PCU - LMT - Civil Law - 2019
PCU - LMT - Civil Law - 2019
PERSONS AND FAMILY RELATIONS 4. When may the requirement of marriage license
be dispensed with?
1. Distinguish Accion In Rem Verso from Solutio
Indebiti. a. Marriage in articulo mortis (at the point of
Accion In Rem Verso death) even if the ailing party subsequently
Requisites are: survives;
a. The defendant has been enriched; b. If the residence of either party is so located
b. The plaintiff has suffered a loss; that there is no means of transportation to
c. Enrichment of the defendant is without just or enable such party to personally appear before
legal ground; and the local civil registrar;
d. Plaintiff has no other action based on contract, c. Marriage among Muslims or among members
quasi- contract, crime or quasi-delict. of the ethnic cultural communities, provided
*The delivery was without legal or valid ground, and it they are solemnized in accordance with their
must not be by reason of mistake. customs, rites or practices;
d. Marriage between a man and a woman who
*Source of obligation is law have lived together as husband and wife for
Solutio Indebiti at least five years and without impediment to
Requisites are: marry each other; and
e. Marriages celebrated abroad and in
a. Something has been received when there was no accordance with the laws of the place of
right to demand it; and celebration which do not require a valid
b. The same was unduly delivered through mistake. marriage license. (Arts. 26-28, and 33-35,
*The deliver or the payment must be by reason of Family Code)
mistake. 5. When is a declaration of nullity a prejudicial
question for bigamy?
*A form of quasi-contract
a. FIRST marriage is alleged to be void. The
crime of bigamy may be committed if the
2. May the absence of real intention to establish a subsequent marriage was entered into after
conjugal and family life nullify a marriage? the effectivity of the Family Code but without
securing first a judicial declaration of nullity of
No. So long as all the essential and formal the previous marriage under Art. 40 of the
requisites prescribed by law are present, and it is Family Code. Even if a petition for declaration
of nullity of the previous marriage was filed
not void or voidable under the grounds provided
ahead of the criminal action for bigamy, it will
by law, it shall be declared valid. The possibility not be a prejudicial question to because any
that the parties in a marriage might have no real decision in the civil action will not erase the
intention to establish a life together is, however, fact that the accused in the bigamy case had
insufficient to nullify a marriage freely entered into entered into a second marriage during the
subsistence of the first marriage. (Morigo vs.
in accordance with law. (Republic vs. Albios, G.R.
People, G.R. No. 145226, February 6, 2004)
No. 198780, October 16, 2013)
b. SECOND marriage is alleged to be void. For
the accused to be convicted of bigamy, the
subsequent marriage must have all the
3. May a divorce decree obtained abroad by a
essential requisites for validity except for the
Filipino citizen married to a foreigner be
existence of a prior marriage. Thus, if the
recognized as valid in the Philippines
subsequent marriage is void not because of
pursuant to Par. 2, Art. 26 of the Family
the existence of the first marriage but for other
Code?
causes, the crime of bigamy is not committed.
Yes. The provision only requires that there be a In such a situation, the prior institution of a
civil action for declaration of nullity of the
divorce validly obtained abroad. The letter of the
subsequent marriage will constitute a
law does not demand that the alien spouse should prejudicial question to the criminal action for
be the one who initiated the proceeding wherein bigamy. (Santiago vs. People, G.R. No.
the divorce decree was granted. It does not 200233, July 15, 2015)
distinguish whether the Filipino spouse is the
petitioner or the respondent in the foreign divorce
proceeding. (Republic vs. Manalo, G.R. No.
221029, April 24, 2018)
6. Discuss the property regimes of marriages. 7. Discuss the property regimes of unions without
marriage under the Family Code.
such birth certificate be taken as a document, it can only serve as evidence of the
recognition in a public instrument and it has administration of the sacrament on the date
no probative value to establish filiation to the specified but not the veracity of the entries with
alleged father. (Salas vs. Matusalem, G.R. respect to the child‟s paternity. (Perla vs.
No. 180284, September 11, 2013) Perla, G.R. No. 172471, November 12, 2012)
204. (Lim vs. Lim, G.R. No. 163209, October The “well-founded belief” in the absentee‟s
30, 2009) death requires the present spouse to prove
that his belief was the result of diligent and
13. May a petition whose sole objective is to reasonable efforts to locate the absent spouse
declare a person presumptively dead be taken
cognizance of by Philippine courts? and that based on these efforts and inquiries,
he believes that under the circumstances, the
No. Such petition should be dismissed outright. A absent spouse is already dead. It necessitates
rule creating a presumption of death is merely exertion of active effort, not a passive one. The
one of evidence that cannot be the lone subject burden of complying with the stringent
of an independent action or proceeding. Such requirement of “well-founded belief” can only
petition presents no actual controversy that a be discharged upon a showing of proper and
court could decide. (Tadeo vs. Republic, G.R. No. honest-to-goodness inquiries and efforts to
230751, April 25, 2018) ascertain not only the absent spouse's
whereabouts, but more importantly, whether
14. Three days after Mars married Joel, the latter,
a member of the AFP, left and went to Sulu the latter is still alive or is already dead.
where he was assigned. Mars filed before the
court a petition to declare Joel as c. Should Joel be declared presumptively
presumptively dead for the purpose of dead?
remarriage, alleging that after the lapse of 33 No. Other than making said inquiries,
years without any kind of communication
from him, she firmly believes that he is however, the wife made no further efforts to
already dead. Mars testified affirming that she find her husband. She could have called or
exerted efforts to find Joel by inquiring from proceeded to the AFP headquarters to request
his parents, relatives, and neighbors, who, information about her husband, but failed to do
unfortunately, were also not aware of his so. She did not even seek the help of the
whereabouts.
authorities or the AFP itself in finding him.
a. What are the requisites to be declared Hence, the wife failed to actively look for her
presumptively dead? missing husband, and her purported earnest
(1) The absent spouse has been missing efforts to find him by asking parents, relatives,
for four consecutive years, or two and friends did not satisfy the strict standard
consecutive years if the disappearance and degree of diligence required to create a
occurred where there is danger of death “well-founded belief” of his death. (Republic
under the circumstances laid down in vs. Tampus, G.R. No. 214243, March 16,
Art. 391 of the Civil Code;
(2) The present spouse wishes to remarry; 2016, J. Perlas-Bernabe)
(3) The present spouse has a well-founded
belief that the absentee is dead; and
(4) The present spouse files a summary 15. Explain briefly the following rules on conflict of
proceeding for the declaration of laws.
presumptive death of the absentee.
a. Forum non Conveniens. – A court, in conflict
Philippine Christian University College of Law _5 | P a g e
CONFIDENTIALITY NOTICE: The contents of this document and any attachments herewith are intended solely for the PCU
College of Law Alumni who are taking the bar Examinations this November 2018 and may contain confidential and/or
privileged information and may be legally protected from disclosure.
PCU Bar Operations 2019
CIVIL LAW LAST MINUTE TIPS
of law cases, may refuse impositions on its h. Double renvoi. – That which occurs when the
jurisdiction where it is not the most local court, in adopting the foreign court
“convenient” or available forum and the theory, discovers that the foreign court
parties are not precluded from seeking accepts the renvoi. (Sempio-Diy, A.V., supra.)
remedies elsewhere. (Eversley Childs
Sanitarium vs. Sps. Perlabarbarona, G.R. 16. If the adopter dies during minority of the
No. 195814, April 4, 2018) adopted child, would the parental authority
revert back to the biological parents??
b. Lex Loci Celebrationis. – The forms and Yes. Parental authority of the biological parent
solemnities of contracts, wills, and other should be deemed to have been restored. It is,
public instruments shall be governed by the after all, for the best interest of the child that
laws of the country in which they are someone will remain Ashould his or her adopter
executed. (Art. 17, Civil Code)
dies at a time the adoptee is still in his formative
years. (Bartolome vs. SSS, G.R. No. 192531,
c. Lex Nationalii – it is the theory by virtue of November 12, 2014).
which the status and capacity of an individual
are generally governed by the law of his PROPERTY
nationality. (Paras, E.L. , Philippine Conflict of
Laws, 1996)
17. Frankie, a French national, and Riri, a Filipina,
d. Lex Domicilii theory – the individual‟s were former husband and wife. In a petition for
private rights, condition, status, and dissolution, the court dissolved their conjugal
capacity are determined by the law of his partnership, awarding all parcels of land they
domicile. (Sempio-Diy, A.V. , Handbook on supposedly own to Riri. Frankie questioned
Conflicts of Law, 2004) said decision, invoking the principle of unjust
enrichment, contending that he is entitled to
e. Lex Situs or Lex Rei Sitae. – Real property reimbursement because the money used to
as well as personal property is subject to the purchase said parcels of land came from his
law of the country where it is situated. (Art. own pocket. Is Frankie’s contention correct?
16, Civil Code)
No. Foreign ownership of Philippine land is
f. Doctrine of Processual Presumption or prohibited under the Constitution. A foreigner
the Doctrine of Presumed-Identity
Approach. – Where a foreign law is not cannot seek reimbursement on the ground of
pleaded or, even if pleaded, is not proved, the equity where it is clear that he willingly and
presumption is that foreign law is the same as knowingly bought the property despite the
the domestic law. (EDI-Staffbuilders vs. prohibition against foreign ownership of Philippine
NLRC, G.R. No. 145587, October 26, 2007) land under the 1987 Constitution. In a case
g. Renvoi. – A procedure whereby a jural matter involving a foreigner seeking monetary
presented is referred by the conflict of laws
reimbursement for money spent on purchase of
rules of the forum to a foreign state, the
conflict of laws rule of which in turn refers the Philippine land, the provision on unjust enrichment
matter back to the law of the forum does not apply. (Beumer v. Amores, G.R. No.
(remission) or a third state (transmission). 195670, December 3, 2012, J. Perlas-Bernabe)
(Coquia, J.R. & Aquiling-Pangalanan, E.,
Conflict of Laws: Cases, Materials, and 18. What properties are classified as (a) immovable
Comments, 2000) and (b) movable under the Civil Code?
proper indemnity. (Art. 649, Civil Code) 24. Distinguish (a) Continuous Easement from
b. Easement of Party Wall. – One which is Discontinuous Easement, and (b) Apparent
presumed to exist, unless there is a title or Easement from Non-apparent Easement.
exterior sign, or proof to the contrary, among
others, in dividing walls adjoining buildings up
to the common point of elevation. (Art. 659, CONTINUOUS EASEMENT DISCONTINUOUS
Civil Code) EASEMENT
c. Easement of Light and View. – It refers to That the use of which is or That which are used at
an easement whereby the dominant estate may be incessant, without intervals and depend upon
enjoys the right to have free access to light, a the intervention of any act the acts of man
little air, and a view overlooking the adjoining of man.
estate, i.e., the servient estate. (Sps. Garcia
vs. Santos, G.R. No. 228334, June 17, 2019)
APPARENT EASEMENT NON-APPARENT
d. Easement of Lateral and Subjacent EASEMENT
Support. – The right of lateral and subjacent That which are made That which show no
support is the right to have land supported by known and are continually external indication of their
the adjoining land or the soil beneath. Each kept in view by external existence.
of the two adjoining landowners is entitled to signs that reveal the use
the support of the other‟s land. (Black’s Law and enjoyment of the
Dictionary, 5th Ed., 795, Bouvier’s Law same.
Dictionary, Vol. 2. 3rd revision, 1871)
Note: Only continuous and apparent easements
23. Distinguish Negative Easement from Positive
are acquired either by virtue of a title or by
Easement. prescription of ten (10) years. All others are
acquired only by virtue of a title. (Heirs of the Late
NEGATIVE EASEMENT POSITIVE EASEMENT Joaquin Limense vs. Vda. De Ramos, G.R. No.
152319, October 28, 2009)
Prohibits the owner of the Imposes upon the
servient estate from doing owner of the servient
something which he could estate the obligation of 25. What are the two concepts of a builder in good
lawfully do if the easement allowing something to faith?
did not exist. be done or of doing it
himself.
In acquisition by In acquisition by LIMITED CONCEPT EXPANDED CONCEPT
prescription, prescriptive prescription, It is essential that a person In cases wherein the
period commences from the prescriptive period asserts title to the land on builder has
day on which the owner of commences from the which he builds, i.e., that he constructed
the dominant estate day on which the owner be a possessor in the concept improvements on the
forbade, by an instrument of the dominant estate, of owner, and that he be land of another with
acknowledged before a or the person who may unaware that there exists in the knowledge and
notary public, the owner of have made use of the his title or mode of acquisition consent of the owner.
the servient estate, from easement, commenced any flaw which (Department of
executing an act which to exercise it upon invalidates it. Education vs.
would be lawful without the the servient estate. Casibang, G.R. No.
easement. 192268, January 27,
(Sps. Garcia vs. Santos, G.R. No. 228334, June 2016)
17, 2019)
26. Kath filed a complaint for easement of right shall be void. authentic form, and
of way. Can she later on claim ownership c. A donation in writing this step shall be
over the portion covered in her complaint for does not require the noted in both
easement of right of way? simultaneous delivery of instruments. (Arts.
the thing or of the 748-749, Civil Code)
No. The act of filing a complaint for easement of document representing
right of way is an acknowledgement that the the right donated.
property is not her property. It is tantamount to a
waiver of whatever right or claim of ownership If the value exceeds
over the property. (Reyes vs. Sps. Ramos, G.R. P5,000.00: The donation and
No. 194488, February 11, 2015) the acceptance shall be made
in writing, whether in public or
27. What is hidden treasure? Who may claim private instrument. Otherwise,
ownership over it? the
donation shall be void.
It refers to any hidden and unknown deposit of
money, jewelry, or other precious objects, the
lawful ownership of which does not appear. 29. Distinguish Nuisance per accidens from
Hidden treasure belongs to the owner of the land, Nuisance per se.
building, or other property on which it is found.
When the discovery is made on the property of NUISANCE PER NUISANCE PER SE
another, or of the State or any of its subdivisions, ACCIDENS
and by chance, one-half thereof shall be allowed Depends upon certain Affects the immediate
conditions and safety of persons and
to the finder. If the finder is a trespasser, he shall circumstances, and its property.
not be entitled to any share of the treasure. If the existence being a
things found be of interest to science or the arts, question of fact.
the State may acquire them at their just price, Cannot be abated May be summarily abated
which shall be divided in conformity with the rule without due hearing under the undefined law of
thereon in a tribunal necessity. (Rana vs.
stated. (Arts. 438 and 439, Civil Code) authorized to decide Wong,
whether such a thing G. R. No. 192861, June 30,
does in law constitute a 2014, J. Perlas Bernabe)
28. What are the formalities required in donation of nuisance.
(a) personal property and (b) real property?
30. Explain the concept of indefeasibility of the
Torrens title.
PERSONAL PROPERTY REAL PROPERTY
If the value does not exceed It must be made in a Certificates of title issued pursuant to
P5,000.00: public document. The emancipation patents acquire the same protection
a. The donation and acceptance may be accorded to other titles, and become indefeasible
acceptance may be made made in the same and incontrovertible upon the expiration of one
orally or in writing. deed of donation or in
b. An oral donation requires year from the
a separate public
the simultaneous delivery document. If the date of the issuance of the order for the issuance
of the thing or of the acceptance is made in of the patent. Lands so titled may no longer be the
document representing a separate instrument, subject matter of a cadastral proceeding; nor can
the right donated. the donor shall be they be decreed to other individuals. (Berboso vs.
Otherwise, the donation notified thereof in an Carbal, G.R. No. 204617, July 10, 2017)
Philippine Christian University College of Law _10 | P a g e
CONFIDENTIALITY NOTICE: The contents of this document and any attachments herewith are intended solely for the PCU
College of Law Alumni who are taking the bar Examinations this November 2018 and may contain confidential and/or
privileged information and may be legally protected from disclosure.
PCU Bar Operations 2019
CIVIL LAW LAST MINUTE TIPS
31. When may a person bring an action for the f. All the pages shall be numbered correlatively
recovery of damages to be paid out of the in letters placed on the upper part of each
Assurance Fund? page; and
g. It must be executed in the language known to
It is a condition sine qua non that the person who the testator. (Art. 805, Civil Code)
brings an action for damages against the
assurance fund be the registered owner, and, as
33. What are the requisites of a valid holographic
to holders of transfer certificates of title, that they
will?
be innocent purchasers in good faith and for
value. An action for compensation against the It must be entirely written, dated, and signed by the
Assurance Fund must be filed within six (6) years hand of the testator himself. (Art. 810, Civil Code)
from the moment the innocent purchaser for value
registers his or her title and upon actual 34. Enrique died leaving a will. In the will, while the
knowledge thereof of the original title acknowledgment portion stated that it
holder/claimant. (Sps. Stilianopoulos vs. Register consists of seven (7) pages including the page
on which the ratification and acknowledgment
of Deeds, G.R. No. 224678, July 03, 2018, J.
are written, the will actually has eight (8) pages
Perlas-Bernabe) including the acknowledgment portion. May
Enrique’s will be probated?
36. What is Disposicion Captatoria? 39. Distinguish the effect of Preterition and
Ineffective Disinheritance.
It is any disposition made upon the condition that
the heir shall make some provision in his will in
PRETERITION INFEFFECTIVE
favor of the testator or of any other person. Such
DISINHERITANCE
provision is void. (Art. 875, Civil Code) Shall annul the institutionShall annul the institution
of heir, unless in the of heirs, but only
37. What is the Iron Curtain Rule? will there are, in insofar as it may
addition, prejudice
It provides that an illegitimate child has no right to
testamentary the person
inherit ab intestato from the legitimate children dispositions in the form ofdisinherited
and relatives of his father or mother; nor shall devises or legacies.
such children or relatives inherit in the same (Nuguid vs. Nuguid, G.R. No. L-23445, June 23,
manner from the illegitimate child. The right of 1966)
representation is not available to illegitimate
descendants of legitimate children in the 40. When does the right of accretion take place?
inheritance of a legitimate grandparent. (Arado
vs. Alcoran, G.R. No. 163362, July 8, 2015)
a. That two or more persons be called to the
38. When may a probate court pass upon matters same inheritance, or to the same portion
other than the extrinsic provision of a will? thereof, pro indiviso; and
b. That one of the persons thus called die before
a. When the defect of the will is apparent on its the testator, or renounce the inheritance, or be
face and the probate of the will may become incapacitated to receive it. (Art. 1016, Civil
a useless ceremony if it is intrinsically invalid, Code)
e.g., when the testator admits in the will that
he is disposing of his properties to his 41. What are the requisites for the application of
concubine. (Nepomuceno vs. CA, G.R. No. L- reserva troncal?
62952, October 9, 1985)
b. Where practical considerations demand that a. That the property was acquired by a
the intrinsic validity of the will be passed descendant (prepositus) from an ascendant or
upon, even before it is probated, the court from a brother or sister (origin) by gratuitous
should meet the issue, e.g., when the issue title (by inheritance or donation);
of preterition of compulsory heirs in the direct b. That said descendant died without an issue;
c. That the property is inherited by another
line is raised, especially when the will does
ascendant (reservista) by operation of law; and
not provide for legacies or devises. (Acain vs.
CA, G.R. No. 72706, October 27, 1987) d. That there are relatives within the third degree
c. When the instrument presented for probate is belonging to the line from which said property
denominated as a donation mortis causa, the came (reservatarios). (Mendoza vs. Delos
issue of whether said instrument is a donation Santos, G.R. No. 176422, March 20, 2013)
mortis causa or in a fact a donation inter 42. Discuss the rules in Intestate Succession.
vivos, may be passed upon by the probate
court. (Del Rosario vs. Ferrer, G.R. No.
187056, September 20, 2010) INTESTATE SUCCESSION IN THE DIRECT
d. Where all the parties agree that the intrinsic DESCENDING LINE
validity of a will be first determined. (Reyes LC survive with LC – double that of the ILC
vs. CA, G.R. No. 12099, October 30, 1997) ILC
LC survive with SS – same share as that of each LC
46. Explain the principle of Rebus Sic Stantibus in No. A non-drawing savings account is not the
relation to the Doctrine of Unforeseen Events. consignation contemplated by law, as it does not
The principle of Rebus Sic Stantibus states that place the same at the disposal of the court. The
“parties stipulate in the light of certain prevailing requisites of novation are: (i) there was a debt due;
Philippine Christian University College of Law _14 | P a g e
CONFIDENTIALITY NOTICE: The contents of this document and any attachments herewith are intended solely for the PCU
College of Law Alumni who are taking the bar Examinations this November 2018 and may contain confidential and/or
privileged information and may be legally protected from disclosure.
PCU Bar Operations 2019
CIVIL LAW LAST MINUTE TIPS
(ii) valid prior tender of payment, unless the cannot favor or prejudice a third person, even
consignation was made for some legal cause; (iii) if he is aware of such contract and has acted
previous notice of the consignation has been with knowledge thereof. (Integrated
Packaging Corp. vs. CA, G.R. No. 115117,
given to the persons interested in the June 8, 2000)
performance of the obligation; (iv) the amount or
thing due was placed at the disposal of the court; 51. May a compromise agreement be disregarded
and (v) after the consignation had been made, the by an aggrieved party in case of breach
without resorting to an action for rescission?
persons interested were notified thereof. (PNB vs.
Chan, G.R. No. 206037, March 13, 2017) Yes. If one of the parties fails or refuses to abide
by the compromise, the other party may either
49. Does a manifestation of a desire to answer enforce the compromise or regard it as rescinded
for the debt of another amount to novation by
and insist upon his original demand. No action for
substitution of the debtor so as to release the
original debtor from his obligation? rescission is required, and the party aggrieved by
the breach of a compromise agreement may, if he
No. In novation by substitution of debtor, the chooses, bring the suit contemplated or involved
former debtor must be expressly released from in his original demand, as if there had never been
the obligation and the new debtor must assume any compromise agreement, without bringing an
the former‟s place. The fact that the creditor action for rescission. (Sonley vs. Equicom Savings
accepts payments from the new debtor will Bank, G.R. No. 205623, August 10, 2016)
merely result in the addition of debtors and not
novation. Novation is never presumed, and the 52. What is an Accion Pauliana?
animus novandi, whether totally or partially, must
appear by express agreement of the parties, or by It refers to the rescission of the contracts executed
their acts that are too clear and unequivocal to be by the debtor in fraud of their rights. It requires:
mistaken. (Odiamar vs. Valencia, G.R. No.
213582, June 28, 2016, J. Perlas-Bernabe)
50. What are the characteristics of contracts? a. The plaintiff asking for rescission, has credit
prior to the alienation, although demandable
a. Obligatory Force – Obligations arising from later;
contracts have the force of law between the b. The debtor has made a subsequent contract
contracting parties and should be complied conveying a patrimonial benefit to a third
with in good faith. (Art. 1159, Civil Code) person;
b. Autonomy – The contracting parties may c. The creditor has no other legal remedy to
establish such stipulations, clauses, terms satisfy his claim, but would benefit by
and conditions as they may deem rescission of the conveyance to the third
convenient, provided they are not contrary to person;
law, morals, good customs, public order, or d. The act being impugned is fraudulent; and
public policy. (Art. 1306, Civil Code) e. The the third person who received the
c. Mutuality – The contract must bind both property conveyed, if by onerous title, has
contracting parties; its validity or compliance been an accomplice in the fraud. (Anchor
cannot be left to the will of one of them. (Art. Savings Bank vs. Furigay, G.R. No. 191178,
1308, Civil Code) March 13, 2013)
d. Relativity – provides that contracts can only
bind the parties who entered into it, and it
Philippine Christian University College of Law _15 | P a g e
CONFIDENTIALITY NOTICE: The contents of this document and any attachments herewith are intended solely for the PCU
College of Law Alumni who are taking the bar Examinations this November 2018 and may contain confidential and/or
privileged information and may be legally protected from disclosure.
PCU Bar Operations 2019
CIVIL LAW LAST MINUTE TIPS
53. Kaye is the registered owner of three parcels perfected; (b) the contract must have already
of land in Cavite. She sold these parcels of been valid as to form; and (c) the contract
land to Charles through a Deed of Absolute must be enforceable under the Statute of
Sale. However, the Deed was signed by
Charles and the witness, Ton, in Makati City, Frauds.
and by Kaye in the USA, but notarized in
Cavite. Thus, the Deed could not be properly 54. What contracts are covered by the Statute of
registered with the Register of Deeds. Frauds?
a. Was the contract of sale void due to the a. An agreement that by its terms is not to be
improper notarization? performed within a year from the making thereof;
b. A special promise to answer for the debt, default,
No. The improper notarization did not affect or miscarriage of another;
the validity of the sale. The only effect of the c. An agreement made in consideration of
improper notarization was that the Deed was marriage, other than a mutual promise to marry;
stripped of its public character and reduced it d. An agreement for the sale of goods, chattels or
to a private instrument. (Sps. Aguinaldo v. things in action, at a price not less than P500.00;
Torres, G. R. No. 225808, September 11, e. An agreement for the leasing for a longer
2017, J. Perlas Bernabe) period than one year, or for the sale of real
property or of an interest therein;
f. A representation as to the credit of a third
b. May the court compel the execution of a person. (Art. 1403[2], Civil Code)
registrable deed?
55. Is a promissory note with chattel mortgage
Yes. The court may compel the execution of covered by Art. 1484 of the Civil Code?
a registrable deed because the sale is valid. No. A promissory note with chattel mortgage is not
The legal requirement that the sale of real a contract of sale of personal property in
property must appear in a public instrument installments but a loan contract, hence, it is not
is merely a coercive means granted to the covered by Art. 1484 of the Civil Code. There is no
vendor-vendee relationship. (Equitable Bank, vs.
contracting parties to enable them to
Palces, G.R. No. 214752, March 9, 2016, J.
reciprocally compel the observance of the Perlas-Bernabe)
prescribed form, and considering that the
existence of the sale of the properties the 56. Does a stipulation stating “as soon as the total
amount of the property has been paid and the
execution of a registrable deed pursuant to
Certificate of Title has been issued, an
Art. 1357 is warranted. (Sps. Aguinaldo v. Absolute Deed of Sale shall be executed
Torres, G. R. No. 225808, September 11, accordingly” partake the nature of a
2017, J. Perlas Bernabe) conditional contract of sale?
Aguado, G.R. No. 193787, April 7, 2014, J. assuming the parties intended to create it. The
Perlas-Bernabe) courts will not assist achieving improper purpose
by enforcing a resultant trust in accordance with
the „clean hands‟ doctrine. (Banco Filipino vs. Tala
57. May contractors recover from project owners Realty, G.R. No. 158866, September 9, 2013, J.
additional costs in a fixed-lump sum contract? Perlas-Bernabe)
Yes. the Civil Code allows contractors to recover SPECIAL CONTRACTS
from project owners additional costs in fixed-lump
sum contracts, as well as the increase in price for
59. What are the rules on Double Sale?
any additional work due to a subsequent change
in the original plans and specifications, provided a. If the same thing should have been sold to
that there exists: (a) written authority from the different vendees, the ownership shall be
developer or project owner ordering or allowing transferred to the person who may have first
taken possession in good faith, if it should be
the written changes in work; and (b) written movable property.
agreement of the parties with regard to the b. Should it be immovable property, the
increase in price or cost due to the change in work ownership shall belong to the person
or design modification. (Church of Jesus Christ of acquiring it who in good faith first recorded it
Latter Day Saints vs. BTL Construction, G.R. No. in the Registry of Property.
c. Should there be no inscription, the ownership
176439, January 15, 2014, J. Perlas-Bernabe) shall pertain to the person who in good faith
was first in possession; and in the absence
thereof, to the person who presents the oldest
58. Due to restrictions imposed by the General title, provided there is good faith.
Banking Act, limiting real estate ownership,
officers of AJP Bank incorporated JPB Realty,
to purchase and hold real properties owned For Article 1544 of the Civil Code to apply, the
by said bank in trust, and executed a following must concur:
“warehousing agreement.” However, JPB
Realty repudiated the warehousing a. The two sale transactions in issue must
agreement, and claimed full title over the pertain to exactly the same subject matter,
properties. The Bank, thus, instituted actions and must be valid sales transactions;
for reconveyance, contending existence of b. The two buyers at odds over the rightful
implied trust, and validity of the agreement. Is ownership of the subject matter must each
the AJP Bank correct? represent conflicting interests; and
c. The two buyers at odds over the rightful
ownership of the subject matter must each
No. The agreement is void for being contrary to have bought from the same seller. (Cheng
vs. Genato, G.R. No. 129760, December 29,
law. The Bank was well aware of the limitations
1998)
on its real estate holdings under the General
Banking Act and that its “warehousing
agreement” was a mere scheme to circumvent
the limitation. Thus, while the sale and lease of
the property is genuine and binding upon the
parties, the implied trust cannot be enforced even
60. What are the rights of the parties under the Maceda Law?
Maceda Law (R.A. No. 6552)?
The mandatory requirements are: (a) notarized
LESS THAN AT LEAST TWO YEARS notice of cancellation; and (b) refund of the cash
TWO YEARS INSTALLMENT surrender value. The actual cancellation of the
INSTALLMENT contract can only be deemed to take place upon
a. The buyer a. The buyer is entitled to a grace the expiry of a 30-day period following the receipt
is entitled to period equivalent to one month
a grace for every year of installment by the buyer of the notice of cancellation or
period of 60 payments. This may be demand for rescission by a notarial act and the full
days from exercised only once in every payment of the cash surrender value. The
the date the five years of the life of the absence of a valid cancellation makes the subject
installment contract and its extensions, if contract valid and subsisting. The buyer has two
became any.
options: (i) to pay the unpaid balance of the full
due. b. After the lapse of the grace
b. If the buyer period, the seller may cancel the value of the purchase price of the subject
fails to pay contract provided that: (i) he properties plus interest; or (ii) to accept the cash
the pays the buyer the cash surrender value of the subject properties, with
installments surrender value of the payments interest. (Gatchalian Realty, Inc. vs. Angeles,
due at the on the property equivalent to
expiration 50% of the total payments, after G.R. No. 202358, November 27, 2013)
of the grace five years of installments, and
period, the additional 5% every year but not
seller may to exceed 90% of the total 62. What is Tacita Reconduccion (implied new
cancel the payments made; and (ii) he lease)?
contract furnishes the buyer a notice of
after 30 cancellation or demand of The right of the lessee to continue enjoying the
days from rescission of the contract by material or de facto possession of the thing leased
receipt by notarial act. The cancellation of within a period of time fixed by law. It exists when
the buyer of the contract takes effect 30 days it is shown that: (a) the term of the original contract
the notice after receipt by the buyer of
of such notice and upon full of lease has expired; (b) the lessor has not given
cancellation payment of the cash the lessee a notice to vacate; and (c) the lessee
or the surrender value to the buyer. continued enjoying the thing leased for 15 days
demand of with the acquiescence of the lessor. (Zosima
rescission Incorporated vs. Salimbagat, G.R. No. 174376,
of the
contract by September 12, 2012)
notarial act.
Note: Maceda Law applies to contract of sale of 63. State the rules on the sale of a piece of land or
real estate on installment payment, including any interest therein through an agent.
residential condominium apartments, excluding
industrial lot, commercial building and sale to When sale of a piece of land or any interest
tenants. thereon is through an agent, the authority of the
latter shall be in writing; otherwise, the sale shall
be void. A special power of attorney is necessary
61. What are the mandatory requirements for a
valid and effective cancellation under the to enter into any contract by which the ownership
renders the mortgagees in bad faith. 67. What are the two (2) types of interest?
(Philippine Banking Corporation v. Dy, G.R.
No. 183774, November 14, 2012, J. Perlas-
Bernabe)
MONETARY COMPENSATORY
c. Contract of adhesion. – A contract of INTEREST INTEREST
adhesion is one wherein one party imposes a Compensation fixed Imposed by law or by the
ready-made form of contract on the other. It by the parties for the courts as penalty or
is a contract whereby almost all of its use or forbearance of indemnity for damages.
provisions are drafted by money. Right to Right to recover arises by
recover arises by virtue of damages for the
one party, with the participation of the other virtue of a contract. delay or failure to pay the
party being limited to affixing his or her principal loan
signature or “adhesion” to the contract. on which the interest is
Contracts of adhesion are not invalid per se demanded.
as they are binding as ordinary contracts. (Odiamar vs. Valencia, G.R. No. 213582, June 28, 2016,
(Encarnaccion v. Phoenix Ready, G. R. No. J. Perlas-Bernabe)
225402, September 04, 2017, J. Perlas
Bernabe)
68. Distinguish Option Contract from Right of First
Refusal.
d. Accommodation Mortgagor. – A third
person who is not a debtor to a principal OPTION CONTRACT RIGHT OF FIRST REFUSAL
obligation but merely secures it by A preparatory contract While the object might be
mortgaging his or her own property. Like an in which one party made determinate, the
accommodation party to a negotiable grants to another, for a exercise of the right would be
instrument, the accommodation mortgagor in fixed period and at a dependent not only on the
effect becomes a surety to enable the determined price, the grantor's eventual intention
accommodated debtor to obtain credit. (Sps. privilege to buy or sell, to enter into a binding
Sierra vs. Paic Savings and Mortgage Bank, or to decide whether or juridical relation with another
Inc., G.R. No. 197857, September 10, 2014, not to enter into a but also on terms, including
J. Perlas-Bernabe) principal contract. It the price, that are yet to be
binds the party who firmed up. The right of first
has given the option refusal is often incorporated
e. Pactum Commissorium. – Prohibits the
not to enter into the in lease contracts. When a
creditor from appropriating the things given
by way of pledge or mortgage, or from principal contract with lease contract contains a
disposing of them; any stipulation to the any other person right of first refusal, the lessor
contrary is null and void. It exists when (i) during the period is under a legal duty to the
there is a pledge or mortgage wherein designated, and within lessee not to sell to anybody
property is pledged or mortgaged by way of that period, to enter at any price until after he has
security for the payment of the principal into such contract with made an offer to sell to the
obligation; and (ii) there is a stipulation for an the one to whom the latter at a certain price and
automatic appropriation by the creditor of the option was granted, if the lessee has failed to
thing pledged or mortgaged in the event of the latter should accept it. The lessee has a
decide to use the right that the lessor's first
non-payment of the principal obligation within
the stipulated period. (Sps. Pen vs. Sps. option. It must be offer shall be in his favor.
Julian, G.R. No. 160408, January 11, 2016) supported by (Osmeña vs. PSALM, G.R.
No. 212686, September 28,
consideration. 2015)
a Good
Father of a
Family in the
selection
and
supervision
of
its
employees.
(Arts. 1755 and 1759, Civil Code; Art. 103, RPC;
FGU Insurance Corporation vs. G.P. Sarmiento
Trucking Corporation, G.R. No. 141910, August
6, 2002; Calang vs. People, G.R. No. 190696,
August 3, 2010, Rabuya, supra.)