Professional Documents
Culture Documents
SUCCESSION
OBLIGATIONS
Copyright and all other relevant rights over this material are
owned jointly by the University of the Philippines College of
Law, the Faculty Editor and the Student Editorial Team.
The ownership of the work belongs to the University of the
Philippines College of Law. No part of this book shall be
reproduced or distributed without the consent of the UP
College of Law.
All rights are reserved.
CONTRACTS
PROPERTY
SUCCESSION
Table of Contents
Chapter I. Concept of Succession................59
I.
Definition of Succession (Art. 774, CC)
59
II.
Opening of Succession (Art. 777, CC) 59
III. Kinds of Succession (Art. 778, CC) ....59
IV. Heirs ....................................................60
OBLIGATIONS
Table of Contents
Chapter I. General Provisions.......................91
I.
Obligations ..........................................91
II.
Sources of Obligations ........................91
Chapter II. Nature and Effect of Obligations93
I.
Kinds of Prestations ............................93
II.
Breach of Obligation............................94
III. Fortuitous Event (Force Majeure) .......96
IV. Remedies to Creditors ........................96
V. Usurious Transactions and Rules on
Interest .........................................................97
Chapter III. Different Kinds of Obligations ..98
I.
Pure and Conditional Obligations .......98
II.
Reciprocal Obligations ......................100
III. Obligations with a Period ..................100
IV. Alternative and Facultative Obligations
101
V. Joint and Solidary Obligations ..........103
Effects of Prejudicial and Beneficial Acts
(Art.1212) ...................................................105
VI. Divisible and Indivisible Obligations..106
VII.
Oblligations with a Penal Clause ..106
Chapter IV. Extinguishment of Obligations
.......................................................................107
I.
Payment or Performance ..................107
II.
Loss or Impossibility..........................109
III. Condonation or Remission of the Debt
109
IV. Confusion or Merger of Rights ..........110
V. Compensation ...................................110
VI. Novation ............................................111
Charts: Payment & Performance ................114
CONTRACTS
Table of Contents
Chapter I. General Provisions.....................122
I.
Classification of Contracts.................122
II.
Elements of Contracts.......................123
III. Stages of Contracts...........................123
IV. Charactertics of Contracts (MARCO) 123
Chapter II. Essential Requisites .................125
I.
Consent .............................................125
II.
Object ................................................127
III. Cause ................................................127
Chapter III. Forms of Contracts ..................129
I.
Rules .................................................129
II.
Kinds of Formalities...........................129
Chapter IV. Reformation of Contracts........130
Chapter V. Interpretation of Contracts.......130
Chapter VI. Defective Contracts .................131
I.
Rescissible Contracts (Arts. 1380-1389)
131
II.
Voidable Contracts (Arts. 1390-1402)
132
III. Unenforceable Contracts (Arts. 14031408) ..........................................................133
IV. Void or Inexistent Contracts (Arts. 14091422) ..........................................................134
PROPERTY
Table of Contents
Chapter I. Definition and Classification of
Property.........................................................137
I.
Definition ...........................................137
II.
Classification .....................................137
Chapter II. Ownership ..................................144
I.
Definition ...........................................144
III. Specific Rights under the Civil Code.144
IV. Limitations on Real Right of Ownership
146
Chapter III. Accession..................................147
I.
Definition ...........................................147
II.
General Principles of Accession .......147
III. Kinds of Accession............................147
IV. Principles Governing Each Kind of
Accession...................................................147
Chapter IV. Quieting of Title........................152
I.
In General .........................................152
II.
Purpose .............................................152
III. Nature: Quasi in Rem........................152
IV. Requisites .........................................152
V. Prescription of Action ........................153
Chapter V. Co-Ownership............................154
I.
Definition ...........................................154
II.
Characteristics ..................................154
III. Difference between Co-ownership and
Joint Tenancy.............................................155
IV. Difference between Co-ownership and
Partnership.................................................155
V. Sources of Co-Ownership .................155
VI. Rights of Each Co-owner over the Thing
or Property Owned in Common .................157
VII.
Implication of Co-owners Right over
His Ideal Share ..........................................161
VIII.
Rules
on
Co-Ownership
Not
Applicable to CPG or ACP.........................161
IX. Special Rules on Ownership of Different
Stories of a House as Differentiated from
Provisions of the Condominium Act...........162
X. Extinguishment of Co-Ownership .....166
Chapter VI. Possession ...............................168
I.
Definition ...........................................168
II.
Degrees of Possession .....................169
III. Classes of Possession ......................169
IV. Cases of Possession.........................169
V. What Things May be Possessed ......170
VI. What May Not Be Possessed by Private
Persons......................................................171
VII.
Acquisition of Possession .............171
VIII.
Effects of Possession ...................173
IX. Effects of Possession in the Concept of
Owner ........................................................177
X. Presumption
in
Favor
of
the
Possessorfor Acquisitive Prescription ....178
XI. Possesion May Be Lost By ...............179
SALES
Table of Contents
Chapter I. The Contract of Sale ..................269
I.
Definition (Art 1458, CC) ...................269
II.
Elements ...........................................269
III. Stages ...............................................274
IV. Kinds of Sale .....................................275
V. Form ..................................................276
VI. Sale
Distinguished
From
Other
Contracts....................................................276
Chapter II. Obligations of the Seller and
Buyer .............................................................278
I.
Obligations of the Seller ....................278
II.
Obligations of the Buyer....................284
Chapter III. Double Sales .............................286
I.
General Rule .....................................286
II.
Requisites .........................................286
III. Rules Governing Sale of Movables,
Immovables and Unregistered Lands ........286
Chapter IV. Risk of Loss..............................288
I.
General Rule .....................................288
II.
Exceptions.........................................288
Chapter V. Documents of Title....................289
I.
In General .........................................289
II.
Negotiable Documents of Title..........289
III. Non-Negotiable Documents of Title ..289
Chapter VI. Remedies of the Seller and Buyer
.......................................................................291
I.
General Remedies (Art. 1191, CC) ...291
II.
Remedies of the Seller......................291
III. Remedies of the Buyer......................295
Chapter VII. Extinguishment of Sale ..........298
I.
In General .........................................298
II.
Conventional Redemption.................298
III. Equitable Mortgage ...........................299
IV. Legal Redemption .............................300
Chapter VIII. Philippine Bulk Sales Law (Act
3952) ..............................................................303
I.
Purpose .............................................303
II.
Coverage...........................................303
III. Duty of Seller.....................................303
IV. Effect of non-compliance...................304
CREDIT TRANSACTIONS
Table of Contents
Chapter I. General Principles ......................307
I.
Types of Credit Transactions ............307
II.
Security .............................................307
III. Bailment ............................................307
Chapter II. Loan (Arts. 1933-1961, CC).......309
I.
Definition ...........................................309
II.
Characteristics of a Loan ..................309
III. Kinds of Loan: In General .................309
IV. Commodatum....................................309
V. Obligations
of
the
Bailee
in
Commodatum ............................................310
VI. Obligations
of
the
Bailor
in
Commodatum ............................................311
VII.
Mutuum or Simple Loan................311
VIII.
Interests ........................................312
IX. The Usury Law ..................................312
Chapter III. Deposit ......................................314
I.
Definition ...........................................314
II.
Kinds of Deposit ................................314
III. Characteristics of Deposit .................314
IV. Deposit Distinguished From Mutuum
and Commodatum .....................................314
V. Obligations of the Depositary............314
VI. Obligations of the Depositor..............317
VII.
Extinguishment of Deposit (Art. 1995)
317
VIII.
Necessary Deposit........................317
IX. Judicial Deposit .................................318
Chapter IV. Guaranty ...................................319
I.
Definition ...........................................319
II.
Characteristics ..................................319
III. Classification .....................................319
IV. Rules Governing Guaranty ...............319
V. Guaranty Distinguished from Others.322
VI. The Guarantor (Arts. 2056-2057)......322
VII.
Effects of Guaranty .......................322
VIII.
Extinguishment of Guaranty .........325
Chapter V. Legal and Judicial Bonds.........326
Chapter VI. Suretyship.................................327
Chapter VII. Pledge, Mortgage, Antichresis
.......................................................................328
I.
Essential Requisites Common to Pledge
and Mortgage (Art. 2085)...........................328
II.
Pledge ...............................................329
III. Mortgage ...........................................332
IV. Foreclosure of Mortgage (Art. 2085).334
V. Antichresis.........................................336
VI. Chattel Mortgage...............................336
AGENCY
Table of Contents
Chapter I. Nature, Form, and Kinds of Agency
.......................................................................341
I.
Definition [Art. 1868, CC] ..................341
II.
Purpose .............................................341
III. Characteristics [CNPPBF].................342
IV. Essential Elements............................342
V. Determination of Existence of Agency
342
VI. Agency v Similar Contracts ...............343
VII.
Kinds .............................................344
Chapter II. Obligations of the Agent...........348
I.
To Carry Out the Agency ..................348
III. To Advance the Necessary Funds [Art.
1886, CC]...................................................349
IV. To Act in Accordance with Principals
Instructions.................................................349
V. To Prefer Interest of Principal Over
Personal Interest........................................349
VI. To Render Accounts and Deliver Things
Received by Virtue of the Agency..............349
VII.
To Be Responsible for Substitutes350
VIII.
To Pay Interest .............................350
IX. To Answer for His Negligence or Fraud
[Art. 1909, CC] ...........................................350
X. Special
Obligations
of
Factor/
Commission Agents ...................................350
Chapter III. Liabilities of the Agent .............352
I.
Liability to Third Persons...................352
II.
Liability to the Principal .....................352
III. Liability of Two or More Agents.........353
Chapter IV. Obligations of the Principal ...354
I.
To Comply with the obligations
contracted by the agent .............................354
II.
To Advance the Necessary Sums and
Reimburse the Agent .................................355
III. To Indemnify the Agent for Damages355
IV. To Pay the Agents Compensation ...356
V. To Be Solidarily Liable ......................356
Chapter V. Extinguishment of Agency......357
Extinguishment of Agency [EDWARD] ......357
I.
Expiration of the period for which it was
constituted..................................................357
II.
Death,
civil
interdiction,
insanity,
insolvency ..................................................357
III. Withdrawal of the agent ....................357
IV. Accomplishment of the object of the
agency .......................................................357
V. Revocation ........................................357
VI. Dissolution of the firm/corp. Which
entrusted/accepted the agency..................358
PARTNERSHIP
Table of Contents
Chapter I. Nature, Creation, Kinds of
Partnership ...................................................361
I.
Essential Features ............................361
II.
Characteristics ..................................362
III. Distinctions ........................................362
IV. Rules to Determine Existence...........363
V. How Partnership is Formed ..............363
VI. Partnership Term ..............................363
VII.
Kinds of Partnerships....................363
Chapter
II.
Obligations
of
the
Partnership/Partners Among Themselves 366
CRRAMP-LS..............................................366
I.
Make Contributions as Promised ......366
III. Manage the Partnership....................367
IV. Render Full Information.....................368
V. Account for benefits ..........................368
VI. Reimburse expenses ........................368
VII.
Liable for Partnership Contracts ...368
VIII.
Solidarily Liable with Partnership.369
Chapter
III.
Obligations
of
the
Partnership/Partners as to Third Persons.370
LANN .........................................................370
I.
Operate Under a Firm Name (Art. 1815,
CC) 370
II.
Bound by Partnership Admission......370
III. Bound by Notice Partner ...................370
IV. Liable for Acts of the Partnership......370
Chapter IV. Rights of Partners ...................371
I.
Share in Losses and Profits ..............371
II.
Associate Another in His Interest......371
III. Access to Partnership Books ............371
IV. Obtain Formal Account .....................371
V. Property Rights .................................371
VI. Convery Real Property (Art. 1819, CC)
372
Chapter V. Rights of the Partnership ........374
I.
Acquire Immovables..........................374
II.
Preference of Creditors .....................374
Chapter VI. Dissolution and Winding Up ..375
I.
Definitions .........................................375
II.
Causes for Dissolution ......................375
III. Consequences of Dissolution ...........375
IV. Partners Liability...............................376
Chapter VII.
Rights of Partners Upon
Dissolution....................................................377
I.
Right to Wind Up ...............................377
II.
Right to Damages for or to Continue
Business on Wrongful Dissolution .............377
TABLE of CONTENTS
2
PERSONS & FAMILY RELATIONS
Anisah Azis
Karen Torres
Lead Writer
Dana Crisostomo
Jaimmie Hans
Nathan Pico
Zharmai Garcia
Rowena Yang
Margie Lim
Jiselle Compuesto
Mickey Chatto
Eden Mopia
Faye Celso
Mark Oyales
Camille Umali
JC Punongbayan
Mary Beley
Aboy Bayalan
Welga Carrasco
Joan Batimana
Writers
CIVIL LAW
Kristine Bongcaron
Patricia Tobias
Subject Editor
ACADEMICS COMMITTEE
Kristine Bongcaron
Michelle Dy
Patrich Leccio
Editors-in-Chief
LECTURES COMMITTEE
Michelle Arias
Camille Maranan
Angela Sandalo
Heads
Katz Manzano Mary Rose Beley
Sam Nuez Krizel Malabanan
Arianne Cerezo Marcrese Banaag
Volunteers
LOGISTICS
Charisse Mendoza
SECRETARIAT COMMITTEE
Jill Hernandez
Head
Loraine Mendoza Faye Celso
Mary Mendoza Joie Bajo
Members
II.
I.
Concept of Persons
Personality is the quality derived from
being a person; it is an attribute of
persons.
Characteristics
1. It is not a being, but a quality of certain
beings.
1. It is not a physical element, but a juridical
concept.
2. It is not an object of contract, or of
possession, and cannot be impaired by
agreement.
2. It is a matter of public interest.
Article 37, Civil Code. Juridical capacity, which is
the fitness to be the subject of legal relations, is
inherent in every natural person and is lost only
through death. Capacity to act, which is the power
to do acts with legal effect, is acquired and may be
lost.
3
PERSONS & FAMILY RELATIONS
Complete
respiration
independent life
test/sign
of
Civil
personality
is
5.
6.
Age
Both under 15
Both above 60
One under 15, the
other above 60
Both over 15 and
under 60; different
sexes
Both over 15 and
under 60; same sex
One under 15 or
over 60, the other
between those ages
Presumed Survivor
Older
Younger
One under 15
Male
Older
One between 15 and 60
B. Juridical Persons
Juridical Persons (Art 44, Civil Code)
1. The State and its Political subdivisions;
2. Other Corporations, Institutions and Entities
for public interest or purpose, created by
law;
3. Corporations,
Partnerships,
and
Associations for private interest or purpose
to which the law grants a juridical
personality.
Governing Laws (Art 45, Civil Code)
Juridical Person
1. State
2.
3.
4.
5.
Political
Subdivision
Public
Corporation
Private
Corporation
Partnerships
Governed by
Constitution
(defines
organization and limits
rights vis--vis citizens)
Charter creating them
its
its
1. Minority
Corporation Code, Articles of
Incorporation and By-Laws
Stipulations of the parties and
suppletorily by the general
provisions on partnership of
the Civil Code
Rules
1. Juridical persons may acquire and
possess property of all kinds, incur
obligations, and bring civil or criminal
actions (Art. 46, CC)
2. Upon dissolution of corporations or
institutions and other entities for public
interest, their property and assets shall be
disposed of in pursuance of the law or
charter creating them. (Art. 47, CC)
B. Restrictions
Article 38, Civil Code. Minority, insanity or
imbecility, the state of being a deaf-mute, prodigality
and civil interdiction are mere restrictions on
capacity to act, and do not exempt the incapacitated
person from certain obligations, as when the latter
arise from his acts or from property relations, such
as easements.
5
PERSONS & FAMILY RELATIONS
c.
4. Prodigality
Martinez v. Martinez, (1902)
A spendthrift or a prodigal is a person,
who, by excessive drinking, gambling,
idleness or debauchery of any kind shall
so spend, waste or lessen his estate as
to expose himself or his family to want
or suffering. The acts of prodigality
must show a morbid state of mind.
Note: It is not the circumstance of
prodigality, but the fact of being under
guardianship that restricts capacity to
act.
2. Insanity
Insanity includes many forms of mental
disease, either inherited or acquired. A
person may not be insane but only mentally
deficient
(idiocy,
imbecility,
feeblemindedness).
Effect on Contracts
a. incapacity to give consent to a
contract [Art 1327(2), CC]
b. contracts entered into during lucid
intervals are valid (Art. 1328, CC)
c. restitution of benefits (Art 1399, CC)
Effect on Crimes
a. General rule: EXEMPTED from criminal
liability
b. Exception: acted during lucid interval
Effect on Marriage
a. may be annulled if either party was of
unsound mind unless the such party
after coming to reason, freely cohabited
with the other [Art 45(2), FC]
b. action for annulment of marriage must
be filed by the sane spouse who had no
knowledge of the others insanity; or by
any relative/guardian of the insane; or
by the insane spouse during a lucid
interval or after regaining sanity [Art
47(2), FC]
5. Civil Interdiction
a. It is an accessory penalty imposed
upon persons who are sentenced to a
principal penalty not lower than
reclusion temporal (article 41, Revised
Penal Code).
b. offender is deprived of rights of
parental authority, or guardianship, of
marital authority, of the right to manage
his property and of the right to dispose
of such (Art 34, RPC)
c. for the validity of marriage settlements,
the participation of the guardian shall
be indispensible (Art 123, CC)
6. Family Relations
a. justifying circumstance if acted in
defense of person/rights of spouse,
ascendants,
descendants,
brothers/sisters, and other relatives up
th
to the 4 civil degree [Art 11(2), RPC]
b. mitigating circumstance if acted in the
immediate vindication of a grave
offense/felony committed against his
spouse, ascendants or relatives of the
same civil degree [Art 12(5), RPC]
c. incestuous and void marriages:
between
ascendants
and
descendants of any degree;
between brothers and sisters,
whether full or half-blood. (Art 37,
FC)
d. donations/grants
of
gratuitous
advantage between spouses during
the marriage shall be VOID, except
moderate gifts during family occasions
(Art 87, FC)
6
PERSONS & FAMILY RELATIONS
Article 124, FC
a. administration and enjoyment of the
CPG shall belong to both spouses
jointly
b. in case of disagreement, husbands
decision shall prevail, subject to
recourse to the court by the wife for
proper remedy
c. if one spouse is incapacitated/unable
to administer, sole powers of
administration may be assumed by the
other spouse.
d. General Rule: This power does not
include disposition/encumbrance.
Exception: judicial authority or
written consent of other spouse
7
PERSONS & FAMILY RELATIONS
I.
1. Domicile of Origin
Domicile of parents of a person at the
time he was born.
2. Domicile of Choice
Domicile chosen by a person, changing
his domicile of origin.
A 3rd requisite is necessary intention
not to return to ones domicile as his
permanent place.
II. Domicile
For Natural Persons
the place of their habitual residence (Art.
50, CC).
For Natural Persons
the place where their legal representation
is established, or where they exercise their
primary functions, unless there is a law or
other provision that fixes the domicile (Art.
51, CC).
Domicile vs. Residence
While domicile is permanent (there is intent
to remain), residence is temporary and may
be changed anytime (there is no necessary
intent to remain).
________________
B. Kinds of Domicile
(animus
8
PERSONS AND FAMILY RELATIONS
I.
I.
II.
9
PERSONS AND FAMILY RELATIONS
Defect
Absence
VOID
- marriage
entered into by
a person <18
(Art 35 (1))
- marriage
entered into by
persons of the
same sex
(Jones
v
Hallahan)
of
Essential
Defect
VOIDABLE
- consent
of
either
party
was obtained
through fraud,
force,
intimidation or
undue
influence
(Art 45 (3)
(4)FC)
- marriage
contracted
through mistake
of
one
contracting
party as to the
identity of the
other
(Art 35 (5))
Effect
Illustration
Absence
VOID
Marriage is
void
when
solemnized by a
priest not duly
authorized by his
Church
to
solemnize
marriage.
(Art 7 FC)
Irregularity
No effect on
validity but party
responsible will
be liable.
lack of valid
notification
of
both
parties
desiring
a
ceremony in a
remote
place
was held to be
only
a
mere
IRREGULARITY
(Navarro
vs.
Domagtoy 1996)
Marriage License
1. Marriages Exempt from marriage license
requirement (AREC)
a. Marriage in Articulo mortis (Art. 27, FC)
b. Marriage in Remote and inaccessible
places (Art. 28, FC)
c. Marriages by Muslims and Ethnic
cultural minorities provided they are
solemnized in accordance with their
customs, rites or practices. (Art. 33, FC)
d. Marriage by parties who have Cohabited
for at least 5 years without any legal
impediment. (Art. 34, FC, Ninal v
Badayog (2000))
2. Absence & Irregularity of Marriage License
Effect
Illustration
Absence
VOID
Issuance
of the Civil
Registrar of a
CERTIFICATE
Irregularity
No
effect
on
validity but party
responsible will be
liable.
mere
IRREGULARITIES
in the marriage
license, such as a
10
PERSONS AND FAMILY RELATIONS
Absence
DUE SEARCH
AND
INABILITY TO
FIND
the
application of a
marriage
license means
its
absence,
thus rendering
the
marriage
VOID.
(Republic
v
CA)
Before a
marriage can
be solemnized,
a
valid
marriage
license MUST
FIRST
BE
PRESENTED,
otherwise the
marriage
is
VOID. (Moreno
v Bernabe)
11
PERSONS AND FAMILY RELATIONS
12
PERSONS AND FAMILY RELATIONS
GROUNDS
PERIOD TO FILE ACTION
DEFENSE
III. EFFECTS OF NULLITY
I.
OR
RAISE
Grounds
c.
13
PERSONS AND FAMILY RELATIONS
C. Article 37 (Incestuous)
1. Between ascendants and descendants of
any degree, legitimate or illegitimate
2. Between brothers and sisters, whether of
the full or half blood, legitimate or illegitimate
14
PERSONS AND FAMILY RELATIONS
Note:
Although seven years is required for the
presumption of death of an absentee in the
Civil Code, Art. 41 of the Family Code
makes an exception for the purpose of
remarriage by limiting such requirement to
four years.
Art. 41 also limits the required four years in
Art. 391 for absence under exceptional
circumstances to only two years.
who
G. Article 53 (Non-Recording)
Subsequent marriage of spouses where the
requirements of recording under Art. 52 for
void marriages shall not have been complied
with
H. Article 40
Nullity)
(Judicial
Declaration
of
II. Period to
Defense
File
Action
or
Raise
15
PERSONS AND FAMILY RELATIONS
16
PERSONS AND FAMILY RELATIONS
17
PERSONS AND FAMILY RELATIONS
consummating
the
marriage
(impotence; this is different from
sterility).
I.
I.
TOLENTINO
Action to Annul: action in rem, concerns status
of parties; res is relation bet parties or marriage
tie; jurisdiction depends on nationality or
domicile not the place of celebration
18
PERSONS AND FAMILY RELATIONS
Art. 45 STD
Ground for annulment
Art. 46 STD
The STD is a type of fraud
which is a ground for
annulment
Must be concealed
Need not be serious nor
incurable
It is the concealment that
gives rise to the annulment
19
PERSONS AND FAMILY RELATIONS
m.
n.
o.
p.
20
PERSONS AND FAMILY RELATIONS
Fraud
Injured
party
(defrauded party)
Injured party
Impotence
Healthy party
STD
Healthy party
C. Marriages
Not
Subject
Ratification/Convalidation
Prescription
(Art. 47)
1.
5
years
after
attaining 21.
2. Before child reaches
21.
1. Any time before the
death of either party
Ratification
(Art. 45)
Free cohabitation after
attaining age of 21.
Free cohabitation of
insane
party
after
insane party comes to
reason
to
General Rule
The subsequent marriage remains valid.
Exception
It is automatically terminated by the
recording of the affidavit of reappearance of
the absent spouse.
Exception to the Exception
If there is a judgment annulling the previous
marriage or declaring it void ab initio. (Art.
42, FC)
TOLENTINO
Status of Subsequent Marriage: generally
considered bigamous & void EXCEPT par. 2 of
this article; good faith w/o falling under par. 2 will
render marriage VOID
When Voidable: must act in GOOD FAITH and
1. absent spouse not heard from 7 consecutive
yrs
2. although absent for less than 7 yrs,
generally considered dead
3. presumed to be dead after 4 yrs when
occurrence of death in A391
Judicial Declaration Unnecessary: purpose of
validity of marriage, missing spouse need not be
judicially declared an absentee, enough required
21
PERSONS AND FAMILY RELATIONS
Ground
(Art. 45)
Lack of parental consent
(includes
earthquakes,
fires,
explosions,
dangerous
4 years under
normal
circumstances; 2
years under special
circumstances
Civil Code
Absent for at least 7
years; 4 years
under special
circumstances
As to
In order to remarry, Declaration of
remarriage summary
presumptive death
proceeding is
is not necessary
necessary
As to who
can
institute
the action
As to
Subsequent
effect on marriage is
subsequen automatically
t marriage terminated by the
recording of an
affidavit of
reappearance of the
absent spouse
As to
ground
Upon
reappearance,
judicial proceeding
is necessary to
declare marriage
null and void
Actions/Decree
22
PERSONS AND FAMILY RELATIONS
Nature
Convalidation
Effect on property
Legitimacy of children
Voidable Marriage
VALID until annulled by court
CAN be convalidated by
prescription or free cohabitation
ACP exists unless another
system is instituted through
marriage settlement
Children are LEGITIMATE if
conceived before decree of
annulment
How to impugn
Can
only
be
DIRECTLY (there
Annulment Decree)
Legal Separation
causes
after
the
celebration of marriage
does not terminate
marital bond
marital relations can
resume
upon
reconciliation
VI. Jurisdiction
Tamano v. Ortiz, (1998)
PD No. 1083 (Code of Muslim Personal
Laws of the Philippines) does not provide for
a situation where the parties were married
both in civil and Muslim rites. Consequently,
the shari'a courts are not vested with original
and exclusive jurisdiction when it comes to
marriages celebrated under both civil and
Muslim laws. Hence, the Regional Trial
Courts have jurisdiction over such cases.
attacked
must be
Void Marriage
INEXISTENT from the beginning
CANNOT be convalidated
No Community Property, only Coownership
General
rule:
Children
are
ILLEGITIMATE (Art. 165, FC)
Exception: In void marriages by
reason of psychological incapacity
(Art. 36) or non-partition of
properties in a previous marriage
(Art. 53), children are considered
LEGITIMATE
May be attacked DIRECTLY or
COLLATERALLY,
except
for
purpose of remarriage (there must
be Judicial Declaration of Nullity)
May still be impugned after death of
parties
23
PERSONS AND FAMILY RELATIONS
I.
(asked in 75, 76, 79, 80, 82, 89, 94, 96, 97,
02, 03, 06, and 07 bar exams)
(Art. 55, FC) [V A P I D H B I L A]
Note: The grounds for legal separation are
exclusive.
V
4.
Final
judgment
sentencing
respondent to imprisonment of more
than 6 years, even if pardoned
(executive pardon, not pardon from
offended party).
c.
legal
separation,
whether
concealed or not.
Drug
addiction
or
habitual
alcoholism may be supervening.
6. Lesbianism or homosexuality of
respondent.
Same as rules on drug addiction
7. Contracting by respondent of a
subsequent
bigamous
marriage,
whether in the Philippines of abroad.
24
PERSONS AND FAMILY RELATIONS
II. Defenses
Grounds for denying legal separation (Art.
56, FC) [4CMPRD]
1. Condonation by aggrieved party
2. Consent by aggrieved party to the
commission of the offense
3. Connivance between parties in the
commission of the offense
4. Mutual guilt or Recrimination between
spouses in the commission of any ground
for legal separation
5. Collusion between parties to obtain decree
of legal separation
6. Prescription of action for legal separation
(Art. 57: 5 years from occurrence of the
cause of action)
7. Reconciliation of parties during pendency
of action (Art. 66 par.1)
8. Death of either party during pendency of
action (Lapuz-Sy v Eufemio, supra)
B. Reconciliation Period
Action cannot be tried before six months have
elapsed from the filing of the petition (Art. 58.
FC)
Note: without prejudice to judicial determination
of custody of children, alimony, and support
pendente lite
C. Attempts on Reconciliation
Action cannot be tried unless the court has
attempted to reconcile the spouses, and
determined
that
despite
such
efforts,
reconciliation is highly improbable (Art. 59, FC)
D. Confession
No decree of legal separation shall be based
upon a stipulation of facts or a confession of
judgment (Art. 60, par. 1. FC)
E. Collusion
The court shall assign the prosecuting attorney
or fiscal to make sure that there is no collusion
between the parties, and that evidence is not
fabricated or suppressed (Art. 60, par. 2, FC)
V. Effects
of
Decree
Separation (LACIDIMS)
for
Legal
25
PERSONS AND FAMILY RELATIONS
VI. Reconciliation
A. How Done
Should the spouses reconcile, they should file a
corresponding joint manifestation under oath
of such reconciliation. (Art. 65, FC)
B. Effects of Reconciliation
1. Proceedings for legal separation shall be
terminated at whatever stage. (Art. 66, FC)
2. If there is a final decree of legal separation,
it shall be set aside. (Art. 66, FC)
3. The separation of property and forfeiture of
share of guilty spouse shall subsist, unless
the spouses agree to revive their former
property regime or to institute another
property regime. ( Art. 66 cf. Art. 67, FC)
4. Joint custody of children is restored.
5. The right to intestate succession by guilty
spouse from innocent spouse is restored.
The right to testamentary succession
depends on the will of the innocent spouse.
VII. Divorce
(asked in 87, 90, 96, 97, 99, 02, 06 bar
exams)
General Rule
Divorce is not allowed in the Philippines and
even for Filipinos abroad.
Exception
Foreign and Muslim divorces.
Foreign Divorces (asked in 09 bar exam)
Art. 15, Civil Code. Laws relating to family rights and
duties, or to the status, condition and legal capacity of
the persons are binding upon citizens of the
Philippines, even though living abroad.
26
PERSONS AND FAMILY RELATIONS
Muslim Divorces
Presidential Decree 1083 (Code of Muslim
Personal Laws)
VIII.
De Facto Separation
27
PERSONS AND FAMILY RELATIONS
I.
Widows
A widow may use the deceased husbands
surname as though he were still living. (Art.
373, CC)
Mistresses
The Supreme Court allowed the mistress to
use her live-in partners name, since
everyone already knew that she was a
mistress, so as to avoid confusion. (Legamia
v. IAC (1984))
Divorcees
The Supreme Court allowed the mistress to
use her live-in partners name, since
everyone already knew that she was a
mistress, so as to avoid confusion.
(Tolentino v. CA (1988))
28
PERSONS AND FAMILY RELATIONS
I.
General Provisions
29
PERSONS AND FAMILY RELATIONS
ORDINARY
DONATIONS
Express
acceptance
necessary
DONATIONS PROPTER
NUPTIAS
May be made by minors
(Art. 78)
May
include
future
property
If present property is
donated and property is
not absolute community,
limited to 1/5 (Art. 84)
Grounds for revocation In Art. 86
ORDINARY
DONATIONS
Cannot be made by
minors
Cannot include future
property
No limit to donation of
present property provided
legitimes
are
not
impaired
Grounds for revocation in donation laws
Rules
1. Before Marriage
General Rule:
Future spouses cannot donate to each
other more than 1/5 of their present
property (excess shall be considered
void) (Art. 84, FC)
Exception:
If they are governed by ACP
2. During Marriage
General Rule:
Spouses cannot donate to each other,
directly or indirectly (donations made by
spouses to each other during the
marriage are void) (Art. 87, FC)
Exception:
Moderate gifts on the occasion of any
family rejoicing.
Donation
of
Property
Encumbrances
Subject
to
30
PERSONS AND FAMILY RELATIONS
c.
31
PERSONS AND FAMILY RELATIONS
2.
3.
4.
5.
6.
7.
8.
9.
10.
D. Administration,
Ownership
Disposition of ACP
and
Administration of property
Belongs to both spouses jointly. If they disagree
the husbands decision prevails. However, the
wife has five years from the date of the decision
to go to court for recourse. Otherwise, it is
E. Dissolution of ACP
ACP terminates upon (Art. 99, FC)
1. Death of either spouse follow rules in Art.
103
2. Legal Separation follow rules in Arts. 63
and 64
3. Annulment or judicial declaration of nullity
follow rules in Arts. 50 to 52
4. Judicial separation of property during
marriage follow rules in Arts. 134 to 138
Rules on De Facto Separation (ART. 100,
FC)
De facto separation does not affect the ACP;
EXCEPT that:
1. Spouse who leaves the conjugal home
without just cause shall not be entitled to
support. He/She, however, is still required to
support the other spouse and the family.
2. If consent is necessary for transaction but is
withheld
or
otherwise
unobtainable,
32
PERSONS AND FAMILY RELATIONS
3.
4.
5.
6.
remains
in
their
33
PERSONS AND FAMILY RELATIONS
34
1. Existence
2. Purpose,
duration,
rules
3. Profits
and
4. Equality
5. Personality
6. Commencement
7. Regulation
8. Purpose
9. Causes
dissolution
for
1. Property acquired
before marriage.
2. Property acquired
during marriage
3. Upon dissolution
of marriage
4. Basis
5. Liquidation
Ordinary partnership
Comes into existence according to
agreement between parties
Determined by will of partners.
CPG
Each spouse retains his/her property;
only fruits part of conjugal property
Part of conjugal property
ACP
Properties become part of community
property
Becomes community property
1. Art 109
Directly
acquired or
originally
exclusive
Property
by
substitution
(OGRE)
(1) Property brought into marriage by
each spouse as his/her own
(2) Property acquired by either spouse
during the marriage by gratuitous title
(3) Property acquired by right of
redemption, by barter, or by exchange
with property belonging to either spouse
(4) Property purchased with exclusive
money of either spouse
Spouses
retain
the
ownership,
possession,
administration
and
enjoyment of their exclusive properties
(Art 110, par 1.)
Possession by one spouse of the
separate property the other spouse does
not affect ownership
Transfer of administration of a spouses
exclusive property to the other spouse
must be made in a public instrument
recorded in the registry of property of
the place where the property is located
(Art 110, FC) but ownership is not
conferred to the administrator spouse
(Rodriguez v. de la Cruz, 1907).
E. Rules
1. presumption that property is conjugal: all
property acquired during the marriage,
whether made, contracted, or registered in
the name of one spouse, are presumed
conjugal unless the contrary is proven (Art.
116, FC).
As a condition sine qua non for the
operation of the presumption in favor of
the conjugal partnership the party who
invokes the presumption must first prove
that the property was acquired during
the marriage. (Acabal v. Acabal, 2005)
"X married to Y" as it appears in land
titles is not conclusive of the conjugal
status of the property (Jocson v. CA,
1989).
Exclusive property brought into a
second marriage remains exclusive
property of that spouse under CPG
regime; ACP is not retroactive for
marriages celebrated under the Civil
Code (Francisco v. CA, 1998).
2. property purchased by installment (paid
partly with conjugal funds and partly with
exclusive funds) Art. 118:
conjugal property if full ownership was
vested during the marriage CPG shall
reimburse the owner-spouse
exclusive property if full ownership was
vested before the marriage ownerspouse shall reimburse the CPG
Exclusive property brought into a second
marriage remains exclusive property under
CPG regime. ACP is not retroactive for
marriages celebrated under the Civil Code
(Castillo v. Pasco, 1964).
Even if the installment is completed after the
marriage, the property is exclusive if
35
PERSONS AND FAMILY RELATIONS
36
Taxes
&
Expenses
(4)
maintenance
of
CPG
properties
Support
(5)
mere
preservation
of
all
exclusive
(6) education
of spouses,
absolute
(1) support of
spouses and
common
children
benefit
of
the
family
(7)
antenuptial
debts
for
the
benefit of the
Family
Properties
(9) litigation
expenses,
unless
the
suit
is
groundless
(8) education
of common
children, only
for
value
of
donation
I.
37
PERSONS AND FAMILY RELATIONS
f.
V. Separation
Marriage
of
Properties
During
38
(2)
Reappearance
absentee spouse
of
regime. No voluntary
separation of property
may
thereafter be
granted.
B. Rules
C. Effects of separation
between spouses
of
property
Art. 148
When a man and a woman who are capacitated to marry each other, live
exclusively with each other as husband and wife without the benefit of
marriage or under a void marriage, their wages and salaries shall be
owned by them in equal shares and the property acquired by both of
them through their work or industry shall be governed by the rules on coownership.
39
PERSONS AND FAMILY RELATIONS
Applicability
Art.148
1.
2.
3.
4.
5.
6.
7.
Remains exclusive
Owned in common in
respective contribution
Properties acquired
while
living
together
Forfeiture
proportion
to
40
PERSONS AND FAMILY RELATIONS
II.
I.
FAMILY
A. FAMILY RELATIONS
B. GENERAL RULE
C. EXCEPTIONS
FAMILY HOME
A. GENERAL RULE
B. EXCEPTIONS
C. BENEFICIARIES OF THE FAMILY HOME
D. REQUISITES FOR CREDITOR TO AVAIL
OF THE RIGHT UNDER ARTICLE 160
Family
B. General Rule
For a suit between members of the same family
to prosper, the following are required:
1. Earnest efforts towards a compromise have
been made
2. Such efforts have failed
3. Such earnest efforts and the fact of failure
must be alleged
Note: The case will be dismissed if it is shown
that no such efforts were made.
C. Exceptions
(VJLAFF)
to
the
general
A. General Rule
The family home is exempt from (EFA):
1. Execution
2. Forced sale
3. Attachment
rule
1.
2.
3.
4.
5.
6.
those
41
PERSONS AND FAMILY RELATIONS
42
PERSONS AND FAMILY RELATIONS
KINDS OF FILIATION
IMPUGNING LEGITIMACY
PROOF OF FILIATION
LEGITIMATION
RIGHTS OF LEGITIMATE OR ILLEGITIMATE
CHILDREN
I.
Kinds of Filiation
43
PERSONS AND FAMILY RELATIONS
A. Rules
Legitimate or illegitimate children may prove
their filiation in the same way and on the same
evidence.
General Rule: They may only prove their status
using the following pieces of evidence:
1.
2.
3.
4.
44
PERSONS AND FAMILY RELATIONS
in
itself
a
consummated
act
of
acknowledgement of the child, and no
further court action is required.
Gono-Javier vs. Court of Appeals, (1994)
Mere possession of status as an illegitimate
child does not make a recognized
illegitimate child but is only a ground for
bringing an action to compel judicial
recognition by the assumed parent.
Herrera v. Alba, (2005)
In assessing the probative value of DNA
evidence, therefore, courts should consider,
among other things, the following data:
a. How the samples were collected,
b. How they were handled,
c. The possibility of contamination of the
d.
e.
f.
samples,
The procedure followed
samples,
Whether the proper
procedures were followed
tests,
and the qualification of
conducted the tests.
in analyzing the
standards and
in conducting the
a.
b.
a.
b.
2.
3. Support
45
PERSONS AND FAMILY RELATIONS
R.A. 8552
A. WHO MAY ADOPT
B. WHO MAY BE ADOPTED
II. ADOPTION PROCEDURE UNDER RA 8552
IRR
A. PRE-ADOPTION SERVICES
B. EFFECTS OF ADOPTION
C. RESCISSION OF ADOPTION
D. EFFECTS OF RESCISSION
E. RECTIFICATION OF SIMULATED BIRTHS
III. R.A. 8043: INTER-COUNTRY ADOPTION ACT
OF 1995
A. WHO MAY ADOPT
B. WHO MAY BE ADOPTED
C. WHERE TO FILE APPLICATION
D. DOCUMENTS
TO
SUPPORT
APPLICATION
E. INTER-COUNTRY ADOPTION BOARD
F. TRIAL CUSTODY
ADOPTION
(Asked in 76, 77, 85, 94, 95, 96, 00, 01, 03,
04, 05, 07, 08 bar exams)
LEGITIMATION
The law merely
makes legal what
exists by nature
Persons
affected
Only
children
Procedure
Extrajudicial acts of
parents
Only
by
both
parents
Who
applies
Effect
I.
natural
ADOPTION
The law merely
creates
by
fiction
a
relation which
did not in fact
exist
Generally
applies
to
strangers
Always
by
judicial decree
Husband and
wife
adopt
jointly
with
exceptions
(RA8552)
Creates a rel.
only between
the child and
the
adopting
parents
46
PERSONS AND FAMILY RELATIONS
Adopter
Inquiry at DSWD
Attendance of DSWD
Adoption
Fora
and
Seminars
(include
counseling)
Missing Child
Tri-Media
(2) Declaration
Abandonment
(3) Declaration
Availability
Adoption
Case Study Report
in
47
of
of
for
Application for Adoption
Case Study Report
Matching
Placement
Supervised Trial Custody
Home Study Report
Recommendation
and
Consent
Petition for Adoption
Adoption Decree
A. Pre-Adoption Services
The DSWD shall provide for the following
services:
1. Counseling services for the biological
parents,
prospective
parents,
and
prospective adoptee
2. Exhaust all efforts to locate the biological
parents, if unknown
48
PERSONS AND FAMILY RELATIONS
49
PERSONS AND FAMILY RELATIONS
50
PERSONS AND FAMILY RELATIONS
GENERAL PROVISIONS
A. KINDS
B. CHARACTERISTICS
C. HOW SUPPORT IS GIVEN
II. WHO ARE OBLIGED TO SUPPORT EACH
OTHER
III. PROPERTIES ANSWERABLE FOR SUPPORT
IV. ORDER OF SUPPORT
A. IF THERE ARE MULTIPLE OBLIGORS
B. IF THERE ARE MULTIPLE RECIPIENTS
I.
Support
A. Kinds of Support
1. Legal that which is required to be given by
law
2. Judicial that which is required to be given
by court order whether pendente lite or in a
final judgment
3. Voluntary or Conventional by agreement
51
PERSONS AND FAMILY RELATIONS
Spouses
Descendants, nearest in degree
Ascendants, nearest in degree
Brothers and Sisters
52
PERSONS AND FAMILY RELATIONS
PARENTAL
AUTHORITY
GENERAL
PROVISIONS
A. CUSTODY
B. OTHER RIGHTS AND DUTIES IN
EXERCISE OF PARENTAL AUTHORITY
II. SUBSTITUTE AND SPECIAL PARENTAL
AUTHORITY
III. SUSPENSION
OR
TERMINATION
OF
PARENTAL AUTHORITY
IV. RIGHTS AND DUTIES OF CHILDREN
I.
Parental Authority
cannot
be
A. Custody
Parental Preference Rule
The natural parents, who are of good character
and who can reasonably provide for the child,
are ordinarily entitled to custody as against all
persons (Santos v CA, 1995).
Who exercises authority in cases of death,
absence, remarriage, or separation of
parents
In case one parent is absent or already
dead, the present or surviving parent (Art.
212 FC)
Remarriage shall not affect the parental
authority over the children (Art. 212 FC)
In case of a void/annulled marriage, and
there is no agreement bet. spouses, the
parent designated by the court (Art. 43 FC
par 1; Art. 49 FC).
Innocent spouse gets custody of minor
children in legal separation (Art. 63 FC par
3).
The court shall take into account all relevant
considerations, especially the choice of the
child over seven years of age, unless the
parent chosen is unfit (Art. 213 FC par 1).
Tender Years Presumption
NO child under 7 years of age shall be
separated from the mother, unless the court
finds compelling reasons to order otherwise.
(Art. 213 FC par 2; Gamboa v. CA, 2007)
Examples of compelling reasons are:
When the mother is insane;
with a communicable disease that might
endanger the life or health of the child;
is maltreating the child; or
has another child by another man who lives
with her. (Cervantes v. Fajardo, 1989)
[NOTE: Prostitution or infidelity to husband does
not make a mother unfit as parent.]
53
PERSONS AND FAMILY RELATIONS
II. Substitute
Authority
and
Special
Parental
54
PERSONS AND FAMILY RELATIONS
Termination
of
55
Duties of Children:
Art. 357, NCC
obey and honor his parents or guardian
respect old relatives and persons holding
substitute parental authority
exert his utmost for his education and
training
cooperate with the family in matters for his
own good
Art. 4, PD603
strive to live an upright and virtuous life
love, obey, respect his parents and
cooperate with them in strengthening the
family
extend his love to his brothers and sisters
exert his utmost to develop his potentials
III. Suspension
or
Parental Authority
General Guidelines
Art. 305, Civil Code. The duty and the right to make
arrangements for the funeral of a relative shall be in
accordance with the order established for support,
under Article 294. In case of descendants of the same
degree, or of brothers and sisters, the oldest shall be
preferred. In case of ascendants, the paternal shall
have a better right.
Art. 306, Civil Code. Every funeral shall be in
keeping with the social position of the deceased.
Art. 307, Civil Code. The funeral shall be in
accordance with the expressed wishes of the
deceased. In the absence of such expression, his
religious beliefs or affiliation shall determine the
funeral rites. In case of doubt, the form of the funeral
shall be decided upon by the person obliged to make
arrangements for the same, after consulting the other
members of the family.
Art. 308, Civil Code. No human remains shall be
retained, interred, disposed of or exhumed without the
consent of the persons mentioned in articles 294 and
305.
Art. 309, Civil Code. Any person who shows
disrespect to the dead, or wrongfully interferes with a
funeral shall be liable to the family of the deceased for
damages, material and moral.
Duty
and
Right
to
make
funeral
arrangements (in relation to Art. 199 FC)
1. Spouse
2. Descendants in nearest degree
3. Ascendants in nearest degree
4. Brothers and sisters
5. Municipal authorities if there are no
persons who are bound to support or if such
persons are without means
56
PERSONS AND FAMILY RELATIONS
TABLE of CONTENTS
SUCCESSION
Table of Contents
Chapter V. Partition and Distribution of
Estate .............................................................. 83
I.
Concept of Partition ............................ 83
II.
Effects of Partition............................... 84
III. Nullification of Partition ....................... 84
IV. Important Periods in Partition ............. 85
58
SUCCESSION
Kristine Bongcaron
Emil Lunasco
Lead Writers
Alex Lopez
Writer
CIVIL LAW
Kristine Bongcaron
Patricia Tobias
Subject Editors
ACADEMICS COMMITTEE
Kristine Bongcaron
Michelle Dy
Patrich Leccio
Editors-in-Chief
LECTURES COMMITTEE
Michelle Arias
Camille Maranan
Angela Sandalo
DEFINITION OF SUCCESSION
OPENING OF SUCCESSION
KINDS OF SUCCESSION
KINDS OF HEIRS
I.
CC)
It is a mode of acquisition
by virtue of which the property, rights and
obligations
to the extent of the value of the inheritance,
of a person
are transmitted through his death to another
or others
either by his will, or by operation of law
a process of
transmission of property,
rights, and obligations not extinguished by
death (Balane)
Heads
Katz Manzano Mary Rose Beley
Sam Nuez Krizel Malabanan
Arianne Cerezo Marcrese Banaag
Volunteers
Dahlia Salamat
LOGISTICS
Charisse Mendoza
SECRETARIAT COMMITTEE
Jill Hernandez
Head
Loraine Mendoza Faye Celso
Mary Mendoza Joie Bajo
Members
59
SUCCESSION
SUCCESSION TEAM
SUCCESSION
IV. Heirs
SUCCESSION
60
I.
II.
III.
IV.
V.
VI.
VII.
I.
Concept
Intrinsic
Validity
Kinds of Wills
1. Notarial will- Ordinary or attested will (Arts.
804-808, CC)
2. Holographic will (Arts. 804 and 810, CC)
Governing Law
Formal Validity
Requirements (SAP)
Testator is of Sound mind at the time of
execution (Art. 798, CC)
Not under 18 years of Age (Art. 797,
CC)
Not expressly Prohibited by law to make
a will (Art. 796, CC)
Soundness of mindRules to remember:
It is sufficient that the testator (NPC)
o Knew the Nature of the estate to
be disposed of; (N)
o The Proper objects of his bounty;
(P)
o Character of the testamentary act
(C) (Art. 799, CC)
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
EXCEPTION
If within one month
before making a will the
testator is known to be
insane, the burden of
proof that he had a lucid
interval is on the one
alleging the validity of
the will.
Supervening
incapacity
will
not
invalidate the will. Supervening capacity
will also not validate the will. (Art. 801,
CC)
The attestation clause shall state the ff:
Number of pages;
The fact that the testator or his
representative under his express
direction signed the will and every
61
SUCCESSION
Test of Presence:
Jaboneta vs. Gustilo, (1906): Not
whether they actually saw each other
sign, but whether they might have seen
each other sign had they chosen to do
so considering their mental and physical
condition and position with relation to
each other at the moment of inscription
of each signature.
Exceptions:
When the will consists of only one
page
Abangan vs. Abangan, (1919):
When the will consists of only two
pages, the first of which contains all
dispositions and is signed at the
bottom by the testator and the
witnesses, and the second page
contains only the attestation clause
duly signed at the bottom by the
witnesses.
6. PAGE
NUMBERINGS:
Numbered
correlatively (Art. 805, CC), i.e., Page One
of Five pages
7. Acknowledged before a notary public by
the testator and the witnesses (Art. 806, CC)
In the case of Cruz vs. Villasor (1973)
the court ruled that the Notary public
cannot be considered a third witness.
He cannot acknowledge before himself
his having signed the will. To allow such
would have the effect of having only two
attesting witnesses to the will which
IV. Qualifications of
Notarial Will
Witnesses to a
of
Exception
If there are three other
competent witnesses, the
device or legacy shall be
valid and the interested
witness shall be treated
as a mere surplasage
62
SUCCESSION
Witnesses to a
Holographic WIll
Notarial Codicil; or
Holographic Codicil; or
Additional
dispositions
below the signature,
dated and signed in the
hand of the testator.
Contemporaneous to the
execution of the will
Effect
Insertion considered not
written. Validity cannot be
defeated by the malice or
caprice of a third person
Will is valid, insertion is
void.
Insertion becomes part of
the will. Entire will
becomes void because it
is not wholly written by
the testator.
Will is void because it is
not written entirely by the
testator
of
Private
Governing Law
Law in force at the time
the will was made
Law
of
decedents
nationality at the time of
his death (Art. 16, CC)
63
SUCCESSION
V. Qualifications of
Notarial Will
Place of
Execution of Will
Philippines
Outside of
Philippines
the
Filipino
Alien
Philippines
Outside of
Philippines
the
Governing Law
Philippine Law (Art.
16, CC)
1. Law of the country
in which it is executed
(Art. 17, CC); or
2. Philippine Law (Art.
815, CC)
1. Philippine Law; or
2. Law of the country
of which testator is a
citizen or subject (Art.
817, CC)
1. Law of the place
where the will is
executed (Art. 17,
CC); or
2. Law of the place
where the testator
resides; or
3.
Law
of
the
testators country; or
4. Philippine Law (Art.
816, CC)
64
VIII. Codicils and
Reference
Incorporation
by
IX. Revocation
of
Wills
Testamentary Dispositions
and
SUCCESSION
Testators
Domicile
Philippines, or
some
other
country
Philippines
Foreign
Country
Outside
the
Philippines
Governing
Law
Philippine Law
Philippine Law
1. Law of the
place where
the will was
made; or
2. Law of the
place in which
the
testator
had
his
domicile at the
time
of
revocation
X.
Probate
It is a Special Proceeding required to
establish the validity of a will and in order to
pass real or personal property (Art. 838, CC)
Disallowance
Given by Judicial Decree
Must always be for a
legal cause
65
SUCCESSION
4. Fideicommissary
If the testator institutes an heir with an
obligation to preserve and to deliver to
another the property so inherited. The
heir instituted to such condition is called
the First Heir or the Fiduciary Heir; the
one to receive the property is the
fideicommissary of the second heir. (Art.
863, CC)
Requisites of a Fideicommisary Substitution
(Arts. 863-865, CC)
1. A Fiduciary or First Heir instituted is
entrusted with the obligation to preserve
and to transmit to a Fideicommissary
Substitute or Second Heir the whole or part
of the inheritance.
2. The substitution must not go beyond one
degree from the heir originally instituted.
3. The
Fiduciary
Heir
and
the
Fideicommissary are living at the time of
the death of the testator.
4. The fideicommissary substitution must be
expressly made.
5. The fideicommissary substitution is imposed
on the free portion of the estate and
never on the legitime
Note:
a. Palacios vs. Ramirez (1982): Degree
refers to degree of relationship.
b. PCIB vs. Escolin (1974): In the absence
of an obligation on the part of the first
heir to preserve the property for the
second heir, there is no fideicommissary
substitution.
Effects
of
predecease
of
heir/fiduciary
or
the
heir/fideicommisary
the
first
second
Legend:
T Testator
FH First Heir / Fiduciary
SH Second Heir / Fideicommissary
Substitute
66
SUCCESSION
XII. Legitimes
Definition of Legitime (Art. 886, CC)
1. It is that part of the testators property which
he cannot dispose of,
2. Because the law has reserved it for his
compulsory heirs.
Classes of Compulsory Heirs (Art. 887, CC)
1. Primary: Those who have precedence
over and exclude other compulsory heirs:
Legitimate Children and Legitimate
Descendants with respect to their
Legitimate Parents and Ascendants
2. Secondary: Those who succeed only in
the absence of the Primary compulsory
heirs:
a. Legitimate Parents and Legitimate
Ascendants, with respect to their
Legitimate Children and Descendants.
(They will inherit only in default of
legitimate
children
and
their
descendants)
b. Illegitimate Parents with respect to their
Illegitimate Children. (They will inherit
only in default of the illegitimate and
legitimate children and their respective
descendants).
Note
that
other
illegitimate ascendants are not included.
3. Concurring: Those who succeed together
with the primary or the secondary
compulsory heirs:
a. Widow or Widower / Surviving Spouse
(Legitimate)
b. Illegitimate Children and Illegitimate
Descendants
If the testator is a
LEGITIMATE CHILD:
1. LC and descendants
2. In default of No. 1, LP
and ascendants
3. SS
4. IC and descendants
If the testator is an
ILLEGITIMATE CHILD:
1. LC and descendants
2. ILC and descendants
3. In default of Nos. 1-2.
ILP only
4. SS
Legend:
LC Legitimate Children
ILC Illegitimate Children
SS Surviving Spouse
LP Legitimate Parents
ILP Illegitimate Parents
67
SUCCESSION
3
LC, SS
(divided by #
Same as
of children)
share of 1
LC
4
LC, ILC
7
8
9
10
11
LP alone
LP, ILC
LP, SS
LP, SS, ILC
ILC alone
12
ILC, SS
13
SS alone
14
15
16
ILP alone
ILP, SS
Adopter, ILC, SS
(preferred)
Same as
share of 1
LC
(divided by #
of children)
ILC
LP &
Ascendants
68
share of 1
LC
share of 1
LC
share of 1
LC
1/8
(divided
by # of
children)
1/3
(divided
by # of
children)
1/3
ILP
SUCCESSION
1/3
or if
marriage in
articulo
mortis
1/3
1/3
1/3
(adopter)
Remedy
Annulment of institution
and reduction of legacies
and devises (Art. 854, CC)
Reduction
of
the
disposition insofar as they
may be inofficious or
excessive (Art. 907, CC)
Completion of the legitime
(Art. 906, CC)
Collation reduction of
donations (Arts. 771 and
911, CC)
XIII. Preterition
(Asked in 88, 99, 00, 01 and 08)
A. Concept of Preterition (Art. 854, CC)
1. There must be a total omission of one,
some or all of the heir/s in the will.
2. 2. The omission must be that of a
compulsory heir.
3. 3. The compulsory heir omitted must be of
the direct line.
4. The omitted compulsory heir must be living
at the time of the testators death or must
at least have been conceived before the
testators death.
B. Effects of Preterition (Art. 854, CC)
1. The institution of the heir is annulled.
2. Devises and legacies shall remain valid as
long as they are not inofficious.
3. If the omitted compulsory heir should die
before the testator, the institution shall be
effective, without prejudice to the right of
representation.
Neri vs. Akutin (1941): When there are
no devises and legacies, preterition will
result in the annulment of the will and
give rise to intestate succession.
69
SUCCESSION
XV. Disinheritance
(Asked in 82, 84, 99, 00, and 08)
A.
1.
2.
3.
2.
3.
4.
5.
6.
7.
_________________________________________________________________________________
C. Summary of Causes of Disinheritance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
919
*
920
*
921
*
1032
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
D. Modes of Revocation
1. Reconciliation (Art 922, CC)
2. Subsequent institution of the disinherited
heir
3. Nullity of the will which contains the
disinheritance.
Note: The moment that testator uses one of the
acts of unworthiness as a cause for
70
SUCCESSION
DEVISE
A gift of real property
given in a will
It is devised
EFFECT ON
THE LEGACY/
DEVISE
Void
belonged to him
The
thing
bequeathed
afterwards becomes his by
whatever title
Effective
STATUS OF
PROPERTY GIVEN
BY LEGACY/DEVISE
The
thing
already
belongs to the legatee
or devisee at the time
of the execution of the
will (Art. 932, CC)
The thing is subject to
an encumbrance or
interest of another
person (Art. 932, CC)
Legatee or devisee
subsequently alienates
the thing (Art. 933,CC)
After alienating the
thing, the legatee or
devisee subsequently
reacquires
it
gratuitously (Art. 933,
CC)
After alienating the
thing, the legatee or
devisee acquires it by
onerous title (Art. 933,
CC)
EFFECT ON THE
LEGACY/DEVISE
Ineffective
Ineffective
Legatee or devisee
can
demand
reimbursement from
the heir or estate
71
SUCCESSION
EFFECT
Legacy of education
Legacy of support
72
SUCCESSION
Order of Payment In Case the Estate Is Not Sufficient to Cover All the Legacies and Devises
Application:
When the reduction is necessary to
preserve the legitime of compulsory
heirs from impairment whether there are
donations inter vivos or not; or
When, although, the legitime has been
preserved by the testator himself there are
donations inter vivos.
NOTE:
Art. 911, CC governs when there is a conflict
between compulsory heirs and the devisees
and legatees.
ART. 950
Order of Preference
(RPSESO)
Remuneratory legacy/devise
Preferential legacy/devise
Legacy for Support
Legacy for Education
Legacy/devise of Specific, determinate thing
which forms a part of the estate
All Others pro rata
Application:
When there are no compulsory heirs and the
entire estate is distributed by the testator as
legacies or devises; or
When there are compulsory heirs but their
legitime has already been provided for by the
testator and there are no donations inter
vivos.
NOTE:
Art. 950, CC governs when the question of
reduction is exclusively among legatees and
devisees themselves.
73
SUCCESSION
ART. 911
Order of Preference
(LIPO)
Legitime of compulsory heirs
Donations Inter vivos
Preferential legacies or devises
All Other legacies or devises pro rata
I.
Causes for
Succession
Legal
or
Intestate
74
SUCCESSION
c.
Number
of
generations
determines
proximity. (Art 963)
Each generation forms a degree. (Art 963)
A series of degrees forms a line. (Art 964
par.1)
A line may either be direct or collateral. (Art
964 par.1)
A direct line is that constituted by the series
of degrees among ascendants and
descendants (ascending and descending).
(Art 964 par.2)
A collateral line is that constituted by the
series of degrees among persons who are
not ascendants or descendants, but who
come from a common ancestor. (Art 964
par.3)
Full blood same father and mother. (Art
967 par.1)
Half-blood only one of either parent is the
same. (Art 967 par.2)
Important Concepts
Representation is only allowed with respect
to inheritance conferred by law (i.e., as to
legitimes and intestate shares [ Art 923,
CC]),
in
cases
of
incapacity,
disinheritance, and predecease of an
heir.
75
SUCCESSION
the
of
Exception
Whenever all the children repudiate,
the grandchildren inherit in their own
right because representation is not
proper. (Art 969, CC)
4
5
6
7
LC and
Legitimate descendants
LP and
Legitimate ascendants
ILC and
Illegitimate descendants
LC and
Legitimate descendants
ILC and
Illegitimate descendants
ILP
LC and
Legitimate descendants
ILC and Illegitimate descendants
SS
Legitimate siblings,
Nephews,
Nieces
Legitimate collateral relatives within
th
the 5 degree
State
SS
Illegitimate siblings,
Nephews,
Nieces
State
LP or ILP and
Legitimate ascendants,
Adoptive parents
SS
Siblings,
Nephews,
Nieces
State
76
SUCCESSION
ILC
and Descendants
LP and
Legitimate ascendants
ILP
SS
Siblings,
Nephews
Nieces
th
Other collaterals within 5
degree
State
VIII.
Excludes
Ascendants,
Collaterals and
State
ILP,
Collaterals and
State
Collaterals and
State
Collaterals and
State
Collaterals other than
siblings, nephews and nieces
Excluded By
No one
Concurs With
SS and
ILC
No one
SS
LC and
LP
ILC and
SS
SS
Everyone
No one
LC
LC and ILC
No one
77
SUCCESSION
INTESTATE HEIRS
LC and
Legitimate descendants
11. Illegitimate
children
and
surviving
spouse
Illegitimate children get of the estate; the
surviving spouse gets the other . (Art. 998,
CC)
22. State
If there are no other intestate heirs, the
State inherits the entire estate through
escheat proceedings. (Art. 1011, CC)
SHARE
As in the case of ordinary
intestate succession
1/3
1/3
1/3
Entire estate
As in the case of ordinary
intestate succession
78
SUCCESSION
I.
Accretion
Accretion
happens
when
there
is
repudiation, incapacity, or predecease of
an heir.
____________________________________________________________________________________
Effect of Predecease, Incapacity, Disinheritance or Repudiation in Testamentary and Intestate
Succession
CAUSE OF VACANCY
Incapacity
Representa-tion
Intestate Succession
Accretion
Intestate Succession
Disinheritance
Representa-tion
Intestate Succession
Intestate Succession
INTESTATE
SUCCESSION
Representation
Intestate
Succession
Representation
Intestate
Succession
-
Accretion
Accretion
Predecease
Repudiation
TESTAMENTARY SUCCESSION
LEGITIME
FREE PORTION
Representa-tion
Accretion
Intestate Succession
Intestate Succession
79
SUCCESSION
IMPLIED
Effected
when
the
testator makes a will
instituting the unworthy
heir with knowledge of
the cause of incapacity
Revoked
when
the
testator revokes the will
or the institution
80
SUCCESSION
III. Acceptance
Inheritance
and
Repudiation
of
81
SUCCESSION
82
SUCCESSION
I.
Concept of Partition
Kinds of Partition
1. Judicial v. Extrajudicial Partition
a. Judicial Partition done by Court
pursuant to an Order of Distribution
which may or may not be based on a
project of partition.
b. Extra-judicial partition made by the
decedent himself by an act inter vivos or
by will or by a third person entrusted by
the decedent or by the heirs themselves.
(PARAS)
2. Partition Inter Vivos (Asked in 85)
It is one that merely allocates specific
items or pieces of property on the basis
of the pro-indiviso shares fixed by law or
given under the will to heirs or
successors. (Art. 1080, cc)
Who May Effect Partition
1. The Decedent, during his lifetime by an act
inter vivos or by will (Art.1080, CC)
83
SUCCESSION
84
SUCCESSION
5 years
partition
from
4 years
partition
form
85
SUCCESSION
I.
II.
III.
IV.
II.
III.
IV.
Goofys
original share:
Donalds
original share:
Minnies
original share:
Institution of Heirs
Legitimes
Intestate Succession
The Effect of Partition
Nullification of Partition
Important Periods in Partition
1/4 of 12,000
3,000
1/4 of 12,000
3,000
Institution of Heirs
A. Excess Institution
Mickey died testate, leaving a total estate of
P12,000. According to his Will, Goofy gets ,
Donald gets 1/3 and Minnie gets of the
property. How will you compute the proportional
reduction from each heirs shares in order not to
exceed the total estate of Mickey (assuming no
legitime is impaired)?
Goofys original
share:
Donalds
original share:
Minnies original
share:
4,000
TOTAL: 10,000
DEFICIENCY
: 2,000
I.
1/3 of 12,000
of 12,000
6,000
1/3 of 12,000
4,000
of 12,000
3,000
TOTAL:
13,000
EXCESS:
1,000
II. Legitimes
A. Legitimes: Concurrence of Legitimate
and Illegitimate Children
Homer died of heart attack. His wife, Marge,
predeceased him. He had only 1 legitimate child,
Bart, and 4 illegitimate children, Lisa, Maggie,
Wolverine and Cyclops. Homer has a total
estate of P120,000. How much is the legitime of
each heir?
The legitimate child should get of the estate
while the illegitimate children get of what the
legitimate child gets.
Bart - P60,000
Lisa - P30,000
Maggie - P30,000
Wolverine - P30,000
Cyclops - P30,000
But this would amount to a total of P180,000.
Thus, there must be a reduction of the shares of
the illegitimate children.
Reduction = excess / number of illegitimate
children
Reduction = (180,000 120,000) / 4 = 15,000
P30,000 (share) 15,000 (reduction) =
P15,000
86
SUCCESSION
Mushroom P60,000
Kupa P30,000
Mario P30,000
Luigi P30,000
IV. Accretion
illegitimate
87
SUCCESSION
Final Answer:
Bart = P60,000
Lisa = P15,000
Maggie = P15,000
Wolverine = P15,000
Cyclops = P15,000
TOTAL = P120,000
___________
Will
180 = legitime:120
free: 60
180 (automatically
becomes free portion)
180 = legitime:120
free: 60
180 = legitime:120
free: 60
Representation for
Legitime
Legitime = 120
Trunks: 60
Bulma: 60
Napa (repudiated)
Raditz (incapacitated)
Legitime = 120
Tenshenhan: 60
Chowzu: 60
Freeza
Accretion
- 60
-180
-60
+ (60 + 60 + 180) or +
300
COMPUTE:
Heir
Vegeta (predeceased)
Napa (repudiated)
Raditz (incapacitated)
Freeza
Final Answer
Trunks: 60
Bulma: 60
0
Tenshenhan: 60
Chowzu: 60
480
Sandy
Determine Advances
Heir
Spiderman
Robinhood
Sandy
Advance
50,000
100,000
Compute:
Robinhood
Computation
Legitime: 60,000 50,000 = 10,000
Free Portion = 20,000
Legitime: 60,000 60,000 = 0
Free Portion: 20,000 20,000 = 0
(20,000 still unaccounted for)
Sandy
Robinhood
Sandy
V. Collation
Sponge Bob died intestate on September 17,
1985. He left an estate of P90,000. He was
survived by his wife, Sandy, and his two children
Spiderman and Robinhood. During Mr. Bobs
lifetime, on January 1, 1980, he donated
Final Answer
80, 000
(60,000 = legitime)
80,000
(60,000 = legitime)
80,000
(60,000 = legitime)
Robinhood
Heir
Spiderman
Computation
Legitime Left: 10,000
Free Portion Left =
20,000 10,000 = 10,000
0
Legitime: 60,000
Free Portion: 20,000 10,000 =
10,000
Therefore
Heir
Spiderman
Robinhood
Sandy
- end of Succession -
Final Answer
20,000
0
70,000
88
SUCCESSION
TABLE of CONTENTS
OBLIGATIONS
Table of Contents
90
OBLIGATIONS
Leo Ledesma
Lead Writer
Krizel Malabanan
Ivy Velasco
Tin Reyes
Frances Domingo
Hazel Abenoja
Writers
CIVIL LAW
Kristine Bongcaron
Patricia Tobias
Subject Editors
ACADEMICS COMMITTEE
Kristine Bongcaron
Michelle Dy
Patrich Leccio
Editors-in-Chief
LECTURES COMMITTEE
Michelle Arias
Camille Maranan
Angela Sandalo
Heads
Katz Manzano Mary Rose Beley
Sam Nuez Krizel Malabanan
Arianne Cerezo Marcrese Banaag
Volunteers
LOGISTICS
Charisse Mendoza
SECRETARIAT COMMITTEE
Jill Hernandez
Head
Loraine Mendoza Faye Celso
Mary Mendoza Joie Bajo
Members
OBLIGATIONS
SOURCES OF OBLIGATIONS
A. LAW
B. CONTRACTS
C. QUASI-CONTRACTS
D. DELICTS
E. QUASI-DELICTS
I.
Obligations
B. Contracts
Art. 1159. Has the Force of Law Between
Parties. Obligations arising from contracts have
the force of law between the contracting parties
and should be complied with in good faith
C. Quasi-Contracts
Art. 2142, Civil Code. Certain lawful, voluntary and
unilateral acts give rise to the juridical relation of
quasi-contract to the end that no one shall be unjustly
enriched or benefited at the expense of another.
Lawful
Voluntary
Unilateral
91
OBLIGATIONS
Kinds of Quasi-Contracts
Negotiorum Gestio: officious or voluntary
management of the property or affairs of
another without the knowledge or consent of
the latter.
Solutio Indebiti: undue payment. The
juridical relation arises when:
o a thing is received without any right; and
o the thing delivered by mistake.
Others: See Arts. 2164-2175
(De Leon, 2003)
D. Delicts (Acts or omissions punished by law;
crimes)
Extent of Civil Liability
Governed by the Revised Penal Code and the
Civil Code, includes:
1. Restitution;
2. Reparation of damages caused; and
3. Indemnity for consequential damages (Art.
104, Revised Penal Code).
(Tolentino, 1987)
Enforcement of Civil Liability
1. Independent: Criminal and civil action
arising from the same offense may be
instituted separately.
2. Suspended: However, after criminal action
has been commenced prosecution for civil
action is suspended in whatever stage it
may be found, until final judgment in the
criminal proceeding is rendered;
3. Impliedly Instituted: Civil action is impliedly
instituted with the criminal action, when:
offended party expressly waives the civil
action or reserves the right to institute a
separate civil action; or
the law provides for an independent civil
action
Barredo v. Garcia, (1942): The same negligent act
may give rise to an action based on delict or quasidelict and the injured party is free to choose which
remedy to enforce.
Mendoza vs. Arrieta, (1979): If the civil action is
based on quasi-delict, there is no need to reserve the
right to file a civil action in the criminal case.
Quasi-Delict
Private,
against
individual
Criminal intent is not
necessary
Crimes
Public, against the State
Preponderance
of
evidence
Can be compromised
No Effect
an independent civil
action is allowed by law
acquittal is due to lack
of
proof
beyond
reasonable doubt
Criminal
necessary
liability
intent
is
for criminal
92
Subsidiary liability is
absolute and cannot be
avoided by any proof of
diligence
OBLIGATIONS
Nature
and
I.
II.
III.
IV.
V.
KINDS OF PRESTATIONS
BREACH OF OBLIGATIONS
FORTUITOUS EVENTS
REMEDIES
USURIOUS TRANSACTIONS
I.
Kinds of Prestations
Effect
of
KINDS OF PRESTATION
1. TO GIVE: real obligation; to deliver either
(1) a specific or determinate thing, or (2) a
generic or indeterminate thing.
2. TO DO: positive personal obligation;
includes all kinds of work or services.
3. NOT
TO
DO:
negative
personal
obligation; to abstain from doing an act;
includes the obligation not to give.
Accessories: those joined to or included with
the principal for the latters completion, better
use, perfection or enjoyment
OBLIGATION TO GIVE
Specific Thing
Generic Thing
Particularly
designated or
physically
segregated
from all other of
the same class;
identified
by
individuality.
Object
is
designated only
by its class/
genus/ species.
Debtor can give
anything of the
same class as
long as it is of
the same kind.
Cannot
be
substituted.
Can
be
substituted by
any of the same
class and same
kind.
Personal Right
Vested before delivery
A right enforceable only
against the debtor
Right of the creditor to
demand from the debtor,
the fulfillment of a
prestation to give, to do
or not to do
To Give
Specific
Thing
(Asked
in 83,
84, 85
and
86)
To Give
Generic
Thing
Real Right
Vested after delivery
A
right
enforceable
against the world
Right pertaining to a
person over a specific
thing, without a passive
subject
individually
determined
against
whom such right may be
personally enforced
To Do
Limited
Generic Thing
When
the
generic objects
are confined to
a
particular
class.
To compel performance
To recover damages where personal
qualifications of the debtor are involved
93
OBLIGATIONS
Chapter II.
Obligations
Not To
Do
2. NEGLIGENCE
or
FAULT
(CULPA):
omission of that diligence which is required
by the nature of the obligation and
corresponds with the circumstances of the
person, of the time and of the place (Art.
1173).
Fraud
There
is
deliberate
intention
to
cause
damage
Liability
cannot
be
mitigated
Waiver for future fraud
is void
Negligence
There is no deliberate
intention to cause damage
Liability may be mitigated
Waiver
for
future
negligence
may
be
allowed in certain cases:
gross can NEVER
be excused in
advance; amounts to
wanton attitude; rules
on fraud shall apply
simple may be
excused in certain
cases
94
OBLIGATIONS
Bad Faith
Debtor is liable for all
damages which can be
reasonably attributed to
the non-performance of
the obligation. Any waiver
or renunciation made in
anticipation
of
such
liability is null and void
Good Faith
Debtor is liable only for
the
natural
and
probable
consequences of the
breach of obligation and
fortuitous events
Culpa Contractual
Negligence is merely
incidental
in
the
performance
of
an
obligation
There is always a preexisting
contractual
relation
The source of obligation
of defendant to pay
damages is the breach or
non-fulfillment of the
contract
Proof of the existence of
the contract and of its
breach or non-fulfillment
is sufficient prima facie to
warrant recovery
Proof of diligence in the
selection and supervision
of the employees is NOT
available as defense
Mora Solvendi
Requisites
1. Obligation must be
liquidated, due and
demandable
2. Non-performance by
the debtor on period
agreed upon
3. Demand, judicial or
extra-judicial, by the
creditor
Effects
1. The debtor is liable
for damages
2. The debtor is liable
even if the loss is due
to fortuitous events
3. For
determinate
objects, the debtor
shall bear the risk of
loss
Mora Accipiendi
Requisites
1. Debtor offers of
performance
2. Offer must be in
compliance with the
prestation
3. Creditor refuses the
performance
without just cause
Effects
1. The responsibility of
the
debtor
is
reduced to fraud
and
gross
negligence
2. The
debtor
is
exempted from risk
of loss of the thing
which is borne by
the creditor
3. The
expenses
incurred by the
debtor
for
the
preservation of the
thing after the mora
shall be chargeable
to the creditor
4. If the obligation
bears interest, the
debtor does not
have to pay from
the time of delay
5. The creditor is liable
for damages
6. The debtor may
relieve himself of
obligation
by
consigning the thing
Exceptions
1. the obligation or law
provides
2. time is of the
essence
3. demand useless
4. debtor
acknowledges that
he is in default
Reciprocal Obligations
General Rule:
Delay occurs from the
moment one party fulfills
his undertaking, while the
other does not comply or
is not ready to comply in
a proper manner with
what is incumbent upon
him.
No delay if neither party
performs his undertaking
(Art. 1169, par. 2).
Exception:
different dates for the
performance
of
respective obligations are
fixed by the parties
95
OBLIGATIONS
Transmissibility of Rights
Art. 1178: Rights acquired by virtue of an
obligation are transmissible in character,
UNLESS prohibited:
1. by their very nature (i.e. personal
obligations)
2. by stipulation of the parties
3. by operation of law
(De Leon, 2003)
Primary Remedies
Arts. 1165-1168: PRESS
1. Specific Performance performance
by the debtor of the prestation itself
2. Substituted Performance someone
else performs or something else is
performed at the debtors expense
3. Equivalent Performance right to
claim damages (in either performance or
rescission)
4. Rescission right to rescind or cancel
the contract
5. Pursue the Leviable to attach the
properties of the debtor, except those
exempt by law from execution
Subsidiary Remedies of Creditor
General Rule: Contracts are binding only
between the parties thereto, and their heirs,
assignees, and the estate, UNLESS: Accion
Subrogatoria and Accion Pauliana
1. Accion Subrogatoria: right of creditor to
exercise all of the rights and bring all of the
actions which his debtor may have against
third persons; Novation by change of debtor
(Art. 1291, par.3).
96
OBLIGATIONS
Requisites
a. Debtor to whom the right of action
properly pertains must be indebted to
the creditor
b. The debt is due and demandable
c. The creditor must be prejudiced by the
failure of the debtor to collect his own
rd
debt from 3 persons either through
malice or negligence
d. The debtors assets are insufficient
(debtor is insolvent)
e. The right of action is not purely personal
to the debtor
2. Accion Pauliana: Rescission, which
involves the right of the creditor to attack or
impugn by means of a rescissory action any
act of the debtor which is in fraud and to the
prejudice of his rights as creditor.
Requisites: CASAL
a. There is a credit in favor of plaintiff
prior to alienation
b. The
debtor
has
performed
a
subsequent contract conveying a
patrimonial benefit to third persons
c. The creditor has no other legal remedy
to satisfy his claim
d. The debtors acts are fraudulent to the
prejudice of the creditor
e. The third person who received the
property is an accomplice in the fraud
Accion Subrogatoria
Not
necessary
that
creditors claim is prior to
the acquisition of the right
by the debtor
No need for fraudulent
intent
No period for prescription
Accion Pauliana
Credit must exist before
the fraudulent act
Fraudulent
intent
is
required if the contract
rescinded is onerous
Prescribes in 4 years
from the discovery of the
fraud
Determination of Interests
Eastern Shipping Lines v. CA (1961)
Stage 1
For loan or forbearance NOT for loan or
of money, goods or forbearance of money,
credit, the interest rate goods or credit, the
is 12%
interest rate is 6%
a) Interest = interest
rate
stipulated
in
writing + 12% legal
interest,
computed
from date of judicial
demand
(filing
of
complaint)
b) If there is no
stipulated interest rate,
the interest rate is 12%
computed from date of
default or demand
(judicial
or
extrajudicial)
a) If date of demand is
certain, compute from
the date when demand
is made (judicial or
extra-judicial)
b) If date of demand is
NOT certain, compute
from the date of trial
court decision (judicial
demand)
Stage 2
Add 12% interest from finality of SC decision until
fully paid (equivalent to a forbearance of credit)
97
OBLIGATIONS
I.
After Fulfillment
The obligation arises or
becomes effective.
The obligor can be
compelled to comply with
what is incumbent upon
him.
Principle
of
Retroactivity
in
Suspensive Conditions
Art.1187, par.1: once the condition is
fulfilled its effects must logically retroact
to the moment when the essential
elements, which gave birth to the
obligation have taken place. The
condition which is imposed is only
accidental, not an essential element of
the obligation.
Applied
only
to
consensual
contracts. No application to real
contracts which can only be
perfected by delivery.
To Give
If reciprocal, the fruits
and interests shall be
deemed to have been
mutually compensated
as a matter of justice and
convenience
(Art. 1187, par. 1)
If unilateral, the debtor
shall appropriate the
fruits
and
interests
received, unless from the
nature and circumstance
it should be inferred that
the intention of the
persons constituting the
same was different.
To Do/Not To Do
In obligations to do or not
to do, the court shall
determine the retroactive
effect of the condition
that has been complied
with.
(Art. 1187, par. 2)
The power of the court
includes
the
determination whether or
not there will be any
retroactive effects. This
rule shall likewise apply
in obligations with a
resolutory condition (Art.
1190 par. 3)
98
OBLIGATIONS
Before Fulfillment
Preservation of creditors
rights (Art. 1188, par. 1)
also
applies
to
obligations
with
a
resolutory condition
After Fulfillment
Whatever
may
have
been paid or delivered by
one or both of the parties
upon the constitution of
the obligation shall have
to be returned upon the
fulfillment
of
the
condition. There is no
return to the status quo.
However, when condition
is not fulfilled, rights are
consolidated and they
become
absolute
in
character
3. Potestative Condition
Exclusively
upon the
Creditors Will
Condition
obligation
valid
and
is
Exclusively
upon the
Debtors Will
in case of a
Suspensive
Condition
(Art. 1182)
Condition and
obligation are
void because to
allow
such
condition would
be equivalent to
sanctioning
obligations
which
are
illusory. It also
constitutes
a
direct
contravention of
the principle of
mutuality
of
contracts.
Exclusively
upon the
Debtors Will
in case of a
Resolutory
Condition
(Art. 1179, par
2)
Condition and
obligation
is
valid because in
such situation,
the position of
the debtor is
exactly
the
same as the
position of the
creditor when
the condition is
suspensive. It
does not render
the
obligation
illusory.
Effects
of
Loss,
Deterioration,
and
Improvement in Real Obligations Pending the
Condition (Art. 1189)
Loss
Without
Debtors
Fault/Act
Obligation
extinguished
With Debtors
Fault/Act
is
Obligation
is
converted into
one
of
indemnity
for
damages
99
OBLIGATIONS
Improvement
Impairment to be
borne by the
creditor
Improvement at
the
debtors
expense,
the
debtor
shall
ONLY
have
usufructuary
rights
Creditor
may
choose
between
bringing
an
action
for
rescission
of
the obligation
OR bringing an
action
for
specific
performance
with damages
in either case.
Improvement
by the things
nature or by
time shall inure
to the benefit of
the creditor
Condition
Fact or event which is
future and uncertain
100
OBLIGATIONS
Deterioration
Debtor
Debtor may oppose any
premature demand on
the part of the oblige for
the performance of the
obligation, of if he so
desires,
he
may
renounce the benefit of
the period by performing
his obligation in advance
IV. Alternative
Obligations
and
Facultative
Alternative Obligations
Several objects are due
May be complied with by
delivery of one of the
objects or by performance
of one of the prestations
which are alternatively
due
Choice may pertain to
debtor, creditor, or third
person
Facultative Obligations
Only one object is due
May be complied with by
the delivery of another
object
or
by
the
performance of another
prestation in substitution
of that which is due
Choice pertains only to
the debtor
Loss/impossibility of all
objects/prestations due to
fortuitous
event
shall
extinguish the obligation.
The loss/impossibility of
one of the things does not
extinguish the obligation.
Culpable loss of any of
the objects alternatively
Loss/impossibility of the
object/prestation due to
fortuitous
event
is
sufficient to extinguish
the obligation
Culpable loss
of the
object which the debtor
101
OBLIGATIONS
A. Alternative Obligations
Fortuitous
Event
Debtor
is
released from the
obligation
Some
Debtor to deliver
that which he
shall
choose
from among the
remainder
One
Remains
Debtor to deliver
that
which
remains
Debtors Fault
Creditor shall have
a right to indemnity
for damages based
on the value of the
last thing which
disappeared
or
service
which
become impossible
Debtor to deliver
that
which
the
creditor
shall
choose from among
the
remainder
without damages
Debtor to deliver
that which remains
Fortuitous
Event
Debtor
is
released from the
obligation
Some
Debtor to deliver
that which he
shall
choose
from among the
remainder
One
Remains
Creditor
may
claim
any
of
those subsisting
without a right to
damages
OR
price/value of the
thing lost with
right to damages
Debtors Fault
Creditor may claim
the price/value of
any of them with
indemnity
for
damages
creditor may claim
any
of
those
subsisting without a
right to damages
OR price/value of
the thing lost with
right to damages
Creditor may claim
the remaining thing
without a right to
damages OR the
price/value of the
thing lost with right
to damages
B. Facultative Obligation
Only one prestation has been agreed upon but
the debtor may render another in substitution
(De Leon, 2003)
Effect of Loss of Substitute
Before Substitution is
Made
If due to bad faith or
fraud of obligor: obligor
is liable
After Substitution is
Made
The
loss
or
deterioration of the
substitute on account
of the obligors delay,
negligence or fraud
102
OBLIGATIONS
Joint Indivisible
Obligations
In case of breach where
one of the joint debtors
fails to comply with his
undertaking,
the
obligation can no longer
be fulfilled or performed.
Thus action must be
converted into indemnity
for damages.
103
OBLIGATIONS
B. Solidary Obligation
An obligation where there is concurrence of
several creditors, or of several debtors, or of
several creditors and several debtors, by virtue
of which, each of the creditors has the right to
demand, and each of the debtors is bound to
render, entire compliance with the prestation
which constitutes the object of the obligation
(Obligacion Solidaria).
Indivisibility
Refers to the prestation
which
constitutes
the
object of the obligation
Solidarity
Refers to the legal tie or
vinculum,
and
consequently to the
subjects or parties of
the obligation
Plurality of subjects is
indispensable
When there is liability
on the part of the
debtors because of the
breach, the solidarity
among the debtors
remains
____________________________________________________________________________________
Effects of Modes of Extinguishment
Assignment of
Rights in Solidary
Obligations
The
solidary
creditor
cannot
assign his right
because it is
predicated upon
mutual
confidence,
UNLESS, the (1)
the assignment is
to a co-creditor;
(2) assignment is
with consent of
co-creditor
Novation
Compensation &
Confusion
Remission
If prejudicial, the
solidary creditor
who effected the
novation
shall
reimburse
the
others
for
damages incurred
by them;
If beneficial and
secured by one,
he shall be liable
to the others for
the
share
(obligation
&
benefits)
which
If it is partial, the
rules
regarding
application
of
payment
shall
apply
(w/o)
prejudice to the
right
of
other
creditors
who
have not caused
the confusion or
compensation to
be reimbursed to
the extent that
their rights are
diminished
or
If
entire
obligation,
obligation is totally
extinguished.
If for the benefit
of one of the
debtors covering
his entire share,
he is completely
released from the
creditor/s.
If for the benefit
of one of the
debtors and it
covers only part
Loss or
Impossibility
If not debtors
fault,
the
obligation
is
extinguished
If thru debtors
OR
fortuitous
event after delay,
the obligation is
converted
into
indemnity
for
damages but the
solidary character
of the obligation
remains.
104
OBLIGATIONS
Payment by a Debtor
Full payment made by
one of the solidary
debtors extinguishes the
obligation. (Art. 1217)
105
OBLIGATIONS
corresponds
to
them
If by substituting
the debtor, the
solidary creditor
who effected the
novation is liable
for the acts of the
new debtor in
deficiency
or
damages
If by subrogating
a third person in
creditors rights,
the obligation is
not
in
reality
extinguished as
the
relation
between the other
creditors and the
debtor/s
is
maintained.
Purposes of Penalty
1.
2.
B. Indivisible Obligations
One which cannot be validly performed in parts
(Tolentino, 1987).
Divisibility/indivisibility
refers
to
the
performance of the prestation and not to the
thing which is the object thereof. The thing
may be divisible, yet the obligation may be
indivisible.
When the obligation has for its object the
execution of a certain number of days of
work, the accomplishment of work by
metrical units, or analogous things which by
their nature are susceptible of partial
performance, it shall be divisible (Art.1225,
par. 2).
When there is plurality of debtors and
creditors, the effect of divisibility/indivisibility
of the obligation depend upon whether the
obligation is joint or solidary.
A joint indivisible obligation give rise to
indemnity for damages from the time anyone
of the debtors does not comply with is
undertaking.
(Art. 1224)
Effect
Creditor cannot be compelled partially to receive
the prestation in which the obligation consists;
neither may the debtor be required to make the
partial payment (Art. 1248), UNLESS:
The obligation expressly stipulates the
contrary
The different prestations constituting the
objects of the obligation are subject to
different terms and conditions
The obligation is in part liquidated and in part
unliquidated
3.
Effects of Penalty
1. The penalty shall substitute the indemnity for
damages and payment of interest in case of
non-compliance (Art. 1226), UNLESS:
a.
b.
c.
b.
c.
106
OBLIGATIONS
Chapter
IV.
Obligations
Extinguishment
of
I.
Payment or Performance
Payment by cession
There
are
various
creditors
Extinguishes
credits
only up to the extent of
proceeds from sale of
assigned
property,
unless
otherwise
agreed upon
107
OBLIGATIONS
I.
II.
Cession
Dation
Requisites
1. Plurality of debts
2. Plurality of
creditors
3. Partial insolvency
of the debtor
4. Abandonment of
the totality of the
debtors
properties for the
benefit of the
creditors
5. Acceptance by
the creditors
Requisites
1. Should not be
prejudicial to
other creditors
2. Should not
constitute a
pactum
commissorium
Requisites
1. There is a debt due
2. consignation is made because
of some legal cause
3. previous notice of consignation
was given to those persons
interested in the performance
of the obligation
4. amount or thing due was
placed at the disposal of the
court
5. after the consignation has been
made, the persons interested
were notified thereof
Effects
Assignment liberates
debtor up to the
amount of the net
proceeds of the sale
of his assets
Assignment does not
vets title to the
property
in
the
creditors,
who
are
only
authorized to sell it.
Effects
Extinguishment
of
debt from as an
equivalent of the
performance of the
obligation
Effects
If accepted by the creditor or
declared properly made by the
Court:
1. Debtor is released in same
manner as if he had performed
the obligation at the time of
consignation
2. Accrual of interest is
suspended from the moment of
consignation.
3. Deterioration or loss of the
thing or amount consigned,
occurring without the fault of
debtor, must be borne by
creditor from the moment of
deposit
4. Any increment or increase in
the value of the thing after
consignation inures to the
benefit of the creditor
108
OBLIGATIONS
Effects of Loss
Obligation to Deliver a
Specific Thing
Extinguishment of the
obligation if the thing was
destroyed w/o fault of the
debtor and before he has
incurred delay.
Obligation to Deliver a
Generic Thing
Loss of a generic thing
does not extinguish an
obligation,
UNLESS,
Delimited
generic
things: kind or class is
limited itself, and the
whole class perishes
rd
109
OBLIGATIONS
Requisites
1. Debt must be existing and demandable
2. Renunciation must be gratuitous; without
any consideration
3. Debtor must accept the remission
Effect
Art. 1273: Renunciation of the principal debt
shall extinguish the accessory obligations, but
remission of the latter leaves the principal
obligation in force.
Presumptions
Arts. 1271, 1272, 1274:
Whenever the private document in which the
debt is found in the possession of the
debtor, it shall be presumed that the creditor
delivered it voluntarily, unless contrary is
proved.
Delivery of a private document evidencing
credit, made voluntarily by the creditor to the
debtor, implies the renunciation of the action
of creditor against the latter.
Kinds
1. As to form (Art. 1270)
Express: made formally; in accordance
with forms of ordinary donations
Implied: inferred from the act of the
parties
2. As to extent
Total: entire obligation
Partial: may refer only to amount of
indebtedness, or to an accessory
obligation, or to some other aspect of
the obligation
3. As to constitution
Inter vivos: effective during the lifetime
of the creditor
Mortis causa: effective upon death of the
creditor; must be contained in a will or
testament
Effects
Arts. 1275- 1277:
1. The obligation is extinguished from the time
the characters of the debtor and creditor are
merged in the same person.
2. In joint obligations, confusion does not
extinguish the obligation except as regards
the corresponding share of the creditor or
debtor in whom the two characters concur.
3. In solidary obligations, confusion in one of
the solidary debtors extinguishes the entire
obligation.
4. Obligation is not extinguished when
confusion takes place in the person of
subsidiary debtor (e.g. guarantor), but
merger in the person of the principal debtor
shall benefit the former.
V. Compensation
COMPENSATION: Offsetting of two obligations
which are reciprocally extinguished if they are of
the same value, or extinguished to the
concurrent amount if of different values. (Asked
in 80, 81, 98, and 02)
Compensation
Confusion
Kinds
1. As to extent
Total: Debts are of the same amount
Partial: Amounts are not equal
2. As to origin
Legal: takes place by operation of law
Conventional:
parties
agree
to
compensate their mutual obligations
even when some requisite in Art. 1279 is
lacking (Art. 1282).
Judicial: decreed by court when there is
counterclaim; effective upon final
judgment (Art. 1283).
Facultative: when it can be claimed by
one of the parties who, however, has the
right to object to it.
110
OBLIGATIONS
2.
3.
4.
5.
6.
Requisites
Each obligor is
bound principally,
and at the same time
a principal creditor of
the other
Both debts must
consist in a sum of
money, or if the
things due are
FUNGIBLE, of the
same kind & quality
Both debts are due
Debts are liquidated
and demandable
There must be no
retention or
controversy over
either of the debts,
rd
commenced by 3
persons and
communicated in
due time to the
debtor
Compensation is not
prohibited by law
1.
2.
3.
4.
Effects
Effects rise from the
moment all the
requisites concur.
Debtor claiming its
benefits must prove
compensation; once
proven, effects
retroact from the
moment when the
requisites concurred.
Both debts are
extinguished to the
concurrent amount,
eventhough the
creditors and debtors
are not aware of the
compensation.
Accessory
obligations are also
extinguished.
With Debtors
Knowledge
Debtors
consent
to
assignment of
credit
constitutes
a
waiver
of
compensation,
unless
he
reserved
his
right
to
compensation.
Without
Debtors
Knowlege
Debtor
may
setup
compensation
of all credits
(maturing) prior
to
the
assignment and
also latter ones
until he had
knowledge of
the assignment.
VI. Novation
NOVATION: Extinguishment of an obligation by
the substitution or change of the obligation by a
subsequent one which extinguishes or modifies
the first either by changing the object or principal
conditions, or by substituting the person of the
debtor, or by subrogating a third person in the
rights of the creditor. A juridical act of dual
functionit extinguishes an obligation, and at
the same time, it creates a new one in lieu of the
old. (Asked in 78, 88, 94 and 01)
Requisites
1. A previous valid obligation
2. Agreement of all the parties to the new
obligation
3. Extinguishment of the old obligation
4. Validity of the new obligation
Novation is not presumed.
Express novation: Parties must expressly
disclose their intent to extinguish the old
obligation by creating a new one.
Implied novation: No specific form is
required. There must be incompatibility
between the old and new obligation or
contract.
(Asked in 79, 82, 88, and 94)
California Bus Line v. State Investment (2003): In the
absence of an unequivocal declaration of
extinguishment of the pre-existing obligation, only
proof of incompatibility between the old and new
obligation would warrant a novation by implication.
The restructuring agreement merely provided for a
new schedule of payments and authority giving Delta
to take over management and operations of CBLI in
case it fails to pay installments. There was no change
in the object of prior obligations.
Test of Incompatibility
Whether or not the old and new obligation can
stand together, each one having an independent
existence. No incompatibility exists when they
can stand together. Hence, there is no novation.
Incompatibility exists when they cannot stand
together. Hence, there is novation.
Effects
In General
1.
Old
obligation is
extinguished
and replaced
by the new
one
stipulated.
If
Original
Obligation
is
Void
Novation is void if
the
original
obligation
was
void,
except
when annulment
may be claimed
only
by
the
If
New
Obligation
is
Void
New obligation is
void,
the
old
obligation
subsists, unless
the
parties
intended that the
former realations
111
OBLIGATIONS
1.
debtor, or when
ratification
validates
acts
that are voidable.
(Art. 1298)
1.
Original
obligation is void:
No novation
2.
Original
obligation
voidable:
Effective
if
contract is ratified
before novation
shall
be
extinguished
in
any event. (Art.
1297)
1. New obligation
void: No novation
2. New obligation
voidable:
Novation
is
effective
Fulfillment of both
conditions:
new
obligation becomes
demandable
Fulfillment
of
condition concerning
the
original
obligation:
old
obligation is revived;
new obligation loses
force
Fulfillment
of
condition concerning
the new obligation:
no
novation;
requisite
of
a
previous valid and
effective obligation
lacking
Incompatible
Conditions
Original obligation is
extinguished, while
new obligation exists
Demandability shall
be
subject
to
fulfillment/
nonfulfillment of the
condition affecting it
OBJECTIVE NOVATION
1. Change of the subject matter
2. Change of causa or consideration
3. Change of the principal conditions or terms
SUBJECTIVE NOVATION
1. Substitution of the Debtor: Consent of
creditor is an indispensable requirement
both in expromision and delegacion.
Expromision
Initiative for change does
not emanate from the
debtor, and may
Even be made without
his knowledge.
Requisites
1. Consent of the
creditor and the new
debtor
2. Knowledge or
consent of the old
debtor is not
required
Effects
1. Old debtor is
released
2. Insolvency of the
new debtor does not
revive the old
obligation in case the
old debtor did not
agree to expromision
3. If with knowledge
and consent of old
debtor, new debtor
can demand
reimbursement the
entire amount paid
and w/ subrogation
of creditors rights
4. If without knowledge
of the old debtor,
new debtor can
demand
reimbursement only
up to the extent that
the latter has been
benefited w/o
subrogation of
creditors rights
Delegacion
Debtor (delegante) offers
or initiates the change,
and
the
creditor
rd
(delegatorio) accepts 3
person (delegado) as
consenting
to
the
substitution
Requisites
1. Consent of old
debtor, new debtor,
and creditor
Effects
1. Insolvency of the
new debtor revives
the obligation of the
old debtor if it was
anterior and public,
and known to the old
debtor.
2. New debtor can
demand
reimbursement of
the entire amount he
has paid, from the
original debtor. He
may compel creditor
to subrogate him to
all of his rights.
rd
Assignment of credit
Debtors consent is not
required
Refers to the same right
which passes from one
person to another, without
modifying or extinguishing
the obligation
112
OBLIGATIONS
Effects
Total
1. Transfers to the
person subrogated
the credit with all the
rights
thereto
appertaining, either
against the debtor or
rd
3 persons.
2. Obligation is not
extinguished, even if
the intention is to
pay it.
3. Defenses against the
old
creditor
are
retained,
unless
waived by the debtor
Partial
1. A creditor, to whom
partial payment has
been made, may
exercise his right for
the remainder, and
shall be preferred to
the
person
subrogated in his
place in virtue of the
partial payment.
113
OBLIGATIONS
1.
2.
3.
4.
Legend:
G = General Rule
= Exception
C = Creditor
D = Debtor
In GENERAL
Debtor or his:
Authorized Agent
Heir
Successor-in- interest
3rd PERSON
Interested in obligation
(creditor cannot refuse
to accept valid payment)
Payment w/ or
w/o debtors
knowledge
Effects:
1.
Valid
payment;
obligation extinguished
2. Debtor to reimburse
fully 3rd person interested
in obligation
3. 3rd person subrogated
to rights of creditor
In Obligation to Give, if
PAYOR has
Payment with
debtors consent
(express/tacit)
Effects:
1. 3rd person is entitled
to full reimbursement
2. Legal subrogation
(novation) 3rd person
is subrogated/step into
the shoes of creditor
Payment without
debtors knowledge
or against the will of D
Effects:
3rd person can only be
reimbursed only insofar as
payment has been beneficial to
debtor(1236, 2nd. par.)
burden of proof on 3rd person
cannot compel C to subrogate
him (1237)
Effects:
1. Payment is deemed
as a donation/offer of
donation
2. Donation must be in
proper form (if above
P5Th must be in
writing
114
114
OBLIGATIONS
115
G NOT valid
Payment to Incapacitated
Creditor (1241)
Payment to 3rd
PERSON (1241,
2nd par.)
In Case of
ACTIVE
SOLIDARITY
G VALID if 3rd
person proves
that
it
redounded
to
Cs benefit
Effect:
No extinguishment
If payment is made
to
a
WRONG
PARTY
OBLIGATIONS
Extinguishment if fault or
negligence can be imputed
to creditor
115
In GENERAL
The very prestation (thing or service
Debtor cannot compel C
to receive a different
specific thing even latter
has same value or more
valuable than that due
(1244)
G:
C cannot demand a thing of superior quality;
can demand inferior
D cannot deliver a thing of inferior quality
Obligation to give a
GENERIC thing
Obligation to DO or
NOT to DO
Payment of
MONEY
Payment of
INTEREST
116
OBLIGATIONS
Obligation to give a
SPECIFIC thing
Give:
1. Specific thing itself
2. Accessions & accessories
3. If with loss, improvements,
deterioration Apply Art.
1189
Exceptions:
1. Contrary stipulation
2. When debt is in part liquidated & in part
unliquidated
3. When there are several subjects/parties
are bound under different terms/conditions
In Case of SUBSTANTIAL
PERFORMANCE IN
GOOD FAITH (1234)
PRESUMPTIONS
in payment of
INTERESTS &
INSTALLMENTS
Prior
installments
are
presumed paid (1176, 2nd par.)
117
OBLIGATIONS
In GENERAL
1233 Complete delivery or rendering
1248 C cannot be compelled to
received partial prestations; D cannot
be compelled to give partial payments
In GENERAL
In the place designated in the obligation
Expenses
Payment
of
Making
In GENERAL
Extrajudicial
expenses
required by the payment
shall be borne by DEBTOR
Unless otherwise
stipulated
As to JUDICIAL expenses
Rules of Court shall
govern
118
OBLIGATIONS
If no place is designated
If obligation is to deliver a
SPECIFIC thing
Place of performance is
wherever the thing was at
the moment obligation was
constituted
Unless there is a
contrary
express
stipulation
- end of Obligations -
119
OBLIGATIONS
In GENERAL
Payment to be made when the creditor
makes
a
demand
(judicially/extrajudicially)
TABLE of CONTENTS
CONTRACTS
Table of Contents
Chapter I. General Provisions.....................122
I.
Classification of Contracts.................122
II.
Elements of Contracts.......................123
III. Stages of Contracts...........................123
IV. Charactertics of Contracts (MARCO) 123
121
CONTRACTS
Leo Ledesma
Lead Writer
Krizel Malabanan
Ivy Velasco
Tin Reyes
Frances Domingo
Hazel Abenoja
Writers
CIVIL LAW
Kristine Bongcaron
Patricia Tobias
Subject Editors
ACADEMICS COMMITTEE
Kristine Bongcaron
Michelle Dy
Patrich Leccio
Editors-in-Chief
LECTURES COMMITTEE
Michelle Arias
Camille Maranan
Angela Sandalo
Heads
Katz Manzano Mary Rose Beley
Sam Nuez Krizel Malabanan
Arianne Cerezo Marcrese Banaag
Volunteers
LOGISTICS
Charisse Mendoza
SECRETARIAT COMMITTEE
Jill Hernandez
Head
Loraine Mendoza Faye Celso
Mary Mendoza Joie Bajo
Members
CLASSIFICATION
ELEMENTS
STAGES
CHARACTERISTICS
I.
Classification of Contracts
A. To formation:
1. Consensual: consent is enough; e.g.
sale
2. Real: consent and delivery is required;
e.g. deposit, pledge
3. Solemn or formal: special formalities are
required for perfection e.g. donation of
realty
B. To relation to other contracts:
1. Principal: may exist alone; e.g. lease
2. Accessory: depends on another contract
for its existence; e.g. guaranty
3. Preparatory: a preliminary step towards
the celebration of a subsequent
contract; e.g. agency
C. To nature of vinculum
1. Unilateral: only one party is bound by
the prestation; e.g. commodatum
2. Bilateral (synallagmatic): where both
parties are bound by reciprocal
prestations; e.g. sale
D. To fulfillment of prestations
1. Commutative: fulfillment is determined in
advance
2. Aleatory: fulfillment is determined by
chance
E. By equivalence of prestations
1. Gratuitous: no correlative prestation is
received by a party
2. Onerous: there is an exchange of
correlative prestations
3. Remuneratory: the prestation is based
on services or benefits already received
F. By the time of fulfillment
1. Executed: obligation is fulfilled at the
time contract is entered into
2. Executory: fulfillment does not take
place at the time the contract is made
G. To their purpose
122
CONTRACTS
To their designation
1. Nominate: the law gives the contract a
special designation or particular name
e.g. deposit
2. Innominate: the contract has no special
name
Article
1305,
Civil
Code.
INNOMINATE
CONTRACTS shall be regulated by the stipulations
of the parties, by the general provisions of Titles I
and II of [the Civil Code], by the rules governing the
most analogous nominate contracts, and by the
customs of the place.
Those
which
exist
only
Solemn
Real
Consensual
Consent, subject matter, causa
Formality
Delivery
None
Donationo
f personal
property
more than
P5K
Loan,
pledge
Others
if
B. AUTONOMY
The contracting parties may establish such
stipulations, clauses, terms and conditions as
they may deem convenient, provided they are
not contrary to law, morals, good customs,
public order, or public policy (Art. 1306).
C. RELATIVITY
Contracts take effect only between parties, their
assigns and heirs UNLESS, obligations arising
from the contract are not transmissible by their
(1) nature, (2) by stipulation or (3) by provision of
law. The heir is not liable beyond the value of
the property he received from the decedent. (Art.
1311)
Exception: Strangers may enforce the contract
in their favor in the ff. cases:
1. Stipulations Pour Autrui
If a contract should contain some stipulation
in favor of a third person, he may demand its
fulfilment provided he communicated his
123
CONTRACTS
Requisites:
a. Existence of a valid contract
b. Knowledge of the third person of the
existence of the contract; and
c. Interference by third person without
legal justification or excuse
Requisites:
a. There must be a stipulation in favor of a
third person
b. The stipulation must be part, not the
whole of the contract
c. The contracting parties must have
clearly and deliberately conferred a
favor upon a third person, NOT a mere
incidental benefit or interest.
d. The
third
person
must
have
communicated his acceptance to the
obligor before its revocation
e. No relation of agency exists between
any of the parties and the third person
favored
D. CONSENSUALITY
Contracts are perfected by mere consent and
from that moment, the parties are bound not only
to the fulfillment of what has been expressly
stipulated but also to all consequences which,
according to their nature, may be in keeping with
good faith, usage and law, (Art.1315) EXCEPT
real contracts, such as deposit, pledge and
commodatum, are not perfected until the
delivery of the object of the obligation.
(Tolentino)
E. OBLIGATORY FORCE
Art. 1159, Civil Code. Obligations arising from
contracts have the force of law between the
contracting parties and should be complied with in
good faith.
Art. 1308, Civil Code. The contract must bind both
contracting parties; its validity or compliance cannot
be left to the will of one of them.
Art. 1315, Civil Code. Contracts are perfected by
mere consent, and from that moment the parties are
bound not only to the fulfillment of what has been
expressly stipulated but also to all the consequences
which, according to their nature, may be in keeping
with good faith, usage and law.
Art. 1356, Civil Code. Contracts shall be obligatory,
in whatever form they may have been entered into,
provided all the essential requisites for their validity
are present. However, when the law requires that a
contract be in some form in order that it may be valid
or enforceable, or that a contract be proved in a
certain way, that requirement is absolute and
indispensable. In such cases, the right of the parties
stated in the following article cannot be exercised.
124
CONTRACTS
I.
Consent
Without consideration
Offeror may withdraw by
communicating withdrawal
to the offeree before
acceptance
B. Capacity
1. Incapacitated to Give Consent
a. Minors, UNLESS, the minors consent
is operative in contracts:
For necessaries (Art.1427)
Where
the
minor
actively
misrepresents his age (estoppel)
125
CONTRACTS
Disqualification
to
Contract (Art.1329)
Restrains the very right
itself
Based on public policy
and morality
Voidable
Void
Mistake of Law
Mutual Mistake
When one or
both contracting
parties believe
that a fact exists
when in reality it
does not, or vice
versa
When one or
both
parties
arrive at an
erroneous
conclusion on
the
interpretation of
a question of
law or the legal
effects
Must be as
to the legal
effect of an
agreement
Must
be
mutual
Real purpose
of the parties
must
have
been
frustrated
2. Intimidation
When one of the contracting parties is
compelled by a reasonable and wellgrounded fear of an imminent and grave evil
upon his person or property, or upon the
person or property of his spouse,
descendants or ascendants, to give his
consent (Art. 1335).
Martinez v. HSBC, 1910: The conveyance of several
properties by to her husbands creditors, though
reluctant is still consent. She assented to the
requirements of the defendants, the civil and criminal
actions against them would be dropped. A contract is
valid even though one of the parties entered into it
against his wishes and desires, or even against his
better judgment. Contracts are also valid even though
they are entered into by one of the parties without
hope of advantage or profit.
3. Violence
Irresistible force used to extort consent
(J.B.L. Reyes)
4. Undue Influence
When a person takes improper advantage of
his power over the will of another, depriving
the latter of a reasonable freedom of choice
(Art. 1337).
Circumstances:
a. Relationship of the parties (family,
spiritual, confidential etc.)
b. That the person unduly influenced was
suffering
from
infirmity
(mental
weakness, ignorance etc.) (Art.1337)
5. Fraud
When
through
insidious
words
or
machinations of one of the contracting
parties, the other is induced to enter into a
contract which, without them, he would not
have agreed to (Art. 1338).
Art. 1339, Civil Code. Failure to disclose facts, when
there is a duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.
Art. 1340, Civil Code. The usual exaggerations in
trade, when the other party had an opportunity to
know the facts, are not in themselves fraudulent.
Art. 1341, Civil Code. A mere expression of an
opinion does not signify fraud, unless made by an
expert and the other party has relied on the former's
special knowledge.
Art. 1342, Civil Code. Misrepresentation by a third
person does not vitiate consent, unless, such
misrepresentation has created substantial mistake
126
CONTRACTS
Relative
Real transaction is hidden
Disguised contract
Bound
as
to
hidden
agreement, so long as it
does not prejudice a third
person and is not contrary
to law, morals, good
customs, public order or
public policy
II. Object
The thing right or service which is the subject
matter of the obligation arising from the contract.
Requisites:
a. Lawful: Not contrary to law, morals, good
customs, public order or public policy.
b. Actual or possible
c. Transmissible: Within the commerce of man
d. Determinate or determinable
All things or services may be the object of
contracts, EXCEPT:
Things which are outside the commerce of
men
Intransmissible rights
Future inheritance except in cases
authorized by law
Impossible things or services
Objects which are indeterminable as to their
kind, the genus should be expressed
In order that a thing, right or service may be the
object of a contract, it should be in existence at
the moment of the celebration of the contract, or
at least, it can exist subsequently or in the
future.
A FUTURE THING may be the object of a
contract, such contract may be interpreted as a:
Conditional contract: where its efficacy
should depend upon the future existence of
the thing
III. Cause
It is the impelling reason for which a party
assumes an obligation under a contract.
Requisites:
a. Existing
b. Licit or Lawful
c. True
127
Cause in:
Onerous
Contracts
As to each of
the contracting
parties
is
understood to
be
the
undertaking or
the promise of
the thing or
service by the
other party
Renumeratory
Contracts
The
service
benefit which
remunerated
or
is
Pure
Beneficence
Mere
liberality of
the
benefactor
of
Illegality
Cause
of
Falsity
cause
of
Lesion
or
inadequacy
of cause
Defined
Absence or total
lack of cause
Contrary to law,
morals,
good
customs, public
policy
and
public order
Cause is stated
but is untrue
Cause is not
proportionate to
object
Effect
The
contract
confers no right
and has no legal
effect
Null and Void
Void if it should
not be proved that
it was founded
upon
another
cause which was
true and lawful
Shall not invalidate
the
contract
except when
CONTRACTS
128
CONTRACTS
I.
Rules
Exceptions:
When the law requires that a contract be in
some form for validity (Arts. 1357-1358)
When the law requires that contract be in
some form to be enforceable (Statute of
Frauds)
129
CONTRACTS
Principal
Objects
Gratuitous
Contracts
Onerous
Contracts
Doubts where
it cannot be
known what
may
have
been
the
intention
or
will of the
parties,
the
contract shall
be null and
void.
Absolutely
impossible
to
settle doubts by
the rules and
only refer to
incidental
circumstances
the
least
transmission
of rights and
interests shall
prevail.
Absolutely
impossible
to
settle doubts by
the rules and
only
refer
to
incidental
circumstances
the doubt shall
be settled in
favor of the
greatest
reciprocity
of
interests.
130
CONTRACTS
I.
Effect
on
the
Contract
How to rescind?
When to rescind
(Art 1389)
Contracts of
guardians
Contracts in
representation
of absentees
Contracts are
entered into to
defraud existing
creditors
131
Contracts refer
to things in
litigation
NO rescission if:
1. Injured party has other legal
means to obtain reparation (Art
1383).
2. Plaintiff cannot return his part of
the obligation (Art 1385 par 1)
3. Object of the contract is in the
hands of third person, onerously
acquired by him in good faith (Art
1385 par 2)
4. If the court approves the
contracts under Art 1381 par 1
and 2 (Art 1386)
In general, by By absentee
injured party
NO rescission if:
1. Injured party has other legal means to
obtain reparation (Art 1383)
2. Plaintiff cannot return his part of the
obligation (Art 1385 par 1)
3. Object of the contract is in the hands of
third person, onerously acquired by
him in good faith (Art 1385 par 2)
By ward, or by
guardian ad litem
of ward during
incapacity of ward
in
an
action
against
the
original guardian
Within four years
from [re-] gaining
capacity
Within 4 years
from knowledge
of domicile of
absentee
If entered into by
the
defendant
without
the
knowledge
&
approval of the
litigants
or
competent judicial
authority
By creditor(s)
By party litigant
Within 4 years
from knowledge of
fraudulent contract
CONTRACTS
I.
II.
III.
IV.
Who can/cannot
annul?
(Art 1397)
Effect
Annulment
of
How to
Cure
Defect?
(Arts
1392 - 1396)
132
CONTRACTS
What makes it
defective?
(Art
1390)
Effect on the
Contract
How to annul?
Contracts
covered
by
Statute of Frauds which
did not comply with the
written
memorandum
requirement
(See Art 1403 par 2)
Effect on the
Contract
How to assail?
How to
Defect?
1403)
1. Ratification by person
whose
name
the
contract was entered
into
Cure
(Art
guardians
The ratification by
one party converts
the contract into a
voidable contract (Art
1407)
133
CONTRACTS
Contracts which
are inconsistent
and void from the
beginning
(Art
1409)
How to assail?
When?
Inexistent contracts, or
contracts whose essential
elements are absent
(Art Art 1409 par 2, 3, 4,5)
Contracts expressly
prohibited or declared
void by law (Art 1409
par
7);
contracts
which
are
direct
results of a previous
illegal contract (art
1422)
1.Those whose Cause, Object of Purpose is contrary to morals, good customs,
public order or public policy
2.Those which are absolutely simulated or fictitious
3.Those whose cause or object did not exist at the time of the transaction
4.Those whose object is outside the commerce of men
5.Those which contemplate an impossible service
6.Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained
7.Those expressly prohibited or declared void by law
- end of Contracts -
134
CONTRACTS
What makes
defective?
TABLE of CONTENTS
PROPERTY
Table of Contents
Chapter VII. Usufruct ................................... 181
I.
Concept............................................. 181
II.
Characteristics .................................. 181
III. Usufruct Distiguished from Lease and
Servitude.................................................... 181
IV. Classes of Usufruct........................... 182
V. Rights of Usufructuary ...................... 184
VI. Rights of the Naked Owner............... 186
VII.
Obligations of the Usufructuary .... 187
VIII.
Special Cases of Usufruct ............ 190
IX. Extinguishment of Usufruct............... 192
X. Conditions Not Affecting Usufruct..... 194
Chapter VIII. Easement ................................ 196
I.
Concept............................................. 196
II.
Essential Features ............................ 196
III. Classification of Servitudes............... 197
IV. General Rules Relating to Servitudes
198
V. Modes of Acquiring Easements ........ 198
VI. Rights and Obligations of Owners of
Dominant and Servient Estates ................. 199
VII.
Modes
of
Extinguishment
of
Easements................................................. 200
VIII.
Legal Easements .......................... 202
Chapter IX. Nuisance ................................... 212
I.
Definition ........................................... 212
II.
Classes ............................................. 212
III. Liability in Case of Nuisance............. 213
IV. Regulation of Nuisances ................... 214
Chapter X. Modes of Acquiring Ownership
....................................................................... 217
I.
Mode v. Title ..................................... 217
II.
Mode ................................................. 217
Chapter XI. Donation ................................... 222
I.
Nature ............................................... 222
II.
Requisites ......................................... 222
III. Kinds ................................................. 222
IV. Who May Give or Receive Donations
223
V. Who May Not Give or Receive
Donations................................................... 224
VI. Acceptance ....................................... 225
VII.
Form ............................................. 225
VIII.
What May Be Donated ................. 225
IX. Effect ................................................. 226
X. Revocation and Reduction................ 227
Chapter XII. Lease........................................ 232
I.
General Characteristics .................... 232
II.
Kinds ................................................. 232
III. Lease of Things ................................ 232
136
PROPERTY
Michelle Go
Lead Writer
Erika Esperas
Katrina Michelle Mancao
Celie Mari Santos
Writers
CIVIL LAW
Kristine Bongcaron
Patricia Tobias
Subject Editors
ACADEMICS COMMITTEE
Kristine Bongcaron
Michelle Dy
Patrich Leccio
Editors-in-Chief
LECTURES COMMITTEE
Michelle Arias
Camille Maranan
Angela Sandalo
Heads
Katz Manzano Mary Rose Beley
Sam Nuez Krizel Malabanan
Arianne Cerezo Marcrese Banaag
Volunteers
LOGISTICS
Charisse Mendoza
SECRETARIAT COMMITTEE
Jill Hernandez
Head
Loraine Mendoza Faye Celso
Mary Mendoza Joie Bajo
Members
I.
Definition
II. Classification
A. UNDER THE CIVIL CODE
Article 414, Civil Code. All things which are or may
be the object of appropriation are considered either:
1. Immovable or real property; or
2. Movable or personal property.
137
PROPERTY
PROPERTY TEAM
PROPERTY
7.
8.
9.
10.
Immovables by Nature
Those which cannot be moved from place to
place; their intrinsic quality have no utility except
in a fixed place (Par. 1 & 8)
1. Par. 1: Lands, building, roads and
constructions
a. Buildings
To be considered a building, their
adherence to the land must be
permanent and substantial.
Buildings have been considered as
immovables, despite:
Treatment by the parties e.g.
they constitute a separate
mortgage on the building and
the
land
(Punzalan
v.
Lacsamana)
Separate Ownership i.e. a
building on rented land is still
considered
an
immovable.
(Tolentino)
2. Par. 8: Mineral deposits and waters
a. Mineral Deposits
Minerals still deposited in the soil
When
minerals
have
been
extracted, they become chattel.
b. Slag Dump: dirt and soil taken from a
mine and piled upon the surface of the
ground. Inside the dump can be found
the minerals.
c. Waters: those still attached to or running
thru the soil or the ground.
Immovables by Incorporation
Those which are essentially movables but are
attached to an immovable in such a way as to be
an integral part thereof (Par. 2, 3, 4, 6 & 7)
1. Par. 2: Trees and plants
a. Trees and plants: only immovables
when they are attached to the land or
form an integral part of an immovable
When they have been cut or
uprooted, they become movables.
Immovables by Destination
Those which are essentially movables but by the
purpose for which they have been placed in an
immovable, partake of the nature of an
immovable because of the added utility derived
therefrom (Par. 4, 5, 6 & 9)
1. Par. 4: Fixtures and ornaments
Requisites:
a. Placed by the owner or by the tenant as
agent of the owner;
b. With intention of attaching them
permanently even if adherence will not
involve breakage or injury.
Where the improvement or ornaments
placed by the lessee are not to pass to the
owner at the expiration of the lease, they
remain movables for chattel mortgage
purposes. (Davao Sawmill v. Castillo)
2. Par. 3 v. Par. 4
Par. 3
Par. 4
Cannot be separated from Can be separated from
immovable
without immovable
without
breaking or deterioration
breaking or deterioration
Must be placed by the
Need not be placed by the
owner, or by his agent,
owner
expressed or implied
Real
property
by
Real
property
by
incorporation
and
incorporation
destination
138
PROPERTY
utilized)
they
recover
their
condition as movables.
If it is still needed for the industry
but separated from the tenement
temporarily, the property continues
to be immovable.
b. Requisites for Immovability in Par. 5:
Placed by the owner or the tenant
as agent of the owner;
Adapted to the needs of the industry
or work carried on
EXCEPT: When estoppel operates
Parties to a contract may by agreement
treat as personal property that which by
nature would be real property, as long
as no interest of third parties would be
prejudiced. That characterization is
effective as between the parties.
(Makati Leasing v. Wearever)
c.
EFFECT of Attachment
Machinery become part of the
immovable.
The installation of machinery and
equipment in a mortgaged sugar
central for the purpose of carrying
out the industrial functions of the
latter and increasing production,
constitutes
a
permanent
improvement on said sugar central
and subjects said machinery and
equipment
to
the
mortgage
constituted thereon. (Berkenkotter
v. Cu Unjieng)
139
PROPERTY
140
PROPERTY
B. CLASSIFICATION BY OWNERSHIP
Article 419, Civil Code. Property is either of public
dominion or of private ownership.
Classifications
1. Administered by the State
a. For public usemay be used by
everybody, even by strangers or aliens,
in accordance with its nature but nobody
can exercise over it the rights of a
private owner.
b. For public servicemay be used only by
authorized persons but exists for the
benefit of all e.g. fortresses, unleased
mines and civil buildings
c. For development and national wealth
includes natural resources such as
minerals, coal, oil and forest
2. Administered by Municipal Corporations
Article 424, Civil Code. Property for public use, in
the provinces, cities, and municipalities, consist of
the provincial roads, city streets, municipal streets,
the squares, fountains, public waters, promenades,
and public works for public service paid for by said
provinces, cities, or municipalities.
Public Domain
Public Lands
PRIVATE OWNERSHIP
Can be exercised by the State in its private
capacity or by private persons
Patrimonal Property of the State
Article 421, Civil Code. All other property of the
State, which is not of the character stated in the
preceding article, is patrimonial property.
141
PROPERTY
Patrimonial
Property
Corporations
of
Municipal
individually
property)
or
collectively
(co-owned
CONVERSION
Alienable Public Land converted to Private
Property through Prescription
Alienable public land held by a possessor
personally/through predecessors-in-interest,
openly, continuously and exclusively for 30
years is CONVERTED to private property by
the mere lapse or completion of the period.
The application for confirmation is mere
formality, because land had already been
converted, giving rise to a registrable title.
(Director of Lands v. IAC)
See New Law
Private Land converted to Property of Public
Dominion
through
abandonment
and
reclamation
Through the gradual encroachment or
erosion by the ebb and flow of the tide,
private property may become public IF the
owner appears to have ABANDONED the
land, and permitted it to be totally destroyed
so as to become part of the shore. The land
having disappeared on account of the
gradual erosion, and having remained
submerged until they were reclaimed by the
government,
they
are
public
land.
(Government v. Cabangis)
C. OTHER CLASSIFICATIONS
By their physical existence
1. Corporeal
All property the existence of which can be
determined by the senses (res qui tangi
possunt)
2. Incorporeal
a. Things having abstract existence,
created by man and representing value.
b. Includes rights over incorporeal things,
credits, and real rights other than
ownership over corporeal things.
By their autonomy or dependence
1. Principal
Those to which other things are considered
dependent or subordinated, such as the land
on which a house is built.
2. Accessory
Those which are dependent upon or
subordinated to the principal. They are
destined to complete, enhance or ornament
another property.
142
PROPERTY
1. Consumable
a. Those whose use according to their
nature destroys the substance of the
thing or causes their loss to the owner.
(ex: food)
b. Consumable goods cannot be the
subject matter of a contract of
commodatum unless the purpose of
the contract is not the consumption of
the object, as when it is merely for
exhibition.
2. Non-consumable e.g. money in coin
Susceptibility to substitution
1. Fungibles
Things which because of their nature or the
will of the parties, are capable of being
substituted by others of the same kind, not
having a distinct individuality.
2. Non-Fungibles
Things which cannot be substituted for
another
Consumable v. Fungible: It is the intention
of the parties to a contract which determines
whether the object is fungible or nonfungible and not the consumable or nonconsumable nature of the thing.
By susceptibility to deterioration
1. Deteriorable that deteriorate through use or
by time
2. Non-deteriorable
By reason of their susceptibility to division
1. Divisible
Those which can be divided physically or
juridically without injury to their nature. E.g.:
piece of land or an inheritance.
2. Indivisible
Those which cannot be divided without
destroying their nature or rendering
impossible the fulfillment of the juridical
relation of which they are object.
By reason of designation
1. Generic
That which indicates its homogenous nature,
but not the individual such as a horse,
house, dress, without indicating it.
2. Specific
That which indicates the specie or its nature
and the individual, such as the white horse
of X.
Existence in point of time
1. Present
Those which exist in actuality, either
physical or legal, such as, the erected
building.
2. Future
Those which do not exist in actuality, but
whose existence can reasonably be
expected with more or less probability, such
as ungathered fruits.
143
PROPERTY
I.
II.
III.
IV.
DEFINITION
BUNDLE OF RIGHTS IN OWNERSHIP
SPECIFIC RIGHTS OF THE OWNER
LIMITATIONS
ON
THE
RIGHTS
OWNERSHIP
I.
Definition
OF
Independent
right
of
exclusive
enjoyment and control of a thing
For the purpose of deriving all
advantages required by the reasonable
needs of the owner/holder of right and
promotion of general welfare
A thing pertaining to one person
Completely subjected to his will
In everything not prohibited by public
law or the rights of another
144
PROPERTY
Right to Accession
Article 440, Civil Code. The ownership of property
gives the right by accession to everything which is
produced thereby, or which is incorporated or
attached thereto, either naturally or artificially.
145
PROPERTY
IV. Limitations
Ownership
on
Real
Right
of
2. Specific Limitations
a. Legal Servitudes: once requisites are
satisfied, the servient owner may ask
the Court to declare the existence of an
easement
Art. 644 & 678: Aqueduct
Art. 679: Planting of trees
Art. 670: Light and View
Art. 649 & 652: Right of Way
Art. 637: Passage of water from upper
to lower tenements
Art. 676: Drainage of buildings
Art. 684-687: Lateral and subjacent
support
b. Must not injure the rights of a third
person
Sic Utere Tuo Ut Alienum Non
Laedas
The owner of a thing cannot make use
thereof in such manner as to injure the
rights of a third person. [Art. 431, Civil
Code]
c. Act in State of Necessity
The owner of a thing has no right to
prohibit the interference of another with
the same, if the interference is
necessary to avert an imminent danger
and the threatened damage, compared
to the damage arising to the owner from
the interference, is much greater. The
owner may demand from the person
benefited, indemnity for the damage to
him. [Art. 432, Civil Code]
146
PROPERTY
I.
II.
III.
IV.
V.
DEFINITION
GENERAL PRINCIPLES OF ACCESSION
KINDS OF ACCESSION
PRINCIPLES APPLICABLE TO EACH
A. PRINCIPLES
APPLICABLE
ACCESSION DISCRETA
B. PRINICPLES
APPLICABLE
ACCESSION CONTINUA
ACCESSION OVER MOVABLES
I.
Definition
TO
TO
147
PROPERTY
Bad faith
Acquire BPS after paying its value and paying
indemnity for damages (Article 447) but subject to
OMs right to remove
Good faith
Right to acquire the improvements without paying
indemnity
Right to acquire indemnity for damages if there are
hidden defects known to OM
Bad faith
Same as though acted in good faith under Article 453
Owner of Material
Good faith
Bad faith
Case 2: BPS builds, plants, or sows on anothers ;and using his own materials
Landowner
Good faith
148
PROPERTY
Bad faith
149
Good faith
Bad faith
Case 3: BPS builds, plants or sows on anothers land with materials owned by third persons
Landowner
Good faith
BPS
Good faith
Owner of Material
Good faith
Good faith
Bad faith
Bad faith
Bad faith
Bad faith
Bad faith
PROPERTY
disagreement.
NOTE: Landowner can be forced to choose under pain
of direct contempt or court can choose for him.
Good faith
Good faith
Good faith
Bad faith
Good faith
Bad faith
Pay damages to OM
Good faith
Good faith
Bad faith
No right to indemnity
150
PROPERTY
Bad faith
c.
d. FORMATION OF ISLANDS
Belong to the State if:
o Formed on the SEAS within the
jurisdiction of the Philippines
o Formed on LAKES
o Formed on NAVIGABLE or
FLOATABLE RIVERS
Capable of affording a
channel or passage for
ships and vessels
Must be sufficient not only
to float bancas and light
boats, but also bigger
watercraft
Deep enough to allow
unobstructed movements of
ships and vessels
TEST: can be used as a
highway of commerce, trade
and travel
Belong to the Owners of the nearest
margins or banks if
o Formed through successive
accumulation of alluvial deposits
o On
NON-NAVIGABLE
and
NON-FLOATABLE RIVERS
If island is in the middle:
divided longitudinally in half.
151
PROPERTY
I.
II.
III.
IV.
V.
IN GENERAL
PURPOSE
NATURE
REQUISITES
A. THERE IS A CLOUD ON TITLE TO REAL
PROPERTY
B. THE PLAINTIFF MUST HAVE LEGAL OR
EQUITABLE TITLE TO OR INTEREST IN
THE PROPERTY
C. PLAINTIFF
MUST
RETURN
THE
BENEFITS
RECEIVED
FROM
THE
DEFENDANT
PRESCRIPTION
I.
In General
II. Purpose
1. To declare:
a. The invalidity of a claim on a title
b. The invalidity of an interest in property
2. To free the plaintiff and all those claiming
under him any hostile claim on the property.
IV. Requisites
REQUISITES OF AN ACTION TO QUIET
TITLE
1. There is a CLOUD on title to real property or
any interest to real property.
2. The plaintiff must have legal or equitable title
to, or interest in the real property.
3. Plaintiff must return the benefits received
from the defendant.
A. There is a CLOUD on title to real property
or any interest to real property
1. Cloud on title means a semblance of title,
either legal or equitable, or a claim or a right
in real property, appearing in some legal
form but which is, in fact, invalid or which
would be inequitable to enforce.
2. A cloud exists if:
a. There is a claim emerging by reason of:
Any instrument e.g. a contract, or
any deed of conveyance, mortgage,
assignment, waiver, etc. covering the
property concerned
Any record, claim, encumbrance
e.g. an attachment, lien, inscription,
adverse claim, lis pendens, on a title
Any proceeding e.g. an extrajudicial
partition of property
152
PROPERTY
V. Prescription of Action
1. When plaintiff is in possession of the
property the action to quiet title does not
prescribe.
a. The reason is that the owner of the
property or right may wait until his
possession is disturbed or his title is
153
PROPERTY
I.
II.
DEFINITION
CHARACTERTISTICS
A. THERE IS A PLURALITY OF OWNERS
BUT ONLY ONE REAL RIGHT OR
OBJECT OF OWNERSHIP.
B. THE RECOGNITION OF IDEAL SHARES
OR ALIQUOT DEFINED BUT NOT
PHYSICALLY IDENTIFIED
C. EACH CO-OWNER HAS ABSOLUTE
CONTROL OVER HIS IDEAL SHARE
D. MUTUAL RESPECT AMONG CO-OWNERS
IN REGARD TO USE, ENJOYMENT AND
PRESERVATION OF THE THINGS AS A
WHOLE.
III. DIFFERENCE BETWEEN CO-OWNERSHIP
AND JOINT TENANCY
IV. DIFFERENCE BETWEEN CO-OWNERSHIP
AND PARTNERSHIP
V. SOURCES OF CO-OWNERSHIP
A. LAW
1. COHABITATION
2. PURCHASE
3. INTESTATE SUCCESSION
4. DONATION
5. CHANCECOMMIXTION IN GOOD
FAITH
6. HIDDEN TREASURES
7. EASEMENT OF PARTY WALL
8. OCCUPATIONHARVESTING
AND
FISHING
9. CONDOMINIUM LAW
B. CONTRACTS
1. BY AGREEMENT OF 2 OR MORE
PERSONS
2. BY UNIVERSAL PARTNERSHIP
3. BY ASSOCIATION AND SOCIETIES
WITH SECRET ARTICLES
VI. RIGHTS OF EACH CO-OWNER OVER THE
THING OR PROPERTY OWNED IN COMMON
A. TO USE THE THING ACCORDING TO THE
PURPOSE INTENDED
B. TO SHARE IN THE BENEFITS IN
PROPORTION
TO
HIS
INTEREST,
PROVIDED THE CHARGES ARE BORNE
BY EACH IN THE SAME PROPORTION
C. TO BRING AN ACTION IN EJECTMENT
D. TO COMPEL THE OTHER CO-OWNERS
TO CONTRIBUTE TO THE EXPENSES
FOR THE PRESERVATION OF THE
PROPERTY OWNED IN COMMON AND TO
THE PAYMENT OF TAXES
E. TO OPPOSE ANY ACT OF ALTERATION
F. TO PROTEST AGAINST ACTS OF
MAJORITY WHICH ARE SERIOUSLY
PREJUDICIAL TO THE MINORITY
G. TO EXERCISE LEGAL REDEMPTION
H. TO ASK FOR PARTITION
VII. IMPLICATIONS OF CO-OWNERS RIGHT
OVER HIS IDEAL SHARE
A. RIGHTS OF A CO-OWNER
B. EFFECT OF TRANSACTION BY EACH COOWNER
VIII. RULES
ON
CO-OWNERSHIP
NOT
I.
Definition
II. Characteristics
A. There is a plurality of owners but only
one real right or object of ownership
1. There are at least 2 persons
2. There is unity or material indivision of a
single object.
B. There are ideal shares defined but not
physically identified
Article 485, Civil Code. The share of the coowners, in the benefits as well as in the charges,
shall be proportional to their respective interests.
Any stipulation in a contract to the contrary shall be
void.
The portions belonging to the co-owners in the coownership shall be presumed equal, unless the
contrary is proved.
154
PROPERTY
Chapter V. Co-Ownership
Chapter V. CO-OWNERSHIP
Chapter V. CO-OWNERSHIP
Co-ownership
Joint Tenancy
Origin
Civil Law
Common Law
Other names
Tenancy in Common,
Joint ownership,
ownership in common,
all for one, one for all
Co-dominium
Extent of ownership
Every joint tenant owns
Each co-owner owns
the whole property
undivided thing + own
because their rights are
ideal part/share of each
inseparable
Right to dispose of share
A joint tenant may not
dispose of his
Each co-owner may
share/interest without the
dispose of his undivided
consent of others
share without the consent
(rationale: he may
of others.
prejudice the others by
alienating his share)
Effect of death
The ownership of a joint
tenant dies with him, and
his surviving joint tenants
The share of a co-owner
are subrogated to his
descends to his heirs
rights by virtue of jus
accrescendi
(survivorship)
Effect of legal disability/incapacity
Defense of one can be
Defense against
used by all, as
prescription is exclusive
disability/incapacity
to the co-owner with
inures to the benefit of
disability/incapacity
the others for purposes of
prescription
Co-ownership
Co-ownership
Partnership
Creation
By law, fortuitous event,
occupancy, succession
Only by contract
or contract (no formalities
of a contract necessary)
Legal personality
Partnership has a distinct
Co-ownership has no
personality from the
legal personality
partners
Purpose
Collective enjoyment of
Profit or advancement of
the property
pecuniary interest
Disposal of share
A partner may not
Each co-owner may
dispose of his
dispose of his undivided
share/interest or transfer
rd
share without the consent
the same to a 3 person
of others
without the consent of
others
Mutual representation
No mutual representation
Generally, a partner
(except if there is a
binds other partners
special authority for such
(there is mutual
representation)
representation)
Effect of legal disability/ incapacity/ death
Does not dissolve the coDissolves partnership
ownership
Profit distribution
Must be proportional to
Depends upon the
the interest of each costipulation in their
owner (not subject to
contract
stipulation)
Duration
General rule: an
agreement to keep the
No term limit set by law
ownership for more than
10 years is void
Attachment
Creditors of a partner
Creditors of a co-owner
cannot attach and sell on
can attach on the shares
execution the shares of
of others
other partners in the
partnership
V. Sources of Co-Ownership
A. Law
1. Cohabitation:
co-ownership
between
common law spouses
The Family Code, in the following
provisions, made the rules on coownership apply
Article 147: between a man and a
woman capacitated to marry each
other
155
PROPERTY
Chapter V. CO-OWNERSHIP
156
PROPERTY
Chapter V. CO-OWNERSHIP
157
PROPERTY
c.
Use must not prevent the other coowners from making use of the property
according to their own rights.
Chapter V. CO-OWNERSHIP
158
PROPERTY
4. Alteration v. Administration
Alteration
More permanent result
and relate to the
substance or form of
the thing
Nature: if the thing
does not require any
modification for its
enjoyment, any
modification that is
made will be
considered an
alteration
Consent: Unanimous
consent of all
Administration
Refers to the
enjoyment of the thing
and is of transitory
character
When the thing in its
nature requires
changes, modifications
can be considered as
acts of simple
administration
Consent: mere majority
is sufficient
1. Acts of administration
a. Acts of management that do not involve
alteration of the property
b. Acts which are temporary in character
so much so that they do not bind the
property for a long time
c. Acts that do not create real rights over
the common property
2. Rule:
If there is a disagreement or conflict of
opinions by and among the co-owners
on the matter of administration and
better enjoyment of the common
property, the resolution of the co-owners
159
PROPERTY
4. Procedure:
Embellishment
or
improvements
a. Notify co-owners of improvements and
embellishments to be made
If no notification is made, the co-owner
who advanced the expenses still has
the right to be reimbursed if he proves
the necessity of such repairs and the
reasonableness of the expense
EXCEPTION: If the others can prove
that had he notified them, they could
have hired the services of another
who would charge less than the
people with whom the one who
advanced contracted or that they
know of a store that sells the needed
material at a cheaper price
o Co-owner only entitled to be
reimbursed for the amount that
should have been spent had he
notified
the
others,
and
difference shall be borne by him
alone
b. Decision by majority must be followed
Chapter V. CO-OWNERSHIP
Chapter V. CO-OWNERSHIP
160
PROPERTY
VIII. Rules
on
Co-Ownership
Applicable to CPG or ACP
Not
161
PROPERTY
Chapter V. CO-OWNERSHIP
b.
c.
d.
e.
f.
d.
e.
f.
h.
162
PROPERTY
Chapter V. CO-OWNERSHIP
Chapter V. CO-OWNERSHIP
property.
b.
c.
d.
e.
f.
g.
163
PROPERTY
5.
d.
e.
f.
164
PROPERTY
Chapter V. CO-OWNERSHIP
b.
c.
Chapter V. CO-OWNERSHIP
d.
e.
165
PROPERTY
Concept of Condominium
It is an interest in real property consisting of a:
1. SEPARATE INTEREST in a unit in a
a. residential, or
b. industrial, or
c. commercial building
2. UNDIVIDED INTEREST in common directly
or indirectly,
a. in the land on which it is located
b. in other common areas of the building
When Ownership of the Unit is Acquired
1. Ownership is acquired only after the buyer
had fully paid the purchase price.
2. The ownership of the unit is what makes the
buyer a shareholder in the condominium.
Note: The condominium law effectively
separates the building from the land (by a
master deed)
3. Building is deemed an accessory
Amendments
Co-ownership in common areas means shared
expenses in these areas
1. Sec 4: simple majority of the property
2. Sec 16: common areas may be disposed by
affirmative vote of a simple majority of the
registered owners
Chapter V. CO-OWNERSHIP
X. Extinguishment of Co-Ownership
A. Total destruction of thing or loss of the
property co-owned
Is there still co-ownership if a building is
destroyed?Yes, over the land and the
debris.
B. Merger of all interests in one person
C. Acquisitive Presciption
By whom
1. A third person (Art. 1106)
2. A co-owner against the other co-owners
Requisites
1. Unequivocal acts of repudiation of the rights
of the other co-owners (you oust the other
co-owners)
a. Must be shown by clear and convincing
evidence
b. Must be within the knowledge of the
other co-owners
c. Must not be a mere refusal to recognize
the others as co-owners
2. Open and adverse possession - Not mere
silent possession
Note: there is a presumption that
possession of a co-owner is NOT adverse
Prescription only arises and produces all
effects when the acts are clearly meant
to oust the rights of the other co-owners
D. Partition or Division
Effects of Partition
1. Confers upon each heir the exclusive
ownership of the property adjudicated to him
166
PROPERTY
Chapter V. CO-OWNERSHIP
Creditors
of
Individual
Co-
167
PROPERTY
I.
II.
I.
Definition
Concept of Possession
1. To possess, in a grammatical sense, means
to have, to physically and actually occupy a
thing, with or without right. (Sanchez
Roman)
Right to possess
(jus possidendi)
Incident to ownership
168
PROPERTY
169
PROPERTY
Faith
and
170
PROPERTY
and/or
non-
171
PROPERTY
Note:
Bad
faith
is
personal
and
intransmissible. Its effects must be
therefore, be suffered only by the person
who acted in bad faith; his heir should
not be saddled with the consequences
Good faith can only benefit the person
who has it; and the good faith of the heir
cannot erase the effects of bad faith of
his predecessor.
Article 534, Civil Code. On who succeeds by
hereditary title shall not suffer the consequences of
the wrongful possession of the decedent, if it is not
shown that he was aware of the flaws affecting it;
but the effects of possession in good faith shall not
benefit him except from the date of the death of the
decedent.
Qualifiedly,
persons
minors
and
incapacitated
172
PROPERTY
General Rule
Possession cannot be recognized in two
different personalities, except in cases of copossession by co-possessors without conflict of
claims of interest.
In case of conflicting possession
preference is given to
1. Present possessor or actual possessor
2. If there are two or more possessors, the one
longer in possession
3. If the dates of possession are the same, the
one who presents a title
4. If all conditions are equal, the thing shall be
placed
in
judicial
deposit
pending
determination of possession or ownership
through proper proceedings
VIII.
Effects of Possession
173
PROPERTY
or
174
PROPERTY
C. Reimbursement
for
Expenses
Possessor in Good Faith/Bad Faith
Article 546, Civil Code. Necessary expenses shall
be refunded to every possessor; but only the
possessor in good faith may retain the thing until he
has been reimbursed therefor.
Useful expenses shall be refunded only to the
possessor in good faith with the same right of
retention, the person who has defeated him in the
possession having the option of refunding the
amount of the expenses or of paying the increase in
value which the thing may have acquired by reason
thereof.
Necessary Expenses
1. Imposed by the thing itself and have no
relation to the desire or purpose of the
possessor; hence they are reimbursed,
whatever may be the juridical character of
the person who advanced them.
2. They are the cost of living for the thing and
must be reimbursed to the one who paid
them, irrespective of GF or BF. Only a
possessor in GF is entitled to retain the thing
until he is reimbursed
3. Those imposed for the preservation of the
thing.
They
are
not
considered
improvements; they do not increase the
value of the thing, but merely prevent them
from becoming useless.
Useful Expenses
1. Incurred to give greater utility or productivity
to the thing
2. e.g. Wall surrounding an estate, an irrigation
system, planting in an uncultivated land, a
fishpond, an elevator in the building, electric
lighting system
3. They are reimbursed only to the possessor
in GF as a compensation or reward for him.
Possessor in BF cannot recover such
expenses
175
PROPERTY
Useful Expenses
Those which increase the
income derived from the
thing
Result: Increase in the
products, either
absolutely, or because of
greater facilities for
producing them
Includes expenses
resulting in real benefit or
advantage to the thing
The resulting utility is
essential and absolute, to
all who may have the
thing.
Fruits Received
Pending Fruits
Charges
Necessary
Expenses
Result: Benefit or
advantage is only for the
convenience of definite
possessors
Possessor in GF
Entitled to the fruits while possession is in GF
and before legal interruption (544)
Entitled to part of the expenses of cultivation,
and to a part of the net harvest, in proportion
to the time of the possession.
Indemnity may be, at the owners option,
1. In money, OR
2. By allowing full cultivation and gathering
of the fruits (545)
Must share with the legitimate possessor, in
proportion to the time of the possession (545)
Right to reimbursement and retention in the
meantime (546)
Possessor in BF
Must reimburse the legitimate possessor
(549)
176
PROPERTY
Useful Expenses
Limited right of removal should not damage
principal and owner does not exercise option
of paying the expenses or increase in value
(547)
Limited right of removal (548)
Basis:
Possession
is
presumed
ownership, unless the contrary is
proved. This presumption is prima facie
and it prevails until contrary is proved.
Exception
177
PROPERTY
Ornamental
Expenses
Deterioration of
Loss
Costs of Litigation
X. Presumption in
Possessorfor
Prescription
Favor
of the
Acquisitive
178
PROPERTY
3.
4.
A. Abandonment
Includes the giving up possession, and
not necessarily of ownership by every
possessor.
179
PROPERTY
Kinds of Animals:
1. Wildthose
which
live
naturally
independent of man
2. Domesticatedthose which, being wild by
nature, have become accustomed to
recognize the authority of man. When they
observe this custom, they are placed in the
same category as domestic and when they
lose it, they are considered as wild.
3. Domestic or Tamethose which are
bornand reared ordinarily under the control
and care of man; they are under the
ownership of man, and do not become res
nullius unless they are abandoned.
180
PROPERTY
I.
Concept
Objects of Usufruct
1. Independent Rights
A servitude which is dependent on the
tenement to which it attaches cannot be
the object of usufruct
2. Things
Non-consumable things
Consumable things, but only as to their
value if appraised, or on an equal
quantity and quality if they were not
appraised
3. Unproductive things e.g. sterile or absolutely
unproductive land, or things for mere
pleasure, such as promenades, statues or
paintings, even if they do not produce any
utility.
c.
By the cause
By the extent of
enjoyment
By the origin
As regards
repairs and
taxes
Usufruct
Always a real
right
Owner
Passive owner
who allows the
usufructuary to
enjoy the thing
Generally
covers all the
utility of which
the thing is
capable
May be created
by law, by will of
the parties, or
by prescription
Pays for
ordinary repairs
and taxes on
the fruits
181
Lease
Quasi-real or
personal right
Need not be an
owner
Active owner or
lessor who
makes the
lessee enjoy
the thing
Generally
covers a
particular utility
May only be
created by the
will of the
parties
Generally not
borne by a
lessee
II. Characteristics
Basis
Characteristics
1. It is a real right
2. Of temporary duration
3. To derive all advantages from the thing due
to normal exploitation
Natural Characteristics
1. Includes only the right to use (jus utendi)
and the right to the fruits (jus fruendi)
2. Usufructuary must preserve the form or
substance of the thing
a. Preservation is a natural requisite, not
essential because the title constituting it
or the law may provide otherwise
b. Reason for preserving form and
substance
To prevent extraordinary
exploitation;
As to the object
By the extent or
enjoyment
Usufruct
May involve
real or personal
property
Covers all the
uses of the
thing
Servitudes
May only
involve real
property
Limited to a
particular use
Similarities
between
Usufruct
and
Servitude
Both are real rights, whether registered or not.
1. Both rights may be registered, provided that
the usufruct involves real property. All
easements of course concerns real property.
2. Both may ordinarily be alienated or
transmitted in accordance with the
formalities set by law.
PROPERTY
I. CONCEPT
II. CHARACTERISTICS
III. DISTINGUISHED
FROM
LEASE
AND
SERVITUDE
IV. CLASSIFICATION
V. RIGHTS OF USUFRUCTUARY
VI. OBLIGATIONS OF USUFRUCTUARY
A. AT THE BEGINNING OF THE USUFRUCT
B. DURING THE USUFRUCT
C. AT THE TIME OF THE TERMINATION OF
THE USUFRUCT
VII. SPECIAL CASES
VIII. EXTINGUISHMENT
A. By Origin
Article 563, Civil Code. Usufruct is constituted by
law, by the will of private persons expressed in acts
inter vivos or in a last will and testament, and by
prescription.
determines
necessity.
the
question
of
C. By Object of Usufruct
Article 564, Civil Code. Usufruct may be
constituted on the whole or a part of the fruits of the
thing, in favor of one more persons, simultaneously
or successively, and in every case from or to a
182
PROPERTY
1. Rights
a. Must not be strictly personal or
intransmissible.
b. Usufruct over a real right is by itself a
real right.
c. Right to receive present or future
support cannot be the object of the
usufruct.
2. Things
a. Normal: involves non-consummable
things where the form and substance
are preserved
b. Abnormal or irregular
Article 574, Civil Code. Whenever the usufruct
includes things which cannot be used without being
consumed, the usufructuary shall have the right to
make use of them under the obligation of paying
their appraised value at the termination of the
usufruct, if they were appraised when delivered. In
case they were not appraised, he shall have the
right to return at the same quantity and quality, or
pay their current price at the time the usufruct
ceases.
1. As to the fruits
a. Total: all consumed by the usufruct
b. Partial: only on certain aspects of the
usufructs fruits
2. As to object
a. Singular: only on particular property of
the owner
b. Universal: pertains to the whole
property;
Article 598, Civil Code. If the usufruct be
constituted on the whole of a patrimony, and if at the
time of its constitution the owner has debts, the
provisions of Articles 758 and 759 relating to
donations shall be applied, both with respect to the
maintenance of the usufruct and to the obligation of
the usufructuary to pay such debts.
The same rule shall be applied in case the owner is
obliged, at the time the usufruct is constituted, to
make periodical payments, even if there should be
no known capital.
Article 595, Civil Code. The owner may construct
any works and make any improvements of which the
immovable in usufruct is susceptible, or make new
plantings thereon if it be rural, provided that such
acts do not cause a diminution in the value of the
usufruct or prejudice the right of the usufructuary.
183
PROPERTY
which it is found.
Nevertheless, when the discovery is made on the
property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall
be allowed to the finder. If the finder is a trespasser,
he shall not be entitled to any share of the treasure.
If the things found be of interest to science of the
arts, the State may acquire them at their just price,
which shall be divided in conformity with the rule
stated.
Fruits pending at the
beginning of the
usufruct
Belong to the
usufructuary
Without need to
reimburse the expenses
to the owners
184
PROPERTY
V. Rights of Usufructuary
a. Exceptions:
Legal usufructs cannot be leased.
Caucion juratoria (lease would
show that the usufructuary does not
need the property badly)
b. Effect of the transfer of right:
The transfer or lease of the usufruct
does NOT terminate the relation of
the usufructuary with the owner
Death of the transferee does not
terminate the usufruct but it
terminates upon the death of the
usufructuary who made the transfer.
c. Rules as to Lease
The property in usufruct may be
leased even without the consent of
the owner.
The lease should be for the same
period as the usufruct.
EXCEPT: leases of rural lands
continues for the remainder of
the agricultural year
A lease executed by the
usufructuary
before
the
termination of the usufruct and
subsisting after the termination
of the usufruct must be
respected, but the rents for the
remaining period will belong to
the owner.
o If the usufructuary has
leased
the
lands
or
tenements given in usufruct,
and the usufruct should
expire
before
the
termination of the lease, he
or his heirs and successors
shall receive only the
proportionate share of the
rent that must be paid by
the lessee. (Art. 568, Civil
Code)
It is the usufructuary and not the
naked owner who has the right
to choose the tenant.
o As corollary to the right of
the usufructuary to all the
rent, to choose the tenant,
and to fix the amount of the
rent, she necessarily has
the right to choose herself
as the tenant thereof; and,
as long as the obligations
she had assumed towards
the owner are fulfilled.
(Fabie v. Gutierrez David)
A lease executed by the owner
before the creation of the
usufruct is not extinguished by
such usufruct.
185
PROPERTY
Usufructuary
is
not
entitled
to
reimbursement.
Whenever the usufructuary can remove
the improvements without injury to the
property in usufruct, he has the right to
do so, and the owner cannot prevent
him from doing so even upon payment
of their value.
This right does not involve an obligation
if the usufructuary does not wish to
exercise it, he cannot be compelled by
the owner to remove the improvements.
This right to remove improvements can
be enforced only against the owner, not
against a purchaser in good faith to
whom a clean title has been issued.
Usufructuary
may
set
off
the
improvements against any damage to
the property
It
is
necessary
that
the
improvements
should
have
increased the value of the property,
and that the damages are imputable
to the usufructuary.
Increase in value and the amount of
damages are set off against each
other.
If the damages exceed the increase
in value, the difference should be
paid by the usufructuary as
indemnity.
Registration of improvements to
rd
protect usufructuary against 3 persons
c.
186
PROPERTY
187
PROPERTY
188
PROPERTY
1. Ordinary repairs:
a. Deteriorations or defects arise from the
natural use of the thing;
b. Repairs
are
necessary
for
the
preservation of the thing.
2. The usufructuary is bound to pay only for the
repairs made during the existence of the
usufruct.
If the defects existed already at the time
the usufruct began, the obligation to
defray the ordinary repairs falls upon the
owner.
3. If the defects are caused by the ordinary use
of the thing, the usufructuary may exempt
himself from making the repairs by returning
to the owner the fruits received during the
time that the defects took place.
EXCEPT: When the ordinary repairs are
due to defects caused by the fault of the
usufructuary
4. If the usufructuary fails to make the repairs
even after demand, the owner may make
them at the expense of the usufructuary
1. Extraordinary repairs
a. Those
caused
by
exceptional
circumstances, whether or not they are
necessary for the preservation of the
thing;
b. Those caused by the natural use of the
thing, but are not necessary for its
preservation.
189
PROPERTY
To shoulder
usufruct
the
costs
of
litigation
re
VIII.
190
PROPERTY
191
F. Usufruct on mortgaged property
Article 600, Civil Code. The usufructuary of a
mortgaged immovable shall not be obliged to pay
the debt for the security of which the mortgage was
constituted.
Should the immovable be attached or sold judicially
for the payment of the debt, the owner shall be liable
to the usufructuary for whatever the latter may lose
by reason thereof.
1. Applies when:
a. If the usufruct is a universal one
b. And the naked owner Has debts or is
obliged to make periodical payments
(whether or not there be known capital)
2. General rule: the usufructuary is not liable
for the owners debts.
3. Exceptions:
a. When it is so stipulated; in which case
The usufructuary shall be liable for
the debt specified.
PROPERTY
If there is no specification, he is
liable only for debts incurred by the
owner before the usufruct was
constituted.
I.
Abnormal Usufruct
If the thing is appraised at delivery, the
usufructuary must pay their appraised
value at the termination of the usufruct.
If they were not appraised, he must
return the same kind and quality or pay
the current price at the expiration of the
usufruct.
A. Death of usufructuary
Exceptions
1. In multiple usufructs: it ends at the death of
the last survivor
Article 611, Civil Code. A usufruct constituted in
favor of several persons living at the time of its
constitution shall not be extinguished until death of
the last survivor.
192
PROPERTY
st
193
PROPERTY
3 SITUATIONS
1. If naked owner alone was given the
indemnity, he has the option:
a. To replace with equivalent thing
b. Or to pay to the usufructuary legal
interest on the indemnity requires
security given by the naked owner for
the payment of the interest
2. If both the naked owner and the
usufructuary
were
separately
given
194
PROPERTY
EFFECT
Art. 607
If destroyed property is not insured
If the building forms part of an immovable under
Usufruct continues over the land and the remaining
usufruct
materials
Usufruct continues over the land and materials (plus
If usufruct is on the building only
interests), if owner does not rebuild
If owner rebuilds, usufructuary must allow owner to
occupy the land and to make use of materials; but the
owner must pay interest on the value of both the land
and the materials.
Art. 608
If destroyed property is insured before termination of the usufruct
When insurance premium paid by owner and
If owner rebuilds, usufruct subsists on new building
If owner does not rebuild interest upon insurance
usufructuary (par. 1)
proceeds paid to usufructuary
Owner entitled to insurance money (no interest paid to
When the insurance taken by the naked owner
only because usufructuary refuses to contribute to usufructuary)
If he does not rebuild, usufruct continues over
the premium (par. 2)
remaining land and/or owner may pay interest on
value of both materials and land (607)
If owner rebuilds, usufruct does not continue on new
building, but owner must pay interest on value of land
and old materials
PROPERTY
195
CONCEPT
ESSENTIAL
FEATURES
OF
EASEMENTS/REAL
III. CLASSIFICATION OF SERVITUDES
IV. GENERAL RULES ON SERVITUDE
V. MODES OF ACQUIRING EASEMENTS
A. BY TITLE
B. BY PRESCRIPTION
VI. RIGHTS AND OBLIGATIONS OF OWNERS
A. OF DOMINANT ESTATE
B. OF SERVIENT ESTATE
VII. MODES
OF
EXTINGUISHMENT
OF
EASEMENTS
VIII. LEGAL EASEMENTS
I.
Concept
196
PROPERTY
8. It is intransmissible it cannot be
alienated separately from the tenement
affected or benefited
o Any alienation of the property covered
carries with it the servitudes affecting
said property. But this affects only the
portion of the tenement with the
easement,
meaning
the
portions
unaffected can be alienated without the
servitude.
9. It is indivisible
Art. 618, Civil Code. Easements are indivisible. If the
servient estate is divided between two or more
persons, the easement is not modified, and each of
them must bear it on the part which corresponds to
him.
If it is the dominant estate that is divided between two
or more persons, each of them may use the easement
in its entirety, without changing the place of its use, or
making it more burdensome in any other way.
This
classification
is
important
in
determining prescription: only continuous
and apparent easements can be created by
prescription
Continuous: Use is or may be incessant,
without the intervention of any man
Discontinuous: Used at intervals, and
dependent upon the acts of man.
197
PROPERTY
B. By Prescription
Requisites
1. Easement must be continuous and
apparent.
Although the road had been used for
more than 20 years, since an easement
of right of way is a discontinuous
easement, it CANNOT be acquired by
prescription because of the requirement
of
continuous
or
uninterrupted
possession. Since the dominant owner
cannot
be
continually
and
uninterruptedly crossing the servient
estate, but can do so only at intervals,
the easement is necessarily of an
intermittent or discontinuous nature.
(Ronquillo v. Roco)Sasa
2. Easement must have existed for 10 years.
3. NO NEED for good faith or just title.
198
PROPERTY
199
PROPERTY
B. Of Servient Estate
1. Rights of owner of servient estate
a. To retain ownership and use of his
property
o The owner of the servient estate
retains the ownership of the portion
on
which
the
easement
is
established, and may use the same
in such a manner as not to affect the
exercise of the easement. (Art. 630,
Civil Code)
o Servient owner must respect the use
of the servitude, but retains
ownership and use of the same, in a
manner not affecting the easement.
b. To change the place and manner of
the use of the easement
VII. Modes
of
Easements
Extinguishment
of
200
PROPERTY
5.
6.
Modes of Extinguishment
1. Merger: must be absolute, perfect and
definite, not merely temporary
o Absolute: Ownership of the property
must be absolute, thus not applicable to
lease, usufruct, etc.
o Perfect: Merger must not be subject to
a condition
o If the merger is temporary, there is at
most a suspension of the easement, but
no extinguishment.
2. By non-user for 10 years
o Owner of dominant estate does not
exercise right over easement.
o Inaction, not outright renunciation.
o Due to voluntary abstention by the
dominant owner, and not to a fortuitous
event
o Computation of the period
Discontinuous easements: counted
from the day they ceased to be used
Continuous easements: counted
from the day an act adverse to the
exercise of the easement took place
E.g. in an easement of light and
view, the erection of works
obstructing the servitude would
commence
the
period
of
prescription
o Use by a co-owner of the dominant
estate bars prescription with respect to
the others
o Servitudes not yet exercised cannot be
extinguished by non-user
An easement must have first been
used, before it can be extinguished
by inaction.
3. Extinguishment by impossibility of use
o Impossibility referred to must render the
entire easement unusable for all time.
o Impossibility of using the easement due
to the condition of the tenements (e.g.
flooding) only suspends the servitude
until it can be used again.
the
201
PROPERTY
4.
VIII.
Legal Easements
3. Abutment of a dam
1. Natural drainage of waters
Article 637, Civil Code. Lower estates are obliged to
receive the waters which naturally and without the
intervention of man descend from the higher estates,
as well as the stones or earth which they carry with
them.
The owner of the lower estate cannot construct works
which will impede this easement; neither can the
owner of the higher estate make works which will
increase the burden.
202
PROPERTY
4. Aqueduct
Article 642, Civil Code. Any person who may wish to
use upon his own estate any water of which he can
dispose shall have the right to make it flow through
the intervening estates, with the obligation to
indemnify their owners, as well as the owners of the
lower estates upon which the waters may filter or
descend.
Article 643, Civil Code. One desiring to make use of
the right granted in the preceding article is obliged:
1. To prove that he can dispose of the water and
that it is sufficient for the use for which it is
intended;
2. To show that the proposed right of way is the
most convenient and the least onerous to third
persons;
3. To indemnify the owner of the servient estate in
the manner determined by the laws and
regulations.
Article 644, Civil Code. The easement of aqueduct
for private interest cannot be imposed on buildings,
courtyards, annexes, or outhouses, or on orchards or
gardens already existing.
Article 645, Civil Code. The easement of aqueduct
does not prevent the owner of the servient estate from
closing or fencing it, or from building over the
aqueduct in such manner as not to cause the latter
any damage, or render necessary repairs and
cleanings impossible.
Article 645, Civil Code. For legal purposes, the
easement of aqueduct shall be considered as
continuous and apparent, even though the flow of the
water may not be continuous, or its use depends upon
the needs of the dominant estate, or upon a schedule
of alternate days or hours.
REQUISITES:
1) Dominant owner must prove that:
a) He can dispose of the water
b) Water is sufficient for the use for
which it is intended
c) The proposed right of way is the
most convenient and the least
onerous to third persons
2) Dominant
owner
must
also
indemnify the servient estate in the
manner determined by laws and
regulations
3) Dominant owner cannot impose the
easement of aqueduct on buildings,
courtyards, annexes, outhouses,
orchards or gardens already existing
Existing structures cannot be injured to
establish the easement.
RIGHT OF SERVIENT OWNER:
May fence or build over the
aqueduct in such a manner as not to
cause any damage, or render
impossible any necessary repairs
and cleanings
203
PROPERTY
204
PROPERTY
205
PROPERTY
WALL OWNED IN
COMMON
Owned by adjoining
owners from its
construction or by
subsequent act
Co-owner cannot use the
wall for his own exclusive
benefit, because he
would be impairing the
rights of his co-owners
Each owner can insert
beams in the wall to the
extent of entire thickness
206
PROPERTY
4. RULES
a. Cost of repairs and construction,
maintenance of fences, hedges, ditches
and drains shall be borne by ALL the
owners of the lands or tenements
EXCEPT: if the defects were occasioned
only by one owner
b. An owner may exempt himself from
contributing to the expenses by
renouncing
his
part-ownership,
UNLESS the party wall supports a
building he owns
Renunciation refers not only to the wall,
but also to the land on which it is
constructed.
c.
207
PROPERTY
THE EASEMENT
BUILDINGS
OF
DRAINAGE
OF
208
PROPERTY
1. SUMMARY
CONSTRUCTIONS may be built only after
complying with prescribed regulations
(special laws, ordinances, regulations):
a. Constructions or plantings near fortified
places or fortresses
b. Aqueduct, well, sewer, furnace, forge,
chimney, stable, depository of corrosive
substances, machinery, factory (with
dangerous and noxious substances)
Distances must be observed and
protective works necessary for the
conditions must be made
c. Trees planted near a tenement or piece
of land
In the absence of ordinances or
customs of the place:
(1) TALL TREES: At a distance of
at least 2 meters from the
dividing line of the estates
(2) SHRUBS/SMALL TREES: At
least 50 cm from the dividing
line
209
PROPERTY
o
2. Plantings Encroaching on Adjoining
Estates
a. Branches of any tree extending over a
neighboring estate, garden, etc.
Owner of the adjoining estate has the
right to demand that they be cut off
insofar as they may spread over his
property.
b. Roots of a neighboring tree which
should penetrate into the land of another
o Owner may cut the roots off himself
within his property, even without
notice to the owner of the trees
o Roots, by accession are converted
into the property of the owner of the
land into which they penetrate.
o Also, cutting off the roots will not
give the cutter any benefit, in
contrast to cutting off the branches
of a tree.
o PRESCRIPTION OF ACTION TO
CUT: Period only starts to run after
the owner of the estate has
demanded that the owner of the
trees cut off the branches or roots,
and the latter refuses.
The fact that the owner does not
cut off the trees only constituted
mere tolerance.
c.
210
PROPERTY
b. Injunction
Restraining
the
owner
from
excavating so as to deprive the land
of natural support
Will prohibit merely any excavation
which shall cause the plaintiffs land
to fall away due to withdrawal of
support
211
PROPERTY
5. OTHER RULES:
a. Stipulations or testamentary provisions
allowing excavations that cause danger
to adjacent land or building is VOID.
b. Also applicable to future constructions
c. Any proprietor intending to make any
excavation shall notify all owners of
adjacent lands.
Notice must sufficiently inform the
adjoining owner of the nature and
extent of the proposed excavation,
so as to enable the owner to take
the necessary precautions to protect
his property.
No formal notice is necessary if the
adjoining owner already has actual
knowledge of such excavation.
But giving notice does not absolve
the excavator from the duty to
exercise reasonable care to avoid
injury to neighbors.
DEFINITION
CLASSES
LIABILITY IN CASE OF NUISANCE
REGULATION OF NUISANCE
I.
Definition
Trespass
Direct infringement of
anothers right of
property.
Injury is immediate
Nuisance v. Negligence
Nuisance
Whether it was
unreasonable for the
defendant to act as he
did in view of the
threatened danger or
harm to one in plaintiffs
position.
Liability for the resulting
injury to others
regardless of the degree
of care or skill exercised
to avoid such injury.
Principles ordinarily apply
where the cause of action
is for continuing harm
caused by continuing or
recurrent acts which
cause discomfort or
annoyance to plaintiff in
the use of his property.
Negligence
Whether the defendants
use of his property was
unreasonable as to
plaintiff, without regard to
foreseeability of injury.
II. Classes
Liability is based on a
want of proper care
212
PROPERTY
3.
Per accidens
a. Public
o The doing of or the failure to do
something that injuriously affects the
safety, health or morals of the
public.
o It causes hurt, inconvenience or
injury to the public, generally, or to
such part of the public as
necessarily comes in contact with it.
b. Private
o One which violates only private
rights and produces damages to but
one or a few persons.
Public
Affects the public at large
Need not affect the whole
community or hurt and
injure all the public. It is
sufficient if it affects the
surrounding community
generally or if the injury is
occasioned to such part
of the public as come in
contact with it.
c.
Mixed
Private
Affects the individual or a
limited
number
of
individuals only
213
PROPERTY
No Prescription
Art. 698, Civil Code. Lapse of time cannot
legalize any nuisance, whether public or
private.
PUBLIC NUISANCE
214
PROPERTY
215
PROPERTY
public nuisance.
216
PROPERTY
c.
Chapter
X.
Ownership
Modes
of
Acquiring
II. Mode
A. ORIGINAL
I.
MODE V. TITLE
MODES
A. ORIGINAL MODES
1. OCCUPATION
2. INTELLECTUAL CREATION
B. DERIVATIVE MODES
1. LAW
2. DONATION
3. SUCCESSION
4. ACQUISITIVE PRESCRIPTION
5. TRADITION
Mode v. Title
Requisites:
o Corporeal personal property
o Property
susceptible
of
appropriation not res communes
o Seizure with intent to appropriate
o Res nullius (no owner) or res
derelict (abandoned property)
o Observance
of
conditions
prescribed by law
Kinds:
o Of Animals
Wild or feral animals seizure
(hunting/fishing) in open season
by means NOT prohibited
Tamed/domesticated animals
general rule: belong to the
tamer but upon recovering
freedom are susceptible to
occupation UNLESS claimed
within 20days from seizure by
another (ART. 716)
Tame/domestic animals not
acquired
by
occupation
EXCEPT when ABANDONED
Distinctions:
Mode
Title
Serves merely to give the
occasion for its
acquisition or existence
Means
Remote cause
Means whereby that
essence is transmitted
217
PROPERTY
I.
II.
Specific rules
o Not applicable to ownership of a
piece of land
The ownership of a piece of
land cannot be acquired by
occupation. (Article 714, Civil
Code)
State owns a piece of land
which has no owner therefore it
cannot
be
acquired
by
occupation.
o
2. INTELLECTUAL CREATION
Hidden treasure
Article 718, Civil Code. He
who by chance discovers
hidden treasure in anothers
218
PROPERTY
Kinds
o Common law copyright
Statutory copyright
219
PROPERTY
6. TOPOGRAPHIES
of
INTEGRATED
CIRCUITS
7. RIGHTS of PERFORMERS, PRODUCERS
of
SOUND
RECORDINGS
and
BROADCASTING ORGANIZATIONS
8. PROTECTION
of
UNDISCLOSED
INFORMATION
_______________
B. DERIVATIVE
Derivative modes of acquiring ownership are
based on a right previously held by another
person, and therefore, subject to the same
characteristics, powers, burdens, etc. as when
held by previous owner.
o
o
o
o
Elements of Succession:
o Transmission of property, rights and
obligations to another
o Cause of transmission is the DEATH
of the decedent
o Procedure of transmission is by
WILL or OPERATION of LAW
o ACCEPTANCE of the inheritance by
the heir
Rights to the succession are vested as
of the MOMENT of DEATH of the
decedent
4. (ACQUISITIVE) PRESCRIPTION
Mode of acquiring ownership through
the lapse of time in the manner and
under the conditions laid down by law
Possession should be:
o In the concept of an owner
Statute of limitation
Inaction or neglect of the
owner
Extinctive Prescription
ACQUISITIVE v. EXTINCTIVE
Acquisitive
Prescription
vests the property and
raise a new title in the
occupant
Positive action of the
possessor
Public
Peaceful
Uninterrupted
Adverse
5. TRADITION
Requisites:
o Pre-existence of right in estate of
grantor
o Just cause or title for the
transmission
o Intention
o Capacity
o Act of giving it outward form,
physically, symbolically or legally
Kinds:
o Real tradition PHYSICALY
DELIVERY of the thing; actual
transfer of control and possession
with intent to pass ownership or real
right over the property
Movable hand to hand transfer
of the thing
Immovable material acts
performed by grantee
220
PROPERTY
grantees
continuous
possession over the thing
delivered but now under the title
of ownership
Traditio
constitutum
possessorium
owner
remains in possession of the
thing but in another concept
Quasi-tradition delivery of
incorporeal things or rights by
the grantee of his right with the
owners consent
Tradition by operation of law
221
PROPERTY
NATURE
REQUISITES
KINDS
WHO MAY GIVE OR RECEIVE DONATIONS
WHO MAY NOT GIVE OR RECEIVE
DONATIONS
VI. ACCEPTANCE
VII. FORM
VIII. WHAT MAY BE DONATED
IX. EFFECT
X. REVOCATION AND REDUCTION
I.
II.
III.
IV.
V.
I.
Nature
BILATERAL
contract
creating
UNILATERAL obligations on the donors
part
Requires CONSENT of BOTH donor
and donee though it produces
obligations only on the side of the
DONOR
II. Requisites
2. MORTIS CAUSA
Article 728, Civil Code. Donations which are to take
effect upon the death of the donor partake of the
nature of testamentary provisions, and shall be
governed by the rules established in the Title on
Succession.
III. Kinds
Inter vivos
Executed and
accepted with
formalities
prescribed by CC
748 & 749
As to
effectivity
Effective during
the lifetime of the
donor
As to
acceptance
Acceptance must
be made during
the lifetime of the
donor
1. INTER VIVOS
Article 729, Civil Code. When the donor intends
that the donation shall take effect during the lifetime of
the donor, though the property shall not be delivered
till after the donor's death, this shall be a donation
inter vivos. The fruits of the property from the time of
the acceptance of the donation, shall pertain to the
donee, unless the donor provides otherwise.
Article 730, Civil Code. The fixing of an event or the
imposition of a suspensive condition, which may take
place beyond the natural expectation of life of the
donor, does not destroy the nature of the act as a
donation inter vivos, unless a contrary intention
appears.
Article 731, Civil Code. When a person donates
something, subject to the resolutory condition of the
donor's survival, there is a donation inter vivos.
Mortis causa
Must be in the
form of a will, with
all the formalities
for the validity of
wills
Otherwise, its
void and cannot
transfer
ownership.
Effective after the
death of the
donor
Acceptance must
be made after the
death of the
donor, the
donation being
effective only
after the death of
donor.
Acceptance
during the donors
lifetime is
premature and
ineffective
because there
222
PROPERTY
As to
transfer of
ownership
for right of
disposition
As to
revocation
As to
reduction or
suppression
Ownership is
immediately
transferred.
Delivery of
possession is
allowed after
death
Irrevocable may
be revoked only
for the reasons
provided in CC
760, 764, 765
When it is
excessive or
inofficious, being
preferred, it is
reduced only after
the donations
mortis causa had
been reduced or
exhausted
Ownership is
transferred after
death
Revocable upon
the exclusive will
of the donor
When it is
excessive or
inofficious, it is
reduced first, or
even suppressed
Propter nuptias
Necessary
Not required
Cant be made by
minors
No limit to
donation of
present property
provided legitimes
are not impaired
May be made by
minors (FC 78)
May include
future property
(same rule as
wills)
If present property
is donated and
property regime is
ACP, limited to
1/5
Law on donations
FC 86
Express
acceptance
As to
minors
As to future
property
Cannot include
future property
Limit as to
donation of
present
property
Grounds
for
revocation
______________
B. As to cause or consideration
3. PROPTER NUPTIAS
Article 82, Family Code. W hen the donor intends
that the donation shall take effect during the lifetime of
the donor, though the property shall not be delivered
till after the donor's death, this shall be a donation
inter vivos. The fruits of the property from the time of
the acceptance of the donation, shall pertain to the
donee, unless the donor provides otherwise.
Article 87, Family Code. Every donation or grant of
gratuitous advantage, direct or indirect, between the
spouses during the marriage shall be void, except
moderate gifts which the spouses may give each
other on the occasion of any family rejoicing. The
prohibition shall also apply to persons living together
as husband and wife without a valid marriage.
C. As to effectivity or extinguishment
1. PURE donation is without conditions or
periods
2. CONDITIONAL donation is subject to
suspensive or resolutory conditions
3. WITH A TERM
223
PROPERTY
can be no
contract regarding
future inheritance
4.
5.
6.
Article 737, Civil Code. Donations made to
conceived and unborn children may be accepted by
those persons who would legally represent them if
they were already born.
V. Who May
Donations
Not
Give
or
Receive
224
PROPERTY
VI. Acceptance
B. REAL PROPERTY
Article 749, Civil Code. In order that the donation of
an immovable may be valid, it must be made in a
public document, specifying therein the property
donated and the value of the charges which the
donee must satisfy.
B. TIME of ACCEPTANCE
Article 746, Civil Code. Acceptance must be made
during the lifetime of the donor and of the donee.
The donation is perfected only upon the moment
the donor knows of the donees acceptance. If the
acceptance is made in a separate instrument, the
donor shall be notified thereof in an authentic form,
and this step shall be noted in both instruments.
(Lagazo v CA)
VII. Form
A. PERSONAL PROPERTY
VIII.
Exceptions:
o Donations propter nuptias need
NO express acceptance
o Onerous donations form governed
by the rules of contracts
225
PROPERTY
DONATED
Donations
cannot
IX. Effect
A. IN GENERAL
1. Donee may demand actual delivery of thing
donated
2. Donee is SUBROGATED to rights of donor
in the property donated
Article 754, Civil Code. The donee is subrogated to
all the rights and actions which in case of eviction
would pertain to the donor. The latter, on the other
hand, is not obliged to warrant the things donated,
save when the donation is onerous, in which case the
donor shall be liable for eviction to the concurrence of
the burden.
The donor shall also be liable for eviction or hidden
defects in case of bad faith on his part.
226
PROPERTY
B. SPECIAL PROVISIONS
1. Reservation by donor of power to dispose
(in whole or in part) or to encumber property
donated
Article 755, Civil Code. The right to dispose of some
of the things donated, or of some amount which shall
be a charge thereon, may be reserved by the donor;
but if he should die without having made use of this
right, the property or amount reserved shall belong to
the donee.
B. CAUSES
of
REDUCTION
Reduction
Made insofar as the
legitime is prejudiced
Benefits the donors heirs
(except when made on
the ground of the
appearance of a child)
REVOCATION
OR
1. Inofficiousness
Article 752, Civil Code. The provisions of Article 750
notwithstanding, no person may give or receive, by
way of donation, more than he may give or receive by
will.
227
PROPERTY
Effects:
o Donation is VALID if not exceeding
the free part computed as of the
o
o
C. REVOCATION ONLY
1. Ingratitude
Article 765, Civil Code. The donation may also be
revoked at the instance of the donor, by reason of
ingratitude in the following cases:
1. If the donee should commit some offense against
the person, the honor or the property of the
donor, or of his wife or children under his parental
authority;
2. If the donee imputes to the donor any criminal
offense, or any act involving moral turpitude,
even though he should prove it, unless the crime
or the act has been committed against the donee
himself, his wife or children under his authority;
2. If he unduly refuses him support when the donee
is legally or morally bound to give support to the
donor.
228
PROPERTY
2. Violation of condition
Effect as to fruits
SUMMARY
Limitation:
1) He reserves in full ownership or
in usufruct, sufficient means for
his support and all relatives who
are at the time of the acceptance
of the donation are, by law,
entitled to be supported
229
PROPERTY
Donor
Donee
Reversion
230
PROPERTY
REVOCATION/REDUCTION
Time of Action
Transmissibility
Transmitted to
children and
descendants upon
the death of donor
Birth, appearance,
adoption
Non-compliance
with condition
May be transmitted to
donors heirs and
may be exercised
against donees heirs
Ingratitude
Generally not
transmitted to heirs of
donor/ donee
Failure to reserve
sufficient means for
support
Not transmissible
Inofficiousness for
being in excess of
what the donor can
give by will
Transmitted to
donors heirs
Fraud against
creditors
Rescission within 4
years from the
perfection of
donation/ knowledge
of the donation
Transmitted to
creditors heirs or
successors-in-interest
Effect
Property returned/
value (if sold)/
redeem mortgage
with right to recover
Property returned,
alienations and
mortgages void
subject to rights of
third persons in
good faith
Property returned,
but alienations and
mortgages effected
before the notation
of the complaint for
revocation in the
registry of property
subsist
Reduced to the
extent necessary to
provide support
Donation takes
effect on the lifetime
of donor. Reduction
only upon his death
with regard to the
excess
Liability (Fruits)
Fruits returned/ if
impossible,
indemnify creditor
for damages
Donee entitled
Donee entitled
231
PROPERTY
Basis
I.
General Characteristics
a. Temporary duration
b. Onerous
c. Price is fixed according to contract
duration
II. Kinds
A. Lease of things Involves an obligation on
the part of the lessor to deliver the thing
which is the object thereof and the
correlative right of the lessee to peaceful
and adequate enjoyment thereof for a price
certain
B. Lease of work or contract of labor (Arts.
1700-1712)
C. Lease of services
1. Household service
2. Contract for a piece of work (ARTS.
1713-1731)
3. Lease of services of common carriers
(ARTS. 1732-1763)
Lease
A real right only by
exception (When
registered and for more
than 1 year)
To constitute usufruct,
ownership is not required
in order to lease an
object
Lessor places and
maintains the lessee in
enjoymentof the thing.
Lease may be limited to
particular uses by the
contract
Contract of lease must be
for a definite period,
absent stipulation of
such, court must fix such
period.
Lease
Onerous
Not essentially personal
in character, therefore,
the right may be
transmitted to the heirs
Consensual contract
Sale
Permanent transmission
of ownership of the thing
sold, unless subject to a
resolutory condition
Seller must be the owner
or at least authorized by
the owner to transfer
ownership of the thing at
the time it is derived
Usufruct
Always a real right
To constitute a usufruct,
one must be the owner of
the thing.
Owner allows the
usufructuary to use and
enjoy the property
Usufruct includes all
possible uses and
manner of enjoyment of
the property
Usufruct may be for an
indefinite period of time
Commodatum
Gratuitous
Purely personal in
character and
consequently, the death
of either the bailor or
bailee extinguishes the
contract
Real contract perfected
by the delivery of the
object therefor
232
PROPERTY
I.
II.
F. SUBLEASE
Assignment of Lease
Transfer to a third person
of the rights and
obligations arising from
the lease contract. It is in
fact a sale of the lessees
rights, and when the
lessor gives his consent
to it, the original lessee is
released from his
obligations under the
contract. The Express of
the lessor is either
express or implied. There
is a succession by
particular title to one
contract of lease.
Sublease
E. ASSIGNMENT of LEASE
URBAN land
Article 1650
When in the contract of lease of things there is
no express prohibition, the lessee may sublet
the thing leased, in whole or in part, without
prejudice to his responsibility for the
performance of the contract toward the lessor.
For RENTS
233
PROPERTY
D. PERIOD of LEASE
2. Obligations of LESSEE
Article 1657, Civil Code. The lessee is obliged:
(1) To pay the price of the lease according to the
terms stipulated;
(2) To use the thing leased as a diligent father of a
family, devoting it to the use stipulated; and in the
absence of stipulation, to that which may be
inferred from the nature of the thing leased,
according to the custom of the place;
(3) To pay expenses for the deed of lease.
Article 1662, Civil Code. If during the lease it should
become necessary to make some urgent repairs upon
the thing leased, which cannot be deferred until the
termination of the lease, the lessee is obliged to
tolerate the work, although it may be very annoying to
him, and although during the same, he may be
deprived of a part of the premises.
If the repairs last more than forty days the rent shall
be reduced in proportion to the time - including the
first forty days - and the part of the property of which
the lessee has been deprived.
When the work is of such a nature that the portion
which the lessee and his family need for their dwelling
becomes uninhabitable, he may rescind the contract if
the main purpose of the lease is to provide a dwelling
place for the lessee.
Article 1663, Civil Code. The lessee is obliged to
bring to the knowledge of the proprietor, within the
shortest possible time, every usurpation or untoward
act which any third person may have committed or
may be openly preparing to carry out upon the thing
leased.
He is also obliged to advise the owner, with the same
urgency, of the need of all repairs included in No. 2 of
Article 1654.
In both cases the lessee shall be liable for the
damages which, through his negligence, may be
suffered by the proprietor.
If the lessor fails to make urgent repairs, the lessee, in
order to avoid an imminent danger, may order the
repairs at the lessor's cost.
Article 1665, Civil Code. The lessee shall return the
thing leased, upon the termination of the lease, as he
received it, save what has been lost or impaired by
the lapse of time, or by ordinary wear and tear, or
from an inevitable cause.
Article 1668, Civil Code. The lessee is liable for any
deterioration caused by members of his household
and by guests and visitors.
SUMMARY of OBLIGATIONS
Lessors Obigations
Deliver the thing which is
the object of the contract
in a condition fit for the
use intended
Lessees Obligations
Pay the price of the lease
according to the terms
stipulated
234
PROPERTY
I.
235
PROPERTY
- end of Property-
236
PROPERTY