition, it shall issue the owners of the adjoining properties, and (c)
a corresponding order to ROD. of all persons who may have any interest in the
property
Sources for Reconstitution (in order) 6. A detailed description of the encumbrance, if
any, affecting the property
When OCT is to be reconstituted (R.A. 26, § 2.) 7. A statement that no deeds or other instruments
a. Owner’s duplicate of the certificate of title affecting the property have been presented for
b. Co-owner’s, mortgagee’s or lessee’s duplicate registration, or, if there be any, the registration
of said certificate thereof has not been accomplished, as yet
c. Certified copy of such certificate, previously
issued by the ROD Publication and Posting Requirements
d. Authenticated copy of the decree of registration (R.A. 26, § 9-10,12-13)
or patent, as the case may be, which was the These requirements must be complied with at
basis of the certificate of title least 30 days prior to the date of hearing.
e. Deed of mortgage, lease, or encumbrance
containing a description of the property covered General Requirements
by the certificate of title and on file with the 1. Notice shall be published in two successive
ROD, or an authenticated copy thereof issues of the Official Gazette;
indicating that its original had been registered 2. Must be posted on the main entrance of the
f. Any other document which, in the judgment of provincial building and of the municipal building
the court, is sufficient and proper basis for of the municipality or city where the land is
reconstitution. situated; and
3. Additional requirement when source for
When TCT is to be reconstituted (R.A. 26, § 3.) reconstitution is Section 2(c), 2(d), 2(e), 2(f),
a. Same as sources (a), (b), and (c) for 3(c), 3(d), and 3(f):
reconstitution of OCT The notice must be sent by registered mail
b. Deed of transfer or other document containing or otherwise, at the expense of the petitioner,
a description of the property covered by TCT to every person named in said notice (actual
and on file with the ROD, or an authenticated occupants and adjacent owners).
copy thereof indicating its original had been - This notice to adjacent owners, etc. is not
registered and pursuant to which the lost or required when the other sources not
destroyed certificate of title was issued enumerated above are used.
c. Same as sources (e) and (f) for reconstitution
of OCT Contents of Notice (R.A. 26, § 9.)
1. Number of the certificate of title
Contents of Petition (R.A. 26, § 12.) 2. Name of the registered owner
1. That the owner’s duplicate of the certificate of 3. Names of the interested parties appearing in
title had been lost or destroyed the reconstituted certificate of title
2. That no co-owner’s, mortgagor’s, or lessee’s 4. Location of the property
duplicate had been issued 5. The date on which all persons having an
3. The location, area, and boundaries of the interest in the property must appear and file
property such claims as they may have (Puzon v. Sta.
4. The nature and description of the buildings or Lucia, G.R. No. 139518, Sep. 17, 2001.)
improvements, if any, which do not belong to
the owner of the land, and the names and
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Effect of Failure to Comply with Publication or Sources (R.A. 6732, § 2.)

Posting Requirements a. Owner’s duplicate of the certificate of title
- If an order of reconstitution is issued without any b. Co-owner’s, mortgagee’s, or lessee’s
previous publication, such order of reconstitution duplicate of said certificate
is null and void. Even the publication of the
notice of hearing in a newspaper of general V. Registration Of Transaction Evidenced By
circulation like the Manila Daily Bulletin is not in The Lost Document
substantial compliance with the law because ROD is forbidden to effect the registration of lost
Section 13 specifies publication in the OG and or destroyed documents.
does not provide for any alternative medium or
manner of publication (MWSS v. Sison, G.R. No. Steps by interested parties:
L-40309, Aug. 31, 1983.) 1. Procure an authenticated copy of a lost or
destroyed instrument.
- The notice must be actually sent or delivered to
2. Secure an order from the court.
parties affected by the petition for reconstitution.
The order of reconstitution issued without
Offenses in Land Registration:
compliance with the said requirement never
1. Larceny
becomes final - it was null and void (Manila
2. Perjury: false statement under oath
Railroad v. Moya, G.R. No. L-17913, Jun. 22,
3. Fraudulent procurement of certificate
1965.)
4. Forgery
- The failure to meet any of the necessary a. Forging of seal in ROD, name, signature,
publication, notice of hearing, and mailing or handwriting of any officer of court or
requirements did not vest jurisdiction of the case ROD
to the court. Thus, the judgment rendered by the b. Fraudulent stamping or assistance in
RTC regarding the reconstitution of title is void stamping
(Republic v. Sanchez, G.R. No. 146081, Jul. 17, c. Forging of handwriting, the signature of
2006.) persons authorized to sign
d. Use of any document which an impression
Administrative Reconstitution of the seal of the ROD is forged
- Originally embodied in R.A. 26, abrogated 5. Fraudulent sale: sale of mortgaged property
through P.D. 1529, then partially revived through under the misrepresentation that it is not
R.A. 6732. encumbered; deceitful disposition of property
- R.A. 6732 provides for retroactive application as free from encumbrance
thereof to cases 15 years immediately preceding
1989. IV. CADASTRAL REGISTRATION
Cadastral Registration is a proceeding in rem

Requisites (R.A. 6732, § 1.)
initiated by the filing of a petition for registration by
1. There is a substantial loss or destruction of the
the government, not by the persons claiming
original land titles due to fire, flood, or other
ownership of the land subject thereof, and the
force majeure as determined by the
latter are, on the pain of losing their claim thereto,
Administrator of the LRA
in effect, compelled to go to court to make known
2. The number of certificates of title lost or
their claim or interest therein and to substantiate
damaged should be at least 10% of the total
such claim or interest.
number in the possession of the Office of the
ROD; and
Procedure (NN-CP-PAHD-DI)
3. These lost or damaged titles should not be
1. Notice of cadastral survey published once in
less than 500.
OG and posted in a conspicuous place with a
copy furnished to the mayor and barangay
captain
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2. Notice of date of survey by the Bureau of Land the

Management and posting in bulletin board of survey
the municipal building of the municipality or Effect of • No adverse If none of the
barrio, and he shall mark the boundaries of the judgment claim applicants can
lands by monuments set-up in proper places • If the applicant prove that he
thereon fails to prove is entitled to
3. Cadastral survey his title, his the land, the
4. Filing of Petition application same shall be
5. Publication (twice in successive issues of may be declared
OG), mailing, posting dismissed public (res
6. Filing of Answer without judicata).
7. Hearing of the case prejudice (no
8. Decision res judicata).
9. Issuance of the decree and certificate of title
Patents
P.D. 1529 CADASTRAL
Nature Voluntary Compulsory Title Issued Pursuant to Registration of Patent
Applicant Landowner Director of Indefeasible when registered and deemed
Lands incorporated with Torrens system 1 year after the
Lands 1. Usually All classes of issuance of a patent. The court, in the exercise of
covered involves lands are its equity jurisdiction, may direct reconveyance
private land included. even without ordering the cancellation of title.
2. It may also
refer to public General Rule: May not be opened 1 year after
agricultural entry by LRA (otherwise, confusion and
lands if the uncertainty on the government system of the
object of the distribution of public lands may arise and this must
action is be avoided).
confirmation
of an Exception: if it is annullable on the ground of
imperfect title. fraud, then it may be reopened even after 1 year
Parties Applicant and Government / because registration does not shield bad faith.
opponent landowners
must come to Note: An OCT issued on the strength of a patent
court as partakes the nature of a certificate issued in a
claimants of judicial proceeding. (Flores v. Bagaoisan, G.R. No.
their own 173365, Apr. 15, 2010)
lands
Purpose Petitioner Government Homestead Restrictions:
comes to court asks the court 1. Land cannot be alienated within 5 years after
to confirm his to settle and approval of the application for patent
title and seeks adjudicate the 2. It cannot be liable for satisfaction of debt within
the registration title of the land 5 years after approval of patent application
of the land in his 3. Subject to the repurchase of heirs within 5
name years after a valid alienation (i.e., made after
A person Landowner Government the prohibitory period)
who 4. No private corporation, partnership,
requests association may lease land subject of a
homestead patent unless it is solely for a
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commercial, industrial, educational, religious, A violation of the 5-year prohibitory period, as

or charitable purpose, or right of way (subject provided by the Public Land Act, would produce
to the consent of grantee and approval of the effect of annulling and canceling the grant, title,
Secretary of Environment & Natural patent, or permit originally issued, and cause the
Resources) reversion of the property and its improvements to
the State. However, for reversion to be declared
Exceptions: by the Court, an action for reversion must first be
- Action for partition because it is not a filed by the Office of the Solicitor General.
conveyance However, the defense of in pari delicto cannot be
- Alienations or encumbrances made in favor of invoked in this case as the same is inapplicable
the government when a public policy will be violated. (Maltos v.
Heirs of Borromeo, G.R. No. 172720, Sep. 14,
A homestead patent is a gratuitous grant from the 2015.)
government "designed to distribute disposable
agricultural lots of the State to land-destitute Special Patent
citizens for their home and cultivation." Being a A patent to grant, cede, and convey full ownership
gratuitous grant, a homestead patent applicant of alienable and disposable lands formerly
must strictly comply with the requirements laid covered by a reservation of lands of the public
down by the law. Only lands of the public domain domain.
which have been classified as public agricultural
lands may be disposed of through homestead The DENR, through the Reservation and Special
settlement. The mere issuance of a homestead Land Grants Section of the Land Management
patent does not automatically remove the land Division, is tasked to issue special patents in favor
from inalienability and convert it into alienable of government agencies pursuant to special laws,
agricultural land. proclamations, and executive orders.
Before lands of the public domain may be the Procedure for Registration of Public Lands
subject of a homestead application, there must (IFEFeeD)
first be a positive act of the government, 1. Official Issues an instrument of conveyance
declassifying a forest land and converting it into 2. The instrument is Filed with ROD
alienable or disposable land for agricultural 3. The instrument is Entered in the books and the
purposes. (Republic v. Heirs of Daquer, G.R. No. owner’s duplicate is issued
193657, Sep. 4, 2018.) - The instrument is only:
- A contract between the Government and
Erring Homesteader Not Barred by Pari the private person. It does not effect
Delicto conveyance unless registered.
- Pari delicto rule does not apply in void contracts Registration is the operative act that
- Violation of prohibition results in a void contract conveys or affects land insofar as third
- Action to recover does not prescribe persons are concerned.
- Evidence of authority to the ROD to
The State prohibits the sale or encumbrance of the register.
homestead (PD 1529, sec. 116) within five years 4. Fees are paid by the grantee
after the grant of the patent. After those five years, 5. The land is Deemed registered under the
the law impliedly permits alienation of the Torrens System upon issuance of the
homestead; xxx such alienation or conveyance certificate of title
(Section 117) shall be subject to the right of
repurchase by the homesteader, his widow or A judgment approving the subdivision of a parcel
heirs within five years (Morla v. Belmonte, G.R. of land does not preclude other parties with a
No. 171146, Dec. 7, 2011.) better right from instituting free patent applications
over it. Entitlement to agricultural lands of the
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public domain requires a clear showing of alienation. Any previous restrictions on agricultural
compliance with the provisions of Commonwealth free patents are now removed. However, this does
Act No. 141 or the Public Land Act. (Taar v. not affect the right of redemption for transactions
Lawan, G.R. No. 190922, Oct. 11, 2017.) made in good faith before March 9, 2019. (R.A.
11231)
Restriction on Alienation or Encumbrance of
Lands Titled Pursuant to Patents Free Patents to Residential Lands (R.A. 10023)
General Rule: Lands under free patents or R.A. 10023 allows the granting of free patents to
homestead patents are prohibited from being untitled public alienable and disposable lands
alienated or encumbered. which have been zoned as residential.
Exception: Allowed if done in favor of the Residential Lands (R.A. 10023, Sec 2)
government, within 5 years from and after the R.A. 10023 applies to all lands zoned as
issuance of the patent or grant. When a residential areas, including townsites as defined
conveyance is made within that period, the owner- under the Public Land Act.
vendor, his widow, or heirs, may repurchase the
same within 5 years from the conveyance, such Zoned residential areas located inside a delisted
right cannot be waived (Republic v. Heirs of Felipe military reservation or abandoned military camp,
Alejaga, Sr., G.R. No. 146030, Dec. 3, 2002.) and those of LGUS or townsites which preceded
R.A. 7586 or the National Integrated Protected
Despite the registration of the land and the Areas System (NIPAS) law, shall also be covered.
issuance of a Torrens title, the State may still file
an action for reversion of a homestead land that Note: The LGU shall certify that these residential
was granted in violation of the law. The action is lands are not needed for public use or public
not barred by the statute of limitations. The State service.
cannot be estopped by the omission, mistake, or
error of its officials or agents. It may revert the land Qualifications (R.A. 10023, Sec. 1, 3)
at any time, where the concession or disposition is
void ab initio. (Republic v. Heirs of Daquer, G.R. Filipino citizens who are residents with
No. 193657, Sep. 4, 2018) continuous possession and actual occupation
Homestead patents: Transfer or conveyance of of residential land, either by himself or through his
any homestead after 5 years but before 25 years predecessor-in-interest, under a bona fide claim
after the issuance of the title must be approved by of acquisition of ownership for at least 10 years
the DENR Secretary. before the filing of the application may apply for a
Free Patent Title.
Emancipation patents: Lands acquired under
emancipation patents issued to landless tenants Note: A person with dual citizenship under R.A.
and farmers must not be alienated or encumbered 9225 shall be considered a Filipino citizen. A
within 10 years from the issuance of the title. person employed in distant locations, either
foreign or domestic, in public or private service,
Conveyances by “non-Christian tribes”: May such that he is not able to stay at his place of
be made only when the person so conveying can residence for long periods, is deemed actual
read and understand the language in which the occupants.
instrument or deed is written. If such a person is
illiterate, the conveyance must be approved by the Maximum Areas (R.A. 10023, Sec. 1)
then Commissioner of Mindanao and Sulu. Highly urbanized cities 200 sqm.
Other cities 500 sqm.
Free patents: Agricultural free patent shall now be First and second class
750 sqm.
considered as title in fee simple and shall not be municipalities
subject to any restriction on encumbrance or
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Other municipalities 1000 sqm. (a) If approved, the PENRO shall sign the
patent and forward it to the RD for
Procedure (R.A. 10023 Sec. 3) registration.
27. The application shall be filed with the CENRO, (b) If disapproved, the applicant may appeal to
with the following requirements: the DENR Secretary.
(a) Approved survey plan or cadastral map;
(b) Technical description of the land; No Prohibition Period (R.A. 10023, Sec. 5)
(c) Sketch map showing adjacent lots, Unlike in a free patent and homestead patent
corners, and natural or manmade features granted according to the Public Land Act, there is
defining its boundaries; no prohibition period and restrictions against the
(d) Affidavit of 2 disinterested barangay encumbrance or alienation of the residential land
residents attesting to the truth of the covered by free patents under R.A. 10023.
statements in the application; and
(e) RTC certification that there is no pending Special Patents under R.A. 10023
land registration case involving the land. Public land actually occupied and used for public
28. The CENRO shall cause the posting of notices schools, municipal halls, public plazas or parks,
for 15 days in 2 conspicuous places in the and other government institutions for public use or
locality and shall process the application within purpose may be issued special patents under the
120 days. name of the national agency or LGU concerned.
(a) If disapproved for insufficient documents, All lands thereby titled shall not be disposed of
the application may be refiled. unless sanctioned by Congress if owned by the
(b) If approved, the records shall be forwarded national agency or sanctioned by the sanggunian
to the PENRO concerned through an approved ordinance if
29. The PENRO shall have 5 days to either owned by the LGU.
approve or disapprove the application.
Summary of Patents
TO WHOM
KINDS OTHER REQUIREMENTS
GRANTED
1. Grantee does not own more than 12 hectares of agricultural
land in the Philippines or has not had the benefit of any
gratuitous allotment of more than 12 hectares (§ 12)
To any Filipino
Homestead 2. Must have resided continuously for at least 1 year in the
citizen over the
Patent municipality where the land is situated, or in the municipality
age of 18 years or
(C.A. 141) adjacent to the land (§ 14)
head of a family
3. Must have cultivated at least 1/5 of the land continuously
since the approval of application (§ 14)
4. Payment of required fee (§ 14)
1. Order of priority in distribution:
Any qualified
Emancipation a. agricultural lessees and share tenants;
farmer beneficiary
Patent / b. regular farmworkers;
who must be a
Certificate of c. seasonal farmworkers;
landless resident
Land d. other farmworkers;
of the same
Ownership e. actual tillers or occupants of public lands;
barangay (or in the
Awards f. collectives or cooperatives of the above beneficiaries;
absence thereof, a
(CLOA) and
landless resident
(P.D. 27 & g. others directly working on the land.
of the same
R.A. 6657) 2. Landless (owns less than 3 has. of agricultural land)
municipality)
3. A Filipino citizen
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4. At least 15 years of age or head of the family at the time of
acquisition of property
5. Has willingness, availability, and aptitude to cultivate and
make the land productive as possible.
1. Grantee does not own more than 12 hectares of land
2. Has continuously occupied and cultivated, either by himself
To any natural- or his predecessors-in-interest, tracts of disposable
born citizen of the agricultural public land for at least 30 years prior to March
Free Patent Philippines 28, 1990 (date of effectivity of RA 6940)
(C.A. 141) (filing ended Dec. 3. Has paid real property taxes on the property while the same
31, 2000) has not been occupied by any person
Note: Grant will be limited to 12 hectares only

1. Maximum land area:
Highly urbanized cities 200 sqm.
Other cities 500 sqm.
First and second class
750 sqm.
municipalities
Other municipalities 1000 sqm.
Residential
Any Filipino citizen 2. Land applied for is not needed for public service and/or
Patent
who is an actual public use, as certified by the LGU
(R.A. 10023)
occupant of a 3. Continuous possession and occupation of the land by the
residential land applicant or his predecessor-in-interest, under a bona fide
A type of free
claim of acquisition of ownership for at least 10 years before
patent
the filing of the application for patent
Note: Zoned residential areas inside a delisted military

reservation or abandoned military camp, and those of LGUs or
townsites, preceding the National Integrated Protected Areas
System (NIPAS) law, are included.
1. To have at least 1/5 of the land broken and cultivated within
Citizens of the 5 years from the date of the award
Philippines of 2. Before any patent is issued, he must show actual
lawful age or head occupancy, cultivation, and improvement of at least one-fifth
of the family may of the land until the date of final payment.
purchase public 3. For agricultural lands suitable for residential, commercial, or
Sales Patent
agricultural land of industrial purposes, a patent is issued only after:
(C.A. 141)
not more than 12 a. Full payment of purchase price, and
hectares b. Completion of the construction of permanent
sold through public improvements appropriate for the purpose for which the
auction/sealed land is purchased (must be completed within 18 months
bidding from date of award)
To Indigenous CADT refers to a title formally recognizing the rights of

Certificate of
Community/People possession and ownership of ICCs/IPs over their ancestral
Ancestral
by the National domains identified and delineated in accordance with this law.
Domain Title
Commission on
(CADT) and
Indigenous People CALT refers to a title formally recognizing the rights of ICCs/IPs
Certificate of
(NCIP) over their ancestral lands.
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Ancestral
Land Title 2 modes of acquisition of CADTs and CALTs:
(CALT) 1. By Native Title of ICCs/IPs over both ancestral domains
(R.A. 8371) and lands
2. By Torrens Title under Public Land Act and the Land
Registration Act (now Property Registration decree) over
ancestral lands only:
a. Continuous possession and occupation in the concept of
an owner since time immemorial or for a period of not
less than 30 years of individually-owned ancestral lands
by individual members of cultural communities, by
themselves or through their predecessors-in-interest
b. Claims are uncontested by the members of the same
ICCs/IPs
c. Individually-owned ancestral lands must be agricultural
in character and are actually used for agricultural,
residential, pasture, and tree farming purposes for it to
be classified as alienable and disposable agricultural
lands of the public domain
d. The ancestral lands shall be classified as public
agricultural lands regardless of whether they have a
slope of 18% or more
e. Option to register ancestral land must be exercised
within (20) years from October 29, 1997 (approval date
of the IPRA)
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E. SUBSEQUENT REGISTRATION Overview of Voluntary and Involuntary Dealings

VOLUNTARY INVOLUNTARY
Subsequent Registration DEALINGS DEALINGS
Involves incidental matters after original Refer to deeds, Refer to writs or
registration, brought before the land registration instruments, or orders or processes
court by way of motion or petition and filed by the documents which are issued by a court of
registered owner or a party in interest. results of the free and record affecting
voluntary acts of the registered land which
Necessity and effects of registering voluntary parties thereto by law should be
and involuntary instruments registered to be
Except for a will that purports to convey or affect effective, and also to
a registered land, the mere execution of the such instruments
deeds of sale, mortgage, or lease or other which are not the
voluntary documents serves only 2 purposes: willful acts of the
(c) As a contract between the parties registered owner and
thereto; and which may have been
(d) As evidence of authority to the ROD to executed even
register such documents. (Sec. 51, P.D. without his knowledge
1529) or against his consent
(e) Sale (m) Attachment
Registration as the operative act of (f) Real property (n) Injunction
conveyance mortgage (o) Mandamus
The registration of the instrument is the operative (g) Lease (p) Sale on execution
act that conveys ownership or affects the land (h) Pacto de retro sale of judgment or
insofar as third persons are concerned. (i) Extra-judicial sales for taxes
settlement (q) Adverse claims
Registration as notice (j) Free or (r) Notice of lis
Registration creates a constructive notice to the homestead patent pendens
whole world of such voluntary or involuntary (k) Powers of attorney
instrument or court writ or process. (P.D. 1529, (l) Trusts
§52) The owner's duplicate The owner's duplicate
certificate of title must certificate of title need
“Rule of Notice” be presented to not be presented.
General Rule: There is an irrefutable record the deed in the
presumption that the purchaser has examined registry and to make a Entry of the
every instrument affecting the title. He is charged memorandum on the instrument in the
with notice of every fact shown by the record and title. ROD's daybook is
is presumed to know every fact which an sufficient notice to all
examination of the record would have disclosed An innocent persons, even if the
(Garcia v. CA, G.R. Nos. L-48971, Jan. 22, 1980). purchaser for value owner's duplicate
becomes the certificate of title is not
Exception: There is no effect of constructive registered owner presented.
notice when there is fraud involved in the once he:
transaction. (Id.)
(s) Presents and files
with the ROD a
duly notarized
deed of
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conveyance and Every person dealing with registered land may

the same is safely rely on the correctness of the certificate of
entered in the title issued therefore. Even if a decree in a
daybook, registration proceeding is infected with nullity,
(t) Surrenders or still, an innocent purchaser for value relying on a
presents the Torrens title issued in pursuance thereof is
owner’s duplicate protected (Cruz v. CA & Suzara, G.R. No.
certificate of title 120122, Nov. 6, 1997).
covering the land
conveyed, and If land is registered and is covered by a certificate
(u) Pays the of title, any person may rely on the correctness of
registration fees. the certificate of title, and he or she is not obliged
to go beyond the four (4) corners of the certificate
I. VOLUNTARY DEALINGS to determine the condition of the property. This
rule does not apply, however, when the party has
Rule: Registration of the instrument is the actual knowledge of facts and circumstances that
operative act that transmits or transfers title. would impel a reasonably cautious man to make
Without registration, the instrument is binding such inquiry or when the purchaser has
only between the parties. knowledge of a defect or the lack of title in his
vendor or of sufficient facts to induce a
Exception: Actual knowledge of an unregistered reasonably prudent man to inquire into the status
dealing is equivalent to registration, insofar as of the title of the property in litigation. (Amoguis v.
the third person with knowledge is concerned. Ballado, G.R. No. 189626, Aug. 20, 2018)
Under the Torrens system, a sale of property that Exceptions to Mirror Doctrine: (BOB-MILKA)
is not registered under the Torrens system is The person dealing with registered land must
binding only between the buyer and the seller and look beyond the certificate of title in the following
does not affect innocent third persons. The only instances:
exception to this is “knowledge of an unregistered 30. When the purchaser or mortgagee is a
sale is equivalent to registration.” (Evy Bank/financing institution. They are
Construction v. Valiant Roll Forming Sales Corp., impressed with public interest and thus
G.R. No. 207938, Oct. 11, 2017) require high standards of integrity and
performance. Banks must exercise greater
Mirror Doctrine care, prudence, and due diligence in their
A person dealing with registered land may rely on property dealings. The standard operating
the correctness of the certificate of title issued. practice for banks when acting on a loan
The law does not oblige him to go beyond the application is to conduct an ocular inspection
certificate to determine the condition of the of the property offered for mortgage and to
property (Locsin v. Hizon, G.R. No. 204369, Sept. verify the genuineness of the title to determine
17, 2014) its real owner. (Andres v. PNB, G.R. No.
173548, Oct. 15, 2014).
Where there is nothing in the certificate to indicate
any cloud or vice in the ownership of the property 31. Where the Owner still holds a valid and
or any encumbrance thereon, the purchaser is existing certificate of title covering the same
not required to explore further than what the property. The law protects the lawful holder of
Torrens Title indicates upon its face to find hidden a registered title over the transfer of a vendor
defects or claims that may subsequently defeat bereft of any transmissible right (Tomas v.
his right. (Id.) Tomas, G.R. No. L-36897, June 25, 1980).
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32. When the purchaser is in Bad faith (Egao v. transfers starting from the original rightful owner
CA, G.R. No. 79787, June 29, 1989). to the innocent holder for value, including the
33. Where the land is bought not from the transfer to the forger, must be duly registered,
registered owner but from one whose rights and the title must be properly issued to the
have been Merely annotated on the certificate transferee (Sps. Peralta v. Heirs of Abalon, G.R.
of title (Quiñiano v. CA, G.R. No. L-23024, No. 183448, June 30, 2014).
May 31, 1971).
34. When there are sufficiently strong Indications Although generally a forged or fraudulent deed or
to impel closer inquiry into the location, document is a nullity and conveys no title, it may
boundaries, and condition of the lot become the root of a valid title when the certificate
(Francisco v. CA, G.R. No. L-30162, Aug. 31, of title over the land has already been transferred
1987). from the name of the owner to that of the forger
and the land is sold later to an innocent purchaser
Examples of “strong indications”: for value. A person who deals with registered
(a) When the land sold is in possession of property in good faith will acquire good title from
a person other than the seller a forger and will be absolutely protected by a
(b) When there are occupants other than Torrens title (Sps. Villamil v. Villarosa, G.R. No.
the registered owner 177187, Apr. 7, 2009).
35. When the certificate of title contains a notice While, it is a familiar doctrine that a forged or
of Lis pendens fraudulent document may become the root of a
36. When the purchaser had full Knowledge of valid title, if title to the property has been
flaws and defects of the title (Bernales v. IAC, transferred from the forger to an innocent
G.R. Nos. 71490-91, June 28, 1988). purchaser in good faith, the same does not apply
37. When the purchaser buys from an Agent and in the case of banking institutions or those
not from the registered owner engaged in real estate for they are expected to
exercise more care and prudence than private
Mirror Doctrine not applicable to unregistered individuals in their dealing with registered lands.
lands In the absence of inquiry, the respondent Bank
Notably, the mirror doctrine is not available when cannot and should not be regarded as a
there is no certificate to begin with. While an mortgagee/purchaser in good faith (Erasusta v.
ordinary buyer may rely on the certificate of title CA, G.R. No. 149231, July 17, 2006).
issued in the name of the seller, this defense of
having purchased the property in good faith may Process of Registration (Generally):
be availed of only where registered land is 38. Execution of instrument in a form sufficient in
involved and the buyer had relied in good faith on law. It must contain the names, nationalities,
the clear title of the registered owner. It does not residence, and postal addresses of the
apply when the land is not yet registered with the grantees or others acquiring an interest under
Registry of Deeds. (Heirs of Gregorio Lopez v. the instrument. (P.D. 1529, §55)
DBP., G.R. No. 193551, Nov. 19, 2014). 39. Presentation of the following to the ROD:
(a) Owner’s duplicate certificate
Chain of Title Rule (b) Instrument
General Rule: A forged deed is null and cannot 40. Payment of registration fees and
convey title. documentary stamp taxes
41. The ROD makes and signs a memorandum
Exception: Registration of title from a forger to on the certificate of title
an innocent purchaser for value (§55, Land 42. The ROD issues a Transfer Certificate of Title
Registration Act). However, there must be a (if the instrument involves a transfer of the title
complete chain of registered titles; all the to the land)
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subsequently registered mortgage and a prior

Registration of Real Estate Mortgage (REM) unregistered sale
1. Execution of deed in a form sufficient in law
(public instrument) In unregistered land, an earlier instrument (sale
2. Presentation to the ROD of the following: or mortgage) prevails over a latter one, and the
(a) Deed of mortgage registration of any one of them is immaterial.
(b) Owner’s duplicate certificate of title
3. Payment of fees With registered land, the registered transaction
4. ROD’s entry of memorandum upon the prevails over the earlier unregistered right. Prior
original certificate of title and the owner’s registration of a lien creates a preference as the
duplicate (date and time of filing, file number act of registration is the operative act that
assigned, ROD’s signature) conveys and affects the land. The only exception
5. ROD’s annotation on the deed (date and time to this rule is when a party has knowledge of a
of filing, and reference to volume and page of prior existing interest unregistered at the time he
the registration book in which it was acquires a right, his knowledge of that prior
registered) unregistered interest has the effect of registration
as to him. (Macadangdang v. Martinez, G.R. No.
Note: No mortgagee’s or lessee’s duplicate 158682, Jan. 31, 2005)
certificate shall be issued upon registration of the
REM (P.D. 1529, §60). Registration of Trust
Implied Trusts
Effects of Registration of REM Presentation of a sworn statement claiming
1. Creates a lien that attaches to the property in interest arising from an implied trust, with a
favor of the mortgagee description of the land, the name of the registered
2. Constructive notice of his interest in the owner, and the number of the certificate of title
property to the whole world
Express Trust
Effects of Failure to REM Presentation of the instrument creating the trust
1. The mortgage is valid between the parties but
is not binding against third persons Note: In both cases, a memorandum of the
2. If the personal property mortgaged is particulars of the trust shall be entered by the
delivered, the contract becomes a pledge and words “in trust” or “upon condition” and by
not a chattel mortgage reference by number to the instrument creating
3. A third person’s actual knowledge of the the trust (§65, PD1529)
mortgage has the same effect as registration
Registration of Appointed Trustee by Court
Registration of Lease 1. Presentation of the certified copy of the
It is the lessee, not the lessor, who is required to decree
initiate the registration. The process is the same 2. Surrender and cancellation of the duplicate
with the registration of real estate mortgages. certificate
Similarly, no new certificate is issued. 3. Issuance and entry of a new certificate
Note: When there is a prohibition in mortgaged Other Notes on Voluntary Dealings

property as regards subsequent conveyances, - Builders in Good Faith may register
etc., leasehold cannot be registered. - Aliens may register leases:
Subsequently registered mortgage and a prior - They may be granted temporary rights for
unregistered sale residential purposes
Whether the land is unregistered or registered will - Limit is 25 years, renewable for another 25
determine which one will prevail between a years
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II. INVOLUNTARY DEALINGS 3. No other provision is made in the Decree for

the registration of such right or claim (P.D.
Involuntary Dealings (Generally) 1529, §70)
Transactions affecting land in which cooperation
of registered owner is not needed, or those which Formal Requisites to Register an Adverse
are done even against his will. Claim: (WNR)
1. The adverse claimant must state the following
Adverse Claim in Writing:
Notice to third persons that someone is claiming (a) His alleged right or interest
an interest on the property or has a better right (b) How and under whom such alleged right
than the registered owner thereof. The disputed or interest is acquired
land is subject to the outcome of the dispute (c) The description of the land in which the
(Sajonas v. CA, G.R No. 102377, July 5, 1996). right or interest is claimed
Binding Effect of Adverse Claims (d) The certificate of title number
Annotations of adverse claims operate as a 2. Such statement must be signed and sworn to
constructive notice only to third parties—not to before a Notary public or authorized officer to
the court or the registered owner. These are administer the oath
merely claims of interest or claims of the legal 3. The claimant shall state his Residence or
nature and incidents of the relationship between place to which all notices may be served upon
the person whose name appears on the him
document and the person who caused the
annotation. It does not affect the validity of the Note: Noncompliance with formal requisites
claim or convert a defective claim or document renders the adverse claim non-registrable and
into a valid one. These claims may be proved or ineffective.
disproved during the trial. Thus, annotations are
not conclusive upon courts or upon owners who Examples of Registrable Adverse Claims
may not have reason to doubt the security of their 1. Voluntary instruments of sale and lease, when
claim as their properties' title holders. (University the owner refuses to surrender the duplicate
of Mindanao, Inc. v. Bangko Sentral ng Pilipinas, certificate of title for annotation of the
G.R. Nos. 194964-65, Jan. 11, 2016). voluntary instrument (L.P. Leviste v. Noblejas,
G.R. L-28529, Apr. 30, 1979).
Purposes of Adverse Claim (Arrazola v. 2. An interest on land based on a lawyer’s
Bernas, G.R. No. L-29740, Nov. 10, 1978) contingent fee contract arising after original
(a) Apprises third persons of the controversy registration (Director of Lands v. Ababa, G.R.
over the ownership of the land No. L-26096, Feb. 27, 1979).
(b) Preserves and protects the right of the
adverse claimant during the pendency of Examples of Non-registrable Adverse Claims
the controversy (a) A mere money claim (Sanchez v. CA,
(c) Notice to third persons that any G.R. No. L-40177, Feb. 12, 1976).
transaction regarding the disputed land is (b) A claim based on hereditary rights of the
subject to the outcome of the dispute. children of a deceased parent, when there
Note: Actual knowledge is equivalent to the are probate proceedings and one parent
registration of the adverse claim. is still living (Arrazola v. Bernas, G.R. No.
L-29740, Nov. 10, 1978)
Requisites: (c) A second adverse claim based on the
1. A claimant’s right or interest in the registered same ground by the same claimant
land is adverse to the registered owner; (d) Claims based on occurrences before the
2. Such right arose subsequent to the date of original registration.
original registration;
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(e) Possessor’s claim based on prescription Notes on Adverse Claims

or adverse possession, when the land is The interested party must file with the proper
already registered in the name of another court a petition for the cancellation of an adverse
(Arrazola v. Bernas, G.R. No. L-29740, claim, and a hearing must also first be conducted.
Nov. 10, 1978) The Register of Deeds cannot on its own
automatically cancel the adverse claim for due
Period of Effectivity of Adverse Claim process purposes (Diaz-Duarte v. Ong, G.R. No.
The adverse claim shall be effective for a period 130352, Nov. 3, 1998).
of 30 days from the date of registration.
The effects of a foreclosure sale retroact to the
Cancellation of Adverse Claim date of registration of the mortgage. If the adverse
An adverse claim may be canceled: claim is registered only after the annotation of the
1. After the lapse of 30 days, upon the filing by mortgage at the back of the certificate of title, the
the party-in-interest of a verified petition for adverse claim could not affect the rights of the
such purpose mortgagee, even if the foreclosure of the
2. Before the lapse of said 30 days, upon the mortgage and the public auction sale occurred
filing by the claimant of a sworn petition after the annotation of the adverse claim (Limpin
withdrawing his adverse claim v. IAC, G.R. No. 70987, Jan. 30, 1987).
3. Before the lapse of the 30-day period, when a
party-in-interest files a petition in the proper An adverse claim may exist concurrently with a
RTC for the cancellation of the adverse claim subsequent annotation of a notice of lis pendens
and, after notice and hearing, the court finds (Ty Sin Tei v. Dy Piao, G.R. No. 11271, May 28,
that the claim is invalid. If the court also finds 1958).
the claim to be frivolous, it may fine the
claimant the amount of not less than 1,000 When an adverse claim exists concurrently with a
pesos nor more than 5,000 pesos, in its notice of lis pendens, the notice of adverse claim
discretion. may be validly canceled after the registration of
such notice, since the notice of lis pendens also
Grounds for Cancellation of Adverse Claim serves the purpose of the adverse claim (Villaflor
(P.D. 1529, §64) (MoNoE-UVe) v. Juezan, G.R. No. 35205, Apr. 17, 1990).
Before final judgment, the court may order the
cancellation: Notice of Lis Pendens
1. After showing that notice is only for purpose “Lis pendens” means “pending suit.” It merely
of Molesting an adverse party creates a contingency and not a lien.
2. When it is shown that it is not necessary to
protect the right of the party who caused the Purpose of Lis Pendens
registration thereof A notice of lis pendens is an announcement to the
3. Where the Evidence so far presented by the whole world that a particular real property is in
plaintiff does not bear out the main allegations litigation, serving as a warning that one who
of the complaint acquires an interest over said property does so at
4. When the continuances of the trial are his own risk, or that he gambles on the result of
Unnecessarily delaying the determination of the litigation over the said property (Spouses Po
the case to the prejudice of the other party Lam v. CA, G.R. No. 116220, Dec. 6, 2000).
5. ROD may also cancel by Verified petition of a
party who caused such registration The purpose of the notice of lis pendens is to
constructively advise or warn all people who deal
Note: These grounds are the same as the with the property that they so deal with it at their
grounds for cancellation of Notice of Lis Pendens own risk, and whatever rights they may acquire in
the property in any voluntary transaction is
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subject to the results of the action, and may well proceeding and court were pending, date of
be inferior and subordinate to those which may be institution, reference to the number of certificate
finally determined and laid down therein (Heirs of of title, an adequate description of the land
Marasigan v. IAC, G.R. No. L-69303, July 23, affected and registered owner).
1987).
Effect of Registration
When Notice of Lis Pendens is Proper (QEER- 1. Impossibility of alienating the property in
COP) dispute during the pendency of the suit
1. To Quiet title thereto 2. If alienated, the purchaser is subject to the
2. To Establish a right, equitable estate, or final outcome of the pending suit
interest in specific real property 3. ROD is duty-bound to carry over the notice of
3. To Enforce a lien, charge, or encumbrance lis pendens on all new titles to be issued
against it
4. To Recover possession of a real estate Grounds for Cancellation of Lis Pendens (P.D.
5. To remove Clouds upon the title thereof 1529, §64) (MoNoE-UVe)
6. Any Other proceedings of any kind in court Before final judgment, the court may order the
directly affecting the title to the land or the cancellation:
use of occupation thereof or the building 1. After showing that notice is only for purpose
thereon. of Molesting an adverse party
7. For Partition 2. When it is shown that it is not necessary to
protect the right of the party who caused the
When Lis Pendens is Not Proper (P2LAR) registration thereof
1. Preliminary attachment 3. Where the Evidence so far presented by the
2. Proceedings for the Probate of wills plaintiff does not bear out the main
3. Levies on execution allegations of the complaint
4. Proceedings for Administration of the estate 4. When the continuances of the trial are
of deceased persons and Unnecessarily delaying the determination of
5. Proceedings in which the only object is the the case to the prejudice of the other party
Recovery of a money judgment 5. ROD may also cancel by Verified petition of
the party who caused such registration
Elements to annotate notice of lis pendens
1. Property must be of such character as to be Notes on Lis Pendens
subject to the rule; All findings of fraud should begin the exposition
2. The court must have jurisdiction both over with the presumption of good faith; The erroneous
the person and the res; and annotation of a notice of lis pendens does not
3. The property or res must be sufficiently negate good faith. The overzealousness of a
described in the pleadings. party in protecting pendent lite his perceived
interest, inchoate or otherwise, in the
Effect of Notice of Lis Pendens (P.D. 1529, corporation’s properties from depletion or
§76) dissipation, should not be lightly equated to bad
No action to recover possession, or to quiet title, faith (Lu v. Lu Ym, Sr., G.R. Nos. 153690, 157381
or to remove clouds, or for partition, or other & 170889, Feb. 15, 2011).
judicial proceedings directly affecting title or use
or occupation or buildings thereon, and no Attachment
judgment, and no proceeding to vacate or reverse The legal process of seizing another's property in
any judgment, shall have any effect upon accordance with a writ or judicial order to secure
registered land as against persons other than the satisfaction of a judgment yet to be rendered
parties, unless memorandum or notice is filed Kinds
or registered (stating institution of action or 1. Preliminary
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2. Garnishment To enforce a lien of any description on registered

3. Levy on execution land, any execution or affidavit to enforce such
lien shall be filed with ROD where the land lies.
Registration of Attachment/Other Liens
1. Copy of writ in order to preserve any lien, Register in registration book & memorandum
right, or attachment upon registered land may upon the proper certificate of title as an adverse
be filed with ROD where the land lies, claim or as an encumbrance.
containing the number of certificate of title of
the land to be affected or description of the To determine preferential rights between 2 liens:
land priority of registration of attachment.
2. ROD to index attachment in names of both
plaintiff and defendant or name of the person Tax Sale
for whom property is held or in whose name Sale of land for collection of delinquent taxes and
stands in the records penalties due to the government.
3. If a duplicate of the certificate of title is not
presented: Notes on Tax Sales
(a) ROD shall, within 36 hours, send notice to (a) In personam (all persons interested shall be
the registered owner by mail stating that notified so that they may be given an
there has been registration and request opportunity to be heard)
him to produce a duplicate so that (b) Notice to be given to delinquent taxpayer at
memorandum may be made his last known address
(b) If the owner neglects or refuses to (c) Publication of notice must also be made in
comply, the ROD shall report the matter English, Spanish, and local dialect, posted in
to the court a public and conspicuous place in the place
(c) The court, after notice, shall enter an where the property is situated and at the main
order to the owner to surrender the entrance of the provincial building
certificate at the time and place named (d) Sale cannot affect the rights of other lien
therein holders unless given the right to defend their
4. Although notice of attachment is not noted in rights: due process must be strictly observed
duplicate, notation in the book of entry of ROD (e) A tax lien is superior to an attachment
produces the effect of registration already. (f) There is no need to register a tax lien
because it is automatically registered once
Effects of Registration of Attachment (REEA) the tax accrues
(a) Creates Real right (g) But the sale of registered land to foreclose a
(b) Has priority over Execution sale tax lien needs to be registered
(c) But between 2 attachments, one that is
registered Earlier is preferred Procedure of Registration of Tax Sale
(d) If it is not registered, Actual knowledge 1. Officer’s return shall be submitted to the ROD
has the same effect as registration together with the owner’s duplicate title
2. Register in the registration book
When Attachment may be Discharged 3. The memorandum shall be entered in the
1. Upon giving of a counter-bond; certificate as an adverse claim or
2. When the attachment was improperly or encumbrance
irregularly issued or enforced; or 4. After the period of redemption has expired
3. When attaching party’s bond is insufficient and no redemption was made (2 years from
registration of auction sale), the title must be
Execution Sale canceled and a new title will be issued
5. Before the cancellation, notice shall be sent to
the registered owner, with the directive that he
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surrender title and show cause why it should

not be canceled Non-registrable properties
Basis Non-registrable property
Other Parties Required to Register CIVIL CODE, Properties of public dominion
Involuntary Dealings art. 420
1. Assignee in Involuntary Proceeding for Classifications:
Insolvency (P.D. 1529, §83) (c) Those intended for public
(a) It is the duty of the officer serving the use, such as roads,
notice to file a copy of such notice to ROD rivers, torrents, ports, and
where the property of the debtor is located bridges constructed by
(b) Assignee elected or appointed by the the State, banks, shores,
court shall be entitled to entry of a new roadsteads, and others of
certificate of registered land upon similar character.
presentment of a copy of assignment with (d) Those which belong to
the bankrupt's duplicate certificate of title the State, without being
(c) The new certificate shall state that it is for public use, and are
entered into by him as assignee or trustee intended for:
in insolvency proceedings - public service or
(d) Upon order vacating the insolvency - the development of the
proceedings, any title issued in name of national wealth.
the assignee shall be ordered
surrendered and the debtor shall be WATER CODE The following belong to the
entitled to entry of new certificate in his (P.D. 1067), State:
name. arts. 5 & 6 Rivers and their natural beds;
Continuous or intermittent
2. Government in Eminent Domain (P.D. 1529, waters of springs and brooks
§85) running in their natural beds
(a) The expropriating body is required to file and the beds themselves;
a copy of the judgment in the eminent Natural lakes and lagoons;
domain proceeding within ROD, which All other categories of
states a description of the property, surface waters such as water
certificate number, interest expropriated, flowing over lands, water
nature of public use from rainfall whether natural
(b) A memorandum shall be made on the or artificial, and water from
certificate or, if fee simple is taken, a new agriculture runoff, seepage,
certificate of title shall be issued and drainage;
Atmospheric water;
F. NON-REGISTRABLE PROPERTIES Subterranean or
groundwater;
An applicant for land registration should know Seawater;
what properties or lands cannot be subject to
private appropriation. Those found on private lands
which also belong to the
Note: The Land Registration Court has no State:
jurisdiction over non-registrable properties and Continuous or intermittent
cannot validly adjudge the registration of title in waters rising on such lands;
favor of the applicant for the registration of the Lakes and lagoons naturally
same (Republic v. Feliza, G.R. No. 182913, Nov. occurring on such lands;
20, 2013).
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Rainwater and falling on such person prior to registration (limited effect to 3rd
lands; parties)
Subterranean or Reason: No strict investigation involved
groundwaters; and
Waters in swamps and Subsequent dealings are also valid if recorded.
marshes ROD keeps a daybook and a register, and an
PHIL. CONST., Forest or timberland, public index system is also kept.
art. XII, §2. forest, forest reserves lands,
mineral lands Procedure:
Presentation of instrument dealing with
unregistered land;
Jurisprudence (e) Mangrove swamps 2. If found in order, the instrument is registered;
(f) Foreshore land and 3. If found defective, the registration is refused.
seashore The reason for refusal will be written.
(g) Navigable rivers, streams,
and creeks Under Act 3344, registration of instruments
(h) Lakes and bays affecting unregistered lands is without prejudice
(i) Military reservations to a third party with a better right (Radiowealth
(j) Other kinds of reservations Finance Co. v. Palileo, G.R. No. 83432, May 20,
(i.e., reservations for 1991).
specific purposes made by
executive proclamation) If a parcel of land covered by a Torrens Title is
(k) Watersheds sold, but the sale is registered under Act 3344,
(l) Grazing lands and not under the Land Registration Act, the sale
(m) Previously titled land is not considered registered (Vda. de Melencion
(n) Man-made alluvial deposit v. CA, G.R. No. 148846, Sept. 25, 2007).
along the river
Effect of Registration
G. DEALINGS WITH UNREGISTERED LANDS Registration of an instrument involving
unregistered land in the Registry of Deeds
Need for Registration (P.D. 1529. §113) creates constructive notice and binds a third
No deed, conveyance, mortgage, lease, or other person who may subsequently deal with the
voluntary instrument affecting land not registered same property. (Heirs of Deleste v. Land Bank,
under the Torrens system shall be valid, except G.R. No. 169913, June 8, 2011)
as between the parties thereto, unless such
instrument shall have been recorded in the The reliance on an unnotarized and unregistered
manner herein prescribed in the office of the deed of absolute sale of real property executed in
Register of Deeds for the province or city where one’s favor is misplaced and unwarranted, for the
the land lies. non-registration of the deed meant that the sale
could not bind third parties. The transaction
System of Registration for Unregistered affecting unregistered lands covered by an
Lands unrecorded contract, if legal, might be valid and
Before, the system of registration for unregistered binding on the parties themselves, but not on third
land under the Torrens System (Act 3344) only parties. In the case of third parties, it was
covered voluntary dealings. Now, it includes necessary for the contract to be registered.
involuntary dealings. (Dadizon vs. Court of Appeals, G.R. No. 15911,
Sept. 30, 2009)
Effect: If prospective, it binds 3rd persons after
registration but yields to better rights of 3rd
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Innocent purchasers of unregistered lands

An ordinary buyer may rely on the certificate of
title issued in the name of the seller. He or she
need not look beyond what appears on the face
of the certificate of title. However, the defense of
having purchased the property in good faith may
be availed of only where registered land is
involved and the buyer had relied in good faith on
the clear title of the registered owner. It does not
apply when the land is not yet registered with the
Registry of Deeds. (Heirs of Gregorio Lopez v.
DBP., G.R. No. 193551, Nov. 19, 2014).
Vis-à-vis the Torrens System

A duly registered levy on attachment takes
precedence over a prior unregistered sale. This is
not diminished by the subsequent registration of
the prior sale. This is consistent with the
fundamental principle of the Torrens system that
registration is the operative act that gives validity
to the transfer or creates a lien upon the land.
(Suntay v. Keyser Mercantile, Inc., 2014).
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TORTS AND
DAMAGES
Civil Law
ATENEO CENTRAL
TORTS AND DAMAGES DAMAGES
TOPIC OUTLINE UNDER THE SYLLABUS A. GENERAL CONSIDERATIONS

I. Classification
TORTS II. When damages may be
recovered
A. PRINCIPLES
I. Abuse of right; elements B. DAMAGES IN CASE OF DEATH
II. Unjust enrichment
III. Liability without fault C. GRADUATION OF DAMAGES
IV. Acts contrary to law I. Duty of injured party
V. Acts contrary to morals II. Rules
B. CLASSIFICATION OF TORTS
I. According to manner of
commission
II. According to scope
C. THE TORTFEASOR
I. Direct Tortfeasor
II. Persons made responsible for
others
III. Joint Tortfeasors
D. PROXIMATE CAUSE
I. Concept
II. Cause in fact
III. Efficient intervening cause
IV. Cause as distinguished from
condition
V. Last clear chance
E. LEGAL INJURY
I. Concept
II. Elements of right
III. Violation of right or legal injury
IV. Classes of injury
F. INTENTIONAL TORTS
I. General
II. Interference with rights to
persons and property
III. Interference with relations
G. NEGLIGENCE
H. SPECIAL LIABILTY IN PARTICULAR
ACTIVITIES
I. STRICT LIABILITY
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TORTS justice, give everyone his due, and observe
honesty and good faith. (Art. 19)
A. PRINCIPLES A right, though by itself legal because recognized

or granted by law as such, may nevertheless
QUASI-DELICT v. TORT become the source of some illegality (Ardiente v.
Definition of Quasi-Delict Sps. Javier, G.R. No. 161921, 2013)
Whoever by act or omission causes damage to
another, there being fault or negligence, is obliged Elements of Abuse of Right (LEG-BAD-PREJ)
to pay for the damage done. Such fault or 8. The existence of a legal right or duty
negligence, if there is no pre-existing contractual 9. Which is exercised in bad faith
relation between the parties, is called a quasi- 10. For the sole intent of prejudicing or injuring
delict and is governed by the provisions of this another
Chapter. (Art. 2176, New Civil Code)
Malice or bad faith is at the core of an abuse of
Definition of Tort right. (Chevron Philippines, Inc. v. Mendoza, G.R.
Acts giving rise to civil liability but are not Nos. 211533 & 212071, 2019).
necessarily the consequences of crimes or
contractual obligations. (Paras, Pre-week Malice or bad faith implies a conscious and
Handbook in Civil Law, p. 588, 2012) intentional design to do a wrongful act for a
dishonest purpose or moral obliquity (California
An unlawful violation of a private right, not created Clothing Inc. v. Quiñones, G.R. No. 175822,
by contract, and which gives rise to an action for 2013).
damages. It is a wrongful act or omission resulting
in breach of a private legal duty, as distinguished II. UNJUST ENRICHMENT
from a mere breach of contractual duty, and
damage from said breach of duty of such a Every person who through an act of performance
character as to afford a right of redress at law in by another, or any other means, acquires or
favor of the injured party against the wrongdoer comes into possession of something at the
(Aquino, Torts and Damages, p.1, 2013) expense of the latter without just or legal ground,
shall return the same to him. (Art. 22)
Elements of Quasi-Delict (DAM-FAU-CON-
NOPRE) Even when an act or event causing damage to
4. Damage suffered by plaintiff another's property was not due to the fault or
5. Fault or Negligence of the defendant, or some negligence of the defendant, the latter shall be
other person for whose acts he must respond liable for indemnity if through the act or event he
6. Connection of cause and effect between the was benefited. (Art. 23)
fault or negligence of the defendant and the
damages incurred by the plaintiff Elements
7. No pre-existing contractual relation between There is unjust enrichment when:
the parties (Andamo v. International Appellate 1. A person is unjustly benefited;
Court G.R. No. 74761, 1990) 2. Such benefit is derived at the expense of or with
damages to another; and
I. ABUSE OF RIGHT; ELEMENTS 3. The aggrieved party has no other action based
on a contract, quasi-contract, crime, quasi-delict,
Definition of Abuse of Right or any other provision of law. (Grandteq Industrial
Every person must, in the exercise of his rights Steel Products, Inc., v. Margallo, G.R. No. 181393,
and in the performance of his duties, act with July 28, 2009)
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III. LIABILITY WITHOUT FAULT The head of the family may recover from the
person who caused the damage. The liability is
There is strict liability if one is made liable solidary. (Art. 2194)
independent of fault, negligence or intent after
establishing certain facts specified by law. Strict 3. Liability of Employers in case of Death or
liability tort can be committed even if reasonable Injuries of Employees (Art. 1711)
care was exercised regardless of the state of mind
of the actor at that time. (AQUINO, Torts and General Rule: Owners of enterprises and other
Damages, supra at 829). employers are liable to pay for the death of injuries
to their employees, even if the cause is purely
Instances of Strict Liability: accidental.
1. Possessors and Users of Animals (Art.
2183) Exception: If the mishap was due to the
employee’s own notorious negligence, or
General Rule: The possessor of an animal or voluntary act or drunkenness.
whoever may make use of the same is responsible
for the damages which it may cause although it Exception to the Exception: When the
may escape or be lost. employee’s lack of due care only contributed to his
death or injury, the employer shall be liable for
Ownership is immaterial. What must be compensation but the same shall be equitably
determined is the possession of the dog that reduced.
admittedly was staying in the house in question,
regardless of the ownership of the dog or of the Where he contributes to the principal occurrence
house. It makes no distinction as to the kind of as one of its determining factors, he cannot
animal. This is applicable whether the animal is recover. Where, in conjunction with the
domestic or wild (Vestil v. IAC, G.R. No. 74431, occurrence, he contributes only to his own injury,
1989). he may recover the amount that the defendant
responsible for the event should pay for such
Exceptions: injury, less a sum deemed suitable equivalent for
a. By force majeure – Possessor or user is still his own imprudence (Rakes v. Atlantic Gulf and
liable even if damage is caused by the Pacific Co., G.R. No. 1719, 1907).
negligence of third person unless equated
with force majeure. Rule on Employer’s Liability for Injuries
b. By the person who suffered the damage caused by co-worker (Art. 1712)
c. Defendant is not the possessor of the a. If the death or injury is due to the negligence
animal of a fellow-workman, the latter and the
employer shall be solidarily liable for
2. Falling Objects (Art. 2193) compensation.
b. If a fellow worker’s intentional or malicious
The head of a family that lives in a building or a act is the only cause of the death or injury,
part thereof, is responsible for damages caused by the employer shall not be answerable
things thrown or falling from the same. unless it should be shown that the latter did
not exercise due diligence in the selection of
Head of the family is not limited to the owner of the supervision of the plaintiff’s fellow-worker.
building. It may include the lessee thereof.
(Dingcong v. Kanaan, G.R. No. L-47033, 1941). 4. Nuisances (Art. 694)
Any act, omission, establishment, business,
condition of property, or anything else which:
(ISAHO)
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a. Injuries or endangers the health or safety of the thing which constitutes the nuisance, without
others; committing a breach of the peace or doing
b. Shocks, defies or disregards decency or unnecessary injury. However, it is indispensable
morality; that the procedure for extrajudicial abatement of a
c. Annoys or offends the senses; public nuisance by a private person be followed.
d. Hinders or impairs the user of property; or
e. Obstructs or interferes with the free 5. Product Liability by Manufacturers (Art.
passage of any public highway or street, or 2187)  
any body of water.
Manufacturers and processors of foodstuffs,
General Rule: Everyone is bound to bear the drinks, toilet articles and similar goods shall be
habitual or customary inconveniences that result liable for death or injuries caused by any noxious
from the proximity of others, and so long as this or harmful substances used, although no
level is not surpassed, he may not complain contractual relation exists.
against them.
Requisites: (MUNIF)
Exception: If the prejudice exceeds the a. The defendant is the Manufacturer or
inconveniences that such proximity habitually processor of foodstuff, drinks, toilet articles
brings, the neighbor who causes such disturbance and similar goods involved;
is held responsible for the resulting damage, being b. Plaintiff Used or consumed such product
guilty of causing nuisance (Velasco v. Manila unaware of the injurious condition of the
Electric Co., G.R. No. L-18390, 1971). product;
c. The defendant used Noxious or harmful
Nuisance is either public or private. A public substances in the manufacturing or
nuisance affects a community or neighborhood or processing of the foodstuff, drink or toilet
any considerable number of persons, although the articles and similar goods;
extent of the annoyance, danger or damage upon d. Plaintiff’s Injury or death was caused by the
individuals may be unequal. A private nuisance is product used or consumed; and
one that is not included in the foregoing definition e. The Forms or kinds of damages suffered
(Art. 695). and the amount thereof.
Nuisance may also be considered nuisance per se
or nuisance per accidens. Product Liability Law
a. Nuisance per se is a nuisance under any This governs the liability of manufacturers and
and all circumstances sellers for damages resulting from defective
b. Nuisance per accidens becomes such products.
under certain conditions and circumstances
(Salao v. Santos, G.R. No. L-45519, 1939). Liability for defective products may be based on
fraud, warranty, negligence, or strict liability
Liability of Successive Owner or Possessor (Aquino, Torts and Damages, supra at 858).
Every successive owner or possessor of property
who fails or refuses to abate a nuisance in that Consumer Act
property started by a former owner or possessor is A law that is meant to protect the consumers by
liable therefore in the same manner as the one providing for certain safeguards when they
who created it. (Art. 696) purchase or use consumer products (Republic Act
No. 7394, Consumer Act).
An action to abate nuisance is imprescriptible.
Alternative Theories or Legal Bases to Justify
Any person injured by a private nuisance may Product Liability
abate it by removing, or if necessary, by destroying 1. Delict
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Basis of Liability: a. Acts or omissions expressly prohibited by
a. Criminal negligence under the Revised Product Liability statutes;
Penal Code; and b. Standards imposed by special laws, rules
b. Violation of any special law, even in the and regulations of proper government
absence of intent (Aquino, Torts and agencies with respect to Product Liability
Damages, supra at 873-74). Law (Aquino, Torts and Damages, supra at
871).
2. Fraud or Misrepresentation
General Rule: Not all expressions of opinion Liability attaches if due care of an ordinarily
or usual exaggerations in trade are actionable prudent man was not exercised in manufacturing,
misrepresentations if they are established to packaging, marketing or distributing of the product.
be inaccurate.
Warranty Under the Consumer Act
Exception: An act or practice shall be In addition to the Civil Code provisions on sale with
deemed deceptive whenever the producer, warranties, the following provisions shall govern
manufacturer, supplier or seller, through the sale of consumer products with warranty.
concealment, false representation or
fraudulent manipulation, induces a consumer Any seller or manufacturer who gives an express
to enter into a sale or lease transaction of any warranty shall:
consumer product or service (R.A. No. 7394, 1. set forth the terms of warranty in clear and
Art. 50). readily understandable language and clearly
identify himself as the warrantor;
3. Warranties 2. identify the party to whom the warranty is
To enforce warranty rights, a claim must be extended;
presented. It is sufficient for the purchaser to 3. state the products or parts covered;
present to the immediate seller either the 4. state what the warrantor will do in the event
warranty card or the official receipt along with of a defect, malfunction of failure to conform
the product to be serviced or returned to the to the written warranty and at whose expense;
immediate seller (R.A. No. 7394, Art. 68). 5. state what the consumer must do to avail of
the rights which accrue to the warranty; and
Subsidiary Liability of Retailer – Retailer is stipulate the period within which, after notice
subsidiarily liable under the warranty in case of defect, malfunction or failure to conform to
of failure of both the manufacturer and the warranty, the warrantor will perform any
distributor to honor the warranty. obligation under the warranty (R.A. No. 7394,
Art. 68).
Privity of contract is not necessary in
successfully pursuing an action for breach of 4. Strict Liability
warranty or in enforcing the same under the It is imposed on manufacturers under the
Consumer Act. Consumer Act and privity of contract is not
required. (Aquino, Torts and Damages, supra
The provisions of the Civil Code on conditions at 881).
and warranties shall govern all contracts of
sale with conditions and warranties (R.A. No. It does not preclude an action based on
7394, Art. 67). negligence (quasi-delict) for the same act of
using noxious or harmful substances (Id. at
Negligence 882).
It is considered negligence per se if there is
violation of:
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Manufacturer includes: To determine what is considered defective, the
a. Any person, who manufactures, Consumer Act adopts the “Consumer Expectation
assembles or process consumer Test.”
products; and
b. Any person who attaches his own brand Under the consumer expectation test, a product
name to the consumer products may be found defective in design, if the plaintiff
manufactures, assembled, or processed demonstrates that the product failed to perform as
for him. safely as an ordinary consumer would expect
when used in an intended or reasonably
Defective Product or Service foreseeable manner (Baker v. Lull Engineering,
The product or service is defective when it does S.F. No. 23519, 1978).
not offer the safety that the consumer may
rightfully expect of it. Defenses
1. Manufacturer, builder, producer, or
Kinds of Defective Products: (MDPA) importer shall not be liable when it
1. Manufacturing defect – resulting from proves the following:
manufacture, assembly and erection; a. That it did not place the product on the
2. Design defect – resulting from design; market;
3. Presentation defect – resulting from handling, b. That although it did place the product on
making up, presentation or packing of the the market, such product has no defect;
products; or and
4. Absence of appropriate warning – resulting c. That the consumer or a third party is
from the insufficient or inadequate solely at fault (R.A. No. 7394, Art. 97).
information on the use and hazards of the
products (Aquino, Torts and Damages, supra 2. Supplier of the services shall not be
at 884). liable when it is proven:
a. That there is no defect in the service
Defect resulting from packaging and presentation rendered; and
of the product can be included under b. That the consumer or a third party is
manufacturing defect or design defect. solely at fault (R.A. No. 7394, Art. 99)
Liability for Defective Product or Service: To enforce liability against the defendant, the
1. Manufacturer – liability shall be imposed plaintiff should allege and prove that:
upon manufacturers independent of fault 1. The product was defective;
(R.A. No. 7394, Art. 97 and 99) 2. The product was manufactured by the
2. Tradesman or Seller – generally, not liable defendant; and
for damages caused by defective products 3. The defective products was the cause in
under the Act. fact of his injury (Aquino, Torts and
Damages, supra at 896).
Exceptions:
a. It is not possible to identify the manufacturer, Business Torts
builder, producer or importer; Kinds:
b. The product is supplied, without clear 1. Non-Possessory Invasion
identification of the manufacturer, producer, Elements:
builder or importer; a. The other has property rights and
c. He does not adequately preserve perishable privileges with respect to the use or
goods (R.A. No. 7394, Art. 98). enjoyment interfered with;
b. There is substantial invasion;
Test under the Consumer Act
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c. The defendant’s conduct is a legal as unfair (Aquino, Torts and Damages,
cause of invasion; and supra at 906).
d. The invasion is either intentional and
unreasonable or unintentional ad Rules on Liability:
actionable under general negligence a. The extent of the liability for the breach
rules. (Aquino, Torts and Damages, of a contract must be determined in the
supra at 899). light of the situation in existence at the
time the contract is made; and the
2. Interference of Contracts damages ordinarily recoverable are in
Any third person who induces another to all events limited to such as might be
violate his contract shall be liable for reasonably foreseen in the light of the
damages to the other contracting party (Art. facts then known to the contracting
1314). parties (Daywalt v. La Corporacion,
G.R. No. L-13505, 1919).
General Rule: Only the parties to a contract b. Defendant cannot be held liable for
are bound by the terms of the contract and more than the amount for which the
only a party can file an action for breach of contracting party was induced to break
contract or for rescission or annulment the contract can be held liable; and
thereof. c. Rules under Article 2201 and 2202 of
the Civil Code applies.
Exceptions:
a. Stipulation in favor of third person; If in good faith: Defendant is liable only
b. Contracts intended to defraud for consequences that can be foreseen.
creditors. Defendant is liable for all natural and
probable consequences of his act or
It is tortuous because it violates the rights omission, whether the same is foreseen
of the contracting parties to fulfill the or unforeseen (Go v. Corderdo, G.R.
contract and to have it fulfilled, to reap the No. 164747, 2010).
profits resulting therefrom, and to compel
the performance by the other party. If in bad faith: Defendant is liable for all
natural and probable consequences of
Elements: his act or omission, whether the same
a. Existence of a valid contract; is foreseen or unforeseen (Go v.
b. Knowledge on the part of the third Corderdo, G.R. No. 164747, 2010).
person of the existence of the contract;
c. Interference of the third person without 3. Interference with Prospective Advantage
legal justification It is a tort committed when there is no
contract yet and the defendant is only being
Note: Malice is not essential. Breach must sued for inducing another not to enter into a
occur because of the alleged act of contract with the plaintiff (Aquino, Torts and
interference (So Ping Bun v. Court of Damages, supra at 922).
Appeals, G.R. No. 120554, 1999).
4. Unfair Competition
Privilege to Interfere Unfair competition in agricultural,
Elements: commercial, or industrial enterprises, or in
a. The defendant’s purpose is a justifiable labor, through the use of force, intimidation,
one; deceit, machination or any unjust or
b. The actors do not employ means of oppressive or highhanded method shall
fraud or deception, which are regarded
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give rise to a right of action by a person who average cost so as to attract customers
thereby suffers damage (Art. 28). to the detriment of competitors
(Republic Act No. 8180, An Act
It is defined as the passing off or attempting Deregulating the Downstream Oil
to pass of upon the public the goods or Industry, and for Other Purposes).
business of one person as the goods or
business of another, with the end goal and d. Passing off and disparagement of
probable effect of deceiving the public. products
What is being sought to be prevented by IV. ACTS CONTRARY TO LAW

Article 28 is not competition per se but the
use of unjust, oppressive or high-handed Definition of Acts Contrary to Law
methods which may deprive others of a fair Every person who, contrary to law, willfully or
chance to engage in business or to earn a negligently causes damage to another, shall
living. Plainly, what the law prohibits is indemnify the latter for the same. (Art. 20)
unfair competition and not competition
where the means used are fair and Article 20 speaks of the general sanction for all
legitimate (Willaware Products v. Jesichris other provisions of law which do not especially
Manufacturing, G.R. No. 195549, 2014). provide for their own sanction. Thus, anyone who,
whether willfully or negligently, in the exercise of
True test: Whether the acts of defendant his legal right or duty, causes damage to another,
are such as are calculated to deceive the shall indemnify his victim for injuries suffered
ordinary buyer making his purchases under thereby. (Albenson Enterprises Corp. v. Court of
the ordinary conditions which prevail in the Appeals, G.R. No. 88694, 1993).
particular trade to which the controversy
relates (Alhambra Cigar v. Mojica, G.R. No. There is a common element under Articles 19 and
L-8937, 1914). 21, and that is, the act must be intentional.
However, Article 20 does not distinguish: the
Cases included: act may be done either "willfully", or "negligently"
a. Interference – Unfair competition (Albenson Enterprises Corp. v. Court of Appeals,
includes involving the tort of supra).
interference with contractual relations
with prospective advantage; Under Article 20, there is no requirement that the
b. Misappropriation – Unfair competition act must be directed at a specific person, but it
is present if the defendant committed suffices that a person suffers damage as a
fraudulent misappropriation against a consequence of a wrongful act of another in order
competition; that indemnity could be demanded from the
c. Monopolies and predatory pricing wrongdoer. (Petrophil Corp. v. Court of Appeals,
G.R. No. 122796, 2001)
Monopoly – any combination the
tendency of which is to prevent V. ACTS CONTRARY TO MORALS
competition in the broad and general
sense, or to control prices to the Any person who willfully causes loss or injury to
detriment of the public (Gokongwei, Jr. another in manner that is contrary to morals, good
v. SEC, G.R. No. L-45911. 1979). customs or public policy shall compensate the
latter for the damage (Art. 21).
Predatory pricing – means selling or This article is designed to fill in the countless gaps
offering to sell any product at a price in the statutes, which leave so many victims of
unreasonably below the industry
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moral wrongs helpless, even though they have person knows or should know, in the
actually suffered material and moral injury. exercise of ordinary care, may reasonably
Damages are recoverable even if no positive law cause loss to another in the normal course
was violated. of events (Aquino, Torts and Damages,
supra at 2).
Elements of Acts Contrary to Morals (LCD)
11. Act which is legal; An example of a strict liability tort is that
12. Act is contrary to morals, good customs, provided in Article 2183 of the Civil Code,
public order or public policy; and which states that “the possessor of an
13. The act is done with intent to injure animal or whoever may make use of the
same is responsible for the damage which it
B. CLASSIFICATION OF TORTS may cause, although it may escape or be
lost. This responsibility shall cease only in
I. ACCORDING TO MANNER OF COMMISSION case the damage should come from force
majeure or from the fault of the person who
a. Negligent torts (Negligence) has suffered damage”.
It involves voluntary acts or omissions which
results in injury to others, without intending The obligation imposed by Article 2183 is
to cause the same. not based on the negligence or on the
presumed lack of vigilance of the possessor
Negligence is defined as the omission of or user of the animal causing the damage. It
that degree of diligence which is required by is based on natural equity and on the
the nature of the obligation and corresponds principle of social interest that he who
to the circumstances of the persons, time possesses animals for his utility, pleasure or
and place (Art. 1173). service must answer for the damage which
such animal may cause (Vestil v.
b. Intentional torts Intermediate Appellate Court, G.R. No.
It is a tort or wrong perpetrated by one who 74431, 1989).
intends to do that which the law has
declared wrong. The actor desires to cause II. ACCORDING TO SCOPE
the consequences of his act or believes the a. General torts – the catch‐all provisions
consequences are substantially certain to on torts provided for in the civil code i.e.
result therefrom. (Safeguard Security Articles 19, 20 and 21.
Agent, Inc. v. Tangco, G.R. No. 165732,
2006). The effect is that “there is a general duty
owed to every person not to cause harm
It includes Articles 32 and 34, and culpa either willfully or negligently. Articles 19,
aquilina under Article 2176 of the Civil 20, and 21 are provisions on human
Code, or those where the injured party is relations that were intended to expand
granted a right to file an action or suit the concept of torts in this jurisdiction by
independent and distinct from the criminal granting adequate legal remedy for the
action under Article 33 of the Civil Code untold number of moral wrongs which is
(Id.). impossible for human foresight to
specifically provide for in the statutes.
c. Strict liability torts (Aquino, 2005, citing PNB v. CA, et al.,
The person is made liable independent of G.R. No. L-27155, 1978).
fault or negligence upon submission of proof
of certain facts. It rests not on negligence b. Specific torts ‐ It includes trespass,
but on intentional doing of that which a assault and battery, negligence,
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products liability, and intentional express direction or authority from the
infliction of emotional distress. It also stockholders or members acting as a body, or,
includes the following: generally, from the directors as the governing
1. Unjust enrichment (arts. 22, 23, body. (Philippine National Bank v. Court of
2142 & 2143) Appeals, G.R. No. L-2715, 1978)
2. Violation of right of privacy and
family relations Doctrine of Corporate Negligence
3. Dereliction of official duty of public The doctrine of corporate negligence is the judicial
officers answer to the problem of allocating hospital’s
4. Unfair competition  liability for the negligent acts of health
5. Malicious prosecution  practitioners, absent facts to support the
6. Violation of rights and liberties of application of respondeat superior or apparent
another person authority.
7. Nuisance
The theory supporting the liability of hospital is
based on the recognition that the hospitals stand
C. THE TORTFEASOR
to benefit from the business of providing services
to patients and should therefore be responsible for
I. DIRECT TORTFEASOR any injury or damage that may result under the
relationship. (PSI v. Agana, G.R. No. 126297,
Tortfeasor 2007)
Whoever by act or omission causes damage to
another, there being fault or negligence, is obliged
II. JOINT TORTFEASORS
to pay for the damage done. (Art. 2176).
Joint tortfeasors are all the persons who
Every person legally responsible is liable for a tort
command, instigate, promote, encourage, advise,
committed by him provided it is the proximate
countenance, cooperate in, aid or abet the
cause of an injury to another (DE LEON, Torts and
commission of a tort, or who approve of it after it is
Damages at 16)
done, if done for their benefit. (Ruks Konsult and
Construction v. Adworld Sign and Advertising
Pursuant to a vicarious liability, a corporation may
Corp., G.R. No. 204886, 2015)
be held directly and primarily liable for tortious acts
of its officers or employees (Philippine National
Solidary Liability of Joint Tortfeasors
Bank v. Court of Appeals, G.R. No. L-2715, 1978).
The responsibility of two or more persons who are
liable for a quasi-delict is solidary (Art. 2194).
Corporate Tortfeasor
A corporation is civilly liable in the same manner
Under Article 2194 of the Civil Code, joint
as natural persons for torts, because "generally
tortfeasors are solidarily liable for the resulting
speaking, the rules governing the liability of a
damage. In other words, joint tortfeasors are each
principal or master for a tort committed by an agent
liable as principals, to the same extend and in the
or servant are the same whether the principal or
same manner as if they had performed the
master be a natural person or a corporation, and
wrongful act themselves.
whether the servant or agent be a natural or
artificial person. All of the authorities agree that a
There is no contribution between joint tortfeasors
principal or master is liable for every tort which he
whose liability is solidary since both of them are
expressly directs or authorizes, and this is just as
liable for the total damage. Where the concurrent
true of a corporation as of a natural person. A
or successive negligent acts or omissions of two
corporation is liable, therefore, whenever a tortious
or more persons, although acting independently,
act is committed by an officer or agent under
are in combination the direct and proximate cause
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of a single injury to a third person, it is impossible III. PERSONS MADE RESPONSIBLE FOR
to determine in what proportion each contributed OTHERS
to the injury and either of them is responsible for
the whole injury. (People v. Velasco, G.R. No. Vicarious Liability
195668, 2014). The obligation imposed by Article 2176 of the Civil
Code on quasi-delicts is demandable not only for
In PNCC v. Court of Appeals, the Court ruled that one’s own acts or omissions, but also for those of
the failure of PNCC, in charge of the maintenance persons for whom one is responsible (Art. 2180).
of the expressway, to maintain the NLEX safe for
motorists constitutes negligence. There should A person is liable not only for his own torts, but also
have been sufficient warning devices considering for those committed by others with whom he has a
that there were scattered sugarcane stalks still left certain relationship, or for whom he is responsible.
along the toll way. PASUDECO’s negligence in
transporting sugarcanes without proper straps and The basis of liability is pater familias or the failure
that of PNCC in removing the emergency warning of the persons mentioned therein to exercise due
devices were two successive negligent acts which care and vigilance over the acts of subordinates to
were the direct and proximate cause of the victim’s prevent the damage (Filcar Transport Services v.
injuries. As such, PASUDECO and PNCC are Espinas, G.R. No. 174156, 2012).
jointly and severally liable.
NOTE: Vicarious liability is not governed by the
Where several causes combine to produce doctrine of respondeat superior. Under the
injuries, a person is not relieved from liability doctrine of respondeat superior, the master is
because he is responsible for only one of them, it liable in every case and unconditionally; the
being sufficient that the negligence of the person negligence of the servant is conclusively
charged with injury is an efficient cause without presumed to be the negligence of the master.
which the injury would not have resulted to as
great an extent, and that such cause is not However, in vicarious liability, persons are made
attributable to the person injured. It is no defense vicariously liable not because of the negligent or
to one of the concurrent tortfeasors that the injury wrongful act of the person for whom they are
would not have resulted from his negligence alone, responsible, but because of their own negligence
without the negligence or wrongful acts of the (i.e. liability is imposed on the employer because
other concurrent tortfeasors. Where several he failed to exercise due diligence in the selection
causes producing an injury are concurrent and and supervision of his employees).
each is an efficient cause without which the injury
would not have happened, the injury may be Whenever an employee’s negligence causes
attributed to all or any of the causes and recovery damage or injury to another, there instantly arises
may be had against any or all of the responsible a presumption juristantum that the employer failed
persons although under the circumstances of the to exercise diligentissimi patris families in the
case, it may appear that one of them was more selection (culpa in eligiendo) or supervision (culpa
culpable, and that the duty owed by them to the in vigilando) of its employees. To avoid liability for
injured person was not the same. No actor's a quasi-delict committed by its employee, an
negligence ceases to be a proximate cause merely employer must overcome the presumption by
because it does not exceed the negligence of presenting convincing proof that he exercised the
other actors. Each wrongdoer is responsible for care and diligence of a good father of a family in
the entire result and is liable as though his acts the selection and supervision of his employee.
were the sole cause of the injury (Philippine (Delsan Transport v. C&A Construction, G.R. No.
National Construction Corporation v. Court of 156034, 2003; Light Rail Transit Association v.
Appeals, G.R. No. 159270, 2005) Navidad, G.R. No. 145804, 2003)
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Exception: The doctrine of respondeat superior is Incompetent includes persons suffering the
applicable in: penalty of civil interdiction or who are
1. Liability of employers under Art. 103 of the hospitalized lepers, prodigals, deaf and dumb
Revised Penal Code who are unable to read and write, those who
2. Liability of a partnership for the tort committed are of unsound mind, even though they have
by a partner. lucid intervals, and person’s not being of
unsound mind by reason of age, disease,
Jurisdiction over the person weak mind and other similar causes, cannot,
The Supreme Court held that an employee-driver without outside aid, take care of themselves
was neither an indispensable nor a necessary and manage their property, becoming thereby
party in an action for damages filed against the an easy prey for deceit and exploitation
employers. Thus, it was not necessary for the (RULES OF COURT, Rule 92, Sec. 2).
court to acquire jurisdiction over the employee-
driver to hold the employers liable for damages. 3. Schools, administrators and teachers, and
(Cerezo v. Tuazon, G.R. No. 141538, 2004) individuals, entities or institutions
engaged in child care having special
Doctrine of Agency by Estoppel in the parental authority over children
Negligent Acts of Physicians of Hospitals
The court has applied the doctrine of agency by Extent of Special Parental Authority
estoppel to hold hospitals liable for the negligent It can be exercised only over minors while
acts of physicians based on: under their supervision, instruction or
1. The patient accepts the services of the custody, including while in authorized
physician activities, whether inside or outside the
2. The patient believes that the physicians are school, entity or institution (AQUINO, Torts
agents of the hospital. (PSI v. Agana, G.R. and Damages, 665).
No. 126297, 2007)
Custody
Persons Vicariously Liable The protective and supervisory custody that
1. Father/ mother for their minor children.   the school and its heads and teachers
exercise over the pupils and students for as
Reason: The liability is a necessary long as they are in attendance in school,
consequence of the parental authority they including recess time (Palisoc v. Brillantes,
exercise over them. The liability under Article G.R. No. L-29025, 1971).
2180 also extends to other persons
exercising parental authority like judicially As long as it can be shown that the student is
appointed guardians and adopters (AQUINO, in the school premises in pursuance of a
Torts and Damages, 730-31). legitimate student objective, in the exercise of
a legitimate right, and even in the enjoyment
Adopters of a legitimate student privilege, the
The Court does not consider that retroactive responsibility of the school authorities over
effect may be given to the decree of adoption the student continues (Amadora v. Court of
so as to impose a liability under the adopting Appeals, G.R. No. L-47745, 1988).
parents (Tamago v. Court of Appeals, G.R.
No. 85044, 1992). 4. Owners/managers of establishment or
enterprise for their employees  
2. Guardians are liable for the minors and They are liable for damages caused by their
incapacitated persons under their   employees in the service of the branches in
authority. which they are employed, or on the occasion
of their functions. It does not extend to acts of
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strangers who committed unauthorized acts The solidary debtor If the person
and in doing so, caused damage to others who pays the injured vicariously liable pays
(Art. 2180, par. 4). party may recover the injured party, he
from the other debtor may recover the
Managers his corresponding entire amount he
In Article 2180, “managers” is used in the share in the amount paid from the actual
sense of an employer. A managerial paid. (Art.1217) tortfeasor (Art.2182)
employee within the contemplation of the
Labor Code is not a manager under Article
2180 because he himself may be regarded as
an employee or dependiente of the employer
(Philippine Rabbit Bus Lines, Inc. v. Phil.
American Forwarders, Inc., G.R. No. L-
25142, 1975).
Co-employees are not liabile even if they

supervise the employee.
5. Employers for their employees and

household helpers.  
Although the employer is not the actual
tortfeasor, the law makes him vicariously
liable on the basis of the civil law principle of
pater familias for failure to exercise due care
and vigilance over the acts of one’s
subordinates to prevent damage to another
(Filcar Transport Service v. Espinas, supra).
6. State for their special agents  

It is a basic constitutional rule that the State
cannot be sued without its consent. Consent
of the State to be sued can be manifested
through a special law or general law allowing
the State to be sued (AQUINO, Torts and
Damages, 718).
7. Teachers/Heads of establishment of arts

and trades for their pupils/
students/apprentices (Art. 2180, NCC).
Persons Vicariously
Joint Tortfeasors
Liable
Tortfeasor (under Art.
2176) and the person
Solidarily liable
vicariously liable
(Art. 2194)
(under Art. 2180) are
solidarily liable.
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PERSON FOR REQUIREMENTS
PERSON
WHOM FOR VICARIOUS NATURE OF
VICARIOUSLY DEFENSES
VICARIOUSLY LIABILITY TO LIABILITY
LIABLE
LIABLE ATTACH
Father and mother
Child lives in their exercise joint
company; AND is parental authority
Parent/s (joint
under their over their minor
parental
Children below 18 parental authority Diligence of a children. Their
authority based
(Art. 221, Family (Art.2180) good father of a liability is direct
on Art. 221,
Code) (Art.221, Family family to prevent and primary, not
Family Code)
Code); Tamargo v. damage subsidiary. (Art.
Father, in case of
CA, G.R. No. (Art. 2180; 211, Family Code;
death or
85044, 1992) Exconde v. Libi v. IAC, G.R.
incapacity, the
Capuno, G.R. No. No. 70890, 1992)
mother (Art.
“Child” lives in L-10134, 1957)
2180) Children 18 to 21 Direct and primary
their company
(Art. 2180, in (Art. 2180 in
(Art.2180, in
relation to Art. 236 relation to Art. 236,
relation to Art. 236,
¶ 3, Family Code) ¶ 3, Family Code)
¶ 3, Family Code)
Principal and
solidary (Art. 219,
Family Code)
GR: Parents are
Schools,
not liable; child
administrators
Child is under their was in school; not
and teachers, Exercised the
supervision, in their custody
and individuals, proper diligence
instruction or (Cuadra vs.
entities or Children below 18 required under the
custody at the time Monfort, G.R. No.
institutions (Arts. 218- 219, particular
the tort is L-24101, 1970)
engaged in child Family Code) circumstances
committed EXC: Parents,
care having (Art. 219, Family
(Art. 218, Family judicial guardians
special parental Code)
Code) or persons
authority over
exercising
children
substitute parental
authority shall be
subsidiarily liable
(Art. 219, Family
Code)
Diligence of a
Minors or Under their
good father of a
incapacitated authority and live Direct and primary
Guardians family to prevent
persons (Art. in their company (Art. 2180)
damage (Art.
2180) (Art. 2180)
2180)
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That the employee
is liable for a
QD;
EER exists;
Employee was
acting within No EER (Jayme v
the scope of his Apostol, G.R.
assigned tasks No. 136609,
Employees in the
when the tort 2008) –
service of the
was committed, municipality, not
branches in which
or that the the mayor is the
they are employed
injurious act employer of the
or on the occasion
was committed driver)
of their functions
at a time the
(Art. 2180(4))
employee was EE acted beyond
performing his the scope of
functions. authority (i.e. Direct and primary
(Dela Llana v. when the EEs (Art. 2180)
Biong, G.R. No. are on strike)
182356, 2013; (Universal NOTE: “Manager”
Castilex Industrial Aquarius v. QC means employer
Employers,
Corp. vs. Human (Philippine Rabbit
owners and
Vasquez, G.R. No. Resources Bus Lines, Inc. v.
managers
132266, 1999; Management Philippine
Martin v. CA, G.R. Corporation, American
No. 82248, 1992; G.R. No. Forwarders, Inc.,
Jayme v. Apostol, 155990, 2007) G.R. No. L-25142,
G.R. No. 136609, 1975)
Employees and
2008) Diligence of a good
household helpers
NOTE: “Acting father of a family
acting within the
within the scope of in the selection
scope of their
assigned tasks” – and supervision
assigned tasks
includes any act of employees
even though the
done in the (Mercury Drug v.
employer is not
furtherance of the Huang, G.R. No.
engaged in any
employer’s 172122, 2007;
business or
business Sanitary Steam vs.
industry
(Filamer Christian CA, G.R. No.
(Art. 2180(5))
Institute v. IAC, 119092, 1998)
G.R. No.75112
1990) (e.g., janitor
who drove vehicle
for the benefit of
the employer)
Doctors and [3 theories] Direct and primary
hospital 1. EER (Art.2180) Elements of the 3 (Casumpang v.
Hospitals employees 2. Doctrine of theories are not Cortejo, G.R. No.
(Ramos v. CA Apparent present. 171127, 171217,
G.R. No. 124354, Authority or & 17122, 2015)
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1999 and 2002; Ostensible Due diligence in
Nogales v. Capitol Agency or the selection
Medical Center “Holding out” and supervision
G.R. No. 142625, Reliance (if EER)
2006; Casumpang (Nogales vs. (Art. 2180(5);
v. Cortejo, G.R. Capitol Medical Nogales vs.
No. 171127, Center, G.R. No. Capitol Medical
171217, & 17122, 142625, 2006; Center, G.R. No.
2015) Professional 142625, 2006;
Services Inc.v. Professional
Agana G.R. No. Services Inc.v.
126297, 2007; Agana G.R. No.
G.R. No. 126467, 126297, 2007;
2008; G.R. No. G.R. No.
127590, 2010) 126467, 2008;
3. Doctrine of G.R. No.
Corporate 127590, 2010)
Negligence
(hospital is
liable for its own
negligence; not
vicariously for
the doctor’s or
medical
personnel’s
negligence)
(Professional
Services Inc.v.
Agana, supra)
Rules:
Special agent – Public official (PO)
i.e., one who performing Observed
receives a definite functions of his diligence of a good
and fixed order or office – State is father of a family to
commission, immune from prevent damage
foreign to the suit. Public (Art.2180)
exercise of the official liable Direct and primary
duties of his office under Art.2176. Observed (Art. 2180;
if he is a special PO specially diligence of a good Fontanilla v.
State
official (Art.2180; commissioned to father of a family in Maliaman, G.R.
Merritt v. GPI, perform a task the selection and Nos. 55963 &
G.R. No. L-11154, foreign to his supervision of 61045, 1991)
1916) office – State employees
liable; PO is a (Fontanilla v.
Government special agent. Maliaman, G.R.
Owned and No. L-55963,
Controlled Private individual 1989)
Corporations (PI)
(GOCCs) – When commissioned
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the government by the State to
enters into a perform non-
commercial governmental
business, it functions - State
abandons its is liable as an
sovereign capacity employer.
and is to be PI commissioned
treated like any to perform a
other private special
corporation governmental
(Manila Hotel task (special
Employees agent) – State
Association v. liable
Manila Hotel
Company, G.R. L- Employees of
48524, 1941). government
offices performing
proprietary
functions – State
liable as an
employer.
(Fontanilla v.
Maliaman, G.R.
No. L-55963,
1989)
Direct and primary

Adult pupils and Student is in the
students (for school premises in
NOTE: Applies
teachers) pursuance of a
whether the
legitimate student
institution is
Adult apprentices objective, in the
academic or not
(for heads of exercise of a
Teacher was not (Amadora v. CA,
establishments of legitimate student
negligent. supra)
arts and trades) right, and even in
(Art.2180; the enjoyment of a
NOTE: Art.2180 Basis of liability of
Teachers/Heads Amadora v. CA, legitimate student
does not apply teacher and head
of G.R. No. L-47745, privilege, the
when the tort was = close
establishments 1988) responsibility of
not committed by a supervisory
of arts and trades the school
student (Aquinas relationship; ability
If pupil, student or authorities over
School vs. Sps. to instill discipline
apprentice is a the student
Inton, G.R. No.
minor, apply Art. continues. Indeed,
184202, 2011) GR: School is not
218, Family Code even if the student
liable
should be doing
EXC: When it is
NOTE: Pupil need nothing more than
being held liable
not live or board relaxing in the
as an employer.
with the teacher campus in the
(Amadora v. CA,
(Palisoc company of his
supra)
v.Brillates, G.R. classmates and
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No. L-29025, friends and School has an
1971) enjoying the implied contractual
ambience and duty to maintain a
atmosphere of the safe environment
school, he is still conducive for
within the custody learning. If it
and subject to the breaches that duty
discipline of the through
school authorities negligence, it may
under the be held liable
provisions of Art. under Art. 2176
2180 (Amadora v. (PSBA v. CA, G.R.
CA, G.R. No. L- No. 84698, 1992,
47745, 1988) in relation to Air
France vs.
Carrascoso, G.R.
No. L-21438,
1966).
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D. PROXIMATE CAUSE rescuers had to carry a torch with them; and what
was more natural than that said rescuers should
innocently approach the overturned vehicle to
I. CONCEPT
extend the aid and effect the rescue requested
from them. (Vda. de Bataclan v. Medina, G.R. No.
Proximate Cause, Definition
L-10126, 1957).
That cause which, in natural and continuous
sequence, unbroken by any efficient intervening
In Dela Llana v. Biong, the Court ruled that the
cause, produces the injury, and without which the
petitioner did not present any testimonial or
result would not have occurred. (Vda. de
documentary evidence that directly shows the
Bataclan v. Medina, G.R. No. L-10126, 1957).
causal relation between the vehicular accident
and petitioner’s whiplash injury. Hence, the
The proximate cause of the injury is not
petitioner failed to overcome the burden of proof
necessarily the immediate cause of, or the cause
required to establish that the negligent act of the
nearest in time to, the injury. It is only when the
driver is the proximate cause of her whiplash
causes are independent of each other that the
injury. (Dela Llana vs. Biong, G.R. No. 182356,
nearest is to be charged with the disaster. So long
2013)
as there is a natural, direct and continuous
sequence between the negligent act and the
NOTE: If plaintiff's negligence is only
injury that it can reasonably be said that but for
contributory, he is considered partly responsible
the act the injury could not have occurred, such
only. Plaintiff may still recover from defendant but
negligent act is the proximate cause of the injury,
the award may be reduced by the courts in
and whoever is responsible therefore is liable for
proportion to his own negligence. (Bank of
damages resulting therefrom. (Brinas v. People of
America NT & SA vs. Philippine Racing Club,
the Philippines, G.R. L-30309, 1983).
G.R. No. 150228, 2009)
Proximate Cause Inapplicable in Breach of
Contract II. EFFICIENT INTERVENING CAUSE
Such doctrine only applies in actions for quasi-
delicts, not in breach of contract. It is a device for Immediate Cause – The cause nearest in time to
imputing liability to a person where there is no the injury.
relation between him and another party. (Sps.
Guanio v. Makati Shangri-La Hotel, G.R. No. Intervening Cause – If the intervening cause is
190601, 2011) But note that in the case of one which in ordinary human experience is
Bataclan v. Medina (G.R. No. L-10126, 1957), the reasonably to be anticipated or one which the
court used the doctrine of proximate cause in the defendant has reason to anticipate under the
case breach of contract of carriage but only to particular circumstances, the defendant may be
determine the extent of liability. negligent among other reasons, because of
failure to guard against it; or the defendant may
Necessary Link be negligent only for that reason.
In Vda. De Bataclan v. Medina, the Court held
that the proximate cause of the death of Bataclan One who sets a fire may be required to foresee
was the overturning of the bus, and not the fire that an ordinary, usual and customary wind
brought about by the torch of the rescuers. This arising later will spread it beyond the defendant's
is for the reason that when the vehicle turned own property, and therefore to take precautions
completely on its back, the leaking of the gasoline to prevent that event. The person who leaves the
from the tank was not unnatural or unexpected; combustible or explosive material exposed in a
because it was very dark in the rural area where public place may foresee the risk of fire from
lanterns and flashlights are not available, the some independent source. In all of these cases
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there is an intervening cause combining with the Adworld Sign and Advertising Corp., G.R. No.
defendant's conduct to produce the result and in 204886, 2015)
each case the defendant's negligence consists in
failure to protect the plaintiff against that very risk Efficient Intervening Cause
(Phoenix Construction v. IAC, G.R. No. L-65295, An independent intervening cause as one which
1987). is so distinct as to sever the connection of cause
and effect between the negligent act and the
A prior and remote cause cannot be made the injury. (Bartels v. City of Williston, 629 F.2d 509,
basis of an action if such remote cause did 1980)
nothing more than furnish the condition or give
rise to the occasion by which the injury was made An intervening cause, to be considered efficient,
possible, if there intervened between such prior must be one not produced by a wrongful act or
or remote cause and the injury a distinct, omission, but independent of it, and adequate to
successive, unrelated, and efficient cause of the bring the injurious results.
injury, even though such injury would not have
happened but for such condition or occasion. If no Any cause intervening between the first wrongful
danger existed in the condition except because of cause and the final injury which might reasonably
the independent cause, such condition was not have been foreseen or anticipated by the original
the proximate cause. And if an independent wrongdoer is not such an efficient intervening
negligent act or defective condition sets into cause as will relieve the original wrong of its
operation the instances, which result in injury character as the proximate cause of the final
because of the prior defective condition, such injury. (Abrogar v. Cosmos Bottling Co., G.R. No.
subsequent act or condition is the proximate 164749, March 15, 2017)
cause (Manila Electric Co. v. Remoquillo, G.R.
No. L-8328, 1956). If an independent cause intervenes, which is of
itself sufficient to produce the result, it is regarded
Remote Cause as proximate cause, and the originator of the first
That cause which some independent force cause is relieved from liability. (Michael v. U.S.,
merely took advantage of to accomplish 338 F.2d 219, 1964)
something not the natural effect thereof. It cannot
be considered the legal cause of the damage. III. CAUSE IN FACT
(Aquino, Torts and Damages, p. 318, 2013)
Cause in Fact
Concurrent Cause ‘BUT FOR’ TEST
Where several causes producing an injury are The (but for) test requires a plaintiff to establish
concurrent and each is an efficient cause without that the act complained of probably caused the
which the injury would not have happened, the subsequent disability. (Nelson V. Fibreboard
injury may be attributed to all or any of the causes Corporation, [912 F.2d 469])
and recovery may be had against any or all of the
responsible persons although under the The test applied to determine whether negligent
circumstances of the case, it may appear that one conduct was the efficient, or proximate cause of
of them was more culpable, and that the duty the injury or loss suffered by the claimant is
owed by them to the injured person was not the whether such conduct is a cause without which
same. No actor's negligence ceases to be a the injury would not have taken place (which test
proximate cause merely because it does not is frequently referred to as the "sine qua non
exceed the negligence of other actors. Each rule"), or is the efficient cause which set in motion
wrongdoer is responsible for the entire result and the chain of circumstances leading to the injury.
is liable as though his acts were the sole cause of
the injury. (Ruks Konsult and Construction v.
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(Sangco, Philippine Law on Torts and Damages, to follow than fail to follow its supposed cause but
1994) it need not be one which necessarily follows such
cause. (Sangco, Philippine Law on Torts and
Substantial Factor Damages, 1994)
It is the rule under the substantial factor test that
if the actor's conduct is a substantial factor in HINDSIGHT TEST
bringing about harm to another, the fact that the A party guilty of negligence or omission is
actor neither foresaw nor should have foreseen responsible for all the consequences which a
the extent of the harm or the manner in which it prudent and experienced party, fully acquainted
occurred does not prevent him from being liable. with all the circumstances which in fact exist,
(Philippine Rabbit Bus Lines v. IAC, G.R. 66102, whether they could have been ascertained by
1990) reasonable diligence, or not, would have thought
at the time of the negligent act as reasonably
Concurrent Causes possible to follow, if they had been suggested to
If one suffers damage as the proximate result of his mind. (Sangco, Philippine Law on Torts and
the negligence of two others, and the damage Damages, Volume 1, p. 113, 1993)
would not have occurred but for the negligence of
each of such parties, both are liable to the person ORBIT TEST
so injured. (Menne v. Celotex Corporation, 861 If the foreseeable risk to plaintiff created a duty
F.2d 1453, 1988) which the defendant breached, liability is imposed
for any resulting injury within the orbit or scope of
Legal Cause such injury, it is not the unusual nature of the act
Test of Foreseeability resulting in injury that is the test of foreseeability,
Where the particular harm was reasonably but whether the result of the act is within the ambit
foreseeable at the time of the defendant’s of the hazards covered by the duty imposed upon
misconduct, his act or omission is the legal cause defendant. (Sangco, Philippine Law on Torts and
thereof. Foreseeability is the fundamental test of Damages, Volume 1, p. 113, 1993)
the law of negligence. To be negligent, the
defendant must have acted or failed to act in such IV. CAUSE AS DISTINGUISHED FROM
a way that an ordinary reasonable man would CONDITION
have realized that certain interests of certain
persons were unreasonably subjected to a Cause/Condition
general but definite class of risk which made the Distinction between Cause and Condition
actor’s conduct negligent, it is obviously the The distinction between cause and condition has
consequence for the actor must be held legally now been entirely discredited. In Phoenix
responsible. Otherwise, the legal duty is entirely Construction v. IAC, the Court ruled: Many courts
defeated. Accordingly, the generalization may be have sought to distinguish between the active
formulated that all particular consequences, that "cause" of the harm and the existing "conditions"
is, consequences which occur in a manner which upon which that cause operated. If the defendant
was reasonably foreseeable by the defendant at has created only a passive static condition, which
the time of his misconduct are legally caused by made the damage possible, the defendant is said
his breach of duty. (Achevara v. Ramos, G.R. No. not to be liable. But so far as the fact of causation
175172, 2009) is concerned, in the sense of necessary
antecedents which have played an important part
Test of Natural and Probable Causes in producing the result it is quite impossible to
distinguish between active forces and passive
A natural consequence of an act is the situations, particularly since, as is invariably the
consequence which ordinarily follows it. A case, the latter are the result of other active forces
probable consequence is one that is more likely
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which have gone before. The defendant who 4. Accident occurred as proximate cause of
spills gasoline about the premises creates a such failure
"condition," but the act may be culpable because
of the danger of fire. When a spark ignites the Who may invoke – Plaintiff
gasoline, the condition has done quite as much to When the doctrine is not applicable
bring about the fire as the spark; and since that is (a) Joint tortfeasors
the very risk, which the defendant has created, (b) Defendants concurrently negligent
the defendant will not escape responsibility. Even (c) As against 3rd persons
the lapse of a considerable time during which the
"condition" remains static will not necessarily E. LEGAL INJURY
affect liability; one who digs a trench in the
highway may still be liable to another who fans Concept of Legal Injury
into it a month afterward. It is the legal invasion of a legal right.
"Cause" and "condition" still find occasional Elements of right

mention in the decisions; but the distinction is now The elements of a cause of action are:
almost entirely discredited. So far as it has any 1. a right in favor of the plaintiff by whatever
validity at all, it must refer to the type of case means and under whatever law it arises or is
where the forces set in operation by the created;
defendant have come to rest in a position of 2. an obligation on the part of the named
apparent safety, and some new force intervenes. defendant to respect or not to violate such
But even in such cases, it is not the distinction right; and
between "cause" and "condition" which is 3. an act or omission on the part of such
important but the nature of the risk and the defendant in violation of the right of the
character of the intervening cause. (Phoenix plaintiff or constituting a breach of the
Construction v. IAC, G.R. L-65295, 1987). obligation of the defendant to the plaintiff for
which the latter may maintain an action for
V. LAST CLEAR CHANCE recovery of damages. (Samson v. Sps
Gabor, G.R. No. 182970, 2014).
Last Clear Chance
Also known as the “Doctrine of Discovered Peril” Violation of right or legal injury
The mere fact that the plaintiff suffered losses
Even though a person’s own acts may have does not give rise to a right to recover damages.
placed him in a position of peril and an injury To warrant the recovery of damages, there must
results, the injured is entitled to recover if the be both a right of action for a legal wrong inflicted
defendant thru the exercise of reasonable care by the defendant, and damage resulting to the
and prudence might have avoided injurious plaintiff therefrom. Wrong without damage, or
consequences to the plaintiff. damage without wrong, does not constitute a
cause of action, since damages are merely part
Requisites: of the remedy allowed for the injury caused by a
1. Plaintiff was in a position of danger by his breach or wrong. (Custodio v. CA G.R. No.
own negligence 116100, 1996)
2. Defendant knew of such position of the
plaintiff There can be damage without injury in those
3. Defendant had the last clear chance to avoid instances in which the loss or harm was not the
the accident by exercise of ordinary care but result of a violation of a legal duty.
failed to exercise such last clear chance and
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In order that a plaintiff may maintain an action for F. INTENTIONAL TORTS

the injuries of which he complains, he must
establish that such injuries resulted from a breach I. GENERAL
of duty which the defendant owed to the plaintiff
a concurrence of injury to the plaintiff and legal Any person who wilfully causes loss or injury to
responsibility by the person causing it.10 The another in manner that is contrary to morals, good
underlying basis for the award of tort damages is customs or public policy shall compensate the
the premise that an individual was injured in latter for the damage (Art. 21).
contemplation of law. Thus, there must first be the Every person criminally liable for a felony is also
breach of some duty and the imposition of liability civilly liable (Revised Penal Code, Art. 100)
for that breach before damages may be awarded;
it is not sufficient to state that there should be tort However, not all crimes give rise to civil liability
liability merely because the plaintiff suffered (e.g. begging in contravention of ordinances,
some pain and suffering. (Id.) violation of game laws, infractions of traffic rules
where no one is injured) (Barredo v. Garcia, G.R.
Many accidents occur and many injuries are No. L-48006, 1942).
inflicted by acts or omissions which cause
damage or loss to another but which violate no NOTE: Quasi-delict includes acts done through
legal duty to such other person, and consequently fault.
create no cause of action in his favor. In such
cases, the consequences must be borne by the II. INTERFERENCE WITH RIGHTS TO
injured person alone. The law affords no remedy PERSONS AND PROPERTY
for damages resulting from an act which does not
amount to a legal injury or wrong. Breach of a promise to marry
General rule: Breach of a promise to marry by
In other words, in order that the law will give itself is not actionable.
redress for an act causing damage, that act must
be not only hurtful, but wrongful. There must Exception: In cases where there is another act
be damnum et injuria. If, as may happen in many independent of the breach of a promise to marry
cases, a person sustains actual damage, that is, which gives rise to liability
harm or loss to his person or property, without (a) Cases where there was financial damage
sustaining any legal injury, that is, an act or (b) Social humiliation caused to one of the
omission which the law does not deem an injury, parties
the damage is regarded as damnum absque (c) Where there was moral seduction
injuria. (Id.) (d) If the breach was done in a manner that is
clearly contrary to good morals.
Classes of Injury
INJURY DAMAGE DAMAGES Moral seduction connotes the idea of deceit,
The enticement, superior power or abuse of
Legal Loss, hurt or
recompense or confidence on the part of the seducer to which the
invasion of harm which
compensation woman has yielded for which the seducer can be
a legal right results from
awarded for the held liable for damages. (Gashem Shookat Baksh
the injury
damage v. Court of Appeals, G.R. No. 97336, 1993)
(Lagon v.
suffered
CA G.R. (Custodio v.
No. CA, G.R. Sexual intercourse is not by itself a basis for
(Custodio v. CA recovery but damages could be awarded if the
119107, No. 116100,
G.R. No. sexual intercourse is not a product of
2005) 1996)
116100, 1996)
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voluntariness or mutual desire. (Constantino v. Code to attach. (Aquino, Torts and Damages,
Mendez, G.R. No. 57227, 1992) supra at 425).
Seduction without breach of promise to marry 2. Trespass to and/or Deprivation of private

Seduction by itself, is also an act contrary to property
morals, good customs and public policy. In tort, trespass extends to all cases where a
person is deprived of his personal property even
The defendant is liable if he employed deceit, in the absence of criminal liability.
enticement, superior power or abuse of Examples: theft, robbery
confidence in successfully having sexual
intercourse with another even if he satisfied his It may cover cases where the defendant was
lust without promising to marry the offended deprived of personal property for the purpose of
party. It may not even matter that the plaintiff and obtaining possession of real property. The
the defendant are of the same gender. defendant who was landlord, was held liable
because he deprived the plaintiffs, his tenants of
Sexual Assault water in order to force them to vacate the lot they
Defendant is liable for all forms of sexual assault. were cultivating. (Magbanua v. IAC, G.R. Nos. L-
He is liable even if he satisfied his lust without 66870-72, 1985)
promising to marry the offended party
The right to disconnect and deprive the customer,
Desertion by a Spouse who unreasonably fails to pay his bills of
A spouse has the legal obligation to live with electricity should be exercised in accordance with
his/her spouse. If a spouse does not perform the law and rules. If a company disconnects the
his/her duty to the other, he may be liable for electricity service without prior notice as required
damages for such omission because the same is by the rules, the company commits a tort under
contrary to law, morals, good customs and public Art. 21. (Manila Electric Co. v. CA, G.R. No.
policy. 132539, 2001)
Trespass and Deprivation of Property Art. 1664 states that "[t]he lessor is not obliged to
answer for a mere act of trespass which a third
Two Kinds: person may cause on the use of the thing leased;
1. Trespass to and/or Deprivation of real but the lessee shall have a direct action against
property the intruder." Here, BSP (lessor) is not liable for
(a) Liability for damages under the Revised breach of contract because it was not remiss in
Penal Code and Art. 451 of the Civil Code its obligation to provide the Spouses M a suitable
requires intent or bad faith parking space for their jeepneys as it even hired
(b) A builder in good faith who acted negligently security guards to secure the premises; hence, it
may be held liable under Art. 2176 of the Civil should not be held liable for the loss suffered by
Code. the Spouses M. BSP cannot be held liable for
(c) Art. 448 of the Civil Code in relation to Art. breach because no negligence can be imputed to
456 does not permit action for damages it. Neither can BSP be held vicariously liable for
where the builder, planter or sower acted in the negligence of the two guards because BSP is
good faith. The landowner is limited to the not their employer. (Spouses Mamaril v. Boy
options given to him under Art. 448. Scouts of the Philippines, G.R. No. 179382,
(d) This is committed when a personal unlawfully 2013)
invades the real property of another. Intent or
bad faith is required for liability for damages Example: In the case of Magbanua v. IAC (G.R.
under the Revised Penal Code and Civil No. L-66870-72, 1985), the defendant, who was
the landlord, was held liable because he deprived
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his tenants of water in order to force them to Statutory Bases

vacate the lot they were cultivating. Arts. 19-21, 2, 32, 33, 35, 2217, 2219(8)
Abortion and Wrongful death Elements:

Liability for damages 1. The fact of the prosecution and the further
Damages may be recovered by both spouses if: fact that the defendant was himself the
(a) The abortion was cause through the prosecutor; and that the action was finally
physician’s negligence or terminated with an acquittal.
(b) Done intentionally without their consent 2. That in bringing the action, the prosecutor
acted without probable cause.
NOTE: A doctor who performs an illegal abortion 3. The prosecutor was actuated or impelled by
is criminally liable under Art. 259 of the Revised legal malice, which is a sinister design to vex
Penal Code. or humiliate
The husband of a woman who voluntarily NOTE: Presence of probable cause signifies
procured her abortion may recover damages from absence of malice. Absence of malice signifies
the physician who cause the same on account of good faith on the part of the defendant. Good faith
distress and mental anguish attendant to the loss may even be based on mistake of law. Acquittal
of the unborn child and the disappointment of his presupposes that criminal information is filed in
parental expectation. (Geluz v. CA, G.R. No. L- court and final judgment rendering dismissing the
16439, 1961) case. Nevertheless, prior acquittal may include
dismissal by the prosecutor after preliminary
Illegal Dismissal investigation. (Globe Mackay and Radio Corp v.
The right of the employer to dismiss an employee CA, G.R. No. 81262, 1989)
should not be confused with the manner in which
the right is exercised and its effects. There is malicious prosecution when a person
directly insinuates or imputes to an innocent
If the dismissal was done anti-socially and person the commission of a crime and the
oppressively, the employer should be deemed to accused is compelled to defend himself in court.
have violated Art. 1701 of the Civil Code (which While generally associated with unfounded
prohibits acts of oppression by either capital or criminal actions, the term has been expanded to
labor against the other) and Art. 21. include unfounded civil suits instituted just to vex
and humiliate the defendant despite the absence
An employer may be held liable for damages if of a cause of action or probable cause (Martires
the manner of dismissing is contrary to morals, v. Cokieng, G.R. No. 150192, 2005).
good customs and public policy.
Public Humiliation
Malicious Prosecution Such acts also constitute an offense under Art.
An action for damages brought by one against 359 of the Revised Penal Code (Slander by
another whom a criminal prosecution, civil suit, or Deed)
other legal proceeding has been instituted (a) A person can be held liable for damages for
maliciously and without probable cause, after slapping another in public. (Patricio v. Hon.
termination of such prosecution, suit or Oscar Leviste, G.R. No. L-51832, 1989)
proceeding in favor of the defendant therein. (b) A defendant may likewise be guilty of a tort
even if he acted in good faith if the action has
The action which is terminated should be one caused humiliation to another. (Grand Union
begun in malice, without probable cause to Supermarket v. Espino, G.R. No. L-48250,
believe that the charges can be sustained. 1979)
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Ostentatious Display of Wealth Inaction must be due to malice or inexcusable

Thoughtless extravagance for pleasure or display negligence (Philippine Match Co., Ltd. vs. City of
during a period of public want or emergency. (Art. Cebu, G.R. No. L-30745, 1978).
25)
Purpose of this article is to end the "bribery
Violation of Right of Privacy and Family system, where the public official, for some flimsy
Relations excuse, delays or refuses the performance of his
The following acts though they may not constitute duty until he gets some kind of pabagsak." (Tuzon
a criminal offense, shall produce a cause of action v. CA, G.R. No. 90107, 1992)
for damages, prevention and other relief: (PMIV)
(a) Prying into the privacy of another's residence Refers to non-feasance; not to malfeasance or
(b) Meddling with or disturbing the private life or misfeasance (Torio v. Fonatanilla, G.R. No. L-
family relations of another 29993, 1978).
(c) Intriguing to cause another to be alienated
from his friends Malfeasance – performance of some act which
(d) Vexing or humiliating another on account of ought not to be done
his religious beliefs, lowly station in life. Place
of birth, physical defect, or other personal Misfeasance – improper performance of some
condition (Art.26) act which might lawfully be done
In his opinion in Pollo v. Constantino-David Nonfeasance – omission of some act which

(2011), J. Bersamin, citing US authorities, ought to be performed
identified 4 torts that interfere with or violate a
person’s right to privacy: Example of a public officer held liable under Art.
1. The tort of intrusion upon the plaintiff’s 27 for failure or refusal to comply with a final and
seclusion or solitude, or into his private affairs executory order of the CSC (Vital-Gozon, G.R.
2. The public disclosure of embarrassing private No. 129132, 1998).
facts about the plaintiff
3. The publicity that places the plaintiff in a false Constitutional Protection Against Illegal
light in the public eye Searches and Seizures may be invoked
4. The tort of appropriation, which is committed against private individuals
when a person adopts “to his own use or Private persons may be held liable for violating
benefit the name or likeness of another.” another person’s civil and/or political rights on the
basis of Art. 32 which states that “[a]ny public
Dereliction of Official Duty of Public Officers officer or employee, or any private individual, who
May be brought by any person suffering from directly or indirectly obstructs, defeats, violates or
material or moral loss because a public servant in any manner impedes or impairs any of the
refuses or neglects, without just cause to perform following rights and liberties of another person
his official duty (Art. 27) shall be liable to the latter for damages”. Thus,
damages may be awarded against the hotel and
Requisites (PNMA) its VP for violating the union officers’ right against
1. Defendant is a Public officer charged with the unreasonable searches and seizures. (Silahis v.
performance of a duty in favor of the plaintiff Soluta, G.R. No. 163087, 2006)
2. Non-performance of such duty without just
cause (ministerial)
3. Plaintiff sustained Material or moral loss as
consequence of such non-performance
4. The Amount of such damages, if material.
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III. INTERFERENCE WITH RELATIONS existence of a valid contract is enough

(Lagon vs. CA, G.R. No. 119107, 2005).
1. Unfair Competition
Unfair competition in agricultural, commercial or It is not necessary for the interferer to know who
industrial enterprises or in labor through the use the other contracting party is. (Gilchrist vs.
of force, intimidation, deceit. Machination or other Cuddy, G.R. No. L-9356, 1915)
unjust, oppressive or highhanded method. (Art.
28) Interference is without legal excuse or
justification.
To qualify the competition as unfair, it must have
two characteristics: Malice
1. It must involve an injury to a competitor or For damages, not for injunction; but requirements
trade rival; and for the issuance of an injunction must be present
2. It must involve acts which are characterized (So Ping Bun vs. CA, G.R. No. 120554, 1999).
as “contrary to good conscience” or
“shocking to judicial sensibilities” or General Rule: Financial/business interest is not
otherwise unlawful (these include force, malice (Lagon vs. CA, G.R. No. 119107, 2005)
intimidation, deceit, machination or any other
unjust, oppressive or high handed method) Exception: When circumstances indicate bad
(Willaware Products Corp. v. Jesichris faith or malice (Go v. Cordero, G.R. No. 164703,
Manufacturing Corp., G.R. No. 193349, 2010)
2014)
NOTE: The Interferer cannot be liable for more
Example: A former employer’s act of circulating a than the contracting party who breached his own
“watchlist” with the name of its former employee contract (Daywalt vs. La Corporacion, G.R. No. L-
with the intention of preventing the employee 13505, 1919).
from obtaining employment (Calamba Medical
Center v. NLRC, G.R. No. 176484, 2008). Violation of Rights and Liberties of a Person
Any public officer or employee, or any private
Interference individual, who directly or indirectly obstructs,
One becomes liable in an action for damages for defeats, violates or in any manner impedes or
a non-trespassory invasion of another's interest impairs any of the rights and liberties (under Art.
in the private use and enjoyment of asset if 32) of another person shall be liable to the latter
1. the other has property rights and privileges for damages.
with respect to the use or enjoyment
interfered with, Good faith is not a defense (Lim v. De Leon, G.R.
2. the invasion is substantial, No. L-22554, 1975)
3. the defendant's conduct is a legal cause of
the invasion, and “Indirectly” may mean instigation or active
4. the invasion is either intentional and involvement in the act which resulted in the
unreasonable or unintentional and actionable violation of civil and political rights (MHP
under general negligence rules. Garments vs. CA, G.R. No. 86720, 1994).
Elements of Tortious Interference Emotional Distress Torts

1. Existence of a contract They are injuries to a person’s emotional
2. Interferer knows that the contract exists tranquility due to personal attacks on his
3. Actual knowledge is not necessary; character. To recover for the intentional infliction
awareness of facts which indicate the of emotional distress, the plaintiff must show:
(CESI)
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1. Conduct of the defendant was Intentional or usufructuaries, passengers of common carriers,

in reckless disregard of the plaintiff; agents, depositaries, pledgees, officious
2. Conduct was Extreme and outrageous; managers, and persons deemed by law as
3. Causal Connection between the defendant’s responsible for the acts of others. It requires only
conduct and the plaintiff’s mental distress; that diligence which an ordinary prudent man
4. Plaintiff’s mental distress was extreme and would exercise with regard to his own property.
Severe. (MVRS Publications, Inc., v. Islamic (Philippine National Bank v. Santos, G.R. No.
Da’Wah Council of the Philippines, G.R. No. 208293 & 208295)
135306, 2003).
III. STANDARD OF CARE; EMERGENCY
G. NEGLIGENCE RULE
I. CONCEPT There is no obligation on an engine driver to stop,

or even to slow down his engine, when he sees
The omission of that degree of diligence which is an adult pedestrian standing or walking on or near
required by the nature of the obligation and the track, unless there is something in the
corresponds to the circumstances of the persons, appearance or conduct of the person on foot
time and place. (Art. 1173) which would cause a prudent man to anticipate
the possibility that such person could not, or
The test by which to determine the existence of would not avoid the possibility of danger by
negligence in a particular case may be stated as stepping aside. (United States v. Bonifacio, G.R.
follows: Did the defendant, in doing the alleged No. L-10563)
negligent act, use that reasonable care and
caution which an ordinarily prudent person would Intoxication
have used in the same situation? If not, then he Mere intoxication is not negligence, nor does the
is guilty of negligence. (Picart v. Smith, 37 Phil. mere fact of intoxication establish a want of
809) ordinary care. It is but a circumstance to be
considered with the other evidence tending to
Negligence has been defined as “the failure to prove negligence. (Wright v. Manila Electric R.R.
observe for the protection of the interests of & Light Co., G.R. No. 7760)  
another person that degree of care, precaution,
and vigilance which the circumstances justly Lawyers
demand, whereby such other person suffers A lawyer is not bound to exercise extraordinary
injury." (Cusi v. Philippine National Railways, diligence, but only a reasonable degree of care
G.R. No. L-29889) and skill, having reference to the character of the
business he undertakes to do. (Adarne v. Aldaba,
II. GOOD FATHER OF A FAMILY OR A.C. No. 801) 
REASONABLY PRUDENT PERSON
Physicians
Every person obliged to give something is also
The physician’s duty to his patient relates to his
obliged to take care of it with the proper diligence
exercise of the degree of care, skill and diligence
of a good father of a family, unless the law or the
which physicians in the same general
stipulation of the parties requires another
neighbourhood, and in the same general line of
standard of care. (Art. 1163)
practice, ordinarily possess and exercise in like
cases.
Diligence of a “good father of a family" is the
standard of diligence expected of, among others,
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Banks
Similar to common carriers, banking is a business IV. UNREASONABLE RISK OF HARM
that is impressed with public interest. Hence, the
Court has recognized the fiduciary nature of In negligence, risk means a danger which is
banks’ functions and attached a special standard apparent, or should be apparent, to one in the
of diligence for the exercise of their functions   position of the actor. Such type of risk is
unreasonable risk. If such unreasonable risk
One who is blind results in injury to the plaintiff, the latter can
One who is physically disabled is required to use recover from the defendant. (Aquino, Torts and
the same degree of care that a reasonably careful Damages, p. 32, 2005).
person who has the same physical disability
would use. Physical handicaps and infirmities, There is negligence when an act is done without
such as blindness or deafness, are treated as part exercising the competence that a reasonable
of the circumstances under which a reasonable person in the position of the actor would
person must act. Thus, the standard of conduct recognize as necessary to prevent
for a blind person becomes that of a reasonable an unreasonable risk of harm to another. Those
person who is blind. (Francisco v. Chemical Bulk who undertake any work calling for special skills
Carriers, Incorporated, G.R. No. 193577) are required to exercise reasonable care in what
they do. (Keppel Cebu Shipyard, Inc. v. Pioneer
In possession of dangerous instrumentalities Insurance and Surety Corp., G.R. Nos. 180880-
A higher degree of care is required of someone 81 & 180896-97, 2009)
who has in his possession or under his control an
instrumentality extremely dangerous in character, In Spouses Pacis v. Morales, the Court ruled that
such as dangerous weapons or substances.   the respondent, as a gun store owner, is
(Pacis v. Morales, G.R. No. 169467) presumed to be knowledgeable about firearms
safety and should have known not to keep a
Emergency loaded weapon in his store to
One who suddenly finds himself in a place of avoid unreasonable risk of harm to others. He
danger and is required to act without time to has the duty to ensure that all the guns in his store
consider the best means that may be adopted to are not loaded. Firearms should be stored
avoid the impending danger, is not guilty of unloaded and separate from ammunition when
negligence, if he fails to adopt what subsequently the firearms are not needed for ready-access
and upon reflection may appear to have been a defensive use. (Spouses Pacis v. Morales, G.R.
better method, unless the emergency in which he No. 169467, 2010)
finds himself is brought about by his own
negligence. (Gan v. Court of Appeals, G.R. No. L- V. EVIDENCE
44264, 1988) When the action is one for damages founded on
culpable negligence, the principle to be observed
An individual will nevertheless be subject to is that the person claiming damages has the
liability if the emergency was brought about by his burden of proving that the damage is caused by
own negligence. (Valenzuela v. CA, G.R. Nos. the fault or negligence of the person from whom
115024 & 117944, 1996) the damage is claimed. The question that arises
is: “Whether the plaintiff has established by
NOTE: Applicable only to situations that are sufficient evidence, the existence of fault or
sudden and unexpected such as to deprive the negligence on the part of the defendant so as to
actor of all opportunity for deliberation (absence render it liable for damages for the injury” (Ong v.
of foreseeability); the action shall still be judged Metropolitan Water District, 104 Phil. 397)
by the standard of the ordinary prudent man.
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VI. PRESSUMPTION OF NEGLIGENCE the accident. (Malayan Insurance Co. vs. Rodelio
Alberto and Enrico Reyes, G.R. No. 194320).
General Rule: The burden of proof in each action
based on quasi-delict rests on the plaintiff. The doctrine of res ipsa loquitur finds no
application if there is direct proof of absence or
Exception: There are certain exceptions when presence of negligence. If there is sufficient proof
the plaintiff need not prove the existence of showing the conditions and circumstances under
negligence as an element of quasi-delict i.e. Res which the injury occurred, then the creative
Ipsa Loquitur, Injury caused by dangerous reason for the said doctrine disappears. (Huang
weapons and substances, violation of traffic rules v. Philippine Hoteliers Inc., G.R. No. 180440,
and regulations. 2012)
NOTE: However, the party invoking such Medical Malpractice; Doctrine of Common
presumption must still establish certain Knowledge
preconditions before the presumption can The general rule on the necessity of expert
operate. Thus, Article 2185 requires proof that testimony applies only to such matters clearly
there was a violation of a traffic regulation while within the domain of medical science, and not to
Article 2188 requires proof of possession of matters of common knowledge. Ordinarily, only
dangerous weapons or substances, such as experienced physicians and surgeons are
firearms and poison. (Aquino, Torts and competent to testify on whether a patient has
Damages, p. 137, 2005) been treated with reasonable care. However,
where common knowledge and experience teach
(a) Res Ipsa Loquitur that a resulting injury would not have occurred if
due care had been exercised (e.g. leaving
Where the thing which causes injury is shown to
gauzes inside the body of the patient after an
be under the management of the defendant, and
operation, operating on the wrong part of the
the accident is such as in the ordinary course of
body, etc.), an inference of negligence may be
things does not happen if those who have the
drawn giving rise to an application of the doctrine
management use proper care, it affords
of res ipsa loquitur without medical evidence.
reasonable evidence, in the absence of an
(Ramos v. Court of Appeals, G.R. No. 124354,
explanation by the defendant, that the accident
1999)
arose from want of care. (Layugan v. IAC, G.R.
73998, 1998)
Standard of Care required from the Medical
Profession
Elements of Res Ipsa Loquitur:
Given these safeguards, there is no need to
1. The accident was of a kind which does not
expressly require of doctors the observance of
ordinarily occur unless someone is negligent
“extraordinary” diligence. As it is now, the practice
2. The instrumentality or agency which caused
of medicine is already conditioned upon the
the injury was under the exclusive control of
highest degree of diligence. The standard
the person charged with negligence
contemplated for doctors is simply the reasonable
3. Injury suffered must have not been due to any
average merit among ordinarily good physicians.
voluntary action or contribution on the person
That is reasonable diligence for doctors or, the
injured (D.M. Consunji v. Court of Appeals,
reasonable skill and competence that a physician
G.R. No. 137873, 2001).
in the same or similar locality should apply.
4. It must appear that the injured party had no
knowledge or means of knowledge as to the
cause of the accident, or that the party to be
charged with negligence has superior
knowledge or opportunity for explanation of
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Liability of Hospital in Cases of Medical (b) Violation of statutes and rules

Negligence
The court has applied the doctrine of agency by In motor vehicle mishaps, the owner is solidarily
estoppel to hold hospitals liable for the negligent liable with his driver, if the former, who was in the
acts of physicians based on: vehicle, could have, by the use of the due
1. The patient accepts the services of the diligence, prevented the misfortune. It is
physician disputably presumed that a driver was negligent,
2. The patient believes that the physicians are if he had been found guilty of reckless driving or
agents of the hospital. violating traffic regulations at least twice within
the next preceding two months.
The case of PSI v. Agana pronounced that the
doctrine of corporate negligence is the judicial If the owner was not in the motor vehicle, the
answer to the problem of allocating hospital’s provisions of article 2180 are applicable. (Art.
liability for the negligent acts of health 2184)
practitioners, absent facts to support the
application of respondeat superior or apparent Employers shall be liable for the damages caused
authority. by their employees and household helpers acting
within the scope of their assigned tasks, even
The theory supporting the liability of hospital is though the former are not engaged in any
based on the recognition that the hospitals stand business or industry (Art. 2180 par. 5)
to benefit from the business of providing services
to patients and should therefore be responsible Unless there is proof to the contrary, it is
for any injury or damage that may result under the presumed that a person driving a motor vehicle
relationship. (Professional Services, Inc. v. has been negligent if at the time of the mishap, he
Agana, G.R. No. 126297, 2007) was violating any traffic regulation. (Art. 2185)
Doctrine of Informed Consent Negligence per se

The doctrine of informed consent requires a The generally accepted view is that the violation
doctor to inform his patient of the material risks of a statutory duty constitutes negligence per se.
associated with a medical procedure. (Añonuevo v. Court of Appeals, 441 SCRA 24)
However, in Sanitary Steam, it was held that to
Elements of a malpractice claim based on the hold someone liable for negligence per se, one
doctrine of informed consent must show that the violation of the statute was the
1. The physician had a duty to disclose material proximate or legal cause of the injury or that it
risks; substantially contributed thereto. Negligence,
2. He failed to disclose or inadequately consisting in whole or in part, of violation of law,
disclosed those risks; like any other negligence, is without legal
3. As a direct and proximate result of the failure consequence unless it is a contributing cause of
to disclose, the patient consented to the the injury. (Sanitary Steam Laundry v. Court of
treatment, which he or she would otherwise Appeals, 300 SCRA 20)
not have consented to; and
4. The patient was injured by the proposed Riding a haulage truck or stealing ride thereon is
treatment (Li v. Soliman, G.R. No. 165279, not negligence because transportation by truck is
2011) not dangerous per se. Violation of a rule
promulgated by board or commission is not
negligence per se but evidence of negligence.
(Marinduque Iron Mines Agents, Inc., v.
Workmen’s Compensation Commission, 99 Phil.
480)
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(c) Dangerous weapons and substance (b) Contributory Negligence
There is prima facie presumption of negligence When the plaintiff's own negligence was the
on the part of the defendant if the death or injury immediate and proximate cause of his injury, he
results from his possession of dangerous cannot recover damages. But if his negligence
weapons or substances, such as firearms and was only contributory, the immediate and
poison, except when the possession or use proximate cause of the injury being the
thereof is indispensable in his occupation or defendant's lack of due care, the plaintiff may
business. (Art. 2188) recover damages, but the courts shall mitigate
the damages to be awarded. (Art. 2179)
NOTE: Defendant may still be held liable if
negligence can be established by the plaintiff Contributory negligence is conduct on the part of
without benefit of the presumption the injured party, contributing as a legal cause to
the harm he has suffered, which falls below the
Licensed possessors of firearms have a standard which he is required to conform for his
peremptory duty to adequately safeguard such own protection. (National Power Corporation v.
dangerous weapons at all times, and to take all Casionan, G.R. No. 165969)
requisite measures to prevent minors and other
unauthorized parties from having access thereto. (c) Assumption of Risk
(Araneta v. Arreglado, 104 Phil. 529)
Volenti Non Fit Injuria
VII. DEFENSES That to which a person assents is not deemed in
law an injury.
(a) Plaintiff’s negligence is the proximate
cause of the injury The doctrine of assumption of risk means that one
who voluntarily exposes himself to an obvious,
When the plaintiff's own negligence was the known and appreciated danger assumes the risk
immediate and proximate cause of his injury, he of injury that may result therefrom.
cannot recover damages. But if his negligence
was only contributory, the immediate and As a defense in negligence cases, therefore, the
proximate cause of the injury being the doctrine requires the concurrence of three
defendant's lack of due care, the plaintiff may elements, namely: (1) the plaintiff must know that
recover damages, but the courts shall mitigate the risk is present; (2) he must further understand
the damages to be awarded. (Art. 2179.) its nature; and (3) his choice to incur it must be
free and voluntary. (Abrogar v. Cosmos Bottling
Co., G.R. No. 164749)
Test in determining if plaintiff’s negligence
was the proximate cause of his own injury NOTE: Assumption of Risk Defense is
Where he contributes to the principal occurrence, inapplicable if an emergency is found to exist, if
as one of its determining factors, he cannot the life or property of another is in peril, or when
recover. Where, in conjunction with the he seeks to rescue his endangered property.
occurrence, he contributes only to his own injury, (Ilocos Norte Electric Company v. Court of
he may recover the amount that the defendant Appeals, 179 SCRA 5)
responsible for the event should pay for such (d) Last Clear Chance
injury, less a sum deemed a suitable equivalent
for his own imprudence.   (Taylor v. Manila Also known as "The Doctrine of Discovered Peril"
Electric Railroad and Light Co., 16 Phil. 8)
The law is that the person who has the last fair
chance to avoid the impending harm and fails to
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do so is chargeable with the consequences, contractual obligations.  (Tiu v. Arriesgado, 437

without reference to the prior negligence of the SCRA 426)
other party. (Picart v. Smith, 37 Phil. 809) 4. Joint tortfeasors
5. Defendants concurrently negligent
Where both parties are negligent but the 6. As against 3rd persons (Aquino, Torts and
negligent act of one is appreciably later in time Damages, p. 230, 2005)
than that of the other, or where it is impossible to
determine whose fault or negligence brought (e) Prescription
about the occurrence of the incident, the one who
had the last clear opportunity to avoid the Period commences to run from the time the cause
impending harm but failed to do so, is chargeable of action arises (i.e. at the time of the commission
with the consequences arising therefrom. of an act or omission violative of the right of the
plaintiff) (Kramer v. CA, G.R. No. L-83524, 1989)
Stated differently, the rule is that the antecedent
negligence of a person does not preclude Prescriptive Periods
recovery of damages caused by the supervening Action for 10 years
negligence of the latter, who had the last fair damages When the right of action
chance to prevent the impending harm by the accrues:
exercise of due diligence (Canlas v. Court of Upon a written contract;
Appeals, G.R. 112160, 2000). Upon an obligation created by
law;
Requisites: Upon a judgment.
1. Plaintiff was in a position of danger by his
own negligence Quasi-delict 4 years from the time the cause
2. Defendant knew of such position of the of action arises
plaintiff
3. Defendant had the last clear chance to avoid (f) Fortuitous Event
the accident by exercise of ordinary care but No person shall be responsible for those events
failed to exercise such last clear chance and which cannot be foreseen, or which though
4. Accident occurred as proximate cause of foreseen were inevitable. (Art.1174)
such failure Requisites
1. The cause of the Unforeseen and
Who may invoke – Plaintiff unexpected occurrence, or of the failure of
the debtor to comply with his obligation, must
When the doctrine is not applicable be independent of the human will;
1. Absent preceding negligence on the part of 2. It must be Impossible to foresee the event
the plaintiffs, the doctrine of last clear chance which constitutes caso fortuito or if it can be
cannot be applied. foreseen it must be impossible to avoid
2. The doctrine does not apply where the party 3. The occurrence must be such as to render it
charged is required to act instantaneously of Impossible for the debtor to fulfill his
if the emergency rule applies. (Achevara v. obligation in a normal manner
Ramos, G.R. No. 175172)   4. The obligor must be Free from any
3. The principle of last clear chance is participation in the aggravation of the injury
inapplicable in a breach of contract, as it only resulting to the creditor.
applies in a suit between the owners and
drivers of two colliding vehicles. It does not General Rule: Fortuitous Event is a complete
arise where a passenger demands defense and a person is not liable if the cause of
responsibility from the carrier to enforce its the damage is a fortuitous event.
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Exception: It is merely a partial defense and the

courts may mitigate the damages if the loss would An individual will nevertheless be subject to
have resulted in any event. (Art. 2215 [4]) liability if the emergency was brought about by his
NOTE: A person may still be liable for a fortuitous own negligence. (Valenzuela v. CA, G.R. Nos.
event if such person made an assumption of risk. 115024 & 117944, 1996)
(g) Waiver
Rights may be waived, unless the waiver is NOTE: Applicable only to situations that are
contrary to law, public order, public policy, sudden and unexpected such as to deprive the
morals, or good customs, or prejudicial to a third actor of all opportunity for deliberation (absence
person with a right recognized by law. (Art. 6) of foreseeability); the action shall still be judged
by the standard of the ordinary prudent man.
A waiver, to be valid and effective, must in the first
place be couched in clear and unequivocal terms (i) Damnum Absque Injuria
which leave  no doubt as to the intention of a There can be damage without injury in those
person to give up a right or benefit which legally instances in which the loss or harm was not the
pertains to him.   (Gatchalian v. Delim, 203 results of a violation of a legal duty. In such cases,
SCRA 126) the consequences must be borne by the injured
person alone, the law affords no remedy for
Elements damages resulting from an act which does not
amount to a legal injury or wrong. These
1. Person making the waiver possesses that
situations are often called damnum absque injuria
right
(BPI Express Card Corporation vs. Court of
2. Has capacity and power to dispose of that
Appeals, G.R. No. 120639)
right
3. Waiver must be clear and unequivocal
There is a material distinction between damages
4. Not contrary to law, public policy
and injury. Injury is the illegal invasion of a legal
(Sanico v. Colipano, G.R. No. 209969)
right; damage is the loss, hurt or harm which
results from the injury; and damages are the
Exceptions:
recompense or compensation awarded for the
1. Waiver of an action for future fraud (including damage suffered. (Custodio v. Court of Appeals,
gross negligence) is void (Art. 1171). G.R. No. 116100, 1996)
2. Exemplary damages cannot be waived in
advance (Art. 2235). Mistakes by public officers are not actionable in
3. Waiver must not be contrary to public policy. the absence of malice or gross negligence
4. One’s consent to a waiver must not be amounting to bad faith. (Farolan v. Solmac
vitiated (Gatchalian v. Delim, G.R. No. L- Marketing Corporation, G.R. No. 83589).
56487, 1991).
H. SPECIAL LIABILITY IN PARTICULAR

(h) Emergency
ACTIVITIES
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 I. IN GENERAL; CONCEPTS
avoid the impending danger, is not guilty of
negligence, if he fails to adopt what subsequently Every person must, in the exercise of his rights
and upon reflection may appear to have been a and in the performance of his duties, act with
better method, unless the emergency in which he justice, give everyone his due, and observe
finds himself is brought about by his own honesty and good faith. (Art. 19)
negligence. (Gan v. Court of Appeals, G.R. No. L-
44264, 1988)
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Every person who, contrary to law, willfully or The principle of damnun absque injuria does not
negligently causes damage to another, shall apply when there is an abuse of a person’s right.
indemnify the latter for the same. (Art. 20) (Cebu Country Club, Inc., v. Elizagaque, G.R. No.
160273, 2008)
Any person who willfully causes loss or injury to
another in manner that is contrary to morals, good II. PRODUCTS LIABILITY; MANUFACTURERS
customs or public policy shall compensate the OR PROCESSORS
latter for the damage. (Art. 21)
a. Manufacturers or Processors
Elements of Abuse of Rights
1. The existence of a legal right or duty
drinks, toilet articles and similar goods shall be
2. Which is exercised in bad faith  
liable for death or injuries caused by any noxious
3. For the sole intent of prejudicing or injuring or harmful substances used, although no
another. contractual relation exists between them and the
consumers (Art. 2187).
Elements of Acts Contra Bonus Mores
Elements:
1. There is an act which is legal 
2. But which is contrary to morals, good 1. Defendant is a manufacturer/processor
custom, public order, or public policy 2. The goods involve foodstuffs, drinks, toilet
3. It is done with intent to injure products and similar goods
3. Use of noxious or harmful substances
Source of Damages 4. Death or injury
Article 19 only lays down a rule of conduct for the 5. Plaintiff is a consumer, user or purchaser
government of human relations and for the
maintenance of social order, it does not provide a The vendee's remedies against a vendor with
remedy for its violation. Generally, an action for respect to the warranties against hidden defects
damages under either Article 20 or Article 21 of or encumbrances upon the thing sold are not
would be proper. (Cebu Country Club, Inc. vs. limited to those prescribed in Article 1567. The
Elizagaque, G.R. No. 160273, 2008). vendee may also ask for the annulment of the
contract upon proof of error or fraud, in which
NOTE: In Metroheights Subdivision Homeowners case the ordinary rule on obligations shall be
Association, Inc. vs. CMS Construction (G.R. No. applicable. The vendor could likewise be liable
209359, 2018), the Supreme Court used Article for quasi-delict under Article 2176 of the Civil
19 as basis of awarding damages. Code, and an action based thereon may be
brought by the vendee. While it may be true that
Difference between Article 20 and Article 2176 the pre-existing contract between the parties
With respect to negligent acts or omissions, may, as a general rule, bar the applicability of the
Article 20 of the Civil Code concerns violations of law on quasi-delict, the liability may itself be
existing law as basis for an injury whereas Article deemed to arise from quasi-delict, i.e., the acts
2176 applies when the negligent act causing which breaks the contract may also be a quasi-
damage to another does not constitute a breach delict. (Coca-Cola Bottlers v. Court of Appeals,
of an existing law or a pre-existing contractual G.R. No. 110295, 1993).
obligation. (St. Martin Polyclinic, Inc. v. LWV
Construction Corp., G.R. No. 217426, 2017) The following must be present before a
manufacturer or seller may be held liable for
Damnum Absque Injuria is inapplicable in any damage caused by the product:
abuse of rights 1. Proof that the product in question was
defective
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2. The defect must be present upon the delivery the extent of the annoyance, danger or damage
or manufacture of the product; or when the upon individuals may be unequal. A private
product left the seller's or manufacturer's nuisance is one that is not included in the
control; or when the product was sold to the foregoing definition (Art. 695).
purchaser
3. The product must have reached the user or Remedies against public nuisance
consumer without substantial change in the 1. Prosecution under the RPC or any local
condition it was sold (Pascual v. Ford Motor ordinance
Company Philippines, Inc., G.R. No. 220667, 2. Civil action
2016) 3. Abatement, without judicial proceeding
III. NUISANCE Remedies against private nuisances:

1. Civil Action
A nuisance is any act, omission, establishment, 2. Abatement, without judicial proceedings
business, condition of property, or anything else
which: Who may avail of the remedies
1. Injures or endangers the health or safety of 1. Public officers
others; or 2. Private persons - if nuisance is especially
2. Annoys or offends the senses; or injurious to himself; the ff. must be made:
3. Shocks, defies or disregards decency or i. Demand be first made upon owner or
morality; or possessor of the property to abate
4. Obstructs or interferes with the free passage nuisance
of any public highway or street, or any body ii. That such demand has been rejected
of water; or iii. That the abatement be approved by
5. Hinders or impairs the use of property (Art. the district health officer and executed
694). with the assistance of local police
iv. That the value of destruction does not
Kinds exceed P3,000
a. Nuisance Per Se and Nuisance Per
Accidens Doctrine of Attractive Nuisance
Nuisance per se is recognized as a nuisance One who maintains on his premises dangerous
under any and all circumstances because it instrumentalities or appliances of a character
constitutes a direct menace to public health or likely to attract children in play and who fails to
safety, and, for that reason, may be abated exercise ordinary care to prevent children from
summarily under the undefined law of necessity. playing therewith or resorting thereto, is liable to
a child of tender years who is injured thereby,
Nuisance per accidens is that which depends even if the child is technically a trespasser in the
upon certain conditions and circumstances, and premises. (Hidalgo v. CA, G.R. No. L-342, 1952)
its existence being a question of fact, it cannot be
abated without due hearing thereon in a tribunal Attractive nuisance doctrine generally is not
authorized to decide whether such a thing does applicable to bodies of water, artificial as well as
in law constitute a nuisance. (Salao vs. Santos, natural, in the absence of some unusual condition
67 Phil. 550) or artificial feature other than the mere water and
its location. Hence, when the owner of private
b. Public Nuisance and Private Nuisance property creates an artificial pool on his own
Nuisance is either public or private. A public property or a tank, merely duplicating the work of
nuisance affects a community or neighborhood nature without adding any new danger, owner is
or any considerable number of persons, although not liable. (Hidalgo v. CA, G.R. No. L-3422, 1952)
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required that defendants should have acted with

IV. VIOLATION OF CONSTITUTIONAL malice or bad faith. (Lim vs. de Leon, 66 SCRA
RIGHTS; VIOLATION OF CIVIL LIBERTIES 299, 1975)  
Article 32 of the New Civil Code provides for an The law speaks of an officer or employee or
independent civil action for damages for violation person "directly or indirectly" responsible for the
of civil and political rights. violation of the constitutional rights and liberties
of another. Thus, it is not the actor alone who
Although Article 32 normally involves intentional must answer for damages under Article 32; the
acts, the tort of violation of civil and political rights person indirectly responsible has also to answer
can also be committed through negligence. In for the damages or injury caused to the aggrieved
addition, the rule is that good faith on the part of party (MHP Garments, Inc., vs. Court of Appeals,
the defendant does not necessarily excuse such 236 SCRA 227, 1994).
violation (Aquino, Torts and Damages, p. 519,
2005) In order to maintain a libel suit, it is essential that
the victim be identifiable, although it is not
Covers both public officers and private necessary that he be named. Where the
individuals defamation is alleged to have been directed at a
The provisions in the Bill of Rights and the group or class, it is essential that the statement
recognition of the rights specified therein are must be so sweeping or all-embracing as to apply
normally directed against government abuse. to every individual in that group or class, or
Hence, the tort of violation of constitutional rights sufficiently specific so that each individual in the
in common law is directed against public officers class or group can prove that the defamatory
or employees. In this jurisdiction, the coverage of statement specifically pointed to him, so that he
this tort was expanded to cover even private can bring the action separately, if need be
individuals. The law expressly imposes liability on (Newsweek vs. Intermediate Appellate Court, 142
private individuals who obstruct, defeat, violate or SCRA 141, 1986).
in any manner impede or impair the rights and
liberties of another. (Aquino, Torts and Damages, Emotional Distress Tort or Tort of Outrage
p. 520, 2005) An "emotional distress" tort action is personal in
nature. It is a civil action filed by an individual to
Bad faith or malice is not required assuage the injuries to his emotional tranquility
The Code Commission thus deemed it necessary due to personal attacks on his character. To
to hold not only public officers but also private recover for the intentional infliction of emotional
individuals civilly liable for violation of rights distress the plaintiff must show that:
enumerated in Article 32 of the Civil Code. That 1. The conduct of the defendant was intentional
is why it is not even necessary that the defendant or in reckless disregard of the plaintiff;
under this Article should have acted with malice 2. The conduct was extreme and outrageous;
or bad faith, otherwise, it would defeat its main 3. There was a causal connection between the
purpose, which is the effective protection of defendant's conduct and the plaintiff's mental
individual rights. It suffices that there is a violation distress; and
of the constitutional right of the plaintiff. (Silahis 4. The plaintiff's mental distress was extreme
International Hotel V. Soluta, G.R. No. 163087, and severe. (MVRS Publications, Inc., V.
2006) Islamic Da’wah Council, G.R. No. 135306,
2003).
To be liable under Article 32 of the New Civil
NOTE: In determining whether the tort of outrage
Code it is enough that there was a violation of the
had been committed, a plaintiff is necessarily
constitutional rights of the plaintiffs and it is not
expected and required to be hardened to a certain
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amount of criticism, rough language, and to official duties within the ambit of their powers.
occasional acts and words that are definitely Obviously, officers do not act within the ambit of
inconsiderate and unkind. their powers if they would violate the
constitutional rights of other persons (Aquino,
V. VIOLATION OF RIGHTS COMMITTED BY Torts and Damages, p. 524, 2005).
PUBLIC OFFICERS
VI. PROVINCES, CITIES AND
Superior Officers MUNICIPALITIES
Other individuals who can be held liable under
Article 32 for having indirectly violated the Provinces, cities and municipalities shall be liable
constitutional right of another against for damages for the death of, or injuries suffered
unreasonable searches and seizure are the by, any person by reason of the defective
superior officers of the law enforcement officers condition of roads, streets, bridges, public
who conducted the raid. Under Article 32, it is not buildings, and other public works under their
the actor alone who must answer for damages. control or supervision (Art. 2189).
(Aquino, Torts and Damages, p. 522, 2005
Control and supervision sufficient
“The principles of accountability of public officials Under Article 2189 of the Civil Code, it is not
under the Constitution acquires added meaning necessary for the liability therein established to
and assumes a larger dimension. No longer may attach that the defective roads or streets belong
a superior official relax his vigilance or abdicate to the province, city or municipality from which
his duty to supervise his subordinates, secure in responsibility is exacted. What said article
thought that he does not have to answer the requires is that the province, city or municipality
transgressions committed by the latter against have either "control or supervision" over said
the constitutionally protected rights and liberties street or road (City of Manila vs. Teotico, 22
of the citizen.” (Aberca vs. Ver, 160 SCRA 590, SCRA 267, 1968).
606, 1988).
VII. OWNER OF MOTOR VEHICLE
Subordinate Officers In motor vehicle mishaps, the owner is solidarily
The persons who actually conducted the illegal liable with his driver, if the former, who was in the
search and seizure are liable under Article 32. vehicle, could have, by the use of the due
(Aquino, Torts and Damages, p. 523, 2005) diligence, prevented the misfortune. It is
disputably presumed that a driver was negligent,
However, a subordinate officer who actually if he had been found guilty of reckless driving or
impounded the personal property of the violating traffic regulations at least twice within
complainant upon the orders of his superior the next preceding two months. If the owner was
officer is not liable because he was reluctant to not in the motor vehicle, the provisions of article
enforce the order; he was led to believe that there
2180 are applicable. (Art. 2184).
was legal basis and authority to impound the
property and that he was faced with a possible
Unless there is proof to the contrary, it is
disciplinary action from his commander. (Delfin
presumed that a person driving a motor vehicle
Lim vs. Ponce de Leon, GR No. L-22554, 1975).
has been negligent if at the time of the mishap, he
was violating any traffic regulation (Art. 2185).
A public officer who is the defendant in a case for
Registered Owner Rule
damages under Article 32 cannot escape liability
In motor vehicle mishaps, the registered owner of
under the doctrine of state immunity. The doctrine
the vehicle is considered the employer of the
of state immunity applies only if the acts involved
tortfeasor-driver, and is made primarily liable for
are acts done by officers in the performance of
the tort committed by the latter. Insofar as third
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persons are concerned, the registered owner of The engineer or architect who drew up the plans
the motor vehicle is the employer of the negligent and specifications for a building is liable for
driver, and the actual employer is considered damages if within fifteen years from the
merely as an agent of such owner. (Filcar completion of the structure, the same should
Transport Services v. Espinas, G.R. No. 174156, collapse by reason of a defect in those plans and
2012) specifications, or due to the defects in the ground.
(Art. 1723)
Defenses of Registered Owner
(a) Unauthorized use of the vehicle Liability of contractor
(b) The vehicle was stolen from him The contractor is likewise responsible for the
damages if the edifice falls, within fifteen years,
If Registered Owner is also the Employer on account of defects in the construction or the
Therefore, the appropriate approach is that in use of materials of inferior quality furnished by
cases where both the registered-owner rule and him, or due to any violation of the terms of the
Article 2180 apply, the plaintiff must first establish contract.
that the employer is the registered owner of the
vehicle in question. Once the plaintiff successfully If the engineer or architect supervises the
proves ownership, there arises a disputable construction, he shall be solidarily liable with the
presumption that the requirements of Article 2180 contractor. Acceptance of the building, after
have been proven. As a consequence, the completion, does not imply waiver of any of the
burden of evidence shifts to the defendant to causes of action by reason of any defect. (Art.
show that no liability under Article 2180 has 1723)
arisen. (Caravan Travel and Tours International,
Inc. v. Abejar, G.R. No. 170631, 2016). Period
The action against the engineer, architect or
VIII. PROPRIETOR OF BUILDING OR contractor must be brought within ten years
STRUCTURE OR THING following the collapse of the building. (Art. 1723)
LIABILITY FOR DAMAGES
IX. HEAD OF FAMILY
1. Total or partial collapse of building or
structure if due to lack of necessary repairs The head of a family that lives in a building or a
(Art. 2190) part thereof, is responsible for damages caused
2. Explosion of machinery which has not been by things thrown or falling from the same (Art.
taken care of with due diligence, and the 2193).
inflammation of explosive substances which
have not been kept in a safe and adequate X. VIOLATIONS OF DATA PRIVACY
place
3. By excessive smoke, which may be harmful The data subject is entitled to be indemnified for
to persons or property any damages sustained due to such inaccurate,
4. By falling of trees situated at or near incomplete, outdated, false, unlawfully obtained
highways or lanes, if not caused by force or unauthorized use of personal information.
majeure (Data Privacy Act of 2012, Sec. 16 par. f)
5. By emanations from tubes, canals, sewers or
deposits of infectious matter, constructed
without precautions suitable to the place (Art.
2191)
dc
Liability of Engineer or Architect
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I. STRICT LIABILITY b. Consumer Act (R.A. 7394)
Prohibited contractual stipulation

I. ANIMALS; POSSESSOR AND USER OF AN
The stipulation in a contract of a clause
ANIMAL
preventing, exonerating or reducing the obligation
The possessor of an animal or whoever may
to indemnify for damages effected, as provided
make use of the same is responsible for the
for in this and in the preceding Articles, is hereby
damage which it may cause, although it may
prohibited, if there is more than one person
escape or be lost. This responsibility shall cease
responsible for the cause of the damage, they
only in case the damage should come from force
shall be jointly liable for the redress established in
majeure or from the fault of the person who has
the pertinent provisions of this Act. However, if
suffered damage (Art. 2183).
the damage is caused by a component or part
incorporated in the product or service, its
First Bite Rule is not applicable in the
manufacturer, builder or importer and the person
Philippines
who incorporated the component or part are
In English law, the owners or possessors of
jointly liable (Consumer Act, Art. 106).
domestic animals are liable only if they knew or
Liability for Defective Products
had reason to know that the animal had vicious
Any Filipino or foreign manufacturer, producer,
properties. On the other hand, Article 2183 by the
and any importer, shall be liable for redress,
Civil Code, does not admit of the distinction under
independently of fault, design, manufacture,
English law. The Civil Code provision, is
construction, assembly and erection, formulas
therefore, applicable whether the animal is
and handling and making up, presentation or
domestic, domesticated or wild (Aquino, Torts
packing of their products, as well as for the
and Damages, p. 739, 2005).
insufficient or inadequate information on the use
and hazards thereof. (Consumer Act, Art. 97)
II. NUISANCE Exception to the Liability for Defective
There is strict liability on the part of the owner or Products
possessor of the property where a nuisance is The manufacturer, builder, producer or importer
found because he is obliged to abate the same shall not be held liable when it evidences:
irrespective of the presence or absence of fault or 1. that it did not place the product on the
negligence. (Aquino, Torts and Damages, p. 747, market;
2005). 2. that although it did place the product
on the market such product has no
Moreover, the Civil Code provides that every defect;
successive owner or possessor of property who 3. that the consumer or a third party is
fails or refuses to abate a nuisance in that solely at fault. (Consumer Act, Art.
property started by a former owner or possessor 97)
is liable therefor in the same manner as the one
who created it (Art. 696). NOTE: This liability applies to tradesman/seller
when the persons named above cannot be, or are
III. PRODUCTS LIABILITY; CONSUMER ACT not identified, or when the tradesman did not
preserve the goods adequately. (Consumer Act,
a. Manufacturers or Processors
Art. 98)
drinks, toilet articles and similar goods shall be Liability for Defective Service
liable for death or injuries caused by any noxious The service supplier is liable for redress,
or harmful substances used, although no independently of fault, for damages caused to
contractual relation exists between them and the consumers by defects relating to the rendering of
consumers (Art. 2187). the services, as well as for insufficient or
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inadequate information on the fruition and

hazards thereof. (Consumer Act, Art. 99)
Liability for Product or Service Imperfection

The suppliers of durable or nondurable consumer
products are jointly liable for imperfections in
quality that render the products unfit or
inadequate for consumption for which they are
designed or decrease their value, and for those
resulting from inconsistency with the information
provided on the container, packaging, labels or
publicity messages/advertisement, with due
regard to the variations resulting from their
nature, the consumer being able to demand
replacement to the imperfect parts. (Consumer
Act, Art. 100)
Liability for Product Quantity Imperfection

Suppliers are jointly liable for imperfections in the
quantity of the product when, in due regard for
variations inherent thereto, their net content is
less than that indicated on the container,
packaging, labeling or advertisement. (Consumer
Act, Art. 101)
Liability for Service Quality Imperfection

The service supplier is liable for any quality
imperfections that render the services improper
for consumption or decrease their value, and for
those resulting from inconsistency with the
information contained in the offer or
advertisement. (Consumer Act, Art. 102)
\Repair Service Obligation

When services are provided for the repair of any
product, the supplier shall be considered implicitly
bound to use adequate, new, original
replacement parts, or those that maintain the
manufacturer's technical specifications unless,
otherwise authorized, as regards to the latter by
the consumer. (Consumer Act, Art. 103)
NOTE: The supplier's ignorance of the quality

imperfections due to inadequacy of the products
and services does not exempt him from any
liability. (Consumer act, Art. 104)
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DAMAGES
Kinds of Actual or Compensatory Damages
1. General Damage
A. GENERAL CONSIDERATIONS
Natural, necessary and logical consequences of
a particular wrongful act which result in injury;
CONCEPT
need not be specifically pleaded because the law
Adequate compensation for the value of loss
itself implies or presumes that they resulted from
suffered or profits which obligee failed to obtain.
the wrongful act
Exceptions
2. Special Damages
1. Law
Damages which are the natural, but not the
2. Stipulation
necessary and inevitable result of the wrongful
act. (i.e., attorney’s fees)
Actual damages shall be construed to include all
damages that the plaintiff may show he has
REQUISITES
suffered in respect to his property, business,
1. Alleged and Proved with Certainty
trade, profession, or occupation, and no other
i. Must be pleaded and proved with certainty,
damages whatever. Actual damages are
ii. Must pray for the relief that claim for loss
compensatory only. They simply make good or
be granted and
replace the loss caused by the wrong. (Algarra v.
Sandejas, G.R. No. L-8385, 1914.).
2. Not Speculative
Plaintiff must prove the loss. For damages to be
Indemnification is meant to compensate for the
recovered, the best evidence obtainable by the
injury inflicted and not to impose a penalty. A
injured party must be presented. Actual or
party is entitled to adequate compensation only
compensatory damages cannot be presumed but
for such pecuniary loss actually suffered and duly
must be proved with reasonable degree of
proved. (PNOC Shipping and Transport Corp v.
certainty. The Court cannot rely on speculation,
CA, G.R. No. 107518, 1998)
conjecture or guesswork as to the fact and
amount of damages, but must depend upon
I. CLASSIFICATION
competent proof that they have been suffered
ACTUAL DAMAGES and on evidence of the actual amount. If the proof
is flimsy and unsubstantial, no damages will be
Classes (I-LAV-IIT) awarded. (Consolidated Industrial Gases, Inc. vs.
1. Indemnity for death Alabang Medical Center, G.R. No. 181983, 2013)
2. Lucrum Cesans (Benefits you would have
obtained The claimant has the burden of proof. He must
3. Attorney’s fees establish his case by a preponderance of
4. Value of loss actually sustained (damnum evidence which means that evidence, as a whole,
emergens) adduced by one side is superior to that of the
5. Interest other. It is not enough that plaintiff present an
6. Injury to business standing or commercial estimated amount. But uncertainty as to the
credit precise amount is not necessarily fatal. Mere
7. Temporary or permanent loss of earning difficulty in the assessment of damages is not
capacity sufficient reason for refusing to award damages
  where the right to them has been established
(PNOC Shipping and Transport Corp v. CA, G.R.
No. 107518, 1998).
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When loss need not be proved Non-working victims: Earning capacity may be
1. Liquidated damages previously agreed impaired even if no actual earning is lost in the
upon; liquidated damages take the place of meantime. The liability under Article 2206 is for
actual damages except when additional loss of earning capacity rather than loss of actual
damages are incurred earnings. The minimum wage can be used in
2. If damages other than actual are sought computing the net earnings.
3. Loss is presumed (ex: loss if a child or
spouse) Pension: Loss of earning capacity covers
4. Forfeiture of bonds in favor of the pension which the decedent would have received
government for the purpose of promoting (De Caliston v. CA, G.R. No. L-63135, 1983).
public interest or policy (ex: bond for
temporary stay of alien) Formula for computation of loss of earning
5. Award of civil indemnity in tort cases or capacity
criminal cases where the victim died. This
civil indemnity is in addition to any actual or American Expectancy Table of Mortality or the
compensatory damages that may be Actuarial of Combined Experience Table of
awarded in favor of the victim’s heirs. Mortality
COMPONENT ELEMENTS [2/3 x (80 – (age at the time of death))] x monthly

earnings x 12 = GROSS EARNINGS (GE)
1. Value of Loss; Unrealized Profit
Value of loss suffered GE – Approximate Expenses (50% of GE) = Net
Destruction of things, fines or penalties, medical Earnings
& hospital bills, attorney's fees, interests, cost of
litigation NOTE: In the absence of documentary evidence
of expenses, it is reasonable to presume that it is
Loss of earning capacity 50% of the gross income. (Philippine Hawk
Variables to consider Corporation v. Lee, G.R. No. 166869, 2010)
1. Life expectancy
Formula: [2/3 x( 80 – (age at the time of death))] LEC May Be Awarded to Parents of Deceased
Child Who Had NO History of Earnings
The resulting amount should be used as a Art. 2206(1) provides that damages for LEC shall
multiplier even if the computed life expectancy be assessed and awarded by the court “unless
goes beyond the victim’s retirement age. The the deceased on account of permanent physical
presumption is that the victim could have earned disability not caused by the defendant, had no
income even if he is beyond the retirement age earning capacity at the time of his death”.
(Smith Bell Dodwell Shipping Agency Corporation Damages for LEC may be awarded to a minor’s
v. Borja, G.R. No. 143008, 2002). heirs although he had no history of earnings
because compensation of this nature is awarded
2. Net income/earnings – total of the earnings not for loss of time or earnings but for loss of the
less expenses necessary for the creation of such deceased’s power or ability to earn money.
earnings and less living or other incidental (Spouses Pereña v. Spouses Zarate, G.R. No.
expenses 157917, August 29, 2012).
3. Living expenses – In the absence of the How to Compute LEC of Non-Earning Student
specific amount to be deducted from the gross As a general rule, damages for LEC are
income, the amount of living expenses shall be computed by applying the following formula:
50% of the gross income. Examples of living
expenses: transportation, clothing, toiletries
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Damages for LEC = 2/3(80-X) multiplied by Net damages may be recovered "for injury to the
Annual Income where: plaintiff's business standing or commercial
credit." And even if not recoverable
(1) “X” is the deceased or permanently compensatory damages, they may still be
incapacitated person’s age at the time of the awarded in the concept of temperate or moderate
accident; and damages.
(2) “Net Annual Income” is equivalent to a There are cases where from the nature of the
person’s Gross Annual Income less Necessary case, definite proof of pecuniary loss cannot be
and Living Expenses (in the absence of evidence, offered, although the court is convinced that there
it is presumed that Necessary and Living has been such loss. For instance, injury to one's
Expenses are equal to half of a person’s Gross commercial credit or to the goodwill of the
Annual Income). business firm is often hard to show with certainty
in terms of money. The judge should be
The formula may be modified when a minor empowered to calculate moderate damages in
who was not yet earning is involved: such cases, rather than that the plaintiff should
(1) “X” may be fixed at 21, instead of the person’s suffer, without redress from the defendant's
age at the time of his death or permanent wrongful act (Radio Communications of the
incapacity. Courts may presume that persons Philippines, Inc. v. Court of Appeals, G.R. No. L-
graduate from college at the age of 21, and it is 55194, 1981).
only then that they would start earning a
livelihood. 2. Attorney’s Fees
They are actual damages due to the plaintiff and
(2) “Net Annual Income” may be computed on the not to counsel.
basis of the prevailing minimum wage for workers
in the non-agricultural sector at the time of the Plaintiff must allege the basis of his claim for
minor’s death or permanent incapacity. (Spouses attorney’s fees in the complaint. The basis should
Pereña v. Spouses Zarate, 2012; and Abrogar v. be one of the cases under Art. 2208.
Cosmos Bottling Co., 2017)
In its ordinary concept, an attorney’s fee is the
Loss of profits (Lucrum Cessans) reasonable compensation paid to a lawyer by his
May be determined by considering the average client for the legal services he has rendered to the
profit for the preceding years multiplied by the latter. The basis of this compensation is the fact
number of years during which the business was of his employment by and his agreement with the
affected by the wrongful act or breach client.
The income of similar businesses or activities In its extraordinary concept, an attorney’s fee is
may be considered (G.A. Machineries, Inc. v. an indemnity for damages ordered by the court to
Yaptinchay, G.R. No. L-30965, 1983). be paid by the losing party in litigation. The basis
of this is any of the cases provided by law where
Damage to business standing/ commercial such award can be made, such as those
credit authorized in Article 2208, Civil Code, and is
In Radio Communications v. CA, compensatory payable not to the lawyer but to the client, unless
damages were also awarded for injury to they have agreed that the award shall pertain to
respondent's "business reputation or business the lawyer as additional compensation or as part
standing", "loss of goodwill and loss of customers thereof.
or shippers who shifted their patronage to
competitors". The grant thereof is proper under Attorney's fees are recoverable not as a matter of
the provisions of Article 2205, which provides that right. It is the import of Article 2208 that the award
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of attorney's fees is an exception and that the Note: The legal rate at the time of perfection of
decision must contain an express finding of fact the obligation will apply. It will not be affected by
to bring the case within the exception and justify a supervening change in the legal rate of interest.
the grant of attorney's fees. "Just and equitable"
under paragraph 11, Article 2208, New Civil Code Requisites:
is not a matter of feelings, but demonstration. The The collection of interest in loans or forbearance
reason for the award of attorney's fees must be of money is allowed only when these two
stated in the text of the court's decision, conditions concur:
otherwise, if it is stated only in the dispositive 1. There was an express stipulation for the
portion of the decision, the same must be payment of interest; and
disallowed on appeal (Abrogar v. IAC, G.R. No. 2. The agreement for the payment of the
L-67970 January 15, 1988). interest was reduced in writing.
When attorney’s fees are recoverable Absent any of these two conditions, the money
General Rule: In the absence of stipulation, debtor cannot be made liable for interest.
attorney's fees and expenses of litigation, other Evidence must be presented to show that the
than judicial costs, cannot be recovered parties agreed on the payment of interest.
Exceptions: BUT SEE: S.C. Megaworld v. Parada (G.R. No.

1. When exemplary damages are awarded; 183804, 2013) and Raymundo v. Galen Realty
2. When the defendant's act or omission has (G.R. No. 191594, 2013) where the Court
compelled the plaintiff to litigate with third awarded interest despite the absence of
persons or to incur expenses to protect his stipulation.
interest;
3. In criminal cases of malicious prosecution 2. Compensatory interest - it is awarded in the
against the plaintiff; concept of damages for delay in the
4. In case of a clearly unfounded civil action or performance of an obligation. It is due and
proceeding against the plaintiff; demandable from the time demand is first
5. Where the defendant acted in gross and made, whether judicial or extrajudicial.
evident bad faith in refusing to satisfy the
plaintiff's plainly valid, just and demandable Note: For compensatory interest, the legal rate of
claim; interest always applies. This means that
6. In actions for legal support; compensatory interest is affected by supervening
7. In actions for the recovery of wages of changes in legal rate of interest.
household helpers, laborers and skilled
workers; Rules in the computation of interest in the
8. In actions for indemnity under workmen's concept of actual or compensatory damage
compensation and employer's liability laws; (a) In case of loan or forbearance of money,
9. In a separate civil action to recover civil goods, credits or judgments, the interest
liability arising from a crime; due should be that which is stipulated by the
10. When at least double judicial costs are parties in writing, provided that it is not
awarded. (Art. 2208) excessive and unconscionable. which may
have been stipulated in writing.
3. Interest 1. In the absence of a stipulated reckoning
Two types of interest: date, the interest shall be computed from
1. Monetary interest - compensation for the default, i.e., from extrajudicial or judicial
use of money. demand in accordance with Article 1169
of the Civil Code, UNTIL FULL
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PAYMENT, without compounding any claim is made extrajudicially or judicially (Art.

interest. 1169) until full payment, but when such
a. Unless compounded interest is certainty cannot be so reasonably
expressly stipulated by the established at the time the demand is made,
parties, by law or regulation. the interest shall begin to run only from the
2. Interest due on the principal amount date of the judgment of the trial court (at
accruing as of judicial demand shall which time the quantification of damages
separately earn legal interest at the may be deemed to have been reasonably
prevailing rate prescribed by the Bangko ascertained) until full payment.
Sentral ng Pilipinas, from the time of • The actual base for the computation of
judicial demand until full payment. the interest shall, in any case, be on the
principal amount finally adjudged,
(b) Obligation other than a loan or without compounding any interest
forbearance of money, goods, credits or unless compounded interest is
judgments expressly stipulated by law or
1. The rate of interest on the principal regulation. (Lara’s Gifts & Decors, Inc.
amount shall be the prevailing legal v. Midtown industrial Sales, Inc., G.R.
interest prescribed by the Bangko Sentral No. 225433, 2019).
ng Pilipinas.
2. It shall be computed from extrajudicial or NOTE: C.B. Circular No. 799, July 1, 2013,
judicial demand in accordance with changed the rate of interest in the absence of
Article 1169 of the Civil Code, UNTIL stipulation in loans or forbearance of money to
FULL PAYMENT, without compounding 6%.
any interest.
a. Unless compounded interest is When actual damages are mitigated
expressly stipulated by the 1. Contributory negligence
parties, by law or regulation. 2. In contracts, Quasi-contracts and quasi-
3. Interest due on the principal amount delict
accruing as of judicial demand shall (a) Plaintiff has contravened the terms of
separately earn legal interest at the contract
prevailing rate prescribed by the Bangko (b) Plaintiff derived some benefit as result
Sentral ng Pilipinas, from the time of of contract
judicial demand until full payment. (c) In case where exemplary damages are
to be awarded, that the defendant acted
(c) When the obligation, not constituting a loan upon the advice of counsel
or forbearance of money, goods, credits or (d) That the loss would have resulted in any
judgments, is breached, an interest on the event
amount of damages awarded may be (e) That since the filing of the action, the
imposed in the discretion of the court at the defendant has done his best to lessen
prevailing legal interest prescribed by the the plaintiff's loss or injury
Bangko Sentral ng Pilipinas, pursuant to
Articles 2210 and 2011 of the Civil Code. General Rule: Insofar as actual or compensatory
(d) No interest, however, shall be adjudged on damages are concerned, Article 2199 provides,
unliquidated claims or damages until the “Except as provided by law or by stipulation, one
demand can be established with reasonable is entitled to an adequate compensation only for
certainty. Accordingly, where the amount of such pecuniary loss suffered by him as he has
the claim or damages is established with duly proved. Such compensation is referred to as
reasonable certainty, the prevailing legal actual or compensatory damages.”
interest shall begin to run from the time the
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“Conformably with the foregoing provision, the EXTENT OR SCOPE OF ACTUAL DAMAGES
rule is long and well settled that there must be
pleading and proof of actual damages suffered for 1. In Contracts and Quasi-Contracts
the same to be recovered. In addition to the fact (a) Damages in case of Good Faith
that the amount of loss must be capable of proof, 1. Natural and probable consequences of
it must also be actually proven with a reasonable breach of obligations
degree of certainty, premised upon competent 2. Parties have foreseen or could have
proof or the best evidence obtainable. The reasonably foreseen at the time the
burden of proof of the damage suffered is, obligation was created
consequently, imposed on the party claiming the
same who should adduce the best evidence (b) Damages in case of Bad Faith
available in support thereof, like sales and It is sufficient that damages may be reasonably
delivery receipts, cash and check vouchers and attributed to the non-performance of the
other pieces of documentary evidence of the obligation.
same nature. In the absence of corroborative
evidence, it has been held that self-serving NOTE: Two Kinds of Foreseeability:
statements of account are not sufficient basis for 1. Imputed Foreseeability
an award of actual damages. Corollary to the Those consequences which a reasonable
principle that a claim for actual damages cannot person should have foreseen; the test is whether
be predicated on flimsy, remote, speculative, and a reasonable person would have foreseen the
insubstantial proof, courts are, likewise, required damages that the purchaser encountered
to state the factual bases of the award. (Hadley v. Baxendale, cited in Daywalt v. La
(Oceaneering Contractors (Phils.), Inc. v. Barreto, Corporacion, G.R. No. L-13505, 1919).
G.R. No. 184215, 2011)
2. Actual Foreseeability
Exceptions: Actual knowledge (not just imputed) of relevant
1. It should be emphasized however that facts is necessary where the loss in question is
uncertainty as to the precise amount is not of an unusual kind or of an unusually high extent.
necessarily fatal (Talisay-Silay Milling, Inc. v.
Associacion de Agricultores de Talisay-Silay, In Mendoza v. PAL (G.R. No. L-3678, 1952), the
Inc., G.R. No. 91852,1995). defendant cannot be held liable for damages
where it could not have foreseen the damages
Mere difficulty in the assessment of damages is that would be suffered by the plaintiff upon failure
not sufficient reason for refusing to award to deliver the can of film for reason that the plans
damages where the right to them has been of the plaintiff to exhibit that film during the town
established (Ball v. Pardy CTJ Construction Co., fiesta and his preparation, specially the
63 ALR 139, 108 Conn. 549, 143 A 855). announcement of said exhibition by poster and
advertisement in the newspapers were not called
2. Civil Indemnity: to the defendant's attention. Unusual or
Proof of Actual loss is also not necessary in cases extraordinary damages (beyond the ordinary
where the law or jurisprudence allows the award course of things) must have been brought within
of civil indemnity. As in People v. Guanzon, the the contemplation of the parties as the probable
Court ruled that: Civil indemnity, which is actually result of breach at the time of or prior to
in the nature of actual or compensatory damages, contracting.
is mandatory upon the finding of the fact of rape
(People v. Alex Condez y Guanzon, G.R. No. 2. In Crimes and Quasi-Delicts
187077, 2011) (a) Defendant is liable for all damages that are
natural and probable consequences of the
act complained of;
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(b) Not necessary that damages have been 9. Acts mentioned in ART. 309 of the RPC
foreseen or could have been reasonably relating to disrespect of the dead and
foreseen. interference with funeral
10. Acts and actions referred to in Arts. 21, 26,
MORAL DAMAGES 27, 28, 29, 30, 32, 34 and 35 (Art. 2219)
CONCEPT NOTE: Art.2219 is not an exclusive enumeration.

Include: (PBMF-MWSSS) Moral damages may also be awarded in cases of
1. Physical suffering willful injury to property or breaches of contract
2. Besmirched reputation where defendant acted fraudulently or in bad
3. Mental anguish faith. (Art. 2220)
4. Fright
5. Moral shock In culpa contractual, only in cases of gross
6. Wounded feelings negligence amounting to bad faith or in wanton
7. Social humiliation disregard of his contractual obligation. In a
8. Serious anxiety breach of contract of carriage, moral damages
9. Sentimental value of real or personal may also be recovered in case of death of a
property may be considered in adjudicating passenger.
moral damages (Art. 2217)
In culpa aquiliana,
The social and economic/financial standing of the (a) when the act or omission causes physical
offender and the offended party should be taken injuries, or
into consideration in the computation of moral (b) when the defendant is guilty of intentional
damages. (Kierulf v. Court of Appeals, G.R. No. tort (in this latter case, moral damages may
99343, 1997) be recovered even in loss of or damage to
property).
Moral damages is awarded only to enable the
injured party to obtain means, diversions or In culpa criminal, when the accused is guilty of
amusements that will serve to alleviate the moral physical injuries, lascivious acts, adultery or
suffering he has undergone, by reason of concubinage, illegal or arbitrary detention, illegal
defendant's culpable action and not intended to arrest, illegal search, defamation and malicious
enrich a complainant at the expense of prosecution. (Expertravel & Tours, Inc. v. CA,
defendant. (Mayo v. People, G.R. No. 91201, G.R. No. 130030, June 25, 1999)
1991)
Who may recover moral damages
III. WHEN RECOVERABLE 1. The parents of the female seduced,
abducted, raped, or abused may also
Cases when Moral Damages may be recover under No. 3.
recovered 2. Spouse, descendants, ascendants and
1. Criminal offense resulting in physical injuries brother and sisters for acts mentioned in Art.
2. Quasi-delicts causing physical injuries 309 (“Any person who shows disrespect to
3. Seduction, abduction, rape or other acts of the dead, or wrongfully interferes with a
lasciviousness funeral shall be liable to the family of the
4. Adultery and concubinage deceased for damages, material and
5. Illegal or arbitrary detention or arrest moral.”)
6. Illegal search
7. Libel, slander or other form of defamation
8. Malicious prosecution
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Siblings Not Entitled to Moral Damages for

Death of their Brother / Sister Nevertheless, AMEC's claim for moral damages
Article 2206 of the Civil Code entitles the falls under item 7 of Article 2219 of the Civil Code.
descendants, ascendants, illegitimate children, This provision expressly authorizes the recovery
and surviving spouse of the deceased passenger of moral damages in cases of libel, slander or any
to demand moral damages for mental anguish by other form of defamation. Article 2219(7) does not
reason of the death of the deceased. The qualify whether the plaintiff is a natural or juridical
omission from Article 2206 (3) of the brothers and person. Therefore, a juridical person such as a
sisters of the deceased passenger reveals the corporation can validly complain for libel or any
legislative intent to exclude them from the other form of defamation and claim for moral
recovery of moral damages for mental anguish by damages. (Filipinas Broadcasting Network v.
reason of the death of the deceased. Inclusio AMEC, G.R. No. 141994, 2005)
unius est exclusio alterius. (Sulpicio Lines, Inc., v.
Curso, G.R. No. 157009, March 17, 2010)
NOMINAL DAMAGES
General rule: The plaintiff must allege and prove
the factual basis for moral damages and its Nominal damages are adjudicated in order that a
causal relation to the defendant’s act right of the plaintiff, which has been violated or
invaded by the defendant, may be vindicated or
Exception: Moral damages may be awarded to recognized, and not for the purpose of
the victim in criminal proceedings without the indemnifying the plaintiff for any loss suffered by
need for pleading proof of the basis hereof. him
Moral damages are mandatory without need of WHEN AWARDED

allegation and proof other than the death of the Elements:
victim, owing to the fact of the commission of 1. Plaintiff has a right
murder or homicide. (Espineli v. People of the 2. Right of plaintiff is violated
Philippines, G.R. No. 179535, 2014) 3. Purpose is not to identify but vindicate or
recognize right violated
When Moral Damages Awarded Without
Evidence of Injury. NOTE: The law presumes damage although
1. Rape cases. It is assumed that the victim actual or compensatory damages are not proven.
has suffered moral injuries (People v. Iroy, They are damages in the name only and are
G.R. No. 187743, 2010); allowed simply in recognition of a technical injury
2. Murder cases. A violent death necessarily based on a violation of a legal right. Nominal
brings about emotional pain and anguish on damages cannot coexist with actual or
the part of the victim’s family (People v. compensatory damages.
Rarugal, G.R. No. 188603, 2013);
3. Where a broadcast is libelous per se, the law TEMPERATE DAMAGES
implies moral damages (FBNI v. AMEC,
G.R. No. 141994, 2005) Also called Moderate Damages.
NOTE: In Filipinas Broadcasting Network v. More than nominal but less than compensatory
AMEC, the Supreme Court held: where some pecuniary loss has been suffered but
A juridical person is generally not entitled to moral its amount can't be proved with certainty due to
damages because, unlike a natural person, it the nature of the case.
cannot experience physical suffering or such
sentiments as wounded feelings, serious anxiety, In cases where the resulting injury might be
mental anguish or moral shock. continuing and possible future complications
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directly arising from the injury, while certain to When recovered

occur are difficult to predict, temperate damages
can and should be awarded on top of actual or 1. In Criminal Offenses
compensatory damages; in such cases there is Exemplary damages as a part of the civil liability
no incompatibility between actual and temperate may be imposed when the crime was committed
damages. with one or more aggravating circumstances.
Such damages are separate from fines and shall
WHEN AWARDED be paid to the offended party.
Requisites:
1. Some pecuniary loss 2. In Quasi-Delicts
2. Loss is incapable of pecuniary estimation Exemplary damages may be granted if the
3. Must be reasonable defendant acted with gross negligence.
General Rule: Actual Damages cannot be 3. In Contracts and Quasi-Contracts

recovered with temperate damages due to the The court may award exemplary damages if the
nature of the said damages. defendant acted in a wanton, fraudulent,
reckless, oppressive, or malevolent manner.
Exception: When the injury is chronic or
recurring such as in loss of earnings. (Ramos v. In case liquidated damages have been agreed
Court of Appeals, G.R. No. 124354, 1999) upon, although no proof of loss is necessary in
order that such liquidated damages may be
LIQUIDATED DAMAGES recovered, nevertheless, before the court may
consider the question of granting exemplary in
Those agreed upon by the parties to a contract, addition to the liquidated damages, the plaintiff
to be paid in case of breach thereof must show that he would be entitled to moral,
temperate or compensatory damages were it not
When liquidated damages may be equitably for the stipulation for liquidated damages.
reduced
(a) Iniquitous or unconscionable B. DAMAGES IN CASE OF DEATH
(b) Partial or irregular performance
(a) In Crimes and Quasi-Delicts Causing
Rules governing in case of breach of contract Death
Penalty may be imposed by stipulation or agreed 1. Medical & Hospital Bills
upon by the parties in case of breach of contract. 2. Civil Indemnity/ Damages for Death
Such penalty is in the nature of liquidated under Art. 2206 (Automatically
damages. awarded)
3. Loss of earning capacity unless
EXEMPLARY DAMAGES deceased had permanent physical
disability not caused by defendant so
Imposed by way of example or correction for the that deceased had no earning capacity
public good, in addition to the moral, temperate, at time of death
liquidated to compensatory damages; Also called 4. Support, if deceased was obliged to
Corrective Damage give support (for period not more than 5
years)
NOTE: Exemplary damages cannot be recovered 5. Moral damages
as a matter of right; the court will decide whether
or not they should be adjudicated. NOTE: Civil Indemnity for death is mandatory and
a matter of course, and without need of proof
other than the fact of death as the result of the
Page 472 of 474

ATENEO CENTRAL
crime or quasi-delict, and the fact that the NOTE: Contributory Negligence also mitigates
accused was responsible therefor. the damages recoverable by the plaintiff.
However, in the Doctrine of Avoidable
Article 2206 only imposes a minimum amount for Consequences, the negligence of the plaintiff is
awards of civil indemnity, which is ₱3,000.00. The after the negligence of the defendant. In
law did not provide for a ceiling. Thus, although Contributory Negligence, the negligence of the
the minimum amount for the award cannot be plaintiff is before the negligence of the defendant.
changed, increasing the amount awarded as civil
indemnity can be validly modified and increased II. RULES
when the present circumstance warrants it. 1. Responsibility for fault or negligence under
(People vs. Jugueta G.R. No. 202124, 2016) the Art.2176 is entirely separate and distinct
from the civil liability arising from negligence
under the Penal Code. But the plaintiff
(b) Death Caused by Breach of Contract by a cannot recover damages twice for the same
Common Carrier act or omission of the defendant. (Art. 2177)
1. Indemnity for death 2. In quasi-delicts, the contributory negligence
2. Indemnity for loss of earning capacity of the plaintiff shall reduce the damages that
3. Moral Damages he may recover. (Art. 2214)
3. In contracts, quasi-contracts, and quasi-
C. GRADUATION OF DAMAGES delicts, the court may equitably mitigate the
damages under circumstances other than
I. DUTY OF INJURED PARTY the case referred to in the preceding article,
as in the following instances:
Doctrine of Avoidable Consequences (a) That the plaintiff himself has
The party suffering loss or injury must exercise contravened the terms of the contract;
the diligence of a good father of a family to (b) That the plaintiff has derived some
minimize the damages resulting from the act or benefit as a result of the contract;
omission in question. (Art.2203) (c) In cases where exemplary damages
are to be awarded, that the defendant
Burden of Defendants acted upon the advice of counsel;
It is the burden of the defendants to show (d) That the loss would have resulted in any
satisfactorily not only that the injured party could event;
have mitigated his damages but also the amount (e) That since the filing of the action, the
thereof; failing in this regard, the amount of defendant has done his best to lessen
damages awarded cannot be proportionately the plaintiff's loss or injury. (Art. 2215)
reduced. (Lim vs. Court of Appeals, G.R. No. 4. Liquidated damages, whether intended as
125817, 2002). an indemnity or a penalty, shall be equitably
reduced if they are iniquitous or
Mitigation Due to Refusal to Find Work unconscionable. (Art. 2227)
Before defendant can take advantage of the 5. There may be a compromise upon the civil
failure of plaintiff to obtain like employment, it liability arising from an offense; but such
must appear: compromise shall not extinguish the public
4. That it is like employment  action for the imposition of the legal penalty.
(Art. 2034)
5. That it is in the same locality 
6. That it is under substantially the same
MISCELLANEOUS RULES
conditions; and  
Damages that Cannot Co-Exist
7. The wages which he could have earned.   1. Nominal with actual, moral or temperate
damages
Page 473 of 474

ATENEO CENTRAL
2. Actual and liquidated damages 3. Disapproval of a party’s good and honest

intentions, as well as evading a party’s claim
Damages that Must Co-Exist for a decade.
4. Defying the orders of the Court and evasion
Exemplary with moral, temperate, liquidated of duties under the law thus dragging the
or compensatory damages case for too long.
1. One must prove that he is entitled to moral, 5. A counsel trying to resuscitate a client’s lost
temperate or compensatory damages before cause.
the court may consider the award for 6. Initiating another action even after obtaining
exemplary damages. a valid and final judgment from a competent
2. No proof of loss is necessary in order that court. (Maglana Rice and Corn Mill, Inc. v.
liquidated damages may be recovered. Tan, G.R. No. 159051, 2011).
However, before the court may consider the
question of granting exemplary in addition to General Rule: Negligence must be proven by the
the liquidated damages, the plaintiff must plaintiff in an action for damages based on quasi-
show that he would be entitled to moral, delict.
temperate or compensatory damages were
if not for the stipulation for liquidated Exceptions:
damages (a) When the doctrine of res ipsa loquitur
applies. (BJDC v. Lanuzo, G.R. No. 161151,
Circumstances when public officers may be 2014)
held liable for damages: (b) In cases involving violations of statutes,
1. When a public officer acts with fraud, bad ordinances, and/or traffic rules or
faith, or gross negligence, in which case s/he regulations, where the concept of negligence
may be held liable for a quasi-delict under per se applies;
Art. 2176 (c) When death or injury results from the
2. In cases of dereliction of duty under Art. 27, defendant’s possession of dangerous
where a public servant or employee refuses weapons or substances, except when the
or neglects, without just cause, to perform defendant proves that his possession of
his official duty; dangerous weapons or substances is
3. In cases where a public officer or employee indispensable to his business (Art. 2188);
directly or indirectly obstructs, defeats, (d) In cases involving vicarious liability, where a
violates, or in any manner impedes or presumption of negligence arises against
impairs the civil and political rights and parents, guardians, employers, the State,
liberties enumerated in Art. 32; and and teachers or heads of establishments of
4. In cases where a member of a city or arts and trades in the cases enumerated in
municipal police force refuses or fails to Art. 2180.
render aid or protection to any person in
case of danger to life or property, as ————- end of topic ————-
provided in Art. 34 (in these cases, the
member of the police force shall be primarily
liable for damages, with the city or
municipality being subsidiarily liable).
When Treble Damages are Imposed

1. Scheming to prolong litigation or efforts to
avoid the imposition of a judgment.
2. Appeal made for the sole purpose of delay.
Page 474 of 474

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PHILIPPINE COPYRIGHT

THE ATENEO CENTRAL BAR OPERATIONS 2020-2021

All Rights Reserved

This material is an intellectual creation of the Ateneo Central Bar Operations

Ad maiorem Dei gloriam.

KATHLEEN KAE Z. ENDOZO MEG V. BUENSALIDO

CARLOS ROSAURO N. MANALO

MARIA EON PEÑAFIEL MARTIN GERARD ERA JEWEL CULALA

RACHEL LEIGH COLLADO NADINE ONG JAMES ANDREW ESPIRITU

JOSEPH BILL P. QUINTOS STEFI MONIKA S. SUERO

AINA RAE L. CORTEZ CHRISTIAN GIO R. SENARLO

DONN MARIE ISABELLE BALINA MELISSA GABRIELLE P. REMULLA

YVES PETER CARLO D. MEDINA THERESE ANNE C. ESPINOSA

EUNICE A. MALAYO MEG V. BUENSALIDO

DEAN MELENCIO STA. MARIA ATTY. ROEL REFRAN

ANA BETTINA CARONONGAN MERYL CAYLA GUINTU LORD JAY-EM CUNTAPAY

ANGELICO CALDOZO GE-AN KATHLEENA SALUD

PRAMELA MENGHRAJANI ANGENINE STO. DOMINGO LARAH ANGELA REGIS

GENERAL PRINCIPLES .........................................................................................................................1

A. WHEN LAW TAKES EFFECT ..............................................................................................................1

PERSONS AND FAMILY RELATIONS ................................................................................................... 23

III. VOID DONATIONS BY THE SPOUSES ................................................................................................ 45

A. CLASSIFICATION OF PROPERTY ..................................................................................................... 87

II. NUISANCE PER ACCIDENS............................................................................................................... 132

PRESCRIPTION ............................................................................................................................... 143

A. TYPES OF PRESCRIPTION ............................................................................................................. 144

SUCCESSION .................................................................................................................................. 158

A. GENERAL PROVISIONS ................................................................................................................ 158

C. LEGAL OR INTESTATE SUCCESSION .............................................................................................. 201

OBLIGATIONS ................................................................................................................................ 224

A. GENERAL PROVISIONS ................................................................................................................ 224

CONTRACTS ................................................................................................................................... 262

A. GENERAL PROVISIONS ................................................................................................................ 262

D. INTERPRETATION OF CONTRACTS ............................................................................................... 274

NATURAL OBIGATIONS................................................................................................................... 283

ESTOPPEL ...................................................................................................................................... 284

SPECIAL CONTRACTS ...................................................................................................................... 286

IV. SPECIAL RULES FOR LEASE OF RURAL/URBAN LANDS ................................................................... 370

LAND TITLES & DEEDS .................................................................................................................... 373

A. TORRENS SYSTEM ...................................................................................................................... 373

A. PRINCIPLES ................................................................................................................................ 424

F. INTENTIONAL TORTS ................................................................................................................... 445

DAMAGES ...................................................................................................................................... 464

A. GENERAL CONSIDERATIONS ....................................................................................................... 464

A. WHEN LAW TAKES EFFECT

Compliance with the Law

C. MANDATORY OR PROHIBITORY LAWS

Exception: If the law expressly provides for the E. REPEAL OF LAWS

Kinds of rights Requisites:

Requisites of a valid waiver: (Herrera v. F. CONFLICT OF LAWS (PRIVATE

Private International Law is not a separate, a. Codification a. Customs

BASIS PrIL PIL Major Questions in Analyzing a Conflict of

national in in character 1. Jurisdiction - where can or should litigation be

transactions affected by judgments - where can the resulting judgment

municipal peaceful or which organizes the courts and defines it

tribunals forcible powers.

Service of Summons on Foreign Corporations Although venue may be changed or transferred

Effectiveness). (The Manila Hotel Proof of Written Foreign Law

Points of Contact (DRONS-SAFES-IF) (b) Acceptance of Renvoi – reference is to the

Stages of Characterization (d) Foreign Court Theory – the law to be

- Assuming that State B’s court Elements of a Conflict Of Laws Problem as to

PERSONAL LAW, NATIONALITY AND Modes of Acquisition of Nationality

closely connected (Hague Convention on

CATEGORY GOVERNING LAW No conflicts rule on essential validity of contracts