2020 UP BOC Civil Law Reviewer

U.P.
LAW BOC CIVIL LAW

U.P. LAW BOC CIVIL LAW
TABLE OF CONTENTS
H. PATERNITY AND FILIATION ..................... 88

IN GENERAL ..........................................................1
1. Legitimate children ................................ 90
A. WHEN LAW TAKES EFFECT ............................2 2. Proof of filiation ..................................... 91
B. RETROACTIVITY OF LAWS ........................2 3. Illegitimate children................................ 92
C. MANDATORY OR PROHIBITORY LAWS .....2 4. Impugned Legitimacy/Action to Impugn
D. WAIVER OF RIGHTS ...................................2 Legitimacy ............................................... 95
E. REPEAL OF LAWS ......................................3 5. Legitimated children .............................. 97
F. CONFLICT OF LAWS ..................................3 I. ADOPTION ............................................... 98
G. HUMAN RELATIONS ................................. 22 1. RA 8552: Domestic Adoption Law .......... 98
H. APPLICABILITY OF PENAL LAWS............. 28 2. RA 8043: Law on Inter-Country Adoption
105
PERSONS AND FAMILY RELATIONS .................. 29
J. SUPPORT .............................................. 108
A. PERSONS................................................. 30 1. What it comprises ................................... 108
1. Kinds of Persons.................................... 30 2. Who are obliged to give support ............... 108
2. Capacity to act ....................................... 33 3. Source of support ................................... 109
3. Domicile and Residence of Persons ....... 37 4. Order of support ..................................... 109
B. RIGHTS AND OBLIGATIONS OF COUPLES IN 5. Amount of support .................................. 110
INTIMATE RELATIONSHIPS ......................... 38 6. Manner and time of payment ................... 110
C. MARRIAGE ............................................... 42 7. Renunciation and termination.................. 110
1. Requisites ............................................. 42 8. Support pendente lite.............................. 111
2. Marriages Celebrated Abroad................. 47 9. Procedure in applications for support........ 111
3. Foreign Divorce ..................................... 47 K. PARENTAL AUTHORITY ........................ 112
4. Void Marriages ...................................... 48 1. General Provisions .............................. 112
5. Voidable marriages ................................ 55 2. Substitute parental authority ................ 112
6. Unmarried Cohabitation ......................... 60 3. Special parental authority .................... 112
D. LEGAL SEPARATION................................ 60 4. Effect of parental authority over the child’s
1. Grounds for Legal Separation [Art. 55, FC]: person ................................................ 113
............................................................. 60 5. Effects of parental authority over the child’s
2. Defenses [Art. 56, FC]: ........................... 62 property................................................. 114
3. Procedure.............................................. 63 6. Suspension or termination of parental
4. Effects of filing petition ........................... 64 authority ................................................ 114
5. Effects of pendency ............................... 64 7. Solo parents (R.A. No. 8972) ............... 115
6. Effects of decree of legal separation ....... 64 L. EMANCIPATION ..................................... 117
7. Reconciliation ........................................ 65 1. Cause of emancipation ........................ 117
8. Effect of death of one of the parties ........ 65 2. Effect of emancipation ......................... 117
E. RIGHTS AND OBLIGATIONS BETWEEN M. SUMMARY JUDICIAL PROCEEDINGS IN THE
HUSBAND AND WIFE ................................... 69 FAMILY CODE ............................................ 117
F. PROPERTY RELATIONS OF THE SPOUSES N. USE OF SURNAMES .......................... 121
................................................................. 70 O. ABSENCE........................................... 122
1. Marriage settlements.............................. 70 1. Provisional measures in case of absence ...
2. Donations by reason of marriage ........................................................... 122
(Donations Propter Nuptias) ................... 71 2. Declaration of absence ........................ 122
3. Void donations by the spouses ............... 73 3. Administration of the property of the
4. Absolute Community of Property ............ 74 absentee ............................................... 123
5. Conjugal Partnership of Gains ................ 74 4. Presumption of death........................... 123
6. Regime of separation of property............ 82 P. CIVIL REGISTRAR .................................. 124
7. Judicial separation of property ................ 82
PROPERTY ........................................................ 127
8. Property regime of unions without marriage
............................................................. 84 A. CLASSIFICATION OF PROPERTY .......... 128
G. THE FAMILY ............................................. 85 1. Immovables [Art. 415, CC] ...................... 128
1. Concept of family ................................... 85 2. Movables [Art. 416, 417, CC] .................. 129
2. Effects on legal disputes ........................ 86 B. OWNERSHIP .......................................... 130
3. Family home .............................................. 86 1. Bundle of rights ................................... 130
2. Distinction between real and personal rights. J. MODES OF ACQUIRING OWNERSHIP ... 193
........................................................... 130
PRESCRIPTION ................................................. 205
3. Modes of Acquiring Ownership ............. 131
4. Limitations of Ownership ...................... 131 A. TYPES OF PRESCRIPTION .................... 205
C. ACCESSION ........................................... 132 1. Acquisitive Prescription........................ 205
1. Right to hidden treasure ....................... 132 2. Extinctive Prescription ......................... 206
2. Rules of accession............................... 132 B. WHEN PRESCRIPTION IS INAPPLICABLE ...
D. QUIETING OF TITLE ............................... 142 ............................................................... 207
1. Requisites ........................................... 142 C. PRESCRIPTION OR LIMITATION OF
2. Distinctions between quieting title and ACTIONS................................................ 208
removing/preventing a cloud ................... 142 D. INTERRUPTION [ART. 1155, CC] ............ 209
3. Prescription/non-prescription of action .. 144
SUCCESSION .................................................... 210
E. CO-OWNERSHIP .................................... 145
1. Characteristics of Co-ownership ........... 145 A. GENERAL PROVISIONS ................................ 211
2. Sources of Co-ownership ..................... 146 1. Definition ............................................. 211
3. Rights of Co-owners ............................ 147 2. Succession occurs at the moment of death
4. Termination of Co-ownership................ 152 ........................................................... 211
F. POSSESSION ......................................... 153 3. Kinds of successors............................. 212
1. Characteristics ..................................... 153 B. TESTAMENTARY SUCCESSION ...................... 213
2. Acquisition of Possession..................... 154 1. Wills .................................................... 213
3. Effects of Possession ........................... 156 2. Institution of heirs ................................ 221
4. Loss of Movable or Unlawful Deprivation of 3. Substitution of heirs ............................. 223
a Movable .............................................. 157 4. Conditional testamentary dispositions and
5. Possession in the Concept of Owner, Holder, testamentary dispositions with a term ..... 224
One’s Own Name, and in the Name of 5. Legitime .............................................. 226
Another .................................................. 158 C. LEGAL OR INTESTATE SUCCESSION ............ 238
6. Rights of the Possessor ....................... 160 1. General Provisions .............................. 238
7. Loss or Termination of Possession ....... 162 2. Order of Intestate Succession ................. 241
G. USUFRUCT ................................................ 162 D. PROVISIONS COMMON TO TESTATE AND INTESTATE
1. Characteristics ..................................... 162 SUCCESSION ................................................. 243
2. Classification ....................................... 163 1. Right of accretion ................................ 243
3. Rights and Obligations of Usufructuary . 166 2. Capacity to Succeed by Will or Intestacy ....
4. Rights of the Owner ............................. 170 ........................................................... 244
5. Extinction, Termination, and Extinguishment 3. Acceptance and repudiation of the
........................................................... 171 inheritance............................................. 245
H. EASEMENTS............................................... 174 4. Collation.............................................. 246
1. Characteristics ..................................... 174 5. Partition and Distribution of Estate ....... 248
2. Classification ....................................... 176
OBLIGATIONS AND CONTRACTS .................... 252
3. Modes of Acquiring Easements ............ 184
4. Rights and Obligations of the Owners of A. GENERAL PROVISIONS......................... 253
Dominant and Servient Estates............... 186 1. Definition ............................................. 253
5. Modes of Extinguishment ..................... 187 2. Elements of an obligation..................... 253
I. NUISANCE.............................................. 188 3. Sources of Obligations......................... 253
1. Nuisance per se................................... 188 B. NATURE AND EFFECT OF OBLIGATIONS
2. Nuisance per accidens ......................... 188 254
3. Liabilities ............................................. 190 1. Obligation to give................................. 254
4. No Prescription .................................... 190 2. Obligation to do or not to do ................. 255
5. Criminal prosecution as a remedy......... 190 3. Transmissibility of obligations............... 255
6. Judgment with abatement as a remedy. 190 4. Performance of Obligations.................. 255
7. Extrajudicial abatement as a remedy .... 191 5. Breaches of Obligations....................... 256
8. Special Injury to Individual .................... 191 6. Remedies available to creditor in cases of
9. Right of Individual to Abate Public Nuisance. breach................................................... 260
........................................................... 192 C. KINDS OF OBLIGATIONS ....................... 263
10. Right to Damages ............................ 192 1. Pure.................................................... 263
11. Defenses to Action........................... 193 2. Conditional .......................................... 263
12. Who May Sue on Private Nuisance... 193 3. Obligation with a period or a term ......... 267
4. Alternative or facultative ....................... 268 3.Simple Loan (mutuum) ........................ 396

5. Joint and Solidary Obligations .............. 270 4.Interests On Loan ................................ 397
6. Obligations with a penal clause ............ 274 F. DEPOSIT ................................................ 401
D. EXTINGUISHMENT OF OBLIGATIONS.... 275 1. Voluntary Deposit ................................ 401
1. Payment or performance ...................... 275 2. Necessary Deposit .............................. 403
2. Loss of determinate thing due or 3. Judicial Deposit Or Sequestration ........ 404
impossibility or difficulty of performance .. 281 G. LEASE ...................................................... 404
3. Condonation or remission of debt ......... 283 1. Definition ............................................. 404
4. Confusion ............................................ 286 2. Who are Qualified or Disqualified? ........... 405
5. Compensation ..................................... 286 3. Obligations of Parties.............................. 405
6. Novation .............................................. 289 4. Payment................................................. 406
5. Termination ............................................ 407
CONTRACTS…………………………………………292
6. Renewal ................................................. 407
A. GENERAL PROVISIONS ......................... 292 7. Unlawful Detainer ................................ 407
1. Stages of Contracts ............................. 292 8. Transfer of Lease ................................ 408
2. Classification ....................................... 292 9. Sub-Lease.............................................. 408
3. Essential requisites .............................. 293 10. Warranties............................................ 409
B. FORMALITY ............................................ 302 11. Special Provisions ................................ 409
C. REFORMATION OF INSTRUMENTS ....... 304
QUASI-CONTRACTS ......................................... 411
D. INTERPRETATION OF CONTRACTS ...... 307
E. DEFECTIVE CONTRACTS ...................... 310 A. NEGOTIORUM GESTIO (UNAUTHORIZED
1. Rescissible contracts ........................... 310 MANAGEMENT) .......................................... 411
2. Voidable contracts ............................... 313 B. SOLUTIO INDEBITI (UNDUE PAYMENT)............ 412
3. Unenforceable contracts ...................... 315 C. OTHER QUASI-CONTRACTS ......................... 414
4. Void or inexistent contracts .................. 316
LAND TITLES AND DEEDS................................ 415
5. Distinguish: resolution and rescission of
contracts ................................................ 319 A. TORRENS SYSTEM................................... 416
1. Concept and Background .................... 416
NATURAL OBLIGATIONS .................................. 320
2. Certificate of Title ................................ 419
A. DEFINITION ................................................ 324 B. AGRARIAN TITLES AND ANCESTRAL LANDS AND
B. KINDS OF ESTOPPEL ................................... 324 DOMAINS ...................................................... 421
C. PERSONS BOUND........................................ 324 1. Concept and Registration of Agrarian Titles
D. CASES WHERE ESTOPPEL APPLIES ................. 324 ........................................................... 422
E. LACHES .................................................... 325 2. Concept and Registration of Ancestral Lands
and Domains ......................................... 424
SPECIAL CONTRACTS ...................................... 326
C. CITIZENSHIP REQUIREMENT ......................... 425
A. SALES ...................................................... 327 1. Individuals ........................................... 425
1. General provisions ............................... 327 2. Corporations ....................................... 426
2. Parties................................................. 333 D. ORIGINAL REGISTRATION ............................ 427
3. Obligations of the Vendor ..................... 335 1. Who May Apply ................................... 427
4. Obligations of the Vendee .................... 342 2. Registration Process and Requirements.....
5. Transfer of Ownership.......................... 344 ........................................................... 429
6. Risk of Loss ......................................... 350 3. Remedies............................................ 434
7. Documents of Title ............................... 352 4. Cadastral Registration ......................... 438
8. Warranties ........................................... 354 E. SUBSEQUENT REGISTRATION ....................... 440
9. Breach of Contract ............................... 360 1. Voluntary Dealings .............................. 442
10. Performance of the Contract............. 368 2. Involuntary Dealings ............................ 445
11. Extinguishment of Sales ................... 371 F. NON-REGISTRABLE PROPERTIES .................. 448
B. TRUSTS .................................................... 379 G. DEALINGS WITH UNREGISTERED LANDS ......... 450
C. AGENCY .................................................... 383
TORTS ............................................................... 451
1. Nature and form ................................... 383
2. Kinds ................................................... 385 A. PRINCIPLES ............................................... 452
D. COMPROMISE........................................ 388 1. Abuse of Right; elements ..................... 452
E. LOAN ...................................................... 392 2. Unjust Enrichment ............................... 454
1. Loan .................................................... 392 3. Liability without fault ............................ 454
2. Commodatum ...................................... 394 4. Acts Contrary to Law ........................... 455
5. Acts Contrary to Morals........................ 455 H. SPECIAL LIABILITY IN PARTICULAR ACTIVITIES . 487

B. CLASSIFICATION OF TORTS .......................... 457 1. In general; concept .............................. 487
1. According to Manner of Commission .... 457 2. Products liability; manufacturers or
2. According to Scope .............................. 458 processors............................................. 487
C. THE TORTFEASOR ...................................... 459 3. Nuisance............................................. 487
1. Direct Tortfeasor .................................. 459 4. Violation of constitutional rights; violation of
2. Persons made responsible for others.... 459 civil liberties ........................................... 490
3. Joint tortfeasors ................................... 465 5. Violation of rights committed by public
D. PROXIMATE CAUSE ..................................... 466 officers .................................................. 491
1. Concept............................................... 466 6. Provinces, cities and municipalities ...... 492
2. Cause in Fact ...................................... 467 7. Owner of motor vehicle ........................ 492
3. Efficient Intervening Cause................... 467 8. Proprietor of building or structure or thing ...
4. Cause as distinguished from condition.. 467 ........................................................... 493
5. Last Clear Chance ............................... 468 9. Head of family ..................................... 495
E. LEGAL INJURY ............................................ 468 10. Violations of data privacy ................. 495
1. Concept............................................... 468 I. STRICT LIABILITY .................................. 501
2. Elements of right .................................. 469 1. Animals; possessor and user of an animal..
3. Violation of right or legal injury.............. 469 ........................................................... 501
4. Classes of injury .................................. 469 2. Attractive Nuisance.............................. 501
F. INTENTIONAL TORTS ................................... 470 3. Products liability; Consumer Act ........... 502
1. General ............................................... 470 A. GENERAL CONSIDERATIONS ............... 505
2. Interference with rights to persons and 1. Classification ....................................... 505
property ................................................. 470 2. Kinds of Damages ............................... 505
3. Interference with relations .................... 474 3. When damages may be recovered ....... 525
G. NEGLIGENCE ............................................. 477 B. DAMAGES IN CASE OF DEATH....................... 526
1. Concept............................................... 477 C. GRADUATION OF DAMAGES .......................... 527
2. Good father of a family or reasonably 1. Duty of Injured Party ............................ 527
prudent person....................................... 477 2. Rules .................................................. 527
3. Standard of care; emergency rule ......... 478
4. Unreasonable risk of harm ................... 479
5. Evidence ............................................. 479
6. Presumption of negligence ................... 480
7. Defenses ............................................. 484
U.P. LAW BOC IN GENERAL CIVIL LAW
IN GENERAL
CIVIL LAW
Page 1 of 532
U.P. LAW BOC IN GENERAL CIVIL LAW
A. WHEN LAW TAKES B. RETROACTIVITY OF

EFFECT LAWS
Art. 2, CC. Laws shall take effect after fifteen Laws shall have no retroactive effect, unless
days following the completion of their the contrary is provided. [Art. 4, CC]
publication either in the Official Gazette, or
in a newspaper of general circulation in the General Rule: All statutes are to be construed
Philippines, unless it is otherwise provided as having only prospective operation.
(As amended by E.O. 200).
Exceptions
General Rules a. When the law itself expressly provides
• The clause "unless it is otherwise • Exceptions to Exception:
provided" refers to the date of effectivity 1. Ex post facto law
(i.e., as to when a law shall take effect) and 2. Impairment of contract
not to the requirement of publication itself, b. In case of remedial statutes
which cannot, in any event, be omitted. c. In case of curative statutes
[Tañada v. Tuvera, G.R. No. L-63915 d. In case of laws interpreting others
(1986)] e. In case of laws creating new rights [Bona v.
o Publication is indispensable in Briones, G.R. No. L-10806 (1918)].
every case, but the legislature may f. Penal Laws favorable to the accused [Art.
in its discretion provide that the 22, RPC].
usual fifteen-day period shall be
shortened or extended. [Tañada v. C. MANDATORY OR
Tuvera, G.R. No. L-63915 (1986)]
• When, on the other hand, the PROHIBITORY LAWS
administrative rule goes beyond merely
providing for the means that can facilitate Art. 5, CC. Acts executed against the
or render least cumbersome the provisions of mandatory or prohibitory laws
implementation of the law but substantially shall be void, except when the law itself
increases the burden of those governed, it authorizes their validity.
behooves the agency to accord at least to
those directly affected a chance to be Par. 3, Art. 17, CC. Prohibitive laws
heard, and thereafter to be duly informed, concerning persons, their acts or property,
before that new issuance is given the force and those which have for their object public
and effect of law. [Commissioner v. order, public policy and good customs shall
Hypermix, G.R. No. 179579 (2012)] not be rendered ineffective by laws or
judgments promulgated, or by
Exception: Interpretative [implementing] rules determinations or conventions agreed upon
and regulations and those internal in nature. in a foreign country.
[Tañada v. Tuvera, G.R. No. L-63915 (1986)]
D. WAIVER OF RIGHTS
Art. 6, CC. Rights may be waived, unless the

waiver is contrary to law, public order, public
policy, morals, or good customs, or
prejudicial to a third person with a right
recognized by law.
Page 2 of 532
U.P. LAW BOC PERSONS AND FAMILY RELATIONS CIVIL LAW
Waiver When the courts declare a law to be

Voluntary and intentional relinquishment or inconsistent with the Constitution, the former
abandonment of a known legal right or shall be void and the latter shall govern.
privilege. It has been ruled that a waiver to be
valid and effective must be couched in clear Administrative or executive acts, orders and
and unequivocal terms which leave no doubt regulations shall be valid only when they are
as to the intention of a party to give up a right not contrary to the laws or the Constitution. [Art.
or benefit which legally pertains to him. [RB 7, CC]
Michael Press v. Galit, G.R. No. 153510
(2008)] TWO KINDS OF REPEAL [Tolentino]
a. Express or Declared: contained in a
The waiver should be made in a positive special provision of a subsequent law;
manner [Dona Adela v. Tidcorp, G.R. No. names the law repealed.
201931 (2015)]. b. Implied or Tacit: takes place when the
provisions of the subsequent law are
Requisites of a Valid Waiver incompatible or inconsistent with those of
a. Existence of a right an earlier law.
b. Knowledge of the existence thereof
c. An intention to relinquish the right. [Herrera The fundamental rule is that the legislature
v. Borromeo, G.R. No. L-41171, (1987)] should be presumed to have known the
existing laws on the subject and not have
General Rule: Rights may be waived. enacted conflicting statutes. Hence, all doubts
must be resolved against any implied repeal,
Exceptions and all efforts should be exerted in order to
a. If the waiver is contrary to law, public order, harmonize and give effect to all laws on the
public policy, morals or good customs subject. [Republic v. Marcopper Mining, G.R.
b. If the waiver prejudices a third person No. 137174 (2000)]
c. If the alleged rights do not yet exist
d. If the right is a natural right
F. CONFLICT OF LAWS
No compromise upon the following
questions shall be valid [Art. 2035, CC]:
a. The civil status of persons;
b. The validity of a marriage or a legal 1. Introduction
separation;
c. Any ground for legal separation; The world is divided into many territorial units,
d. Future support; each imposing its own set of laws. With the
e. The jurisdiction of courts; developed means of transportation and
f. Future legitime. communication, distances between these
nations have shortened allowing more and
more people to travel and enter into contracts.
These dynamics cause the occurrence of
E. REPEAL OF LAWS events that contain elements significant to
more than one legal system which give rise to
problems that private international law seeks to
Laws are repealed only by subsequent ones, resolve. [Coquia and Aguiling-Pangalangan]
and their violation or non-observance shall not
be excused by disuse, or custom or practice to Its incorporation in municipal laws is based not
the contrary. on extraterritorial validity of the foreign law but
on comity of nations.
Page 3 of 532
“Comity,” in the legal sense, is neither a matter State may

of absolute obligation, on the one hand, nor of resort to
mere courtesy and good will, upon the other. diplomatic
But it is the recognition which one nation allows protest,
within its territory to the legislative, executive or peaceful
All remedies
judicial acts of another nation, having due means of
provided by
regard both to international duty and settlement of
municipal
convenience, and to the rights of its own international
laws of the
disputes such
citizens or of other persons who are under the Remedies state
as diplomatic
protection of its laws. [Hilton v. Guyot, 159 US such as resort
negotiations,
113 (1895)] to courts or
arbitration or
administrative
conciliation or
a. Definition tribunals
adjudication
by filing a
That part of municipal law which governs cases case before
involving a foreign element. international
tribunals
That part of law which comes into play when
the issue before the court affects some fact or b. Scope
event, or transaction that is so closely
connected with a foreign system of law as to 1. Adjudicatory jurisdiction: Determines
necessitate recourse to that system. [Chesire] the circumstances that allow for a legal
order to impose upon its judiciary the task
The law concerning the rights of persons within of deciding multi-state and multinational
the territory and dominion of one nation by disputes
reason of acts, private or public, done within 2. Choice-of-law: Refers to the probable
the dominion of another nation. [Hilton v. sources from which the applicable law of
Guyot] the controversy may be derived.
3. Recognition and enforcement of foreign
Public International Law v. Private judgments: Deals with the study of
International Law [Coquia and Aguiling- situations which justify recognition by the
Pangalangan] forum court of a judgment rendered by a
Public Private foreign court or the enforcement of such
As to Internatio International within the forum.
nal Law Law
States and c. Sources
Persons internationall Individuals or 1. Codes and Statutes
involved y recognized corporations
2. Treaties and International Conventions
organizations
3. Treatises, Commentaries and Studies
States in their Private
of Learned Societies
relationships transactions
4. Judicial Decisions
amongst between
Transactio themselves private
ns involved (Except individuals
cases of which involve
human rights a foreign
violations) element
Page 4 of 532
2. Jurisdiction and Choice of ii. Types of Judicial Jurisdiction

Law JURISDICTION OVER THE PERSON
Competence or power of a court to render a
Jurisdiction [Coquia and judgment that will bind the parties to a case.
Aguiling-Pangalangan]
Required in in personam proceedings.
Judicial Legislative Acquired by the voluntary appearance of a
Jurisdiction Jurisdiction party and his submission to authority.
The power or The ability of the
authority of a court state to promulgate How Acquired
to try a case, render laws and enforce a. Over the person of the PLAINTIFF –
judgment, and them on all persons acquired from the moment he invokes the
execute it in and property within aid of the court by filing a suit.
accordance with law its territory
b. Over the person of the DEFENDANT –
i. Basis of Exercise of Judicial ! When he enters his appearance
Jurisdiction UNLESS appearance is for the sole
purpose of protesting the jurisdiction of
Traditional Approach: Based on the state’s the court.
physical power over persons and property ! When he is served with the legal
within its territory. process within the state
○ Personal Service
Modern Approach: Minimum contacts and ○ Substituted Service
fundamental fairness test ○ When subsequent proceedings
arise out of his original cause of
Minimum contacts must exist between the action including counterclaims
forum and defendant. Due process only filed by the defendant
requires that a defendant, if not present within
the territory, should have certain minimum JURISDICTION OVER THE PROPERTY
contacts with it such that maintenance of the Results either from:
suit does not offend traditional notions of fair a. Seizure of the property under a legal
play and substantive justice. It includes process; or
presence in the state through acts of b. Institution of legal proceedings wherein the
authorized agents. [International Shoe Co. v. court’s power over the property is
Washington, 326 US 310 (1945)] recognized and made effective
Long-Arm Statutes – Municipal Laws that Due process is satisfied by summons through
specify the kinds of contacts upon which publication in these in rem and quasi in rem
jurisdiction will be asserted by the forum court. proceedings
These laws allow a court to obtain to obtain
personal jurisdiction over an out of-state JURISDICTION OVER THE SUBJECT
defendant who has sufficient connection with MATTER
the state, e.g. tortious act done within the state, More than the general power conferred by law
or a contract celebrated in the state. to take cognizance of cases of a general class
to which the case belongs. The power of the
court must be properly invoked by filing a
petition. Jurisdiction over the subject matter
cannot be conferred by consent of the parties.
Page 5 of 532
DIRECT VS. INDIRECT JURISDICTION ● When the foreign law is CONTRARY to an

Indirect important PUBLIC POLICY of the forum;
Direct Jurisdiction
Jurisdiction ● When the foreign law is PENAL in nature;
answers the answers the question ● When the foreign law is PROCEDURAL in
question WON a WON a court can nature;
court can try and recognize and/or ● When the foreign law is purely FISCAL OR
decide a case enforce a judgment ADMINISTRATIVE in nature;
● When the application of foreign law will
iii. Ways of Dealing with a Conflicts work UNDENIABLE INJUSTICE TO
Problem CITIZENS of the forum;
● When the case involves REAL OR
DISMISS THE CASE PERSONAL PROPERTY situated in the
a) For Lack of Jurisdiction: Absent forum;
jurisdiction over the person, property or ● When the application of the foreign law
subject matter, the court should dismiss might ENDANGER THE VITAL INTEREST
the case. of the state;
b) Doctrine of Forum Non Conveniens: ● When the foreign law is CONTRARY TO
Literally means “forum is inconvenient.” GOOD MORALS.
Thus, even if the court assumes jurisdiction
over the parties and the subject matter, it Choice of Law
may decline to try the case on the ground
that the controversy may be more suitably 1. Approaches to Choice of Law
tried elsewhere.
Traditional Approaches
ASSUME JURISDICTION
Courts may apply either: An act done in a foreign
a) Forum Law; or jurisdiction gives rise to the
b) Foreign Law existence of a right if the laws
of that state provides so.
The presence of any one of the following
factors would justify the application of forum This right vests in the
law: Vested plaintiffs and carry it with
1. A specific law of the forum decrees that Rights them to be enforced in any
internal law should apply Theory forum he chooses to bring
2. The proper foreign law was not suit.
properly pleaded and proved
● Foreign law must be proved as The forum refers to the law of
a fact through Rules of the place of occurrence of the
Evidence (e.g. official “last act” necessary to
publication or a copy which has complete the cause of action.
been consularized) The court treats a case as
● Doctrine of Processual Local Law purely domestic case and
Presumption – absent contrary Theory applies local law regardless
proof, foreign law is presumed of foreign elements.
to be the same as Philippine Made with reference to
law. (Also known as the principles of preference
Cavers’
Doctrine of Presumed Identity) based on considerations of
Principles
3. The case falls under any of the justice and social expediency
of
exceptions to the application of foreign and should not be the result
Preference
law. of mechanical application of
the rule.
Page 6 of 532
The Problem of Characterization

Traditional approaches are used for SINGLE-
MULTI-ASPECT
simplicity, convenience, uniformity, and ASPECT
METHOD
predictability. At times, at the expense of just METHOD
results. Traditional Modern
All important factors of the
Modern Approaches Concentrates case are analyzed and the
Place of Most Identifies a plurality of factors on one applicable law is arrived at
Significant and factual contacts in light element of a by “rationally elaborating
Relationship of choice of law principles. situation in and applying the policies
Looks at the policy behind order to and purposes underlying
Interest the laws of the involved state connect the the particular legal rules
Analysis and the interest each state case to a that come in question as
had in applying its own law. particular legal well as the needs of
Weighs conflicting interests community interstate or international
and apply the law of the state intercourse”
Comparative
Impairment
whose interest would be
more impaired if its laws The Philippines follows the single-aspect
were not followed. method.
This approach looked into
the general policies of the Examples
state beyond those reflected ● Philippine law governs citizens of the
Functional
Analysis
in its substantive law and to Philippines in matters relating to family
policies and values “relating rights, duties, the status, condition and
to effective and harmonious legal capacity of persons. [Art. 15, CC]
intercourse between states.” ● Real and personal property are governed
by the law of the country where they are
Escape devices: The difficulty in following situated. [Art. 16, CC]
territorially-oriented rules is the inherent rigidity ● National law of the deceased person
and unjust decisions that may result from their governs intestate and testamentary
application. [Coquia and Aguiling- succession both with respect to order of
Pangalangan] succession, amount of successional rights
and intrinsic validity of testamentary
To avoid this, courts have resorted to “escape provisions regardless of where the
devices” such as: property may be found. [Art. 16, CC]
a) Characterization ● Law of the place of execution governs the
b) Renvoi forms and solemnities of wills and other
c) Dépeçage public instruments. [Art. 17, CC]
d) Public policy exemption – the “ultimate ● When acts are executed before the
escape device” diplomatic or consular officials of the
Republic of the Philippines in a foreign
country, the solemnities established by
Philippine laws shall be observed in their
execution. [Art. 17, CC]
● Prohibitive laws concerning persons, acts
or property and those which have as their
object, public order, public policy, and good
customs are to be governed by Philippine
law, unaffected by laws, judgments and
determinations of foreign countries. [Art.
17, CC]
Page 7 of 532
CHARACTERIZATION the matter to the law of either the forum

Characterization is the process by which a (remission – 2a in figure below) or a third state
court at the beginning of the choice-of-law (transmission – 2b in figure below).
process assigns a disputed question to an area
in substantive law. State State State
A B C
It is an escape device because by
characterizing the problem differently, it can
produce results which the forum court
Internal Internal
law 1 law
considers as just and sound.
2b
SUBJECT-MATTER Conflict Conflict
CHARACTERIZATION of Law of Law
Classification by a court of a factual situation Rule 2a Rule
into a legal category.
SUBSTANCE-PROCEDURE DICHOTOMY
Directs the court to the extent it will apply Limitation of renvoi
foreign law The process of renvoi is not applicable in
SUBSTANTIVE PROCEDURAL instances where there is a FALSE CONFLICT.
The Court MAY The Court SHALL apply There’s a false conflict when one of the states
apply foreign law forum law does not have a real interest in applying its law
in the controversy.
Statute of Frauds: May be substantive or
procedural: Ways of Dealing with the Problem of
• SUBSTANTIVE – if the words of the law Renvoi
relate to forbidding the CREATION of Forum conflict rules is deemed
obligation. to refer only to the internal law
• PROCEDURAL – one that Reject
of that state (i.e. that which
forbids ENFORCEMENT of the obligation. the
would apply to a domestic case
renvoi
with no conflict-of-laws
Statutes of Limitation and Borrowing complications).
Statute Looks into not just the internal
General Rule: Statutes of limitations were Accept
law of the foreign state, but also
classified as procedural because they barred the
the choice-of-law rules
only the legal remedy without impairing the renvoi
applicable in multi-state cases.
substantive right involved. Desistan The forum court, upon
ce/ reference to foreign law, sees
Exception: If the statute provides a shorter Mutual that such law only applies to its
period for certain types of claims that fall within disclaim own nationals and has no
a wider classification covered by a general er of provision for application to a
statute of limitations. (Specificity Test) jurisdicti non-national.
Borrowing statutes on
Bars the filing of a suit in the forum if it is The forum court would assume
already barred by the statute of limitations in Foreign the same position that the
the place where the cause of action arose. Court foreign court would take were
Theory the case litigated in the foreign
RENVOI court.
Procedure whereby a jural matter presented is
referred by the conflict of laws rules of the
forum to a foreign state (Step 1 in figure below),
the conflict of laws rule of which, in turn, refers
Page 8 of 532
DÉPEÇAGE with the law of evidence of the state where it is

Phenomenon where “different aspects of a presented.
case involving a foreign element may be
governed by different systems of laws.” Proof of Foreign Law
Methods to prove foreign law
● A case may be dissected into different a) Official publication of the law (and
issues, each analyzed as to which law shall consularized) [Rule 132, Section 24, Rules
apply. of Court]
● When such issue by issue analysis results b) Copy of the law attested by the officer
in the application of different laws to having the legal custody of the record or by
different issues, then dépeçage occurs. his deputy. (and consularized) [Rule 132,
● Dépeçage is the effect of issue by issue Section 24, Rules of Court]
analysis. c) Learned treatises and expert witness for
unwritten foreign law [Rule 130, Section
PUBLIC POLICY EXEMPTION 46, Rules of Court]
The courts of the forum will not enforce any
foreign claim obnoxious to the forum’s public Effect of Failure to Plead and Prove Foreign
policy. To enforce the one-year prescriptive Law
period of the law of Bahrain...would contravene a. Dismiss the case for inability to establish a
the public policy on the protection to cause of action
labor…[therefore], the applicable law on b. Processual Presumption / Presumed
prescription is the Philippine law [Cadalin v. Identity – assume that the foreign law is
POEA Administrator, 238 SCRA 721 (1994)]. the same as the law of the forum
c. Apply the law of the forum
2. Notice and Proof of Foreign Law
Apostille Convention
Extent of Judicial Notice The Apostille Convention on Authentication of
General Rule: Judge is not authorized to take Documents took effect in the Philippines on
judicial notice of foreign law and is presumed May 14, 2019. This means that the DFA will
to know only domestic law. no longer issue Authentication Certificates
and instead will affix an Apostille to public
Exception: When judicial notice is allowed. documents for use abroad as proof of
[Rule 129, Section 1, Rules of Court] authentication in Apostille-contracting parties.
It is allowed when the court is evidently familiar
with such foreign law. [Delgado v. Republic, An apostille certifies “the authenticity of the
G.R. No. L-2546 (1950)] signature, the capacity in which the person
signing the document has acted and, where
Familiarity with the foreign law may be because appropriate, the identity of the seal or stamp
Philippine law was derived therefrom or the which it bears.” [Art. 5, Apostille Convention]
judge had previously ruled upon it in other
cases. [Coquia and Aguiling-Pangalangan] Exceptions to the Application of Foreign
Law
Burden of Proof a. A specific law of the forum decrees that
The party whose cause of action or defense internal law should apply
depended upon the foreign law has the burden Examples:
of proving the foreign law. [“He who alleges ● Real and personal property are subject
must prove”] to the law of the country where they are
situated. [Art. 16, CC]
Such foreign law is treated as a question of fact ● Revocation of a will done outside the
to be properly pleade and proved in conformity Philippines may be valid if done
according to the law of the place where
Page 9 of 532
the will was made or lex domicilii. [Art. a. Those who are citizens of the Philippines at
829, CC] the time of the adoption of the Constitution
● Filipinos are prohibited from making (1987)
joint wills even when done abroad. [Art. b. Those whose fathers or mothers are
819, CC] citizens of the Philippines
b. The proper foreign law was not properly c. Those born before January 17, 1973 of
pleaded and proved. Filipino mothers, who elect Philippine
c. The case falls under any of the citizenship upon reaching the age of
exceptions to the application of foreign majority
law. d. Those who are naturalized in accordance
● When the foreign law is CONTRARY to with law
an important PUBLIC POLICY of the
forum; NATURAL-BORN CITIZENS
● When the foreign law is PENAL in Natural-born citizens are those who are
nature; citizens of the Philippines without having to
● When the foreign law is perform any act to acquire or perfect
PROCEDURAL in nature; citizenship.
● When the foreign law is purely FISCAL
OR ADMINISTRATIVE in nature; The Philippines follows the jus sanguinis
● When the application of foreign law will principle which means the rule of descent or
work UNDENIABLE INJUSTICE TO blood. This is in contrast with the jus soli
CITIZENS of the forum; principle where nationality is determined by the
● When the case involves REAL OR law of the place of one’s birth.
PERSONAL PROPERTY situated in
the forum; NATURALIZED CITIZENS
● When the application of the Foreign Naturalized citizens refer those who
law might ENDANGER THE VITAL underwent a procedure provided by law in
INTEREST of the state; order to acquire or perfect citizenship.
● When the foreign law is CONTRARY
TO GOOD MORALS Qualifications for Applicants [Sec. 3, RA
9139]
3. Personal Law Place of Must be born in the
birth Philippines
Importance of a Personal Law Must have resided in the
An individual’s personal law follows him Residence
Philippines since birth
wherever he is and governs those transactions At least 18 at the time of filing
which affect him most closely. Age
the petition
a. Nationality Must be of good moral
character
Importance of Nationality in the Philippines –
Regulates: Must believe in the underlying
a) Civil status principles of the Constitution
b) Capacity Character
c) Condition Must have conducted self in a
d) Family rights and duties proper and irreproachable
e) Laws on succession manner during entire period
f) Capacity to succeed of residence
Must have received primary
Determination of Nationality and secondary education in
According to Article IV of the 1987 Constitution, Education
any public or private
the following are Filipino citizens: educational institution duly
Page 10 of 532
recognized by the DECS, assault, or assassination for the success

where Philippine history, and predominance of their ideas
government and civics are f) Polygamists or believers in the practice of
taught and prescribed as part polygamy
of the school curriculum g) Persons suffering from mental alienation or
Should the applicant have incurable contagious diseases
minor children of school age, h) Citizens or subjects of nations with whom
Children said children must be the United States and the Philippines are
enrolled in schools at war, during the period of such war
mentioned above
Must have a known trade, Rationale: Naturalization is a privilege and not
business, profession or lawful a right. The law must be strictly construed
occupation against the applicant.
Must derive income sufficient Derivative Citizenship [Sec. 15, Com. Act No.
to support self and family 473]
Occupation a. Wife shall be deemed a citizen if she is:
NOT APPLICABLE to o Any woman who is now or may
applicants who are college hereafter be married to a citizen of
degree holders but are the Philippines; and
unable to practice because of o Might herself be lawfully
their citizenship naturalized.
Must be able to read, write, b. Minor children born in the Philippines shall
Language AND speak Filipino or any of be considered citizens
the dialects c. FOREIGN-BORN minor children:
Must have mingled with o IN THE PHILIPPINES at the time
Filipinos; evinced a sincere of naturalization: shall
Conduct desire to learn and embrace automatically become Philippine
custom traditions and ideals citizens;
of the Filipino people o NOT IN THE PHILIPPINES at the
Disqualification time of naturalization: deemed a
The following cannot be naturalized [Sec. 4, Filipino citizen only during his
Commonwealth Act No. 473]: minority. Unless, he begins to
a) Commission of a crime involving moral reside permanently in the
turpitude Philippines when still a minor.
b) Not receiving and dealing with Filipinos in d. FOREIGN-BORN children AFTER
his home or visiting Filipino homes in the NATURALIZATION of parent are
community in a spirit of friendship, considered citizens if:
friendliness and equality without any o He registers himself as a Philippine
discrimination citizen; and
c) Applicant’s country does not grant o Take the necessary oath of
reciprocal rights to Filipino citizens at the allegiance;
time of the hearing of his application. o Within 1 year from reaching the age
d) Persons opposed to organized of majority
government or affiliated with any
association or group of persons who Loss of Citizenship
uphold and teach doctrines opposing all a. By naturalization in foreign countries;
organized governments b. By express renunciation of citizenship;
e) Persons defending or teaching the c. By subscribing to an oath of allegiance to
necessity or propriety of violence, personal support the constitution or laws of a foreign
Page 11 of 532
country upon attaining 21 years of age or Examples

more, subject to certain exceptions; • Child born of parents who are nationals of
d. By rendering service to, or accepting a country applying jus sanguinis in a
commission in the armed forces of a country applying jus soli principle;
foreign country, subject to certain • Citizen who marries an alien may acquire
exceptions; the citizenship of his/her spouse if the
e. By having been declared by competent spouse’s national law allows.
authority, a deserter of the Philippine
armed forces in time of war, unless Effective nationality
pardoned; In the determination of the rights of an
f. By marriage of a woman to a foreigner, if individual who may claim multiple nationality in
by virtue of the laws of her husband’s a third state, the ICJ applied the principle of
country, she acquires nationality; “effective nationality,” i.e. that based on
g. By cancellation of the certificate of stronger factual ties between the person
naturalization concerned and one of the States whose
1) It was obtained fraudulently or illegally; nationality is involved. [Nottebohm Case
2) Person naturalized shall return to his (Liechtenstein v. Guatemala [1955] ICJ Rep 4)]
native country or to some foreign
country and establish his permanent Statelessness
residence therein within 5 years from Types
the issuance of the certificate; De Jure De Facto
3) Petition was made on an invalid An individual who An individual
declaration of intention; has been stripped possessed of a
4) Minor children failed to graduate from of his nationality nationality but whose
the schools required through the fault by his own former country does not give
of their parents either by neglect to government them protection
support them or by transfer to another without having an outsider their own
school; opportunity to territory. Commonly
5) Naturalized citizen allowed himself to acquire another. known as refugees.
be used as a dummy.
Remedies :
Methods of reacquiring Philippine citizenship a. Convention on the Status of Refugees
[Frivaldo v. COMELEC, G.R. No. 87193 provided some basic rights of stateless
(1989)] persons.
a. By direct act of Congress; b. Convention on the Reduction on
b. By naturalization; Statelessness enumerates certain
c. By repatriation. conditions such as marriage, divorce,
adoption, naturalization, expatriation,
PROBLEMS IN APPLYING NATIONALITY under which an individual would not lose
PRINCIPLE nationality at the risk of becoming
stateless, unless a new nationality is
Dual or Multiple Citizenship provided. Also prohibits states from
An individual can be claimed as a national of 2 depriving their nationals of their identity as
or more states pursuant to the rule that each punishment or a discriminatory instrument
State determine who its own nationals are. for political, religious or ethnic reasons
[Hague Convention on Conflict of National
Laws] b. Domicile
Domicile is defined by municipal law (Philippine

Law) and private international law.
Page 12 of 532
Under municipal law Kinds of Domicile

For the exercise of civil rights and the fulfillment Refers to a person’s
of civil obligations, the domicile of natural domicile at birth
persons is the place of their habitual residence. Legitimate child: domicile of
Domicile of
[Art. 50, CC] father
origin
For juridical persons: domicile is determined by Illegitimate child: domicile of
the law creating or recognizing it. In the mother
absence thereof it shall be understood to be the Freely chosen by a person
place where their legal representation or place sui juris
of business is. Domicile of
Acquired by the
Choice
concurrence of physical
Under private international law (Voluntary
presence in the new place
The place with which a person has a settled Domicile)
and unqualified intention to
connection for certain legal purposes, either make that place one’s home
because his home is there or because that Domicile assigned to a
place is assigned to him by law. [Restatement person legally incapable of
(First) of Conflict of Laws] choosing their own domicile
Minors: follow the domicile
To acquire a domicile, there must be of the parents
concurrence of intention to make it one’s
domicile and physical presence. Those with mental
Constructive
disabilities:
General Rules on Domicile Domicile
GR: inherent inability to
a. No person shall be without a domicile. decide where to make his
b. A person’s domicile of origin prevails until home
he acquires a new domicile. EXN: If it is shown that the
c. A person can have only one domicile for a person is capable of
given purpose or a given time under the law understanding his act and
of a particular State. its consequences
General Rule: A person cannot have two
simultaneous domiciles. How one’s domicile of origin is lost
a. Actual removal or change of domicile
Exception: Domicile may vary depending on b. A bona fide intention of abandoning the
the purpose (e.g. domicile for divorce will be former residence and establishing a new
different from domicile for the purpose of one
running for public office.) c. Acts which correspond with the purpose
d. It establishes a connection between a In the absence of concurrence of all these, the

person and a particular territorial unit. domicile of origin is deemed to continue.
e. The burden of proving a change of domicile [Pundaodaya v. COMELEC, G.R. No. 179313
is upon whoever alleges that a change has (2009)]
been secured.
c. Principles on Personal Status
Without overwhelming evidence to show a And Capacity
change of domicile, the court will decide in
favor of the continuance of an existing Personal status
domicile. Includes both condition and capacity.
Page 13 of 532
Embraces such matters as: for a number of years (followed by the

a. The beginning and end of human Philippines)
personality b. A person’s unexplained absence is
b. Capacity to have rights in general judicially investigated and established
c. Capacity to engage in legal transactions which results in legal effects similar to
d. Protection of personal interests those of death
e. Family relations, particularly the relations c. A judicial decree shall have to be issued
between: declaring the person dead before the legal
1. Husband wife effects of death take place.
2. Parent and child
3. Guardian and ward Name
f. Transactions of family law, especially: General Rule: No person can change his
1. Marriage name or surname without judicial authority.
2. Divorce
3. Separation Exceptions (according to Jurisprudence):
4. Adoption a. That the name is ridiculous or tainted with
5. Legitimation dishonor or extremely difficult to
6. Emancipation pronounce.
g. Succession (both testate and intestate) b. When the change is necessary to avoid
confusion
Capacity c. When the right to a new name is a
The union of juridical capacity and capacity to consequence of a change in status
act PRODUCES complete civil capacity. d. A sincere desire to adopt a Filipino name to
erase signs of a former alien nationality
Juridical Capacity Capacity to Act which unduly hamper social and business
the fitness of a man life.
the power to do acts
to be the subject of
with juridical effects Whether an alien’s change of name is valid
legal relations
DEPENDS SOLELY ON HIS PERSONAL
Legislative Jurisdiction Distinguished from LAW.
Judicial Jurisdiction
Status, once established by the personal law of Age of Majority
the party, is given UNIVERSAL Age of majority is determined by the
RECOGNITION. individual’s personal law.
Beginning and End of Personality Capacity

The determination of the exact moment Capacity to act is governed by his personal
personality begins is referred to the individual’s law.
personal law.
The incapacities attached to his legal status go
A declaration of death issued by a competent with him wherever he is.
court is considered valid for all purposes. Upon
the death of a person, some of his rights and 3. Choice of Law Problems
obligations are totally extinguished while others
are passed on to his successors. a. CHOICE-OF-LAW IN FAMILY
RELATIONS
Absence
Three ways of addressing conflict of laws
Art. 15, CC. Laws relating to family rights and
problem regarding absence:
duties, or to the status, condition and legal
a. There is a rebuttable presumption that a
person is dead when he has been absent
Page 14 of 532
capacity of persons are binding upon citizens Exceptions to the rule of lex loci
of the Philippines, even though living abroad. celebrationis: Lex nationalii
a. Either/both parties are below 18 years old
Governing Law: Lex Nationalii. b. Bigamous or polygamous marriages
c. Subsequent marriage without recording:
i. Marriage 1. The judgment of nullity of the first
marriage
Philippine Policy on Marriage and the 2. Partition and distribution of the
Family properties of the spouses
In case of doubt, courts will apply FORUM law 3. Delivery of the children’s presumptive
because marriage is greatly influenced by the legitimes
values of society. [Prof. Aguiling-Pangalangan] d. Mistake as to identity of the contracting
party
Examples: e. One of the parties was psychologically
Sec. 2, Art. XV, 1987 Constitution. Marriage, incapacitated to comply with the essential
as an inviolable social institution, is the marital obligations
foundation of the family and shall be protected f. Incestuous marriages
by the State. g. Void by reason of public policy
Art. 220, CC. In case of doubt, all The abovementioned involve the question
presumptions favor the solidarity of the family. capacity to marry, which is a substantive
Thus, every intendment of law or facts leans requirement for marriage. Since personal law
toward the validity of the marriage , the governs questions of intrinsic validity, the
indissolubility of the marriage bonds, the above are exceptions to lex loci celebrationis
legitimacy of children, the community of because they are controlled by lex nationalii.
property during the marriage, the authority of
parents over their children, and the validity of INTRINSIC Validity of Marriage: Personal
defense for any member of the family in case Law of the Parties – Lex Nationalii or Lex
of unlawful aggression. Domicilii
Refers to the capacity or general ability of a
EXTRINSIC Validity of Marriage: Lex Loci person to marry (e.g. age requirement and
Celebrationis parental consent).
Covers questions relating to formalities or
“external conduct required of the parties or of Governing Law: Personal Law, either Lex
third persons especially of public officers, Nationalii or Lex Domicilii
necessary to the formation of a legally valid
marriage.” Note: In the Philippines: Lex Nationalii
All States recognize as valid marriages Consular marriages

celebrated in foreign countries if they complied Marriage celebrated by a diplomatic agent or
with the formalities prescribed therein [The consular official in accordance with his state
Hague Convention]. law shall be considered valid as long as it is not
prohibited by the state of celebration. [Art. 9,
All marriages solemnized outside the Hague Convention on Validity of Marriages]
Philippines in accordance with the laws in force
in the country where they were solemnized, Under Philippine law, marriage between
and valid there as such, shall also be valid in spouses with at least one Filipino officiated by
this country. [par. 1, Art. 26, FC] the Philippine consul general, consul or vice
consul must comply with the
Page 15 of 532
FORMAL AND INTRINSIC REQUIREMENTS Exceptions

under Philippine law: a. Both spouses are aliens
a. Valid marriage license and due publication b. With respect to extrinsic validity of
and registration contracts affecting property not situated in
b. Alien must comply with marriage requisites the Philippines and executed in the country
under his or her national law and submit a where property is located
certificate of legal capacity to contract c. With respect to extrinsic validity of
marriage issued by his diplomatic or contracts entered into in the Philippines but
consular office affecting property situated in a foreign
c. Stateless persons or refugees shall submit country requiring different formalities
an affidavit in lieu of the certificate of legal
capacity. ii. Divorce and Separation
Effects of Marriage Divorce may be either:

Refers to personal relations between spouses a. Absolute – termination of legal relationship
and property relations of the spouses between spouses by an act of law
b. Relative or Legal Separation – separation
Governing Law on Personal Relations from bed and board
Between the Spouses: Lex Nationalii
Rules
If the spouses are of different nationalities, a. Bases of obtaining jurisdiction over divorce
generally, the national law of the husband may proceedings:
prevail if not contrary to law, customs and good 1. Domicile of one of the parties; or
morals of the form. 2. Marital domicile
b. On grant of divorce:
Under Philippine law, both husband and wife 1. Lex nationalii;
have the right to fix the family domicile. [Art. 69, 2. Lex Fori (law of the country in which an
FC] action is brought)
Property Relations of Spouses Divorce Decrees Obtained by Filipinos

According to The Hague Convention on the In the case of Republic v. Tanedo-Manalo
Law applicable to Matrimonial Property [G.R. No. 221029 (2018)], the Supreme Court
Regimes, the governing law is: declared that “the foreign divorce secured by a
a. Internal law designated by the spouses Filipino against a foreign spouse is also
before the marriage; or considered valid in the Philippines.”
b. In the absence thereof, the internal law of
the state in which both spouses fix their iii. Annulment and Declaration of
habitual residence. Nullity
Principle of Immutability Governing Law

The applicable law continues notwithstanding Traditional approach: LEX LOCI
any change of their nationality or habitual CELEBRATIONIS
residence. [Art. 7, The Hague Convention on
Matrimonial Property Regime] Modern Approach: LAW OF THE MARITAL
DOMICILE because it is considered to have
Governing Law for Filipinos: Philippine Law the most significant interest in the status of the
spouses.
Under Philippine law, absent a contrary
stipulation in a marriage settlement, property Note: In both choice of law approaches, since
relations are governed by Philippine law [Art. the action turns on the validity of the marriage,
80, FC] lex fori, which is crucial in divorce, plays no
Page 16 of 532
substantial role in annulment and declaration of Bases of Adoption Jurisdiction

nullity. General Rule: Child’s personal law, if the
adopter and adoptee have different domiciles
Bases of Jurisdiction
a. Lex loci celebrationis, Exception: Adopter’s personal law is
b. Law of marital domicile, considered, if the child’s domicile is merely
c. Any court which acquires personal constructive
jurisdiction over the parties.
Governing law on the process of adoption: LEX
iv. Parental Relations DOMICILII
Includes paternity which is the civil status of the b. CHOICE OF LAW IN PROPERTY
father or mother with respect to the child and
filiation which is the status of the child in 1. The Controlling Law
relation to his parents.
a. Immovables: LEX SITUS
Governing Law 1. Determined by the law of the place
Legitimacy of the child is submitted to the where the land is situated
personal law of the parents which is either: 1) 2. Connecting factor is immovable
Lex nationalii; or 2) Lex domicilii. itself and not the parties
Note: In the Philippines, it is determined by the b. Movables:

national law of the parents. If the parents
belong to different nationalities, it is determined i. Lex Domicilii
by the national law of the father.
Rights over movables are governed by the law
Determination of Legitimacy of a Child of owner’s domicile. For simplicity and
convenience because it is difficult to anticipate
Kinds of filiations where they may be situated at a given time.
a. Natural
1. Legitimate – governed by the personal ii. Lex Situs
law of the father
2. Illegitimate – governed by the personal Based on the state’s power over its territory.
law of the mother State where property is located has the sole
b. Adopted power to decide the validity and effects of
transfer of the property.
Parental Authority over the Child
Most countries follow the personal law of the iii. Lex Loci Actus
father.
Law of the place where the transaction was
In the Philippines, joint exercise of parental completed.
authority by the father and mother [Art. 211,
FC] iv. Proper Law of The Forum
v. Adoption Law of the state having the most real

connection with the transfer.
An act by which relations of paternity and
affiliation are recognized as legally existing Note: In the Philippines however, in light of
between persons not so related by nature. Article 16 of the CC, one need not classify the
subject property, as the aforementioned
Page 17 of 532
provision expressly provides that, “real and 5. Situs of Certain Properties

personal property are subject to the law of the
country where they are situated (LEX SITUS).” Situs of Personal Property for Tax
Purposes
Traditional approach – physically part of the The maxim mobilia sequuntur personam has
country and subject to the laws been viewed as a mere fiction of law having its
origins in considerations of general
Modern approach – situs is the place most convenience and public policy. It cannot be
closely and significantly related to the issue applied to limit the right of the state to tax
property within its jurisdiction. It yields to
Thus, the only time the court has to classify the established facts of legal ownership, actual
subject property is when it is located in a presence, and control elsewhere, and cannot
foreign country WHICH HAS A LAW THAT be applied if it would result in inescapable and
DISTINGUISHES BETWEEN REAL AND patent injustice. [Wells Fargo Bank and Union
PERSONAL PROPERTY. [Coquia and Trust Compny v. Collector, G.R. No. 46720
Aguiling-Pangalangan] (1940)]
2. Capacity to Transfer or Acquire Situs of Money

Property Where such funds are located physically or
where the institution holding such funds is
Real property – governed by the law of the located.
place where the property is located (LEX
SITUS) Situs of Debts
Unsettled in Philippine jurisdiction, however,
3. Extrinsic and Intrinsic Validity of Prof. Aguiling-Pangalangan suggests that the
Conveyances law which governs the contract from which the
debt arises shall also govern the transfer of the
Formalities, essential validity, and effects of debt.
conveyance – governed by LEX SITUS.
Corporate Shares of Stock
Rationale: The validity and effect of i. For tax purposes – domicile of the
conveyance of property are treated as a corporation
question of property rather than contract. ii. For sale – place where the title to
the goods passes from the seller to
4. Exception to Lex Situs Rule the buyer
a. The transaction does not affect transfer c. CHOICE OF LAW IN

of title to/ownership of the land – LEX CONTRACTS
INTENTIONIS or LEX VOLUNTATIS
b. Contracts where real property is 1. Extrinsic Validity of Contracts
offered by way of a security for the
performance of an obligation such as a LEX LOCI CELEBRATIONIS
loan.
1. LOAN – covered by rules on Art. 17, CC. The forms and solemnities of
ordinary contracts contracts, wills, and other public instruments
2. MORTGAGE – LEX SITUS shall be governed by the laws of the country in
c. Testate or intestate succession and which they are executed.
capacity to succeed – LEX
NATIONALII When the acts referred to are executed before
the diplomatic or consular officials of the
Republic of the Philippines in a foreign country,
Page 18 of 532
the solemnities established by Philippine laws Contracts with Arbitration Clause

shall be observed in their execution. Arbitration clause – a provision in a contract
stipulating that any dispute arising from the
This principle is derived from a broader contract shall be submitted to a particular body
proposition that the place governs the act for arbitration.
(locus regit actum).
An arbitration clause, stipulating that the
2. Intrinsic Validity of Contracts arbitral award is final and binding, does not
oust our courts of jurisdiction as the
LEX LOCI CONTRACTUS international arbitral award, is still judicially
reviewable under certain conditions.
Law of the place of making. Looks into where
“the last act is done which is necessary to bring The pertinent features of R.A. 9285 applying
the binding agreement into being so far as the and incorporating the UNCITRAL Model Law
acts of the parties are concerned.” are the following: (1) the RTC must refer to
arbitration in proper cases; (2) foreign arbitral
LEX LOCI SOLUTIONIS awards must be confirmed by the RTC; (3) the
RTC has jurisdiction to review foreign arbitral
Law of the place of performance governs all awards; (4) grounds for judicial review different
matters relating to the: in domestic and foreign arbitral awards; (5)
a. Time RTC decision of assailed foreign arbitral award
b. Place and manner of performance appealable. [Korea Technologies v. Lerma,
c. Sufficiency of performance G.R. No. 143581, 2008]
d. Valid excuses for non-performance
5. Adhesion Contracts
LEX LOCI INTENTIONIS
Law intended by the parties. Intent may be Contracts that are not negotiated by the parties
expressed in a choice-of-law provision, unless and drafted by only one dominant party. The
contrary to law, morals, good customs, public only participation of the other party would be to
order or public policy of the Philippines [Art. affix his signature.
1306, CC]; or may be implied from the parties’
contemporaneous and subsequent acts. General Rule: Not void per se.
3. Capacity to Enter into Contracts Exception: The court may not recognize the
law stipulated and invoke public interest or
Governed by the personal law of the parties – public policy, when there is an undue
a. LEX NATIONALII; or advantage made by a dominant party.
b. LEX DOMICILII
6. Special Contracts
4. Choice of Law Issues in Conflicts
Contracts Cases a. Carriage of Goods by Sea
b. Contracts for International Air
Choice of Forum Clause Transportation
Under the principle of freedom of contract, 1. The Warsaw Convention was
parties may stipulate the law to govern their concluded in order to establish uniform
contract. rules and regulations on the liability of
● Questions of venue, not jurisdiction international airline carriers in cases of
● Includes arbitration, not only choice of death, injuries of passengers, or loss or
court. damage of cargo.
2. Any action for damages may be
brought either:
Page 19 of 532
a. In the court of the domicile of Art. 815, CC. When a Filipino is in a foreign
the carrier; OR country, he is authorized to make a will in any
b. In the principal place of of the forms established by the law of the
business of the carrier; OR country in which he may be. Such will may be
c. In the place of business of the probated in the Philippines.
carrier through which the
contract has been made; OR Art. 816, CC. The will of an alien who is abroad
d. Before the court at the place of produces effect in the Philippines if made with
destination. the formalities prescribed by the law of the
c. The procedural rules of the forum shall place in which he resides, or according to the
apply. formalities observed in his country, or in
conformity with those which this Code
7. Limitations to Choice of Law prescribes.
a. Parties may not select a law that has no Art. 817, CC. A will made in the Philippines by
connection at all with the transaction or the a citizen or subject of another country, which is
parties. executed in accordance with the law of the
b. If the law selected should change, the law country of which he is a citizen or subject, and
as changed will govern. which might be proved and allowed by the law
of his own country, shall have the same effect
Exception: If the change is so as if executed according to the laws of the
revolutionary that it was never Philippines.
contemplated by the parties.
Filipino nationals
c. Should not be interpreted to oust the a. LEX LOCI CELEBRATIONIS – formalities
jurisdiction court already acquired over the established by the law of the country where
parties and the subject matter the will is executed [Art. 17 and 815, CC]
d. Public policy deemed written into contracts b. LEX NATIONALII – formalities prescribed
impressed with public interest under Philippine law
e. Cognovit Clauses / Confession of
Judgment Clauses – debtor may agree to Note: There is no express provision, only by
be subject to the jurisdiction of a specific analogy with rules applicable to aliens. The
court in case of breach or default in ratio is that it cannot be assumed that the Code
payment. places the Filipino citizen in a worse position
that the alien in relation to our law
d. CHOICE OF LAW IN WILLS,
SUCCESSION AND For Aliens
ADMINISTRATION OF a. LEX NATIONALII [Art. 816 and 817, CC]
b. LEX DOMICILII
ESTATES c. LEX LOCI CELEBRATIONIS
1. Extrinsic Validity of Wills With Regard to Joint Wills
a. By Filipinos: VOID under Philippine law on
Includes age, testamentary capacity of the the ground of public policy. [Art. 818, CC]
testator, and the form of the will.
b. By Foreigners: VALID UNLESS it affects
heirs in the Philippines.
Art. 17, CC. The forms and solemnities of
contracts, wills, and other public instruments
2. Intrinsic Validity of Wills
shall be governed by the laws of the country in
which they are executed.
Governed by the national law of the decedent
[Art. 16, CC]
Page 20 of 532
Includes issues of substance such as order of GR: Lex Loci

succession, amount of successional rights and Celebrationis
intrinsic validity of testamentary provisions [Art. EXN: Art. 35(1), (4), (5),
16, CC] (6), FC; Art. 36-38, FC.
Intrinsic Validity:
3. Interpretation of Wills Personal law
Personal relations
Governed by the rules of interpretation of the between spouses:
national law of the decedent [Art. 16, CC] Personal Law
Property relations: see
4. Revocation Art. 80, FC
When done in the Philippines Generally, lex rei sitae

Philippine Law applies Divorce and Lex fori for grounds of
Separation; divorce
Done outside the Philippines, by a person Grounds for
domiciled in the Philippines legal separation
a. LEX DOMICILII – Philippine Law Traditional Approach:
b. LEX LOCI ACTUS – Law of the place of Annulment and Lex loci celebrationis
revocation Declaration of Modern Approach: Lex
c. LEX LOCI CELEBRATIONIS – Law of the Nullity domicilii (marital
place where the will was made [Balane] domicile)
Determination of
Done outside the Philippines, by a non- legitimacy: personal law
domiciliary Parental authority:
a. LEX LOCI CELEBRATIONIS – Law of the Parental personal law of the father
place where the will was made relations Adoption: personal law of
b. LEX DOMICILII – Law of the place where the child if adopter and
testator was domiciled at the time of adoptee have different
revocation nationalities
PROPERTY
5. Probate
Immovables Lex situs
Lex domicilii
FORUM LAW governs because disallowance
Movables Lex situs
is essentially procedural in character.
Lex loci actus
However, the court will look into the law of the Property in the Lex situs, WON real or
foreign state where the will was made as to Philippines personal
whether the extrinsic requirements in the Extrinsic validity: Lex
execution of the will have been complied with. situs
Intrinsic validity: Lex situs
Conveyances
SUMMARY OF CHOICE OF LAW RULES UNLESS Lex intentionis
is different and is
Art. 15, CC and Art. 16, PROVED
Nationality CONTRACTS
CC
Art. 50, CC and Art. 51, Lex Loci Celebrationis
Domicile Extrinsic Validity UNLESS clear that the
CC
Personal Status Personal Law (either intention was otherwise
and Capacity Nationality or Domicile) Lex contractus
FAMILY RELATIONS Intrinsic Validity Lex solutionis
Marriage Extrinsic Validity: Lex intentionis
Page 21 of 532
Capacity to Personal law

enter into G. HUMAN RELATIONS
contract
Interpretation of Lex intentionis
Contract [See XII. Torts, Section A; Principles. This
WILLS, SUCCESSIONS, section is a continuation of Section A.]
ADMINISTRATION OF ESTATES
FILIPINO who makes a
will ABROAD:
1. Violation of Human Dignity
Lex Nationalii Art. 26, CC. Every person shall respect the dignity,
Lex Loci Celebrationis personality, privacy and peace of mind of his
neighbors and other persons. The following and
Extrinsic Validity ALIEN who makes a will
similar acts, though they may not constitute a
IN THE PHILIPPINES: criminal offense, shall produce a cause of action for
Lex nationalii damages, prevention and other relief:
Lex domicilii (1) Prying into the privacy of another’s
Lex loci celebrationis residence;
Intrinsic validity Lex nationalii (2) Meddling with or disturbing the private life
or family relations of another;
Lex nationalii (3) Intriguing to cause another to be alienated
Interpretation of from his friends;
If clear and Vexing or humiliating another on account of his
Wills religious beliefs, lowly station in life, place of birth,
unambiguous, Lex
intentionis physical defect, or other personal condition.
DONE ABROAD BY
ONE NOT DOMICILED Article 26 specifically applies to intentional acts
IN THE PHILIPPINES: which fall short of being criminal offenses. It
Lex loci celebrationis itself expressly refers to tortious conduct which
Lex domicilii "may not constitute criminal offenses." The
DONE ABROAD BY purpose is precisely to fill a gap or lacuna in the
ONE DOMICILED IN law where a person who suffers injury because
Revocation THE PHILIPPINES: of a wrongful act not constituting a crime is left
Lex loci actus without any redress. Under Article 26, the
Lex domicilii person responsible for such act becomes liable
Lex loci celebrationis for "damages, prevention and other relief." In
DONE WITHIN THE short, to preserve peace and harmony in the
PHILIPPINES: family and in the community, Article 26 seeks
Lex loci actus (Hence, to eliminate cases of damnum absque injuria in
Philippine law) human relations [MVRS Publications v. Islamic
Lex fori Da'wah Council, G.R. No. 135306 (2003)].
Probate
Lex loci celebrationis
If there is an effective The principal rights protected under this
choice of law: courts of provision are the following:
the place where the trust 1. The right to personal dignity
is being administered 2. The right to personal security
If there is no effective 3. The right to family relations
Trusts 4. The right to social intercourse
choice of law: law that
will sustain the validity of 5. The right to privacy
the trust (place of 6. The right to peace of mind
administration or
domicile) Note: Coverage of Art. 26 is not limited to those
enumerated therein, the enumeration being
Page 22 of 532
merely examples of acts violative of a person’s 1. Family Relations

rights to dignity, personality, privacy and peace
of mind. Other “similar acts” are also covered Alienation of affection
within the scope of the article.
Elements:
a. Violation of personal dignity 1. Wrongful conduct of the defendant:
In order to be actionable it is not necessary that intentional and malicious enticing of a
the act constitutes a criminal offense. The spouse away from the other spouse
remedy afforded by the law is not only the 2. Loss of affection or consortium (Note:
recovery of damages. Injunction and other Complete absence of affection
appropriate reliefs may also be obtained by the between the spouses is not a defense.)
aggrieved party. 3. Causal connection between such
conduct and loss
b. Violation of Privacy
Privacy is the right to be let alone, or to be free Liability of Parents, Guardians or Kin
from unwarranted publicity, or to live without The law distinguishes between the right of a
unwarranted interference by the public in parent to interest himself in the marital affairs
matters in which the public is not necessarily of his child and the absence of rights in a
concerned. This right is purely personal in stranger to meddle in such affairs.
nature, such that it can be invoked only by the 1. Such distinction between the liability of
person actually injured, it is subject to a proper parents and that of strangers is only in
waiver, and it ceases upon death. However, regard to what will justify interference.
the privilege may be given to heirs of a 2. A parent is liable for alienation of
deceased to protect his memory, to protect the affections resulting from his own malicious
feelings of the living heirs. conduct, as where he wrongfully entices
his son or daughter to leave his or her
Reasonableness of Expectation of Privacy spouse, but he is not liable unless he acts
Test: [Ople v. Torres, G.R. No. 127685 (1998)] maliciously, without justification and from
a. Whether by one’s conduct, the individual unworthy motives.
has exhibited an expectation of privacy 3. He is not liable where he acts and
b. Whether this expectation is one that advises his child in good faith with
society recognizes and accepts as respect to his child's marital relations in
reasonable the interest of his child as he sees it…
4. He may in good faith take his child into his
c. Interference with relations home and afford him or her protection and
support, so long as he has not maliciously
An interference with the continuance of
unimpaired interests founded upon the relation enticed his child away or does not
maliciously entice or cause him or her to
in which the plaintiff stands toward one or more
stay away from his or her spouse. This rule
third persons [Prosser and Keeton].
has more frequently been applied in the
case of advice given to a married daughter,
Kinds
but it is equally applicable in the case of
1. Family relations
2. Social relations advice given to a son. [Tenchavez v.
Escaño, G.R. No. L-19671 (1965)].
3. Economic relations
4. Political relations
Page 23 of 532
2. Social Relations
Bad faith/Malice is required to make the
Meddling with or disturbing family relations defendant liable for damages in cases of
tortuous interference [So Ping Bun v. CA,
supra].
Art. 26, CC. Every person shall respect the
dignity, personality, privacy and peace of
4. Dereliction of Duty
mind of his neighbors and other persons.
The following and similar acts, though they
may not constitute a criminal offense, shall Art. 27, CC. Any person suffering material or
produce a cause of action for damages, moral loss because a public servant or
prevention and other relief; employee refuses or neglects, without just
xxx cause, to perform his official duty may file an
(2) Meddling with or disturbing the private life action for damages and other relief against
or family relations of another; the latter, without prejudice to any
disciplinary administrative action that may be
taken.
3. Economic Relations
This applies only to acts of nonfeasance or the

Art. 1314, CC. Any person who induces
nonperformance of some acts which a person
another to violate his contract with another
person shall be liable for damages to the is obliged or has responsibility to perform. The
duty of the public servant must be ministerial in
other contracting party.
character. If the duty is discretionary, he is not
liable unless he acted in a notoriously arbitrary
Elements of tort interference: [So Ping Bun manner.
v. CA, G.R. No. 120554 (1999)]
1. Existence of a valid contract The defense of good faith is not available
2. Knowledge on the part of the third person because an officer is under constant obligation
of the existence of contract; and to discharge the duties of his office, and it is not
3. Interference of the third person is without necessary to show that his failure to act was
legal justification or excuse. due to malice or willfulness.
Everyone has a right to enjoy the fruits and Requisites: [Amaro v. Sumanguit, G.R. No. L-
advantages of his own enterprise, industry, skill 14986 (1962)]
and credit. He has no right to be protected 1. Defendant is a public officer charged
against competition; but he has a right to be with a performance of a duty in favor of
free from malicious and wanton interference, the plaintiff;
disturbance or annoyance. If disturbance or 2. He refused or neglected without just
loss comes as a result of competition, or the cause to perform the duty;
exercise of like rights by others, it is damnum 3. Plaintiff sustained material or moral
absque injuria, unless some superior right by loss as a consequence of such non-
contract or otherwise is interfered with. Thus, a performance;
plaintiff loses his cause of action if the 4. The amount of such damages, if
defendant provides a sufficient justification for material.
such interference, which must be an equal or
superior right in themselves. The defendant
Art. 32, CC. Any public officer or employee,
may not legally excuse himself on the ground
or any private individual, who directly or
that he acted on a wrong understanding of his
indirectly obstructs, defeats, violates or in
own rights, or without malice, or bona fide, or
any manner impedes or impairs any of the
in the best interests of himself [Gilchrist v.
following rights and liberties of another
Cuddy, G.R. No. 9356 (1915)].
Page 24 of 532
person shall be liable to the latter for nature and cause of the accusation against
damages: him, to have a speedy and public trial, to
meet the witnesses face to face, and to have
(1) Freedom of religion; compulsory process to secure the
attendance of witness in his behalf;
(2) Freedom of speech;
(17) Freedom from being compelled to be a
(3) Freedom to write for the press or to witness against one's self, or from being
maintain a periodical publication; forced to confess guilt, or from being induced
by a promise of immunity or reward to make
(4) Freedom from arbitrary or illegal such confession, except when the person
detention; confessing becomes a State witness;
(5) Freedom of suffrage; (18) Freedom from excessive fines, or cruel

and unusual punishment, unless the same is
(6) The right against deprivation of property imposed or inflicted in accordance with a
without due process of law; statute which has not been judicially
declared unconstitutional; and
(7) The right to a just compensation when
private property is taken for public use; (19) Freedom of access to the courts.
(8) The right to the equal protection of the In any of the cases referred to in this article,
laws; whether or not the defendant's act or
omission constitutes a criminal offense, the
(9) The right to be secure in one's person, aggrieved party has a right to commence an
house, papers, and effects against entirely separate and distinct civil action for
unreasonable searches and seizures; damages, and for other relief. Such civil
action shall proceed independently of any
(10) The liberty of abode and of changing criminal prosecution (if the latter be
the same; instituted), and mat be proved by a
preponderance of evidence.
(11) The privacy of communication and The indemnity shall include moral damages.
correspondence; Exemplary damages may also be
adjudicated.
(12) The right to become a member of The responsibility herein set forth is not
associations or societies for purposes not demandable from a judge unless his act or
contrary to law; omission constitutes a violation of the Penal
Code or other penal statute.
(13) The right to take part in a peaceable
assembly to petition the government for
Violation of Civil and Political Rights
redress of grievances;
Both private individuals and public officers can
be held liable under this provision.
(14) The right to be free from involuntary
servitude in any form;
This article further implements the civil liberties
guaranteed by the Constitution and creates an
(15) The right of the accused against
absolutely separate and independent civil
excessive bail;
action for the violation of these civil liberties.
(16) The right of the accused to be heard by
Malice not required, to require that a person act
himself and counsel, to be informed of the
with malice before he is held liable under this
Page 25 of 532
article would defeat the purpose to protect action to enforce that liability, independent of
individual rights. The object of the article is to any criminal proceedings.
put an end to official abuse under the guise of
being done in good faith. Article 34 makes the city or municipality
subsidiarily liable for the omission of its police
Liability for violation or obstruction of civil officers to render aid or protection to anyone.
liberties This liability, therefore, can be enforced against
Any person, whether public officer/employee or the city or municipality only when the guilty
private individual, who directly or indirectly police officer is insolvent. However, it cannot
obstructs, violates or in any manner impede or be avoided by proving that the city or
impair the rights of a person as enumerated municipality has exercised due diligence in the
(these are actually rights under the Bill of selection and supervision of its policemen.
Rights) shall be liable to the latter for damages. [Tolentino]
Separate and distinct civil action; quantum 5. Civil Action

of evidence
The aggrieved party has the right to commence
Art. 29, CC. When the accused in a criminal
a civil action for damages separate, distinct
prosecution is acquitted on the ground that
and independent of any criminal action that
his guilt has not been proved beyond
may arise from the same violation of right. Only
reasonable doubt, a civil action for damages
preponderance of evidence is required.
for the same act or omission may be
instituted. Such action requires only a
Type of damages
preponderance of evidence. Upon motion of
Indemnity shall include moral damages.
the defendant, the court may require the
Exemplary damages for also be awarded.
plaintiff to file a bond to answer for damages
in case the complaint should be found to be
Limited liability for judges
malicious.
Persons are liable under this provision whether
If in a criminal case the judgment of acquittal
or not their act or omission constitutes a
is based upon reasonable doubt, the court
criminal offense. But Judges can only be held
shall so declare. In the absence of any
liable only when their act or omission in
declaration to that effect, it may be inferred
violation of civil liberties of others also
from the text of the decision whether or not
constitutes a criminal offense.
the acquittal is due to that ground.
Art. 34, CC. When a member of a city or Acquittal predicated on the conclusion “that the
municipal police force refuses or fails to
guilt of the defendant has not been
render aid or protection to any person in case
satisfactorily established” is equivalent to one
of danger to life or property, such peace
on reasonable doubt, and a suit to enforce civil
officer shall be primarily liable for damages,
liability for the same act or omission lies. [PNB
and the city or municipality shall be
v. Catipon, G.R. No. L-6662 (1956)]
subsidiarily responsible therefor. The civil
action herein recognized shall be
The accused once found by the court not to
independent of any criminal proceedings,
have been the author of an offense and being
and a preponderance of evidence shall
acquitted of the accusation under no condition
suffice to support such action.
can he be made civilly responsible for the harm
caused and for the damages and losses
The primary liability upon a member of a local suffered by reason of the criminal act. [Almeida
police force is already covered by Article 27. v. Abaroa, G.R. No. L-2993 (1907)]
However, Article 34 creates a separate civil
Page 26 of 532
The underlying purpose for this independent

Art. 30, CC. When a separate civil action is
civil action (also in Articles 32 and 34) is to
brought to demand civil liability arising from
allow the citizen to enforce his rights in a
a criminal offense, and no criminal
private action brought by him, regardless of the
proceedings are instituted during the
action of the State attorney.
pendency of the civil case, a preponderance
of evidence shall likewise be sufficient to
The term “physical injuries” mean bodily
prove the act complained of.
injuries, not the crime of physical injuries
defined in the Revised Penal Code, whether
Under Art. 100 of the Civil Code, “every person inflicted with intent to kill or not. [Tolentino]
criminally liable for a felony is also civilly liable”.
Civil Liability is dependent upon facts, if true,
Art. 35, CC. When a person, claiming to be
would constitute a crime.
injured by a criminal offense, charges
another with the same, for which no
The civil liability is a necessary consequence of
independent civil action is granted in this
criminal responsibility and is to be declared and
Code or any special law, but the justice of the
enforced in the criminal proceeding. The Final
peace finds no reasonable grounds to
Judgement rendered in the case constitutes a
believe that a crime has been committed, or
bar to the subsequent civil action for damages
the prosecuting attorney refuses or fails to
based upon the same case. [Tolentino]
institute criminal proceedings, the complaint
may bring a civil action for damages against
Art. 31, CC. When the civil action is based the alleged offender. Such civil action may
on an obligation not arising from the act or be supported by a preponderance of
omission complained of as a felony, such evidence. Upon the defendant's motion, the
civil action may proceed independently of the court may require the plaintiff to file a bond
criminal proceedings and regardless of the to indemnify the defendant in case the
result of the latter. complaint should be found to be malicious.
This article is intended to cover cases where If during the pendency of the civil action, an
the civil action can be based on an act or information should be presented by the
omission distinct from that which is complained prosecuting attorney, the civil action shall be
of as a felony. [Tolentino] suspended until the termination of the
criminal proceedings.
Art. 33, CC. In cases of defamation, fraud,

and physical injuries a civil action for The right to file a civil action provided in the first
damages, entirely separate and distinct from paragraph also exists with respect to offenses
the criminal action, may be brought by the for which the law expressly provides a separate
injured party. Such civil action shall proceed civil action independent of the criminal
independently of the criminal prosecution, prosecution.
and shall require only a preponderance of
evidence. However, the second paragraph only applies to
offenses for which no independent civil action
is provided. The filing of a criminal case
In these cases, a civil action may be filed suspends the civil case, inasmuch as the
independently of the criminal action, even if decision in the civil case would generally
there has been no reservation made by the depend upon the judgment in the criminal case.
injured party; the law in itself makes such But if the offense is one for which an
reservation. The result of the civil action is thus independent civil action is provided by law
independent of the result of the criminal action. (Articles 32-34), the filing of the criminal action
will not suspend the civil action.
Page 27 of 532
Art. 36, CC. Pre-judicial questions which

must be decided before any criminal
prosecution may be instituted or may
proceed, shall be governed by rules of court
which the Supreme Court shall promulgate
and which shall not be in conflict with the
provisions of this Code.
A pre-judicial question is one raised in a

criminal case by the accused, which is of such
a nature that, if decided favorably to the
accused in a civil case, will cause the supposed
crime to disappear; the prejudicial question
must be determinative of the case before the
court, and, that jurisdiction to try said question
must be lodged in another tribunal.
H. APPLICABILITY OF
PENAL LAWS
Territoriality Principle
Penal laws and those of public security and
safety shall be obligatory upon all who live or
sojourn in the Philippine territory, subject to the
principles of public international law and to
treaty stipulations. [Art. 14, CC]
Exemptions to the Territoriality Principle

under International Law (Theory of
Extraterritoriality):
1. When the offense is committed by a
foreign sovereign while in Philippine
territory
2. When the offense is committed by
diplomatic representatives
3. When the offense is committed in a
public or armed vessel of a foreign
country.
Page 28 of 532
PERSONS AND
FAMILY RELATIONS
CIVIL LAW
Page 29 of 532
Capacity and incapacity depends on the law,

A. PERSONS therefore it cannot be modified by agreements.
It is a matter of public interest. [Tolentino]
Persons Juridical Capacity Capacity to Act

Any being, physical, moral, real, juridical and
legal susceptible of rights and obligations or Fitness of a person Power to do acts with
being the subject of legal relations. [Tolentino, to be the subject of legal effect
citing Sanchez Roman and Planio and Ripert] legal relations
Personality Passive Active

The aptitude of a person of becoming the
subject of legal relations, inherent in every Aptitude for the Aptitude to exercise
natural person and is lost only through death. holding and rights
[Tolentino] enjoyment of rights
Inherent in natural Must be acquired

Status
persons
The legal condition or class to which one
belongs in society or the legal and juridical
Lost upon death Lost through death
position of the individual in society, which
and other causes
determines the nature and number of rights of
an individual. [Tolentino] Can exist without Must exist with
capacity to act juridical capacity
Status can be political and civil, and civil status
may be grouped into three classes. Cannot be limited or May be restricted or
1. As a member of society restricted limited
a. Resident or non-resident
b. Citizen or alien
2. As a member of family 1. Kinds of Persons
a. Single, married, widowed, divorced
b. Parent, child, brother or sister Persons could be natural or juridical.
c. Legitimate, illegitimate, adopted 1. Natural persons refer to individuals or
3. As himself human beings who are created by
a. Age, whether minor or major procreation.
b. Sex, whether male or female 2. Juridical persons are artificial, abstract
c. Mental condition, whether sane or entities created through laws [Tolentino].
insane
a. Natural Persons
Art. 37, CC. Juridical capacity, which is the
fitness to be the subject of legal relations, is Article 40 provides that "the conceived child
inherent in every natural person and is lost shall be considered born for all purposes that
only through death. Capacity to act, which is are favorable to it, provided it be born later with
the power to do acts with legal effect, is the conditions specified in the following article"
acquired and may be lost. (i.e., that the fetus be alive at the time it is
completely delivered from the mother's womb
Juridical capacity can exist even without as defined under Art. 41, CC). This proviso,
capacity to act; the existence of the latter however, is not a condition precedent to the
implies that of the former. Full civil capacity is right of the conceived child; for if it were, the
the existence of both capacity to act and first part of Article 40 would become entirely
juridical capacity.
Page 30 of 532
useless and ineffective. [Quimiging v. Icao,

Intrauterine Life When Considered
GR. No. L-26795 (1970)]
Born
Characteristics of fetal personality 7 months or more If alive (e.g. can
1. Limited – because it only has rights for breathe
purposes favorable to it independently, etc.
2. Provisional/conditional – because it should upon delivery)
be born alive later before the rights can be
claimed Less than 7 months If alive after
3. Can enjoy rights – inherit from will or completion of 24
intestacy and be given donations even hours from delivery
before birth
A conceived child has a provisional personality Since birth determines personality, an aborted
for all purposes favorable to it. fetus never acquired legal rights or civil
1. It is entitled to support [Quimiging v. Icao, personality because it was not alive at the time
GR. No. L-26795 (1970)] of delivery from the mother’s womb. No
2. It may inherit or succeed [Art. 1025, CC] damages can be claimed in behalf of the
3. It may receive donations [Art. 742, CC] unborn child since an action for pecuniary
damages on account of personal injury or
Period of Conception: the first 120 days of the death pertains primarily to the one injured. This
300 days preceding the birth of the child. is not to say that the parents [of an aborted
[Tolentino] fetus] are not entitled to collect any damages at
all. But such damages must be those inflicted
directly upon them as distinguished from the
Art. 41, CC. For civil purposes, the fetus is injury or violation of the rights of the [aborted
considered born if it is alive at the time it is fetus]” e.g. moral damages for their loss and
completely delivered from the mother’s the disappointment of their parental
womb. However, if the fetus had an expectations (Art. 2217, CC). [Geluz v. CA,
intrauterine life of less than seven months, it G.R. No. L-16439 (1961)]
is not deemed born if it dies within twenty-
four hours after its complete delivery from Death
the maternal womb.
Art. 42, CC. Civil personality is extinguished
by death. The effect of death upon the rights
Birth and obligations of the deceased is
The removal of the fetus from the mother’s determined by law, by contract and by will.
womb, which may be done naturally or
artificially by surgery. Before birth, the fetus is
not a person but merely a part of the internal Only natural or physical death. The law does
organs of the mother. But because of the not recognize “civil death,” (i.e. death due to
expectancy that it may be born, the law conviction or a religious profession). [Tolentino]
protects it and reserves its rights, making its
legal existence, if born alive, retroact to the For certain purposes, after the death of a
moment of its conception. [Tolentino] person, his personality continues in his
estate—the estate of a deceased person is
The presumption is that the baby was born also considered as having legal personality
alive, and the burden of proof lies on those who independent of the heirs, wherein the mass of
allege the contrary. property, rights, and assets left by the decent
becomes directly vested and charged with his
rights and obligations. [Tolentino]
Page 31 of 532
Criminal liability ends with death but civil Sec. 3(jj), Rule 131, ROC: Presumption of
liability may be charged against the estate Survivorship
[People v. Tirol, G.R. No. L-30538 (1981)].
Deceased A Deceased B Presumed
to have
Art. 43, CC. If there is a doubt, as between survived
two or more persons who are called to
succeed each other, as to which of them died Under 15 Under 15 Older
first, whoever alleges the death of one prior
to the other, shall prove the same; in the Above 60 Above 60 Younger
absence of proof, it is presumed that they
died at the same time and there shall be no Under 15 Above 60 Under 15
transmission of rights from one to the other.
Above 15 but under 60, Male
different sex
The statutory presumption provided by Article
43 of CC applies only when there is doubt on Above 15 but under 60, Older
the order of death between persons who are same sex
called to succeed each other. It does not apply
when there is credible eyewitness as to who Under 15 but Between 15 Between 15
died first [Joaquin v. Navarro, G.R. No. 5426 over 60 and 60 and 60
(1953)].
b. Juridical Persons
Art. 43, CC v. Sec. 3(jj), Rule 131, Rules of
Court (hereinafter, ROC)
A juridical person is an abstract being, formed
Art. 43, CC Sec. 3(jj), Rule 131 for the realization of collective purposes, to
which the law has granted capacity for rights
Only use the presumptions when there are and obligations. The entity must be recognized
no facts to get inferences from. as having its own rights and obligations which
are not that of its component members. Its
Only used for Cannot be used for personality is manifested only in the realm of
succession purposes succession purposes patrimonial relations—it has no family and
personal rights. [Tolentino]
In any circumstance Only during death in
calamities, wreck, The following are juridical persons [Art. 44,
battle or CC]:
conflagration 1. The State and its political subdivisions;
2. Other corporations, institutions and
Rule 131, Section 3(jj) provides that if there entities for public interest or purpose,
are no inferential/circumstantial evidences to created by law; their personality begins as
be inferred from, it can be presumed that when soon as they have been constituted
two persons perish in the same calamity, and it according to law:
is not shown who died first, the survivorship is a. These are governed by the laws
determined from the probabilities resulting from creating or recognizing them. [par. 1,
the strength and the age of the sexes. Art. 45, CC]
[Tolentino] b. Upon the dissolution of corporations,
institutions and other entities for public
interest or purpose their property and
other assets shall be disposed of in
pursuance of law or the charter
creating them. If nothing has been
specified on this point, the property and
Page 32 of 532
other assets shall be applied to similar so long as the contrary is not proved [Standard
purposes for the benefit of the region, Oil Co. v. Aranas (1911)]
province, city or municipality which
during the existence of the institution Restrictions on Capacity to Act
derived the principal benefits from the
Art. 38, CC. Minority, insanity or imbecility,
same. [Art. 47, CC]
the state of being a deaf-mute, prodigality
3. Corporations, partnerships and
and civil interdiction are mere restrictions on
associations for private interest or
capacity to act, and do not exempt the
purpose to which the law grants a juridical
incapacitated person from certain
personality, separate and distinct from that
obligations, as when the latter arise from his
of each shareholder, partner or member.
acts or from property relations, such as
a. Private corporations are regulated by
easements.
laws of general application on the
subject.
b. Partnerships and associations for Circumstances which modify, limit, or restrict
private interest or purpose are capacity to act:
governed by the provisions of this 1. Minority
Code concerning partnerships [pars. 2 2. Insanity or imbecility
and 3, Art. 45, CC]. 3. Deaf-mutism
4. Civil Interdiction (Penalty)
Juridical persons may: 5. Prodigality
1. Acquire and possess property of all kinds. 6. Family relations
2. Incur obligations. 7. Alienage
3. Bring civil or criminal actions. [Tolentino] 8. Absence
9. Insolvency and trusteeship
Juridical persons are not completely at par with
natural persons as to capacity because it Only religious belief and political opinion are
cannot exercise rights which presuppose the circumstances which do not limit capacity
physical existence, such as family rights, to act according to CC. [Art. 39, CC]
making of wills, etc. But like natural persons, it
can have a nationality, a domicile, a name, and General Rule: Incapacitated persons are not
a right to reputation. It can own and possess exempt from certain obligations arising from his
property, dispose such property, enter into acts or property relations. Restrictions in
contracts, and inherit by will. It can also incur capacity to act generally affect obligations
obligations. [Tolentino] arising from contracts only. As a rule, they do
not affect those arising from law, quasi-delicts,
2. Capacity to act etc. Also, certain rights are not affected by
incapacity, such as right to inherit or to support.
[Perez]
Art. 37, CC. Juridical capacity, which is the
fitness to be the subject of legal relations, is a. Minority
inherent in every natural person and is lost
only through death. Capacity to act, which is Article 234 of the Family Code (hereinafter FC)
the power to do acts with legal effect, is is amended, lowering the age of
acquired and may be lost. emancipation/majority from 21 to 18 years.
Articles 235 and 237 of FC are repealed.
Presumption of capacity: Capacity to act
must be supposed to attach to a person who Who are minors?
has not previously been declared incapable, Those whose age are below the age of
and such capacity is presumed to continue for majority.
Page 33 of 532
Effects on Contracts Effects on Marriage

1. They cannot give consent to a contract [Art. 1. May not yet contract marriage [Art. 5, FC].
1327 (1), CC] 2. Marriages, where one of the parties is
2. Minority cannot be asserted by the other below 18, even with the consent of
party in an action for annulment [Art. 1397, parents/guardians, are void [Art. 35, FC].
CC]
3. Not obliged to make restitution except Effect on Crimes [RA 9344: Juvenile Justice
insofar as he has been benefited [Art. and Welfare Act of 2006]
1399, CC] General Rule: EXEMPTED from criminal
4. Minor has no right to demand the liability
thing/price voluntarily returned by him [Art. Exception: Acted with discernment, and the
1426, CC] minor is between 15 and 18 years of age.
5. Minor has no right to recover voluntarily
paid sum or delivered thing, if consumed in Section 6 states that a child fifteen (15) years
good faith [Art. 1427, CC] of age or under at the time of the commission
6. Must pay reasonable amount for of the offense shall be exempt from criminal
necessaries delivered to him [Art. 1489, liability but will be subject to an intervention
CC] program.
7. A contract where one of the parties is a • A child above 15 but below 18 shall also be
minor is voidable [Art. 1390(1), CC] exempted from criminal liability and be
8. A contract is unenforceable when both of subjected to an intervention program,
the parties are minors (incapable of giving unless the child has acted with
consent) [Art. 1403(3), CC] discernment.
• Exemption from criminal liability does not
Estoppel works against minors who include exemption from civil liability.
misrepresent their ages in a contract and are
compelled to comply with its terms. [Mercado Section 7 states that a child in conflict with the
v. Espiritu, G.R. No. L-11872 (1917)] law shall enjoy the presumption of minority and
shall enjoy all the rights until he or she is
However, when a minor made no active proven to be 18 years old or older.
misrepresentation as to his minority and such
minority is known to the other party, the Section 20 states that if the child taken into
contract may be annulled by the minor upon custody is 15 years old or below, the authority
attaining the age of majority. [Bambalan v. which had the initial contact with the child has
Maramba, G.R. No. L-277710 (1928)] the duty to immediately release the child to the
custody of his/her parents, guardians, or
Failure of the minors to disclose their age does nearest relatives.
not constitute fraud. Because it was merely a • If those cannot be located, the child
passive misrepresentation, they were not may be released to a duly registered
estopped and cannot be legally bound by their NGO or religious organization, a
signatures in the contract. They do not have to barangay official or member of the
pay the interest, they may just return their Barangay Council for the Protection of
portion of the loan. However, the minors are Children, or to the DSWD.
obliged to make restitution insofar as they have
been benefited from what they received [Art. Section 57 states that any conduct not
1399, CC; Braganza v. Villa Abrille, G.R. No. L- considered an offense or not penalized if
12471 (1959)]. committed by an adult shall not be considered
an offense and shall not be punished if
committed by a child.
Page 34 of 532
Section 58 states that persons below 18 years 5. Unenforceable if both of the parties are
of age shall be exempt from prosecution for the insane [Art. 1403 (3), CC]
crime of vagrancy and prostitution,
mendicancy, and sniffing of rugby, as such are Effect on Crimes
inconsistent with the United Nations General rule: EXEMPTED from criminal liability
Convention on the Rights of the Child. [Art. 12(1), RPC]
Exception: Acted during lucid interval [Art.
Section 59 states that no death penalty shall 1328, CC].
be imposed upon children in conflict with the
law. Effect on Marriage
May be annulled if either party was of unsound
b. Insanity mind unless such party, after coming to reason,
freely cohabited with the other. [Art. 45(2), FC]
Insanity includes many forms of mental
disease, either inherited or acquired. A person Action for annulment of marriage must be filed
may not be insane but only mentally deficient by the sane spouse who had no knowledge of
(idiocy, imbecility, feeble-mindedness). the other’s insanity, or by any relative/guardian
Insanity is the complete deprivation of reason of the insane before the death of either party;
or intelligence or power to discern [People v. or by the insane spouse during a lucid interval
Austria]. or after regaining sanity. [Art. 47(2), FC]
On the other hand, imbecility is the weakness In the absence of proof that the defendant had
of mind which, without depriving the person lost his reason or became demented a few
entirely of the use of his reason, leaves only the moments prior to or during the perpetration of
faculty of conceiving the most common and the crime, it is presumed that he was in a
ordinary ideas and such as relate almost normal condition of mind. [USA v. Vaguilar,
always to physical wants and habits. [Black’s G.R. No. L-9471 (1914)]
Law Dictionary, 2nd Edition]
c. Deaf-Mutism
Prevailing Presumption: Every person is of
sound mind, in the absence of proof to the Effect on Contracts
contrary. [par. 1, Art. 800, CC] 1. Cannot give consent to a contract if
he/she also does not know how to write
It is presumed that a person who enters into a [Art. 1327(2), CC]
contract is of sound mind. The burden of proof 2. Can make a valid WILL, provided: he
of insanity rests upon him who alleges insanity. must personally read the will. The
[Engle v. Doe, G.R. No. L-23317 (1925)] (see contents of the same have either been
Exception below) read personally by him or otherwise
communicated to him by 2 persons
Effect on Contracts [Art. 807, CC]
1. Incapacity to give consent to a contract 3. Cannot be a witness to the execution of
[Art. 1327(2), CC] a will [Art. 820, CC]
2. Contracts entered into during lucid 4. Voidable if one of the parties is a deaf-
intervals are valid [Art. 1328, CC]. Burden mute who does not know how to write
of proof lies with party asserting the [Art. 1390, CC]
contract was entered into by the insane 5. Unenforceable if both of the parties are
during a lucid interval. deaf-mutes and do not know how to
3. Restitution of benefits [Art. 1399, CC] write [Art. 1403(3), CC]
4. Voidable if one of the parties is insane [Art.
1390, CC]
Page 35 of 532
d. Prodigality f. Family Relations
Incompetent includes prodigals [Sec. 2, Rule Effect on Crimes

92, ROC] 1. Justifying circumstance if acted in
defense of person/rights of spouse,
Prodigality may be inferred but must show a ascendants, descendants,
morbid state of mind and a disposition to brothers/sisters, and other relatives up
spend, waste, and lessen the estate to such an to the 4th civil degree [Art. 11(2), RPC]
extent as is likely to expose the family to want 2. Mitigating circumstance if acted in the
of support, or to deprive the forced heirs of their immediate vindication of a grave
undisposable part of the estate. [Martinez v. offense/felony committed against his
Martinez, G.R. No. 445 (1902)] spouse, ascendants or relatives of the
same civil degree [Art. 13(5), RPC]
Note: It is not the circumstance of prodigality, 3. Descendants cannot be compelled to
but the fact of being under guardianship that testify in a criminal case, against his
restricts capacity to act. parents and grandparents.
• Unless: the crime was against the
e. Civil Interdiction descendant OR by one parent against
the other [Art. 215, FC]
It is an accessory penalty imposed upon
persons who are sentenced to a principal Effect on Marriages
penalty not lower than reclusion temporal [Art. Incestuous and void marriages:
41, RPC]. 1. Between ascendants and descendants
of any degree;
Effect on Parental/Marital Authority 2. Between brothers and sisters, whether
Offender is deprived of the rights of parental full or half-blood. [Art. 37, FC]
authority, or guardianship, of marital authority,
of the right to manage his property and of the Effect on Contracts
right to dispose of such by any act inter vivos 1. Donations/grants of gratuitous
[Art. 34, RPC]. advantage between spouses during
the marriage shall be VOID, except
Effect on Marriage and Property moderate gifts during family occasions
1. For the validity of marriage [Art. 87, FC]
settlements, the participation of the 2. Prescription does not run between
guardian shall be indispensable [Art. spouses, parent and child, guardian
123, FC] and ward [Art. 1109, CC]
2. Sentence of one’s spouse to a penalty 3. Spouses cannot sell property to each
which carries with it civil interdiction is other, EXCEPT:
sufficient cause for judicial separation a. Absolute separation is agreed
of property [Art. 135 (1), FC] upon in the marriage
3. The administration of exclusive settlements
property of either spouse may be b. Judicial separation of property
transferred by the court to the other [Art. 1490, CC]
spouse when one of them is sentenced
to civil interdiction [Art. 142 (3), FC]
Page 36 of 532
g. Alienage absentee still lives, he shall be presumed

dead for all purposes, except for those of
Dual Citizenship v. Dual Allegiance [Cordora succession.
v. COMELEC, G.R. No.176947 (2009)]
Dual Citizenship Dual Allegiance The absentee shall not be presumed dead
for the purpose of opening his succession till
Arises when, as a Refers to the after an absence of ten years. If he
result of the situation in which a disappeared after the age of seventy-five
concurrent person years, an absence of five years shall be
application of the simultaneously sufficient in order that his succession may be
different laws of two owes, by some opened.
or more states, a positive act, loyalty
person is to two or more states The following, after being missing for four
simultaneously years, shall be presumed dead for all purposes
considered a including the division of the estate among
national by said the heirs [Art. 391, CC.]:
states 1. A person on board a vessel lost during a
sea voyage, or an aeroplane which is
Involuntary Result of individual’s
missing, who has not been heard of for four
volition
years since the loss of the vessel or
aeroplane;
For candidates with dual citizenship, it should 2. A person in the armed forces who has
suffice if, upon the filing of their certificates of taken part in war, and has been missing for
candidacy, they elect Philippine citizenship to four years;
terminate their status as persons with dual 3. A person who has been in danger of death
citizenship considering that their condition is under other circumstances and his
the unavoidable consequence of conflicting existence has not been known for four
laws of different states. [Cordora v. COMELEC, years.
G.R. No. 176947 (2009)]
The 4-year period provided by Art. 391 is
Effect on Property shorter than that of Art. 390 (7 and 10 years)
Aliens cannot own or operate public utilities. because it involves situations where the
Corporations should be at least 40% Filipino, absentee’s life is in danger.
and their managing or executive officials
should be Filipinos. Furthermore, alien i. Insolvency and Trusteeship
Corporations cannot operate for more than 50
years. [Sec. 11, Art. XII, 1987 Constitution] Under the Insolvency Law, a debtor who has
been found insolvent cannot dispose of his
h. Absence property or receive payments. [Perez citing Act
No. 1956, Rules on Corporate Rehabilitation]
Note: More thorough discussion under “Rules
Governing Absent Persons” 3. Domicile and Residence of
Absence is a limitation because it is a ground Persons
for the judicial appointment of a representative
[Art. 381, FC] Domicile of Natural Persons
The place of their habitual residence [Art. 50,
CC]
Art. 390, CC. After an absence of seven
years, it being unknown whether or not the
Page 37 of 532
Domicile of Juridical Persons B. RIGHTS AND OBLIGATIONS OF

The place where their legal representation is COUPLES IN INTIMATE
established, or where they exercise their
RELATIONSHIPS
primary functions, unless there is a law or other
(R.A. NO. 9262)
provision that fixes the domicile [Art. 51, CC]
Domicile v. Residence 1. Obligation not to commit acts

While domicile is permanent (there is intent to of VAWC
remain), residence is temporary and may be
changed anytime (there is no necessary intent Sec. 3(a) of R.A. No. 9262, otherwise known
to remain). as “An Act Defining Violence Against Women
and their Children, Providing for Protective
Requisites of Domicile Measures for Victims, Prescribing Penalties
1. Residence or bodily appearance in a new Therefore, and for Other Purposes,” elucidates
locality; that violence against women and their
2. Intention to permanently remain there children may be committed by any person
(animus manendi); and against a woman with whom the person has
3. An intention to abandon the old domicile or had a sexual or dating relationship.
(animus non revertendi). ! Sec. 3(e) defines a dating
relationship to contemplate a situation
There must be animus manendi coupled with wherein the parties live as husband
animus non revertendi. One must have actual and wife without the benefit of
change of domicile and a bona fide intention to marriage or are romantically involved
establish a new residence. [Poe Llamanzares over time and on a continuing basis
v. COMELEC, G.R. No. 221697 (2016)] during the course of the relationship.
○ A casual acquaintance or
Kinds of Domicile ordinary socialization between
1. Domicile of Origin: Domicile of parents of two individuals in a business or
a person at the time he was born. social context is not a dating
2. Domicile of Choice: Domicile chosen by a relationship.
person, changing his domicile of origin. ! Sec. 3(f), on the other hand, defines
Domicile where he intends to remain “sexual relations” to contemplate a
(animus revertendi). single sexual act which may or may
3. Domicile by Operation of Law (i.e. Art. not result in the bearing of a common
69, domicile of minor). child.
A married woman does not lose her domicile to

Principle RA 9262 does not violate the
her husband. Unless there is a clear proof of equal protection clause. The
abandonment, domicile of origin subsists unequal power relationship between
[Romualdez-Marcos v. COMELEC, G.R. No. women and men; the fact that
119976 (1995)]. women are more likely than men to
be victims of violence; and the
Foundlings cannot be considered stateless and widespread gender bias and
prejudice against women all make
citizenship is not required for domicile [Poe- for real differences justifying the
Llamanzares v. COMELEC, G.R. No. 221697 classification as allowed by the
(2016)] equal protection clause of the 1987
Philippine Constitution [Garcia v.
A house is not necessary to establish domicile Drilon (2006)].
[Jalosjos v. COMELEC, G.R. No. 193237
Concept The prohibited acts under this law
(2012)]. are in the nature of “public crime,”
Page 38 of 532
which means they may be Prohibited a. Causing physical harm to the

prosecuted upon the filing of a Acts woman or her child;
complaint by any citizen having b. Threatening to cause the
personal knowledge of the woman or her child physical
circumstances involving the harm;
commission of the crime [Sec. 25, c. Attempting to cause the woman
RA 9262]. or her child physical harm;
d. Placing the woman or her child
The prohibited acts shall likewise in fear of imminent physical
constitute grounds for legal harm;
separation under Art. 55(1) of the e. Attempting to compel or
Family Code. compelling the woman or her
! In which case, the cooling- child to engage in conduct
off period under Art. 58 of which the woman or her child
the Family Code shall not has the right to desist from or
apply [Sec. 19, RA 9262]. desist from conduct which the
woman or her child has the right
Scope Unmarried Cohabitants (i.e., to engage in, or attempting to
couples in intimate relationships), restrict or restricting the
wherein the parties live as husband woman's or her child's freedom
and wife without the benefit of of movement or conduct by
marriage. force or threat of force, physical
! However, in the case of or other harm or threat of
Garcia v. Drilon (2006), physical or other harm, or
the Supreme Court held intimidation directed against the
that “there is likewise no woman or child. This shall
merit to the contention that include, but not limited to, the
R.A. 9262 singles out the following acts committed with
husband or father as the the purpose or effect of
culprit.” As defined above, controlling or restricting the
VAWC may likewise be woman's or her child's
committed “against a movement or conduct:
woman with whom the i. Threatening to deprive or
person has or had a sexual actually depriving the
or dating relationship.” woman or her child of
This effectively custody to her/his family;
contemplates a scenario ii. Depriving or threatening to
where one of the parties deprive the woman or her
is a lesbian. children of financial
support legally due her or
Violence, as prohibited under this her family, or deliberately
Act, includes, but is not limited to: providing the woman's
1. Physical Violence or acts that children insufficient
include bodily or physical harm; financial support;
2. Sexual Violence or acts which iii. Depriving or threatening to
is sexual in nature, committed deprive the woman or her
against a woman or her child; child of a legal right;
3. Psychological Violence or iv. Preventing the woman in
acts or omissions causing or engaging in any legitimate
likely to cause mental or profession, occupation,
emotional suffering of the business or activity or
victim; and controlling the victim's own
4. Economic Abuse or acts that money or properties, or
make or attempt to make a solely controlling the
woman financially dependent conjugal or common
[Sec. 3(a), RA 9262]. money, or properties;
f. Inflicting or threatening to inflict
physical harm on oneself for the
Page 39 of 532
purpose of controlling her 2. Right to be protected against

actions or decisions;
g. Causing or attempting to cause
acts of VAWC
the woman or her child to
engage in any sexual activity RULE ON VIOLENCE AGAINST WOMEN
which does not constitute rape, AND THEIR CHILDREN [A.M. No. 04-10-11-
by force or threat of force, SC]
physical harm, or through
intimidation directed against the
woman or her child or her/his
Who may file a petition for a protection
immediate family; order?
h. Engaging in purposeful, a. The offended party
knowing, or reckless conduct, b. Parents or guardians of the offended
personally or through another, party
that alarms or causes c. Ascendants, descendants or collateral
substantial emotional or
psychological distress to the
relatives of the offended party, within the
woman or her child. This shall fourth civil degree of consanguinity or
include, but not be limited to, affinity
the following acts: d. Officers or social workers of the DSWD
i. Stalking or following the or social workers of LGUs
woman or her child in e. Police officers, preferably those in charge
public or private places;
ii. Peering in the window or
of women and children's desks
lingering outside the f. Punong Barangay or Barangay
residence of the woman or Kagawad
her child; g. Lawyer, counselor, therapist or
iii. Entering or remaining in healthcare provider of the petitioner; or
the dwelling or on the h. At least two concerned, responsible
property of the woman or
her child against her/his
citizens of the place where the violence
will; against women and their children occurred
iv. Destroying the property and who have personal knowledge of the
and personal belongings or offense committed. [Sec. 8]
inflicting harm to animals
or pets of the woman or her Where to File the Petition
child; and
v. Engaging in any form of
The petition may be filed with the Family Court
harassment or violence; of the place where the offended party
i. Causing mental or emotional resides. If there is no existing Family Court, it
anguish, public ridicule or may be filed with the Regional Trial Court,
humiliation to the woman or her Metropolitan Trial Court, Municipal Trial Court
child, including, but not limited in Cities, Municipal Trial Court or Municipal
to, repeated verbal and
emotional abuse, and denial of
Circuit Trial Court with territorial jurisdiction
financial support or custody of over the place of residence of the offended
minor children of access to the party. [Sec. 9]
woman's child/children.
What Reliefs are Available?
The protection order shall include any, some or
all of the following reliefs:
a. Prohibiting the respondent from
threatening to commit or committing,
personally or through another, acts of
violence against the offended party
b. Prohibiting the respondent from
harassing, annoying, telephoning,
Page 40 of 532
contacting or otherwise communicating in j. Directing the DSWD or any appropriate

any form with the offended party, either agency to prepare a program of
directly or indirectly; intervention for the offended party;
c. Removing and excluding the k. Requiring the respondent to receive
respondent from the residence of the professional counseling from agencies
offended party, regardless of ownership or persons who have demonstrated
of the residence, either temporarily or expertise and experience in anger control,
permanently where no property rights are management of alcohol, substance abuse
violated; and other forms of intervention to stop
d. Requiring the respondent to stay away violence;
from the offended party and any l. Awarding the offended party actual
designated family or household damages caused by the violence
member at a distance specified by the inflicted, including, but not limited to,
court; property damage, medical expenses,
e. Requiring the respondent to stay away childcare expenses and loss of income;
from the residence, school, place of and compensatory, moral, and exemplary
employment or any specified place damages.
frequented regularly by the offended
party and any designated family or The court may grant such other forms of relief.
household member; [Sec. 11]
f. Directing lawful possession and use by
the offended party of an automobile and 3. Other rights and obligations
other essential personal effects,
regardless of ownership, and directing the Unmarried cohabitants
appropriate law enforcement officer to • Are NOT considered next of kin
accompany the offended party to the • Are NOT extended visitation rights
residence of the parties to ensure that the
• Have NO right to make medical
offended party is safely restored to the
decisions on behalf of their partner
possession of the automobile and other
• Do NOT automatically enjoy welfare
essential personal effects;
benefits or dependent status arising
g. Ordering temporary or permanent
from partner’s employment
custody of the child/children with the
• However, in case of life insurance, if
offended party, taking into consideration
the partner is validly designated as
the best interests of the child. An offended
the beneficiary by the other, he/she is
party suffering from Battered Woman
entitled to the insurance proceeds
Syndrome shall not be disqualified. In no
arising from the life insurance of the
case shall custody of minor children be
other.
given to the batterer;
• Have NO right to use the surname of
h. Directing the respondent to provide
the other partner [Silva v. Peralta
support to the woman and/or her child,
(1960)].
if entitled to legal import;
• Have NO right to make funeral
i. Prohibiting the respondent from carrying
arrangements for the deceased
or possessing any firearm or deadly
• The right to make funeral
weapon and ordering him to surrender
arrangements for the deceased
the same to the court for appropriate
disposition, including revocation of remains with the surviving legal
wife, notwithstanding their 30 year
license and disqualification to apply for
separation [Valino v. Adriano (2014)].
any license to carry or possess a
firearm; • Are NOT allowed to adopt jointly
• CAN NOT exercise parental authority
over the child of the other
Page 41 of 532
Effect of Absence or Defect/Irregularity of

C. MARRIAGE the Requisites on the Marriage [Art. 4, FC]
Defect or
Absence
Irregularity
Marriage
a. A special contract of permanent union; Essential Void Voidable
b. Between a man and a woman;
c. Entered into in accordance with law; No effect, but makes
d. For the establishment of conjugal and the party responsible
family life. for such irregularity
Formal Void
e. It is the foundation of the family and an civilly, criminally or
inviolable social institution; administratively
f. Its nature, consequences, and incidents liable
are governed by law and not subject to Note: The term “defect” is used for essential
stipulation, requisites while “irregularity” is used for formal
requisites.
Exception: Marriage settlements may fix the
property relations during the marriage, within a. Essential Requisites
the limits provided by this Code. [Art. 1, FC.]
1. Gender
Marriage is an institution, the maintenance of
which the public is deeply interested. It is a N.B. The best source for citing the requirement
relation for life and the parties cannot terminate of male/female is still statutory, as provided
it at any shorter period by virtue of any contract explicitly in the Family Code: Art. 1, FC.
they may make. The reciprocal rights arising Marriage is a special contract of permanent
from this relation, so long as it continues, are union between a man and a woman…
such as the law determines from time to time,
and none other. [Goitia v. Campos Rueda, Sex is determined at birth; marriage between
G.R. No. 11263 (1916)] two people who had the same sex at birth is
invalid even if one changes sex by law.
1. Requisites [Republic v. Cagandahan, G.R. No. 166676
(2008)]
Essential Requisites [Art. 2, FC]
2. Legal capacity of the contracting parties, Changing of sex in one’s birth certificate on the
who must be a male and a female; and basis of sex reassignment shall be denied;
3. Consent (of the contracting parties) freely otherwise, it would result in confusion and
given in the presence of a solemnizing would allow marriage between persons of the
officer. same sex which is in defiance of the law, as
marriage is a union between a man and a
Formal Requisites [Art. 3, FC] woman. [Silverio v. Republic, G.R. No. 174689
1. Authority of solemnizing officer (subject (2007)]
to Art. 35(2), FC)
2. A valid marriage license (subject to But when the change in sex happens naturally,
exceptions) as when the person has Congenital Adrenal
3. Marriage ceremony Hyperplasia (CAH) or is “biologically or
naturally intersex,” the determining factor in
their gender classification would be what they,
having reached the age of majority, with good
reason thinks is their sex. Change in name and
Page 42 of 532
sex as registered is here allowed. [Republic v. b. Parental Advice: Needed for parties 21 to
Cagandahan, G.R. No. 166676 (2008)] below 25 years old.
2. Age However, absence of such does not make the

marriage void or voidable. Absence will merely
Legal Capacity delay the issuance of the marriage license by
Art. 5, FC. Any male or female of the age of three months [Art 15, FC].
eighteen years or upwards not under any of
the impediments mentioned in Articles 37 and 3. Consent Freely Given
38, may contract marriage.
Consent here refers to the consent of the
OTHER IMPEDIMENTS REFERENCED: contracting parties. The consent must refer to
the contracting parties’ bona fide intention to be
Art. 37, FC: Incestuous marriages married to the other. i.e. to make the woman
a. Between ascendants and descendants of his wife. [People v. Santiago, G.R. No. 27972
any degree; and (1927)]
b. Between brothers and sisters, whether of
the full or half blood. In People v. Santiago, it was held that the
marriage entered into by a person whose real
Art. 38, FC: Void for public policy intent is to avoid prosecution for rape is void for
a. Between collateral blood relatives, whether total lack of consent. Here, it was the intent
legitimate or illegitimate, up to the fourth of the accused—not the victim of rape, whom
civil degree; he married under duress—that was
b. Between step-parents and step-children; considered. The accused did not intend to
c. Between parents-in-law and children-in- make the victim his wife. He merely used such
law; marriage to escape criminal liability. [G.R. No.
d. Between the adopting parent and the 27972 (1927)]
adopted child;
e. Between the surviving spouse of the Absence of consent renders the marriage void
adopting parent and the adopted child; while defective consent makes it voidable [Art.
f. Between the surviving spouse of the 4, FC].
adopted child and the adopter;
g. Between an adopted child and a legitimate Status
child of the adopter; Situation Consent of
h. Between adopted children of the same Marriage
adopter; and Either party was of
i. Between parties where one, with the Vitiated/
unsound mind [Art. 45 (2), Voidable
Defective
intention to marry the other, killed that other FC]
person's spouse or his or her own spouse. Mistake as to the identity of
the other party [Art. 35 (5),
LIMITED EMANCIPATION: FC]
Absent Void
e.g. if one mistakenly
a. Parental Consent: Needed for parties marries his fiancee's twin
[Tolentino]
between 18 to below 21 years old, given by
their father, mother, surviving parent or Mistake as to the legal
guardian, or persons having legal charge of consequences and nature
of the marriage ceremony
them, in the order mentioned. [Art. 14, FC] e.g. thinking the ceremony
Absent Void
is a joke, pretend, or play-
If no parental consent is obtained, it makes the acting [Tolentino]
marriage voidable [Art. 45, FC].
Page 43 of 532
Consent was obtained by Minimum Requirements Prescribed by Law:

fraud: a. Appearance of contracting parties
1. Non-disclosure of personally before the solemnizing officer.
previous [Art. 3, FC]
conviction of crime
of moral turpitude
b. Personal declaration that they take each
2. Concealment of other as husband and wife. [Art. 3, FC]
pregnancy by c. Presence of at least two witnesses of
another man Vitiated/
Voidable
legal age. [Art. 3, FC]
3. Concealment of Defective d. The declaration shall be contained in the
STD Marriage Certificate. [Art. 6, FC]
4. Concealment of
drug addiction,
e. Marriage certificate shall be signed by the
habitual contracting parties and their witnesses and
alcoholism, attested by the solemnizing officer. [Art. 6,
homosexuality, or FC]
lesbianism [Art.
46, FC] N.B. In a marriage in articulo mortis, when one
Consent was obtained by or both parties are unable to sign the marriage
1. Force certificate, it shall be sufficient for one of the
2. Intimidation Vitiated/
Defective
Voidable witnesses to write the name of said party,
3. Undue Influence
[Art. 45 (4), FC] which shall be attested by the solemnizing
officer. [par. 2, Art. 6. FC]
Marriage entered into by a
person whose real intent is Places where marriage shall be publicly
to avoid prosecution for Absent Void solemnized:
rape [People v. Santiago, a. Chambers of the judge or in open court
G.R. No. 27972 (1927)] b. Church, chapel, or temple
Note: Defects in consent are discussed further c. Office of the consul-general, consul, or
in “Voidable or Annullable Marriages.” vice-consul [Art. 8, FC]
4. No Subsisting Marriage Exceptions to public solemnization

requirement
A judicial decree terminating the previous a. Marriages performed in articulo mortis
marriage is required for remarriage. or in remote places. [Art. 29, FC]
b. Where both parties request in writing
b. Formal Requisites that marriage be solemnized at a place
designated by them.
1. Marriage Ceremony
Note: Non-compliance with this requirement
No prescribed form or religious rite for the does not invalidate the marriage (premise:
solemnization of marriage is required. [Art. 6, more witnesses = more people can notify
FC] officer of impediments to marriage).
The couple's written agreement where they 2. Authority of Solemnizing Officer

declare themselves as husband and wife,
signed by them before a judge and two capable Who May Solemnize Marriage:
witnesses, even though it was independently Normal Circumstances
made by them, still counts as a valid ceremony. Incumbent member of the Judiciary, within
[Martinez v. Tan, G.R. No. L-4904 (1909)] his jurisdiction. [Art. 7, FC]
Priest, Rabbi, Imam or Minister of any
Church or Religious Sect who must be:
Page 44 of 532
a. Duly authorized by his church or 3. Marriage License

religious sect;
b. Registered with the civil registrar General rule: The license required is that
general; which is issued by local registrar of city or
c. Acting within the limits of the written municipality where either contracting party
authority granted to him by his habitually resides [Art. 9, FC].
church or religious sect;
d. At least one of the contracting Note: No marriage license shall be issued by
parties belongs to the solemnizing the Local Civil Registrar unless the applicants
officer’s church or religious sect. [Art. present a Certificate of Compliance issued for
7, FC] free by the local Family Planning Office
Municipal and City Mayors [Secs. 444-445, certifying that they had duly received adequate
Local Government Code] instructions and information on responsible
parenthood, family planning, breastfeeding
Articulo Mortis and infant nutrition [RA 10354, Sec. 15].
(in addition to those above mentioned)
Ship Captain or Airplane Chief may Determination of Age
solemnize a marriage in articulo mortis General rule: The local civil registrar shall
between passengers or crew members require presentation of:
[Arts. 7 and 31, FC] a. Original birth certificates, or
A Military Commander of a unit may b. Baptismal certificates
solemnize marriages in articulo mortis
between persons within the zone of military Exception: If parents appear personally or
operation in the absence of a chaplain [Arts. when the local civil registrar is convinced that
7 and 32, FC] the parties are of the required age.
Marriages Abroad
Consul-general, consul or vice-consul may Where Valid: License valid in any part of the
solemnize marriages between Filipino Philippines
citizens abroad [Arts. 7 and 10, FC]
Period of Validity: It will be valid for 120 days
General rule: Those solemnized by any from date of issue, automatically cancelled at
person not legally authorized to perform the expiration of such period.
marriages are void.
Marriages celebrated without a marriage
Exception: Unless such marriages were license before the effectivity of the Family Code
contracted with either or both parties believing are void ab initio as marriage license was an
in good faith that the solemnizing officer had essential requisite in the CC. [Kho v. Republic,
the legal authority to do so. [Art. 35(2), FC] G.R. No. 147862 (2016)]
Good faith refers to questions of fact, not A marriage which preceded the issuance of the
ignorance of the law (e.g. they did not know the marriage license is void and the subsequent
priest’s license expired vs. thinking a Senator issuance of such license cannot render valid
could solemnize their marriage). [Legarda, the marriage. Except in cases provided by law,
Deriquito-Mawis, and Vargas] it is the marriage license that gives the
solemnizing officer the authority to solemnize a
Note: An irregularity in a formal requisite will marriage. [Aranes v. Occiano, MTJ-02-1390
not affect the validity of the marriage but those (2002)].
responsible may be held criminally, civilly,
and administratively liable [Art. 4 & 7, FC]
Page 45 of 532
Special Situations
If the party has been previously married, s/he b. Marriage in remote and inaccessible
shall furnish, instead of birth or baptismal places [Art. 28, FC]
certificate: c. Marriages by Muslims and Ethnic
a. Death certificate of deceased spouse (if cultural minorities provided they are
cannot be obtained, the party shall make solemnized in accordance with their
an affidavit setting forth this circumstance, customs, rites or practices. [Art. 33, FC]
his/her actual civil status and name and d. Marriage by parties who have cohabited
date of death of deceased spouse), or for at least 5 years without any legal
b. Judicial decree of the absolute divorce, or impediment to marry each other. [Art. 34,
c. Judicial decree of annulment, or FC; Ninal v. Badayog, G.R. No. 133778
d. Declaration of nullity of previous marriage (2000)]
[Art. 13, FC]
Note: A false affidavit of having lived together
Foreign National for 5 years as husband and wife cannot be
a. When either or both parties are foreign considered as a mere irregularity in the formal
nationals: Certificate of legal capacity to requisites of marriage but a complete absence,
contract marriage issued by a diplomatic rendering their marriage void ab initio. [De
or consular official, shall be submitted Castro v. Assidao-De Castro, G.R. No. 160172
before a marriage license can be obtained (2008)]
[Art. 21, FC]
b. Stateless persons or refugees from other Requisites for the 5-year cohabitation to be
countries: Affidavit stating valid for the exemption from acquiring a
circumstances showing capacity to marriage license
contract marriage, instead of certificate of a. The man and woman must have been
legal capacity [Art. 21, FC] living together as husband and wife for at
least five years before the marriage;
Note: The Apostille Convention, which took b. The parties must have no legal
effect in the PH on 14 May 2019, simplifies the impediment to marry each other;
authentication of foreign documents. Public c. The fact of absence of legal impediment
documents executed in Apostille-contracting between the parties must be present at the
countries, once Apostillized, no longer need time of marriage;
authentication from the Philippine embassy or d. The parties must execute an affidavit
consulate general. In the same way, PH stating that they have lived together for at
documents Apostillized by the DFA need not least five years [and are without legal
be authenticated by Foreign embassies or impediment to marry each other]; and
consulate generals if the country is a member e. The solemnizing officer must execute a
of the convention. [DFA Public Advisory] sworn statement that he had ascertained
the qualifications of the parties and that he
Exceptions to the Marriage License had found no legal impediment to their
Requirement marriage [Borja-Manzano v. Judge
a. Marriage in articulo mortis [Art. 27, FC] Sanchez, A.M. MTJ-00-1329 (2001)].
The marriage may be solemnized without 4. Marriage Certificate

the necessity of a marriage license. It
remains valid even if ailing party survives. Where parties declare that they take each
1. Between passengers or crew members other as husband and wife; contains the
in a ship or airplane [Art. 31, FC] following:
2. Persons within a military zone [Art. 32, a. Full name, sex, age of party;
FC] b. Citizenship, religion, habitual
3. Other situations in articulo mortis residence;
Page 46 of 532
c. Date and precise time of celebration of under the law of the country in which it was
marriage; solemnized.
d. That marriage license was properly
issued (except in marriages of Essential
Formal Requisites
exceptional character); Requisites
e. That parental consent was secured, Inherent in the Requirements
when required; parties, carried independent of the
f. That requirement as to parental advice everywhere parties
was complied with, when required; Lex Nationalii –
g. That parties have entered into Laws relating to Lex loci
marriage settlements, if any [Art. 22, family rights and celebrationis – If
FC] duties, or to the valid where
status, condition, celebrated, then valid
N.B. Not an essential or formal requisite and legal capacity everywhere; forms of
without which the marriage will be void of persons are contracting marriage
[Madridejo v. de Leon, G.R. No. L-32473 binding upon PH are to be regulated by
(1930)]. It is the best evidence that a marriage citizens even the law where it is
does exist. [Tenebro v. CA, G.R. No. 150758 though living celebrated. [Art. 2,
(2004)] abroad [Art. 15, CC]
CC]
Non-existence of a marriage contract will not Foreign marriages
overthrow the presumption of a valid marriage void under PH law Foreign marriages
where all the requisites for its validity have due to lack of an may be void under PH
been complied with. [People v. Borromeo, G.R. essential requisite, law due to absence of
No. L-61873 (1984)] even if valid under a formal requisite
foreign laws, will under foreign laws.
2. Marriages Celebrated Abroad not be recognized.
General Rule: Marriages solemnized abroad Proof of Foreign Marriage in order that it may
in accordance with the laws in force in that be upheld:
country shall be valid in the Philippines. [par. 1, 1. Provisions of the foreign law, and
Art 26, FC] 2. Celebration of the marriage in
accordance with said provisions
Exceptions
1. Marriage where one or both parties are 3. Foreign Divorce
below 18 years old [Art. 35(1), FC]
2. Bigamous or polygamous marriage [Art. If the foreign spouse obtains a valid divorce
35(4), FC] decree abroad capacitating him/her to remarry,
3. Mistake in identity [Art. 35 (5), FC] the Filipino spouse shall have capacity to
4. Marriages void under Article 53 [Art. 35 (6), remarry under Philippine law. [Art. 26(2), FC]
FC]
5. Psychological incapacity [Art. 36, FC] The citizenship of the spouses at the time of
6. Incestuous marriages [Art. 37, FC] the divorce determines their capacity to obtain
7. Marriage void for reasons of public policy a valid divorce. [Quita v. Dandan, G.R. No.
[Art. 38, FC] 124862 (1998)]
Note: This means that the foreign marriage A marriage between two Filipinos cannot be
may still be recognized as valid in the dissolved even by a divorce obtained abroad,
Philippines even if it would have fallen under because of Articles 15 and 17 of the CC [Garcia
Art. 35 (2 and 3) of the FC so long as it is valid v. Recio, G.R. No. 138322 (2001)].
Page 47 of 532
Question: Since it is the citizenship at the time between the two cases in order to avoid the
of the divorce that determines capacity to absurd situation where a Filipino spouse is still
obtain a valid divorce, can spouses who are married to the alien spouse even though the
both dual citizens (Filipino & Alien) get latter is capacitated by his own laws to remarry
divorced? What about if both spouses were and is no longer married to the Filipino. [G.R.
originally Filipino, were later naturalized (i.e. No. 221029 (2018)].
lost their Filipino citizenship), and even later
regained their Filipino citizenship and are now Courts will only determine (1) whether the
dual citizens? foreign judgment is inconsistent with an
overriding public policy in the Philippines; and
Aliens may obtain divorces abroad, which may (2) whether any alleging party is able to prove
be recognized in the Philippines, provided they an extrinsic ground to repel the foreign
are valid according to their national law. The judgment, i.e. want of jurisdiction, want of
marriage tie when thus severed as to one party, notice to the party, collusion, fraud, or clear
ceases to bind either. [Van Dorn v. Romillo, mistake of law or fact. If there is neither
G.R. No. L-68470 (1985)] inconsistency with public policy nor adequate
proof to repel the judgment, Philippine courts
A divorce obtained abroad by a couple, who should, by default, recognize the foreign
are both aliens, may be recognized in the judgment as part of the comity of nations.
Philippines, provided it is consistent with their [Fujiki v. Marinay, G.R. No. 1196049 (2013)]
respective national laws. [Garcia v. Recio, G.R.
No. 138322 (2001)] 4. Void Marriages
Note: Divorces obtained abroad by Filipino Types of void marriages
citizens may now be validly recognized in the 1. Absence of any formal/essential
Philippines but only in cases of mixed requisites [Art. 35, FC]
marriages involving a Filipino and a foreigner. 2. Bigamous and polygamous marriages
[Republic of the Philippines v. Manalo, G.R. [Art. 35, (4)]
No. 221029 (2018)] 3. Subsequent marriage, upon
reappearance of spouse [Art. 42, FC]
In mixed marriages involving a Filipino and a 4. Bad faith of both spouses in the
foreigner, Article 26 of the Family Code allows subsequent marriage under Art. 41, FC
the former to contract a subsequent marriage 5. Psychologically Incapacitated spouse
in case the divorce is (1) “validly obtained [Art. 36, FC]
abroad by the alien spouse and (2) is of the 6. Void subsequent marriages [Art. 35(6),
type that legally dissolves the marriage and FC]
capacitating him or her to remarry.” [Garcia v. 7. Incestuous Marriages [Art. 37, FC]
Recio, G.R. No. 138322 (2001)] 8. Void by reasons of public policy [Art. 38,
FC]
Note: Following the ruling of Republic of the
Philippines v. Manalo, the divorce may now be Art. 39, FC. The action or defense for the
one that was validly obtained by the Filipino declaration of absolute nullity shall not
spouse against the foreigner spouse. This is prescribe. (as amended by RA 8533)
because Art. 26(2), FC makes no distinction as
to who obtains the divorce. All that is required
is that it is validly obtained abroad. A Filipino
a. Absence of Requisites
who initiates the divorce proceeding against a
Void from the Beginning [Art. 35, FC]
foreign spouse still ends up in the same
a. Marriage where any party is below
position as one whose foreign spouse initiated
eighteen years of age even with the
proceedings: they both no longer have
consent of parents or guardians
spouses. There should be no distinction
Page 48 of 532
b. Marriage solemnized by any person not

legally authorized to perform marriages No judicial declaration of nullity
unless such marriages were contracted A person entered into a subsequent marriage
with either or both parties believing in good WITHOUT first getting a judicial declaration
faith that the solemnizing officer had legal of nullity of the first void marriage. [Art. 40, FC]
authority to do so.
Presumptive death
Note: One’s belief in good faith that the Failure of the spouse present to obtain a
solemnizing officer has the required judicial declaration of presumptive death
authority is a mistake of fact, and not of before entering a subsequent marriage. [Art.
law. 41, FC]
c. Marriage solemnized without a valid Bad faith of both spouses

marriage license, except in marriages Both spouses entering a subsequent marriage
under exceptional circumstances after presumptive death, who acted in bad
faith. [Art. 44, FC]
d. Bigamous or polygamous marriages not
falling under Article 41 (Art. 41: It is now settled that the fact that the first
Subsequent marriage by present spouse marriage is void from the beginning is not a
who obtained a declaration of presumptive defense in a bigamy charge. As with a
death for absent spouse prior to the voidable marriage, there must be a judicial
subsequent marriage) declaration of the nullity of a marriage before
contracting the second marriage. [Mercado v.
e. There is a mistake as to the identity of the Tan, G.R. No. 137110 (2000)]
other contracting party
The accused may still be charged with the
f. Subsequent marriages that are void crime of bigamy, even if there is a subsequent
under Article 53 (Non-compliance with declaration of the nullity of the second
Art. 52) marriage, so long as the first marriage was still
subsisting when the second marriage was
To be considered void on the ground of celebrated. [Capili v. People, G.R. No. 183805
absence of a marriage license, the law requires (2013)]
that the absence of such marriage license must
be apparent on the marriage contract, or at the c. Subsequent Marriage When
very least, supported by a certification from the One Spouse is Absent
local civil registrar that no such marriage
license was issued to the parties. [Alcantara v. Requirements for Subsequent Marriage to
Alcantara, G.R. No. 167746 (2007)] be Valid When Prior Spouse is Absent [Art.
41, FC]
b. Bigamous and Polygamous a. Subsequent marriage due to ordinary
Marriages absence where:
1. Absent spouse had been absent for 4
Elements of a Bigamous Marriage consecutive years;
a. Offender legally married 2. The spouse present had a well-
b. Marriage not legally dissolved founded belief that the absent
c. Offender contracts a subsequent spouse is dead; and
marriage 3. Judicial declaration of presumptive
d. Subsequent marriage has all the death was secured (no prejudice to the
essential requisites for validity, except effect of the reappearance of the
legal capacity [Capili v. People, G.R. No. absent spouse).
183805, (2013)]
Page 49 of 532
b. Subsequent marriage due to Exception to the Exception: If there is a

extraordinary absence where: judgment annulling the previous marriage or
1. Absent spouse had been missing for 2 declaring it void ab initio. [Art. 42, FC]
consecutive years;
2. There is danger of death under the Good faith: Period of absence for presumptive
circumstances set forth in Art. 391, CC death is MANDATORY and thus cannot be
attendant to the disappearance; shortened by good faith and if done so, will be
o Onboard vessel lost at sea void. This period is counted from when the
voyage, airplane, party last heard from his/her absentee spouse.
o Armed forces in war, or [Jones v. Hortiguela, G.R. No. 43701 (1937)]
o Danger of death under other
circumstances, existence not Difference between Absence in the CC and
known Family Code
3. The spouse present had a well- Family Code
CC [Art. 390]
founded belief that the missing person [Art. 41]
is dead; and 4 years under
Absent for at
4. Judicial declaration of presumptive normal
death was secured (no prejudice to the least 7 years
As to circumstances
effect of the reappearance of the period 2 years under
absent spouse). Absent for at
extraordinary
least 4 years
circumstances
The belief of the present spouse must be the In order to Declaration of
result of proper and honest to goodness remarry, presumptive
inquiries and efforts to ascertain the As to
summary death is not
whereabouts of the absent spouse and remarriage
proceeding is necessary
whether the absent spouse is still alive or is necessary
already dead. This is drawn from Can be
circumstances before and after the instituted by
disappearance and the nature and extent of As to who the spouse
inquiries made. [Republic v. Granada, G.R. No. can present, any The spouses
187592 (2012)] institute the interested themselves
action party, and the
Effect of Reappearance of Absent Spouse subsequent
General rule: The subsequent marriage spouse
remains valid. Subsequent
marriage is Upon
Exception: It is automatically terminated by automatically reappearance,
the recording of the affidavit of reappearance As to effect terminated by judicial
of the absent spouse at the instance of any on the recording proceeding is
interested person, with due notice to the subsequent of an affidavit necessary to
spouses of the subsequent marriage. [Art. 42, marriage of declare
FC] reappearance marriage null
of the absent and void
Note: It is the recording of the affidavit of spouse
reappearance that automatically terminates the Well-founded
subsequent marriage. Hence, if absentee belief that the Generally
spouse reappears without recording affidavit of As to
absent believed to be
reappearance, then there is no legal effect. ground
spouse is dead
Meanwhile, absentee spouse cannot remarry. dead
[Tolentino]
Page 50 of 532
Related Provisions the essential marital obligations of marriage,

Art. 390, CC. After an absence of 7 years, it shall likewise be void even if such incapacity
being unknown whether or not the absentee becomes manifest only after its
still lives, he shall be presumed dead for all solemnization.
purposes, except for those of succession.
Psychological Vice of
The absentee shall not be presumed dead Incapacity Consent
for the purpose of opening his succession till Has nothing to do with
after an absence of 10 years. If he consent, but the incapacity The consent
disappeared after the age of 75 years, an to comply with the essential itself is
absence of 5 years shall be sufficient in marital obligations of defective
order that his succession may be opened. marriage
The following shall be presumed dead for all Psychological

purposes, including the division of the estate Insanity
Incapacity
among the heirs: Consent might be valid,
a. A person on board a vessel lost during a but the party is unable
sea voyage, or an aeroplane which is Vice of consent
to assume essential
missing, who has not been heard of for marital obligations
four years since the loss of the vessel or Ground for
aeroplane; Ground for nullity
annulment
b. A person in the armed forces who has
taken part in war, and has been missing for The application of Art. 36 is confined to the
four years; most serious cases of personality disorders
c. A person who has been in danger of clearly demonstrative of an utter insensitivity or
death under other circumstances and inability to give meaning and significance to the
his existence has not been known for four marriage. [Santos v. CA, G.R. No. 112019
years. [Art. 391, CC] (1995)]
N.B. Although 7 years is required for the The psychological illness that must have
presumption of death of an absentee in the CC, afflicted a party at the inception of the
the FC makes an exception for the purpose of marriage should be a malady so grave and
remarriage by limiting such requirement to 4 permanent as to deprive one of awareness
years. of the duties and responsibilities of the
matrimonial bond he or she is about to assume.
d. Bad Faith of Both Spouses [Marcos v. Marcos, G.R. No. 136490 (2000)]
Art. 44, FC. If both spouses of the There are 3 characteristics for determining
subsequent marriage acted in bad faith, said psychological incapacity:
marriage shall be void ab initio and all a. Gravity - grave or serious such that the
donations by reason of marriage and party cannot carry out normal and ordinary
testamentary dispositions made by one in duties of marriage under ordinary
favor of the other are revoked by operation circumstances;
of law. b. Juridical Antecedence - it must be rooted in
the history of the party before the marriage;
e. Psychological Incapacity and
c. Incurability - must be incurable OR the cure
Art. 36, FC. A marriage contracted by any is beyond the means of the party [Santos v.
party who, at the time of the celebration, was Bedia-Santos, G.R. No. 112019 (1995)]
psychologically incapacitated to comply with
Page 51 of 532
Molina Doctrine in Psychological Incapacity To require the allegation of the root cause of
a. The burden of proof to show the nullity of psychological incapacity by an accredited
the marriage belongs to the plaintiff. This is psychologist may prove too expensive for the
to be investigated by the OSG for collusion. parties. But where the parties had full
b. The root cause of the psychological opportunity to present expert opinions, such
incapacity must be: will be weighed by the Court in its decision.
1. Medically or clinically identified; [Ting v. Velez-Ting, G.R. No. 166562, (2009)]
2. Alleged in the complaint;
3. Sufficiently proven by the experts; and Examples of Psychological Incapacity
4. Clearly explained in the decision.
c. The incapacity must be proven to be The senseless and protracted refusal of one of
existing at “the time of the celebration” the parties to fulfill the marital obligation "to
of the marriage. procreate children based on the universal
d. Such incapacity must also be shown to be principle that procreation of children through
medically or clinically permanent or sexual cooperation is the basic end of
incurable. marriage," is equivalent to psychological
e. Such illness must be grave enough to incapacity. “A man who can but won’t is
bring about the disability of the party to psychologically incapacitated.” [Tsoi v. CA,
assume the essential obligations of G.R. No. 119190 (1997)]
marriage.
f. The essential marital obligations must “Pathological liar” considered as psychological
be those embraced by Articles 68 up to 71 incapacity; Molina guidelines met. [Antonio v.
of the Family Code as regards the husband Reyes, G.R. No. 155800 (2006)]
and wife as well as Articles 220, 221, and Note: This case also gave weight to the fact
225 of the same Code in regard to parents that the Church annulled the marriage.
and their children.
g. Interpretations given by the National Marriages where both parties are afflicted with
Appellate Matrimonial Tribunal of the grave, severe, and incurable psychological
Catholic Church in the Philippines, while incapacity shall likewise be void [Te v. Te, G.R.
not controlling/decisive, should be given No. 161793 (2009)].
great respect by our courts.
h. The trial court must order the prosecuting Note: Both spouses have personality
attorney or fiscal and the Solicitor disorders.
General to appear as counsel for the
state. No decision shall be handed down f. Incestuous Marriage
unless the Solicitor General issues a
certification. [Republic v. Molina, G.R. No. Marriages between the following are
108763 (1997)] considered incestuous, and are therefore
void ab initio:
Psychological incapacity may be established a. Between ascendants and descendants
by the totality of the evidence presented. of any degree, legitimate or illegitimate
Personal medical examination could be b. Between brothers and sisters, whether
dispensed with. [Marcos v. Marcos, G.R. No. full or half blood, legitimate or illegitimate
136490 (2000)] [Art. 37, FC]
There is no requirement that the respondent be g. Against Public Policy

medically examined first. [Republic v. San
Jose, G.R. No. 168328 (2007)] Marriages between the following are
considered against public policy, and are
The stringent requirements set forth by Molina therefore void ab initio:
should be relaxed and applied case-to-case.
Page 52 of 532
a. Between collateral blood relatives, Subsequent marriage of spouses, where the

legitimate or illegitimate, up to the fourth requirements of recording under Art. 52 have
civil degree; not been complied with, shall be null and void.
[Art. 53, FC]
b. Between step-parents and step-children;
The judgment of annulment or of absolute
N.B. Stepbrothers and stepsisters can nullity of the marriage, the partition and
marry because marriages between them distribution of the properties of the spouses
are not among those enumerated in Article and the delivery of the children's presumptive
38. legitimes shall be recorded in the appropriate
civil registry and registries of property;
c. Between parents-in-law and children-in- otherwise, the same shall not affect third
law; persons. [Art. 52, FC]
d. Between adopting parent and adopted Under the CC, no judicial declaration for nullity
child; of previous marriage was required to contract
a subsequent marriage. [People v. Mendoza,
e. Between the surviving spouse of the G.R. No. L-5877 (1954)]
adopting parent and the adopted child;
EFFECTS OF TERMINATION OF
f. Between the surviving spouse of the SUBSEQUENT MARRIAGE UNDER ART. 42
adopted child and the adopter; [Art. 43, FC]
a. Children of subsequent marriage:
g. Between an adopted child and a legitimate conceived prior to its termination
child of the adopter; considered legitimate; custody and support
decided by court in a proper proceeding.
h. Between adopted children of the same b. Property Regime: dissolved and
adopter; and liquidated (party in bad faith shall forfeit
his/her share in favor of the common
i. Between parties where one, with the children or if there are none, children of the
intention to marry the other, killed that other guilty spouse by a previous marriage, and
person's spouse, or his or her own spouse in case there are none, to the innocent
[Art. 38, FC] spouse).
c. Donation propter nuptias: remains valid,
Note: The following relationships are outside of (but if the donee contracted marriage in
Articles 37 and 38, and are therefore not bad faith, donations are revoked by
impediments to marriage: operation of law)
a. Brother-in-law with sister-in-law; d. Insurance benefits: innocent spouse may
b. Stepbrother with stepsister; revoke designation of guilty party as
c. Guardian with ward; beneficiary, even if such designation is
d. Adopted with illegitimate child of the stipulated as irrevocable.
adopter; e. Succession Rights: party in bad faith shall
e. Adopted son of the husband with be disqualified to inherit from the innocent
adopted daughter of the wife. spouse, whether testate or intestate.
h. Non-Compliance with Both spouses guilty of bad faith

Recording Requirement If both spouses of the subsequent marriage
after Declaration of Nullity acted in bad faith, all donations by reason of
marriage and testamentary dispositions made
by one party in favor of the other are revoked
by operation of law. [Art. 44, FC]
Page 53 of 532
Who may file the petition for nullity of void stipulation of facts or confession of judgment.
marriages? [Art. 48 (2), FC]
General Rule: Only the husband or wife may
file the petition. [AM No. 02-11-10 SC, Sec. 2] Stipulation of Facts
An admission by both parties after agreeing to
Specifically, A.M. No. 02-11-10-SC extends the existence of any of the grounds or facts that
only to marriages covered by the Family Code, would constitute a void/voidable marriage.
which took effect on August 3, 1988, but, being
a procedural rule that is prospective in Confession of Judgment
application, is confined only to proceedings The admission by one party admitting his/her
commenced after March 15, 2003. [Ablaza v. fault to cause the invalidity of the marriage.
Republic, G.R. No 158298 (2010)]
Although the admission of guilt of the wife
Exceptions constitutes a confession of judgment, the
a. Nullity of marriage cases commenced husband was also able to present other
before effectivity of A.M. No. 02-11-10-SC evidence to support the allegation. Hence,
b. Marriages celebrated during the effectivity there was no collusion. [Ocampo v.
of the CC. [Carlos v. Sandoval, G.R. No Florenciano, G.R. No. L-13553 (1960)]
179922 (2008)]
Participation of the OSG
Procedure in Attacking a Void Marriage The obvious intent of the AM 02-11-10-SC was
General Rule: Void Marriages may be to require the OSG to appear as counsel for the
attacked collaterally or directly. State in the capacity of a defensor vinculi (i.e.,
defender of the marital bond) to oppose
Exception: A person in a void marriage must petitions for, and to appeal judgments in favor
first file for a declaration of nullity in order to of declarations of nullity of marriage under
subsequently marry. Article 36 of the Family Code, thereby ensuring
that only the meritorious cases for the
Requisites for Valid Remarriage declaration of nullity of marriages based on
a. The previous marriage should be judicially psychological incapacity-those sufficiently
declared void or annulled (final judgment) evidenced by gravity, incurability and juridical
[Terre v. Terre, A.M. No. 2349 (1992), antecedence-would succeed. [Mendoza v.
Atienza v. Brillantes, A.M. No. MTJ-92-706 Republic, G.R. No. 157649 (2012)]
(1995)]; Wiegel v. Sempio-Dy, G.R. No. L-
53703 (1986)]. No Motion to Dismiss
b. Must comply with the requirements of Art. AM 02-11-10-SC Sec. 7 prohibits the filing of a
52, FC. motion to dismiss in actions for annulment of
marriage. [Aurelio v. Aurelio, G.R. No. 175367
Art. 52, FC. The judgment of annulment or (2011)]
of absolute nullity of the marriage the
partition and distribution of the properties of Effect of pendency of action for declaration
the spouses and the delivery of the of nullity:
children's presumptive legitimes shall be a. The court shall provide for the support of
recorded in the appropriate civil registry and the spouses.
registries of property; otherwise the same b. The custody and support of the common
shall not affect third persons. children, giving paramount consideration to
their moral and material welfare, their
Safeguard Against Collusion and No choice of parent with whom they wish to
Confession of Judgment remain.
In the cases referred to in the preceding c. The court shall also provide for visitation
paragraph, no judgment shall be based upon a rights of the other parent. [Art. 49, FC]
Page 54 of 532
Effect of Res Judicata 5. Voidable marriages

Suffice it to state that parties are bound not only
as regards every matter offered and received Art. 4, FC states that “xxx A defect in any of
to sustain or defeat their claims or demand but the essential requisites shall render the
as to any other admissible matter which might marriage voidable as provided in Article 45.”
have been offered for that purpose and of all
other matters that could have been adjudged in Grounds for annulment that must exist at
that case. [Mallion v. Alcantara, G.R. No. the time of the marriage [Art. 45, FC]
141528 (2006)] a. The party in whose behalf it is sought to
have the marriage annulled was eighteen
Effect of Final Judgment Declaring Nullity years of age or over but below twenty-
The effects provided for by paragraphs (2), (3), one, and the marriage was solemnized
(4) and (5) of Article 43 and by Article 44 shall without the consent of the parents,
also apply in the proper cases to marriages guardian or person having substitute
which are declared void ab initio or annulled by parental authority over the party, in that
final judgment under Articles 40 and 45 [Art. order, UNLESS after attaining the age of
50(1), FC]. twenty-one, such party freely cohabited
with the other and both lived together as
Final judgment in such cases shall provide for: husband and wife;
a. Liquidation, partition, and distribution of the b. Either party was of unsound mind,
properties of the spouses UNLESS such party after coming to
b. Custody and support of the common reason, freely cohabited with the other as
children husband and wife;
c. Delivery of their presumptive legitimes c. The consent of either party was obtained
by fraud, UNLESS such party afterwards,
UNLESS: such matters had been adjudicated with full knowledge of the facts constituting
in previous judicial proceedings. [Art. 50(2), the fraud, freely cohabited with the other as
FC] husband and wife;
d. The consent of either party was obtained
All creditors of the spouses/property regime by force, intimidation or undue
shall be notified of the proceedings for influence, UNLESS the same having
liquidation [Art. 50(2 and 3), FC] disappeared or ceased, such party
thereafter freely cohabited with the other as
In the partition, the conjugal dwelling and lot husband and wife;
shall be adjudicated to the spouse with whom e. Either party was physically incapable of
majority of the common children remain [Art. consummating the marriage with the
102 and 129, Art. 50(4), FC] other, and such incapacity continues and
appears to be incurable; or
Generally, children born or conceived within f. Either party was afflicted with a sexually
void marriages are illegitimate. transmissible disease found to be
serious and appears to be incurable.
Exceptions
a. Children conceived or born before the Nature of an Action for Annulment
judgment under Article 36 has become final Action in rem, concerns status of parties; res is
and executory [Art. 54, FC] relation between parties or marriage tie;
b. Children conceived or born of subsequent jurisdiction depends on nationality or domicile
marriages under Article 53 [Art. 54, FC] not the place of celebration.
Page 55 of 532
a. Lack of Parental Consent Mere mental weakness is not a ground for

annulment, but if found grave enough, it may
Article 45(1) provides the first ground for a amount to psychological incapacity.
voidable marriage, which is the solemnization
of a marriage of a party between 18-21 years Intoxication amounting to lack of mental
of age without the consent of their parents. capacity as well as somnambulism are
considered unsoundness of mind, as there was
Note: Art. 14, FC states that in case either or no knowledge of what he or she was giving
both of the contracting parties, not having been consent to. [Tolentino]
emancipated by a previous marriage, are
between the ages of eighteen and twenty-one, Must exist at the time of the celebration of the
THEY SHALL, in addition to the requirements marriage. Insanity that occurs after the
of the preceding articles: celebration of marriage does not constitute a
a. Exhibit to the local civil registrar the cause for nullity [Katipunan v. Tenorio, G.R.
consent to their marriage of their father, No. 43442 (1937)]
mother, surviving parent or guardian, or
persons having legal charge of them, in the c. Fraud
order mentioned
1. Manifested in writing by the interested Article 45(3) provides the third ground for a
party, who personally appears before voidable marriage, wherein consent to the
the proper local civil registrar, or marriage was obtained through fraud. The
2. In the form of an affidavit made in the party who was the victim of the fraud may,
presence of two witnesses and however, ratify the detect in the marriage by
attested before any official authorized voluntarily cohabiting with the party after
by law to administer oaths knowledge of the facts constituting the fraud.
b. Record such personal manifestation in
both applications for marriage license, and Art. 46, FC. Any of the following
the affidavit, if one is executed instead, circumstances shall constitute fraud referred
shall be attached to said applications. to in No. 3 of the preceding Article:
1. Non-disclosure of a previous
May be ratified by the party 18 or above but conviction by final judgment of the
below 21 upon free cohabitation upon reaching other party of a crime involving moral
21. turpitude;
2. Concealment by the wife of the fact
b. Insanity that at the time of marriage, she was
pregnant by a man other than her
Article 45(2) provides the second ground for a husband;
voidable marriage, which is a marriage entered 3. Concealment of sexually
into by an insane party or a person of unsound transmissible disease, regardless of
mind. its nature, existing at the time of
marriage; or
Test of Insanity: Whether the party at the time 4. Concealment of drug addiction,
of marriage was capable of understanding the habitual alcoholism or
nature and consequences of marriage itself homosexuality or lesbianism existing
[Sempio-Diy] at the time of marriage.
No other misrepresentation or deceit as to
Mental incapacity or insanity is a vice of character, health, rank, fortune or chastity
consent. It can be ratified by cohabitation after shall constitute such fraud as will give
insanity is cured or during a lucid interval. grounds for the action of annulment of
marriage.
Page 56 of 532
Note: The enumeration of the grounds for Concealment of sexually transmissible

annulment under Art. 46 for reasons of fraud or disease
vice of consent is exclusive. No other The STD that was concealed from the other
misrepresentation or deceit of character, spouse need not be serious and incurable.
health, rank, fortune or chastity shall constitute When the ground for annulment falls under
fraud. Article 46(3) vis-à-vis Article 45(3), the healthy
spouse through cohabitation can still ratify the
Non-disclosure of conviction of crime marriage because the defect is in the fact of the
involving moral turpitude concealment and not the gravity of the disease.
1. The crime must involve moral Hence, even if the STD is treatable, the fraud
turpitude, or “Conduct that is contrary gives the unsuspecting spouse the right to file
to justice, honesty, and morality” for annulment.
[Black’s Law Dictionary].
2. Must be convicted by final judgment Concealment of drug addiction, habitual
3. Conviction must be prior to marriage alcoholism, homosexuality or lesbianism
The non-disclosure of the drug addiction,
A crime involves moral turpitude when it habitual alcoholism, homosexuality or
pertains to an act of “baseness, vileness, lesbianism must have been done prior to the
depravity in the private and social duties which marriage. Recovery or rehabilitation from STD,
a man owes to his fellow man or to society in drug addiction, and habitual alcoholism will
general, contrary to the accepted and NOT bar action for annulment; the defect is not
customary rules of right and duty between man the disease, but the fraud which vitiated
and man.” [Teves v. COMELEC (2009)] consent. [Tolentino]
Concealment of pregnancy by another man It is the concealment of homosexuality, and not

Wife must have: homosexuality per se, that vitiates the consent
a. Concealed her pregnancy AND of the innocent party. Such concealment
b. Pregnancy is by another man other presupposes bad faith and intent to defraud the
than her husband other party in giving consent to the marriage.
[Almelor v. RTC, G.R. No. 179620 (2008)]
If the husband knew of pregnancy, the Any other misrepresentation
marriage cannot be annulled on the ground of Article 46 categorically states that any other
concealment. misrepresentation as to character, health, rank,
fortune, or chastity shall not be a manifestation
The woman was 7 months pregnant at the time of fraud sufficient to be a ground for annulment
she met petitioner. He cannot claim that the of marriage.
pregnancy was concealed from him and that he
was defrauded into marrying her. [Buccat v. The non-disclosure of a husband’s premarital
Buccat, G.R. No 47101 (1941)] relationship with another woman does not
constitute fraud. It was expressly stated in
But where the wife concealed the fact that she Article 46 that misrepresentation or deceit as to
was 4 months pregnant during the time of the one’s chastity shall not be a basis for an action
marriage and was “naturally plump,” Delizo to annul a marriage. [Anaya v. Palaroan
could hardly be expected to know, by mere (1970)]
looking, whether or not she was pregnant at the
time of the marriage. [Aquino v. Delizo, G.R. d. Force, Intimidation, Undue
No. L-15853 (1960)] Influence
Note: May be ratified upon free cohabitation Article 45(4) provides the fourth ground for a
after knowledge of fraud. voidable marriage, wherein the consent of one
Page 57 of 532
party was obtained by violence, intimidation, or To constitute fraud, the concealed impotency
undue influence. must exist at time of marriage, and be
continuous and incurable. If incapacity can be
Force must be one to prevent the party from remedied or is removable by operation, not
acting as a free agent; will be destroyed by annullable [Sarao v. Guevarra, G.R. No. 47063
fear/compulsion. (1940)].
There is violence when in order to wrest If the potent spouse was aware, it is implied
consent, serious or irresistible force is that he/she renounced copulation by
employed. [Art. 1335, CC] consenting to the marriage. [Tolentino]
Intimidation must be one as to compel the When both spouses are impotent, marriage
party by a reasonable and well-grounded cannot be annulled because neither spouse is
fear of an imminent and grave evil upon his aggrieved. [Sempio-Dy]
person/properties [Art. 1335, CC]
a. Degree of intimidation: age, sex, REFUSAL of wife to be examined DOES NOT
condition of person borne in mind PRESUME impotency [Jimenez v. Canizares,
b. Threat or intimidation as not to act as G.R. No. L-12790 (1960)].
free agent
f. Sexually-Transmissible
Note: A threat to enforce one’s claim through Disease Serious And
competent authority, if one’s claim is just and Incurable
legal, does not vitiate consent [Art. 1335, CC]
Affliction of STD is unknown to the other
There is undue influence when a person
spouse. The other spouse must also be free
takes improper advantage of his power or
from a similar STD. [Balane]
position over the will of another, depriving the
latter of a reasonable freedom of choice.
Requisites
Among the circumstances that define improper
a. Should exist at the time of the marriage
advantage are the (1) confidential, (2) family, b. Should be found serious
(3) spiritual, (4) professional or other
c. Should appear to be incurable
relationship between the parties, or the fact
that the person alleged to have been unduly
Not subject to ratification: cannot be ratified
influenced was suffering from (5) mental
or validated by cohabitation.
weakness, (6) ignorance, or (7) was in financial
or emotional distress. [Art. 1337, CC]
Who may file, prescription, ratification
Who
May be ratified upon voluntary cohabitation Ground Prescrip- Ratifica-
can file
after force, intimidation, or undue influence has (Art. tion (art. tion (Art.
(Art. 47,
ceased or disappeared. 45, FC) 47, FC) 45, FC)
FC)
Party 18 Within 5 Free
e. Impotency or above years after cohabitati
but attaining on of the
Impotency refers to the person’s physical Lack of below 21 age of 21 party who
condition where sexual intercourse with a Parenta entered
person of the opposite sex is impossible. It l Parent or the
Before
does not refer to mere sterility. Consen guardian marriage
party below
t who did without
21 reaches
Refers to the inability to copulate, not not give parental
21
procreate. consent consent
after
Page 58 of 532
attaining prescribe
age of 21 s
Free Cannot
cohabitati Within 5 be ratified
Sane Healthy
on of STD years after by action;
spouse party
Any time insane marriage prescribe
with no
before the party s
knowled
death of after
ge of the
either party insane Marriages not subject to ratification
other’s
party a. One spouse is incurably impotent
insanity
comes to b. One spouse has incurable STD
reason
Legal Reason: Public policy and health.
Insanity
guardian
of insane Note: Though these marriages cannot be
party
ratified, the petition for annulment will prescribe
During
within 5 years.
lucid
interval or
Insane after
Presence of Prosecutor
party regaining To prevent collusion between the parties,
sanity, and fabrication or suppression of evidence, the
before prosecuting attorney or fiscal shall appear on
death behalf of the State. [Art. 48, FC]
Free
cohabitati In a legal separation or annulment case, the
on of the prosecuting attorney must first rule out
Within 5 defraude collusion as a condition sine qua non for further
Injured
years after d party proceedings. A certification by the prosecutor
Fraud (defraud
discovery after that he was present during the hearing and
ed) party
of fraud having even cross-examined the plaintiff does not
full suffice to comply with the mandatory
knowledg requirement. [Corpuz v. Ochoterena, A.M. No.
e of fraud RTJ- 04-1861 (2004)]
Free
cohabitati Effects of Pending Decree of Annulment
on of the The Court shall provide for the support of
Within 5 injured spouses and support and custody of common
years after party children [Art. 49, FC]. In determining which
Force,
disappeara after the
Intimida parent should have custody of them, their
nce of force or
-tion, Injured moral and material welfare shall be given
force, intimidati
undue party paramount consideration. [Art. 49, FC; Luna
undue on or
influ- and Luna v. IAC, G.R. No. L-68374 (1985)]
influence, undue
ence
or influence
intimidation has Effects of Decree of Annulment
ceased or (Same as Decree of Nullity)
disappea The effects provided for by paragraphs (2), (3),
red (4) and (5) of Article 43 and by Article 44 shall
Within 5 Cannot also apply in the proper cases to marriages
Impoten Potent
years after be ratified which are declared void ab initio or annulled by
ce spouse
marriage by action; final judgment under Articles 40 and 45 [Art.
50(1), FC].
Page 59 of 532
A proper
Comparative Table on Void and Voidable interested
Marriages person
Who May A party to
Void Voidable (depending on
Challenge the
No validity the dates of
Validity marriage
from the time marriage and
of of filing of
Valid until
Nature performance; proceeding)
annulled
inexistent Susceptible
Does not
from the very to Prescribes
prescribe
beginning Prescription
Can be
Susceptible
Cannot be ratified, 6. Unmarried Cohabitation
to
ratified subject to 2
Ratification
exceptions Though there is no technical marital
Only co- partnership between persons living as husband
ACP or any
ownership and wife, without being lawfully married,
other
[Art. 147, FC] ; nevertheless there is between them an
property
No ACP or informal civil partnership which would entitle
Property regime in
CPG despite the parties to an equal interest in property
Relation accordance
having acquired by their joint efforts [Lesaca v.
with the
entered into a Lesaca, G.R. No. L-3605 (1952)]
marriage
marriage
settlement
settlement Property regimes for common-law marriages
Illegitimate are provided for in Art. 147 and 148 of the
Children
under Art. Family Code (Refer to “Property Regime of
are
165, FC (with Unions without Marriage” for further
legitimate if
Status of Arts. 36 and discussion).
conceived
Children 53, FC as
or born
exceptions
prior to the
under Art. 54,
FC)
decree D. LEGAL SEPARATION
May be
attacked
directly or An action for legal separation involves nothing
collaterally, more than the bed-and-board separation of the
but for the spouses. It is purely personal in nature. [Lapuz
Cannot be Sy v. Eufenio, G.R. No. L-30977 (1972)]
purpose of
attacked
remarriage, a
collaterally 1. Grounds for Legal Separation
judicial
How declaration of [Art. 55, FC]:
Cannot be
Impugned nullity is
impugned
required [Art. a. 1st Ground: Repeated physical
after death
40, FC] violence or grossly abusive conduct
of one of
the parties directed against the petitioner, a
Can be common child, or a child of the
impugned petitioner;
even after
death of the For the purposes of Art. 55, the term “child”
parties shall include a child by nature or by adoption.
Page 60 of 532
Acts of Violence according to the “Anti- threat of force, physical harm, or through
Violence Against Women and Their intimidation directed against the woman or
Children Act of 2004” [R.A. No. 9262] (as her child or her/his immediate family;
grounds for legal separation under Art. 8. Engaging in purposeful, knowing, or
55(1), FC) reckless conduct, personally or through
1. Causing physical harm to the woman or her another, that alarms or causes substantial
child; emotional or psychological distress to the
2. Threatening to cause the woman or her woman or her child. This shall include, but
child physical harm; not be limited to, the following acts:
3. Attempting to cause the woman or her child i. Stalking or following the woman or
physical harm; her child in public or private places;
4. Placing the woman or her child in fear of ii. Peering in the window or lingering
imminent physical harm; outside the residence of the
5. Attempting to compel or compelling the woman or her child;
woman or her child to engage in conduct iii. Entering or remaining in the
which the woman or her child has the right dwelling or on the property of the
to desist from or desist from conduct which woman or her child against her/his
the woman or her child has the right to will;
engage in, or attempting to restrict or iv. Destroying the property and
restricting the woman's or her child's personal belongings or inflicting
freedom of movement or conduct by force harm to animals or pets of the
or threat of force, physical or other harm or woman or her child; and
threat of physical or other harm, or v. Engaging in any form of
intimidation directed against the woman or harassment or violence.
child. This shall include, but not limited to, 9. Causing mental or emotional anguish,
the following acts committed with the public ridicule or humiliation to the woman
purpose or effect of controlling or restricting or her child, including, but not limited to,
the woman's or her child's movement or repeated verbal and emotional abuse, and
conduct: denial of financial support or custody of
a. Threatening to deprive or actually minor children of access to the woman's
depriving the woman or her child of child/children.
custody to her/his family;
b. Depriving or threatening to deprive the b. 2nd Ground: Physical violence or
woman or her children of financial moral pressure to compel the
support legally due her or her family, or petitioner to change religious or
deliberately providing the woman's political affiliation;
children insufficient financial support;
c. Depriving or threatening to deprive the The law does not require the violence or moral
woman or her child of a legal right; pressure to be repeated. A single act of
d. Preventing the woman in engaging in violence is sufficient to be a ground since
any legitimate profession, occupation, religious and political belief are human rights.
business or activity or controlling the [Tolentino]
victim's own money or properties, or
solely controlling the conjugal or c. 3rd Ground: Attempt of respondent
common money, or properties; to corrupt or induce the petitioner, a
6. Inflicting or threatening to inflict physical common child, or a child of the
harm on oneself for the purpose of petitioner, to engage in prostitution,
controlling her actions or decisions; or connivance in such corruption or
7. Causing or attempting to cause the woman inducement;
or her child to engage in any sexual activity
which does not constitute rape, by force or
Page 61 of 532
Only the respondent spouse must be guilty of h. 8th Ground: Sexual infidelity or
corrupting or inducing the petitioner, a common perversion;
child or a child of the petitioner to engage in
prostitution. Adultery is not a continuing crime; it is
consummated at every moment of carnal
d. 4th Ground: Final judgment knowledge. Thus, every sexual act is a ground
sentencing the respondent to for legal separation. [People v. Zapata and
imprisonment of more than six Bondoc, G.R. No. L-3047 (1951)]
years, even if pardoned;
A civil action for legal separation based on
e. 5th Ground: Drug addiction or concubinage may proceed ahead of, or
habitual alcoholism of the simultaneously with, a criminal action for
respondent concubinage; conviction is not a prerequisite
[Gandionco v. Penaranda, G.R. No. 79284
f. 6th Ground: Lesbianism or (1987)].
homosexuality of the respondent;
i. 9th Ground: Attempt by the
To constitute grounds for legal separation, the respondent against the life of the
cause (i.e., drug addiction, habitual alcoholism, petitioner; or
lesbianism or homosexuality) does not have to
be existing at the time of the celebration of j. 10th Ground: Abandonment of
marriage; it is enough that it arises during the petitioner by respondent without
existence of the marriage. Otherwise, it will be justifiable cause for more than one
a ground for annulment under Art. 46(4), FC in year.
relation to Art. 45(3), FC.
Abandonment is not mere physical
g. 7th Ground: Contracting by the estrangement but also financial and moral
respondent of a subsequent desertion. There must be an absolute
bigamous marriage, whether in the cessation of marital relations, duties, and rights
Philippines or abroad; with the intention of perpetual separation. [Dela
Cruz. v. Dela Cruz, G.R. No. L-19565 (1968)]
The elements for bigamy to be prosecuted in
the Philippines are: To be a ground for legal separation,
1. Offender has been legally married abandonment must be without just cause.
2. The marriage has not been legally [Ong Eng Kiam v. Ong, G.R. No. 153206
dissolved or, in case his or her (2006)]
spouse is absent, the absent
spouse could not yet be presumed 2. Defenses [Art. 56, FC]:
dead
3. Offender contracts a subsequent a. Condonation by aggrieved party –
marriage after the commission of the offense;
4. Subsequent marriage has all the may be expressed or implied.
essential requisites for validity,
except legal capacity. [Capili v. Condonation may be given expressly or
People, G.R. No. 183805 (2013)] impliedly. An example of an implied
condonation is when a husband repeatedly has
As a ground for legal separation however, intercourse with the wife despite the wife’s
there is no need for a criminal conviction for cruelty. “Although he did not wish it, [he did it]
bigamy. eventually for the sake of peace.” [Willan v.
Willan, G.R. No. L-13553 (1960)]
Page 62 of 532
b. Consent by aggrieved party to the f. Prescription of action for legal

commission of the offense – before separation
the commission of the offense; may
be express (e.g. written agreement,
Art. 57, FC. An action for legal separation
[Matubis v. Praxedes, G.R. No. L-
shall be filed within five years from the time
11766 (1960)] or implied
of the occurrence of the cause.
A written agreement between the spouses,
which provided that they were “free to get any g. Reconciliation of parties during
mate and live with as husband and wife without pendency of action [Art. 66(1), FC]
any interference by any of us, nor either of us
can prosecute the other for adultery or Art. 65, FC. If the spouses should reconcile,
concubinage or any other crime or suit arising a corresponding joint manifestation under
from our separation” amounted to express oath duly signed by them shall be filed with
condonation of and consent to the adulterous the court in the same proceeding for legal
acts of wife. [Matubis v. Praxedes, G.R. No. L- separation.
11766 (1960)]
The non-interference of the husband with Art 66, FC. The reconciliation referred to in
regard to the amorous relations between his the preceding Articles shall have the
wife and Ramos constitutes consent. [People following consequences:
v. Sensano and Ramos, G.R. No. L-37720
(1933)] 1. The legal separation proceedings, if still
pending, shall thereby be terminated at
c. Connivance between parties in the whatever stage; and
commission of the offense
2. The final decree of legal separation shall
Connivance is present when the husband be set aside, but the separation of property
throws no protection around his wife nor warns and any forfeiture of the share of the guilty
her against intimacy with the driver. A husband spouse already effected shall subsist, unless
who had reliable reports for two months that the spouses agree to revive their former
gave him reason to suspect that his wife was property regime.
having an affair with her driver yet did nothing
to keep the latter away is guilty of connivance. The court’s order containing the foregoing
[Sargent v. Sargent, 114 A. 428 (1920)] shall be recorded in the proper civil
registries.
d. Mutual guilt or recrimination
between spouses in the commission h. Death of either party during
of any ground for legal separation pendency of action
e. Collusion between parties to obtain Death of plaintiff before decree of legal

decree of legal separation separation abates the action. There is no more
need for legal separation because the marriage
Collusion in matrimonial cases is the act of is already dissolved by the death of one of the
married persons in procuring a divorce by parties. [Lapuz Sy v. Eufemio, G.R. No. L-
mutual consent, whether by preconcerted 30977 (1972)].
commission by one of a matrimonial offense, or
by failure, in pursuance of agreement, to
defend divorce proceedings. [Brown v.
Yambao, G.R. No. L-10699 (1957)]
Page 63 of 532
3. Procedure The case should be heard as soon as possible

by the court.
Who may file the action
A petition for legal separation may be filed only Contents and Form of the Petition [Sec. 2,
by the husband or the wife. [Sec. 2, A.M. No. A.M. No. 02-11-11-SC]
02-11- 11-SC (Rule on Legal Separation)] a. Allege the complete facts constituting the
cause of action;
Where to file the action b. Names and ages of the common children
The petition shall be filed in the Family Court of of the parties, specify the regime governing
the province or city where the petitioner or the their property relations, the properties
respondent has been residing for at least six involved, and creditors, if any;
months prior to the date of filing “or in the case c. Be verified and accompanied by a
of a non-resident respondent, where he may be certification against forum shoppin;
found in the Philippines, at the election of the d. Be filed in six copies.
petitioner.” [Sec. 2, A.M. No. 02-11-11-SC]
4. Effects of filing petition
When to File Action
An action for legal separation shall be filed a. The spouses are entitled to live separately,
within five years from the time of the but the marital bond is not severed. [Art. 61
occurrence of the cause. [Art. 57, FC and A.M. (1), FC]
No. 02-11-11-SC] b. Administration of community or conjugal
property – If there is no written agreement
Cooling-off and Reconciliation Effects between the parties, the court shall
An action for legal separation shall in no case designate one of them or a third person to
be tried before six months shall have elapsed administer the ACP or CPG. [Art. 61, par.
since the filing of the petition. [Art. 58, FC] 2, FC]
Actions cannot be tried unless the court has Note: No motion to dismiss the petition shall be
attempted to reconcile the spouses, and allowed except on the ground of lack of
determined that despite such efforts, jurisdiction over the subject matter or over the
reconciliation is highly improbable. [Art. 59] parties; provided, however, that any other
ground that might warrant a dismissal of the
N.B. This is without prejudice to judicial case may be raised as an affirmative defense
determination of custody of children, alimony, in an answer. [Sec. 4, A.M. No. 02-11-11-SC]
and support pendente lite.
5. Effects of pendency
Courts can still resolve other issues, pending
the waiting period or cooling off period. In The Court shall provide for: [Art. 62, cf. Art. 49,
resolving other issues, courts should try not to FC]
touch, as much as possible, on the main issue a. Support of spouses
(i.e. adultery if that is the ground used). b. Custody of children: The court shall give
However, Court must still receive evidence if custody of children to one of them, if there
just to settle incidental issues of support and is no written agreement between the
custody. [Araneta v. Concepcion, G.R. No. L- spouses.
9667 (1956)] c. Visitation rights of the other spouse
N.B. This provision of the Family Code

dictating a mandatory 6-month cooling-off
period does not apply in cases where violence,
as used in R.A. No. 9262 (Anti-Violence
Against Women and their Children), is alleged.
Page 64 of 532
6. Effects of decree of legal 7. Reconciliation

separation
Art. 65, FC. If the spouses should reconcile,
a. The spouses can live separately [Art. 63, a corresponding joint manifestation under
FC] but the marriage bonds are not oath duly signed by them shall be filed with
severed. the court in the same proceeding for legal
b. The ACP or CPG shall be dissolved and separation.
liquidated, and the share of the guilty
spouse shall be forfeited in favor of the
Effects of Reconciliation:
common children, previous children, or
a. Proceedings for legal separation shall be
innocent spouse, in that order [Art. 63, FC;
terminated at whatever stage [Art. 66(1),
cf. Art. 43(2), FC]
FC].
c. Custody of the minor children shall be
b. If there is a final decree of legal separation,
awarded to the innocent spouse [Art. 63,
it shall be set aside [Art. 66(2), FC].
FC; cf. Art 213, FC]
c. The separation of property and forfeiture of
d. Guilty spouse shall be disqualified from
share of guilty spouse shall subsist, unless
inheriting from the innocent spouse by
the spouses agree to revive their former
intestate succession. The provisions in
property regime or to institute another
favor of the guilty party in the will of the
property regime [Art. 66 cf. Art. 67, FC].
innocent spouse shall also be revoked by
d. Joint custody of children is restored.
operation of law. [Art. 63, FC]
e. The right to intestate succession by guilty
e. Donations in favor of the guilty spouse may
spouse from innocent spouse is restored.
be revoked [Art. 64, FC] but this action
f. The right to testamentary succession
prescribes after 5 years from the decree of
depends on the will of the innocent spouse.
legal separation.
f. Innocent spouse may also revoke
designation of guilty spouse as beneficiary 8. Effect of death of one of the
in an Insurance policy, even if such parties
stipulations are irrevocable. [Art. 64. FC; cf.
Sec. 11, P.D. 612]
The death of either party to a legal separation
g. Obligation for mutual support ceases, but
proceeding, before final decree, abates the
the court may order the guilty spouse to
action. There is no more need for legal
support the innocent spouse. [Art. 198, FC]
separation because the marriage is already
h. The wife shall continue to use the surname
dissolved by the death of one of the parties. An
of the husband even after the decree for
action for legal separation is also purely
legal separation. [Laperal v. Republic, G.R.
personal between the spouses. [Lapuz Sy v.
No. L-18008 (1992)]
Eufemio]
Page 65 of 532
Void Marriages, Voidable Marriages and Legal Separation

Void Marriages Voidable Marriages Legal Separation
Grounds 1. Absence of essential Defect in any of the Grounds not relating to any
or formal requisites essential requisites: of the essential or formal
a. One is a minor 1. Lack of parental requisites:
b. No authority to consent, 1. Repeated physical
marry 2. Insanity, violence
c. No valid 3. Fraud, 2. Pressure to compel to
marriage 4. Force, change religious/political
license intimidation, affiliation
d. Bigamous and undue influence, 3. Corruption/ inducement
polygamous 5. Impotence, to engage in prostitution
marriages 6. Serious and 4. Final judgment with
e. Mistake of incurable STD sentence of more than 6
identity years
f. Void 5. Drug addiction/ habitual
subsequent alcoholism
marriages 6. Homosexuality/
2. Psychological lesbianism
incapacity 7. Bigamous marriage
3. Incestuous marriages 8. Sexual infidelity or
4. Marriages against perversion
public policy 9. Attempts against the life
5. Subsequent of petitioner
marriages which did 10. Abandonment without
not comply with Art. just cause for more than
52 1 year
Defenses None 1. Condonation

2. Consent
3. Connivance
4. Collusion
5. Recrimination
6. Prescription
Prescription No Prescription 1. Lack of parental Within 5 years from the

consent occurrence of the cause
a. Spouses -
5 years
after
turning 21
b. Parents -
before the
spouses
turn 21
2. Insanity
a. Insane
spouse -
during
Page 66 of 532
lucid
intervals
b. Sane
spouse/
guardian -
lifetime
3. Fraud - 5 years
after the discovery
of the fraud
4. Force,
intimidation,
undue influence -
5 years after
cessation
5. Impotence/STD -
5 years from
marriage
Who can According to A.M. No. 02- Only the spouses Only the spouses (cannot
file 11-10-SC: (cannot survive the survive the death of the
1. Before March 18, death of the plaintiff) plaintiff)
2003 (petition for
nullity or celebration
of marriage) - any
party
2. On and after March
18, 2003 (petition for
nullity or celebration
of marriage) - only the
spouses
Effects of In the absence of adequate provisions in a written 1. Live separately

Pendency agreement: 2. Designate either of them
1. Support of spouses or a third person as
2. Support and custody of children administrator of property
3. Visitation rights 3. Support of spouses
4. Support and custody of
children
5. Visitation rights
Effects of 1. Properties [Art. 147 - 1. Properties [Art. 50, 1. Properties [Art. 63(2),
Decree 148, FC] FC] FC]
a. Art. 147 a. ACP/CPG a. Dissolution and
(equal shares) dissolved, Liquidation of
governs share ACP/CPG
property forfeited to
relations of heirs if bad 2. Support and Custody
faith [Art. 213, FC]
Page 67 of 532
void b. Donations a. Parental authority

marriages valid, to the parent
b. Art. 148 (in except if designated by
proportion) bad faith Court after all
governs c. Insurance relevant
property may be consideration
relations of revoked if b. Tender years
bigamous bad faith presumption for
adulterous d. No Child under 7 y.o.
relationships succession [Art 213(2), FC]
for spouse
2. Status of Children in bad faith 3. Inheritance, Donations
[Art. 54, FC] and Designation in
General Rule: Conceived 2. Status of Children Insurance Policies [Sec.
or born before the [Art. 54, FC] 22, rules on Legal
judgment of absolute a. Conceived Separation]
nullity, illegitimate or born
before 4. Continued Use of
Exceptions: Conceived judgment, Surname [Art. 372, CC]
or born legitimate.
a. Before the
judgment of 3. Continued Use of
annulment; Surname [Art.
b. Before the 371, CC]
judgment of a. Dependent
absolute on her
nullity under being the
Art. 36 innocent
(Psychological or guilty
Incapacity) party
c. Of the
subsequent
marriage
under Art. 53
(Failure to
Record the
Decree of
Nullity of
Annulment);
d. Prior to the
termination of
the
subsequent
marriage
under Art. 42
(when the
absent
spouse files
an affidavit of
reappearance)
Page 68 of 532
3. Support
E. RIGHTS AND OBLIGATIONS The spouses are jointly responsible for the
BETWEEN HUSBAND AND WIFE support of the family. The expenses for such
support and other conjugal properties shall be
These rights and duties are not subject to paid:
stipulation between the spouses; and though a. From the conjugal property;
they may voluntarily agree to any change in b. If none, income or the fruits of their
their personal relations, this agreement will be separate properties;
void and have no legal effect. c. If none, from their separate properties,
wherein they shall be liable in proportion to
1. Live Together their properties [Art. 70, FC].
The right to live together refers to the right of
consortium which is not susceptible of precise Support is not just limited to financial support -
or complete definition but, broadly speaking, includes emotional and moral support.
companionship, love, affection, comfort,
mutual services, sexual intercourse—all In case of a de facto separation, if it is proved
belonging to the marriage state—taken that the husband and wife were still living
together make up what we refer to as together at the time of his death, it would be
consortium. safe to presume that she was dependent on
the husband for support, unless it is shown that
she is capable of providing for herself [SSS v.
Art. 68, FC. The husband and wife are Aguas, G.R. No. 165546 (2006)].
obliged to live together, observe mutual love,
respect and fidelity, and render mutual help 4. Management of Family Life
and support.
Art. 71, FC. The management of the
household shall be the right and duty of both
Exception: One spouse living abroad or there spouses. The expenses for such
are valid and compelling reasons [Art. 69(2), management shall be paid in accordance
FC] - at the discretion of the court. with the provisions of Article 70.
Exception to the Exception: Incompatibility

with the solidarity of the family [Art. 69(2), FC]. 5. Effect of Neglect of Duty
Art. 72, FC. When one of the spouses
If the wife abandons the family domicile with neglects his or her duties or commits acts
justifiable cause (i.e. being forced to perform which tend to bring danger, dishonor or injury
lewd sexual acts), the husband’s obligation to to the other or to the family, the aggrieved
support her is not terminated. The law will not party may apply to the court for relief.
permit the husband to terminate the obligation
to support his wife by his own wrongful acts
Note: Injury contemplated here is physical,
driving the wife to seek protection in her
moral, emotional or psychological, not
parents’ home [Goitia v. Campos Rueda, G.R.
financial.
No. 11263 (1916)].
6. Exercise of Profession
2. Family Domicile
Either spouse may exercise any legitimate
Art. 69(1), FC. The husband and wife shall profession, without need for consent of the
fix the family domicile. In case of other [Art. 73, FC].
disagreement, the court shall decide.
The other spouse may only object on valid,
serious and moral grounds.
Page 69 of 532
In case of disagreement, the Court shall decide Note: From the foregoing provisions, it can be
whether: gleaned that a woman is not mandated by law
a. The objection is proper, and to adopt her husband’s surname after
b. Benefit has accrued to the family marriage. Art. 370, CC is merely directory,
i. If benefit accrued before the objection: since it provides that a woman may choose any
enforce against community property of the options provided.
ii. If benefit accrued after the objection:
enforce against separate property of
spouse who has not obtained consent F. PROPERTY RELATIONS
[Art. 73, FC, as amended by RA OF THE SPOUSES
10572].
7. Use of Surname 1. Marriage settlements
For Married Women Art. 74, FC. The property relationship

A woman may use [Art. 370, CC]: between husband and wife shall be
1. Her maiden first name and surname and governed in the following order:
add her husband’s surname; or 1. By marriage settlements executed
2. Her maiden first name and her husband’s before the marriage;
surname; or 2. By the provisions of this Code; and
3. Her husband’s full name, but prefixing a 3. By the local custom.
word indicating that she is his wife, such as
Mrs. Requisites for Validity [Art. 75, FC]
1. Future spouses agree upon the regime of
For Widows absolute community, conjugal partnership
A widow may use the deceased husband’s of gains, complete separation of property,
surname as though he were still living, in or any other regime.
accordance with Art. 370 [Art. 373, CC]. 2. In the absence of marriage settlement, or
when the regime agreed upon is void, the
In case of Annulment [Art. 371, CC] system of absolute community property as
1. If the wife is the guilty party, she shall established in this Code shall govern.
resume her maiden name and surname
2. If the wife is innocent Requirements for marriage settlements and
a. She may resume her maiden name any modification thereof [Art. 77, FC]
and surname; or 1. Must be made in writing
b. She may choose to continue employing 2. Signed by the parties
her former husband’s surname, unless: 3. Executed before the marriage celebration
i. The court decrees otherwise; or 4. If executed by a person below 21 years,
ii. She or the former husband is valid only when persons required to give
married again to another person. consent to the marriage (father, mother, or
guardian, respectively) are made parties to
For Legally Separated Spouses the agreement [Art. 78, FC]
The wife shall continue using her name and
surname employed before the legal separation The parties have the freedom to stipulate
[Art. 372, CC]. regarding their property relations in their
marriage settlements in which the lex
In case of absolute divorce, the effect of intentionis of the parties governs the contract.
divorce is more akin to the death of the spouse When the couple agrees on a property regime
where the widow can continue using the in their marriage settlement, the provisions of
surname or be referred as Mrs. of her husband the Code are merely suppletory.
[Tolentino v. CA, G.R. No. L-41427 (1988)].
Page 70 of 532
govern the property relations of the subsequent

When modifications can be made
marriage [Art. 103(3), FC]
For modification to be valid, it must be

2. Donations by reason of
determined before the celebration of
marriage [Art. 76, FC] marriage (Donations Propter
Nuptias)
Upon finality of legal separation, the property
regime is dissolved and liquidated, subject to Art. 82, FC. Donations by reason of marriage
forfeiture for the guilty spouse [Art, 63(2), are those which are made before its
FC] celebration, in consideration of the same, and
in favor of one or both of the future spouses.
In case of reconciliation, the separation of
property subsists unless the parties agree to Donations propter nuptias are made in
revive their former property regime. [Arts. 66 consideration of marriage. There can be a valid
and 67, FC] donation even if the marriage never took place,
but the absence of marriage is a ground for the
For judicial separation of property, the
revocation of the donation. [Solis v. Barroso,
following are sufficient causes:
G.R. No. 27939 (1928)]
1. The spouse of the petitioner has
been sentenced to a penalty which
Donations propter nuptias are without onerous
carries with it civil interdiction;
consideration, marriage being merely the
occasion or motive for the donation, not its
been judicially declared an
cause. Being liberalities, they remain subject to
absentee;
reduction for inofficiousness upon the donor’s
3. Loss of parental authority of the
death, if they should infringe the legitime of a
spouse of petitioner has been
forced heir. [Mateo v. Lagua, G.R. No. L-26270
decreed by the court;
(1969)]
abandoned or failed to comply with
Requisites of donation propter nuptias
his or her obligations to the family
1. Made before the celebration of marriage
5. That the spouse granted the power
2. Made in consideration of marriage
of administration in the marriage
3. Made in favor of one or both of the future
settlements has abused that power;
spouses
and
4. In a public document and not merely
6. That at the time of the petition, the
privately stipulated [Solis v. Barroso, supra]
spouses have been separated in fact
for at least one year and
Who may donate
reconciliation is highly improbable.
1. Spouses to each other
2. Parents of one or both spouses
N.B. Marriage settlements are considered 3. Third persons to either or both spouses
accessory to the marriage, therefore as per Art.
81, stipulations in consideration of future Donations excluded are:
marriage and donations will be void if the 1. Ordinary wedding gifts given after the
marriage does not take place. celebration of marriage
2. Donations in favor of future spouses made
Should the surviving spouse contract a before marriage but not in consideration
subsequent marriage without compliance with thereof
the foregoing requirements, a mandatory 3. Donations made in favor of persons other
regime of complete separation of property shall than the spouses even if founded on the
intended marriage
Page 71 of 532
Distinguished from Ordinary Donations

B. Void marriage
Donations propter Ordinary Donations
nuptias General rule: There must be a judicial
declaration of nullity for the void marriage.
Does not require Express acceptance
express acceptance required 1. Art 40, in If donee- If both
rel. to Art spouse parties
May include future Cannot include
52 and 53 contracted acted in
property (subject to future property
(subseque the good
formalities of wills)
nt second faith,
If present property is No limit to donation marriage marriage revocatio
donated and of present property before in bad n will be
property regime is provided legitimes securing faith by
not absolute are not impaired judicial (knowing donor’s
community, limited to declaratio that it was choice;
1/5 [Art. 84, FC] n of nullity) void), within 5
donations years
Grounds for Grounds for in favor of from date
revocation found in revocation found in the of finality
Art. 86, FC donation laws CC second of the
provisions marriage judicial
are declaratio
revoked n of
Donations of property subject to by nullity.
encumbrances operation
a. Are considered valid. of law.
b. In case of foreclosure:
i. If property value < obligation, 2. Art 44 (bad If either or
donee shall not be liable for the faith in both
deficiency securing spouses in
ii. If property value > obligation, declaratio the
donee shall be entitled to the n of subseque
excess [Art. 85, FC] presumpti nt
ve death) marriage
Grounds for Revocation of Donation acted in
Propter Nuptias [Art. 86, FC] bad faith
A. Marriage not celebrated (knowing
that the
person
Donation Revoked by operation of was still
contained in law alive),
marriage donations
settlement Does not prescribe in favor of
the
Donation Donor’s choice
subseque
contained in a
nt
separate Prescribes within 5 marriage
instrument years from supposed is revoked
date of marriage by
Page 72 of 532
operation G. Acts of ingratitude [Art. 765, CC]

of law.
General rule: Revocation is by donor’s
3. All other Donor’s
choice and done within 1 year from
void choice,
knowledge of fact of ingratitude with donor
marriages regardless
being capable of bringing suit.
of
good/bad
faith of the 3. Void donations by the
donee.
spouses
C. No consent of parents or guardian Donations Before Marriage

General rule: Future spouses who agree upon
a regime other than ACP cannot donate to
General rule: Does not require final decree each other more than 1/5 of their present
of annulment property (excess shall be considered void).
[Art. 84, FC]
Revocation will be by donor’s choice and
done within 5 years from discovery that
Reason for excluding ACP: All property will
consent was not obtained
again be shared by both spouses after the
marriage.
D. Other cause of annulment
Exception: The limit of 1/5 only applies when
the donation is contained in the marriage
Revoked by operation of law if donee is the settlements. If it is contained in another
guilty spouse who acted in bad faith instrument, the general rules on inofficious
donations shall apply.
E. No consent of parents or guardian Donations During Marriage

General rule: Spouses cannot donate to each
General rule: Revocation is by donor’s other, directly or indirectly; donations made by
choice and done within 5 years from finality spouses to each other during the marriage are
of decree of legal separation void. [Art. 87, FC] These donations refer to
donations inter vivos. [Tolentino]
Exception: If cause is adultery or
concubinage, revoked by operation of law Exception: Moderate gifts on the occasion of
any family rejoicing.
F. Resolutory condition complied A spouse cannot donate to persons which the

with other spouse may inherit from as it constitutes
an indirect donation. [Nazareno v. Birog, 45
General rule: Revocation is by donor’s O.G. No. 5 (1947)]
choice and done within 5 years from finality
of decree of legal separation Donations Between Common-law Spouses
The donation between common-law spouses
Exception: If the other spouse is the donor, falls within the provision prohibiting donations
action does not prescribe between spouses during marriage.
[Matabuena v. Cervantes, G.R. No. L-2877
(1971)]
Page 73 of 532
In order to fall under the prohibition, it must be preceding articles in consideration of a future
proved that they were living in a common-law marriage, including donations between the
relationship at the time of the donation. prospective spouses made therein, shall be
[Sumbad v. CA, G.R. No. 106060 (1999)] rendered void if the marriage does not take
place. However, stipulations that do not
4. Absolute Community of depend upon the celebration of the marriages
shall be valid.
Property
Waiver Not Allowed
Definition General Rule: No waiver of rights, shares and
The community property consists of all the effects of the absolute community of property
property owned by the spouses at the time of during the marriage can be made
the celebration of the marriage, and those
either one or both of them acquired during the Exception: In case of judicial separation of
marriage. There is a presumption provided in property.
the Family Code that properties acquired
during the marriage belong to the community, When the waiver takes place upon a judicial
unless it is proved that it is one of those separation of property, or after the marriage
excluded therefrom. [Tolentino] has been dissolved or annulled, the same shall
appear in a public instrument and shall be
Governing law recorded as provided in Article 77. The
Art. 80, FC. In absence of a contrary stipulation creditors of the spouse who made such waiver
in a marriage settlement, the property relations may petition the court to rescind the waiver to
of the spouses shall be governed by Philippine the extent of the amount sufficient to cover the
laws, regardless of the place of the celebration amount of their credits. [Art. 89, FC.]
of the marriage and their residence.
Provisions on Co-ownership Apply
By the Nationality Rule [Art. 15, CC], the rule The provisions on co-ownership shall apply to
that Absolute Community Property (ACP) is the the absolute community of property between
default mode of property relations absent any the spouses in all matters not provided for in
marriage settlement applies to all Filipinos, this Chapter. [Art. 90, FC]
regardless of the place of the marriage and
their residence. [N.B.] N.B. The creditors of the spouse who made
such waiver may petition the court to rescind
Exceptions the waiver to the extent of the amount sufficient
1. Where both spouses are aliens to cover the amount of their credits.
2. With respect to the extrinsic validity of
contracts affecting property not
situated in the Philippines and 5. Conjugal Partnership of
executed in the country where the Gains
property is located
3. With respect to the extrinsic validity of This property regime was formerly the default
contracts entered into in the Philippines regime under the CC.
but affecting property situated in a
foreign country whose laws require In this regime, the spouses retain ownership of
different formalities for its extrinsic their separate property. However, the spouses
validity [Art. 80, FC] also place in a common fund the proceeds,
products, fruits and income of their separate
If marriage does not take place property and those acquired by either or both
Art. 81, FC. Everything stipulated in the spouses through their efforts or by chance.
settlements or contracts referred to in the
Page 74 of 532
The presumption applies that all properties system, the husband’s capital property, the
acquired during the marriage belong to the wife’s paraphernal property, and the conjugal
CPG. There are 3 distinct patrimonies in this property.
Comparison of ACP and CPG

Absolute Community of Conjugal Partnership of Gains (CPG)
Property (ACP)
When it At the precise moment of the For marriages after the Family Code, CPG
commences celebration of the marriage [Art. 88, becomes the property regime only if agreed
FC] to by the parties through a marriage
settlement.
What it All the properties owned by the Proceeds, products, fruits, and income of
consists of spouses at the time of the their separate properties
celebration of the marriage or
acquired thereafter [Art. 91, FC] Everything acquired by them during
marriage through their own efforts
Under the ACP, spouses cannot Everything acquired through their efforts or
exclude specific properties from by chance.
the regime unless done in
settlement.
Winnings from gambling shall Specific properties [Art. 117, FC]

accrue to the community property 1. Acquired by onerous title during
but obligations from gambling shall the marriage at the expense of the
not. [Art. 95, FC] Common Fund;
2. Acquired through the labor,
Property acquired during marriage industry, work, or profession of
is presumed to have been obtained either or both spouses
through joint efforts of parties, even 3. Fruits from common property and
though one did not actually net fruits of the exclusive property of
participate in the acquisition. This each spouse
is true for a party whose efforts 4. Share of either spouse in hidden
consisted in the care and treasure, whether as finder or
maintenance of the family owner of property where treasure
household. Such is regarded as was found
contributions to the acquisition of 5. Acquired through occupation such
common property by one who has as fishing or hunting
no salary, income, work or 6. Livestock existing at dissolution of
industry. [Ocampo v. Ocampo, partnership in excess of what is
G.R. No. 198908 (2015)] brought by either spouse to the
marriage
7. Acquired by chance, such as
winnings from gambling or betting
Moral damages arising from a contract paid

from the CPG [Zulueta v. Pan American
World Airways, G.R. No. L-28589 (1973)]
Page 75 of 532
Loans contracted during the marriage are

conjugal, and so is any property acquired
therefrom [Mendoza v. Reyes, G.R. No. L-
31625 (1983)]
Property purchased by installment, paid

partly with conjugal funds and partly with
exclusive funds, if full ownership was
vested during the marriage; the CPG shall
reimburse the owner-spouse [Art. 118, FC]
If a winning ticket is bought by conjugal

funds, the prize is conjugal (otherwise, the
prize is exclusive property of the spouse
who owns the ticket)
Improvement on exclusive property: if

original value is less than new value (where
new value = value of land + value of
improvements + net change in value), then
land becomes conjugal property, subject to
the reimbursement of the value of the
property of the owner-spouse at the
dissolution of the CPG
Property belonging to one spouse

converted into another kind totally different
in nature from its original form during
marriage becomes conjugal in the absence
of proof that the expenses of the conversion
were exclusively for the account of the
original owner-spouse, subject to
reimbursement of the value of the original
property from the conjugal partnership
What remains Properties acquired before the Property brought into the marriage by
exclusive marriage, for those with legitimate each spouse as his/her own
property [Art. descendants by a former
92, FC] marriage (to protect rights of
children by a former marriage)
Properties acquired during the Properties acquired during the marriage

marriage by a gratuitous title, i.e. by a gratuitous title, i.e. donation,
donation, inheritance by testate inheritance by testate and intestate
and intestate succession, including succession (but the fruits of such properties
the fruits of such properties form part of the CPG)
Except: When expressly provided Except: When expressly provided by the

by the donor or testator that the donor or testator that the property shall form
property shall form part of the ACP part of the CPG
Page 76 of 532
Properties for personal use i.e. Property acquired by right of redemption, by

wearing apparel, toilet articles, barter, or by exchange with property
eyeglasses belonging to either spouse
Except: Plata v. Yatco, G.R. No. L-20825 (1964):

1. Luxurious jewelry and Plata purchased property when she was
those of special value that single. When married, she and her husband
increase in value over time Bergosa co-signed a mortgage on the
(partakes of the nature of property. Upon foreclosure, Bergosa was
an investment) sued for illegal detainer. A writ of execution
on the property was carried out but Plata
refused to leave the premises. SC ruled that
Plata cannot be held in contempt. Property
is not conjugal.
Her husband signing as co-mortgagor does

not convert it to CPG. She could ignore
execution because the decision was for her
husband alone.
Property purchased with exclusive money

of either spouse
Property purchased by installment, paid

partly with conjugal funds and partly with
exclusive funds, if full ownership was
vested before the marriage [Art. 118, FC].
Even if the installment is completed after
the marriage, the property is exclusive if
ownership was vested in one spouse before
the marriage [Lorenzo v. Nicolas, G.R. No.
L-4085 (1952)].
Presumption All properties acquired during the All property acquired during the marriage,
marriage form part of the ACP, whether made, contracted, or registered in
unless it be proven that they are the name of one spouse, are presumed
excluded. [Art. 93, FC] conjugal unless the contrary is proven. [Art.
116, FC]
Charges and Art. 94, 121-123 FC

Obligations 1. Support of the following:
a. Spouses;
b. Common children;
c. Legitimate children of previous marriage;
d. Illegitimate children – follow the provisions on Support; common
property liable in case of absence or insufficiency of the exclusive
property of the debtor-spouse, but the payment shall be
considered as an advance on the share of the debtor-spouse.
2. Expenses to enable either spouse to commence/complete a
professional/vocational course or activity for self-improvement;
Page 77 of 532
3. Value donated or promised by both spouses in favor of common

legitimate children for the exclusive purpose of commencing/ completing
a professional/ vocational course or activity for self-improvement;
4. Generally: all expenses incurred with the consent to the spouses or for
the benefit of the family.
If community property is If conjugal partnership property is

insufficient, the spouses are insufficient, the spouses are solidarily liable
solidarily liable for the unpaid for the unpaid balance from their separate
balance from their separate properties. Gambling losses of any kind (i.e.
properties except for: legal or illegal) shall be borne by the losing
1. Debts contracted by either spouse’s separate property [Art. 123, FC]
spouse before marriage
which have not redounded DBP v. Adil, G.R. No. L-4085 (1988): Loan
to the benefit of the family; contracts signed by both spouses are
2. Support of illegitimate conjugal, and they are jointly liable for
children; and payment, even if only one spouse signs a
3. Liabilities incurred by either subsequent promissory note.
spouse arising from crime
or quasi-delict. Ayala Investment v. Ching, G.R. No.
118305 (1998): The Supreme Court ruled
Gambling losses of any kind (i.e. that the indirect benefits that might accrue
legal or illegal) shall be borne by to a husband in signing as a surety or
the losing spouse’s separate guarantee in an agreement not in favor of
property [Art. 95, FC] the family but in favor of his employer
corporation are not benefits that can be
considered as giving a direct advantage
accruing to the family. Hence, the creditors
cannot go against the conjugal partnership
property in satisfying the obligation subject
of the surety agreement. A contrary view
would put in peril the conjugal partnership
by allowing it to be given gratuitously as in
cases of donation of conjugal partnership
property, which is prohibited.
Ownership, The administration and enjoyment of the community/conjugal property shall

administration, belong to both spouses jointly.
enjoyment,
and In case of disagreement, the husband’s decision shall prevail, subject to
disposition of recourse to the court by the wife for a proper remedy, within 5 years from the date
property of contract [Art. 96, 124 FC].
De Ansaldo v. Sheriff of Manila, G.R. No. L-

43257 (1937): Spouses are not co-owners
of CPG during the marriage and cannot
alienate the supposed 1/2 interest of each
in the said properties. The interest of the
spouses in the CPG is only inchoate or a
mere expectancy and does not ripen into
Page 78 of 532
title until it appears after the dissolution and

liquidation of the partnership that there are
net assets.
Either spouse may, through a will, Disposition or encumbrance of conjugal

dispose of his or her interest in the property requires the following: Authority of
community property. [Art. 97, FC] the court or written consent of the other
spouse. The absence of such will render
However, the will should refer only such encumbrance void. [Art. 124, par. 2,
to his or her share in the FC]
community property.
Donation of one spouse without the consent of the other is not allowed. [Art. 98,
125 FC]
Exception:
Moderate donations to charity or on occasion of family rejoicing or distress
Jader-Manalo v. Camaisa, G.R. No. 147978 (2002): Mere awareness of a

transaction is NOT consent.
Homeowner’s Savings & Loan Bank v. Dailo, G.R. No. 153802 (2005): In the
absence of (court) authority or written consent of the other spouse, any
disposition or encumbrance of the conjugal property shall be void.
Cheeseman v. IAC, G.R. No. 7483 (1991): If, however, one of the spouses is an
alien, the Filipino spouse may encumber or dispose of the property w/o the
consent of the former. The property is presumed to be owned exclusively by the
Filipino spouse.
Dissolution of Terminates upon [Art. 99, 126 FC]:

the regime 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 and
52
Judicial separation of property during marriage – follow rules in Arts. 134 to 138
Rules on de General rule: De facto separation does NOT affect the ACP/CPG.
facto
separation Exceptions:
1. Spouse who leaves the conjugal home without just cause shall not be
entitled to support; however, he/she is still required to support the other
spouse and the family
2. If consent is necessary for transaction but is withheld or otherwise
unobtainable, authorization may be obtained from the court
3. Support for family will be taken from the ACP/CPG
4. If ACP/CPG is insufficient, spouses shall be solidarily liable
Page 79 of 532
Effect of de If it is necessary to administer or encumber separate property of spouse who left,

facto spouse present may ask for judicial authority to do this.
separation
If ACP/CPG is not enough and one spouse has no separate property, spouse
who has property is liable for support, according to provisions on support.
Rules on Abandonment [Art. 101, 128 FC]

Abandonment Present/aggrieved spouse may petition the court for:
1. Receivership
2. Judicial Separation of Property
3. Authority to be the sole administrator of the absolute community, subject
to precautionary conditions that the court may impose
A spouse is deemed to have abandoned the other when he or she has left the
conjugal dwelling without any intention of returning.
Spouse is prima facie considered to have abandoned the other spouse and the
family if he or she has:
1. Left for a period of 3 months
2. Failed to inform the other spouse of his or her whereabouts for a period
of 3 months
Partosa-Jo v. CA, G.R. No. 82606 (1992):

Physical separation of the spouses,
coupled with the husband’s refusal to give
support to the wife, sufficed to constitute
abandonment as a ground for an action for
the judicial separation of their conjugal
property.
Liquidation of Procedure [Art. 102, FC] Procedure [Art. 129, FC]

assets and 1. Prepare an inventory of 1. Prepare an inventory of all
liabilities assets of ACP and of properties
spouses with market 2. Amounts advanced by CPG in
values payment of personal debts and
2. Debts and obligations obligations shall be credited to the
are paid with community CPG
property, and separate 3. Reimburse each spouse for the use
debts and obligations not of his/her exclusive funds in the
charged to ACP paid by acquisition of property or for the
respective assets of value of his or her exclusive
spouses property, the ownership of which
a. If obligations has been vested by law in the
exceed the assets conjugal partnership
of the ACP, nothing 4. Debts and obligations of CPG
is divided. shall be paid out of the conjugal
Creditors can go assets, otherwise both spouses are
after the separate solidarily liable with their exclusive
properties of the property
spouses, which are
Page 80 of 532
solidarily liable for 5. Remains of the exclusive properties

the deficiency shall be delivered to respective
3. Delivery of whatever owner-spouses.
remains in their exclusive 6. Indemnification for
property loss/deterioration of movables
4. The balance, or net belonging to either spouse, even
remainder, is divided due to fortuitous event, used for the
equally between the benefit of the family
spouses, or in accordance 7. Net remainder of CPG shall
to the proportion agreed constitute the profits which shall be
upon in the marriage divided equally between husband
settlement, irrespective of and wife except when:
how much each brought a. A different proportion or
into the community division was agreed upon in
5. If personal obligations of the marriage settlements
a spouse exceed his/her b. There has been a voluntary
separate property, creditor waiver or forfeiture of such
can go after the share of share as provided in the FC
the spouse on the net c. Presumptive legitimes are
remainder of the ACP, delivered to common
without prejudice to the children
provisions of law on d. Conjugal dwelling goes to:
forfeitures and delivery of i. Spouse with whom
presumptive legitimes majority of common
6. After covering all children choose to
community obligations remain (below 7 y.o.
and obligations of = deemed to have
spouses, balance of chosen the mother
separate properties shall based on the tender
be delivered to respective years presumption)
spouses or their heirs, and ii. Whoever the court
they will also divide into chooses in case of
two equal shares whatever lack of majority
is left of the community
assets, without prejudice to
the provisions of law on
forfeitures and delivery of
presumptive legitimes
7. Presumptive legitimes are
delivered to common
children
8. Conjugal dwelling goes to:
a. Spouse with whom
majority of
common children
choose to remain
(below 7 y.o., =
deemed to have
chosen the mother
based on the
Page 81 of 532
tender years
presumption)
b. Whoever the court
chooses in case of
lack of majority
Rules in case of termination of marriage by death of one of the spouses [Art.

104, FC]:
1. The community property shall be liquidated in the same proceeding for
the settlement of the estate of the deceased spouse.
2. If no such judicial settlement proceeding is instituted, surviving spouse
shall liquidate the community property either judicially or extra-judicially,
within one year from the death of the deceased spouse.
a. If no liquidation is made within the period, any disposition or
encumbrance involving community property of the terminated
marriage shall be void.
b. Non-compliance with liquidation procedures would mean that a
subsequently contracted marriage will follow a regime of
complete separation of property.
Procedure for liquidation of properties of two marriages [Art. 104, FC]:

1. Determine the capital, fruits, and income of each community upon such
proof as may be considered according to the rules of evidence.
2. In case of doubt as to which community the existing properties belong,
they shall be divided between two communities in proportion to the capital
and duration of each.
6. Regime of separation of 7. Judicial separation of

property property
Each spouse has complete control and
Art. 134, FC. In the absence of an express
ownership of his or her own properties which
declaration in the marriage settlements. The
will include “all earnings from his or her
separation of property between spouses
profession, business or industry and all fruits,
during the marriage shall not take place
natural, industrial or civil, due or received
except by judicial order. Such judicial
during the marriage form his or her separate
separation of property may either be
property.” Expenses of the family shall be
voluntary or for sufficient cause.
shouldered by the spouses in proportion to
their income, or, in case of insufficiency or
default thereof, to the current market value of If the spouses did not execute a written
their separate properties. agreement regarding their property regime
prior to the marriage, they can no longer
change it after the marriage ceremony has
taken place unless they have secured judicial
approval.
Sufficient Causes and Grounds for Return

to Previous Regime
Page 82 of 532
Sufficient Causes Grounds for Return When after voluntary

for Judicial to Previous Regime dissolution of the ACP
Separation of [Art. 141, FC] or CPG has been
Property [Art. 135, judicially decreed
FC] upon the joint petition
of the spouses, they
Spouse of petitioner Termination of the civil agree to the revival of
has been sentenced interdiction the former property
to a penalty which regime. No voluntary
carries with it the separation of property
penalty of civil may thereafter be
interdiction granted.
Spouse of petitioner Reappearance of
is judicially declared absentee spouse Separation of Property
an absentee
When it Agreed upon in the
Loss of parental Restoration of applies marriage settlements by
authority of the parental authority to the spouses
spouse of petitioner the spouse previously
has been decreed by deprived of it Mandatory under Arts. 103
the court & 130, FC (subsequent
marriages contracted by a
Spouse of petitioner When the spouse who surviving spouse without
has abandoned the left the conjugal home judicial settlement of
latter or failed to without legal previous property regime)
comply with his or separation resumes
her obligations to the common life with the Judicial separation of
family other property (Voluntary or just
cause)
The spouse granted When the court, being
the power of satisfied that the Default property regime
administration in the spouse granted the when there is
marriage power of reconciliation between
settlements has administration will not spouses after judicial
abused that power again abuse that separation of property
power, authorizes the
resumption of said What it Present or future property
administration consists of or both
At the time of the Reconciliation and Each spouse’s earnings

petition, the spouses resumption of from his or her own
have been common life of the profession, business, or
separated in fact for spouses who had industry
at least 1 year and been separated in fact
reconciliation is for at least 1 year Natural, industrial or civil
highly improbable. fruits of spouse’s separate
properties
May be total or partial. If

partial, property not
considered separate is
Page 83 of 532
Maquilan v. Maquilan, G.R. No. 155409

presumed to pertain to the
(2007): A compromise agreement with judicial
ACP
recognition is valid, pending petition for
declaration of nullity of marriage.
Liabilities Family expenses: Both
spouses are liable in 8. Property regime of unions
proportion to their income;
if insufficient, based on the
without marriage
current value of their
separate properties Art. 147, FC Art. 148, FC
Creditors for family Applicabil Man and Man and woman living
expenses: Spouses ity woman living together as husband
together as and wife, NOT
solidarily liable husband and capacitated to marry:
wife, with 1. Under 18 years
Ownership, Spouses may own, capacity to old
administration, dispose, possess, and marry (Art. 5, 2. Adulterous
enjoyment, administer separate without any relationship
and estates without the legal 3. Bigamous/polyga
disposition consent of the other impediment) mous marriage
1. at least 4. Incestuous
18 years marriages under
Administration of
old Art. 37
exclusive properties may 2. not 5. Void marriages
be transferred between violative by reason of
spouses when: of Art. public policy
1. One spouse 37 under Art. 38
becomes the other (incestu
ous void
spouse’s guardian
marriag
2. One spouse is e)
judicially declared 3. not
an absentee violative
3. One spouse is of Art.
given the penalty 38 (void
marriag
of civil interdiction
e by
4. One spouse reason
becomes a fugitive of public
policy)
Conveyance between the 4. not
spouses is allowed under bigamo
Art. 1490, NCC. us
Other void
In Re: voluntary dissolution of CPG of Sps. marriages
Bermas, G.R. No. L-20379 (1965): A voluntary due to
absence of
separation of properties is not perfected by
formal
mere consent but upon the decree of the court requisite
approving the same. The petition for voluntary
separation of property was denied because the Salaries Owned in Separately owned by
children of the 1st and 2nd marriages were not and equal shares parties
informed; the separation of property may Wages
prejudice the rights and shares of the children.
Page 84 of 532
Propertie Remains Remains exclusive Forfeiture Where only If one party is validly
s exclusive, one party to married to another,
acquired provided a void his/her share in the
through there is proof marriage is co-owned properties
exclusive in good faith, will accrue to the
funds share of ACP/CPG of his/her
party in bad existing valid
Propertie Governed by Owned in common in faith is marriage.
s rules on co- proportion to forfeited:
acquired ownership respective If the party who acted
by both contribution In favor of in bad faith is not
through their validly married to
work and common another, his/her share
industry children shall be forfeited in the
In case of same manner as that
Propertie Owned in No presumption of default of or provided in Art 147.
s equal shares joint acquisition. When waiver by
acquired since it is there is evidence of any or all of The same rules on
while presumed to joint acquisition but the common forfeiture shall apply if
living have been none as to the extent children or both parties are in bad
together acquired of actual contribution, their faith.
through joint there is a presumption descendants
efforts of equal sharing. , each
vacant share
If one party shall belong
did not to the
participate in respective
acquisition, surviving
presumed to descendants
have
contributed In the
jointly, if the absence of
former’s such
effort descendants
consisted in , such share
the care and belongs to
maintenance the innocent
of family and party
household
N.B. Neither
party can
encumber or
G. THE FAMILY
dispose by
acts inter
vivos his 1. Concept of family
share in co-
owned
property Art. 149, FC. The family being the
without the foundation of the nation is a basic social
consent of institution which public policy cherishes and
the other protects. Consequently, family relations are
party until
governed by law and no custom practice or
cohabitation
is agreement destructive of the family shall be
terminated. recognized or given effect.
Art. 150, FC. Family relations include those:
Page 85 of 532
a. Between husband and wife f. Future legitime.

b. Between parents and children
c. Among other ascendants and Note: In case of doubt, all presumptions favor
descendants the solidarity of the family. [Art. 220, CC]
d. Among brothers and sisters, full or half
blood Art. 151, FC only applies when the case is
exclusively among family members.
The family is an institution that is governed by Whenever a stranger is included as a party to
law. The internal aspect of the family is sacred the case, Art. 151 does not apply. [Hontiveros
and inaccessible to law because law must v. RTC, G.R. No. 125465 (1999)]
respect the freedom of action of man.
Suits between brothers-in-law can prosper
2. Effects on legal disputes even without a verified complaint or petition.
[Guerrero v. RTC, G.R. No 109068 (1994)]
Art. 151, FC. No suit between members of
The enumeration of brothers and sisters as
the same family shall prosper unless it
members of the same family does not
should appear from the verified complaint or
comprehend sisters-in-law and brothers-in-
petition that earnest efforts toward a
law. [Gayon v. Gayon, G.R. No. L-28394
compromise have been made but that the
(1970)].
same have failed. If it is shown that no such
efforts were in fact made, the case must be
dismissed. 3. Family home
General Rule: No suit between members of What Constitutes the Family Home
the same family shall prosper. [Art. 151, FC] The family home is the dwelling house where
family resides and the land on which it is
Exception: Suits between members of the sustained. [Art. 152]
same family shall prosper only if it shall appear
in a verified complaint or petition that: Limitations on the Family Home
a. Earnest efforts towards a compromise The family home must be part of the properties
have been made; of the absolute community or the conjugal
b. Such efforts have failed; and partnership, or of the exclusive properties of
c. Such earnest efforts and the fact of either spouse with the other’s consent. It may
failure must be alleged. also be constituted by an unmarried head of a
The case will be dismissed if it is shown that no family in his or her own property. [Art. 156, FC]
such efforts were made. [Art. 151, FC]
The actual value of the family home shall not
Exception to the Exception exceed, at the time of its constitution, the
A verified complaint or petition is not needed amount of P300,000 in urban areas, and
for matters not subject to compromise. P200,000 in rural areas, or such amounts as
may hereafter be fixed by law. [Art. 157, FC]
Under Art. 2035, CC, the following cannot be
subject of compromise: A person may constitute, or be the beneficiary
a. Civil status of persons, of, only one home. [Art. 161, FC]
b. Validity of marriage or a legal separation,
c. Any ground for legal separation, Who May Constitute the Family Home
d. Future support (as it is presumed to be The family home may be constituted
needed for the survival of the one receiving a. Jointly by the husband and wife; or
support), b. An unmarried head of the family [Art. 152,
e. Jurisdiction of courts, FC]
Page 86 of 532
Note: A person may constitute and be the Exemption from Forced Sale, Execution,
beneficiary of only one family home [Art. 161, Attachment
FC] General Rule: The family home is exempt from
the following from the time of its constitution
Beneficiaries of the Family Home and so long as any of its beneficiaries actually
a. The husband and wife, or an unmarried resides therein:
person who is the head of a family; and a. Execution;
b. Their parents, ascendants, descendants, b. Forced sale;
brothers, and sisters whether relationship c. Attachment [Art. 153].
be legitimate or illegitimate, who are living
in the family home and who depend on the Exceptions in the exemption of the family
head of the family for support. [Art. 154, home from execution
FC] a. Nonpayment of taxes.
b. Debts incurred prior to the constitution of
Requisites to be a Beneficiary of the Family the family home.
Home: c. Debts secured by mortgages on the
a. The relationship is within those premises before or after such constitution.
enumerated in Art. 150, FC. d. Debts due to laborers, mechanics,
b. They live in the family home architects, builders, materialmen and
c. They are dependent for legal support on others who have rendered service or
the head of the family furnished material for the construction of
the building. [Art. 155, FC]
Occupancy of a family home must be “actual”
in order for one to be a beneficiary. Actual Re: Claims Not Among Those in Art. 155
occupancy, need not be by the owner of the When a creditor whose claim is not among
house specifically. Rather, the property may be those mentioned in Art. 155, obtains a
occupied by the “beneficiaries” enumerated in judgment in his favor, and he has reasonable
Art. 154, FC, which may include the in-laws grounds to believe that the family home is
where the family home is constituted jointly by actually worth more than the maximum amount
the husband and wife. But the law definitely fixed in Art. 157, he may apply to the court
excludes maids and overseers. They are not which rendered the judgment for an order
the beneficiaries contemplated by the Code. directing the sale of the property under
[Patricio v. Dario, G.R. No. 170829 (2006)] execution. [Art. 160, par. 1, FC]
The term "descendants" contemplates all To warrant the execution of sale of the family
descendants of the person or persons who home under Art 160, the following facts need to
constituted the family home without distinction; be established:
hence, it must necessarily include the a. there was an increase in actual value,
grandchildren and great grandchildren of the b. the increase resulted from voluntary
spouses who constitute a family home. improvements,
However descendants cannot be considered c. the increase in actual value exceeded the
beneficiaries if they are supported by their own maximum limit allowed by Art 157
parents and not by the ascendants who [Eulogio vs. Bell, G.R. No. 186322 (2015)]
constituted the family home. [Patricio v. Dario,
G.R. No. 170829 (2006)] The actual value of the family home shall not
exceed at the time of its constitution the
When Deemed Instituted amount of three hundred thousand pesos in
The family home is deemed constituted on a urban areas and two hundred thousand
house and lot from the time it is occupied as a pesos in rural areas or such amounts as may
family residence. [Art. 153, FC] hereafter be fixed by law.
Page 87 of 532
In any event, if the value of the currency same the latter’s spouse and a majority of
changes after the adoption of this Code, the the beneficiaries of legal age. In case of
value most favorable for the constitution of conflict, the court shall decide. [Art. 158, FC]
a family home shall be the basis of
evaluation. Requirements for the sale, alienation,
donation, assignment, or encumbrance of
Urban areas include chartered cities and the family home
municipalities. All others are deemed to be a. The written consent of the following:
rural areas. [Art. 157, FC] 1. the person constituting it;
2. the spouse of the person
Procedure to avail of right under Art. 160 constituting it; and
a. The creditor must file a motion in the court 3. the majority of the beneficiaries
proceeding where he obtained a favorable who are of legal age [Art. 158, FC].
decision for a writ of execution against the
family home. When Terminated
b. There will be a hearing on the motion The family home shall continue despite the
where the creditor must prove that the death of one or both of the spouses or of the
actual value of the family home exceeds unmarried head of the family:
the maximum amount fixed by the FC a. for a period of ten years; or
either at the time of its constitution or as a b. for as long as there is a minor beneficiary.
result of improvements introduced
thereafter. And the heirs cannot partition the same unless
c. If the creditor proves that the actual value the court finds compelling reasons therefor.
exceeds the maximum amount the court The rule shall apply regardless of whoever
will order its sale in execution. owns the property or constituted the family
d. If the family home is sold for more than the home [Art. 159, FC]
value allowed, the proceeds shall be
applied as follows: Article 159 imposes the proscription
1. First, the obligation enumerated in against the immediate partition of the family
Article 157 must be paid home regardless of its ownership. This
2. Then the judgment in favor of the signifies that even if the family home has
creditor will be paid, plus all the passed by succession to the co-ownership of
costs of execution the heirs, or has been willed to any one of
3. The excess, if any, shall be them, this fact alone cannot transform the
delivered to the judgment debtor family home into an ordinary property, much
less dispel the protection cast upon it by the
General Rule law. The rights of the individual co-owner or
The proof that the house is the family home owner of the family home cannot subjugate the
must be alleged against creditors; Applied the rights granted under Article 159 to the
rule in Art. 160, FC. [Versola v. Mandolaria, beneficiaries of the family home. [Arriola v.
G.R. No. 164740 (2006)] Arriola, G.R. No. 177703 (2008)]
Note: The provisions of this Chapter shall also

govern existing family residences insofar as
H. PATERNITY AND
said provisions are applicable. [Art. 162, FC] FILIATION
When the Family Home may be Sold The filiation of children may be by nature or by
The family home may be sold alienated, adoption. Natural filiation may be legitimate
donated, assigned, or encumbered by the or illegitimate. [Art. 163, FC]
owner or owners thereof with the written
consent of the person constituting the See table below.
Page 88 of 532
Status Children Who Have this Rights Effects on

Status Succession
Legitimate a. Conceived OR born during a. Bear the surnames Legitimate children are
the valid marriage of the of the father and entitled to 1/2 of the
parents [Art. 164, FC] the mother estate of the parent
b. Conceived through artificial b. Receive support divided amongst
insemination [Art. 164, FC] from parents, themselves [Art. 888,
c. Children of a subsequent ascendants, and CC]
marriage (after declaration of brothers/sisters in
presumptive death) proper cases
conceived prior to its c. Entitled to
termination [Art. 43, FC] legitimate and
d. Conceived or born before the other successional
final judgement of annulment rights [Art. 174,
under Art. 45 or absolute FC]
nullity under Art. 36 [Art. 54, d. Claim legitimacy
FC] [Art. 173, FC]
e. Conceived or born of the
subsequent marriage under
Art. 53 [Art. 54, FC]
f. Legitimated children* [Art.
177, FC]
g. Adopted Children** [RA
8552]
Illegitimate Conceived AND born outside a a. Bear the surname Each illegitimate child
valid marriage [Art. 165, FC] of the mother is entitled to an amount
b. Bear the surname 1/2 the share of a
of the father if legitimate child [Art.
filiation has been 176, FC]
expressly
recognized by the
father through:
record of birth,
public document,
or private
handwritten
instrument
c. Receive support
d. Entitled to
successional
rights [Art 176, FC]
e. Establish
illegitimate filiation
[Art 175, FC]
Legitimated* Conceived AND born outside a Same as Legitimate Same as Legitimate

valid marriage provided that: Child [Art. 179, FC] Child
a. At the time of conception: the
parents were NOT
Page 89 of 532
disqualified to marry each

other (unless the impediment
was minority of either or both
of them) [Art. 177, FC] AND
b. The parents subsequently
enter into a valid marriage
[Art. 178, FC]
Adopted** Those adopted through From the Domestic From Domestic

Domestic [RA 8552] or Adoption Act: Adoption Act:
Intercountry Adoption [RA 8043] a. Same as Legitimate a. Same as
Child [Sec. 17, RA Legitimate Child
8552] [Sec. 18, RA 8552]
b. Right to rescind BUT the adopted
adoption under child cannot inherit
specific cases [Sec. by representation
19, RA 8552] because the
relationship is only
between adopter
and adoptee
[Sayson v. CA,
G.R. No. 89224-25
(1992)]
b. May also inherit
from biological
parents if they left
a will [Sec. 18, RA
8552]
1. Legitimate children The time of birth is the criterion of

legitimacy. [Tolentino]
Art. 164, FC. Children conceived or born
during the marriage of the parents are WHO ARE LEGITIMATE CHILDREN?
legitimate. 1. Children conceived OR born during the
valid marriage of the parents [Art. 164,
Children conceived as a result of artificial FC]
insemination of the wife with the sperm of the 2. Children conceived through artificial
husband or that of a donor or both are insemination [Art. 164, FC]
likewise legitimate children of the husband 3. Children of a subsequent marriage
and his wife, provided, that both of them conceived prior to its termination [Art.
authorized or ratified such insemination in a 43, FC]
written instrument executed and signed by
them before the birth of the child. The This refers to those subsequent
instrument shall be recorded in the civil marriages which were terminated after
registry together with the birth certificate of the reappearance of the spouse
the child. presumed dead.
4. Children conceived or born before the
A legitimate child is one that is born in lawful judgement of annulment under Art. 45
wedlock or within a competent time afterwards. or absolute nullity under Art. 36 has
Page 90 of 532
become final and executory [Art. 54, Dual consent is required whether the semen
FC] used comes from the husband or a third person
5. Children conceived or born of the donor. [Tolentino]
subsequent marriage under Art. 53
[Art. 54, FC] Common children born before the annulment
6. Legitimated children [Art. 177, FC] are legitimate, and therefore entitled to support
7. Adopted Children [RA 8552] from each of the spouses. [De Castro v.
Assidao-De Castro, G.R. No. 160172 (2008)]
NATURAL/BIOLOGICAL
A child conceived or born during a valid 2. Proof of filiation
marriage is presumed to belong to that
marriage, regardless of the existence of Proof of filiation is necessary:
extramarital relationships. [Liyao v. Liyao, G.R. 1. Where the child is born after 300 days
No. 138969 (2002)] following the termination of the marriage →
child has no status, and whoever alleges
ARTIFICIAL INSEMINATION [Art. 164, FC] legitimacy must prove it.
Artificial insemination is the impregnation of a 2. If the legitimacy of a child conceived or
female with the semen from male without born in wedlock is impugned and the
sexual intercourse. plaintiff has presented evidence to prove
any of the grounds provided in Article 166
The child conceived through artificial → proof of filiation may be used as a
insemination with the consent of both husband defense. [Tolentino]
and wife is legitimate.
Legitimate children may establish their
The FC does not require, as a condition for filiation by any of the following [Art. 172,
the legitimacy of the child, the impotence of FC]:
the husband. a. Primary Evidence (for voluntary
recognition)
Even without the initial consent, the child can 1. Their record of birth appearing in
still be legitimated so long as the husband the civil registry or a final
subsequently gives his consent before the child judgement.
is born through AI. 2. An admission of his filiation by his
parent in a public document or a
Requisites to be considered legitimate: private handwritten instrument and
a. Artificial insemination made on wife signed by said parent.
b. Sperm comes from any of the following: b. Secondary Evidence (for involuntary
1. Husband recognition)
2. Third Person Donor 1. Proof of open and continuous
3. Husband and third possession of status as legitimate
person donor child.
c. In case of donor sperm, husband and 2. Any other means stated by the
wife must authorize/ratify insemination rules of court or special laws.
in a written instrument.
1. Executed & signed by husband and Note: Only in the absence of primary evidence
wife before the birth of the child. can secondary evidence be admitted
2. Recorded in the civil registry together
with the birth certificate of the child. Action for Claiming Filiation (Legitimate
[Art. 164, FC] Children) [Art. 173, FC]:
a. The child can bring the action during his or
her lifetime.
Page 91 of 532
b. If the child dies during minority or in a state ACTION FOR CLAIMING ILLEGITIMATE
of insanity, such action shall be transmitted FILIATION
to his heirs, who shall have a period of five Illegitimate children may establish their
years within which to institute the action. illegitimate filiation in the same way and on the
c. The action commenced by the child shall same evidence as legitimate children. [Art.
survive notwithstanding the death of either 175, FC]
or both of the parties. a. For actions based on primary evidence,
the same periods stated in Art. 173 of FC
Rights of Legitimate Children [Art. 174, FC] apply - lifetime of the child, will not be
3S → Support, Surname, Succession extinguished by death of either parties
a. To bear the Surnames of the father and the b. For actions based on secondary
mother, in conformity with the provisions of evidence, the action may only be brought
the CC on surnames. during the lifetime of the alleged parent.
b. To receive Support from their parents, their
ascendants, and in proper cases, their The same kind of evidence provided in Art. 172
brothers and sisters, in conformity with the for establishing legitimate filiation may be used
provisions of the Code on Support. to prove the filiation of illegitimate children, and
c. To be entitled to the legitimate and other the action for this purpose must be brought
Successional rights granted to them by the within the same period and by the same parties
CC. as provided in Article 173. [Art. 175, FC]
Future support cannot be the subject of a However, if the evidence to prove the filiation is
compromise, pursuant to Article 2035 of CC. secondary, the action must be brought within
The reason behind this prohibition is because the lifetime of the alleged parent. [Art. 175, FC]
the right to support is founded upon the need
of the recipient to maintain his existence, and Primary evidence
thus the renunciation of such will be Baptismal certificates are given probative value
tantamount to allowing the suicide of the only for births before 1930. Birth certificates
person or his conversion to a public burden, must be signed by the parents and sworn for it
which is contrary to public policy. [De Asis v. to be admitted as evidence. [Mendoza v. Mella,
CA, G.R. No. 127578 (1999)] G.R. No. L-18752 (1966)]
3. Illegitimate children Signature of the father on the birth certificate is

considered as an acknowledgement of
Art. 165, FC. Children conceived and born paternity and mere presentation of a duly
outside a valid marriage are illegitimate, authenticated copy of such certificate will
unless otherwise provided in this Code. successfully establish filiation. [Eceta v. Eceta,
G.R. 157037 (2004)]
WHO ARE ILLEGITIMATE CHILDREN?
Unsigned birth certificates are not evidence of
General rule: Those conceived and born
recognized filiation. [Baluyut v. Baluyut, G.R.
outside of a valid marriage. [Art. 165, FC]
No. L-33659 (1990)]
Exceptions
The due recognition of an illegitimate child in a
a. Children of marriages void under Art. 36
record of birth, a will, a statement before a court
(psychological incapacity); and
of record, or in any authentic writing, is in itself
b. Under Art. 53 (subsequent marriages
a consummated act of acknowledgement of the
which did not comply with Art. 52) [Sempio-
child, and no further court action is required.
Dy]
[De Jesus v. Estate of Decedent Juan Gamboa
Dizon, G.R. No. 142877 (2001)]
Page 92 of 532
Secondary evidence parents. [De Jesus v. Syquia, G.R. No. L-

Rule 130, Sec. 40 is limited to objects 39110 (1933)]
commonly known as family possessions
reflective of a family's reputation or tradition Other evidence
regarding pedigree like inscriptions on DNA evidence can be used as proof of
tombstones, monuments, or coffin plates. paternity. [Agustin v. CA, G.R. No. 162571
[Jison v. CA, G.R. No. 124853 (1998)] (2005)]
"Su padre [Your father]" ending in a letter is DNA evidence can still be used even after the
only proof of paternal solicitude and not of death of the parent. [Estate of Rogelio Ong v.
actual paternity. Signature on a report card Diaz, G.R. No. 171713 (2007)]
under the entry of "Parent/Guardian" is likewise
inconclusive of open admission. [Heirs of Marriage certificates cannot be used as proof
Rodolfo Bañas v. Heirs of Bibiano Bañas, G.R. of filiation. [Lim v. CA, G.R. No. L-39381
No. L-25715 (1985)] (1975)]
Mere possession of status as an illegitimate There are four significant procedural aspects of
child does not make an illegitimate child a traditional paternity action that parties have
recognized but is only a ground for bringing an to face: a prima facie case, affirmative
action to compel judicial recognition by the defenses, presumption of legitimacy, and
assumed parent. [Gono-Javier v. CA, G.R. No. physical resemblance between the putative
111994 (1994)] father and the child. A prima facie case exists
if a woman declares — supported by
To prove open and continuous possession of corroborative proof — that she had sexual
the status of an illegitimate child, there must be relations with the putative father; at this point,
evidence of the manifestation of the permanent the burden of evidence shifts to the putative
intention of the supposed father to consider the father. Further, the two affirmative defenses
child as his, by continuous and clear available to the putative father are: (1)
manifestations of parental affection and care, incapability of sexual relations with the mother
which cannot be attributed to pure charity. due to either physical absence or impotency, or
[Perla v. Baring, G.R. No. 172471 (2012)] (2) that the mother had sexual relations with
other men at the time of conception. [Gotardo
Meanwhile, the lack of participation of the v. Buling, G.R. No. 165166 (2012)]
supposed father in the preparation of a
baptismal certificate renders this document RIGHTS OF ILLEGITIMATE CHILDREN
incompetent to prove paternity. Baptismal Art. 176, FC. Illegitimate children shall use
certificates are per se inadmissible in evidence the surname and shall be under the parental
as proof of filiation and they cannot be admitted authority of their mother, and shall be
indirectly as circumstantial evidence to prove entitled to support in conformity with this
the same. [Perla v. Baring, supra] Code. However, illegitimate children may
use the surname of their father if their filiation
By "open and continuous possession of the has been expressly recognized by the father
status of a legitimate child" is meant the through the record of birth appearing in the
enjoyment by the child of the position and civil register, or when an admission in a
privileges usually attached to the status of a public document or private handwritten
legitimate child, like bearing the paternal instrument is made by the father. Provided,
surname, treatment by the parents and family the father has the right to institute an action
of the child as legitimate, constant attendance before the regular courts to prove non-
to the child's support and education, and giving filiation during his lifetime. The legitime of
the child the reputation of being a child of his each illegitimate child shall consist of one-
Page 93 of 532
half of the legitime of a legitimate child (as

amended by RA No. 9255 in 2004). Compulsory acknowledgment and support of
the child are proper as there is no legal
Illegitimate children shall use the surname and impediment in doing so. The crime of rape
shall be under the parental authority of their carries with it the obligations to acknowledge
mother, and shall be entitled to support in the child if the character of its origin does not
conformity with this Code. The legitime of each prevent it, and to support the same. [People v.
illegitimate child shall consist of one-half of the Namayan, G.R. No. 106539 (1995)]
legitime of a legitimate child. [Art. 176, FC]
Criminal liability for neglect of a child under PD
Rights of Illegitimate Children [Art. 176, FC] 603 does not depend on whether the other
a. Use the surname and be under the parental parent is also guilty of neglect. The
authority of the mother irresponsible parent cannot exculpate himself
b. However, may use the surname of father if: from the consequences of his neglect by
1. Their filiation has been expressly invoking the other parent’s faithful compliance
recognized by the father through the with his or her own parental duties because to
record of birth appearing in the civil allow such defeats the prescription that in all
register; or questions regarding the care, custody,
2. There is an admission in a public education and property of the child, his welfare
document or private handwritten shall be the paramount consideration. [De
instrument made by the father. Guzman v. Perez, G.R. No. 156013 (2006)]
3. Provided, the father has the right to
institute an action before the regular Although the issuance of TPO under RA 9262
courts to prove non-filiation during his may include the grant of legal support for the
lifetime [RA 9255] wife and the child, this assumes that both are
4. The use of the word “may” in Art. 176 entitled to a protection order and to legal
readily shows that an acknowledged support. Illegitimate children are entitled to
illegitimate child is under no support and successional rights, but their
compulsion to use the surname of his filiation must be duly proved through a judicial
illegitimate father. The word “may” is action for compulsory recognition or a direct
permissive and operates to confer action for support where the issue of
discretion upon the illegitimate compulsory recognition may be integrated and
children. [Grande v. Antonio, G.R. No. resolved. [Dolina v. Vallecera, G.R. No.
206248 (2014)] 182367 (2010)]
c. Shall be entitled to support in conformity
with the FC. Summary proceedings under Rule 108 of RC
d. Legitime shall consist of one-half of the and Art. 412 of CC may be used only to correct
legitime of a legitimate child. clerical or innocuous errors, not to alter or
increase substantive rights, such as those
The writ of habeas corpus does not distinguish involving the legitimacy or illegitimacy of a
between a mother of a legitimate and a mother child. Where the effect of a correction in a civil
of an illegitimate child who is deprived of registry will change the civil status of a child
rightful custody of her child. [David v. CA, G.R. from legitimate to illegitimate, the same cannot
No. 111180 (1995)] be granted except only in an adversarial
proceeding. Moreover, a petition for substantial
The order of payment of allowance need not be change in the civil registry should implead not
conditioned on the grant of custody of the only the civil registrar, but also all other persons
child., since under Art. 204 of FC, a parent may who have or claim to have any interest that
fulfill his obligation to support by paying the would be affected thereby. [Republic v.
allowance fixed by the court. [David v. CA, Labrador, G.R. No. 132980 (1999)]
supra]
Page 94 of 532
The use of the word “may” in Art. 176 of FC, as Impotence of husband
amended by RA 9255, shows that an Impotence is the inability of the male organ of
acknowledged illegitimate child is not copulation to perform its proper function. It
compelled to use the surname of his does not include sterility, which refers to the
illegitimate father. Illegitimate children shall use inability to procreate. [Tolentino]
the surname of their mother, and the discretion
on the part of the illegitimate child to use the Spouses living separately
surname of his father is conditional upon proof The separation between the spouses must be
of compliance with the IRR of RA 9255, such as to make sexual access impossible.
including the execution of an Affidavit to Use This may take place when they reside in
the Surname of the Father. [Barcelote v. different countries or provinces, and they have
Republic and Tinitigan, G.R. No. 22095 (2017)] never been together during the period of
conception. [Tolentino]
4. Impugned Legitimacy/Action
Serious illness of husband
to Impugn Legitimacy The illness must be of such a nature as to
exclude the possibility of his having sexual
Legitimacy of a child may be impugned only intercourse with his wife. [Tolentino]
on the following grounds: [Art. 166, FC]
a. Physical impossibility for the husband to Mere proximate separation between the
have sexual intercourse with his wife within spouses is not sufficient physical separation to
the first 120 days of the 300 days which constitute as ground for impugning legitimacy.
immediately preceded the child's birth due [Macadangdang v. CA, G.R. No. L-49542
to: (1980)]
1. Physical incapacity of the husband
to have sexual intercourse with his Serious illness of the husband which absolutely
wife prevented him from having sexual intercourse
2. Husband and wife were living with his wife, like if the husband was already in
separately as to make sexual comatose or in a vegetative state, or sick with
intercourse impossible syphilis in the tertiary stage so that copulation
3. Serious illness of the husband was not possible. But tuberculosis, even in its
absolutely preventing sexual most crucial stage, does not preclude
intercourse copulation between the sick husband and his
b. Other biological or scientific reasons, wife. [Andal v. Macaraig, G.R. No. 2474
except Artificial Insemination. (1951)]
c. And in case of Artificial Insemination,
the written consent of either parent was Blood-type matching is an acceptable means
vitiated through fraud, violence, mistake, of impugning legitimacy, covered by Art.
intimidation, or undue influence. 166(2), under "biological or other scientific
reasons." But this is only conclusive of the fact
Physical impossibility of access of non-paternity. [Jao v. CA, G.R. No. L-49162
To overthrow the presumption of legitimacy, it (1987)]
must be shown beyond all reasonable doubt
that there was no access as could have Art. 167, FC. The child shall be considered
enabled the husband to be the father of the legitimate although the mother may have
child. Moral impossibility of access, such as declared against its legitimacy or may have
when the wife is in open adultery, or there is been sentenced as an adulteress.
bitter hatred between the spouses, cannot
defeat the presumption of legitimacy. Legitimacy with Regard to the Mother:
[Tolentino] a. Child considered legitimate although [Art.
167, FC]:
Page 95 of 532
1. Mother may have declared against

its legitimacy
Day of Birth of the Child Status of
2. Mother may have been sentenced
Relative to the 2 Marriages the Child
as an adulteress (also applies to
[Art 168,
wife who was raped)
FC]
b. If the marriage is terminated and the
mother contracted another marriage within 1st marriage: within 300 days Legitimate
300 days after the termination of the former of termination to 1st
marriage, the following rules shall govern in AND Marriage
the absence of proof to the contrary [Art 2nd marriage: before 180
168, FC]: days after solemnization
1. If born before 180 days after the
solemnization of the subsequent 1st marriage: within 300 days Legitimate
marriage – child is considered of termination to 2nd
conceived during the former AND Marriage
marriage, provided it be born within 2nd marriage: after 180 days
300 days after termination of the following solemnization
former marriage
2. If born after 180 days following the
Art. 169, FC. The legitimacy or illegitimacy
celebration of the subsequent
of a child born after three hundred days
marriage – child is considered
conceived during such marriage, following the termination of the marriage
even if it be born within 300 days shall be proved by whoever alleges such
after the termination of the former legitimacy or illegitimacy.
marriage
The legitimacy or illegitimacy of a child born
after 300 days following the termination of the
marriage – burden of proof upon whoever
alleges the status. [Art. 169, FC]
If nobody asserts the legitimacy or illegitimacy

of the child described in Art. 169, the child
should be considered illegitimate unless
legitimacy is proved. Legitimacy cannot be
presumed here since the birth was beyond the
300-day period of gestation. While it goes
against the policy of law to lean in favor of
legitimacy, this interpretation is better than the
anomalous situation created by Art. 169, which
is a child without a status. [Tolentino]
ACTION FOR IMPUGNING LEGITIMACY

An action to impugn legitimacy may be brought
within 1, 2, or 3 years from the knowledge of
the birth or of registration of birth. [Arts. 170
and 171, FC]
a. Within 1 year - If the husband or any heirs
reside in the same city or municipality
where the child was born or his birth was
recorded.
Page 96 of 532
b. Within 2 years - If the husband or all heirs 5. Legitimated children

live in the Philippines but do not reside in
the same city or municipality where the Art. 177, FC. Children conceived and born
child's birth took place or was recorded. outside of wedlock of parents who, at the time
c. Within 3 years - if the husband or all heirs of conception of the former, were not
live outside the Philippines when the child's disqualified by any impediment to marry each
birth took place or was recorded in the other, or were so disqualified only because
Philippines. either or both of them were below eighteen (18)
years of age, may be legitimated (as amended
If the birth of the child has been concealed or by RA No. 9858, 2009).
was unknown to the husband, the above
periods shall be counted: General rule: "Legitimated" children are
a. From the discovery or knowledge of the illegitimate children who because of the
birth of the child, or subsequent marriage of their parents are, by
b. From the discovery or knowledge of its legal fiction, considered legitimate.
registration, whichever is earlier.
Requisites for Legitimation:
General rule: Only the husband can impugn a. The child must have been conceived and
the legitimacy of a child. If he does not bring an born outside of wedlock; and
action within the prescribed periods, he cannot b. The parents, at the time of the child's
file such action anymore thereafter, and this is conception, were not disqualified by any
also true with his heirs. impediment to marry each other, or
disqualified only because either or both of
Exception: That the heirs of the husband them were below 18 years old. [Art. 177, as
may file the action or continue the same within amended by RA 9858, FC]
the periods prescribed in Art. 170 [Art. 171,
FC]: Procedure and Effects:
a. If the husband died before the expiration of a. Legitimation shall take place by a
the period fixed for bringing his action subsequent valid marriage between the
b. If he should die after the filing of the parents. The annulment of a voidable
complaint without having desisted marriage shall not affect the legitimation.
therefrom [Art. 178, FC]
c. If the child was born after the death of the b. Effects of legitimation shall retroact to the
husband. time of the child’s birth [Art. 180, FC]
c. Legitimation of children who died before
Example: If the husband was living in Dubai the celebration of the marriage shall benefit
and the child was born in Quezon City, and he their descendants [Art. 181, FC]
had older children (heirs) also living in Quezon
City, the period for impugning legitimacy would Grounds for Impugning Legitimation:
be within 1 year from knowledge of birth or a. The subsequent marriage of the child's
registration. Although the husband resided parents is void.
abroad, he still had heirs residing in the same b. Those born under these circumstances:
city. 1. There was an impediment to the
marriage at the time of conception AND
Legitimacy can only be attacked directly. 2. The subsequent marriage of the
[Sayson v. CA, G.R. No. 89224-25 (1992)] parents is valid
c. The child is not really the child of the
alleged parents. [Sempio-Dy]
Legitimation may be impugned only by those

who are prejudiced in their rights, within five
Page 97 of 532
years from the time their cause of action legitimate

accrues. [Art. 182, FC] child of the
other
Rights of legitimated children 2. One spouse
Legitimated children have the same rights as seeks to
adopt his
those of legitimate children. [Art. 179, FC]
own
illegitimate
When an illegitimate child is subsequently child,
legitimated by reason of marriage, he shall be provided that
allowed to use his mother’s surname as his the other
middle name and his father’s surname as his spouse has
signified
surname. Thus, as a legitimated child, Julian
their consent
shall use the surnames of both his mother and thereto
father. [In Re: Petition for Change of Name of 3. Spouses are
Julian Lin Carulasan Wang, G.R. No. 159966 legally
(2005) separated
from each
other
I. ADOPTION Effect on Same status Creates a

parent- and rights with relationship only
child that of a between the child
relationship legitimate child and the adopting
Adoption is a juridical act, a proceeding in rem, not only in parents [Sayson
which creates between two persons a relation to the v. CA, G.R. No.
relationship similar to that which results from legitimizing 89224-25 (1992)]
legitimate paternity and filiation. [Lazatin v. parents but also
Campos, G. R. No. L-43955-56 (1979)] to other
relatives.
Since adoption is wholly and entirely artificial,
to establish the relation the statutory 1. RA 8552: Domestic Adoption
requirements must be strictly carried out;
otherwise, the adoption is an absolute nullity. Law
[Republic v. CA and Caranto, G.R. No. 103695
(1996)] a. Who can adopt
1. Filipino Citizens [Sec. 7(a), RA 8552]

LEGITIMATION ADOPTION
a. Of legal age
Legal effect The law merely The law creates b. With full civil capacity and legal
makes legal by fiction a rights
what exists by relation which did c. Of good moral character and has
nature. not in fact exist. not been convicted of any crime
Persons Natural children Strangers
involving moral turpitude
affected (generally) d. Emotionally and psychologically
capable of caring for children
Procedure Extrajudicial Always judicial e. At least sixteen (16) years older
acts of parents than adoptee, except when adopter
is biological parent of the adoptee
Who Both parents Both parents,
should except:
or is the spouse of the adoptee’s
apply 1. One spouse parent
seeks to f. In a position to support and care for
adopt the his/her children in keeping with the
means of the family
Page 98 of 532
g. Has undergone pre-adoption a. One spouse seeks to adopt the legitimate

services child of the other
2. Aliens [Sec. 7(b), RA 8552] b. One spouse seeks to adopt his own
Same for Filipinos provided further that: illegitimate child, provided that the other
a. His/her country has diplomatic spouse has signified their consent thereto
relations with the Philippines c. Spouses are legally separated from each
b. Has been living in the Philippines other
for 3 continuous years prior to the
filing of application and maintains b. Who can be adopted
such residence until the decree is
entered Those who can be adopted [Sec. 8, RA
! Note: absences not 8552]:
exceeding 60 days per 1 1. Minor (below 18) who has been
year for professional, administratively or judicially declared
business, or emergency available for adoption
reasons are allowed 2. Legitimate son/daughter of one spouse by
c. Has been certified by his/her another
diplomatic or consular office or any 3. Illegitimate son/daughter by a qualified
appropriate government agency adopter to improve the child’s status to that
that he/she has the legal capacity of legitimacy
to adopt in his/her country 4. A person of legal age if, prior to the
d. His/her government allows the adoption, said person has been
adoptee to enter his/her country as consistently considered and treated by the
his/her adoptee and reside there adopter(s) as his/her child since minority
permanently as an adopted child 5. A child whose previous adoption has been
e. Has submitted all the necessary rescinded
clearances and such certifications 6. A child whose biological or adoptive
as may be required parent(s) has died, provided that no
Requirements of residency and certification proceedings shall be initiated within 6
of legal capacity may be waived under the months from the time of death of said
following circumstances: parent(s)
a. Adopter is a former Filipino Citizen who
seeks to adopt a relative within the 4th Exceptions to the Requirement of a
degree of consanguinity or affinity. Certification that the Child is Available for
b. Adopter seeks to adopt the legitimate child Adoption [Sec. 4, RA 8552]:
of his/her Filipino spouse 1. Adoption of an illegitimate child by his/her
c. Adopter is married to a Filipino Citizen and biological parent;
seeks to adopt jointly with his/her spouse a 2. Adoption of a child by his/her stepparent;
relative within the 4th degree of 3. Adoption by a relative within the 4th civil
consanguinity or affinity of the Filipino degree by consanguinity or affinity
spouse
● Note: Requirements may not be Persons whose written consent is
waived for an alien married to a necessary for adoption [Sec. 9, RA 8552]
former Filipino 1. The prospective adoptee if 10 years or
3. Guardians [Sec. 7(c), RA 8552] older
With respect to their wards, after the 2. The prospective adoptee’s biological
termination of the guardianship and clearance parents, legal guardian or the government
of his/her accountabilities. instrumentality or institution that has
General Rule: Husband and wife must jointly custody of the child
adopt 3. The prospective adopters’ legitimate and
Exception [Sec. 7]: adopted children who are 10 years or older
Page 99 of 532
4. The prospective adopters’ illegitimate who may be adopted. [Poe-Llamanzares v.

children, if any, who are 10 years or older COMELEC, G.R. No. 221697 (2016)]
and living with them
5. The spouse, if any, of the person adopting d. Pre-Adoption Procedures
or to be adopted.
Note: A decree of adoption shall be effective as a. Voluntary commitment by biological
of the date the original petition was filed. It also parent(s) wanting to put their child up
applies in case the petitioner dies before the for adoption
issuance of the decree of adoption to protect 1. Counseling on their options other than
the interest of the adoptee. [Sec. 13, RA 8552] adoption
2. Explaining to them the implications of
c. Foundlings losing their parental authority over the
child
Foundling shall refer to a deserted or 3. Continuing services shall be provided
abandoned infant or a child found, with after relinquishment to cope with
parents, guardian, or relatives being unknown, feelings of loss, etc. and other services
or a child committed in an orphanage or for the reintegration to the community
charitable or similar institution with unknown of the biological parent(s)
facts of birth and parentage and registered in 4. Biological parent(s) who decided to put
the Civil Register as a foundling. [Sec. 3(h), the child for adoption shall sign the
Rules And Regulations To Implement The Deed of Voluntary Commitment (DVC),
Domestic Adoption Act Of 1998] which shall be rescissible within 3
months from signing of the same
When is a child considered a foundling? b. Involuntary commitment of
It shall be the duty of the DSWD or the child- abandoned/neglected child
placing or child-caring agency which has 1. Filing of a petition at Regional DSWD
custody of the child to exert all efforts to locate in the form of an affidavit and with the
his/her unknown biological parent(s). If such required supporting documents
efforts fail, the child shall be registered as a 2. Posting of the petition, then
foundling and subsequently be the subject of recommendation by the Regional
legal proceedings where he/she shall be Director of the DSWD (5 days each)
declared abandoned. [Sec. 5, RA 8552] 3. Issuance of certification by DSWD
If efforts to locate the child's parent/s fail, the Secretary declaring the child legally
child shall be registered as a foundling and available for adoption within 3 months
within three (3) months from the time he/she is following involuntary commitment
found, be the subject of legal proceedings c. Required supporting documents for a
where he/she shall be declared abandoned. petition for the declaration of
[Sec. 5, Rules And Regulations To Implement involuntary commitment:
The Domestic Adoption Act Of 1998] 1. Social Case Study Report by DSWD /
Domestic laws on adoption also support the LGU / institution charged with child’s
principle that foundlings are Filipinos. These custody
laws do not provide that adoption confers 2. Proof of efforts to locate the child’s
citizenship upon the adoptee. Rather, the parents/known relatives
adoptee must be a Filipino in the first place to a. Written certification that a
be adopted. The Inter-Country Adoption Act local/national radio/TV case
(R.A. No. 8043), the Domestic Adoption Act was aired on 3 different
(R.A. No. 8552) and the Court's A.M. No. 02- occasions
6-02-SC or the "Rule on Adoption," all b. Publication in 1 newspaper of
expressly refer to "Filipino children" and general circulation
include foundlings as among Filipino children c. Police report/barangay
certification of due diligence
Page 100 of 532

d. Returned registered mail to last

known address of parents
3. Birth certificate, if available
4. Recent photo and photo upon
abandonment of child
e. Adoption Procedures
Note: DSWD must certify the child as legally
available for adoption as a prerequisite for
adoption proceedings. [RA 9253]
After the decree of adoption, the court may also

issue a travel authority, if needed.
The case study report by the DSWD/LGU is

indispensable. Without it, the adoption decree
shall be void. [DSWD v. Judge Belen, RTJ-96-
1362 (1997)]
Page 101 of 532

Page 102 of 532

f. Who may not adopt 3. Succession [Sec. 18, RA 8552]
Those who may not adopt [Art. 184, FC, In legal and intestate succession, the adopter
amended by RA 8552]: and the adoptee shall have reciprocal rights of
1. The guardian, with respect to the ward, succession without distinction from legitimate
prior to the approval of the final accounts filiation. However, if the adoptee and his/her
rendered upon the termination of the biological parents had left a will, the law on
guardianship testamentary succession shall govern.
2. Any person convicted of a crime of moral
turpitude Legal or intestate succession to the estate of
the adopted shall be governed by the following
g. Rights of an Adopted Child rules:
a. Legitimate and illegitimate children,
1. Parental Authority [Sec. 16, RA 8552] descendants and the surviving spouse of
the adoptee shall inherit in accordance with
Except in cases where the biological parent is the ordinary rules of legal/intestate
the adopter’s spouse, all legal ties between succession.
biological parent and adoptee shall be severed, b. When the surviving spouse OR illegitimate
and the same shall then be vested on the children AND adopters concur, they shall
adopters. inherit on a 50-50 basis.
c. When the surviving spouse AND
The general effect of the adoption decree is to illegitimate children AND adopters concur,
transfer to the adopting parents the parental they shall inherit on a 1/3-/1/3-1/3 basis.
authority of the parents by nature, as if the child d. When only adopters survive, they shall
had been born in lawful wedlock. [Tolentino] inherit 100% of the estate.
e. When only collateral blood relatives
The relationship established by adoption is survive, ordinary rules of legal or intestate
limited to the adopting parent and does not succession shall apply. [Art. 190 (as
extend to his other relatives, except as amended), FC]
expressly provided by law. [Tolentino]
Between adoptee and adopter
The law does not prohibit the biological The adopter and adoptee have reciprocal
parent(s) from entering an agreement with the rights of succession without distinction from
adopters on post adoption visitation. Neither do legitimate children in legal and intestate
our laws compel the adopters to grant visitation succession. [Sec. 18, RA 8552]
rights if such is not beneficial to the child.
[Aguiling-Pangalangan] Between adoptee and adopter’s relatives
The relationship created by adoption is
2. Legitimacy [Sec. 17, RA 8552] exclusively between the adopter and the
adopted. Hence, the adopted child has no right
The adoptee shall be considered the legitimate to inherit from the relatives of his adopted
son/daughter of the adopters for all intents and parents. [Aguiling-Pangalangan]
purposes, and as such is entitled to all rights
and obligations provided by law to legitimate While an adopted child has the same rights as
children born to them without discrimination of a legitimate child, these rights do not include
any kind. The adoptee is entitled to love, the right of representation. The relationship
guidance, and support in keeping with the created by the adoption is between only the
means of the family. adopting parents and the adopted child and
does not extend to the blood relatives of either
party. [Sayson v. CA, supra]
Page 103 of 532

Between adoptee and biological parents acquiring Philippine citizenship. A Filipino

One effect of adoption is that the adopted shall adopted by an alien does not lose his
remain an intestate heir of his parents and Philippine citizenship.
other blood relatives. [Art. 189, FC]
Since many biological parents relinquish their The right to confer citizenship belongs to the
child for adoption by reason of poverty or State (political) and cannot be granted by a
emotional unpreparedness, their biological citizen through adoption. Adoption creates a
child should not be prevented from inheriting if relationship between the adopter and adoptee,
they were able to improve their lot. There is not between the State and the adoptee.
nothing that precludes the biological parents to [Tolentino]
give their biological child his or her rightful
share in their last will and testament. [Aguiling- h. Rescission of Adoption
Pangalangan]
Adoptee may file action for rescission, with
4. Name [Art. 365, CC.] the assistance of DSWD if he/she is a minor or
over 18 but incapacitated, based on the
An adopted child shall bear the surname of following grounds [Sec. 19, RA 8552]:
the adopter. 1. Repeated physical and verbal
maltreatment by adopters despite having
While an effect of adoption is that the adoptee undergone counseling
shall bear the surname of the adopter, the 2. Attempt on life of adoptee
change of surname of the adopted child is more 3. Sexual assault or violence
an incident rather than the object of adoption 4. Abandonment or failure to comply with
proceedings. The purpose of adoption is to parental obligations
effect a new status of relationship between the
child and his or her adoptive parents, and the Adoption is a privilege that is governed by the
change of name is more of an incident only state’s determination on what it may deem to
than the object of the proceeding. [Republic v. be for the best interest and welfare of the child,
CA and Wong, G.R. No. 97906 (1992)] and as a corollary, a right of action given by
statute may be taken away any time before it
Sec. 13 of RA 8552 allows the change of first has been exercised. [Lahom v. Sibulo, G.R.
name to be instituted in the same No. 143989 (1992)]
proceeding as the adoption: “the decree of
adoption shall state the name by which the Adoption, being in the best interest of the child,
child is to be known.” shall not be subject to rescission by the
adopter. However, the adopter may disinherit
The law is silent as to what middle name the the child based on causes enumerated in Art.
adoptee may use but the SC has held that an 919 of CC:
adoptee is entitled to all the rights provided by 1. Conviction of an attempt on the life of the
law to a legitimate child, including the right to adopter
bear the surname of her father and mother. 2. Having accused, without grounds, the
[In re: Adoption of Stephanie Nathy Astorga adopter of a crime punishable by
Garcia, G.R. No. 148311 (2005)] imprisonment for more than 6 years
3. Conviction of adultery/concubinage with
5. Nationality the adopter’s spouse
4. Having caused the adopter to make or
Adoption does not confer citizenship of the change a will by force, intimidation or
adopter to the adopted. Under Sec. 3, Art. IV of undue influence
the Constitution, Philippine citizenship may be 5. Refusal without just cause to support the
lost/acquired [only] in the manner provided by adopter
law. The adoption of an alien is not a means of 6. Maltreatment of the adopter by word/deed
Page 104 of 532

7. Living a dishonorable/disgraceful life Sec. 8 of the SC Rule on Adoption requires that

8. Conviction of a crime which carries with it the petition that seeks to rectify a simulated
the penalty of civil interdiction birth allege that:
1. Petitioner is applying for rectification of a
Effects of Rescission [Sec. 20, RA 8552]: simulated birth;
1. Restoration of parental authority of the 2. The simulation of birth was made prior to
adoptee’s biological parent(s) OR the legal the date of effectivity of RA 8552 and the
custody of the Department if the adoptee is application for rectification of the birth
a minor or incapacitated. registration and the petition for adoption
2. Extinguishing of the reciprocal rights and were filed within five years from said date;
obligations of the adopters and adoptee. 3. The petitioner made the simulation of birth
3. Cancellation of the new birth certificate of for the best interests of the adoptee; and
the adoptee as ordered by the court and 4. The adoptee has been consistently
restoration of the adoptee’s original birth considered and treated by the petitioner as
certificate. his own child.
4. Reverting successional rights to its status
prior to adoption but not only as of the date
of judgment of judicial rescission. 2. RA 8043: Law on Inter-
5. Vested rights acquired prior to judicial Country Adoption
rescission shall be respected.
Inter-Country Adoption refers to the socio-
Note: Rescission contemplates a situation legal process of adopting a Filipino child by a
where the adoption decree remains valid until foreigner or a Filipino citizen permanently
its termination. residing abroad where the petition is filed, the
supervised trial custody is undertaken, and the
i. Rectification of Simulated Birth decree of adoption is issued outside the
Philippines.
Simulation of birth is the tampering of the civil
registry making it appear in the birth records When Allowed
that a certain child was born to a person who is No child shall be matched to a foreign adoptive
not his or her biological mother, causing such family unless it can be satisfactorily shown that
child to lose his or her true identity and status. the child cannot be adopted locally [Sec. 11,
[Sec. 3(j), RA 8552] RA 8043].
Any person who shall cause the fictitious Who Can Adopt
registration of the birth of a child under the
name(s) of a person who is not his or her Sec. 9, RA 8043. Any alien or Filipino citizen
biological parents shall be penalized for permanently residing abroad may file an
simulation of birth with the penalty of prision application for inter-country adoption of a
mayor in its medium period and a fine not Filipino child if he/she:
exceeding Fifty thousand pesos (a) Is at least twenty-seven (27) years of
(P50,000.00). [Sec. 21(b), RA 8552] age and at least sixteen (16) years
older than the child to be adopted, at
Three-in-one Procedure the time of application unless the
• Correction of entries in birth certificate adopter is the parent by nature of the
child to be adopted or the spouse of
• Deed of Voluntary Commitment or
such parent;
Declaration of abandonment
(b) If married, his/her spouse must
• Adoption decree
jointly file for the adoption;
(c) Has the capacity to act and assume
all rights and responsibilities of
Page 105 of 532

3. Deed of Voluntary Commitment /

parental authority under his national
Decree of Abandonment / Death
laws, and has undergone the
Certificate of parents
appropriate counseling from an
4. Medical Evaluation / History
accredited counselor in his/her
5. Psychological Evaluation, if necessary
country;
6. Recent photo of the child [Sec. 8]
(d) Has not been convicted of a crime
involving moral turpitude;
Inter-Country Adoption Procedure
(e) Is eligible to adopt under his/her
national law;
1. Pre-Adoptive Placement Costs
(f) Is in a position to provide the proper
care and support and to give the i. Sec. 12, RA 8043. The
necessary moral values and applicant(s) shall bear the
example to all his children, including following costs incidental to
the child to be adopted; the placement of the child;
(g) Agrees to uphold the basic rights of (a) The cost of bringing the child from
the child as embodied under the Philippines to the residence of
Philippine laws, the U.N. Convention the applicant(s) abroad, including all
on the Rights of the Child, and to travel expenses within the
abide by the rules and regulations Philippines and abroad; and
issued to implement the provisions of (b) The cost of passport, visa, medical
this Act; examination and psychological
(h) Comes from a country with whom the evaluation required, and other
Philippines has diplomatic relations related expenses.
and whose government maintains a
similarly authorized and accredited
The Inter-Country Adoption Board shall also
agency and that adoption is allowed
collect fees, charges, and assessments [Sec.
under his/her national laws; and
13].
(i) Possesses all the qualifications and
none of the disqualifications
2. Venue for Filing Applications
provided herein and in other
applicable Philippine laws.
Applications shall be filed either with:
a. The Philippine Regional Trial Court
Who Can be Adopted having jurisdiction over the child, or
1. Only a legally-free child may be the with
subject of inter-country adoption [Sec. b. The Board, through an intermediate
8]. agency (governmental or accredited
! A legally-free child is one who agency) in the country of the
has been voluntarily or prospective adoptive parents [Sec. 10].
involuntarily committed to the
DSWD of the Philippines, in 3. Family Selection / Matching Process
accordance with the Child and
Youth Welfare Code [Sec. 3(f)]. The Board shall ensure that inter-country
2. A Filipino child [Sec. 3(a)] adoption is done in the best interest of the child
3. Below 15 years old [Sec. 3(b)] [Sec. 7].
In order that such child may be considered for The matching of the child with an applicant
placement, the following documents must be involves three stages: (1) pre-matching, (2)
submitted to the Board: matching conference, and (3) post-matching
1. Child study conference [Sec. 37, RA 8043 Amended IRR].
2. Birth Certificate / Foundling Certificate Before the Board approves the matching
Page 106 of 532

proposal, no matching arrangement shall be shall exercise substitute parental authority over
made between the applicant and the child’s the child. [Sec. 44, RA 8043 Amended IRR]
parents/guardians or custodians concerning a
particular child, except in cases of adoption of The trial custody shall last for six (6) months
a relative or in cases where the child’s best during which the Central Authority and/or the
interests is at stake [Sec. 38, RA 8043 FAA shall be responsible for the pre-adoptive
Amended IRR]. This is to preserve the integrity placement, care and family counseling of the
of the adoption proceedings. child. [Sec. 45, RA 8043 Amended IRR]
4. Applicant’s Acceptance Any serious ailment, injury or abuse of the child

Once the matching proposal is approved, a from the adoptive parent(s) or from other
notice of matching shall be sent to the household members or the adoptive parent(s)
concerned Central Authority or foreign suffer from any serious ailment or injury that will
adoption agency within five (5) days. make the adoption untenable shall be reported
to the Board. In the event that all efforts to
The applicant/s shall notify the Central restore the parent-child relationship between
Authority or Foreign Adoption Agency (FAA) in the child and applicant/s fail, the placement
writing of their decision on the matching may be terminated and the child may be given
proposal within fifteen (15) working days from a new placement or repatriated. [Secs. 46, 48,
receipt of said proposal. 49, RA 8043 Amended IRR]
If the applicant/s needs additional information 8. Petition for Adoption

about the child and/or they need more time to If a satisfactory pre-adoptive relationship is
make a decision, an extension of thirty (30) formed between the applicant/s and the child,
working days may be granted. [Sec. 37, RA the Board shall transmit an Affidavit of Consent
8043 Amended IRR] to the Adoption. The Central Authority and/or
the FAA shall file the petition for adoption of the
5. Pre-Departure Preparation of the Child child to the proper court or agency in
The concerned Child Placing Agency shall accordance with their national law. [Secs. 50
prepare the child for his/her placement to and 51, RA 8043 Amended IRR]
minimize the anxiety and trauma due to
separation from persons with whom the child 9. Decree of Adoption
may have formed attachments. [Sec. 41, RA A copy of the final Decree of Adoption or its
8043 Amended IRR] equivalent shall be transmitted by the Central
Authority and/or the FAA to the Board within
6. Physical Transfer of the Child one (1) month after its issuance. [Sec. 52, RA
For not later than twenty (20) working days 8043 Amended IRR]
after the issuance of the child’s visa, the
adoptive parents or anyone of them shall Where the petition for adoption was granted
personally fetch the child from the Philippines. after the child had shot and killed a girl, the
The applicant shall stay in the country with the Supreme Court did not consider the retroactive
child for at least five (5) days to allow bonding effect given to the decree of adoption so as to
among them. impose a liability upon the adopting parents at
a time when the adopting parents had no actual
The unauthorized failure to do so may result in or physical custody over the child. Retroactive
the cancellation of the Placement Authority. effect may perhaps be given where such is
[Sec. 42, RA 8043 Amended IRR] essential to permit the accrual of some benefit
or advantage in favor of the adopted child. In
7. Trial Custody the instant case, however, to hold that parental
Trial custody begins upon the physical transfer authority had been retroactively lodged in the
of the child to the applicant who, as custodian, adopting parents so as to burden them with
Page 107 of 532

liability for a tortious act that they could not keeping with the financial capacity of the family
have foreseen and which they could not have [Art. 194(1), FC].
prevented would be unfair and a. Education includes a person’s schooling or
unconscionable. [Tamargo v. CA, G.R. No. training for some profession, trade or
85044 (1992)] vocation, the right to which shall subsist
beyond the age of majority [Art. 194, FC].
Adoption is a juridical act, proceeding in rem. b. Transportation includes expenses in going
Because it is artificial, the statutory to and from school, or to and from place of
requirements in order to prove it must be strictly work [Art. 194, FC].
carried out. Petition must be announced in
publications and only those proclaimed by the
court are valid. Adoption is never presumed. 2. Who are obliged to give
[Lazatin v. Campos, G.R. No. L-54955-54 support
(1979)]
Those obliged to support each other are:
Validity of facts behind a final adoption decree a. Spouses,
cannot be collaterally attacked without b. Legitimate ascendants and descendants,
impinging on that court’s jurisdiction. [Santos v. c. Parents and their children (legitimate and
Aranzanso, G.R. No. L-23828 (1966)] illegitimate) and the children of the latter
(legitimate and illegitimate),
Participation of the appropriate government d. Legitimate brothers and sisters, whether of
instrumentality in performing the necessary full or half-blood; [Art. 195, FC]
studies and precautions is important and is e. Illegitimate brothers and sisters, whether of
indispensable to assure the child’s welfare. full or half-blood
[DSWD v. Belen, GRTJ-96-1362 (1997)] ! Except when the need for support of
one (who is of age) is due to a cause
Consent for adoption must be written and imputable to his/her fault or negligence
notarized. [Landingin v. Republic, G.R. No. [Art. 196, FC]
164948 (2006)]
Mutual Obligation to Support of Spouses
Although an adopted child is deemed to be a [Arts. 142, 143, FC]
legitimate child and have the same rights as the ! A wife’s right to support depends upon her
latter, these rights do not include the right of status as such.
representation (because the adopted child has ! A wife is entitled to expenses of the
no right to inherit from the grandparent). The litigation, including attorney’s fees.
relationship created by the adoption is between ! If a wife is forced to leave the conjugal
only the adopting parents and the adopted home for a justifiable cause, she is entitled
child. It does not extend to the blood relatives to separate maintenance.
of either party. [Sayson v. CA, G.R. No. 89224- ! In an action by the wife against the
25 (1992)] husband, the court may grant alimony
pendente lite.
J. SUPPORT Note: Both legitimate and illegitimate children

are entitled to support. The only difference is
the source of support which, for illegitimate
1. What it comprises children, is the parent’s separate properties.
Where the illegitimate parent is legally married
Support consists of everything indispensable to another person, their CPG or ACP cannot
for sustenance, dwelling, clothing, medical answer for support for the illegitimate child of
attendance, education and transportation, in one of them unless the parent has no adequate
separate property, in which case, support will
Page 108 of 532

be taken from the CPG or ACP subject to due to the physician [Pelayo v. Lauron, G.R.
reimbursement [Arts. 122, 197, FC]. No. L-4089 (1909)].
3. Source of support In Case of Multiple Obligors

When the obligation to give support falls upon
CPG or ACP shall answer for the support of two or more persons, the payment of the same
the: shall be divided between them in proportion to
(1) spouse, their resources [Art. 200(1), FC].
(2) their common children, and
(3) the legitimate children of their spouse Also, in case of urgent need and by special
[Arts. 94 and 121, FC]. circumstance, the judge may order only one
obligor to furnish support without prejudice to
The separate property of the obligor shall reimbursement from other obligors of the share
answer for the support of the: due from them [Art. 200(2), FC].
(1) Legitimate ascendants,
(2) (all other) descendants, whether In Case of Multiple Recipients
legitimate or illegitimate, and If there are multiple recipients and only one
(3) Brothers and sisters, whether obligor, and the latter has no sufficient means
legitimate or illegitimately related. to satisfy all claims:
If no separate property, the ACP/CPG (if a. Observe order in Art. 199 as to whose
financially capable) shall advance the support, claim shall be satisfied first;
to be deducted from the obligor’s share upon b. But if the concurrent obligees are the
liquidation of such regime [Art. 197, FC]. spouse and a child subject to parental
authority, the child shall be preferred [Art.
200(3), FC].
4. Order of support
The above preference given to a child under
Art. 199, FC. Whenever two or more parental authority over the spouse should
persons are obliged to give support, the prevail only if the person obliged to support
liability shall devolve upon the following pays it out his separate property. So if the
persons in the order herein provided: support comes from ACP or CPG, the above
1. The spouse; rule of preference for the child does not apply
2. The descendants in the nearest [Tolentino].
degree;
3. The ascendants in the nearest Support Given by a Stranger
degree; and Art. 206, FC. When, without the knowledge
4. The brothers and sisters. of the person obliged to give support, it is
given by a stranger, the latter shall have a
The order of liability among ascendants and right to claim the same from the former,
descendants would be: unless it appears that he gave it without
(1) Legitimate children and descendants, intention of being reimbursed.
(2) Legitimate parents and ascendants, and
(3) Illegitimate children and their descendants The stranger contemplated in this provision is
[Tolentino]. one who does not have any obligation to
support the recipient.
Example: Even if the parents-in-law were the
ones who called for the physician’s services for
the childbirth of their daughter-in-law, it is the
woman’s husband who is bound to pay the fees
Page 109 of 532

Person Obliged Refuses or Fails to Give Furthermore, contractual support shall be

Support subject to adjustment whenever modification is
necessary due to changes in circumstances
Art. 207, FC. When the person obliged to
manifestly beyond the contemplation of the
support another unjustly refuses or fails to
parties [Art. 208, FC].
give support when urgently needed by the
latter, any third person may furnish support
to the needy individual, with the right of 6. Manner and time of payment
reimbursement from the person obliged to
give support. This Article shall particularly Art. 203, FC. The obligation to give support
apply when the father or mother of a child shall be demandable from the time the
under the age of majority unjustly refuses to person who has a right to receive the same
support or fails to give support to the child needs it for maintenance, but it shall not be
when urgently needed. paid except from the date of judicial or
extrajudicial demand.
Example: The father who abandoned his two
daughters in their tender years, was ordered by Support pendente lite may be claimed in
the Court to pay support in arrears. The Court accordance with the Rules of Court.
said that the father could not plausibly expect
his children of tender years to demand support Payment shall be made within the first five
from him. In like manner, the uncle who lent days of each corresponding month or when
money for the education and support of the two the recipient dies, his heirs shall not be
sisters, may exact reimbursement from the obliged to return what he has received in
father [Lacson v. Lacson, G.R. No. 150644 advance.
(2006)].
Payment of alimony is demandable from the
5. Amount of support moment the necessity for it arises and is
payable from the time of extrajudicial demand.
The amount of support is in proportion to the Unless support is demanded, it is presumed
means of the provider and the needs of the that such necessity does not exist.
receiver, and can be reduced or increased if
such circumstances change [Arts. 201 and Support in arrears may be subject to
202, FC]. compromise. The Court may consider whether
the support is no longer indispensable for the
The amount of support is variable and, for this recipient's sustenance [Tolentino].
reason, no final judgment on the amount of
support is made as the amount shall be in Two Options to Fulfill Obligation to Give
proportion to the resources or means of the Support
giver and the necessities of the recipient a. Payment of the amount; or
[Gotardo v. Buling, G.R. No. 165166 (2012)]. b. Receiving and maintaining the recipient in
the home of the provider
Contractual Support or That Given By Will
The excess in amount beyond that required for Requisites:
legal support shall be subject to levy on 1. The obligor has his own home or domicile,
attachment or execution [Art. 208, FC]. and
2. There is no moral or legal reason which
Reason: The amount of support agreed upon prevents the recipient from living in the
in the contract or given in the will can be more obligor’s home or domicile [Art. 204, FC].
than what the recipient needs [Sempio-Diy].
Page 110 of 532

7. Renunciation and termination Note: In Art. 100(1), FC, de facto separation

does not affect the ACP and the CPG, except
The obligation of spouses to mutual support that the spouse who leaves the conjugal home
lies on the existence of marriage bonds. Once without just cause shall not be entitled to
the marriage has been declared null, this support.
obligation ceases.
9. Procedure in applications for
The Court held that the validity of marriage can support
be collaterally attacked in an action for support.
Although the suit is not instituted to directly Petitions for support and/or acknowledgement
address the issue of validity, the Court deems may be filed with Family Courts which have
it essential to the determination of the issue on original jurisdiction over such cases [Sec. 5,
support. [De Castro v. Assidao-De Castro, RA 8369].
G.R. No. 170172 (2008)]
In cases involving violence among immediate
In case of separation in fact between husband family members living in the same household,
and wife, the spouse who leaves the conjugal the court may order the temporary custody of
home or refuses to live therein, without just children in all civil actions for their custody. The
cause, shall not have the right to be supported court may also order support pendente lite,
[Art. 100(1), FC]. including deduction from the salary and use of
conjugal home and other properties in all civil
Under Art. 194, FC, the obligation to support a actions for support. [Sec. 7, RA 8369]
recipient’s education may continue even after
the person entitled has reached the age of A woman or her child experiencing violence
majority. may also be granted a protection order which
may include directing the respondent to
However, the Court recognizes that although provide support to the women and/or her child
the duty to support is a continuing one, the if entitled to legal support. An appropriate
child’s right to support and the parent’s right to percentage of the income or salary of the
custody and services are reciprocal: the father, respondent shall be withheld regularly by the
in return for maintenance and support may respondent’s employer for it to be automatically
establish and impose reasonable regulations remitted to the woman. Failure to remit and/or
for his child. In case a child voluntarily withhold or any delay in the remittance of
abandons the parent’s home for the purpose of support without justifiable cause shall render
avoiding parental discipline and restraint, that the respondent or his employer liable for
child forfeits the claim to support. [Roe v. Doe, indirect contempt of court. [Sec. 8(g), RA 9262]
324 N.Y.S. 2d 71 (1971)]
In case the filiation of a child claiming for
8. Support pendente lite support is disputed, the rules on proving
filiation apply. An order for support must be
Pending legal separation or annulment, and for issued only if paternity or filiation is established
declaration of nullity, support pendente lite for by clear and convincing evidence; the reason
spouses and children will come from the being that such order may create an
ACP/CPG. After final judgment granting the unwholesome situation in the lives of the
petition, mutual support obligation between parties. [Perla v. Baring, G.R. No. 172471
spouses ceases. However, in legal separation, (2012)]
the court may order the guilty spouse to give
support to the innocent spouse. [Art. 198, FC]
Page 111 of 532

o Upon judicial declaration of

K. PARENTAL AUTHORITY abandonment of the child, in a case
filed for the purpose;
o Upon the final judgment of a
competent court divesting the party
1. General Provisions concerned of parental authority, or;
o Upon judicial declaration of
What Comprises Parental Authority [Art. absence or incapacity of the
209, FC] person exercising parental
• Caring for and rearing of children for civic authority
consciousness and efficiency, and;
• Development of the moral, mental, and 2. Substitute parental authority
physical character and well-being of
children. When Substitute Parental Authority is
Exercised [Art. 214, FC]
What Characterizes Parental Authority [Art. In case of death, absence, or unsuitability of
210, FC] the parents
General Rule: Parental authority is not
renounceable and nontransferable. Who Exercises Substitute Parental
Authority (in order)
Exception: In cases provided by law. • The surviving grandparent [Art. 214, FC].
Who Exercises Parental Authority [Arts. Exception: When several survive, the one
211-213, FC] designated by the court, taking into
General Rule: Joint exercise by the father and account all relevant considerations [Art.
the mother of a child [par. 1, Art. 211, FC]. 214, FC].
Exceptions: • The oldest brother or sister, over 21 years

• In case of disagreement, the father’s of age [Art. 216, FC].
decision prevails [par. 2, Art. 211, FC]. • The child’s actual custodian, over 21 years
o Exception to the exception: If of age [Art. 216, FC].
there is judicial order to the
contrary. 3. Special parental authority
• In case of absence or death of either
parent, the parent present or alive [Art. 212, Who Exercises Special Parental Authority
FC]. [Art. 218, FC]
• In case of separation of the parents, the • The school (its administrators and
parent designated by the court [Art. 213, teachers), or;
FC]. • The individual, entity, or institution
engaged in child care
When Terminated [Art. 228, FC]
• Art. 228, FC When is Special Parental Authority
o Upon the death of the parents; Exercised [Art. 218, FC]
o Upon the death of the child; • While the child is under their supervision,
o Upon the emancipation of the child; instruction, or custody
• Art. 229, FC • During all authorized activities, whether
o Upon adoption of the child; inside or outside the premises of the
o Upon appointment of a general school, entity, or institution
guardian;
Page 112 of 532

Substitute parental authority and special interest in civic affairs, and inspire in them
parental authority, distinguished compliance with the duties of citizenship;
4. To enhance, protect, preserve, and
DIFFERENCE SUBSTITUTE SPECIAL maintain the children’s physical and mental
health at all times;
Who Grandparents Schools 5. To furnish the children with good and
Exercises , oldest (administrator wholesome educational materials,
sibling, or s and supervise their activities, recreation and
court- teachers) or association with others, protect them from
appointed individuals, bad company, and prevent them from
guardian entities having habits detrimental to their health,
engaged in studies, and morals;
child care 6. To represent the children in all matter
affecting their interests;
When Only in case Concurrent 7. To demand from the children respect and
Exercise of death, with parental obedience;
d absence, or authority or 8. To impose discipline on the children as
unsuitability of substitute may be required under the circumstances,
parents parental and;
authority 9. To perform such other duties as are
imposed by law upon parents and
How Subsidiarily Principally and guardians.
Liable liable for solidarily liable
damages for damages Civil Liability [Art. 221, FC]
caused by the caused the Parents and other persons exercising parental
minor minor’s acts or authority shall be civilly liable for the injuries
omissions and damages caused by the acts or omissions
while under of their unemancipated children living in their
their custody, company and under their personal authority
supervision, or subject to the appropriate defenses provided
instruction by law.
Disciplinary Measures over the Child [Art.

4. Effect of parental authority 223, FC]
over the child’s person Persons exercising parental authority over a
child may petition the proper court of the place
Rights and Duties of Persons Exercising where the child resides for an order providing
Parental Authority upon the Person of a for disciplinary measures over the child.
Child [Art. 220, FC].
1. To keep the children in their company, to Note: The child shall be entitled to the
support, educate and instruct them by right assistance of counsel, either of his choice or
precept and good example, and to provide appointed by the court, and a summary hearing
for their upbringing in keeping with their shall be conducted wherein the petition and the
means; child shall be heard.
2. To give the children love and affection,
advice and counsel, companionship and However, if in the same proceeding the court
understanding; finds the petitioner at fault, irrespective of the
3. To provide the children with moral and merits of the petition, or when the
spiritual guidance, inculcate in them circumstances so warrant, the court may also
honesty, integrity, self-discipline, self- order the deprivation or suspension of parental
reliance, industry and thrift, stimulate their
Page 113 of 532

authority or adopt such other measures as it The petition shall be considered as a summary
may deem just and proper. special proceeding, with the ordinary rules on
guardianship being merely suppletory.
For Persons Exercising Substitute Parental
Authority [Art. 233, par. 1, FC] Except the following, in which case the ordinary
The person exercising substitute parental rules on guardianship shall apply:
authority shall have the same authority over the 1. When the child is under substitute parental
person of the child as the parents. authority;
2. When the guardian is a stranger, or;
5. Effects of parental authority 3. A parent has remarried.
over the child’s property Trusts
If the parents entrust the management or
Joint Legal Guardianship [Art. 225, par. 1, administration of any of their properties to an
FC]. unemancipated child, the net proceeds of such
The father and the mother shall jointly exercise property shall belong to the owner.
legal guardianship over the property of their
unemancipated child without the necessity of a The child shall be given a reasonably monthly
court appointment. allowance in an amount not less than that
which the owner would have paid if the
In case of disagreement, the father’s decision administrator were a stranger, unless the
shall prevail. owner grants the entire proceeds to the child.
Exception: Unless there is judicial order to the In any case, the proceeds thus given in whole
contrary. or in part shall not be charged to the child’s
legitime.
Nature of Administration
The property of the unemancipated child
earned or acquired with his work or industry or 6. Suspension or termination of
by onerous or gratuitous title shall belong the parental authority
child in owner and shall be devoted exclusively
to the latter’s support and education, unless the When Permanently Terminated [Arts. 228-
title or transfer provides otherwise. 229, FC].
1. Upon the death of the parents;
The right of the parents over the fruits and 2. Upon the death of the child, or;
incomes of the child’s property shall be limited 3. Upon the emancipation of the child.
primarily to the child’s support and secondarily
to the collective daily needs of the family [Art. Unless subsequently revived by final judgment,
226, FC]. there is permanent termination [Art. 229, FC]:
1. Upon adoption of the child;
Bonds 2. Upon appointment of a general guardian;
Where the market value of the property or the 3. Upon judicial declaration of abandonment
annual income of the child exceeds P50,000, of the child in a case filed for the purpose;
the parent concerned shall be required to 4. Upon final judgment of a competent court
furnish a bond in such amount as the court may divesting the party concerned of parental
determine, but not less than ten per centum authority, or;
(10%) of the value of the property or annual a. Also mandatory if the person
income, to guarantee the performance of the exercising parental authority has
obligations prescribed for general guardians subjected the child or allowed him
[Art. 225, par. 2, FC]. to be subjected to sexual abuse
[Art. 232, FC].
Page 114 of 532

5. Upon judicial declaration of absence or 7. Solo parents (R.A. No. 8972)

incapacity of the person exercising RA 8972 Solo Parents' Welfare Act
parental authority.
When Suspended [Arts. 230-231, FC]. It is the policy of the State to promote
the family as the foundation of the
1. Upon conviction of the parent or the person nation, strengthen its solidarity and
exercising the same of a crime which ensure its total development. Towards
Principle
carries with it the penalty of civil this end, it shall develop a
interdiction; comprehensive program of services
2. Upon final judgment of a competent court for solo parents and their children.
in an action filed for the purpose or in a [Sec. 2, RA 8972]
related case, if the parent or the person
"Solo parent" - any individual who falls
exercising the same: under any of the following categories:
a. Treats the child with excessive (1) A woman who gives birth as a result
harshness or cruelty; of rape and other crimes against
b. Gives the child corrupting orders, chastity even without a final
counsel or example; conviction of the offender:
Provided, That the mother keeps
c. Compels the child to beg, or; and raises the child;
d. Subjects the child or allows him to (2) Parent left solo or alone with the
be subjected to acts of responsibility of parenthood due to
lasciviousness death of spouse;
e. Is culpably negligent [Art. 231, par. (3) Parent left solo or alone with the
2, FC]. responsibility of parenthood while
the spouse is detained or is serving
sentence for a criminal conviction
When Reinstated [Arts. 230-231, FC]. for at least one (1) year;
1. Automatically upon service of penalty (civil (4) Parent left solo or alone with the
interdiction). responsibility of parenthood due to
2. Automatically upon pardon or amnesty of physical and/or mental incapacity of
the offender. spouse as certified by a public
medical practitioner;
3. By judicial order, if the court finds that the (5) Parent left solo or alone with the
cause therefore has ceased and will not be Concept
responsibility of parenthood due to
repeated [Art. 231, par. 4, FC]. legal separation or de facto
separation from spouse for at least
Prohibition for Persons Exercising Special one (1) year, as long as he/she is
Parental Authority [Art. 233, FC]. entrusted with the custody of the
children;
In no case shall the school administrator, (6) Parent left solo or alone with the
teacher or individual engaged in child care and responsibility of parenthood due to
exercising special parental authority inflict declaration of nullity or annulment
corporal punishment upon the child. of marriage as decreed by a court
or by a church as long as he/she is
entrusted with the custody of the
children;
(7) Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least
one (1) year;
(8) Unmarried mother/father who has
preferred to keep and rear her/his
child/children instead of having
others care for them or give them up
to a welfare institution;
Page 115 of 532

(9) Any other person who solely conditions of employment

provides parental care and support [Sec. 7, RA 8972]
to a child or children; d. Parental leave of not
(10) Any family member who assumes more than seven (7)
the responsibility of head of family working days every year,
as a result of the death, in addition to current leave
abandonment, disappearance or privileges, provided the
prolonged absence of the parents solo parent employee has
or solo parent. already rendered service
A change in the status or circumstance of at least one (1) year
of the parent claiming benefits under this [Sec. 8, RA 8972]
Act, such that he/she is no longer left e. Educational benefits,
alone with the responsibility of consisting of:
parenthood, shall terminate his/her i. Scholarship
eligibility for these benefits. programs for
qualified solo
Benefits granted to solo parents: parents and their
1. Any solo parent whose income in children in
the place of domicile falls below the institutions of
poverty threshold as set by the basic, tertiary
National Economic and and
Development Authority (NEDA) and technical/skills
subject to the assessment of the education; and
DSWD worker in the area shall be ii. Nonformal
eligible for the following assistance: education
a. Comprehensive programs
Package of Social appropriate for
Development and Welfare solo parents and
Services, consisting of: their children
i. Livelihood [Sec. 9, RA 8972]
development f. Housing benefits [Sec.
services; 10, RA 8972]
ii. Counseling g. Medical assistance [Sec.
services; 11, RA 8972]
iii. Parent 2. Any solo parent whose income is
effectiveness above the poverty threshold shall
Scope services; enjoy only the following benefits:
iv. Critical incidence a. Flexible work schedule
stress debriefing; [Sec. 6, RA 8972]
v. Special projects b. Right to be protected
for individuals in against work
need of discrimination with
protection [Sec. respect to terms and
5, RA 8972] conditions of employment
b. Flexible work schedule [Sec. 7, RA 8972]
or the right granted to a c. Parental leave of not
solo parent employee to more than seven (7)
vary his/her arrival and working days every year,
departure time without in addition to current leave
affecting the core work privileges, provided the
hours as defined by the solo parent employee has
employer [Sec. 6, RA already rendered service
8972] of at least one (1) year
c. Right to be protected [Sec. 8, RA 8972]
against work
discrimination with
respect to terms and
Page 116 of 532

1. Separation in Fact Between

L. EMANCIPATION Husband and Wife
Petition [Art. 239, FC]
1. Cause of emancipation
A verified petition alleging the following facts is
When Emancipation Takes Place [Art. 234, required when:
FC, as amended by R.A. No. 6089] • A husband and wife are separated in fact,
By attainment of majority, at the age of or, one has abandoned the other, and;
eighteen years • One of them seeks judicial authorization for
a transaction where the consent of the
2. Effect of emancipation other spouse is required by law but the
same is withheld or cannot be obtained
Effects of Emancipation
General: The petition shall attach the proposed deed, if
• Termination of parental authority over the any, embodying the transaction, if none, shall
person and property of the child describe in detail the said transaction and state
emancipated [Art. 228 [3], FC] the reason why the required consent thereto
• The person emancipated becomes cannot be secured.
qualified and responsible for all acts of civil
life. The final deed duly executed by the parties
shall be submitted to and approved by the
Exception: court.
• Persons possessing parental authority
over the emancipated individual are Separate claim for damages [Art. 240, FC].
Claims for damages by either spouse, except
needed to give their respective parental
costs of the proceedings, may be litigated only
consent until the emancipated individual is
in a separate action.
at the age of twenty-one.
• Nothing shall be construed to derogate the
Jurisdiction
duty and responsibility of parents and
Jurisdiction over the petition shall, upon proof
guardians for children and wards below
of notice to the other spouse, be exercised by
twenty-one years of age mentioned in the
the proper court authorized to hear family
second and third paragraphs of Article
cases, if one exists, or in the regional trial court
2180 of the Civil Code.
or its equivalent sitting in the place where either
• Other exceptions established by existing
of the spouses resides. [Art. 241, FC]
laws in special cases.
•
There shall be established a Family Court in
every province and city in the country. In case
M.SUMMARY JUDICIAL PROCEEDINGS where the city is the capital of the province, the
IN THE FAMILY CODE
Family Court shall be established in the
municipality which has the highest population.
Art. 238, FC. Until modified by the Supreme [Sec. 3, R.A. 8069 [Family Courts Act of 1997]]
Court, the procedural rules in this Title shall
apply in all cases provided for in this Code The Family Courts shall have exclusive original
requiring summary court proceedings. Such jurisdiction to hear and decide the following
cases shall be decided in an expeditious cases:
manner without regard to technical rules. (f). Summary judicial proceedings brought
under the provisions of Executive Order No.
209, otherwise known as the "Family Code of
Page 117 of 532

the Philippines". [Sec. 5[f], R.A. 8069 [Family 2. Incidents Involving Parental
Courts Act of 1997]]
Authority
Notification of the other spouse
Upon filing of the petition, the court shall notify Verified petitions are needed in the
the other spouse, whose consent to the following situations [Art. 249, FC]
transaction is required, of said petition, ! For an order providing for disciplinary
ordering said spouse to show cause why the measures over the child [Art. 223, FC].
petition should not be granted, on or before the ! For the approval of the bond in the
date set in said notice for the initial conference. exercise of the parents’ joint legal
The notice shall be accompanied by a copy of guardianship over the property of their
the petition and shall be served at the last unemancipated common child where
known address of the spouse concerned. [Art. the market value of the property or the
242, FC]. annual income of the child exceeds
P50,000.00 [Art. 225, FC].
Procedure ! For the approval of a deed or
A preliminary conference shall be conducted transaction where the required consent
by the judge personally without the parties of the other spouse is withheld or
being assisted by counsel. After the court cannot be obtained [Art. 239, FC].
deems it useful, the parties may be assisted by
counsel at the succeeding conferences and Jurisdiction
hearings. [Art. 243, FC]. In the proper court of the place where the child
resides [Art. 250, FC].
If the petition is not resolved at the initial
conference, said petition shall be decided in a Procedure
summary on the basis of affidavits, The rules governing Chapter 2 (summary
documentary evidence or oral testimonies at judicial proceedings for when there is
the sound discretion of the court. If testimony is separation in fact between husband and wife,
needed, the court shall specify the witnesses to Arts. 239-248, FC) shall govern herein as they
be heard and the subject-matter of their are applicable [Art. 252, FC].
testimonies, directing the parties to present
said witnesses [Art. 246, FC]. 3. Other Matters
When appearance of spouses is required Art. 248, FC
In case of non-appearance of the spouse The petition for judicial authority to administer
whose consent is sought, the court shall inquire or encumber specific separate property of the
into the reasons for his or her failure, and shall abandoning spouse and to use the fruits or
require such appearance, if possible [Art. 244, proceeds thereof for the support of the family
FC]. shall also be governed by the procedural rules
requiring summary court proceedings in the
Note: If, despite all efforts, the attendance of Family Code.
the non-consenting spouse is not secured, the
court may proceed ex parte and render RA 8369 Family Courts Act
judgment as the facts and circumstances may
The State recognizes the
warrant. In any case, the judge shall endeavor
sanctity of family life and shall
to protect the interests of the non-appearing
protect and strengthen the family
spouse [Art. 245, FC].
Principle as a basic autonomous social
institution. The courts shall
Nature of judgment
preserve the solidarity of the
The judgment of the court shall be immediately
family, provide procedures for
final and executory [Art. 247, FC].
Page 118 of 532

the reconciliation of spouses and Note: All hearings and

the amicable settlement of family conciliation of the child and
controversy. family cases shall be treated in a
manner consistent with the
The State shall likewise provide promotion of the child's and the
a system of adjudication for family's dignity and worth, and
youthful offenders which takes shall respect their privacy at all
into account their peculiar stages of the proceedings.
circumstances. [Sec. 2, RA Records of the cases shall be
8369] dealt with utmost
confidentiality and the identity
The following are the powers of parties shall not be
granted to the family courts: divulged unless necessary and
1. In cases of violence with authority of the judge. [Sec.
among immediate family 12, RA 8369]
members living in the
same domicile or The Family Courts shall have
household, the Family exclusive original jurisdiction
Court may issue a to hear and decide the following
restraining order cases:
against the accused or a) Criminal cases where
defendant upon verified one or more of the
application by the accused is below
complainant or the victim eighteen (18) years of
for relief from abuse age but not less than
[Sec. 7, RA 8369]; nine (9) years of age but
2. The court may order the not less than nine (9)
temporary custody of years of age or where
children in all civil one or more of the
actions for their custody victims is a minor at the
Concept [Sec. 7, RA 8369]; time of the commission
3. The court may also of the offense: Provided,
order support Scope That if the minor is found
pendente lite, including guilty, the court shall
deduction from the promulgate sentence
salary and use of and ascertain any civil
conjugal home and liability which the
other properties in all accused may have
civil actions for support incurred.
[Sec. 7, RA 8369];
4. Direct control and The sentence, however, shall be
supervision of the suspended without need of
youth detention home application pursuant to
which the local Presidential Decree No. 603,
government unit shall otherwise known as the "Child
establish to separate the and Youth Welfare Code";
youth offenders from
adult criminals; [Sec. 8, b) Petitions for
RA 8369] guardianship, custody of
Page 119 of 532

children, habeas corpus h) Petitions for the

in relation to the latter; constitution of the family
home;
c) Petitions for adoption of
children and the i) Cases against minors
revocation thereof; cognizable under the
Dangerous Drugs Act,
d) Complaints for as amended;
annulment of marriage,
declaration of nullity of j) Violations of Republic
marriage and those Act No. 7610, otherwise
relating to marital status known as the "Special
and property relations of Protection of Children
husband and wife or Against Child Abuse,
those living together Exploitation and
under different status Discrimination Act," as
and agreements, and amended by Republic
petitions for dissolution Act No. 7658; and
of conjugal partnership
of gains; k) Cases of domestic
violence against:
e) Petitions for support i) Women - which
and/or acknowledgment; are acts of
gender based
f) Summary judicial violence that
proceedings brought results, or are
under the provisions of likely to result in
Executive Order No. physical, sexual
209, otherwise known or psychological
as the "Family Code of harm or suffering
the Philippines"; to women; and
other forms of
g) Petitions for declaration physical abuse
of status of children as such as battering
abandoned, dependent or threats and
o neglected children, coercion which
petitions for voluntary or violate a
involuntary commitment woman's
of children; the personhood,
suspension, termination, integrity and
or restoration of parental freedom
authority and other movement; and
cases cognizable under ii) Children - which
Presidential Decree No. include the
603, Executive Order commission of
No. 56, (Series of 1986), all forms of
and other related laws; abuse, neglect,
cruelty,
exploitation,
violence, and
Page 120 of 532

Natural child:
discrimination
A natural child acknowledged by both parents
and all other
shall principally use the surname of the father.
conditions
[Art. 366, CC].
prejudicial to
their
Illegitimate child
development.
Illegitimate children shall use the surname of
their mother. [Art. 176, FC].
If an act constitutes a criminal
offense, the accused or batterer
shall be subject to criminal 2. Surname of Wife After and
proceedings and the During Marriage
corresponding penalties.
During Marriage
If any question involving any of A married woman may use:
the above matters should arise 1) Her maiden first name and surname and
as an incident in any case add her husband’s surname, or;
pending in the regular courts, 2) Her maiden first name and her husband’s
said incident shall be determined surname, or;
in that court. [Sec. 5, RA 8369] 3) Her husband’s full name, but prefixing a
word indicating that she is his wife, such as
Note: In areas where no Family “Mrs.”. [Art. 370, CC]
Court has been established or
no Regional Trial Court was After Marriage
designated by the Supreme Annulment [Art. 371, CC]:
Court due to the limited number In case of annulment of marriage and the wife
of cases, the DSWD shall is the guilty party, she shall resume her maiden
designate and assign qualified, name and signature.
trained, and DSWD accredited
social workers of the local In case of annulment of marriage and the wife
government units to handle is the innocent party, she may choose to
juvenile and family cases filed continue employing her former husband’s
in the designated Regional Trial surname, unless:
Court of the place. [Sec. 11, RA 1) The court decrees otherwise, or;
8369] 2) She or the former husband is married again
to another person
Legal Separation [Art. 373, CC]

N. USE OF SURNAMES When legal separation has been granted, the
wife shall continue using her name and
surname employed before the legal separation.
1. Surname of Children
Note: Before the legal separation, not before
Legitimate and legitimated children: the marriage.
Legitimate and legitimated children shall
principally use the surname of the father. [Art. Death of Husband [Art. 373, CC]
364, CC; Article 174 [1], FC]. A widow may use the deceased husband’s
surname as though he were still living, in
Adopted child: accordance with Article 370.
An adopted child shall bear the surname of the
adopter. [Art. 365, CC; Art. 189 [1], FC].
Page 121 of 532

3. Confusion of Names
O. ABSENCE
General Rule [Art. 374, CC]:
In case of identity of names and surnames, the
younger person shall be obliged to use such 1. Provisional measures in case
additional name or surname as will avoid
confusion. of absence
Special Rules [Art. 375, CC]: General Rule [Art. 381, CC]: A judge, at the
In case of identity of names and surnames instance of an interested party, a relative, or a
between ascendants and descendants, the friend, may appoint a person to represent the
word “Junior” can only be used by a son. absentee in all that may be necessary.
Grandsons and other direct male descendants Note: The same shall be observed when under
shall either: similar circumstances the power conferred by
1) Add a middle name or the mother’s the absentee has expired.
surname, or
2) Add the Roman numerals II, III, and so Requisites
on. 1. A person disappears from his domicile.
2. His whereabouts are unknown.
Usurpation and Unauthorized or Unlawful 3. He did not leave an agent to administer his
Use of Name [Arts. 377-378, CC]. property.
Usurpation of a name and surname may be the
subject of an action for damages and other Who May Be Appointed [Art. 383, CC]
relief [Art. 377, CC]. General Rule: The spouse present shall be
preferred, when there is no legal separation.
The unauthorized or unlawful use of another
person’s surname gives a right of action to the Exception: If there is no spouse, any
latter [Art. 378, CC]. competent person may be appointed by the
court.
4. Change of Names Safeguarding the Absentee’s Rights and
Properties [Art. 382, CC]
General Rule [Art. 376, CC]: No person can The judge shall specify the powers, obligations,
change his name or surname without judicial and remuneration of the absentee’s
authority. representative, regulating them, according to
the circumstances, by the rules concerning
Exception [Arts. 379-380, CC]: The guardians.
employment of pen names or stage names is
permitted, provided it is done in good faith and
there is no injury to third persons. Pen names 2. Declaration of absence
and stage names cannot be usurped. [Art. 379,
CC] When Absence May Be Declared [Art. 384,
CC]
Except as provided in the preceding article, no A person’s absence may be declared
person shall use different names and 1. After two years have elapsed without any
surnames. [Art. 380, CC] news about the absentee or since the
receipt of the last news, or;
2. After five years have elapsed, in case the
absentee left a person in charge of the
administration of his property
Page 122 of 532

Who May Ask for the Declaration of 4. Presumption of death

Absence [Art. 385, CC]
1. The spouse present; General Rule [Art. 390, CC]
2. The heirs instituted in a will, who may 1. Seven years, for all purposes, except
present an authentic copy of the same; succession.
3. The relatives who may succeed by the law 2. Ten years, for the purpose of opening his
of intestacy; succession.
4. Those who may have, over the property of
the absentee, some right subordinated to Exception [Art. 390, CC]
the condition of his death. If the absentee disappeared at the age of
seventy-five years, an absence of five years
Effectivity of the Judicial Declaration of shall be sufficient to open his succession.
Absence [Art. 386, CC]
The judicial declaration of absence shall not Where Disappearance is Attendant with
take effect until six months after its publication Dangerous Circumstances [Art. 391, CC]
in a newspaper of general circulation. The absentee shall be presumed dead for all
purposes, if he were absent under the following
3. Administration of the circumstances:
property of the absentee 1. Where the absentee is on board a vessel
lost during a sea voyage, or an aeroplane
Appointment of Administrator [Art. 387, CC] which is missing, who has not been heard
An administrator of the absentee’s property of for four years since the loss of the vessel
shall be appointed in accordance with Article or aeroplane;
383. 2. Where the absentee is in the armed forces
who has taken part in war, and has been
On Alienation or Encumbrance of the missing for four years;
Property Administered [Art. 388, CC] 3. Where the absentee has been in danger of
The wife who is appointed as an administratrix death under other circumstances and his
of the husband’s property cannot alienate or existence has not been known for four
encumber the husband’s property; or that of years.
the conjugal partnership, without judicial In Case of the Absentee’s Reappearance or
authority. Proof of Existence [Art. 392, CC]
If the absentee appears, or without appearing,
Cessation of Administration [Art. 389, CC] his existence is proved, he shall recover his
When Administration Ceases property in which it may be found, and the price
1. When the absentee appears personally or of any property that may have been alienated
by means of an agent; or the property acquired therewith; but he
2. When the death of the absentee is proved cannot claim either fruits or rents.
and his testate or intestate heirs appear;
3. When a third person appears, showing by Statutory Presumption on the Order of
a proper document that he has acquired Death Between Persons Who Are Called to
the absentee’s property by purchase or Succeed Each Other [Art. 43, CC]
other title. If there is a doubt, as between two or more
persons who are called to succeed each other,
Effects of Cessation as to which of them died first, whoever alleges
1. The administrator shall cease in the the death of one prior to the other, shall prove
performance of his office, and; the same; in the absence of proof, it is
2. The property shall be at the disposal of presumed that they died at the same time and
those who may have a right thereto. there shall be no transmission of rights from
one to the other.
Page 123 of 532

Disputable Presumption from the Rules of 1. The prior spouse had been absent for
Court [Rule 131, Sec. 3 [jj]] two consecutive years.
The following presumptions are satisfactory if 2. There is danger of death attendant to
uncontradicted, but may be contradicted and the disappearance as provided in
overcome by other evidence: Article 391 of the Civil Code:
(jj). That except for purposes of succession, a. A person on board a vessel lost
when two persons perish in the same calamity, during a sea voyage, or an
such as wreck, battle of conflagration, and it is aeroplane which is missing,
not shown who died first, and there are no and has not been heard of.
particular circumstances from which it can be b. A person in the armed forces
inferred, the survivorship is determined from who has taken part in war and
the probabilities resulting from the strength and has been missing.
age of the sexes, according to the following c. A person who has been in
rules: danger of death under other
circumstances and his
existence has not been known.
Age Presumed Survivor
3. The surviving spouse had a well-
Both under 15 Older founded belief that the absent spouse
was already dead.
Both above 60 Younger
One under 15, the The one under 15 P. CIVIL REGISTRAR

other above 60
Both over 15 and Male RA 9048 Correction of Error in Name

under 60; different
sexes The State created an exception to the
general rules provided by Article 376
and 412 of the Civil Code, i.e.
Both over 15 and Older
“No personal can change his name or
under 60; same sex Principle surname without judicial authority”,
and;
One under 15 or One between 15 and “No entry in a civil register shall be
over 60, the other 60 changed or corrected without a
between those ages judicial order”, respectively.
Sec. 3, RA 9048. Any person having

Rule on Subsequent Marriages direct and personal interest in the
General Rule [Art. 41, FC] correction of a clerical or
Marriage contracted by any person during the typographical error in an entry and/or
change of first name or nickname in
subsistence of a previous marriage is void. the civil register may file, in person, a
verified petition with the local civil
Exceptions [Art. 41, FC] Concept
registry office of the city or
When there is a subsequent marriage due to municipality where the record being
ordinary absence, where: sought to be corrected or changed in
1. The prior spouse had been absent for kept, or with the nearest Philippine
Consulates for citizens who are
four consecutive years; presently residing or domiciled in
2. The surviving spouse had a well- foreign countries.
founded belief that the absent spouse
was already dead. Exceptions to the General Rule as
Scope Provided by Articles 376 and 412 of
When there is a subsequent marriage due to the Civil Code
extraordinary absence, where:
Page 124 of 532

1. Correction of a clerical or correct and/or the change sought to

typographical error be made, in three copies.
a. Defined as “a mistake
committed in the Documentary Attachments:
performance of clerical 1. A certified true machine copy of
work in writing, copying, the certificate or of the page of the
transcribing or typing an registry book containing the entry
entry in the civil register or entries sought to be corrected
that is harmless and or changed;
innocuous, such as 2. At least two public or private
misspelled name or documents showing the correct
misspelled place of birth entry or entries upon which the
or the like, which is correction or change shall be
visible to the eyes or based, and;
obvious to the 3. Other documents which the
understanding and can petitioner or the city or municipal
be corrected or changed civil registrar, or the consul
only by reference to general may consider relevant
other existing record or and necessary for the approval of
records: Provided, the provision
however, That no
correction must involve
the change of Procedure [Secs. 6-7, RA 9048]
nationality, age, status 1. Petition is filed before the
or sex of the petitioner civil registrar or the consul
[Sec. 2(3)] general.
2. The petition is placed in a
2. Change of first name or nickname conspicuous place for 10
a. Grounds [Sec. 4, RA consecutive days after
9048] finding it sufficient in form
o The petitioner finds the and substance.
first name or nickname 3. The civil registrar/consul
to be ridiculous, tainted general shall act on the
with dishonor or petition and render a
extremely difficult to decision not later than five
write or pronounce; working days after the
o The new first name or completion of the publication
nickname has been requirement.
habitually and a. If the petition were
continuously used by denied, the
the petitioner and he petitioner may
has been publicly known appeal the decision
by the first name or to the Civil
nickname in the Registrar General
community, or; or file the
o The change will avoid appropriate petition
confusion before the proper
court.
Petition [Sec. 5, RA 9048]. 4. The civil registrar/consul
The petition shall be in the form of an general shall transmit a copy
affidavit, subscribed and sworn to of the decision with records
before any person authorized by law of the proceedings to the
to administer oaths, setting forth the Office of the Civil Registrar
facts necessary to establish the merits General within five working
of the petition, the petitioner’s days from the date of the
competence to testify to the matters decision.
states, and the particularly erroneous 5. The civil registrar general
entry or entries which are sought to be shall exercise the power to
Page 125 of 532

impugn such a decision by the day and month in the date of

objection on the ff grounds birth or sex of a person appearing
within 10 working days. in the civil register to entries that
a. Where the error is do not need a judicial order to be
not clerical or
changed or corrected.
typographical;
b. Where the
correction of an New Exceptions Created
entry or entries is 1. Correction of the day
substantial or and month in the date of
Concept
controversial as it birth
affects the civil 2. Correction of the sex of a
status of a person, person
or;
c. The basis used in Additional Documentary
changing the first
Attachments
name or nickname
of a person does
Generally:
not fall under Sec. 1. Certification from
4. appropriate law
6. If there were no objection, enforcement agencies
the decision shall become that petitioner has no
final and executory. pending case or no
7. If there were objection, the criminal record.
petitioner may seek For Day and Month in Date of
reconsideration or file the
Birth and Sex:
appropriate petition with the
proper court.
1. Earliest school record or
earliest school
Prohibited Violation of any provision of the act documents.
Acts [Sec. 9]. 2. Medical records.
3. Other documents issued
Scope
Sec. 9, RA 9048. by religious authorities.
Generally For Sex:
! Imprisonment of not less 1. Certification by an
than six years but not more
accredited government
than twelve years, or;
! A fine of not less than Ten
physician attesting to the
thousand pesos fact that petitioner did
(P10,000.00) but not more not undergo sex change
Penalties or sex transplant.
than One hundred thousand
pesos (P100,000.00), or;
! Both Changes in Procedure
1. The petition shall be
If the offender were a government published at least once a
official or employee, he shall suffer the
week for two
penalties provided under civil service
laws, rules, and regulations.
consecutive weeks in a
newspaper of general
circulation.
RA 10172 Correction of Error in Birthday
and Sex Prohibited Similar to RA 9048.
Acts
The State expanded the
Principle exception by including Penalties Similar to RA 9048.
typographical or clerical error in
Page 126 of 532

U.P. LAW BOC PROPERTY CIVIL LAW
PROPERTY
CIVIL LAW
Page 127 of 532

crops are to be attached in the same

A. CLASSIFICATION OF manner as realty. [Sec. 7, Rule 59]
PROPERTY
2. Everything attached to an
immovable in a fixed manner, in such
1. Immovables [Art. 415, CC] a way that it cannot be separated
therefrom without breaking the material
a. IMMOVABLES BY NATURE: or deterioration of the object.
cannot be moved from place to
Note: Whether attached by the owner
place; their intrinsic qualities have himself or some other person. (e.g.
no utility except in a fixed place. Canals, walls, aqueducts)
[pars. 1 & 8]
3. Fertilizer actually used on a piece of
1. Land, buildings, roads, and land
constructions of all kinds adhered to
the soil [415 (1)] c. IMMOVABLES BY DESTINATION:
essentially movables but by the
Note: When a building is sold to be
purpose for which they have been
demolished immediately, it is
considered a movable [Bicerra v. placed in an immovable, partake of
Teneza, G.R. No. L-16219 (1962)]. the nature of an immovable [Pars.
4, 5, 6 & 9]
Note: A building is immovable whether
erected by the owner of the land or by 1. Statues, reliefs, paintings etc.
a usufructuary or by a lessee subject to [415 (4)]
provisions of the chattel mortgage law
or the PPSA. Requisites
a. Placed by the owner or by the
2. Mines, quarries, and slag dumps, while tenant (as agent);
the matter thereof forms part of the b. With intention of attaching
bed, and waters either running or them permanently even
stagnant. [415 (8)] if adherence will not involve
breakage or injury.
b. IMMOVABLES BY c. Where the improvement or
INCORPORATION: movables but ornaments placed by the
lessee are not to pass to the
are attached to an immovable in such
owner at the expiration of the
a way as to be an integral part [Pars. lease, they remain movables
2, 3, & 7] for chattel mortgage purposes.
[Davao Sawmill v. Castillo,
1. Trees and plants and growing fruits: G.R. No. L-40411 (1935)]
only immovables when they are
attached to the land or form an 2. Machinery, receptacles,
integral part of an immovable. instruments or implements
INTENDED by the OWNER of the
Note: By special treatment of Act 1508 tenement which tend directly to
(Chattel Mortgage Law), growing crops meet the needs of the said industry
may be subject of a Chattel Mortgage. or works [415 (5)] (e.g. Sewing
For the purpose of attachment: growing
Page 128 of 532

machines owned by the owner of a Note: Vessels are considered as

garment factory) movables, although they partake the
nature of real property, in view of its
Requisites importance in the world of commerce
[Rubiso v. Rivera, G.R. No. L-11407
a. Must be machinery, receptacles, (1917)].)
instruments, or implements
b. Placed by the owner or the tenant
d. BY ANALOGY [Par. 10]: Contracts
(as agent);
c. The machine, receptacle, for public works, servitudes, other
instrument, implement must also real rights over immovable
be essential to the business (tend property e.g. usufruct and lease of
directly to meet the needs of real property for a period of 1 year,
industry or work) in order to be and registered.
considered realty. [Mindanao Bus
Co. v City Assessor, G.R. No. L-
17870 (1962)]
2. Movables [Art. 416, 417, CC]
a. Everything not included in Art. 415
Examples: Gasoline station
(by exclusion);
equipment and machinery, for
b. All things that can be transported
without them, the gas station would
from one place to another without
be useless [Caltex Phils. v. Central
substantial injury to the immovable to
Board of Assessment Appeals, 114
which it is attached (by description)
SCRA 296]; machines for
chocolate-making industry [Serg
Unless expressly included in Art. 415
Product, Inc v. PCI Leasing and
(Test by Exclusion is Superior)
Finance Inc., 338 SCRA 499];
c. Real property which by any special
sawmill machineries in a sawmill
provision of law is considered as a
company [Ago v. Court of Appeals,
movable
6 SCRA 1962].
d. FORCES OF NATURE brought under
the control of science (e.g. electricity,
Note: The moment they are separated,
gas, heat, oxygen)
(from the immovable or from the
e. OBLIGATIONS AND ACTIONS which
industry or work in which they are
have for their object movables or
utilized) they revert to being movables.
demandable sums (i.e. any credit)
f. SHARES OF STOCK of agricultural,
3. Animal houses, etc. [415 (6)]
commercial and industrial entities,
although they may have real estate
Requisites
(e.g. stock certificates of a corporation)
a. Placed by the owner or the
tenant (as agent);
g. OTHER MOVABLES:
b. With the intention of permanent
1. Cultural properties under R.A.
attachment;
9846 as amended by P.D. 374, like
c. Forming a permanent part of
old buildings, shrines, documents
the immovable.
considered antiques, relics, or
artifacts etc.
4. Docks and structures which, though
2. A concession granted to a private
floating, are intended by their nature
person with the right of usufruct in
and object to remain at a fixed place on
a building erected on a lot
a river, lake, or coast (need not be
belonging to the municipality is a
placed by owner of land) [415 (9)]
personal property [Tufexis v.
Page 129 of 532

Olaguera and Municipal Council of

Guinobatan, 32 Phil. 654] E incumbit probatio qui dicit, non qui negat:
“He who asserts, not he who denies, must
prove.”
B. OWNERSHIP Accion Publiciana
An action for the recovery of real right of
RIGHTS OF AN OWNER IN GENERAL possession of real property (possession de
1. Jus Possidendi – the right to possess jure).
2. Jus Fruendi – the right to enjoy the fruits
(natural, industrial, and civil) Note: Actions for ejectment not filed within one
3. Jus Utendi – the right to use and enjoy year must be filed as accion publiciana.
4. Jus Acessiones – the right to accessories
5. Jus Abutendi – the right to abuse or to Accion Interdictal - Action for Ejectment
consume A summary action for recovery of actual,
6. Jus Disponendi – the right to dispose material or de facto physical possession
through an action for forcible entry or unlawful
SUMMARY OF LIMITATIONS ON OWNER detainer. It must be filed in the MTC or MeTC.
3. Imposed by the state – Eminent domain,
taxation, and police power Unlawful
Forcible Entry
4. Imposed by the owner himself Detainer
5. Other limitations like nuisance, easements, Possessor refused
state of necessity, mortgages, and other Lawful possessor to vacate upon
security arrangements deprived through demand by owner
6. Cannot make use of the thing in such FISTS:
manner as to injure the rights of a third Note: Legal
person [Art. 431, CC] a. Force possession (by
7. Doctrine of state of necessity [Art. 432, CC] b. Intimidation permission/
c. Strategy tolerance)
d. Threats, and becomes unlawful
1. Bundle of rights e. Stealth upon failure to
vacate
a. Actions to recover ownership and Period to Bring Action:
possession of real property and its 1 year from Period to Bring
distinctions dispossession (force, Action: 1 year
intimidation, threats) or from last demand
Accion Reivindicatoria from knowledge of to vacate.
• An action to recover ownership of and dispossession
dominion over real property. It includes, but (strategy, stealth)
is not limited to, possession.
• It must be filed in the RTC or the MTC, b. Actions for recovery of possession
depending on the assessed value (RTC, if of movable property
the value is more than P20,000 and is
outside Metro Manila; or the property is Replevin For manual delivery of movable
within Metro Manila and its assessed value property, for either ownership or possession
exceeds P50,000. If the aforementioned
conditions are not met, then at the MTC.).
Requisites [Art. 434, CC]

a. Property must be identified; and
b. Plaintiff must rely on the strength of his title
Page 130 of 532

2. Distinction between real and 3. Modes of Acquiring

personal rights Ownership
a. Real rights See Section J. Modes of Acquiring Ownership.
Rights that confer upon its holder an

autonomous power to derive directly from a 4. Limitations of Ownership
thing certain economic advantages
independently of whoever the possessor of the a. General Limitations
thing.
1. Taxation
In real rights, (1) there is a definite subject who 2. Eminent domain
has a right against persons as an indefinite 3. Police power
passive subject, (2) directed against the whole
world, (3) the object is a corporeal thing in most b. Specific Limitations
instances, and (4) it is extinguished by
destruction or loss of the thing. 1. Legal Servitudes [Arts. 2191, 677-679,
670, 644, 666, 684-687, 676, 649, 637,
The number of real rights is an open 652, CC]
classification: Once requisites are satisfied, the servient
a. Ownership owner may ask the Court to declare the
b. Real right of Possession existence of an easement. (e.g. Easement
c. Usufruct of Right of Way, Easement of Light and
d. Easement View etc.)
e. Recorded lease
f. Real Estate Mortgage 2. Must not injure the rights of a third
g. Chattel Mortgage person (Sic Utere Tuo Ut Alienum Non
h. Pledge Laedas) [Art. 431, CC]
i. Antichresis
j. Retention 3. Actions in a State of Necessity
k. Pre-emption The owner of a thing has no right to prohibit
l. Redemption the interference of another with the same,
m. Stewardship if the interference is necessary to avert an
n. Certificate of Ancestral Domain Title; imminent danger and the threatened
Certificate of Ancestral Domain Claims in damage, compared to the damage arising
the IPRA Law to the owner from the interference, is much
greater. The owner may demand from the
b. Personal rights person benefited, indemnity for the
damage to him. [Art. 432, CC]
Rights of a person to demand from another as
a definite passive subject, the fulfillment of a 4. Nuisance
prestation to give, to do or not to do. A nuisance is any act, omission,
establishment, business, condition of
property, or anything else which: (1) injures
or endangers the health or safety of others;
(2) annoys or offends the senses; (3)
shocks, defies or disregards decency or
morality; (4) obstructs or interferes with the
free passage of any public highway or
street, or any body of water; or (5) hinders
Page 131 of 532

or impairs the use of property. [Art. 694, 2. Rules of accession

CC]
a. FOR IMMOVABLES
5. Limitations imposed by the owner
himself (e.g. voluntary easements)
i. ACCESSION DISCRETA
Valid, provided they are not contrary to law.
To the owner belongs:
(1) The natural fruits;
6. Limitations imposed by the party
(2) The industrial fruits;
transmitting the property either by the
(3) The Civil fruits. [Art. 441, CC]
contract or will (e.g. onerous donations or
easement constituted when dividing one
General Rule and Exceptions
property)
General Rule: To the owner of the principal
belongs the natural, industrial, and civil fruits.
C. ACCESSION Exceptions:
• Possession in good faith: the possessor
is entitled to the fruits received before the
Accession – the right by virtue of which the possession is legally interrupted [Art. 526,
owner of a thing becomes the owner of CC]
everything that is produced thereby, or which is • Usufruct, fruits belong to the usufructuary.
incorporated or attached thereto, either [Art. 556, CC]
naturally or artificially. [Art. 440, CC] • Lease, fruits belong to the lessee in civil
law lease of agricultural land; lessor gets
Not a mode of acquiring property; it does not rentals as civil fruits
depend upon a new title. • Antichresis [Art. 2132, CC]
1. Right to hidden treasure Kinds of fruits

1. Natural – spontaneous products of the soil
Definition: Any hidden and unknown deposit and the young, and other products of
of money, jewelry, or other precious objects, animals. [Art. 442(1), CC]
the lawful ownership of which does not appear.
[Art. 439, CC] Partus sequitur ventrem: To the owner of
female animals would also belong the
General Rule: Belongs to the owner of the young of such animals although this cannot
land, building, or other property on which it is apply when the owner mixes his cattle with
found. [Art. 438, CC] those of another and they interbreed, thus
co-ownership is applied. [Siari Valley
Exceptions Estate v. Lucasan, G.R. No. L-13281
• If discovery made on property of (1960)].
another, the State, or any of its 2. Industrial – Fruits produced by the lands
subdivisions AND by chance: one-half of any kind through cultivation of labor [Art.
shall be allowed to the finder 442 (2), CC]
• If finder is a trespasser: he shall not be 3. Civil – Rents of buildings, price of leases
entitled to any of lands and other property and the amount
• If the things found be of interest to of perpetual or life annuities or other similar
science or the arts: State may acquire income [Art. 442 (3), CC]
them at their just price, which shall be
divided in conformity with rule stated
Page 132 of 532

Principles Applicable to Accession Discreta Presumptions

a. Time of Accrual depending on kind: • All works, sowing and planting are
i. Annuals: from the time seedlings presumed made by the owner and at his
appear on the ground. expense, unless the contrary is proved.
ii. Perennials: from the time fruits [Art. 446, CC]
actually appear on the plants. ● The incorporation must be done in such a
iii. Young of animals: from the time they manner that to separate the principal from
are in the womb, although unborn – the accessory would result in injury to both
beginning of maximum ordinary principal and accessory.
period of gestation. ● The party in bad faith is always liable for
iv. Fowls: from the time of incubation. damages.
b. Pay expenses to third person possessor in ● When both parties are in bad faith, they are
good faith - He who receives the fruits has considered to be in good faith.
the obligation to pay the expenses incurred ● The owner of the principal thing owns the
by a third person in the production, natural, industrial and civil fruits, except
gathering and preservation of the fruits. when the following persons exist:
[Art. 443, CC] a. Possessor in Good Faith
i. Exception: Owner does not have to b. Usufructuary
pay if land is recovered before c. Lessee
gathering from a possessor in bad d. Antichretic creditor
faith.
ii. But if owner recovers land from Bad Faith
possessor in bad faith, he may choose On the part of the landowner
to acquire the land and he can make Whenever the building, planting or sowing was
the possessor, builder, planter, sower done with his knowledge and without
account for the fruits that have been opposition on his part. [Art. 453(2), CC]
gathered, with the obligation to deduct
the expenses for producing, On the part of the owner of materials
harvesting and preservation of the Allows the use of his materials without protest.
fruits.
On the part of the builder, planter and sower
ii. ACCESSION CONTINUA One who has knowledge of any flaw or defect
in his title or mode of acquisition [Art. 526, CC]
Right pertaining to the owner of a thing over
everything that is incorporated or attached He is a possessor in bad faith at the time of
thereto either naturally or artificially (by BPS if he knows that:
external forces). [Art. 440, CC] a. He does not have title to the land, and
thus, has no right to build thereon; or
ARTIFICIALLY/INDUSTRIALLY b. He has no permission to build, plant, or
INCORPORATED [Arts. 445-456, CC] sow on the land which he possesses
Building, planting or sowing on land owned by but does not own.
another (over immovables).
Note: Bad faith leads to liability for damages
General rule: Whatever is built, planted or and the loss of the works or the improvement
sown on the land of another and the without right to indemnity. [Art. 449, CC]
improvements or repairs made thereon, belong
to the owner of the land, subject to the rules on If both parties are in bad faith, then treat
BPS. [Art. 445, CC] them as if they are both in good faith. [Art.
453(1), CC]
Page 133 of 532

Rules (see end of Section for Summary of Rights:

Rules) a. Absolute right of removal
1. Case where the landowner differs + Right to indemnification
from the owner of materials [Art. for damages; OR
447, CC] OM in GF
b. Right to reimbursement
for the value of materials +
Situation #1: Both the landowner (LO) and Right to indemnification
the owner of materials (OM) are in GF for damages.
Rights: Shall own what is built,
planted, sown Situation #4: LO in GF, while OM in BF
(materials/improvements). Rights:
[Accessio cedit principali] a. Right to acquire the
LO in GF improvements without
Liabilities: shall pay for the paying indemnity.
value of the materials (no one LO in GF
b. Right to acquire indemnity
shall be unjustly enriched at for damages if there are
the expense of another) hidden defects known to
Rights: OM.
a. Limited right of removal Lose materials without right to
(can only be resorted to if OM in BF indemnity (no right of
no injury can be inflicted removal).
OM in GF
on the work constructed);
or 2. Cases where one builds, plants, or
b. Right to reimbursement sows on land owned by another
for the value of materials. (BPS v. LO) [Arts. 448-454, CC]
Situation #2: Both the LO and OM are in BF Situation #1: BPS in GF [Art. 448, CC]
Options:
Parties will be treated as a. Acquire improvements
Both LO and though both acted in GF. after paying BPS for their
OM in BF [Art. 453, CC] value; or
b. Oblige the one who built
Landowner or planted to pay the price
Situation #3: LO in BF, while OM in GF
[Art. 446, of the land unless its
Rights: To own what is built,
CC] value is considerably
planted, sown
more than that of the
(materials/improvements).
Note: building or trees, and the
Option is one who sowed, the
Liabilities: shall pay for the
given proper rent.
LO in BF value of the materials, as well
solely to c. If the value is
as pay OM indemnity for
LO, GF of considerably more, then
damages.
BPS is the court can force the
immaterial parties to enter into a
Note: Subject to OM’s
forced lease. [Art. 448,
absolute right of removal.
CC]
Note: The difference between

a BUILDER and a SOWER.
Page 134 of 532

● Generally, has right to Rights:

reimbursement for the a. Absolute right of removal
improvement. + Right to indemnification
● Pending LO’s payment, for damages; OR
has right to retention of BPS in GF
b. Right to reimbursement
the land (during this for the value of materials +
period, BPS is not Right to indemnification
required to pay rent). for damages.
● Whatever fruits (rents) he
receives during the period
BPS in GF Situation #4: LO in GF, while BPS in BF
of retention must be
[Arts. 449-451, CC]
deducted from whatever
indemnity is due to him; Right to collect damages in
and in case it exceeds the any case AND option to:
value of the indemnity, the a. Acquire improvements
excess shall be returned without paying indemnity if
to the owner of the land. the improvements are still
[de Leon, citing Mendoza standing on the land;
v. De Guzman, G.R. No. b. Sell the land to BP or
L-28721 (1928)] collect rent from the sower
unless value of the
improvements in which
Note: Landowner can be forced to choose
under pain of direct contempt, or court can LO in GF case there will be a forced
lease; or
choose for him.
c. Order demolition of
improvements or
Note: In every case, the BPS is entitled to
restoration of land to its
reimbursement of necessary expenses for the
former condition at the
preservation of the land. [Art. 452, CC]
expense of the BPS.
Situation #2: Both the LO and BPS are in BF
Landowner must STILL pay
Parties will be treated as for necessary expenses for
Both LO preservation.
though both acted in GF, so
and BPS in a. Pay damages to
apply Art. 446. [Art. 453, CC]
BF landowner.
b. Lose materials without
Situation #3: LO in BF, while BPS in GF right to indemnity.
a. Must indemnify BPS for BPS in BF c. No right to refuse to buy
the improvements AND the land.
pay damages as if he d. Recover necessary
himself did the BPS. expenses for preservation
LO in BF b. Has no option to sell the of land.
land and cannot compel
BPS to buy the land 3. Case where LO, BPS, and OM are
without the latter’s different persons [Art. 455, CC]
consent.
Note: If there are 3 parties in BPS, solve the
problem by considering the options open to the
landowner vis-à-vis BPS depending on their
good faith or bad faith; apply Art. 455 re: one
who acted in good faith. Art. 455 shall not apply
Page 135 of 532

if the owner makes use of the right granted by NATURALLY INCORPORATED [Arts. 457-
Art. 450. 465, CC]
GENERAL RULES [de Leon] a. Alluvium [Art. 457, CC]

a. OM in GF entitled to reimbursement for the
value of the materials used (regardless of Soil is gradually deposited on banks adjoining
the GF or BF of the LO and/or the BPS). the river.
PRIMARILY, from the BPS. If the BPS be Requisites [GAC – Gradual, Adjacent,
insolvent, then the LO shall be subsidiarily Currents]
liable to the OM. [Art. 455(1), CC] 1. Deposit of soil or sediment is gradual and
imperceptible;
Requisites for the LO’s subsidiary 2. As a result of the action of the currents of
liability the waters of the river and should have no
• The OM acted in GF; human intervention;
• BPS is insolvent; and 3. Land where the accretion takes place is
• The LO appropriates the accession to adjacent to the banks of the rivers
himself. (RIPARIAN LAND); and
4. Deemed to Exist: When the deposit of the
b. The BPS who has paid the OM may seek sediment has reached a level higher than
reimbursement from the LO (value of the highest level of the water during the
materials + labor). [Art. 455(2), CC] year, i.e. higher than the riverbank.
[Meneses v. CA, G.R. No. 82220 (1995)]
Requisites
• The BPS acted in GF; and Effect: The riparian owner automatically owns
• The LO appropriates the improvement the alluvion but it does not automatically
to himself. become registered property in his name.
[Grande v. CA, G.R. No. L-17652 (1962)]
c. if only the OM is in BF, he loses his
materials, as well as his right to indemnity. Rationale: To compensate the owners of the
He also becomes liable for damages. [Arts. land from forces of nature and to encourage
449, 451, CC] riparian owners to cultivate and enrich the land.
d. If only the BPS acted in BF, he becomes Exception: Deposits due to human action or
liable to the OM for the value of the intervention and abrupt or unanticipated
materials + damages. Should he become flooding brought about by extreme weather
insolvent, the LO shall pay for the value of conditions.
the materials but he will not be liable for
damages. Additionally, he shall still be Note: Action of the sea over the estate because
liable to the LO. [Arts. 450-451, CC] of the tide and which results to a strip of land
becomes foreshore land and passes to the
e. If only the LO acted in GF, he can exercise realm of the public domain. [Republic v. Court
any of his options under Arts. 449 and 450, of Appeals, 281 SCRA 639]
both having an additional right to ask for
damages [Art. 451, CC]. He shall also not b. Avulsion [Art. 459, CC]
be subsidiarily liable to the OM.
A known portion of land is segregated from one
f. If ALL acted in BF, they shall be treated as estate by the forceful current of a river, creek
though all of them acted in GF. [Art. 453, or torrent and transferred to another.
CC]
Page 136 of 532

Requisites: [ACFI – Abrupt, caused by Current bed (the old property of the owner) [Art.
or other Forces of nature, Identifiable] 461, CC]
1. Segregation and transfer of land is sudden c. The new bed opened by the river on a
and abrupt; private estate shall become of public
2. Caused by the current of the river, creek or dominion. [Art. 462, CC]
torrent; and
3. The portion of land transported must be Exceptions:
known and identifiable; or a. Where the river simply dries up, the
abandoned riverbed belongs to the State
Effect: The ownership of the detached because there are no persons whose lands
property is retained by the owner provided that are occupied by the waters of the river. It is
he removes the same within 2 years from the still public dominion.
detachment. [Art. 459, CC] b. Where the government reverts back the
course of the river, there is no
c. Uprooted Trees [Art. 460, CC] compensation.
In case of uprooted trees, the owner retains Note: Sec. 58 of the Water Code (PD 1067)
ownership if he makes a claim within 6 months. provides that when a river or stream suddenly
This refers only to uprooted trees and does not changes its course to traverse private lands,
include trees which remain planted on a known the owners of the affected lands may not
portion of land carried by the force of the compel the government to restore the river to
waters. In this latter case, the trees are its former river bed, nor can they restrain the
regarded as accessions of the land through government from taking steps to revert the river
gradual changes in the course of adjoining or stream to its former course. The owners of
stream. [Payatas v. Tuazon, G.R. No. L-30067 the land thus affected are not entitled to
(1929)] compensation for any damage sustained
thereby. However, the former owners of the
d. Change Of Course Of River [Arts. 461- new bed shall be the owners of the abandoned
462, CC] bed in proportion to the area lost by it.
Requisites: e. Division of River into Branches [Art.

1. Change in the natural course of the waters 463, CC]
of the river;
2. Such change causes the abandonment of Whenever the current of a river divides itself
the riverbeds; into branches, leaving a piece of land or part
“Natural Bed”: ground covered by its thereof isolated, the owner of the land retains
waters during the highest floods. [Binalay his ownership and there is no accession. He
v. Manalo, G.R. No. 92161 (1991)] also retains it if a portion of land is separated
3. Such change is sudden or abrupt; and from the estate by the current.
4. Change is permanent.
f. Formation of Islands [Arts. 464-465, CC]
Effects
a. Owners whose lands are occupied by the They belong to the State if [Art. 464]:
new course of the river automatically (ipso a. Formed on the seas within the jurisdiction
facto) become owners of the old bed, in of the Philippines;
proportion to the area they lost [Art. 461, b. Formed on lakes; or
CC] c. Formed on navigable or floatable rivers:
b. Owners of the lands adjoining the old bed • Capable of affording a channel or
are given the right to acquire the same by passage for ships and vessels;
paying the value of the land. Not exceeding
the value of the land invaded by the new
Page 137 of 532

• Must be sufficient not only to float 1. Adjunction

bancas and light boats, but also bigger
watercraft; Process by virtue of which 2 movable things
• Deep enough to allow unobstructed belonging to different owners are united in such
movements of ships and vessels. a way that they form a single object.
Test of whether river is navigable: Whether it Requisites

can be used as a highway of commerce, trade 1. There are 2 movables belonging to 2
and travel. different owners;
2. They are united in such a way that they
They belong to the private owner of the form single object; and
separated land if [Art. 463]: 3. They are so inseparable that their
The island is formed in a place not mentioned separation would impair their nature or
in Art. 464. result in substantial injury to either
component.
Note: There is no accession when islands are
formed by the branching of a river; the owner Kinds
retains ownership of the isolated piece of land. a. Inclusion (engraftment)
b. Soldering (adjoining two or more metals)
They belong to the owners of the nearest c. Ferruminatio (same metals)
margins or banks if [Art. 465]: d. Plumbatura (different metals)
a. Formed through successive accumulation e. Escritura (writing)
of alluvial deposits; and f. Pintura (painting)
b. On non-navigable and non-floatable rivers. g. Weaving
Note: If island is in the middle of the river, divide 2. Ownership of New Object
longitudinally in half. If nearer to one margin or Formed by Adjunction
bank, to the nearer riparian owner.
Owner of Principal Object
Note: If a landowner allows the sea or a lake to Good Faith: Acquires the thing but with the duty
eat up his land completely, it is a case of to indemnify the owner of the accessory [Article
natural expropriation and if the land later 466].
reappears, he does not regain ownership
thereof. [Republic v. Cabangis, G.R. No. L- Owner of Accessory
28379 (1929)] Good Faith: Has a right to demand separation
even though there may be damage if the
b. FOR MOVABLES accessory is more valuable.
i. Conjunction/Adjunction If Owner of Principal Object in Bad Faith

[Arts. 466-471, 475, CC] Demand value of the accessory plus damages,
OR Demand separation even if the principal
Definition: There is adjunction or conjunction will be destroyed plus damages [par. 2,
when 2 movables belonging to different owners Art.470]
are attached to each other such that separation
is without injury. If Owner of Accessory in Bad Faith
Loses the thing plus is liable for damages
General Rule: Accession only exists only if [Article 470]If both are in bad faith, treat as if
separation is not feasible. Otherwise, both are in good faith [Article 453 by analogy].
separation may be demanded (Civil Code Art
469)
Page 138 of 532

Rules in Determination of the Principal 1. Definition

Thing [Art. 467-468, CC]
In the order of application, the principal thing is: • Mixture: the union of materials belonging
● That to which the other has been united as to different owners where the components
an ornament or for its use or perfection lose their identity
(“Rule of importance and purpose”) • Commixtion: mixture of solid things
● The thing of greater value. • Confusion: mixture of liquid things or
● The thing of greater volume. mixture of gases
● The that of greater merits, taking into
consideration all the pertinent legal 2. Rules [Arts. 472 – 473, CC]:
provisions, as well as the comparative
merits, utility and volume of their respective a. If caused by the will of the parties or by
things. [Manresa] chance, or by the will of one party but is in
good faith, then there will be a co-
Exception: In painting and sculpture, writings, ownership based on proportional value (not
printed matter, engraving and lithographs the volume).
MATERIAL (board, metal, stone, canvas, b. If caused by the will of one party in bad
paper or parchment) which the writer/artist faith, then the party in bad faith loses the
used SHALL BE DEEMED THE ACCESSORY entire thing and must pay indemnity for
THING in all cases. [Art. 468, CC] damages.
When separation allowed Notes:

• When separation will not cause any injury, • Good faith in accession does not
the respective owners can demand necessarily exclude negligence, which
separation [Art. 469, CC]; or gives rise to damages. [Art. 456, CC by
• When the accessory is more precious: analogy]
1. Owner of accessory may demand • Also, there is a co-ownership.
separationeven though the
principal thing may suffer [Art. 469, iii. Specification [NCC 474-475]
CC].
2. Owner who caused the union shall 1. Definition [Art. 474, CC]
bear the expenses for separation
even if he acted in good faith. Takes place when the work of a person is done
● When the any of the owners are in bad on the material of another, and such material,
faith: in consequence of the work itself, undergoes a
1. If owner of accessory in BF, then transformation.
he shall lose the accessory and pay
damages to owner of principal. It is the transformation of another’s material by
2. If owner of principal in BF, then the the application of labor, into a thing of a
owner of the accessory shall different kind.
choose between paying the value
of the principal or have the Examples: Turning grapes into wine, flour into
accessory separated from the bread
principal even if the principal thing
is destroyed and be paid damages. 2. Rules
ii. Commixtion/Confusion a. Worker/Maker in Good Faith [Art.

[Arts. 427-423. 475, CC] 474, CC]
General Rule: Worker becomes the owner but

must indemnify the owner (who was also in
Page 139 of 532

good faith) for the value of the material. [Art. General Rule: Owner has two options
474 (1), CC] • Owner may appropriate the new thing to
himself without paying the maker
Exception: If the material is more valuable
than the new thing, the owner of the material Exception: This option is not available in
may choose [Art. 474 (2), CC]: case the value of the work, for artistic or
● To take the new thing but must pay for the scientific reasons, is considerably more
value of the work; or than that of the material, in which case the
● To demand indemnity for the value of the owner of the material can ask for the
material. payment of the material and damages.
• Owner may demand the value of the
If the owner was in bad faith, the maker material plus damages
may appropriate the new thing without
paying the owner, or require the owner to c. Worker/Maker made use of material
pay him the value of the thing or his work, with consent and without objection
with right to indemnity. of owner
b. Worker/Maker in bad faith [Art. 474 Rights shall be determined as though both
(3), CC] acted in good faith. [Apply Art. 474 (1), CC]
Note: For the right of accession with regards to

moveable property, sentimental value is duly
appreciated. [Art. 476, CC]
SUMMARY OF BPS/LO/OM RULES

Landowner Builder/Planter/Sower Owner of Materials
ALL Acted in Good Faith
a. Right to acquire a. Right of retention until a. Collect value of material
improvements and pay necessary and useful primarily from BPS and
indemnity to BPS; subsidiary expenses are paid subsidiarily to landowner
liability to OM b. To pay value of materials if BPS is insolvent; and
b. Sell the land to BP except if to OM b. Limited right of removal
the value of the land is (if the removal will not
considerably more; or cause any injury)
c. Rent to S
LO in GF BPS in GF OM in BF
a. Right to acquire a. Right of retention until a. Lose the material
improvements and pay necessary and useful without right to indemnity
indemnity to BPS; expenses are paid b. Must pay for damages to
b. Sell land to BP except if the b. Keep improvements BPS
value of the land is without indemnity to OM
considerably more; or and collect damages from
c. Rent to S him
LO in GF BPS in BF OM in BF
Page 140 of 532

a. Right to collect damages from Recover necessary expenses a. Recover from BPS (as if
BPS in any case and the for preservation of land from both are in GF)
option to either LO unless LO sells land b. If BPS acquires
1. Acquire improvements w/o improvements, remove
paying for indemnity; materials if feasible w/o
2. Demolition or restoration; or injury
3. Sell to BP, or to rent to c. No action against LO but
sower may be liable to LO for
b. Pay necessary expenses to consequential damages
BPS
ALL Acted in Bad Faith
Same as when all acted in GF under Art. 453
LO in BF BPS in GF OM in GF
a. Acquire improvement after a. May remove a. Remove materials at any
paying indemnity and improvements event
damages to BPS unless the b. Be indemnified for b. Collect value of
latter decides to remove damages in any event materials from BPS;
b. Subsidiarily liable to OM for c. Pay OM the value of the subsidiarily from LO, if
value of materials if he materials LO is made to pay for
acquires improvements and improvements and
pays damages to BPS; no damages
subsidiary liability if BPS
chooses removal in any
event.
LO in BF BPS in BF OM in GF
a. Right to acquire a. No right of retention a. Collect value of
improvements and pay b. Pay value of materials to materials primarily from
indemnity to BPS; subsidiarily OM and pay him damages BPS and subsidiarily
liable to OM from LO if LO acquires
b. Has option to: the improvements
1. Sell the land to BP except b. Collect damages from
if the value of the land is BPS
considerably more; or c. Absolute right to remove
2. Rent to S materials in any event (if
BPS acquires
improvements)
LO in GF BPS in BF OM in GF
a. Right to necessary a. Collect value of
LO has right to collect damages expenses materials primarily from
from BPS in any case and the b. Pay value of materials to BPS and subsidiarily
option to either: OM from LO
a. Acquire improvements w/o c. Pay damages to OM/LO b. Collect damages from
paying for indemnity; BPS
b. Demolition or restoration; or c. If BPS acquires
c. Sell to BP or rent to S improvements, absolute
Pay necessary expenses to BPS right of removal in any
event
Page 141 of 532

LO in BF BPS in GF OM in BF
Acquire improvements and pay b. Receive indemnity for a. Right to indemnity
indemnity and damages to BPS damages b. Loses right to the
unless the latter decides to c. Absolute right of materials
remove materials removal of
improvements in any
event
governmental regulation may, before breach or

D. QUIETING OF TITLE violation thereof, bring an action in the
appropriate Regional Trial Court to determine
any question of construction or validity arising,
Quieting of Title – remedy for the removal of and for a declaration of his rights or duties,
anycloud of doubt or uncertainty with respect to thereunder. [Bar Matter No. 803, 17 February
real property 1998]
An action for the reformation of an instrument,

1. Requisites to quiet title to real property or remove clouds
therefrom, or to consolidate ownership under
a. Plaintiff or complainant has a legal or an Article 1607 of the Civil Code, may be brought
equitable title to or interest in the real under this Rule. [Sec. 1, Rule 63, ROC]
property subject of the action; and [Art.
477, CC]
b. The deed, claim, encumbrance or
2. Distinctions between quieting
proceeding claimed to be casting a cloud title and removing/preventing
on his title must be shown to be in fact a cloud
invalid or inoperative despite its prima facie
appearance of validity or legal efficacy. Action to quiet title
A common law remedy for the removal of any
Such cloud must be due to some instrument, cloud upon a doubt or uncertainty with respect
record, claim, encumbrance or proceeding to title to real property [Paras]
which is apparently valid but is in truth invalid, ● A cloud on title is a semblance of title
ineffective, voidable or unenforceable, and is (legal or equitable) which legally appears
prejudicial to the plaintiff’s title. Plaintiff must valid but is, in fact, unfounded.
return to the defendant all benefits he may o Legal title: the party is the
have received from the latter, or reimburse him registered owner of the property
for expenses that may have redounded to his o Equitable title: the person has the
benefit. [Art. 479, CC] beneficial ownership of the
property
Note: An action to quiet title applies only to real ● It is in the nature of a quasi in rem action.
property; except to some personal properties
like vessels or stock certificates which partake Note: Some commentaries provide that an
of the nature of real property, or when they are action to quiet title is different from removing a
considered as real property because of special cloud.
registration requirements [De Leon]. The purpose of quieting is to put a stop to
vexatious litigation in relation to the property.
Who may file [Sec. 1, Rule 63, ROC] Removing a cloud pertains to the cancellation,
Any person interested under a deed, will, delivery, removal or release of an
contract or other written instrument, or whose encumbrance which can be considered a claim
rights are affected by a statute, executive order re: plaintiff’s title.
or regulation, ordinance, or any other
Page 142 of 532

ACTION TO QUIET TITLE

In General Applicable to real property, subject to certain exceptions
a. To declare the invalidity of a claim on a title or the invalidity of an interest
in property
b. To free the plaintiff and all those claiming under him from any hostile
claim on the property
Notes:
Purpose
● To prevent multiplicity of suits, an action for quieting of title takes
precedence over an ejectment case. [Luzuriaga v. Adil, G.R. No. L-58912
(1985)]
● Pending an action for quieting of title, possession of actual possessor must
be respected until the case is decided on the merits. [Balbecino v. Judge
Ortega, G.R. No. L-14231 (1962)]
a. Claimant must show that there is an:
1. Instrument;
2. record;
3. Claim;
4. encumbrance; or
5. proceeding,
Requisites
b. Which constitutes or casts a
1. cloud;
2. doubt;
3. question; or
4. shadow,
c. upon the owner's title to or interest in real property [Art. 476, CC]
a. To questions involving interpretation of documents;

b. To mere written or oral assertions of claim
● UNLESS made in a legal proceeding, or asserts that an instrument or
entry in plaintiff’s favor is not what it purports to be;
When Not
c. To boundary disputes;
Applicable:
d. To deeds by strangers to the title;
● UNLESS purporting to convey the property of the plaintiff;
e. To instruments invalid on their face; or
f. Where the validity of the instrument involves a pure question of law.
ACTION TO PREVENT A CLOUD
“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.
Legal title: the party is the registered owner of the property.

Legal Title v. Equitable Title Equitable title: the person has the beneficial ownership of the
property.
Page 143 of 532

a. There is a claim emerging by reason of:

1. Any instrument e.g. a contract, or any deed of conveyance,
mortgage, assignment, waiver, etc. covering the property
concerned;
2. Any record, claim, encumbrance e.g. an attachment, lien,
inscription, adverse claim, lis pendens, on a title; or
3. Any proceeding e.g. an extrajudicial partition of property.
A Cloud Exists If [Art. 476]: b. The claim should appear valid or effective and extraneous
evidence is needed to prove their validity or invalidity;
Test: Would the owner of the property in an action for ejectment
brought by the adverse party be required to offer evidence to defeat
a recovery?
As a general rule, a cloud is not created by mere verbal or parole
assertion of ownership or an interest in property.
c. Such instrument, etc. is, in truth and in fact, invalid,

ineffective, voidable, or unenforceable, or has been extinguished or
terminated, or has been barred by extinctive prescription; and
d. Such instrument, etc. may be prejudicial to the true owner

or possessor.
a. To questions involving interpretation of documents;

b. To mere written or oral assertions of claim, EXCEPT IF
made in a legal proceeding or asserts that an instrument or entry in
plaintiff’s favor is not what it purports to be;
Does Not Cover and Is Not c. To boundary disputes;
Applicable To: d. To deeds by strangers to the title UNLESS purporting to
convey the property of the plaintiff;
e. To instruments invalid on their face; or
f. Where the validity of the instrument involves a pure question
of law
a. Plaintiff has a title to a real property or interest therein;

b. Defendant is bent on creating a cloud on the title or interest
therein. The danger must not be merely speculative or
Requisites imaginary but imminent; and
c. Unless the defendant is restrained or stopped, the title or
interest of the plaintiff will be prejudiced or adversely
affected.
3. Prescription/non-prescription b. When the plaintiff is NOT in possession of

the real property, the action to quiet title
of action may prescribe depending upon the right of
action filed by the plaintiff:
a. When the plaintiff is in possession of the 1. 10 years – if plaintiff is a possessor
property, the action to quiet title does not with a real right, i.e. accion
prescribe. publiciana, or if action is for
reconveyance on the basis of a
Page 144 of 532

constructive trust under Art. 1456, other limitation than that he shall not
CC injure the interests of his co-owners.
2. 30 years – if plaintiff is the owner of [Pardell v. Bartolome, G.R. No. L-4656
real property (1912)]
• Rationale: Until a division is actually made,
Note: An action to quiet title may be defeated the respective share of each cannot be
by a claim of ordinary or extraordinary determined, and every co-owner exercises
acquisitive prescription by the defendant. joint ownership of the pro indiviso property.
[Coja v. CA, 539 SCRA 517]
• Use should be in accordance with the
E. CO-OWNERSHIP purpose for which it was created or
intended.
Note: The law discourages co-ownerships

1. Characteristics of Co- among individuals as oftentimes, it results
ownership in inequitable situations. No co-owner can
be compelled to stay in a co-ownership
Definition indefinitely and may insist on a partition of
There is co-ownership whenever the the common property [Patricio v. Dario,
ownership of an undivided thing or right 507 SCRA 438, 2006].
belongs to different persons [Art. 484 (1),
CC] Co-ownership Distinguished from
Partnership
Co-ownership is governed by: Co-Ownership Partnership
• Contracts; As to creation
• Special laws; and Can be created Can be created only
• In default of the above, the provisions of the without formalities of by contract, express
Civil Code [Art. 484 (2), CC] a contract or implied
As to Juridical Personality
Summary of Characteristics Has juridical
1. There are 2 or more co-owners. Has no juridical or
personality distinct
2. There is a single object which is not legal personality
from partners
materially or physically divided and his As to Purpose
ideal share of the whole. Purpose is collective
3. There is no mutual representation by the Purpose is to obtain
enjoyment of the
co-owners. profits
thing
4. It exists for the common enjoyment of the As to Disposition of Shares
co-owners. Consent of other co- Partner needs to be
5. It has no distinct legal personality. owners not needed; authorized; he
6. It is a trust and every co-owner is a trustee transferee cannot substitute
for the rest. automatically another as a partner
7. It is governed first of all by the contract of becomes co-owner in his place
the parties; otherwise, by special legal As to Existence of Mutual Agency
provisions, and in default of such
A partner can
provisions, by the provisions of Title III on There is no mutual
generally bind the
Co-Ownership. representation
partnership
As to Effect of Death or Incapacity
Limitation
• Each co-owner of realty held pro indiviso Does not result in
Results in dissolution
exercises his rights over the whole property dissolution
and may use and enjoy the same with no As to Formal Requisites
Page 145 of 532

No public instrument their work or industry shall be governed by

May be made in any
is needed even if the the rules on co-ownership. [Art. 147, FC]
form except when
object of the co-
real property is
ownership is a real
contributed
c. Joint Purchase
property
As to Agreement on the Period If two or more persons agree to purchase
An agreement to property and by common consent the legal title
There may be
keep the thing is taken in the name of one of them for the
agreement as to a
undivided for a benefit of all, a trust is created by force of law
definite term without
period of more than in favor of the others in proportion to the
limit set by law
10 years is void interest of each. [Art.1452, CC]
2. Sources of Co-ownership d. Succession
a. Marriage Where there are two or more heirs, the whole

estate of the decedent is, before its partition,
owned in common by such heirs, subject to
i. System of Absolute Community
the payment of debts of the deceased. [Art.
• Unless otherwise provided in this
1078, CC]
Chapter or in the marriage settlements,
the community property shall consist of
all the property owned by the e. Donation
spouses at the time of the
celebration of the marriage or When a donation is made to several persons
acquired thereafter. [Art, 91, FC] jointly, it is understood to be in equal shares,
• The administration and enjoyment of and there shall be no right of accretion among
the community property shall belong to them, unless the donor has otherwise
both the spouses jointly. [Art. 96 (1), provided. [Art. 753 (1), CC]
FC]
f. Chance
ii. Conjugal Partnership of Gains
• All property acquired during the If by the will of the owners two things of the
marriage, whether the acquisition same or different kinds are mixed, or if the
appears to have been made, mixture occurs by chance, and in the latter
contracted or registered in the name of case things are not separable without injury,
one or both spouses, is presumed to be each owner shall acquire a right
conjugal unless the contrary is proved. proportional to the part belonging to him,
[Art. 116, FC] bearing in mind the value of the things mixed
• The administration and enjoyment of or confused. [Art. 472, CC]
the conjugal property shall belong to
both spouses jointly. [Art. 124 (1), FC] g. Hidden Treasure
b. Cohabitation When the discovery is made on the property of

another, or of the State or any of its
When a man and a woman who are subdivisions, and by chance, one-half thereof
capacitated to marry each other, live shall be allowed to the finder [Art. 438, CC]
exclusively with each other as husband and
wife without the benefit of marriage or under a h. Easement of Party Wall
void marriage, their wages and salaries shall
be owned by them in equal shares and the The easement of party wall shall be governed
property acquired by both of them through by the provisions of this Title, by the local
Page 146 of 532

ordinances and customs insofar as they do interest in the land on which it is located
not conflict with the same, and by the rules and in other common areas of the building.
of co-ownership [Art. 658, CC] 2. Effect of transfer of a condominium unit:
a. it shall include the
Easement of party ditches in Art. 661: transfer/conveyance of the
Ditches or drains opened between two undivided interest in the common
estates are also presumed as common to area or in the membership or
both, if there is no title or sign showing the shareholdings in the condominium
contrary. corporation
b. With the unit comess an exclusive
i. Contract easement for the use of the air
space encompassed by the
a. In General boundaries of the unit
• By agreement of two or more c. Common areas are held in
persons [Art. 494, CC] common by the unit owners in
b. Universal Partnership equal shares; one for each unit
• The property which belonged to 3. Rights of a condominium owner (subject to
each of their partners at the time of master deed’s limitations):
the constitution of the partnership, a. Non-exclusive easement for
becomes the common property ingress, egress, and support
of all partners, as well as all the through the common areas
profit which they may acquire b. Right to paint, repaint, tile, wax,
therewith [Art. 1779, CC] paper or refinish and decorate the
c. Associations inner surface of the walls, ceilings,
• Associations and societies, whose floors, windows and doors
articles are kept secret among bounding his/her own unit
members, and wherein any one of c. Exclusive right to mortgage,
the members may contract in his pledge, or encumber
own name with third persons, shall d. Absolute right to sell or dispose of
have no juridical personality, and his condominium
shall be governed by the 4. Common areas shall remain undivided and
provisions relating to co- there shall be no judicial partition subject to
ownership [Art. 1775, CC] Sec. 8 of the Condominium Law
j. Occupation 3. Rights of Co-owners

Harvesting and fishing: co-ownership by two or a. Right to Share in the Benefits as
more persons who have seized a res nullius Well As the Charges [Art. 485, CC]
thing [Art. 713, CC]
i. Proportionality – The share of the
k. Condominium (RA 4726) co-owners shall be proportional to
their respective interests. Any
Condominium Law: co-ownership of the stipulation to the contrary is void. [Art.
common areas by holders of units [Sec. 6, RA 485, par. 1, CC]
4726] ii. Presumption of Equal share – The
portions belonging to the co-owners in
1. Definition of a condominium: Interest in a the co-ownership shall be presumed
real property consisting of a separate equal, unless the contrary is proved.
interest in a unit in a residential, industrial [Art. 485, par. 2, CC]
or commercial building and an undivided
Page 147 of 532

b. Right to Use the Thing Owned In to his share of expenses and taxes. [Art. 488,
Common [Art. 486, CC] CC] This means that his/her renunciation does
not cover all of his/her interest in the property
Limitations co-owned.
1. In accordance with the purpose for which
the co-ownership is intended. Exception to Exception: No waiver shall be
a. The purpose for which the co- made if prejudicial to co-ownership. [Art. 488,
ownership may be changed by CC]
agreement, express or implied 1. Expenses to improve or embellish the thing
2. In such a way as to not injure the interest shall be decided upon by a majority as
of the co-ownership determined in Art. 492, NCC.
3. In such a way as not to prevent the other 2. As for the expenses for pure luxury or mere
co-owners from using it according to their pleasure, these are not refundable for not
right. serving purposes of preservation. [Art. 548,
CC]
c. Right to Bring an Action in
Ejectment [Art. 487, CC] e. Right to Reimbursement for
Necessary Repairs [Art. 488-489,
Actions contemplated: Covers all cases for CC]
recovery of possession (forcible entry, unlawful
detainer, accion publiciana, replevin, accion General rule: A co-owner has the right to
reinvidicatoria). Action is considered to be filed compel the other co-owners to contribute to the
to benefit all the co-owners. expenses of preservation, maintenance, or
necessary repairs of the thing or right owned in
A co-owner may bring such an action without common and to the taxes. [Art. 488, CC]
joining all the other co-owners as co-plaintiffs
because the suit is presumed to have been Requirement of notice: If practicable, the co-
filed to benefit his co-owners. If the plaintiff/co- owner must first notify the co-owners of the
owner claims to be the sole owner, the action necessity for the repairs. [Art. 489, CC]
should be dismissed. [Adlawan v. Adlawan,
G.R. No. 161919, (2006)] Exception to the requirement of notice: If
impracticable or where the repairs are very
d. Right to Compel Other Co-Owners urgent, and the other co-owners are in remote
to Contribute to the Expenses of places and cannot be reached by an ordinary
means of communication. This means that
Preservation and to the Taxes [Art. his/her renunciation does not cover all of
488, CC] his/her interest in the property co-owned.
General Rule: Each co-owner shall have a Lack of notice even if practicable: Does not
right to compel the other co-owners to exempt other co-owners to contribute. The co-
contribute: owner who advanced them has the burden of
1. To the necessary expenses (incurred for proving that they were properly incurred.
preservation of the thing or right). If
practicable, he must first notify his co- When Majority opposes repairs: If necessary,
owners of the necessity for such repairs. repairs insisted by once were not done and it
[Art. 489, CC] resulted to damages those who made the
2. To the taxes [Art. 488, CC] opposition shall be responsible for damages.
[Paras quoting 3 Manresa 448].
Exception to paying necessary expenses
and taxes: Co-owner no longer has to pay if he
renounces his undivided interest as equivalent
Page 148 of 532

f. Right to Oppose Alternations [Art. Exception

491, CC] 1. When personal rights are involved; and
2. Effect of alienation or mortgage, with
General Rule: Unanimous Consent: None of respect to co-owners shall be limited to the
the co-owners shall, without the consent of the portion which may be allotted to him in the
others, make alterations in the thing owned in division upon the termination of the co-
common, even though benefits for all would ownership
result therefrom.
h. Right to Partition [Art. 494, CC]
Rationale: Alteration is an act of ownership.
Definition of Partition: Separation, division
Alteration – a change in the nature or use of a and assignment of a thing held in common
thing; it contemplates a PERMANENT among those to whom it may belong. Partition
CHANGE. Examples: may be inferred from circumstances sufficiently
• Change of the thing from the state or strong to support the presumption. [Maestrado
essence in which the others believe it v. Court of Appeals, 327 SCRA 678 (2000)]
should remain
• Withdrawal of the thing from the use to General Rule
which they wish it to be intended 1. No co-owner shall be obliged to remain in
• Any other transformation which prejudices the co-ownership; and
the condition or substance of the thing or 2. Each co-owner may demand at any time
its enjoyment by the others. [Manresa] the partition of the thing owned in common,
insofar as his share is concerned. [Art. 494
Examples of alterations par.1, CC]
• The construction of a house on the co-
owned property is an act of dominion. It is Note: An assignee of a co-owner may take part
an alteration of the property owned in in the division of the thing owned in common
common. [Cruz v. Catapang, 544 SCRA and object to its being effected without their
2008] concurrence. But they cannot impugn any
• Mortgage, donation, or sale of a portion or partition already executed unless there has
the whole of the property co-owned been fraud or in case it was made
• Allowing or entering into an easement notwithstanding a formal opposition to prevent
it. [Budlong v. Pondoc, 79 SCRA 24 (1977)]
Exception: If the withholding of the consent by
one or more of the co-owners is clearly Limitations
prejudicial to the common interest, the • An agreement to keep the thing undivided
courts may afford adequate relief. for a certain period of time, not exceeding
10 years, shall be valid. [Art. 494, CC]
g. Right to Full Ownership of His Part • A donor or testator may prohibit partition for
a period which shall not exceed 20 years.
and of the Fruits and Benefits [Art. 494, CC]
Pertaining Thereto [Art. 493, CC] • Neither shall there be any partition when it
is prohibited by law. [Art. 494, CC]
As a result, the co-owner has a right to: • When physical partition would render the
1. Alienate; thing unserviceable for the use for which it
2. Assign; is intended. [Art. 495, CC]
3. Mortgage; and
4. Substitute another person in its enjoyment. Exception: If it is indivisible (physical partition
not possible), allot to one of the co-owners who
Note: Actions above can only pertain to the co- shall indemnify others, or have it sold and
owner’s ideal share prior to partition. divide the process from the sale. [Art. 498, CC]
Page 149 of 532

• When another co-owner has possessed As legal redemption is intended to minimize co-
the property as exclusive owner and for a ownership, once a property is subdivided and
period sufficient to acquire it by distributed among the co-owners, the
prescription. community ceases to exist and there is no
more reason to sustain any right of legal
Note: No prescription shall run in favor of a co- redemption. Every act intended to put an end
owner or co-heir against his co-owners or co- to indivision among co-heirs is deemed to be a
heirs so long as he expressly or impliedly partition. [Avila vs. Sps. Barabat, supra]
recognizes the co-ownership. [Art. 494, CC]
j. Right to Participate in
For prescription to run in favor of a co-owner, Administration of Property Owned
the following elements must concur to show In Common [Art. 492, CC]
adverse possession of a co-owner:
1. He has performed unequivocal acts of General Rule
repudiation amounting to an ouster of the a. For the administration and better
other co-owners; enjoyment of the thing owned in common,
2. Such positive acts of repudiation have the resolutions of the majority of the co-
been made known to the other co-owners; owners shall be binding. [Art. 492 par. 1,
and CC]
3. The evidence thereon must be clear and b. There shall be no majority unless the
convincing. [Salvador v. CA, supra] resolution is approved by the co-owners
who represent the controlling interest in the
Sample of Acts of Repudiation object of the co-ownership. [Art. 492 par. 2,
1. Filing of actions in court like quieting of title, CC]
accion reinvidicatoria and other similar suit
2. Co-owner who causes cancellation of the Exceptions to acts of administration only
existing title and petitions for an issuance by majority
of a new title in his favor
• If there be no majority; or
3. Co-owner who permanently fences the
• If the resolution of the majority is seriously
property and hires security personnel to
prejudicial to those interested in the
prevent other co-owners from entering the
property owned in common.
property
• In which case, the court will intervene: the
court, at the instance of an interested party,
i. Right to Redemption [Art. 1619, shall order such measures as it may deem
CC] proper, including the appointment of an
administrator.
Definition
Legal redemption – the right to be Examples of acts seriously prejudicial
subrogated, upon the same terms and • Call for a substantial change of the thing
conditions stipulated in the contract, in the • Authorizing leases, loans, and other
place of one who acquires a thing by purchase contracts without the necessary security,
or dation in payment, or by any other thereby exposing the property to serious
transaction whereby ownership is transmitted danger
by onerous title [Art. 1619, CC]. • Continued employment of an administrator
who is guilty of fraud or negligence in his
General Rule: A co-owner of a thing may management [Manresa]
exercise the right of redemption in case the
shares of all the other co-owners or of any of Note: A co-owner is entitled to a written notice
them are sold to third person. [Art. 1620, CC] from a selling co-owner in order to remove all
uncertainties about the sale, its terms and
Page 150 of 532

conditions, as well as its efficacy and status. Consensus of all co-

[Verdad v. Court of Appeals, 256 SCRA 593 Lease for more owners (considered an act
(2000)] than 1 year of alteration, see
Tolentino)
k. Other Rules Acts of
administration
1. Renunciation of Share (ex. Payment of Majority of co-owners [Art.
taxes/association
General Rule: A co-owner may exempt dues, hiring 492, CC]
contractors to do
himself from the payment of expenses of
minor repairs)
preservation by renouncing his undivided
interest in the co-ownership as may be Improvement/
equivalent to his share in the necessary Embellishing
expenses and taxes. [Art. 488, CC] the Thing/
Useful Majority of co-owners
A co-owner who has not waived his share in expenses (ex. [Arts. 489 and 492, CC]
Swimming pool,
the co-ownership may be compelled to pay his CCTV,
share in the cost of its maintenance, but he landscaped
may not be compelled to renounce. gardens, etc.)
Waiver of renunciation is not allowed if it is 3. Multi-Story House [Art. 490, CC]

prejudicial to the co-ownership. [Art. 488, CC]
Applies when:
2. Repairs for Preservation, • The different stories of a house belong to
Embellishment, or Improvements different owners;
• The titles of ownership do not specify the
General rule: Requires consent of majority of terms under which they should contribute
co-owners representing the controlling interest to the necessary expenses; and
in the undivided thing. [Art. 489 and 492, CC] • There exists no agreement on the subject.
Note: The rules under Art. 492 are Part of the

applicable, so judicial intervention may be Manner of Contribution
House
resorted to. Main and party
walls, the roof, All owners contribute in
Summary and the other proportion to the value of
Act of Co- things used in the story belonging to each
Consent Needed common
Owner
Floor of the
Preservation entrance, front
(ex. Critical door, common All owners contribute pro
maintenance yard, and
May be made at will by rata or equally
work – roof leaks, sanitary works
cracks in the any co-owner, but
common to all
walls, electrical preferably notice is given
The floor of Each owner bears the cost
wiring system to others. [Arts. 488 and
which renders each co- of maintaining the floor of
489, CC] owner’s story
property his story
unsafe/unhealthy
to live in)
Alterations (ex. Consensus of all co-
Sale, mortgage,
assignment)
owners [Art. 491, CC]
Page 151 of 532

Stairs from the first Leon]. Extraordinary Prescription is the

entrance to the first story – opposite. No good faith or just title is required,
pro rata sharing of all but long possession under Art. 1132 , par. 2
owners except the owner of [De Leon].
the ground floor
Stairs Stairs from the first to the d. Partition or Division
second story - pro rata
sharing of all owners May be judicial or extrajudicial:
except the owner of the • Extrajudicial partition – The agreement
ground floor and that of the may be oral or written, done outside of
first story; and so on. court.
• Judicial partition – Governed by the
4. Termination of Co-ownership Rules of Court insofar as they are
consistent with the CC. [Art. 496, CC]
Means of Termination
a. Total Destruction of the Thing Owned in Action for partition will determine:
Common • Whether or not the plaintiff is indeed a co-
b. Merger of All Interests in One Person owner of the property
c. Acquisitive Prescription • How the property will be divided between
d. Partition the plaintiff and defendant
e. Sale of Property Co-Owned
f. Termination of Period Agreed upon in Co- Incidents of Partition
ownership • Mutual accounting for benefits received
and reimbursement for expenses made
a. Total Destruction of Thing or Loss [Art. 500, CC]
of the Property Co-Owned • Payment of damages by each co-owner
caused by reason of his negligence or
Exception: If a building is destroyed, there is fraud. [Art. 500, CC]
still co-ownership over the land and the debris. • Liability of each co-owner for defects of title
[Tolentino] and quality of the portion assigned to each
of the co-owners. [Art. 501, CC]
b. Merger of All Interests in One
Effects of Partition
Person • Confers exclusive ownership of the
property adjudicated to a co-heir. [Art.
This may take place by any of the causes which 1091, CC]
are sufficient to transmit title to an obligation, • Co-heirs shall be reciprocally bound to
either by assignment, subrogation, and sale of warrant the title to, and the quality of each
inheritance.
property adjudicated. [Art. 1092, CC]
• Reciprocal obligation of warranty shall be
c. Acquisitive Prescription proportionate to the respective hereditary
shares of co-heirs. [Art. 1093, CC]
This is a mode of acquiring ownership by a • An action to enforce the warranty must be
possessor through the requisite lapse of time. brought within 10 years from the date the
right of action accrues. [Art. 1094, CC]
It may be ordinary or extraordinary. [Art. 1117, • The co-heirs shall not be liable for the
CC] subsequent insolvency of the debtor of the
estate, but only for his insolvency at the
Ordinary Acquisitive prescription requires time the partition is made. [Art. 1095, CC]
possession of things in GOOD FAITH and with
a just title for the time fixed by the law [De
Page 152 of 532

Rights of Third Parties in Partition Partition of an indivisible thing [Art. 498, CC]
1. The partition of a thing owned in common 1st option: The co-owners can agree that one
shall not prejudice third persons, who shall of them shall be the sole owner by paying the
retain the rights of mortgage, servitude, or value of the other co-owners’ shares.
any real rights belonging to them before the
division was made. [Art. 499, CC] 2nd option: If they cannot agree who among
them shall be the sole owner, the property will
Note: A “third person” is defined as all be sold to a 3rd person and the proceeds will be
those who did not in any way participate or distributed among them.
intervene in the partition [Paras citing 3
Manresa 54 and Gonzaga v. Martinez, 9 e. Sale of Property Co-Owned [Art.
Phil. 489]. 498, CC]
2. The creditors or assignees of the co- The sale shall be resorted to only if:
owners may take part in the division of the • The property is essentially indivisible.
thing owned in common and object to its • The co-owners cannot agree that the entire
being effected without their concurrence. property be allotted or assigned to one of
[Art. 497, CC] them, who shall reimburse the other co-
owners of their shares.
Note: All kinds of creditors whether
preferred or ordinary are included within
f. Termination of Period Agreed
the scope of creditors; but they must have
become creditors during the existence of Upon by the Co-Owners [Art. 494.
the co-ownership and not before or after CC]
[Paras citing 3 Manresa 528-529].
An agreement to keep the thing undivided for a
Exception: If the partition was already certain period of time, not exceeding 10 years,
executed, the creditors/assignees cannot shall be valid. This term may be extended by a
impugn the same. new agreement.
Exception to the exception: There was fraud A donor or testator may prohibit partition for a
or a previous formal opposition against the period which shall not exceed 20 years.
partition, without prejudice to the right of the
debtor or assignor to maintain its validity. [Art.
497, CC] F. POSSESSION
The law does not expressly require previous
notice to the creditors and assignees before a
1. Characteristics
partition. [Tolentino]
Definition
If notice is not given, the partition is not binding
Possession is the holding of a thing or the
on the creditors and assignees.
enjoyment of a right. [Art. 523, CC]
But once notice has been given, it is the duty of
It includes the idea of occupation – i.e. the
creditors and assignees to intervene and make
person exercises control over the object. It
known their stand. If they fail to do so, they
cannot exist without it.
cannot question the division made, EXCEPT in
cases of fraud.
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Right of possession Right to possess ○ Possession in the eyes of the law

(jus possessionis) (jus possidendi) does not mean that a man has to
Incident to have his feet on every square
Independent right (ex: ownership (ex: meter of ground before it can be
Lessee possessing a person A lives in a said that he is in possession.
property) house that he [Ramos vs. Director of Lands, G.R.
owns) No. 13298, (1918)]
Possession may be exercised in one’s own 2. Acquisition of Possession

name or in that of another. [Art. 524, CC]
Ways of Acquiring Possession [Art. 531,
Possession is not a definitive proof of CC]
ownership nor is non-possession inconsistent a. By material occupation of a thing or the
therewith. [Heirs of G. Bofill v. CA, G.R. No. exercise of a right
107930 (1994)] b. By the fact that it is subject to the action of
our will
Essential Requisites of Possession c. By the proper acts and legal formalities for
• Material occupation – There must be acquiring possession
holding or control of a thing or right. Also
known as possession in fact. a. By the material occupation of a
• Intent to possess (animus possidendi) – thing or the exercise of a right
The holding must be with intention to
possess which reflects the state of mind of Possession is acquired through the following
the possessor. modes of constructive delivery:
• Traditio brevi manu – If the
Object of Possession [Art. 530, CC] transferee/buyer already had possession
• Must be susceptible of being appropriated of the object under a different title even
• Abandoned or property with no owner may before the sale (e.g., lessee, depositary
be possessed but cannot be acquired by subsequently buys the property)
prescription. • Traditio constitutum possessorium –
• Things must be within the commerce of the transferor/seller continues in the
men possession of the object, but not in the
concept of an owner (e.g., owner sells the
What May Not Be Possessed property and becomes lessee)
• Res communes
• Property of public dominion For constructive possession, see the
• Right under discontinuous and/or non- discussion under Characteristics of
apparent easement Possession.
Extent of Possession b. By the fact that the thing is subject

• Actual – consists in manifestation of acts
to the action of our will
of dominion over the thing of such a nature
as a party would naturally exercise over his
own property. Possession is acquired through the following
• Constructive – possession of a portion of modes of constructive delivery:
the thing under claim of ownership is a • Traditio simbolica – delivering an object
constructive possession of the whole of or symbol, and placing the thing under the
such thing, if the remainder is not in the control of the transferee (ex. Giving a key
adverse possession of another. where the thing or object is stored, kept or
under custody. Since the key is with the
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vendee, then it means that the latter can their legal representatives to exercise their
gain access to the object) rights arising from such possession.
• Traditio longa manu – the transferor
points out to the transferee the things Preference of Possession [Art. 538, CC]
which are being transferred, or they merely General Rule: Possession as a fact cannot be
agree or consent that delivery has been recognized at the same time in two different
effected personalities
c. By the proper acts and legal Exception: Co-possession

formalities established for
In case a dispute arises, the order of
acquiring such right
preference is as follows:
a. The present possessor shall be preferred
Acquisition by virtue of a just title such as when
b. If there are two possessors, the one longer
property is transmitted by succession,
in possession is preferred
donation, contract, or execution of a public
c. If the dates of the possession are the same,
instrument, etc.
the one who presents a title is preferred
d. If all the foregoing conditions are equal, the
Who Acquires Possession [Arts. 532-534,
thing shall be placed in judicial deposit
CC]
pending determination of its possession or
a. The same person who is to enjoy it
ownership through proper proceedings.
b. His legal representative
c. His agent
What Does Not Affect Possession
d. Any person without any power whatsoever
a. Acts merely tolerated [Art. 537, CC]
General rule: Only acquired upon
ratification • Those which because of
neighborliness or familiarity, the owner
Exception: In cases of negotiorum gestio
of property allows another person to do
(Person who voluntarily manages the
on the property [Tolentino]
property or business of another. In this
case, the stanger’s possession takes effect • Permissive use merely tolerated by the
even without ratification by the property possessor cannot affect possession
owner) and cannot be the basis of acquisitive
e. His heirs prescription. [Art. 1119, CC]
• If there is bad faith on the part of the o Possession to constitute the
foundation of prescriptive right
decedent: The effects of the
decedent’s wrongful possession will must be possession under
claim of title; it must be
not affect his heirs. The heir suffers the
adverse. [Cuaycong v.
consequences of such possession only
Benedicto, G.R. No. L-9989
from the moment he becomes aware of
the flaws affecting the decedent’s title (1918)]
[Art. 528 as cited in De Leon]. • A possessor by tolerance is
necessarily bound by an implied
• If there is good faith on the part of the
decedent: The effects of the promise to vacate upon demand, failing
which a summary action for ejectment
decedent’s possession will benefit the
heirs only from the date of his death. is the proper remedy against him.
[Peran vs. CFI, G.R. No. L-57259,
(1983)]
Legal Capacity to Acquire Possession [Art.
535, CC]
Minors and incapacitated persons may acquire
possession BUT they need the assistance of
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b. Acts executed clandestinely and of a competent court, if the holder

without the knowledge of the refuses to deliver the thing.
possessor [Art. 537, CC]
• Possession by the possessor is not 3. Effects of Possession
affected as long as it remains
clandestine and unknown. a. Possession in the concept of
● “Clandestine possession” is secret owner is converted into ownership
possession or possession by stealth. after the required lapse of time
The possession here must be unknown necessary of prescription [Art. 540,
to the owner. [Paras quoting 4 Manresa CC]
199]
• Possession has to be in the concept of • To consolidate title by prescription, the
an owner, public, peaceful and possession must be under claim of
uninterrupted. [Art. 1120, CC] ownership, and it must be peaceful, public,
and uninterrupted [Art. 1118, CC].
c. Acts of violence as long as the
• Acts of possessory character done by
possessor objects thereto [Art. 536, CC]
virtue of a license or mere tolerance on the
• Possession cannot be acquired part of the real owner do not apply for
through force or intimidation as long as purposes of acquisitive prescription. [Art.
there is a possessor who objects 1119, CC]
thereto.
• The following cannot acquire title by
o This includes forcibly taking prescription (i.e. they are not adversely
away the property from
possessing the property)
another, and also when one 1. Lessees, trustees, pledges, tenants
occupies the property in the on shares or planters and all those
absence of another, and repels who hold in the name or in
the latter upon his return.
representation of another.
[Tolentino]
2. Mere holders placed in possession of
o Force may be: 1) actual or the property by the owner, such as
threatened; 2) done by agents, employees.
possessor or agent, 3) done
3. Those holding in a fiduciary character
against the owner or any other like receivers, attorneys, depositaries
possessor or the owner’s
and antichretic creditors.
representative; 4) done to oust
4. Co-owner, with regard to common
the possessor [Paras]. property, EXCEPT: when he holds
o Art. 536 applies to one who
the same adversely against all of
believes himself the owner of them with notice to them the
real property. If he takes exclusive claim of ownership.
justice into his own hands, he is
a mere intruder and he can be
compelled to return the
b. Entitlement to fruits/expenses
property and must suffer the
POSSESSOR IN GOOD FAITH – Arts. 544,
NECESSARY and NATURAL
526-527, CC
consequences of his
lawlessness. [De Leon citing
1. As to the Fruits
Santiago v. Cruz, 54 Phil. 640]
• He who believes that he has an action
• Fruits already received [Art. 544(1),
or a right to deprive another of the
CC]
holding of a thing must invoke the aid
o Entitled to all the fruits until
possession is legally interrupted
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(i.e. before summons, or demand; 4. As to Ornamental Expenses or

see Art. 528 for when possession Expenses for Pure Luxury [Art. 548,
in good faith is interrupted) CC]
• Fruits still pending [Art. 545, CC]
o Entitled pro-rata to the fruits The possessor in good faith is not
already growing when his entitled to a refund for ornamental
possession is legally interrupted. expenses. But he may remove the
ornamental improvements if they do
2. As to the Necessary Expenses [Art. not cause damage to the principal
546, (1), CC] thing.
Definition: necessary for the Exception: The one who recovers

preservation of the thing [Art. 452, CC possession decides to refund the
by analogy]. The possessor in good ornamental expenses/ expenses for
faith may retain the thing until he is pure luxury.
reimbursed for necessary expenses.
POSSESSOR IN BAD FAITH
3. As to the Useful Expenses [Arts. 546
(2) and 547, CC] 1. Possessor in Bad Faith
• One who is aware that there exists in
• Definition: incurred to give greater his title or mode of acquisition a flaw
utility or productivity to the thing which invalidates it. [Art. 526, CC]
o They are reimbursed only to the 2. Rights of a possessor in bad faith
possessor in GF as a • Right to be respected in possession;
compensation or reward for him. [Art. 539, CC]
Possessor in BF cannot recover • Right to necessary expenses and the
such expenses. expenses for production, gathering,
o The possessor in good faith may and preservation of fruits [Arts. 545 and
retain the thing until he is 546; Art. 443, CC]
reimbursed for useful expenses. • Does not have right to reimbursement
o The person who defeats the of expenses for luxury but may remove
possessor in possession has the them as long as the principal thing
option to: suffers no injury or may sell them to the
o Refund the amount of owner who opts to buy the removable
expenses; or ornaments. [Art. 549, CC]
o Pay the increase in value • No right to reimbursement for useful
which the thing may have improvements and no limited right of
acquired. removal.
o The possessor has the option of
removing the useful improvements, 4. Loss of Movable or Unlawful
provided there is no damage to the
principal thing. [Art. 547, CC] Deprivation of a Movable
o Exception: When the
option to pay for the value One who has lost any movable or has been
of the expenses or the unlawfully deprived thereof, may recover it
increase in value of the from the person in possession of the same.
thing is exercised by the [Art. 559, CC]
person who recovered
possession. Note: Relate this to Art. 556 which states that
the possession of movables is not deemed
LOST so long as they remain under the control
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of the possessor even though FOR THE TIME possession (whether in bad faith or good
BEING he may not know their whereabouts faith). [Art. 1140, CC] Subject to Article
(e.g. A ring misplaced or just lost in a particular 1505 and Article 559.
place or vicinity). The possessor has not lost • 4 years – action to recover prescribes if
his legal right to the object. He retains his there is uninterrupted possession in good
juridical control of the thing which remains in faith, subject to Article 1505 and Article
his, and not another’s patrimony [De Leon 559. [Art. 1132, CC]
citing 4 Manresa 323]. • No prescription – if possessed through a
crime. [Art. 1133, CC]
Possession of Movable Acquired in Good
Faith (in Concept of Owner) is Equivalent to Finder of Lost Movable [Arts. 719-720, CC]
Title [Art. 559, CC] a. Whoever finds a movable, which is not a
treasure, must return it to its previous
Doctrine of Irrevindicability: Possession in possessor.
good faith of a movable is a presumed b. If the previous possessor is unknown, the
ownership. It is equivalent to a title. However, it finder shall immediately deposit it with
is merely presumptive because it can be the mayor of the city or municipality
defeated by the true owner. where the finding has taken place.
c. The finding shall be publicly announced
Requisites of the doctrine of by the mayor for two consecutive weeks
Irrevindicability in the way he deems best.
1. The possession should be in good faith; d. If the movable cannot be kept without
2. The former owner voluntarily parted with deterioration, or without expenses which
the possession of the thing; and considerably diminish its value, it shall be
3. The possession is in the concept of sold at public auction 8 days after the
owner. publication.
e. Six (6) months from the publication
Exception: One who has lost or has been having elapsed without the owner having
unlawfully deprived of a movable may recover appeared, the thing found, or its value,
it from whoever possesses it without shall be awarded to the finder. The finder
reimbursement and the owner shall be obliged, as the
case may be, to reimburse the expenses.
The owner of the thing must prove: f. If the owner should appear in time, he
(a) ownership of the thing, and shall be obliged to pay, as a reward to the
(b) loss or unlawful deprivation; or bad faith of finder, 1/10 of the sum or of the price of
the possessor the thing found.
Exception to the Exception 5. Possession in the Concept of

• Where the owner acts negligently or
voluntarily parts with the thing owned, he Owner, Holder, One’s Own
cannot recover it from the possessor Name, and in the Name of
• If the possessor of the movable acquired it Another
in good faith at a public sale, the owner
cannot obtain its return without first The possession of things or rights may be had
reimbursing the price paid therefore by the in one of two concepts: either in the concept of
keeper [Art 559. Par 2, CC] owner, or in that of the holder of the thing or
right to keep or enjoy it, the ownership
Period to Recover Movable Property [NCC pertaining to another person [Art. 525, CC].
Arts. 1140, 1132, 1133]
• 8 years – from the time the possession of Classifications of Possession
the movable is lost, for uninterrupted a. In one’s own name or in that of another
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b. In the concept of holder b. Trustees, including: parents over the

c. In the concept of owner properties of their children; and husband
d. In good faith or in bad faith and wife over each other’s property
c. Antichretic Creditors
Possession for Oneself, or d. Agents
Possession Exercised in One’s e. Attorneys regarding their client’s properties
Own Name and Possession in f. Depositaries
g. Co-Owners
the Name of Another [Art. 524,
CC] Possession in the Concept of
1. In one’s own name – the fact of
an Owner
possession and the right to such
possession is found in the same i. Concept of ‘Owner’
person. • Other people believe through one’s
2. In the name of another – the one in actions, that he or she is the owner
actual possession is without any right of the property and is considered in
of his own, but is merely an instrument the opinion of others as owner
of another in the exercise of the latter’s • Regardless of good faith or bad
possession. It can either be: faith
● Voluntary – when exercised by • Contrary to concept of holder
virtue of an agreement, e.g. agents or wherein one recognizes another to
administrators appointed by the be the owner of the property
owner or possessor. Third person • May be exercised by the owner
may also voluntarily exercise himself or one who claims to be so.
possession in the name of another, • DOES NOT refer to the
but it does not become effective possessor‘s inner belief or
unless ratified by the person in disposition regarding the property
whose name it is exercised. in his possession.
● Necessary or legal – when
exercised by virtue of law, e.g. ii. Possession in the Concept of Owner
representatives who exercise • Possession in the concept of an
possession in behalf of a conceived owner refers to his overt acts which
child, juridical persons, persons not tend to induce the belief on the part
sui juris, and the CPG. of others that he is the owner.
• Possession in the concept of an
Possession in the Concept of owner is ius possidendi.
• If a person possesses in the
Holder with the Ownership
concept of owner—he may
Belonging to Another [Art. 525, eventually become the owner by
CC] prescription
○ Thus, a possessor merely in
One who possesses as a mere holder, not in the concept of holder cannot
the concept of owner, acknowledges in another acquire property by acquisitive
a superior right which he believes to be prescription—one cannot
ownership, whether his belief is right or wrong, recognize the right of another
e.g. tenant, usufructuary, borrower in and at the same time claim
commodatum. adverse possession.
Examples of Possession in Concept of Holder

a. Lessees
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6. Rights of the Possessor 14. Right to be respected and

protected/restored in his/her possession by
the means established by the laws and the
Possessor In Good Faith [Arts.
Rules of Court. [Art. 539, CC]. These
526-527, 544, 546-547, 548, 552, include summary actions (forcible entry
1132, 1134, CC] and unlawful detainer), accion publiciana,
and action for replevin. Accion
i. Possessor in Good Faith reivindicatoria is not included. “Every
possessor” – includes all kinds of
One who is unaware that there exists a flaw possession, from that of an owner to that of
which invalidates his acquisition of the thing. a mere holder, except that which
He believes that the person from whom he constitutes a crime.
received a thing was the owner of the same 15. Lawful possessor can employ self-help
and that therefore he is now the owner based [Art. 429, CC]
upon ostensible title or mode of acquisition, 16. Possession of an immovable extends to
e.g. sale, donation, inheritance, or other means the movables within or inside [Arts. 542
of transmitting ownership. [Art. 526, CC] and 426, CC]
ii. Rights of a Possessor in Good Faith: Exception: When it is shown or proven that
such movables should be excluded
1. Fruits [Art. 544, CC]
2. Refund of necessary expenses [Art. 546, iii. Other Consequences:
CC]
3. Refund of useful expenses [Art. 546, CC] 1. Possession is converted into ownership
4. Right of retention when there are unpaid after the required lapse of time necessary
necessary or useful expenses [Art. 546, of prescription [Art. 540, CC]
CC] ● To consolidate title by prescription,
5. Removal of useful/ornamental the possession must be under claim
improvements without damage to the of ownership, and it must be
principal thing [Arts. 546-547, CC] peaceful, public and uninterrupted.
6. No liability for deterioration or loss, except [Art. 1118, CC]
in cases of fraudulent intent or negligence ● Acts of possessory character done
[Art. 552, CC] by virtue of a license or mere
7. May acquire full ownership by prescription tolerance on the part of the real
[Arts. 1117-1138, CC] owner are not sufficient and will not
8. Presumption of just title [Art. 541, CC] confer title by prescription or adverse
9. Can ask for the inscription of possession in possession. [Art. 1119, CC]
the Registry of Property [Art 708, CC] ● The following cannot acquire title by
10. Generally, he/she can do on the things prescription:
possessed everything that the law ○ Lessees, trustees, pledges,
authorizes an owner to do until he/she is tenants on shares or planters,
ousted by one who has a better right and all those who hold in the
11. Can exercise the right of pre-emption and name or in representation of
is entitled to indemnity in case of another.
appropriation ○ Mere holders placed in
12. Has presumption of continuity of good faith possession of the property by the
[Arts. 528-529, CC] owner such as agents and
13. Non-interruption of possession employees.
(possession during intermediate period) ○ Those holding the title in a
[Arts. 554 and 561, CC] fiduciary character such as
receivers, attorneys,
Page 160 of 532

depositaries, and antichretic As to ornamental expenses or expenses for

creditors. pure luxury [Art. 548, CC]
○ Co-owner, with regard to • The possessor in good faith is not entitled
common property: to a refund for ornamental improvements
but such improvements may be removed if
Exception: When he/she holds the they do not cause damage to the principal
same adversely against all of the other thing.
co-owners with notice to them of the
exclusive claim of ownership. Possessor in Bad Faith
2. Entitlement to fruits/expenses: Possessor i. Definition
in Good Faith [Arts. 544, 526-527, CC]
One who is aware that there exists in his/her
As to the fruits title or mode of acquisition any flaw which
• Fruits already received [Art. 544(1), CC]: invalidates it. [Art. 526, CC]
Entitled to all the fruits received before
possession is legally interrupted. (i.e. ii. Requisites:
before summons)
• Fruits still pending [Art. 545, CC]: Entitled 1. Possessor has a title or mode of
to prorate the fruits already growing when acquisition;
possession is legally interrupted. 2. There is a flaw or defect in said title or
mode;
As to necessary expenses [Art. 546(1), CC] 3. Examples of vice or defect in title:
• Imposed by the thing itself and have no ● Grantor was not the owner.
relation to the desire or purpose of the ● Requirements for transmission were not
possessor; hence they are reimbursed, complied with.
whatever may be the juridical character of ● Mistake in the identity of the person.
the person who advanced them. ● Property was not really res nullius.
• The possessor in good faith may retain the 4. The possessor is aware of the flaw or
thing until he/she is reimbursed for defect in the title.
necessary expenses.
iii. Rights of a Possessor in Bad Faith:
As to useful expenses [Arts. 546 (2) and
547, CC] 1. Right to be respected in possession. [Art.
• Incurred to give greater utility or 539, CC]
productivity to the thing. 2. Right to necessary expenses and the
• They are reimbursed only to the possessor expenses for production, gathering, and
in good faith as a compensation or reward. preservation of fruits. [Arts. 545-546, CC]
A possessor in bad faith cannot recover 3. Does not have right to reimbursement of
such expenses. expenses for luxury but may remove them
• The possessor in good faith may retain the as long as the principal thing suffers no
thing until he/she is reimbursed for useful injury or may sell them to the owner who
expenses. opts to buy the removable ornaments. [Art.
• The other party has the option to: 549, CC]
○ Refund the amount of 4. No right to reimbursement for useful
expenses; or improvements and no limited right of
○ Pay the increase in value which removal. [Art. 546, CC]
the thing may have acquired. 5. Right to remove ornamental improvements
or be paid the value of such at the time of
recovery but at the owner’s option.
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iv. Obligations of a Possessor in Bad

Faith:
G. USUFRUCT
1. Reimburse the value of fruits received and
which the legitimate possessor could have
received. [Art. 549, CC] 1. Characteristics
2. Pay in proportion to the charges, expenses
of cultivation and the net proceeds upon Usufruct is a temporary real right which gives a
cessation of good faith. [Art. 545, CC] right to enjoy the property as well as its fruits of
3. Bear the costs of litigation. [Art. 550, CC] another with the obligation of preserving its
4. Liability to the deterioration/loss of a thing form and substance, unless the title
possessed in every case, including constituting it or the law otherwise provides.
fortuitous events. [Art. 552, CC] [Art. 562, CC]
Constituted by: [PILL: Prescription, Inter vivos

7. Loss or Termination of acts, Law, Last Will]
Possession 1. Law
2. Will of private persons expressed in acts
A possessor may lose his possession [Art. inter vivos
555, CC]: 3. Will of private persons expressed in a last
1. By the abandonment of the thing; will
4. Prescription [Art. 563, CC]
Note: The one who abandons must have
been a possessor in the concept of an Can be constituted over:
owner [Paras quoting 4 Manresa 315]. 1. The whole or part of the fruits of the thing
2. A right, provided it is not strictly personal or
2. By an assignment made to another either intransmissible. [Art. 564, CC]
by onerous or gratuitous title;
General Characteristics
Note: There should be complete • Nature: It is a real right of the use and
transmission of ownership to another enjoyment of the property, whether or not
person [Paras]. the same be registered in the Registry of
Property;
3. By the destruction or total loss of the thing,
or because it goes out of commerce; Note: It must be registered in the Registry of
4. By the possession of another for more than Property to prejudice third persons (Art 709,
one year, subject to the provisions of Art. CC)
537 (acts merely tolerated, clandestine o It is transmissible
acts and violence). But the real right of • Term: Of temporary duration;
possession is not lost till after the lapse of • Purpose: To enjoy the benefits and derive
10 years. all advantages from the thing due to normal
exploitation;
Other Causes for loss of possession: • Scope: May be constituted on real or
1. Acquisitive prescription; personal property, consumable or non-
2. Recovery by another lawfully entitled consumable, tangible or intangible, the
person/entity. ownership of which is vested upon another.
Natural Characteristics
• Includes jus abutendi, jus utendi, jus
fruendi and jus possidendi and jus
vindicandi. The only thing left with the
Page 162 of 532

grantor of the usufruct is the jus Legal: as provided by law.

disponendi. Usufruct of parents over
• Usufructuary must preserve the form or the property of
substance of the thing. (ex: Usufruct over a unemancipated children.
house to be used as a dwelling by the (now limited to the
usufructuary cannot be transformed into a collective daily needs of the
boarding house where other people can family) [Art. 226, CC]
occupy the same – akin to De Leon’s Mixed: created both by law
comments, p. 413) and the acts of persons, i.e.
• Preservation is a natural requisite, not by acquisitive prescription.
essential because the title constituting it, The rights and duties of the
the will of the parties, or the law may usufructuary provided by
provide otherwise. law may be modified or
• Usufruct is extinguished by the death of the eliminated by the parties. If
usufructuary. the usufructuary is
• A person cannot create a usufruct over his authorized to alienate the
own property and retain it at the same time. thing in case of necessity, it
[De Leon quoting Gaboya v. Cui, 38 SCRA is the usufructuary who
85 (1981)] determines the question of
necessity
Reasons for preserving form and Simple: only one
substance usufructuary enjoys the
• To prevent extraordinary exploitation; property.
• To prevent abuse, which is frequent; Multiple: several
• To prevent impairment. usufructuaries enjoy the
property as co-
Exception: In an abnormal usufruct, alteration usufructuaries.
is allowed. Simultaneous: at the
same time.
2. Classification Successive: one after the
other.
Voluntary: created by the As to Limitations
will of private persons Number of • If by donation, ALL
• By act inter vivos – such Beneficiaries donees must be alive. [Art.
as contracts and 756, CC]
donations: • Fiduciary and the second
• By donation of the heir must be alive at the
usufruct; time of the death of the
As to Manner • By retention of the testator. [Art. 863, CC]
of Creation usufruct by donor; • If by testamentary
• Where a usufruct is succession, there must be
constituted inter vivos and only 2 successive
for valuable consideration, usufructuaries, and both
the contract is must be alive or at least
unenforceable unless in already conceived at the
writing; time of the testator’s death
• By act mortis causa – and later born alive. [Art.
such as testament 869, CC]
As to Object Rights: Must not be strictly
of Usufruct personal or
intransmissible.
Page 163 of 532

Normal: involves non- i.e. over an entire

consumable things which patrimony, a while
the usufructuary can enjoy inheritance of a
without altering their form compulsory heir, a
or substance (e.g. form and dowry;
substance are preserved).
SPECIAL CASES OF USUFRUCT
Abnormal or irregular:
when the usufruct includes a. Usufruct over a Pension or a Periodical
things which cannot be Income [Art. 570, CC]
used in a manner Covers the right to receive: 1) rent or periodical
appropriate to its nature pensions in money or fruit; 2) interest on bonds
without being consumed, or securities; and 3) enjoyment of benefits from
and if not consumed, may an industrial/commercial enterprise.
be useless. (ex: money,
grain, liquors, per De Leon Each payment/benefit shall be considered a
p. 414). civil fruit. Being a civil fruit, the usufructuary is
Quasi-usufruct [Art. 574, entitled to it in proportion to the time the
CC] Includes things which usufruct lasts. The date when the benefits
cannot be used without accrue determines whether they should belong
being consumed. Money to the usufructuary or to the owner. [De Leon,
may be the object of p. 423]
usufruct.
Pure – without term or b. Usufruct of Property Owned in Common
condition [Art. 582, CC]
The usufructuary takes the place of the co-
With a term – with a period,
owner as to:
which may either be
1. Management;
As to suspensive (from a certain
2. Fruits; and
Effectivity day) or resolutory (to a
3. Interest.
certain day)
Conditional – subject to a
Rationale: A co-owner has full ownership of his
condition which may either
part and he may alienate, assign, mortgage or
be suspensive (from a
give it in usufruct without the consent of the
certain event) or resolutory
others [Art. 489, CC]
(until a certain event)
Total: all
Note: If a co-owner gives the usufruct of his
consumed by the
share to a person, the usufructuary shall
usufruct.
exercise all the rights pertaining to the co-
As to Partial:
owner regarding the administration and the
Fruits constituted only on
collection of fruits.
a part or certain
As to Extent aspects of the
Effect of partition:
of the usufruct’s fruits.
1. The right of the usufructuary is not
Usufruct Singular: only on affected by the division of the property
particular property in usufruct among the co-owners but
As to of the owner. he is considered bound by such
the Universal: partition made by the owners of the
object pertains to the property.
usufruct over
universal property,
Page 164 of 532

2. After partition, the usufruct is ensure that the remaining trees may properly
transferred to the part allotted to the co- grow.
owner.
e. Usufruct on a Right of Action to Recover
c. Usufruct Constituted on a Flock or Herd Property or Real Rights Over Property
of Livestock [Art. 591, CC] [Art. 578, CC]
! On sterile stock: same rules on fungible ● The action may be brought in the name
property govern. (i.e. it is an abnormal of the usufructuary.
usufruct – may dispose of or consume ● If the purpose is the recovery of the
the animal [Art. 574, CC] property or right, he also has the right
! ON FRUITFUL STOCK: Must replace to oblige the owner to give the authority
ordinary losses of the stock with the for such purpose, as well as to furnish
young if: him whatever pieces of evidence he
1. Some animals die from natural may have.
causes; or; ● Relate to Rule 3, Sec. 2 of the Rules of
2. Some animals are lost due to Court or any amendments in relation
rapacity of beasts of prey. thereto as usufructuary being a real
party in interest.
Note: If the number of the young
produced is less than the animals that f. Usufruct on Mortgaged Property [Art.
died from natural causes or due to 600, CC]
beasts of prey, then the usufructuary • If the usufruct is over the entire
does not have to replace those which patrimony of the owner, Art. 598, CC
are in excess of the young that he should apply. If the usufructuary
currently has. mortgaged the usufruct himself, he is
liable to pay his own debt.
! No obligation to replace if:
1. There is a total loss of animals g. Usufruct over an Entire Patrimony [Art.
because of some unexpected or 598, CC]
unnatural loss (like contagious Applies when:
disease or any other uncommon 1. The usufruct is a universal one;
event, provided the usufructuary 2. The naked owner has debts or is
has no fault); or obliged to make periodical payments
2. All perish, the usufructuary should
deliver the remains to the owner. If General Rule: The usufructuary is NOT
there is partial loss, the usufruct liable for the owner’s debts.
subsists on the remainder.
Exceptions:
d. Usufruct over Fruit Bearing Trees and 1. When stipulated, in which case the
Shrubs and Woodlands [Arts. 575-577, usufructuary shall be liable for the debt
CC] specified
The usufructuary may fell or cut trees in 2. If there is no specification, he is liable
accordance to the following: only for debts incurred by the owner
1. Habitual felling or cutting of the owner; before the usufruct was constituted
2. Customs of the place as to manner, 3. When the usufruct is constituted in fraud
amount, and season of creditors
Note: The rule in accession if a tree falls on h. Usufruct over Property that Deteriorates
another’s land - he cannot fell or cut trees in a [Art. 573, CC]
manner that will prejudice the land. The • Definition of Deteriorates: Without
usufructuary may make necessary thinnings to being consumed, gradually deteriorate
Page 165 of 532

through wear and tear (e.g. House, 1. To mortgage the right of

furniture, drapes, equipment). The usufruct except parental
usufructuary is not liable for usufruct
deterioration due to fortuitous event. [De 2. To alienate the usufructuary
Leon, p. 426] right [Paras, pp. 589-590]
• Right of Usufructuary: To make use of 3. To bring action and oblige
it in accordance with the purpose for owner to give him proper
which they are intended. authority and necessary proof
• Obligation of Usufructuary: Returns in a usufruct to recover
the things in the condition in which they property or a real right under
may have been found at the time of the Art. 578
expiration of the usufruct despite
ordinary defects caused by use and 3. Rights and Obligations of
deterioration produced by age and time.
○ Exception: When it is caused by the
Usufructuary
usufructuary’s fraud and negligence
(His obligation can be set off against Rights
improvements made on the property 1. Right to the thing
under art. 580) 2. Right to the fruits
3. Right to lease the thing
• If usufructuary does not return the
things upon the expiration of the 4. Right to improve the thing
usufruct, he should pay an indemnity 5. Right of retention
6. Right to mortgage or alienate the right of
equivalent to the value of the things at
usufruct
the time of such expiration.
7. Right to bring action [Art. 579, CC]
i. Usufruct over Consumable Property 8. Right to set off improvements [Art. 580, CC]
[Art. 574, CC] 9. Right to use/leave dead trunks [Art. 575-
576, CC]
• Consumable: Cannot be used without
10. Right to return but indemnify owner if there
being consumed; example: food.
is deterioration [Art. 573, CC]
• Right of Usufructuary: To make use
11. Right to exercise rights of co-owner [Art.
of them Obligation of Usufructuary
582, CC]
upon return:
1. If they were appraised at the time
Obligations:
of delivery, pay their appraised
1. To make inventory
value.
2. To give a bond for faithful performance of
2. If they were not appraised at time
duties as usufructuary
of delivery, either return the same
3. To take care of the thing
goods in the same quality and
4. To undertake ordinary repairs
quantity, or pay the current price at
5. To notify owner of need to undertake
time of cessation of usufruct.
extraordinary repairs
! Usufruct over hidden treasure: The
6. To pay annual charges and taxes on the
usufructuary, not being the landowner,
fruits.
is not entitled as owner but is entitled
7. To shoulder costs of litigation
as finder to one half of the treasure. If
8. To deliver the thing in usufruct to the owner
somebody else is the finder, the
in the condition received.
usufructuary gets nothing. [4 Manresa,
9. To pay debts
p. 386-387]
10. To replace animals that die
! Rights of the Usufructuary as to the
11. To make inventory and give security
usufruct itself:
Page 166 of 532

RIGHTS OF USUFRUCTUARY N.B. In the case of civil

fruits, no need to
a. Rights as to the Thing and its Fruits prorate,
as civil fruits accrue
[SER3IAL: Set-off, Enjoy, Receive, Remove, daily [Art. 544, CC]
Retain, Improve, Accession, Lease]
a. To enjoy the property personally [Art. 572, Right to Civil Fruits – deemed to accrue daily
CC] and belong to the usufructuary in proportion to
b. To receive the fruits of the property [Art. the time the usufruct may last. [Art. 569, CC]
567, CC]
Special Rule as to Usufruct on Rent,
b. Right to natural and industrial fruits Pension or Interest
pending at the beginning of usufruct Whenever a usufruct is constituted on the right
to receive a rent or periodical pension, whether
Fruits in money or in fruits, or in the interest on bonds
pending at Fruits pending at the or securities payable to bearer, each payment
the termination of the due shall be considered as the proceeds or
beginning of usufruct fruits of such right. [Art. 570 par. 1, CC]
the usufruct
Belong to the Belong to the naked owner Special Rule as to benefits from enterprise
usufructuary with no date fixed for distribution:
Without need The owner shall reimburse Whenever it consists in the enjoyment of
to reimburse to the usufructuary ordinary benefits accruing from a participation in any
the expenses cultivation expenses from industrial or commercial enterprise, the date of
to the owners the proceeds of the fruits the distribution of which is not fixed, such
(not to exceed the value of benefits shall have the same character. [Art.
the fruits) 570 par. 2, CC]
Fruits pending Special Rule for a Usufruct over a co-owned

Fruits pending at the at the property:
beginning of the termination of To exercise all rights of the particular co-owner
usufruct the with respect to the administration and
usufruct collection of fruits/interests from the aliquot
Without prejudice to the Rights of innocent share of property [Art. 582, CC]
right of 3rd persons e.g. 3rd parties should
if the fruits arose by not be Should co-ownership cease by reason of
building, planting, prejudiced. partition, the usufruct of the part allotted to the
sowing by a possessor co-owner shall still belong to the usufructuary.
in good faith, the
pending crop expenses c. Right to lease the thing in usufruct
of cultivation and of the [Art. 572, CC]
net harvest and
charges shall be i. Can be leased without consent
prorated between said of owner.
possessor and the
usufructuary in Exceptions:
proportion to the time of • Caucion Juratoria, wherein the lease
possession [Art. 545, would show that the property is not
CC] needed by the usufructuary and
therefore the use for which the usufruct
was constituted is changed.
Page 167 of 532

• Condition imposed by naked owner i.e. e. Right to make improvements on the

Usufruct is purely personal, e.g. title property as he may deem proper
creating usufruct provides that [Art. 579, CC]
usufructuary shall personally use and
enjoy the property given in usufruct. i. He may improve the thing without
• Legal usufructs cannot be leased. altering its form and substance.
ii. He is not entitled to indemnification.
ii. The period of the lease is co- iii. He may also remove improvements
extensive with the period of made by him if it is possible to do so
usufruct. without damage to property.
Exception: Lease of rural lands will subsist Note: The option to remove improvements
during the agricultural year despite belongs to the usufructuary, and the naked
expiration of the usufruct [Art. 572, CC] owner cannot compel him to do so, neither
can the owner compel the usufructuary to
Rules as to Lease: leave the improvements and just pay for
• A lease executed by the usufructuary their value.
before the termination of the usufruct and
subsisting after the termination of the iv. The usufructuary has the right to set-off
usufruct must be respected, but the rents the improvements on the property
for the remaining period will belong to the against any damage to the same [Art.
owner. 580]
• If the usufructuary has leased the lands or
tenements given in usufruct, and the Note: Registration of improvements – to
usufruct should expire before the protect usufructuary against 3rd persons
termination of the lease, he or his heirs and
successors shall receive only the f. Right of retention: to retain the
proportionate share of the rent that must be thing/property until he is
paid by the lessee. [Art. 568, CC] reimbursed for taxes on the capital
• A lease executed by the owner before the and advances for extraordinary
creation of the usufruct is not extinguished expenses [Art. 612, CC]
by such usufruct.
The usufructuary has the right of retention until
Notes: he is reimbursed of the amount he paid for
• Future crops may be sold but such sale taxes and the increase in value caused by the
would be void if usufruct terminates prior to extraordinary repairs he made.
harvest of future fruits. The buyer’s remedy
is to recover from the usufructuary. RIGHTS AS TO THE LEGAL RIGHT OF
• The usufructuary-lessor is liable for the act USUFRUCT ITSELF
of the substitute. [ABE – Alienate, Bring action, Exercise all
• A usufructuary who alienates or leases his rights]
right of usufruct shall answer for any
damage which the things in usufruct may i. To alienate or mortgage the right
suffer through the fault or negligence of the itself [Art. 572, CC]
person who substitutes him. [Art. 590, CC]
The usufructuary may alienate his right of
d. Right to enjoy any increase which usufruct, even by a gratuitous title (e.g.
the thing may acquire through donation); but all the contracts he may enter
accession [Art. 571, CC] into as such usufructuary shall terminate upon
the expiration of the usufruct. [Art. 572, CC]
Page 168 of 532

Except 3. Gratitude on the donee’s part demands

1. Parental usufruct [Arts. 225 and 226, FC] that the donor be excused from filing
2. Usufruct given in consideration of the the bond.
person of the usufructuary intended to 4. Title constituting usufruct excused
last during his lifetime usufructuary.
5. A usufructuary may take possession
ii. To bring action and oblige the owner under a caucion juratoria (bond by
to give him proper authority and oath) [Art. 587, CC]
necessary proof in cases of usufruct 6. When there is waiver by the naked
to recover real property, real right, owner [Paras (Property), p. 612].
or movable property [Art. 578, CC] 7. When the usufructuary is the donor of
the property who has reserved the
The action may be brought in the name of the usufruct [Art. 584, CC].
usufructuary. 8. When there is a parental usufruct
under the Family Code [Art. 225, CC].
If a favorable judgement is obtained, the
usufruct shall be limited to the fruits, and the Requisites of Caucion juratoria:
naked ownership shall belong to the owner. 1. Proper court petition;
[Art. 578, CC] 2. Usufruct is over a house, furniture or
tools of a trade and the necessity for
OBLIGATIONS OF USUFRUCTUARY delivery of furniture, implements or
house included in the usufruct;
i. Obligations at the beginning of the 3. Approval of the court; and
usufruct or before exercising the 4. Sworn promise.
usufruct
Note: These requirements are not conditions
• To make, after notice to the owner or his precedent to the commencement of the right of
legitimate representative, an inventory of the usufruct but merely to the entry upon the
all the property, which shall contain an possession and enjoyment of the property.
appraisal of the movables and a
description of the condition of the Effect of failure to give bond: [Art. 586, CC]
immovables [Art. 583 (1), CC] a. The owner may demand that the
immovable properties be placed under
Exceptions to making inventory administration;
a. No one will be injured thereby [Art. 585, b. That the movable properties be sold and
CC] the proceeds of the sale be the property
b. Title constituting usufruct excused the held in usufruct – legal interest of 6% shall
making of inventory. be the fruits;
c. Title constituting the usufruct already c. That the public bonds, instruments of credit
made the inventory. payable to order or to bearer be converted
into registered certificates or deposited in a
• To give security, binding himself to fulfill bank or public institution; and
the obligations imposed upon him in d. That the capital or sums in cash and the
accordance with this Chapter. [Art. 583 (2), proceeds of the sale of the movable
CC] property be invested in safe securities.
e. The owner may, until the usufructuary
Exceptions to Giving Security gives security, retain in his possession the
1. No prejudice would result; [Art. 585, property in usufruct as administrator,
CC] subject to the obligation to deliver to the
2. Usufruct is reserved by a donor; [Art. usufructuary the net proceeds, after
584, CC] deducting the sums, which may be agreed
Page 169 of 532

upon or judicially allowed him for such usufruct or the fault or negligence of the
administration. usufructuary’s agent. [Art. 590, CC]
ii. Obligations during the usufruct iii. Obligations at the Time of the
Termination of the Usufruct
[CAPCORN – Care, Allow improvements, Pay
AIDE (Annual taxes, Interest, Debts, Expenses [RIP – Return, Indemnify, Pay interest]
for litigation), Collect credit, Ordinary repairs, a. To return the thing upon termination.
Replace animals, Notify UP (Urgent repairs, b. To pay legal interest for the duration of the
Prejudicial act)] usufruct on the expenses for extraordinary
a. To take Care of the property as a good repairs, if naked owner made the repairs
father of the family [Art. 589] [Art. 594, CC]
b. To make Ordinary repairs – required by the c. To pay proper interest on sums paid as
wear and tear due to the natural use of the taxes by the owner
thing and are indispensable for its d. To indemnify the naked owner for any loss
preservation. [Art. 592, CC] caused by the negligence of the
c. To inform/Notify the owner of urgent usufructuary or his transferees
extraordinary repairs [Art. 593, CC]
d. To Allow the naked owner to make works 4. Rights of the Owner
and improvements of which the immovable
in usufruct is susceptible, or plantings, if
a. At the Beginning of the Usufruct
rural [Art. 595, CC].
See obligations of usufructuary at the
Provided:
beginning of the usufruct discussed above.
1. The works or improvements are not
prejudicial to the usufructuary’s
rights. b. During the Usufruct
2. No diminution in the value of the
object in usufruct. 1. The owner retains title to the thing or
e. To pay Annual taxes and charges on the property.
fruits for the time the usufruct lasts. [Art. 2. He may alienate the property. [Art. 581,
596, CC] CC] He may not alter the form or substance
f. To pay Interest on taxes on capital paid by of the thing, nor do anything prejudicial to
the naked owner. [Art. 597, CC] the usufructuary.
g. To pay Debts if the usufruct is over the 3. He may construct buildings, make
entirety of a patrimony [Art. 598, CC] improvements and plantings, provided:
h. To Secure the approval of the owner or the ● The value of the usufruct is not
court to collect credit which form part of the impaired; and
usufruct, if he has not given proper security ● The rights of the usufructuary are not
or has been excused from giving security. prejudiced. [Art. 595, CC]
[Art. 599, CC] 4. He can constitute a voluntary easement
i. To notify owner of any Prejudicial act to the over land/building held in usufruct without
rights of ownership over the usufruct, by a the usufructuary’s consent. But if it affects
third person. [Art. 601, CC] the usufructuary’s right, the latter must give
his consent. [Art. 689, CC]
Consequence: He is liable for damages if ! If the easement is perpetual, the
he fails to give notice. consent of both must be obtained. [Art.
j. To pay Expenses and costs for litigation if 690, CC]
incurred because of the usufruct. [Art. 602,
CC] To answer for fault or negligence of the
one he alienated, leased to the object of the
Page 170 of 532

● In this case, the death of the

5. Extinction, Termination, and usufructuary would not affect the
usufruct and the right is instead
Extinguishment transmitted to the heirs of the
usufructuary until the expiration of the
HOW EXTINGUISHED; TERMINATED term or the fulfillment of the condition.
a. By the death of the usufructuary b. By the expiration of the period for

which it was constituted
Usufruct is personal and it cannot be extended
beyond the lifetime of the usufructuary. Special Cases of Period:
[Eleizegui v. Lawn Tennis Club, 2 Phil 309 1. Special case of juridical persons [Art. 605,
(1903)]. CC]
● Usufruct cannot be constituted in favor
This is true even if a resolutory period or of a town, corporation, or association
condition has been stipulated and the for more than 50 years.
usufructuary dies before the expiration of the ● If before the expiration of such period
period or the fulfillment of the condition. [De the town is abandoned, or the
Leon] corporation or association is dissolved,
the usufruct shall be extinguished.
Exceptions 2. Special case of third person attaining a
1. When a contrary intention clearly appears certain age [Art. 606, CC]
[Art. 603, CC] ● Subsists for the period specified (until
● The parties may expressly stipulate the birthday at which the person
that the usufruct shall continue even would’ve attained that age)
after the death of the usufructuary until ○ Exception: The usufruct has
the arrival of a period or the happening been expressly granted only in
of a certain event. [Paras] consideration of the existence
2. In cases of multiple usufructs, the usufruct of such person.
ends at the death of the last survivor [Art.
611, CC]
c. By the fulfillment of any resolutory
● If constituted simultaneously: ALL
USUFRUCTUARIES must be alive or condition provided in the title
at least conceived at the time of the creating the usufruct
constitution [Art. 863, CC] [Paras]
● If constituted successively [Paras]: d. By merger of the usufruct and
○ By virtue of a donation: ALL ownership in the same person
DONEES - USUFRUCTUARIES
must be alive at the time of e. By renunciation of the
donation [Art. 756, CC]
usufructuary
○ By virtue of a will: there should
only be 2 successive
Limitations [De Leon]
usufructuaries’, and both must
1. May be made expressly or impliedly,
have been alive at the time of
but must comply with the forms of
testator’s death [Same rule as in
donation
fideicommissary substitution in
2. Does not require the consent of the
Art. 863 and 869, CC]
naked owner
3. If the period is fixed using the life of another
3. If made in fraud of creditors, they may
person as reference or there is a resolutory
rescind the waiver through an action
condition
under Art. 1381, CC (accion pauliana).
Page 171 of 532

the depending on the case

f. By the total loss of the thing in usufructuary (apply Art. 607, CC):
usufruct refuses to
contribute to If the owner does not
Total loss: when the thing in usufruct is the premium rebuild: Usufruct continues
completely destroyed, or perishes, or (Par. 2) over the remaining land and
disappears in such a way that its existence is materials (plus interests)
unknown or it cannot be recovered, or it goes
out of commerce [Art. 1189, CC] If the owner rebuilds:
Usufruct does not continue
Situation Effect on the new building, but
Art. 607, CC owner should pay interest
If destroyed property is not insured on the value of the land and
If usufruct is materials.
If the owner does not When
on the
rebuild: Usufruct continues insurance
building and
over the land and materials taken by Insurance proceeds go to
the land (Par.
(plus interests). usufructuary the usufructuary.
1)
If the owner does not only depends No obligation to rebuild.
rebuild: Usufruct continues on value of Usufruct continues on the
over the land and materials usufructuary’s land.
(plus interests). insurable Owner has no share in
interest insurance proceeds.
If the owner rebuilds: [Labitag
If usufruct is Owner can occupy the land Diagrams]
on the and use the materials.
building only g. By the termination of the right of
(Par. 2) If the owner occupies the the person constituting the
land and uses the materials, usufruct
he must pay the
usufructuary during the Example: A usufruct constituted by a vendee a
continuance of the usufruct retro terminates upon redemption.
the interest on the value of
the land and materials. h. By prescription
Art. 608, CC
If destroyed property is insured before • This refers to acquisitive prescription by a
termination of the usufruct stranger. [Paras]
If the owner rebuilds: • It is not the non-use which extinguishes the
When Usufructuary can continue usufruct by prescription, but the use by a
insurance enjoying the new building. 3rd person. [Tolentino]
premium paid • There can be no prescription as long as the
by owner and If the owner does not usufructuary receives the rents from the
usufructuary rebuild: Usufructuary shall lease of the property, or he enjoys the price
(Par. 1) receive interest on the of the sale of his right. [Tolentino]
insurance indemnity.
When the
Owner shall receive the full
insurance is
amount of the insurance
taken by the
indemnity in case of loss,
naked owner
and either of the following,
only because
Page 172 of 532

EFFECT OF TERMINATION [ART. 612, given to him, the usufruct being totally
CC] extinguished.
2. If both the naked owner and the
usufructuary were separately given
a. Obligations and Rights of the
indemnity [Paras]
Usufructuary [Paras] ● Each owns the indemnity given to him,
● Must return the property to the naked
the usufruct being totally extinguished.
owner [Art. 612, CC] 3. If usufructuary alone was given the
● Right to retain the property till he is
indemnity [Paras]
reimbursed
● He must give it to the naked owner and
○ For taxes on the capital which had been
compel the naked owner to return
advanced by him [Art. 597(2), CC]; and
either the interest or to replace the
○ Indispensable extraordinary repairs or
property.
expenses insofar as there has been an
● He may even deduct the interest
increase in the value [Art. 594(2), CC]
himself, if the naked owner fails to
● Right to remove removable improvements
object.
[Art. 579, CC] or set them off against
damages he has caused [Art. 580, CC].
b. Bad Use of Thing in Usufruct [Art.
b. Obligations of the Owner [Paras] 610, CC]
● Bad use of the thing in usufruct does
• Must cancel the security or mortgage
not extinguish the right of the
after delivery is made [Art. 612, CC]
usufructuary whether there is security
• Must in case of rural leases, respect
or not.
leases made by the usufructuary, till
● If bad use causes considerable injury
the end of the agricultural year [Art.
to the owner:
572, CC]
○ It does not extinguish the
• Must make reimbursements to the
usufruct but the owner is
usufructuary in the proper cases. [Arts.
entitled to demand delivery and
597 and 594, CC]
administration of the thing with
the obligation to pay annually
ACTS WHICH DO NOT EXTINGUISH the net proceeds.
THE USUFRUCT ● The usufructuary is liable for damages
caused to property.
a. Expropriation of Thing in Usufruct
[Art. 609, CC] c. Usufruct over a Building of Thing
in Usufruct [Art. 607 and 608, CC]
1. If the naked owner alone was given the
indemnity [See table above for the application.]
• General Rule: The naked owner has
the option
○ To replace it with an equivalent
thing; or
○ To pay to the usufructuary legal
interest on the indemnity. This
requires a security to be given by
the naked owner for the payment of
the interest.
• Exception: If both the naked owner and
the usufructuary were separately given
indemnity, each owns the indemnity
Page 173 of 532

incorporation, by destination or by
analogy. Also, it cannot be established
H. EASEMENTS on things beyond the commerce of
man, (i.e. property of public dominion).
e. It limits the servient owner’s right of

1. Characteristics ownership for the benefit of the
dominant estate.
a. It is a real right. • There exists a limitation on ownership:
• It gives rise to an action in rem or real the dominant owner is allowed to enjoy
action against any possessor of the or use part of the servient estate, and
servient estate. It is enforceable owner of the servient estate is
against the whole world. The owner of restricted in his enjoyment of his
the dominant estate can file a real property. The right given is right of
action for enforcement of right to an limited use, but no right to possess
easement. servient estate.
• It is essential that there be a benefit
Note: Being a real right, an easement is though it is not essential that it be great
constituted on corporeal immovable property of in character or actually exercised. The
another by virtue of which the owner has to benefit goes to the dominant estate,
refrain from doing, or must allow someone to not necessarily to the owner of said
do something on his property for the benefit of estate. [Paras, p. 653]
another thing or person. It exists only when the • The right given is the right of limited
servient and dominant estates belong to two use, but no right to possess servient
different owners. It gives the holder of the land estate.
but grants no title thereto. Therefore, an • Being an abnormal limitation of
acknowledgment of the easement is an ownership, it cannot be presumed.
admission that the property belongs to another.
Having held the property by virtue of an f. It creates a relation between tenements.
easement, petitioner cannot assert that its • There is no transfer of ownership but a
occupancy since 1929 was in the concept of an relationship is created, depending on
owner. [Cuaycong v. Benedicto, 37 Phil. 781] the type of easement.
• General Rule: It may consist in the
b. It is a right enjoyed over another’s
owner of the dominant estate
property (jus in re aliena).
demanding that the owner of the
• When the dominant and the servient servient estate refrain from doing
estates have the same owner, the something (servitus in non faciendo) or
easement is extinguished. Separate that the latter permit that something be
ownership is a prerequisite to an done over the servient property
easement. The acknowledgment of an (servitus in patendo), but not in the
easement is an admission that the right to demand that the owner of the
property belongs to another. servient do something (servitus in
faciendo), except if such act is an
c. It can only exist between neighboring accessory obligation to a praedial
estates in case of real easements. servitude (obligation propter rem). The
servient owner merely allows
d. It is a right constituted only over an something to be done to his estate.
immovable by nature (land and • Praedial servitudes
buildings). [Art. 613, CC]
○ Right to place beams in an
• It cannot be constituted over movable adjoining wall to support a
properties or even immovable by structure.
Page 174 of 532

○ Right to use another’s wall to property and the

support a building. duration exceeds
one year.
g. It is inherent or inseparable from estate May be constituted May be constituted
to which they actively or passively only on an on real or personal
belong. [Art. 617, CC] immovable by property unless a
• Easements are merely accessory to nature. contrary intention
the tenements, and a “quality thereof.” appears.
They cannot exist without tenements. Limited to use of Limited right to both
However, they may exist even if they real property of the use and
are not expressly stated or annotated another but without possession of the
as an encumbrance on the titles. the right to possess. property of another.
h. It is intransmissible. Easement Distinguished from Usufruct

• It cannot be alienated separately from Easement Usufruct
the tenement affected or benefited. May be constituted
Any alienation of the property covered May be constituted on
only on an
carries with it the servitudes affecting either movable or
immovable by
said property. However, this affects immovable property.
nature.
only the portion of the tenement with Not extinguished by
the easement, meaning that the Extinguished by the
the death of
portions unaffected can be alienated death of usufructuary.
dominant owner.
without the servitude. Non-possessory Involves a right of
right over an possession over an
i. It is indivisible. [Art. 618, CC] immovable. immovable.
• If the servient estate is divided between Limited to particular Includes all the uses
two or more persons, the easement is or specific use of and the fruits of the
not modified, and each of them must the servient estate. property.
bear it on the part that corresponds to
him. Note:
• If the dominant estate is divided 1. There can be no easement over a usufruct.
between two or more persons, each of Since an easement may be constituted
them may use the easement in its only on a corporeal immovable property, no
entirety, without changing the place of easement may be constituted on a usufruct
its use, or making it more burdensome which is not a corporeal right.
in any other way. 2. There can be no usufruct over an
easement. While a usufruct may be
j. It has permanence or is perpetual. created over a right, such right must have
• Once it attaches, whether used or not, an existence of its own independent of the
it continues and may be used anytime property. An easement cannot be the
• Perpetual: Exists as long as property object of a usufruct because it has no
exists, unless it is extinguished. existence independent of the property to
which it attaches.
EASEMENTS V. OTHERS 3. There can be no easement over another
easement for the same reason as in no. 1
Easement Distinguished from Lease above.
Easement Lease
Real right, whether Real right only when General Rules
registered or not. it is registered, or 1. Nulli res sua servi: No one can have a
when its subject servitude over one’s own property.
matter is real
Page 175 of 532

2. Servitus in faciendo consistere nequit: A [Art. 616, Negative: Prohibits the owner
servitude cannot consist in doing. Although CC] of the servient estate from
some easements seem to impose a doing something that he could
positive prestation upon the owner of the lawfully do if the easement did
servient estate, in reality, the primary not exist
obligation is still negative. Legal [Art. 619 and 634, CC]:
created by law, whether for
Illustration: The owner of a tree whose public use or for the interest of
branches extend over to a neighboring private persons.
property is required to cut off the extended Example: Natural drainage of
branches, but the real essence of the waters, Abutment of land,
easement is the obligation not to allow the Aqueduct, etc.
branches of the tree to extend beyond the Voluntary [Art. 619, CC]:
land. created by the will of the
owners of the estate through
Exception: Praedial servitude, where the contract, last will or donation.
positive obligation is an accessory to the These must be recorded in the
negative easement. [Art. 680, CC] As to its
Registry of Property to
3. Servitus servitutes esse non potest: There cause or
prejudice third persons.
can be no servitude over another servitude. origin
Mixed: created partly by will or
4. A servitude must be exercised civiliter, or in agreement and partly by law.
a way least burdensome to the owner of the
servient estate. Note: There is no such thing as
5. A servitude must have a perpetual cause. a JUDICIAL EASEMENT. The
Courts cannot create
2. Classification easements, they can only
declare the existence of one, if
Real or Praedial: exists for the it exists by virtue of the law or
As to benefit of a particular will of the parties. [Castro v.
recipient tenement. [Art. 613, CC] Monsod, G.R. No. 183719
of Personal: exists for the benefit (2011)]
benefits of persons without a dominant
tenement [Art. 614, CC] Relevance of Classifications
Continuous: Use is or may be 1. Determines whether or not the easement
As to its incessant, without the can be acquired by prescription of ten
exercise intervention of any act of man years or by title. [Art. 620 and 622, CC]
[Art. 615, Discontinuous: Used at 2. Determines how to compute the
CC] intervals, and dependent upon prescriptive period in case it can be
the acts of man. acquired by prescription. [Art. 621, CC]
As Apparent: Made known and 3. Determines how easement is lost by
indication continually kept in view by prescription [Art. 631(2), CC]
of its external signs that reveal the
existence use and enjoyment of the same LAW GOVERNING LEGAL EASEMENTS
[Art. 615, Non-apparent: No external
CC] indication of their existence. For public easements
Positive: Imposes upon the • Special laws and regulations relating
As to the thereto. (e.g. PD 1067 (Water Code) and
owner of the servient estate the
object or PD 705 (Forestry Code))
obligation of allowing
obligation
something to be done, or of • By the provisions of Chapter 2, Title VII,
imposed Book II, CC.
doing it himself.
Page 176 of 532

For private legal easements occupy lands of private ownership, the proper
• By agreement of the interested parties indemnity shall first be paid.
whenever the law does not prohibit it and
no injury is suffered by a 3rd person. 3. Abutment of a Dam [Art. 639, CC]
• By the provisions of Chapter 2, title VII, Whenever for the diversion or taking of water
Book II. from a river or brook, or for the use of any other
continuous or discontinuous stream, it should
KINDS OF PRIVATE LEGAL EASEMENTS be necessary to build a dam, and the person
PROVIDED BY THE NEW CIVIL CODE who is to construct it is not the owner of the
banks, or lands which must support it, he may
1. THOSE ESTABLISHED FOR THE establish the easement of abutment of a dam,
USE OF WATERS OR RELATING TO after payment of the proper indemnity.
WATERS
4. Drawing Water and Watering Animals
1. Natural Drainage [Art. 637, CC] [Arts. 640-641, CC]
Lower estates are obliged to receive the waters Compulsory easements for drawing water or
which naturally and without the intervention of for watering animals can be imposed only for
man descend from the higher estates (as well reasons of public use in favor of a town or
as the stones or earth which they carry with village, after payment of the proper indemnity.
them). [Art. 640, CC]
The owner of the lower estate cannot construct Easements for drawing water and for watering
works which will impede this easement; neither animals carry with them the obligation of the
can the owner of the higher estate make works owners of the servient estates to allow passage
which will increase the burden. to persons and animals to the place where
such easements are to be used, and the
Refer to Art. 456 of the Water Code which indemnity shall include this service. [Art. 641,
states that “when artificial means are employed CC]
to drain water from higher to lower land, the
owner of the highest land shall select the routes The width of the easement must not exceed 10
and methods of drainage that will cause the meters. [Art. 657, CC]
minimum damage to the lower lands, subject to
the requirements of just compensation.” [P.D. 5. Aqueduct [Arts. 642-646, CC]
1067, Water Code] Any person who may wish to use upon his own
estate any water of which he can dispose shall
2. Riparian Banks [Art. 638, CC] have the right to make it flow through the
The banks of rivers and streams, even in case intervening estates, with the obligation to
they are of private ownership, are subject indemnify their owners, as well as the owners
throughout their entire length and within a zone of the lower estates upon which the waters may
of 3 meters for urban areas, 20 meters for filter or descend. [Art. 642, CC]
agricultural areas and 40 meters for forest
areas (PD 1067, Water Code as amended by Requisites to establish easement of Aqueduct
PD 1067) along their margins, to the easement [Art. 643, CC]:
of public use in the general interest of • To prove that he can dispose of the
navigation, floatage, fishing, recreation and water and that it is sufficient for the use
salvage. for which it is intended;
• To show that the proposed right of way
Estates adjoining the banks of navigable or is the most convenient and the least
floatable rivers are subject to the easement of onerous to third persons;
towpath for the exclusive service of river
navigation and floatage. If it be necessary to
Page 177 of 532

• To indemnify the owner of the servient to be taken, for the purpose of improving an
estate in the manner determined by the estate.
laws and regulations.
Such person may demand that the owners of
What it cannot be imposed on: Easement of the banks permit its construction, after
aqueduct for private interest cannot be payment of damages, including those caused
imposed on buildings, courtyards, annexes, or by the new easement to such owners and to
outhouses, or on orchards or gardens already the other irrigators.
existing. [Art. 644, CC]
2. RIGHT OF WAY [Arts. 649-657, CC]
Right of servient estate owner: This easement
does not prevent the owner of the servient Who may demand [Art. 649, CC]
estate from closing or fencing it, or from 1. The owner of the dominant estate; or
building over the aqueduct in such manner as 2. Any person with the real right to
not to cause the latter any damage, or render cultivate or use the dominant estate
necessary repairs and cleanings impossible. e.g. a usufructuary, a de jure
[Art. 645, CC] possessor.
Treatment under law: This easement is Note: A lessee cannot demand such
considered as continuous and apparent, even easement, because the lessor is the one bound
though the flow of the water may not be to maintain him in the enjoyment of the
continuous, or its use depends upon the needs property.
of the dominant estate, or upon a schedule of
alternate days or hours. [Art. 646, CC] Note: A right of way can be established through
the will of parties as well, and the provisions on
In the appropriation of water, there is a need to the legal easement of right of way will not
apply for water rights. govern.
Any person having an easement for an Requisites for legal demand to establish the
aqueduct may enter upon the servient land for easement of right of way [Art. 649, CC and
the purpose of cleaning, repairing or replacing Floro v. Llenado, G.R. No. 75723, 1995]]
the aqueduct or the removal of obstructions The dominant estate is surrounded by other
therefrom [P.D. 1067, Water Code] immovables owned by other persons;
1. There must absolutely be no access
Easements for aqueduct and of right of way i.e. means of entrance or exit/egress
cannot be acquired by prescription because to a public highway;
although it may be apparent, it is discontinuous 2. Even if there is access, it is difficult or
in character. Under the Water Code of the dangerous to use, or grossly
Philippines, all waters belong to the state. insufficient;
Water legally appropriated shall be subject to • Mere inconvenience in the use of
the control of the appropriator from the moment an outlet does not render the
it reaches the appropriator from the moment it easement a necessity.
reaches the appropriator’s canal or aqueduct • An adequate outlet is one that is
leading to the place where the water will be sufficient for the purpose and
used or stored and, thereafter, so long as it is needs of the dominant owner, and
being beneficially used for the purposes for can be established at a reasonable
which it was appropriated. [Art. 8, Water Code] expense.
• Does not necessarily have to be by
6. Stop Lock or Sluice Gate [Art. 647, CC] land – an outlet through a
The construction of a stop lock or sluice gate in navigable river or a lake or the sea
the bed of the stream from which the water is
Page 178 of 532

if suitable to the needs of the dominant estate, and may accordingly be

tenement is sufficient. changed from time to time. Art. 651, CC]
3. The isolation of the immovable is not
due to the dominant owner’s own acts Who has the burden of proof in an action for
e.g. if he constructs building to others right of way? The burden of proving the
obstructing the old way; and existence of the prerequisites to validly claim a
4. There is payment of indemnity. compulsory right of way lies on the owner of the
dominant estate.
If right of way is permanent and continuous for
the needs of the dominant estate = value of the Obligations in Permanent and Temporary
land + amount of damage caused to the Easements of Right of Way
servient estate. Permanent right of Temporary right of
way way
If right of way is limited to necessary passage Indemnity
for cultivation of the estate and for gathering Consists of the
crops, without permanent way = damage Consists of the
damages and the
caused by encumbrance. damages only.
value of the land.
Necessary repairs
Rules for establishing Right of Way Dominant owner to Servient owner to
The easement of right of way shall be spend. spend.
established at the point least prejudicial to the Share in taxes
servient estate, and, insofar as consistent with The dominant owner
this rule, where the distance from the dominant shall reimburse a
estate to a public highway may be the shortest. proportionate share Servient owner to
[Art. 650, CC] of taxes to the spend on such.
proprietor of the
The criterion of least prejudice to the servient servient estate.
estate must prevail over the criterion of
shortest distance although this is a matter of Rules on Indemnity for Estates Enclosed
judicial appreciation. While shortest distance Through a Sale, Exchange, Partition or
may ordinarily imply least prejudice, it is not Donation.
always so as when there are permanent Sale, exchange or
structures obstructing the shortest distance; Donation
partition
while on the other hand, the longest distance Buyer, grantee or done as dominant
may be free of obstructions and the easiest or owners
most convenient to pass through. [Quimen v.
The buyer or grantee
CA, G.R. No. 112331 (1996)]
shall grant the right The donee shall pay
of way without the donor indemnity.
The fact that LGV had other means of egress
indemnity.
to the public highway cannot extinguish the
Seller, grantor or donor as dominant
said easement, being voluntary and not
owners
compulsory. The free ingress and egress along
The donee shall
Mangyan Road created by the voluntary The seller or grantor
grant the right of way
agreement between the parties is thus legally shall pay indemnity.
without indemnity.
demandable with the corresponding duty on
the servient estate not to obstruct the same. [La
Notes on extinguishment
Vista Association v. CA, G.R. No. 95252
• Extinguishment is not automatic. The
(1997)]
owner of the servient estate must ask for
such extinguishment.
The width of the easement of right of way shall
be that which is sufficient for the needs of the
Page 179 of 532

• Indemnity paid to the servient owner must

be returned without interest. Interest on Party Wall Co-Ownership
account of indemnity is deemed to be rent Shares of the co- Before division of
for use of easement. owners cannot be shares, a co-owner
physically cannot point to any
Special Rights of Way segregated but they definite portion of the
a. Right of way to carry materials for the can be physically property as
construction, repair, improvement, identified. belonging to him.
alteration or beautification of a building None of the co-
through the estate of another; or owners may use the
b. Right of way to raise on another’s land community property
scaffolding or other objects necessary for There is no such for his exclusive
the work: The owner of such estate shall be limitation. benefit because he
obliged to permit the act, after receiving would be invading
payment of the proper indemnity for the the rights of the
damage caused him. [Art. 656, CC] others.
c. Right of way for the passage of livestock Any owner may free
known as animal path, animal trail, watering himself from
places, resting places, animal folds: contributing to the
Governed by the ordinances and In a co-ownership,
cost of repairs and
regulations relating thereto, and, in the partial renunciation
construction of a
absence thereof, by the usages and is allowed.
party wall by
customs of the place. [Art. 657, CC] renouncing all his
rights thereto.
Limitations as to measurements:
• Animal path - max width of 75 meters. When Existence of Easement of Party Wall
• Animal trail - max width of 37 meters and is Presumed [Art. 659, CC]
50 centimeters. • In dividing walls of adjoining buildings up to
• Watering place for animals - max width of the point of common elevation;
10 meters. • In dividing walls of gardens or yards
situated in cities, or towns, or in rural
3. PARTY WALL [Arts. 658-666, CC] communities;
• In fences, walls and live hedges dividing
Definition rural lands.
A common wall which separates two estates,
built by common agreement at the dividing line Note: A title or an exterior sign, or any other
such that it occupies a portion of both estates proof showing that the entire wall in
on equal parts. controversy belongs exclusively to one of the
adjoining property owners may rebut these
A party wall is a special form of co-ownership presumptions.
(see Art. 658, CC).
• Each owner owns part of the wall but it Question: In an easement of party wall, what
cannot be separated from the other estate is dominant and what is servient? The
portions belonging to the others. A party party wall itself is servient, while the adjoining
wall has a special characteristic that makes estates belonging to the co-owners of the party
it more of an easement as it is called by wall are dominant. Refer to Arts. 613 and 614
law. of the Civil Code.
• An owner may use a party wall to the extent
of the ½ portion on his property.
Page 180 of 532

When Existence of An Exterior Sign Is 3. To acquire a half-interest in any increase in

Presumed [Art. 660, CC] height or thickness of the wall, paying a
1. Whenever in the dividing wall of buildings proportionate share in the cost of the work
there is a window or opening; and the value of the land covered [Art. 665,
2. Whenever the dividing wall is, on one side, CC].
straight and plumb on all its facement, and 4. To renounce his part ownership of a party
on the other, it has similar conditions on the wall if he desires to demolish his building
upper part, but the lower part slants or supported by the wall. [Art. 663, CC] He
projects outward; shall bear all the expenses of repairs and
3. Whenever the entire wall is built within the work necessary to prevent any damage
boundaries of one of the estates; which the demolition may cause to the
4. Whenever the dividing wall bears the party wall.
burden of the binding beams, floors and
roof frame of one of the buildings, but not Obligations of Owners of a Party Wall
those of the others; 1. To contribute proportionately to the repair
5. Whenever the dividing wall between and maintenance of the party wall [Art. 662,
courtyards, gardens, and tenements is CC].
constructed in such a way that the coping
sheds the water upon only one of the Exception: He renounces his part-
estates; ownership, and this includes the
6. Whenever the dividing wall, being built of renunciation of the share in the wall and the
masonry, has stepping stones, which at land.
certain intervals project from the surface on
one side only, but not on the other; Exception to exception: He cannot
7. Whenever lands enclosed by fences or live renounce his part if his building is being
hedges adjoin others that are not enclosed. supported by the party wall.
Note: The deposit of earth or debris on one side 2. If he raises the height of the wall, he must:
alone is an exterior sign that the owner of that • Bear the cost of maintenance of the
side is the owner of the ditch or drain. The additions;
presumption is an addition to those • Bear the cost of construction, if the wall
enumerated in Art. 660, CC. [Art. 661, CC] cannot support the additional height;
• Give additional land, if necessary to
Rights of Owners of a Party Wall thicken the wall;
1. Generally, part-owners may use the wall in • Pay for damages, if necessary, even if
proportion to their respective interests [Art. temporary; and
666, CC], provided that: • Bear the increased expenses for
• The right to use by the other party is not preservation. [Art. 664, CC]
interfered with;
• The consent by the other owner is 4. EASEMENT OF LIGHT AND VIEW
needed if a party wants to open a [ARTS. 667-673, CC]
window; and
• The condition of the building is Easement of light (jus luminum)
determined by experts. The right to admit light from the neighboring
2. To increase the height of the wall [Art. 664, estate by virtue of the opening of a window or
CC]. the making of certain openings.
• He does this at his expense, including
the thickening of the wall on his land. Easement of view (jus prospectus)
• He shall indemnify the other party for The right to make openings or windows, to
any damages. enjoy the view through the estate of another
and the power to prevent all constructions or
Page 181 of 532

works which would obstruct such view or make • An easement is created only when the
the same difficult. owner opens up a window and
subsequently prohibits or restrains the
The easement of view necessarily includes the adjacent owner from doing anything that
easement of light, because It is impossible to may tend to cut off or interrupt the light and
have a view only without a light. However, it is the 10-year prescriptive period has lapsed
possible to have light without a view. by a notarial prohibition.
How acquired Note: What is the reason why the easement of

Through a period of prescription of 10 years, light and view and the easement not to build a
counted depending on whether it was positive higher easement (altius non tollendi) cannot go
or negative in nature. together? The reason is because an easement
of light and view requires that the owner of the
Nature [Art. 668, CC] servient estate shall not build to a height that
1. Positive: Opening a window through a will obstruct the window. They are, as it were,
party wall. the two sides of the same coin. While an
• Period of prescription begins upon the easement of light and view is positive, that of
opening being made through the wall of altius non tollendi is negative. [Amor v.
another. Florentino, 74 Phil. 403 (1943)]
o When a part owner of a party wall
opens a window therein, such act Limitations as to measurements
implies the exercise of the right of No windows, apertures, balconies, or other
ownership by the use of the entire similar projections which afford a direct view
thickness of the wall. upon or towards an adjoining land or tenement
• The easement is created only after the can be made, without leaving a distance of two
lapse of the prescriptive period. meters between the wall in which they are
made and such contiguous property. Neither
2. Negative: Opening a window through a wall can side or oblique views upon or towards such
on the dominant estate. conterminous property be had, unless there be
• Period of prescription begins upon the a distance of sixty centimeters. [Art. 670, CC]
formal prohibition upon the owner of the In cases of direct views from the outer line of
adjoining land or tenement. the wall when the openings do not project, the
o Formal means that the prohibition distance shall be measured from the outer line
has been notarized. Meaning of the latter when they do, and in cases of
notice and demand was given to oblique view from the dividing line between the
the owner of the possible servient two properties. [Art. 671, CC]
estate [Cortes v Yu-Tibo, G.R. No.
911 (1903)] Exception: In buildings separated by a public
o When a person opens a window on way or alley, not less than 3 meters wide, the
his own building, he is exercising distances required do not apply [Art. 672, CC].
his right of ownership on his
property, which does not establish Exception: The distances may be stipulated
an easement. by the parties, provided that the distance
• Coexistent is the right of the owner of the should not be less than what is prescribed by
adjacent property to build or plant on his the law (2 meters and 60 centimeters). [Art.
own land, even if such structures or 673, CC]
planting cover the window.
• If the adjacent owner does not build Whenever by any title a right has been
structures to obstruct the window, such is acquired to have direct views, balconies or
considered mere tolerance and NOT a belvederes overlooking an adjoining property,
waiver of the right to build. the owner of the servient estate cannot build
Page 182 of 532

thereon at less than a distance of three meters establishing a conduit for the drainage in such
to be measured in the manner provided in manner as to cause the least damage to the
Article 671. [Art. 673, CC] servient estate, after payment of the property
indemnity. [Art. 676, CC]
Note: Breach of the required distances results
into the prescriptive period not running. [Art. Note: When is there a violation of easement of
670, CC] drainage? Refer to Purugganan v. Paredes, 69
SCRA 69: When the roof of the appellants
Notes on the Acquisition of the Easement protrudes by 98 centimeters over the property
• Period of acquisitive prescription depends of the appellee, so that during a heavy rainfall,
upon whether the easement of light and the propulsion of the water would go as far as
view is positive or negative. one meter over the property of the latter. Also
o If positive, then the prescription check on Sec. 8.01.05 (d) (1) of the National
period is counted from the day the Building Code.
window is opened.
o If negative, then the prescription 6. INTERMEDIATE DISTANCES [Arts.
period is counted from the formal 677-681, CC]
prohibition made on the owner of
the servient estate. [Art. 668, CC] Prohibiting the construction and plantings near
fortified places or fortresses without complying
5. DRAINAGE OF BUILDINGS [Art. 674, with special laws, ordinances and regulations
CC] relative hereto, Art. 677 of the Civil Code, in
effect, establishes an easement in favor of the
The owner of a building shall be obliged to State. The general prohibition is dictated by the
construct its roof or covering in such manner demands of national security.
that the rain water shall fall on his own land or
on a street or public place, and not on the land No person shall build any aqueduct, well,
of his neighbor, even though the adjacent land sewer, furnace, forge, chimney, stable,
may belong to two or more persons, one of depository of corrosive substances, machinery,
whom is the owner of the roof. or factory which by reason of its nature or
products is dangerous or noxious, without
Even if it should fall on his own land, the owner observing the distances prescribed by the
shall be obliged to collect the water in such a regulations and customs of the place, and
way as not to cause damage to the adjacent without making the necessary protective
land or tenement. [Art. 674, CC] works.
The true easement is where the adjacent These prohibitions cannot be altered or
estate has the obligation of receiving the renounced by stipulation on the part of the
rainwater falling from a neighboring roof and adjoining proprietors.
giving it an outlet on his own lot so as not to
cause damage to the dominant estate. [Art. In the absence of regulations, such precautions
675, CC] shall be taken as may be considered
necessary, in order to avoid any damage to the
Whenever the yard or court of a house is neighboring lands or tenements. [Art. 678, CC]
surrounded by other houses, and it is not
possible to give an outlet through the house Note: For definition of dangerous buildings,
itself to the rain water collected thereon, the please refer to Sec. 1.01.08 (b), R.A. 6541, The
establishment of an easement of drainage can National Building Code. Cases applicable are
be demanded, giving an outlet to the water at De la Torre v. Bicol University, 468 SCRA 542
the point of the contiguous lands or tenements and Tague v. Fernandez, 51 SCRA 181.
where its egress may be easiest, and
Page 183 of 532

Planting of trees [Art. 679, CC] • Subjacent: When the supported land is
No trees shall be planted near a tenement or above the supporting land.
piece of land belonging to another except at the
distance authorized by the ordinances or Any proprietor intending to make any
customs of the place. In the absence thereof: excavation contemplated in Arts. 684-686, CC
• At least 2 meters from the dividing line of shall notify all owners of adjacent lands. [Art.
the estates if tall trees are planted. 687, CC]
• At least 50 centimeters if shrubs or small
trees are planted. Note: Refer to Castro v. Monsod, 641 SCRA
486 (2011) on the need to annotate an
In case of a violation, a landowner shall have easement of lateral support at the back of the
the right to demand the uprooting of the plant land title of the servient estate where there is
even if it has grown spontaneously. judicial recognition existing.
Branches, Roots and Fruits [Art. 680, CC] 8. EASEMENT AGAINST NUISANCE
If the branches of any tree should extend over [Arts. 682-683, CC]
a neighboring estate, tenement, garden or
yard, the owner of the latter shall have the right Every building or piece of land is subject to the
to demand that they be cut off. If it be the roots easement which prohibits the proprietor or
of a neighboring tree, which should penetrate possessor from committing nuisance through
into the land of another, the latter may cut them noise, jarring, offensive odor, smoke, heat,
off himself within his property. dust, water, glare and other causes. [Art. 682,
CC].
Fruits naturally falling upon adjacent land
belong to the owner of said land. [Art. 681, CC] Subject to zoning, health, police and other laws
and regulations, factories and shops may be
7. LATERAL AND SUBJACENT maintained provided the least possible
SUPPORT [Arts. 684-687, CC] annoyance is caused to the neighborhood. [Art.
683, CC]
The proprietor is prohibited from making
dangerous excavations upon his land as to 3. Modes of Acquiring
deprive any adjacent land or building of
sufficient lateral or subjacent support. [Art. 684,
Easements
CC]
An easement is either acquired through a
Any stipulation or testamentary provision title/juridical act or by prescription. [Art. 620
allowing excavations that cause danger to an and 622, CC]
adjacent land or building shall be void. [Art.
685, CC] Kind of How acquired
Easement Title Prescription
The legal easement of lateral and subjacent Continuous and
YES YES
support is not only for buildings standing at the apparent (CA)
time the excavations are made but also for Continuous Non-
YES NO
constructions that may be erected. [Art. 686, apparent (CNA)
CC] Discontinuous
• Easement of lateral and subjacent support and non-apparent YES NO
is deemed essential to the stability of (DA)
buildings. Discontinuous
• Lateral: When a vertical plane divides the Non-apparent YES NO
supported and supporting lands. (DNA)
Page 184 of 532

When an easement is established, all rights negative easement of light and view (altius non
necessary for its use are considered granted. tollendi) i.e. not to build a structure that will
[Art. 625, CC] cover the windows. [Amor v. Florentino, G.R.
No. L-48384 (1943)].
a. By Title (or by Something Equivalent
to a Title) b. By Law (Legal Easements)
Something Equivalent to a Title: Refers to law Easements imposed by law have for their
or juridical acts such as donations, contracts, object either public use or the interest of private
or wills. persons. [Art. 634, CC]
• Continuous and apparent easements may
be acquired by virtue of a title. [Art. 620, These easements may be modified by
CC] agreement of the interested parties, whenever
• Continuous non-apparent easements, and the law does not prohibit it, or no injury is
discontinuous ones, whether apparent or suffered by a third person. [Art. 636, CC]
not, are acquired only by virtue of a title.
[Art. 622, CC] c. By Will of the Owner (Voluntary
• The absence of a document or proof Easements)
showing the origin of an easement which
cannot be acquired by prescription may be Every owner of a tenement or piece of land
cured by a deed of recognition by the may establish thereon the easements which he
owner of the servient estate or by a final may deem suitable, and in the manner and
judgment. [Art. 623, CC] form which he may deem best, provided he
does not contravene the laws, public policy or
Deed of recognition: By an affidavit or a formal public order. [Art. 688, CC]
deed acknowledging the servitude.
Note: If an owner constitutes an easement over
Final judgment: Owner of the dominant estate his own property and makes such easement
must file a case in court to have the easement available to the general public, said owner may
declared by proving its existence through other not arbitrarily discriminate against certain
evidence. persons by not letting them use the easement.
[Negros Sugar Company v Hidalgo, G.R. No.
The existence of an apparent sign of easement L-42334 (1936)]
between two estates, established or
maintained by the owner of both, shall be When the property subject of the easement is
considered, should either of them be alienated, also in usufruct, the owner of the property may
as a title in order that the easement may establish an easement on the property, without
continue actively and passively. This is also consent of the usufructuary; provided, the right
applicable to cases of co-ownership. [Art. 624, of the usufructuary is not injured. [Art. 689, CC]
CC]
Whenever the naked ownership belongs to one
Exception: At the time the ownership of the person and the beneficial ownership to
two estates is divided, the title of conveyance another, no perpetual voluntary easement may
of either of the two estates provides for the be established thereon without the consent of
contrary (says the easement will not continue) both owners. [Art. 690, CC]
or the apparent sign of easement is removed
before the execution of the deed of When the property is co-owned, consent of all
conveyance. [Art. 624, CC] co-owners is required to impose an easement.
[Art. 691, CC]
Illustration: The presence of 4 windows was
considered an apparent sign that created a
Page 185 of 532

d. By Prescription
Example: Easement of drawing water
Continuous and apparent easements may be carries with it the easement of right of way
acquired by prescription of 10 years. [Art. 620, to the place where water is drawn.
CC]
Limitation: Only for the original immovable
Requisites: and the original purpose.
1. The easement must be continuous and
apparent; 3. To make, at his own expense, on the
2. The easement must have been used for 10 servient estate, any works necessary for
years; and the use and preservation of the servitude,
3. There is no need for good faith or just title. but without altering it or rendering it more
burdensome. [Art. 627(1), CC]
Computation of time of possession [Art. 4. In a right of way, to ask for change in width
621, CC] of easement sufficient for the needs of the
1. Positive easements: From the day on dominant estate. [Art. 651, CC]
which the owner of the dominant estate, or
the person who may have made use of the The needs of the dominant property
easement, commenced to exercise it upon ultimately determine the width of the
the servient estate passage. And these needs may vary from
2. Negative easements: From the day on time to time. [Encarnacion v. CA, G.R. No.
which the owner of the dominant estate 77628 (1991)]
forbade, by an instrument acknowledged
before a notary public, the owner of the 5. To renounce totally the easement, if he
servient estate, from executing an act desires to be exempt from contributing to
which would be lawful without the the expenses. [Art. 628, CC]
easement.
b. Obligations of Dominant Estate
Note: Example of a continuous and apparent Owner
easement is of light and view, as opposed to a
right of way which is discontinuous but 1. To use the easement for the benefit of
apparent, and thus cannot be acquired by immovable and in the manner originally
prescription. established [Art. 626, CC]
Mere passage which was permitted and is If established for a particular purpose, the
under an implied license cannot be the basis of easement cannot be used for a different
prescription. [Archbishop of Manila v. Roxas, one. However, if established in a general
G.R. No. L-7386 (1912)] way, without specific purpose, the
easement can be used for all the needs of
4. Rights and Obligations of the the dominant estate.
Owners of Dominant and 2. To notify the owner of the servient estate
Servient Estates before making repairs and to make repairs
in a manner least inconvenient to the
a. Rights of Dominant Estate Owner servient estate [Art. 627(2), CC]
3. Not to alter the easement or render it more
1. To use the easement and exercise all burdensome. [Art. 627, CC]
rights necessary for it [Art. 625, CC].
2. The owner of the dominant estate is In an easement of a right of way, widening
granted the right to use the principal the road means making the easement
easement, and all accessory servitudes. more burdensome. [Valderrama v. North
Page 186 of 532

Negros Sugar Co., G.R. No. L-23810 Exception: Unless there is an agreement to
(1925)] the contrary.
4. To contribute to expenses of works 3. To pay for the expenses incurred for the
necessary for use and preservation of change of location or form of the easement
servitude, if there are several dominant
estates. [Art. 628, CC] 5. Modes of Extinguishment
The contribution is in proportion to the Ways by which an easement may be
benefits which each may derive from the extinguished: [Art. 631, CC] [MINERRO –
work. Merger, Impossibility, Non-use, Expiration,
Renunciation, Redemption, Other causes]
c. Rights of the Servient Estate Owner
1. By merger in the same person of the
1. To retain the ownership of the portion of the ownership of the dominant and servient
estate on which the easement is estates – must be absolute, perfect and
established [Art. 630, CC] definite, and not merely temporary. If the
2. To use the easement, provided he shall merger is temporary, there is at most a
also be obliged to pay the expenses suspension of the easement, but no
necessary for the preservation and use of extinguishment.
the servitude. [par. 2, Art. 628, CC] 2. By non-user for ten years – there is
inaction, and not outright renunciation. This
Exception to paying expenses: There is an is due to the voluntary abstention by the
agreement to the contrary. dominant owner, and not due to a fortuitous
event.
3. To change the place or manner of the use • If discontinuous easement, period is
of the easement, provided it be equally counted from day it ceased to be used.
convenient [par. 2, Art. 629, CC] If continuous easement, counted from
the day an act adverse to the exercise
In case the easement becomes very of the right of easement took place.
inconvenient for the servient estate owner, • Note use by a co-owner bars
or if it prevents him from making any prescription as to others as well. [Art.
important works, repairs, or improvements, 633, CC]
the easement MAY BE CHANGED, 3. Impossibility of use – impossibility
provided: referred to must render the entire
1. He offers another place/manner easement unusable for all time.
equally convenient. Impossibility of using the easement due to
2. Does not cause injury to the dominant the condition of the tenements (e.g.
estate owner. flooding) only suspends the servitude until
3. Does not cause injury to those who it can be used again.
have a right to use the easement, if
• Exception: If the suspension exceeds
any.
10 years, the easement is deemed
extinguished by non-use.
d. Obligations of Servient Estate 4. By the expiration of the term or the
Owner fulfillment of the resolutory condition -
applies only to voluntary easements.
1. Not to impair the use of the easement [Art. 5. By the renunciation of the owner of the
629(1), CC] dominant estate – must be specific, clear,
2. To contribute proportionately to expenses
express (distinguished from non-user); or
if he uses the easement [Art. 628(2), CC]
Page 187 of 532

6. By the redemption agreed upon

between the owners of the dominant
and servient estates.
I. NUISANCE
Other Causes Not Mentioned in Art. 631, CC
1. Annulment and rescission of the title 1. Nuisance per se
constituting the voluntary easement;
2. Termination of the right of grantor of the
2. Nuisance per accidens
voluntary easement;
3. Abandonment of the servient estate;
“Nuisances have been divided into two
Owner of the servient estate gives up
classes: Nuisances per se, and nuisances per
ownership of the easement (e.g. the strip of
accidens” [Iloilo Cold Storage v. Municipal
land where the right of way is constituted)
Council, 24 Phil 471]
in favor of the dominant estate. The
easement is extinguished because
Definition
ownership is transferred to the dominant
A nuisance is any act, omission, establishment,
owner, who now owns both properties.
condition of property, or anything else which:
4. Eminent domain;
(1) Injures or endangers the health or
The government’s power to expropriate
safety of others; or others (Ex. House
property for public use, subject to the
in danger of falling, fireworks or
payment of just compensation.
explosives factory, houses without
5. Special cause for extinction of legal
building permits and without provisions
rights of way: if right of way no longer
for disposal of waste matter [Ayala v.
necessary. [Art. 655, CC]
Baretto, 33 Phil. 538]); or
(2) Annoys or offends the senses; (Ex.
Right of way ceases to be necessary [Art. 655,
leather factory, garbage cans, pumping
CC]:
station with a high chimney, smoke,
• Owner of the dominant estate has joined to
noise [Bengzon v. Prov. of
another abutting on a public road.
Pangasinan, 62 Phil. 816]; or
• A new road is opened giving access to the
(3) Shocks, defies, or disregards decency
isolated estate. or morality; (Ex. Movie actress strips
• Owner of the servient estate must return nude in the lobby of a movie house for
indemnity he received (value of the land) sake of publicity for a movie, citing
with interest deemed as rent. Paras, p. 748); or
• Requisite: the public highway must (4) Obstructs or interferes with the free
substantially meet the needs of the passage of any public highway or
dominant estate. street, or any body of water; (Ex.
Houses or flea market stalls
Note: The Owner of the servient estate constructed in public streets); or
burdened by the right of way may demand that (5) Hinders or impairs the use of property
the easement be extinguished when it is shown [Art. 694, CC] (Ex. Illegal constructions
that the easement ceases to be necessary [Art. or activities on another person or
655, CC] entity’s land).
Differentiate Nuisance from Negligence:

Negligence is penalized because of lack of
proper care but a nuisance is wrong not
because of the presence or absence of care,
but because of the injury caused. [Paras
quoting 39 AmJur 282]
Page 188 of 532

Nuisance Nuisance per se Nuisance per accidens

Definition ● Those which are ● Those that are nuisances because of
unquestionably and under all particular facts and circumstances
circumstances nuisances, surrounding the otherwise harmless cause
such as gambling houses, of the nuisance [Iloilo Cold Storage v.
houses of ill fame, etc. [Iloilo Municipal Council, 24 Phil 471]
Cold Storage v. Municipal ● Generally a question of fact, to be
Council, 24 Phil 471] determined in the first instance before the
● Generally defined as an act, term nuisance can be applied to it. [Ibid.]
occupation, or structure, ● That which depends upon certain conditions
which is a nuisance at all and circumstances, and its existence being
times and under any a question of fact, it cannot be abated
circumstances, regardless of without due hearing thereon in a tribunal
location or surrounding. authorized to decide whether such a thing
[Aquino v. Municipality of does in law constitute a nuisance. [Aquino v.
Malay, GR 211356, 29 Municipality of Malay, GR 211356, 29
September 2014] September 2014]
Abatement Since they affect the immediate No authority has the right to compel the
safety of persons and property, abatement of a particular thing or act as a
they may be summarily abated nuisance without reasonable notice to the
under the undefined law of person alleged to be maintaining or doing the
necessity. [Monteverde v. same of the time and place of hearing before a
Generoso, 52 Phil 123] tribunal authorized to decide whether such a
thing or act does in law constitute a nuisance.
[Monteverde v. Generoso, 52 Phil 123]
a. Public v. Private Nuisance exercise ordinary care to prevent children from

playing therewith or resorting thereto, is liable
Public Nuisance to a child of tender years who is injured
Nuisance that affects a community or thereby, even if the child is technically a
neighborhood or any considerable number of trespasser in the premises. [Jarco Marketing
persons [Art. 695, CC]. (Ex. A noisy or Corp. v. CA, G.R. No. 129792 (1999)]
dangerous factory in a residential district; a
karaoke bar inside a subdivision) Reason for doctrine: Although the danger is
apparent to those of age, it is so enticing or
Private Nuisance alluring to children of tender years as to induce
One that is not included in the foregoing (Public them to approach [Ibid].
nuisance) definition. [Art. 695, CC]
Note: The attractive nuisance doctrine is
One which violates only private rights and generally not applicable to bodies of water in
produces damages to but one or a few specific the absence of some unusual condition or
persons. artificial feature. A swimming pool is not an
attractive nuisance, for while it is attractive, it is
b. Doctrine of Attractive Nuisance merely a duplication of a work of nature
[Hidalgo Enterprises v. Balandan, G.R. L-3422,
One who maintains on his premises dangerous (1952)]
instrumentalities or appliances of a character
likely to attract children at play, and who fails to
Page 189 of 532

3. Liabilities Note: Art. 698 and 1143(2) does not apply to

easements which are extinguished by
a. Who are Liable obstruction or non-use for ten years under Art.
1. Person responsible for creating the 631 [Ongsiako v. Ongsiako, G.R. No. L-7510,
nuisance; If the prejudice exceeds the (1957)]
inconveniences that such proximity
habitually brings, the neighbor who The abatement of a nuisance does not
causes such disturbance is held preclude the right of any person injured to
responsible for the resulting damage, 1 recover damages for its past existence. [Art.
being guilty of causing nuisance. 697, CC]
[Velasco v. Manila Electric Co., 40
SCRA 342] Note: Remedies of abatement and damages
2. Every successive owner or are cumulative and may both be demanded.
possessor of property who fails or
refuses to abate a nuisance in that b. Extinctive Prescription – No Extinctive
property started by a former owner or Prescription to abate a nuisance or
possessor is liable therefor in the same Acquisitive Prescription for the right to use
manner as the one who created it. [Art. of the property that creates such nuisance.
696, CC]; The action to abate a public or private
• Provided that he knew of the nuisance is NOT extinguished by
nuisance and must knowingly prescription. [Art. 1143(2), CC]
fail or refuse to abate the
nuisance [Lambs v. Roberts, 5. Criminal prosecution as a
196 Ala. 679, quoted by Paras]. remedy
• “To render the new owner or
possessor liable, it is The remedies against a public nuisance are:
necessary that he has actual 1. A prosecution under the Penal Code or
knowledge of the existence of any local ordinance; or
the nuisance, and that it is 2. A Civil Action; or
within his power to abate the 3. Abatement, without judicial proceedings.
same.” [Art. 699, CC]
• “If he cannot physically abate
the nuisance without legal
action against another person,
6. Judgment with abatement as
then he shall not be liable for a remedy
such nuisance.”
3. A private person or public official The remedies against a public nuisance are:
shall be liable for damages if: 1. A prosecution under the Penal Code or any
a. In an extrajudicial abatement; local ordinance; or
b. He causes unnecessary injury; or 2. A Civil Action; or
c. An alleged nuisance is later declared 3. Abatement, without judicial proceedings.
by the courts to be not a real nuisance. [Art. 699, CC]
[Art. 707, CC]
If a civil action is brought by reason of the
4. No Prescription maintenance of a public nuisance, such action
shall be commenced by the city or municipal
mayor. [Art. 701, CC]
a. General Rule
Lapse of time cannot legalize any nuisance,
whether public or private. [Art. 698, CC]
Page 190 of 532

7. Extrajudicial abatement as a act does in law constitute a nuisance. [Iloilo

Cold Storage v. Municipal Council, 24 Phil 471]
remedy
b. Need for Abatement
The remedies against a public nuisance are:
1. A prosecution under the Penal Code or any One of the most serious hindrances to the
local ordinance; or enjoyment of life and property is a nuisance.
2. A Civil Action; or Provisions for its abatement are indispensable
3. Abatement, without judicial (Report of the Code Commission, p.51).
proceedings. [Art. 699, CC]
! It must be reasonably and efficiently c. Who May Abate Public Nuisances
exercised.
! Means employed must not be unduly District Officer
oppressive on individuals. The district health officer shall take care that
! No more injury must be done to the one or all of the remedies against a public
property or rights of individuals than is nuisance are availed of. [Art. 700, CC]
necessary to accomplish the
abatement. The district health officer shall determine
! No right to compensation if property whether or not abatement, without judicial
taken or destroyed is a nuisance. proceedings, is the best remedy against a
public nuisance. [Art. 702, CC]
a. Summary Abatement
Note: If the district health officer or the city
Nuisances per se engineer is not consulted beforehand in the
Since they affect the immediate safety of case of extrajudicial abatement, the person
persons and property, they may be summarily doing the abating is not necessarily liable.
abated under the undefined law of They would be liable for damages under Art.
necessity. [Monteverde v. Generoso, 52 Phil 707 if the abatement is carried out with
123] unnecessary injury, or if the alleged nuisance
is later declared by the courts to be not a real
Nuisances per accidens nuisance [Paras, p. 756]
No authority has the right to compel the
abatement of a particular thing or act as a Private Persons
nuisance without reasonable notice to the Any private person may abate a public
person alleged to be maintaining or doing the nuisance which is specially injurious to him by
same of the time and place of hearing before a removing or, if necessary, destroying the thing
tribunal authorized to decide whether such a which constitutes the same, without committing
thing or act does in law constitute a nuisance. a breach of the peace, or doing necessary
[Monteverde v. Generoso, 52 Phil 123] injury.
If no compelling necessity requires the Other persons authorized by law
summary abatement of a nuisance, the Other persons may be authorized by law to
municipal authorities, under their power to remove nuisances such as in Sitchon v.
declare and abate nuisances, do not have the Aquino, 98 Phil 458 where the Manila charter
right to compel the abatement of a particular authorized the City Engineer to do so.
thing or act as a nuisance without reasonable
notice to the person alleged to be
maintaining or doing the same of the time 8. Special Injury to Individual
and place of hearing before a tribunal
authorized to decide whether such a thing or A private person may file an action on account
of public nuisance, if it is specially injurious to
himself. [Art. 703, CC]
Page 191 of 532

which case the nuisance is treated as a private

Any private person may abate a public nuisance with respect to such person.
nuisance which is specially injurious to him by
removing or, if necessary, destroying the thing Requisites of the right of a private
which constitutes the same, without committing individual to bring a civil action to abate a
a breach of the peace, or doing necessary public nuisance [Art. 704, CC]
injury. But if necessary: 1. That demand be first made upon the owner
1. That demand be first made upon the owner or possessor of the property to abate the
or possessor of the property to abate the nuisance;
nuisance; 2. That such demand has been rejected;
2. That demand has been rejected; 3. That the abatement be approved by the
3. That the abatement be approved by the district health officer and executed with the
district health officer and executed with the assistance of the local police; and
assistance of the local police; and 4. That the value of the destruction does not
4. That the value of the destruction does not exceed P3,000.
exceed Three-Thousand Pesos. [Art. 704,
CC] Rules
1. The right must be exercised only in cases
9. Right of Individual to Abate of urgent or extreme necessity. The thing
alleged to be a nuisance must be existing
Public Nuisance at the time that it was alleged to be a
nuisance.
Process for Extrajudicial Abatement: 2. A summary abatement must be resorted to
1. The district health officer shall take care within a reasonable time after knowledge of
that one or all of the remedies against a the nuisance is acquired or should have
public nuisance are availed of. [Art. 700, been acquired by the person entitled to
CC] abate.
2. The district health officer shall determine 3. The person who has the right to abate must
whether or not abatement, without judicial give reasonable notice of his intention to do
proceedings, is the best remedy against a so, and allow thereafter a reasonable time
public nuisance. [Art. 702, CC] to enable the other to abate the nuisance
himself.
Process for Judicial Abatement (through 4. The means employed must be reasonable
Civil Action): and for any unnecessary damage or force,
1. General Rule: If a civil action is brought by the actor will be liable. The right to abate is
reason of the maintenance of a public not greater than the necessity of the case
nuisance, such action shall be commenced and is limited to the removal of only so
by the city or municipal mayor. [Art. 701, much of the objectionable thing as actually
CC] causes the nuisance.
2. Exception: A private person may file an 5. The property must not be destroyed unless
action on account of a public nuisance if it it is absolutely necessary to do so.
is especially injurious to him. [Art. 703, CC]
Rationale for Exception: An individual who 10. Right to Damages

has suffered some special damage different
from that sustained by the general public may The abatement of a nuisance does not
maintain a suit in equity for an injunction to preclude the right of any person injured to
abate it, or an action for damages which he has recover damages for its past existence. [Art.
sustained. The action becomes a tort if an 697, CC]
individual has suffered particular harm, in
Abatement and damages are cumulative
remedies.
Page 192 of 532

11. Defenses to Action J. MODES OF ACQUIRING

Remedies of the property owner OWNERSHIP
A person whose property is seized or
destroyed as a nuisance may resort to the Three modes of acquiring ownership:
courts to determine whether or not it was in fact a. Occupation – Arts. 713-720, CC
a nuisance. b. Donation – Arts. 712, 725 – 726, CC
1. An action for replevin; c. Prescription and Laches – Arts. 712,
2. To enjoin the sale or destruction of the 1106 – 1107, CC
property;
3. An action for the proceeds of its sale and 1. Occupation
damages if it has been sold; or
4. To enjoin private parties from proceeding How Occupation Effected
to abate a supposed nuisance. 1. Hunting and Fishing
2. Finding Hidden Treasures
12. Who May Sue on Private 3. Finding of abandoned movables
Nuisance 4. Finding movables which never had an
owner [Art. 713, CC]
Remedies [Art. 705, CC]
The remedies against a private nuisance are: Kinds of Occupation
1. A civil action; or 1. Of Animals
2. Extrajudicial abatement a. Wild or Feral Animals
Wild animals are possessed only while
Requisites for a valid extrajudicial they are under one’s control [Art. 560,
abatement [Art. 706, CC]: CC]
• The procedure for extrajudicial abatement b. Tamed/domesticated animals
of a public nuisance by a private person will Domesticated or tamed animals are
considered domestic or tame if they
also be followed.
retain the habit of returning to the
premises of the possessor. [Art. 560,
Note: See municipal health officer under
Art. 700 and Art. 702. CC]
• No breach of peace or unnecessary injury
The owner of domesticated animals
may also claim them within 20 days to
Liability for invalid extrajudicial abatement:
be counted from their occupation by
The person (whether private person or public
another person. This period having
official) extrajudicially abating a nuisance is
expired, they shall pertain to him who
liable for damages if:
has caught and kept them. [Art. 716,
a. If he causes unnecessary injury; or
CC]
b. If an alleged nuisance is later declared by
c. Occupation of a Swarm of Bees
the courts to be not a real nuisance.
The owner of a swarm of bees shall
have the right to pursue them to
Methods of abatement [Art. 706, CC]:
another’s land, indemnifying the
1. By removing the thing causing the
possessor of the latter for damage.
nuisance
2. By destroying the thing causing the
If the owner has not pursued the
nuisance
swarm, or ceases to do so within 2
consecutive days, the possessor of the
land may occupy or retain the same,
Page 193 of 532

the owner having lost his ownership by finder. The finder and the owner shall
leaving, abandoned them (no intention be obliged, as the case may be, to
to recover). [Art. 716, CC] reimburse the expenses. [Art. 719, CC]
d. Pigeons and Fish
Pigeons and fish which from their 3. Of Land
respective breeding places pass to • Land cannot be the object of
another pertaining to a different owner occupation. [Art. 714, CC]
shall belong to the latter, provided they • Land of public dominion belongs to the
have not been enticed by some artifice State.
or fraud. • Abandoned private lands are deemed
as patrimonial property of the State
2. Of Other Personal Property
a. Abandoned – may be acquired 4. Hidden Treasure
b. Lost Definition: Any hidden and unknown deposit
Whoever finds a movable, which is not of money, jewelry, or other precious objects,
treasured, must return it to its previous the lawful ownership of which does not appear.
possessor. If the latter is unknown, the [Art. 439, CC]
finder shall immediately deposit it with
the mayor of the city or municipality General Rule: Belongs to the owner of the
where the finding has taken place. land, building, or other property on which it is
found. [Art. 438, CC]
The finding shall be publicily
announced by the mayor for two Exceptions
consecutive weeks in the way he 1. If discovery made on property of
deems best. another, the State, or any of its
subdivisions AND by chance: one-half
If the movable cannot be kept without shall be allowed to the finder
deterioration, or without expenses 2. If finder is a trespasser: he shall not be
which considerably diminish its value, it entitled to any share of the treasure
shall be sold at public auction eight 3. If the things found be of interest to
days after publication. science or the arts: State may acquire
them at their just price, which shall be
Six months from the publication divided in conformity with rule stated [Art.
having elapsed without the owner 438 (3), CC]
having appeared, the thing found, or
its value, shall be awarded to the
Page 194 of 532

2. Donation
Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of
another, who accepts it. (simple donation) [Art. 725, CC]
Although under Art. 725, CC, donation is an act, it is really a contract. The essential requisites of
consent, subject matter, and cause must be present. [Tolentino]
Nature Generally, donation includes all forms of gratuitous dispositions.
The patrimony or asset of the donor is decreased, while that of the donee is
Effect
increased.
[CADAF – Capacity, Animus donandi, Delivery, Acceptance, Form]
a. Capacity of donor to make donation

b. Donative intent (animus donandi)
c. Delivery (actual or constructive)
Requisites
d. Acceptance by donee
e. Necessary form prescribed by law
Note: Acceptance by the donee is required because donation is never obligatory.

One cannot be compelled to accept the generosity of another.
Other a. When a person gives to another a thing or right on account of the latter's
instances merits or of the services rendered by him to the donor, provided they do not
considered constitute a demandable debt. (Remuneratory donation) [Art. 726, CC]
as a b. When the gift imposes upon the donee a burden that is less than the value of
donation the thing given. (Onerous donation) [Art. 726, CC]
Donation Inter Vivos [Art. 729-731, CC]
Donation which shall take effect during the lifetime of the donor upon
concurrence of the requirements of donation, though the property
shall not be delivered until after the donor's death.
General Rule: Irrevocable

Kinds of As to its
Exceptions:
Donations taking effect
a. Subsequent birth of the donor’s children [Art. 760, CC];
b. Donor’s failure to comply with imposed conditions [Art. 764,
CC];
c. Donee’s ingratitude [Art. 765, CC]; or
d. Reduction of donation by reason of inofficiousness [Art. 752,
CC].
Donation Propter Nuptias [Art. 82, FC]
A special type of donation made by reason of marriage.
Requisites:
a. Must be made before the celebration of marriage;
b. Made in consideration of the marriage; and
c. Made in favor of one or both of the future spouses.
Causes for revocation of donation propter nuptias [Art. 86, FC]:

a. If the marriage is not celebrated or judicially declared void ab
initio, except donations made in the marriage settlements,
which shall be governed by Article 81;
Page 195 of 532

b. When the marriage takes place without the consent of the

parents or guardian, as required by law;
c. When the marriage is annulled, and the donee acted in bad
faith;
d. Upon legal separation, the one being the guilty spouse;
e. If it is with a resolutory condition and the condition is complied
with; or
When the donee has committed an act of ingratitude as specified by

the provisions of the CC on donations in general.
Donation Mortis Causa [Art. 728, CC]
It only becomes effective upon the death of the donor, as the
donor’s death ahead of the donee works as a suspensive condition
for the existence of the donation.
Characteristics:
a. The transferor retains ownership and control of the property
while alive;
b. The transfer is revocable at will before his death; and
The transfer will be VOID if the transferor should survive the
transferee.
a. Simple - made out of pure liberality or because of the merits
of the donee.
b. Remuneratory - made for services already rendered to the
donor.
As to cause c. Onerous - imposes a burden inferior in value to property
or donated.
consideration d. Improper - burden equal in value to property donated.
e. Sub-modo or modal - imposes a prestation upon donee as to
how property donated will be applied.
Mixed donations – e.g. sale for price lower than value of property.
[Labitag Syllabus]
Ordinary Propter Nuptias

As to requirement of express acceptance
Necessary [Art. 745-747, CC] Not necessary. Implied acceptance is enough.
As to future property
May include future property (same rule as wills)
Cannot include future property [Art. 751, CC]
[Art. 84, FC]
As to limit on donation of present property
No limit to donation of present property
If present property is donated and property regime
provided legitimes are not impaired. [Art. 750
is other than ACP, limited to 1/5. [Art. 84, FC]
and 752, CC]
As to grounds for revocation
Enumerated in Arts. 760, 764, and 765, CC Enumerated in Art. 86, FC
Inter vivos Mortis causa

As to formalities
Executed and accepted with formalities Must be in the form of a will, with all the formalities
prescribed by CC. [Art. 748 and 749] for the validity of wills. [Art. 728, CC]
Page 196 of 532

As to effectivity
Effective during the lifetime of the donor. It
takes effect independently of the donor’s Effective after the death of the donor. [Art. 728, CC]
death. [Art. 729, CC]
As to acceptance
Acceptance must be made after the death of the
donor, the donation being effective only after the
Acceptance must be made during the lifetime death of donor. Acceptance during the donor’s
of the donor. [Art. 746, CC] lifetime is premature and ineffective because there
can be no contract regarding future inheritance.
[Art. 728, CC]
As to transfer of ownership for right of disposition
Ownership is immediately transferred. Upon acceptance by the donee, but the effect of
Delivery of possession is allowed after death. such retroacts to the time of death of the donor.
As to revocation
Irrevocable – may be revoked for the reasons Revocable upon the exclusive will of the donor.
provided in Arts. 760, 764, 765, CC. [Ganuelas v. Cawed, G.R. No. 123968 (2003]
As to reduction or suppression
When it is excessive or inofficious [Art. 750,
CC] or for any of the reasons provided for in
When it is excessive or inofficious, it is reduced
Art. 760, CC. Being preferred, it is reduced
first, or even suppressed.
only after the donations mortis causa had
been reduced or exhausted.
As to effect if donor survives donee
Donation is void. [Maglasang v. Heirs of
Not affected.
Cabatingan, G.R. 131953 (2002)]
FORMALITIES REQUIRED
FOR MOVABLES [Art. 748, CC] FOR IMMOVABLES [Art. 749, CC]
The donation of a movable may be
made orally or in writing. Oral General Rule: Must be in a public document for it to be
donation requires simultaneous valid.
delivery.
If value of property exceeds P5,000: If donation and acceptance are in the same instrument:
a. Donation and acceptance a. It must be in a public instrument.
must be in writing; otherwise, b. Instrument must specify the property donated and
it is void. the value of the charges.
b. It need not be in public
instrument; neither is it If donation and acceptance are in separate instruments:
necessary that the a. It must be in a public instrument.
acceptance be in the same b. Instrument must specify the property and the value
instrument as the deed of of the charges.
donation. [Tolentino] c. Acceptance must also be in a public instrument.
d. It must be made during the lifetime of the donor.
If value is P5,000 or less: [Art. 746, CC]
a. If orally: there must be e. Donor must be notified in authentic form of such
simultaneous delivery acceptance made in a separate instrument.
b. If in writing: donation is valid f. Fact of such notification must be noted in both
even without simultaneous instruments.
delivery
Page 197 of 532

c. In every case, acceptance Exceptions:

must be made known to the a. Donations propter nuptias: need no express
donor for perfection of a acceptance.
donation to take place. [Art. b. Onerous donations: governed by rules on
746, CC] contracts.
Notes:
a. Donation of real property in a private instrument is
null and void.
b. Registration is not necessary for the donation to be
considered valid and effective. This only comes into
play with respect to affected third persons.
c. There is nothing that prevents the donor or his heirs
to execute a public document ratifying a previous
donation that has been avoided for lack of
compliance with the legal requisites. This
ratification had the effect of a new donation
[Abragan v. Centenera, G.R. No. 22173, (1924)].
d. Action to declare the inexistence of a void donation
does not prescribe [Art. 1410, CC].
What may be donated

All present property of the donor or part thereof. [Art. 750, CC]
Limitation:
a. The donor reserves, in full ownership or usufruct, sufficient means for support of himself and
all relatives entitled to be supported by donor at the time of acceptance. [Art. 750, CC]
b. The donor reserves property sufficient to pay donor’s debts contracted before donation,
otherwise, donation is in fraud of creditors. [Arts. 759, 1387, CC]
c. Donations provided for in marriage settlements between future spouses – must be not more
than 1/5 of present property. [Art. 84, FC]
d. Donation propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to
exceed 1/10 of disposable portion. [Art. 1070, CC]
What may not be donated
a. Future property; those which the donor cannot dispose of at the time of the donation [Art.
751, CC]
b. More than what he may give or receive by will [Art. 752, CC]. If it exceeds what he may give
or receive by will, then it is considered inofficious.
Limitations
a. Reservation of sufficient means for support of donor and relatives [Art. 750, CC]
1. A donor may donate his present property provided he reserves sufficient property in
ownership or in usufruct for the support of himself and all of his relatives who are entitled to
be supported by him.
2. Present property: property which the donor can rightfully dispose of at the time of donation.
3. Donation without reservation is not null and void in its entirety; it is only subject to reduction
by the court.
4. Limitation applies to simple, remunerative and modal donations but not to onerous ones nor
to donations mortis causa.
b. Donations cannot comprehend future property [Art. 751, CC]
1. Future property: understood as anything which the donor cannot dispose of at the time of
the donation.
2. Nobody can dispose of that which does not belong to him.
Page 198 of 532

3. Future inheritance cannot be donated because it is considered future property. However,

upon the death of his predecessor, the inheritance ceases to be future and consequently,
may be the object of donation. [Osorio v Osorio, supra]
c. Amount of donation limited to what donor may give by will [Art. 752, CC]
1. A person may not donate more than he can give by will.
2. Limitation applies where donor has forced or compulsory heirs.
Donations made to several persons jointly
A joint donation (donation to two or more persons) could not be accepted by a donee independently
of the other donee/s. [Genato v. de Lorenzo, G.R. No. L-24983 (1968)]
No accretion – one donee does not get the share of the other donees who did not accept. [Art. 753,
CC]
Exception: those given to husband and wife, except when the donor otherwise provides. [Art. 753,
CC]
Donor
Who are allowed: All persons who may contract (of legal age) and dispose of their property. [Art.
735, CC]
Donor’s capacity is determined at the time of the making of donation [Art. 737, CC] Subsequent
incapacity is immaterial.
Note: Capacity to donate is NOT required for donations mortis causa. [Tolentino]
Who are NOT allowed:

a. Guardians and trustees with respect to the property entrusted to them. [Art. 736, CC]
b. Those disqualified by reason of public policy: [Art. 739, CC]
c. Those made between persons guilty of adultery or concubinage at the time of the donation;
d. Those made between persons guilty of the same criminal offense if the donation is made in
consideration thereof; or
e. Those made to a public officer, his spouse, descendants, and/or ascendants by reason of
the office.
Donee
Who are allowed to accept donations:
a. Those who are not specifically disqualified by law. [Art. 738, CC]
b. Those who are allowed, with qualifications:
1. Minors, insane/imbecile, deaf-mute and others who are incapacitated [see Art. 38, CC],
provided that their acceptance is done through their parents or legal representatives. [Art.
741, CC]
2. Conceived and unborn children, provided that the donation is accepted by those who would
legally represent them if they were already born. [Art. 742, CC]
Who are not allowed:

a. Made between persons who are guilty of adultery or concubinage. [Art. 739, CC]
b. Made between persons found guilty of the same criminal offense, in consideration thereof.
[Art. 739, CC]
c. Made to a public officer or his wife, descendant and ascendants, by reason of his office.
[Art. 739, CC]
d. Those who cannot succeed by will. [Art. 740, CC] – covers those stated under Arts. 1027
and 1032, CC.
Page 199 of 532

e. Those made to incapacitated persons, although simulated under the guise of another
contract. [Art. 743, CC]
Acceptance of the donation
Who may accept: [Art. 745, CC]
a. Donee personally; or
b. Authorized person with a special power for the purpose, or with a general sufficient power.
When to accept: During the lifetime of the donor and of the donee. [Art. 746, CC]
What the donee acquires with the thing
He shall be subrogated to all the rights and actions that would pertain to the donor in case of eviction.
[Art. 754, CC]
Obligation of the donor
No obligation to warrant. [Art. 754, CC]
Exceptions:
a. When the donation is onerous. [Art. 754, CC]
In which case, the donor shall be liable for eviction to the concurrence of the burden; and
b. Liable for eviction or hidden defects in case of bad faith on the donor’s part.
Obligation of the donee
If the donation so states, the donee may be obliged to pay the only debts previously contracted
by the donor and in no case shall he be responsible for the debts exceeding the value of the thing
donated. [Art. 758, CC]
Exception: When a contrary intention clearly appears. [Art. 758, CC]
SPECIAL PROVISIONS
What may be reserved by the donor [Art. 755, CC]
The right to dispose of some of the things donated, or of some amount which shall be a charge
thereon.
Exception: If the donor dies without exercising this right. In which case, the property or amount
reserved shall belong to the done.
Donation of naked ownership to one donee and usufruct to another [Art. 756, CC]
The naked ownership and the usufruct may be donated separately, provided that all the donees
are living at the time of the donation.
Payment of donor’s debt [Art. 758, CC]
a. If expressly stipulated, the donee must pay only the debts contracted before the donation
unless specified otherwise.
But in no case shall the donee be responsible for debts exceeding the value of the property donated
unless clearly intended.
b. If there’s no stipulation, the donee will be answerable only for the donor’s debt only in case
the donation is in fraud of creditors. [Art. 759, CC]
Reversion [Art. 757, CC]
The property donated may be restored or returned to:
a. Donor or his estate (reversion may be for any case and circumstance); or
b. Other persons (such persons MUST all be living at the time of the donation)
Note: Any reversion stipulated by the donor in favor of a third person in violation of what is provided
in the foregoing shall be void, but shall not nullify the donation.
Double donations [Art. 744, CC]
Rule: Priority in time, priority in right.
a. If movable: One who first took possession in good faith. [Art. 1544, CC]
Page 200 of 532

b. If immovable: One who first recorded in Registry of Property in good faith. [Art. 1544, CC]
c. If there is no inscription, the one who first took possession in good faith. [Art. 1544, CC]
d. In the absence thereof (possession), one who can present the oldest title, provided there is
good faith. [Art. 1544, CC]
Excessive/Inofficious Donations [Art. 752, CC]
Inofficious donation: A type of donation in which a person gives or receives more than what he
may give or receive by will. If a donation is inofficious, it shall be reduced with regard to the excess.
But this reduction shall not prevent the donations from taking effect during the life of the donor, nor
shall it bar the donee from appropriating the fruits. [Art. 771, CC]
Note: Only those who, at the time of the donor's death, have a right to the legitime, and their heirs
and successors-in-interest, may ask for the reduction or inofficious donations. [Art. 772, CC]
If, there being two or more donations, the disposable portion is not sufficient to cover all of them,
those of the more recent date shall be suppressed or reduced with regard to the excess. [Art. 773,
CC]
Donations cannot comprehend future property [Art. 751, CC]
Future property: Understood as anything which the donor cannot dispose of at the time of the
donation.
Note: It is immaterial that the then-future property may subsequently belong to the donor. [Tolentino]
In fraud of creditors [Art. 759, CC]
Donation is always presumed to be in fraud of creditors, when at the time thereof the donor did not
reserve sufficient property to pay his debts prior to the donation.
There being no stipulation regarding the payment of debts, the donee shall be responsible for
donor’s debts only when the donation has been made in fraud of creditors, otherwise creditors may
rescind donation by way of accion pauliana.
VOID DONATIONS
a. Donation between spouses [Art. 87, FC]
General Rule: Every donation or grant of gratuitous advantage, direct or indirect, between the
spouses during the marriage shall be VOID. The prohibition applies to persons living together as
husband and wife without a valid marriage.
Exception: Moderate gifts which the spouses may give each other on the occasion of any family
rejoicing.
b. Those made between persons mentioned under Art. 739, CC
c. Those made to persons incapacitated to succeed by will. [Art. 740, CC]
REVOCATION/REDUCTION
Reduction
● Total withdrawal of amount, whether the legitime is impaired or not.
● Benefits the donor.
Revocation
● Amount is only insofar as the legitime is prejudiced.
● Benefits the donor’s heirs (except when made on the ground of the appearance of a child).
● Revocation due to birth, appearance, or adoption of a child applies only to donations inter vivos
and not to donations mortis causa, onerous donations, and donations propter nuptias. [De Leon,
p. 676]
Page 201 of 532

Time of Action Transmissibility Effect Liability (Fruits)

Birth, appearance, adoption [Art. 760, CC]
• Property is
returned.
• If the property
has been sold,
its value at the
time of
donation shall
be returned.
• If the property
Within 4 years Transmitted to
was
from birth, children and
mortgaged, the Fruits returned from the filing of
legitimation and descendants upon
donor may the complaint. [Art, 768, CC]
adoption. [Art. 763, the death of donor.
redeem the
CC] [Art. 763, CC]
mortgage, by
paying the
amount
guaranteed,
with right to
recover the
amount from
the done. [Art.
762, CC]
Non-compliance with condition [Art. 764,CC]
May be transmitted
to donor’s heirs and
may be exercised
against donee’s
heirs.
Property returned
Note: Art. 764 does to the donor,
not apply to alienations by the
Within 4 years Fruits received after having failed
onerous donations donee and
from non- to fulfill condition are to be
in view of Art. 733, mortgages void
compliance. returned. [Art. 768, CC]
providing that subject to rights of
onerous donations third persons in
are governed by good faith.
the rules on
contracts. [De Luna
v. Abrigo, 181
SCRA 150 (1990)]
Ingratitude [Art. 765, CC]

Applies to all donations
EXCEPT: Mortis causa; Propter nuptias; Onerous donations
Page 202 of 532

Property returned,
Not transmitted to but alienations and
Within 1 year after
heirs of donor/ mortgages effected
knowledge by
donee, but if donor before the notation
donor of the fact Fruits received from the filing of
dies during of the complaint for
and it was possible the complaint returned. [Art. 768,
pendency of case, revocation in the
for him to bring the CC]
heirs may be registry of property
action. [Art. 769,
substituted. [Art. subsist. Later ones
CC]
770, CC] shall be void. [Art.
776, CC]
Failure to reserve sufficient means for support [Art. 750, CC]
Reduced to the
At any time, by the
extent necessary to
donor or relatives Not transmissible. Donee entitled. [Art. 771, CC]
provide support.
entitled to support.
[Art. 771, CC]
Inofficiousness for being in excess of what the donor can give by will [Art. 752, CC]
Donation takes
effect on the
Within 5 years from lifetime of donor.
Transmitted to
the death of the Reduction only
donor’s heirs. [Art. Donee entitled. [Art. 771, CC]
donor. [Art. 1149, upon his death with
772, CC]
CC] regard to the
excess. [Art. 771,
CC]
Fraud against creditors [Art. 1381]
Rescission within 4
years from the Returned for the
Transmitted to
perfection of benefit of the Fruits returned, or if impossible,
creditor’s heirs or
donation creditor who indemnify creditor for damages.
successors-in-
(knowledge of the brought the action. [Art. 1385 and 1388, CC]
interest.
donation). [Art. [Art. 1388, CC]
1389, CC]
3. Prescription
Who may acquire
[See also, Part III. PRESCRIPTION.] Persons who are capable of acquiring property
or rights by the other legal modes may acquire
Definition the same by means of prescription. [Art. 1107
By prescription, one acquires ownership and (1), CC]
other real rights through the lapse of time in the
manner and under the conditions laid down by Minors and other incapacitated persons may
law. In the same way, rights and conditions are acquire property or rights personally or through
lost by prescription. [Art. 1106, CC] their parents, guardians, or legal
representatives.
Note: For purposes of ACQUIRING
OWNERSHIP, only ACQUISITIVE Kinds of prescription
PRESCRIPTION is being referred to. a. Acquisitive Prescription
• The acquisition of ownership and other
real rights through possession in the
Page 203 of 532

concept of owner of a thing in the ● Possession has to be in the concept of

manner and condition provided by law. an owner, public, peaceful, and
• Ordinary acquisitive prescription: uninterrupted. [Art. 1118, CC]
requires possession of things in good
faith and with just title for the time fixed b. Extinctive prescription
by law. ● The loss or extinguishment of property
rights or actions through the
Note: Ownership and other real rights possession by another of a thing for the
over immovable property are acquired period provided by law or through
by ordinary prescription through failure to bring the necessary action to
possession of ten years [Art. 1134, enforce one’s right within the period
CC]. fixed by law.
• Extraordinary acquisitive Acquisitive Extinctive

prescription: acquisition of ownership Prescription Prescription
and other real rights without need of Requires inaction
Requires positive
title or of good faith or any other of the owner out of
action of the
condition. possession or
possessor (a
neglect of one with
claimant) who is not
• Prescription where possession in a right to bring his
the owner.
good faith converted into action.
possession in bad faith: Applicable to all
Applicable to
a. Ordinary kinds of rights,
ownership and other
i. Movable properties - 4 whether real or
real rights.
years [Art. 1132, CC] personal.
ii. Immovable properties - 10 Vests the property Vests the property
years [Art. 1134, CC] and raise a new title in and raise a new title
b. Extraordinary: the occupant. in the occupant.
i. Movable properties - 8 Results in the
years [Art. 1132 and 1140, Merely results in
acquisition of
CC] the loss of a real or
ownership or other
ii. Immovable properties - 30 personal right, or
real rights in a person
years [Art. 1137, CC] bars the cause of
as well as the loss of
action to enforce
said ownership or real
! As a mode of acquisition, said right.
rights in another.
prescription requires existence of Should be
following [Tolentino]: Can be proven under affirmatively
a. Capacity of the claimant to acquire the general issue pleaded and
by prescription; without its being proved to bar the
b. A thing capable of acquisition by affirmatively pleaded. action or claim of
prescription; the adverse party.
c. Adverse possession of the thing
under certain conditions; and
d. Lapse of time provided by law.
e. Possession must be in the concept
of owner, not holder.
● For extraordinary prescription, only
possession in the concept of owner is
required; no need of good faith and just
title.
Page 204 of 532

Who may acquire by prescription

PRESCRIPTION 1. Persons who are capable of acquiring
property by other legal modes;
Definition 2. State;
By prescription, one acquires ownership and 3. Minors – through guardians of personally.
other real rights through the lapse of time in the
manner and under the conditions laid down by
law. In the same way, rights and conditions are A. TYPES OF
lost by prescription. [Art. 1106, CC] PRESCRIPTION
In the same way, rights and actions are lost by
prescription. [Art. 1106, CC] Acquisitive Extinctive
Prescription Prescription
Note: The provision impliedly differentiates two Requires positive Requires inaction of
kinds of prescription: acquisitive (par. 1) and action of the the owner out of
extinctive (par. 2). For purposes of possessor (a possession or
ACQUIRING OWNERSHIP, only claimant) who is not neglect of one with a
ACQUISITIVE PRESCRIPTION is being the owner. right to bring his
referred to. action.
Applicable to Applicable to all
Negligence as basis of prescription – both ownership and other kinds of rights,
kinds of prescription are essentially based on real rights. whether real or
negligence of the owner of the right. personal.
Vests the property Vests the property
Retroactive – acquisition of rights through and raises a new title and raises a new title
prescription is retroactive. One is deemed to in the occupant. in the occupant.
have acquired the right at the moment the Results in the Merely results in the
prescription began to run, once the period is acquisition of loss of a real or
completed. ownership or other personal right or
real rights in a bars the cause of
Rationale person as well as the action to enforce
It is purely statutory in origin. It is founded on loss of said said right.
grounds of public policy which requires for the ownership or real
peace of society, that juridical relations rights in another.
susceptible of doubt and which may give rise to Can be proven under Should be
disputes, be fixed and established after the the general issue affirmatively pleaded
lapse of a determinate time so that ownership without its being and proved to bar the
and other rights may be certain for those who affirmatively action or claim of the
have claim in them. pleaded. adverse party.
Requisites of prescription as a mode of 1. Acquisitive Prescription

acquiring ownership
1. Capacity to acquire by prescription; a. acquisition of a right, adverse possession,
2. A thing capable of acquisition by or usurpation;
prescription; b. refers to the possessor as the actor, as a
3. Possession of the thing under certain claimant in possession;
conditions; and c. vests property;
4. Lapse of time provided by law. d. the basis is the assertion of the usurper of
an adverse right, uncontested by the true
owner of the right, and gives rise to the
Page 205 of 532

presumption that the latter has given up the ownership but the transferor or grantor was not
right to the former. the owner of the property or he has no power
to transmit the right [Art. 1129, CC].
The acquisition of ownership and other real
rights through possession in the concept of b. Extraordinary
owner of a thing in the manner and condition
provided by law. May be ordinary or a. a loss of the right and limitation of actions;
extraordinary: b. refers to the neglect of the owner, who is
1. Ordinary: requires possession of out of possession;
things in good faith and with just title for c. bars the right of action;
the time fixed by law. d. the basis is the probability that alleged right
2. Extraordinary: acquisition of never existed or has already been
ownership and other real rights without extinguished, or if it exists, the
need of title or of good faith or any other inconvenience caused by the prescription
condition. should be borne by the negligent party.
Prescription where possession in good faith Prescription where the possessor is in bad
converted into possession in bad faith: faith. It does not require good faith or just title
1. Ordinary but possession for a period longer than
● Movable properties - 4 years [Art. 1132, ordinary acquisitive prescription [Pineda,
CC] 2009].
● Immovable properties - 10 years [Art.
1134, CC] Requisites
2. Extraordinary: 1. Capacity of the possessor to acquire by
● Movable properties - 8 years [Art. 1132 prescription;
and 1140, CC] 2. Susceptibility of object to prescription;
● Immovable properties - 30 years [Art. 3. Adverse possession of the character
1137, CC] prescribed by law;
4. Lapse of time required by law; and
Possession has to be in the concept of an 5. Good faith of possessor or proof of just
owner, public, peaceful, and uninterrupted. title.
[Art. 1118, CC]
2. Extinctive Prescription
a. Ordinary
Basis
It requires possession of things in good faith It based on the probability, born of experience,
and with just title for the time fixed by law. that the alleged right which accrued in the past
never existed or has already been
Good faith extinguished; or if it exists, the inconvenience
If he is not aware of the existence of any flaw caused by the lapse of time should be borne by
or defect in his title or mode of acquisition the party negligent in the assertion of his right
which invalidates it [Art. 526 in relation to Art. [Tolentino].
1128, CC] and has reasonable belief that the
person from whom he received the thing was
a. Characteristics
the owner thereof, and could transmit his
ownership [Art. 1127, CC].
The loss or extinguishment of property rights or
actions through the possession by another of a
Just title
thing for the period provided by law or through
It means that the possessor obtained the
failure to bring the necessary action to enforce
possession of the property through one of the
one’s right within the period fixed by law.
modes recognized by law for acquiring
Page 206 of 532

b. Requisites Rights not extinguished by prescription

[Art.1143, CC]
1. Capacity to acquire by prescription; ● To demand a right of way, regulated in
2. A thing capable of acquisition by [Art. 649, CC];
prescription; ● To bring an action to abate a public or
3. Possession of the thing under certain private nuisance.
conditions; and
4. Lapse of time provided by law. 4. Action to quiet title if plaintiff
is in possession
c. Periods
When plaintiff is in possession of the property,
1. Movables the action to quiet title does not prescribe. The
a. 4 years ‐ If in good faith; and reason is that the owner of the property or right
b. 8 years ‐ If in bad faith [Art. may wait until his possession is disturbed or his
1140 in relation to Art. 1132, title is assailed before taking steps to vindicate
CC]. his right.
2. Immovables
a. 10 years ‐ If in good faith
b. 30 years ‐ If in bad faith 5. Void contracts
The action or defense for the declaration of the
B. WHEN PRESCRIPTION inexistence of a contract does not prescribe.
IS INAPPLICABLE [Art.1410, CC]
6. Action to demand partition;

1. By offender
distinguished from laches
The offender can never acquire, through
prescription, movable properties possessed No prescription shall run in favor of a co-owner
through a crime such as robbery, theft, or or co-heir against his co-owners or co-heirs so
estafa [Art. 1133, CC]. long as he expressly or impliedly recognizes
the co-ownership. [Art. 494, CC]
Note: The person who cannot invoke the right
of prescription is the offender or person who Prescription distinguished from laches:
committed the crime or offense, not a Prescription Laches
subsequent transferee who did not participate Concerned with the Concerned with the
in the crime or offense, unless the latter knew fact effect of delay.
the criminal nature of the acquisition of the of delay.
property by the transferor.
A matter of time. Principally a question
of
2. Registered lands inequity of permitting
a claim to be
No title to registered land in derogation of the
enforced, this
title of the registered owner shall be acquired
inequity being
by prescription or adverse possession. [PD
founded on some
1529]
subsequent change
in the condition or the
3. Actions to demand right of relation of the
way; to abate a nuisance parties.
Page 207 of 532

Prescription Laches
Statutory. NOT statutory
C. PRESCRIPTION OR
Applies at law. Applies at equity LIMITATION OF
Cannot be availed of Being a defense of ACTIONS
unless it is especially equity, need not be
pleaded as an specifically pleaded.
affirmative 1. To recover movables
allegation.
Based on a fixed NOT based on a The action prescribes in 8 years from the time
time. fixed time. the possession thereof is lost. [Art. 1132 and
1140, CC]
Laches – (or “estoppel by laches”) is However, the action shall not prosper if it is
unreasonable delay in the bringing of a cause brought after 4 years when the possessor has
of action before the courts of justice; it is failure already acquired title by ordinary acquisitive
or neglect, for an unreasonable and prescription. [Art. 1132, CC]
unexplained length of time, to do that which, by
exercising due diligence, could or should have If the possessor acquired the movable in good
been done earlier; it is negligence or omission faith at a public sale, the owner cannot obtain
to assert a right within a reasonable time, its return without reimbursing the price paid.
warranting a presumption that the party entitled [Art.559, CC]
thereto either has abandoned it or declined to
assert it. 2. To recover immovables
Requisites of Laches: General Rule: Real actions prescribe after 30
1. Conduct on the part of the defendant years [Art. 1141, CC]
which gives rise to a claim;
2. Delay in asserting complainant’s rights Exception: The possessor has acquired
(the complainant having ownership of the immovable by ordinary
knowledge/opportunity to file suit); acquisitive prescription through possession of
3. Lack of knowledge/notice of the part of 10 years. [Art. 1134, CC]
the defendant that the complainant
would assert a right; and 3. Other actions
4. Injury or prejudice to the defendant in
the event relief is accorded to the Action for reconveyance
complainant. ! Based on fraud: Prescribes 4 years from
the discovery of fraud. [Art. 1391, CC]
7. Property of public dominion ! Based on implied or constructive trust:
10 years from the alleged fraudulent
Prescription, both acquisitive and extinctive, registration or date of issuance of
does not run against the State in the exercise certificate of title over the property. [Art.
of its sovereign function to protect its interest 1144, CC]
EXCEPT with respect to its patrimonial
property which may be the object of Prescriptive Action
prescription. [Art. 1113, CC] Period
1. Action to foreclose a
10 years mortgage (from the time the
[Art. principal obligation becomes
1144, CC] due and demandable)
2. Actions upon:
Page 208 of 532

a. A written contract
b. An obligation created by D. INTERRUPTION [ART.
law 1155, CC]
c. A judgment
6 years Actions upon: 1. When prescription of actions is
[Art. 1. An oral contract interrupted
1145, CC] 2. A quasi-contract a. They are filed before the court;
b. When there is a written extrajudicial
5 years All other actions whose demand by the creditors; and
[Art. periods are not fixed in the c. When there is any written
1149, CC] CC or in other laws. acknowledgment of the debt by the
4 years Actions upon: debtor.
[Art. 1. An injury to the rights of
1145, CC] the plaintiff. 2. Types of interruption
2. A quasi-delict. 1. Natural - Any natural cause that
1. Actions for Art. 1147, CC. interrupts the possession for more than
a. Forcible entry within one one year. [Art. 1121, CC]
year from date of 2. Civil [Art. 1123, CC]
dispossession thru FISTS or a. For acquisitive prescription – starts
unlawful detainer 1 year from from the time judicial summons are
date of last demand. received.
b. Defamation b. For extinctive prescription – starts
from the time action is filed in court,
2. Actions upon an injury to written extrajudicial demand by the
the rights of the plaintiff or creditors is received, or when there
upon a quasi-delict resulting is written acknowledgment of the
from any act of any public debt by the debtor. [Art. 1155, CC]
officer involving the exercise
of powers arising from Suspension in case of acquisitive
Martial Law including the prescription
arrest, detention and/or trial The period of interruption shall be counted in
of the plaintiff. favor of prescription (i.e. as if interruption never
1 year
happened but is merely suspended) if:
3. To recover possession de a. Judicial summons is void
facto. [Art. 554 (4), CC] b. Plaintiff should desist from the complaint
c. Possessor be absolved from the complaint
4. To revoke a donation on
the ground of ingratitude. Note: There is no suspension in extinctive
[Art. 769, CC] prescription.
5. To rescind or recover Effects of interruption

damages if immovable is old 1. All the benefits acquired so far from the
with non-apparent burden or possession ceases.
servitude. [Art. 1560 (3,4), 2. When the prescription runs again, it will be
CC] reset (i.e. entirely new prescriptive period)
6. To enforce warranty of
solvency of debts in
assignment of credits. [Art.
1629, CC]
Page 209 of 532

U.P. LAW BOC SUCCESSION CIVIL LAW
SUCCESSION
CIVIL LAW
Page 210 of 532

• Those which involve or require

A. GENERAL PROVISIONS the personal skills,
qualifications, characteristics
or circumstances of a particular
individual
1. Definition • Criminal responsibility
Succession is a mode of acquisition by virtue 2. Intransmissible by stipulation
of which the property, rights and obligations, to
the extent of the value of the inheritance, of 3. Intransmissible by provision of law
a person are transmitted through his death to
another or others either by his will or by Examples:
operation of law. [Art. 774, CC] • Usufruct [Art. 603, CC]
• Agency [Art. 1919, CC]
Succession is one of the modes of acquiring • Commodatum [Art. 1939, CC]
ownership and other real rights over property.
[par 2, Art. 712, CC]
b. Monetary debts left by the decedent are
intransmissible in the sense that they are
Kinds of Succession: paid from the estate of the decedent and
a. Testamentary
only the net estate or remainder goes to the
b. Legal or Intestate
heirs. If the decedent’s estate is not
c. Mixed
sufficient to pay his debts, his heirs cannot
d. Compulsory
be held liable for said debts in their
personal capacity [Rule 88-90, Rules of
Scope of Inheritance Court].
General rule:
a. All the property, rights and obligations of a
Rule on Transmission
person which are not extinguished by his
General rule: All property rights which have
death [Art. 776, CC]
accrued to the hereditary estate since the
b. Not only the property and the transmissible opening of succession are transmitted to the
rights and obligations existing at the time of
heirs [Art. 777, CC].
his death, but also those which have
accrued thereto since the opening of the
succession [Art. 781, CC] 2. Succession occurs at the
moment of death
Exceptions:
a. Rights and obligations extinguished by Rules on Opening of Succession
death and are not transmissible [Art. 1311, a. The rights to succession are transmitted
CC] from the moment of the death of the
decedent. [Art. 777, CC]
1. Intransmissible by nature: this
refers to rights and obligations Implications of this principle
which are strictly personal (intuitu 1. The law in effect at the time of death of
personae) the decedent governs the succession
[Art. 2236, CC]
Examples: 2. The heir becomes the owner of his
• Those relating to family share as well as all fruits which accrue
relations after the death of the decedent.
• Those arising from public law 3. Upon death of the decedent, heirs may
immediately possess, administer and
Page 211 of 532

dispose of their shares in the estate (in 3. Kinds of successors

the absence of existing debts/claims
against the estate); 1. Heirs – those who are called to the whole
4. Since succession takes place by or an aliquot portion of the inheritance
operation of law at the moment of the either by will or by operation of law [Art.
death of the decedent, the heirs can 782, CC]
sue upon the rights of the decedent, ● Compulsory Heirs
without having to be appointed ● Voluntary or Testamentary Heir
executor or administrator [Emnace v. ● Legal or Intestate Heirs
CA, G.R. No. 126334 (2001)], and
without need of a judicial declaration of 2. Devisees and Legatees
their status as heirs [De Vera v. • Devisees are persons to whom gifts of
Galauran, 67 Phil 213 (1939)]. Heirs real property are given by virtue of a
may also be sued without a previous will. [Art. 782]
declaration of heirship, provided there • Legatees are persons to whom gifts of
is no pending special proceeding for personal property are given by virtue of
the settlement of estate of the a will. [Art. 782]
decedent [Gayon v. Gayon, G.R. No. L-
28394 (1970)]. Note: In case of preterition, the distinction
5. The possession of hereditary property between heir and legatee/devisee is
is deemed transmitted to the heir significant. Preterition annuls the institution of
without interruption and from the heirs. It does not affect the institution of
moment of death of the decedent, in legatees and devisees provided that the
case the inheritance is accepted [Art. legitimes are not impaired [Art. 854, CC].
533, CC]
6. Estate taxes accrue upon death of the
decedent, even if the heirs come into Heir Legatee / Devisee
possession only later. Represents the
Does not represent
juridical personal
regardless of the
b. A person may be “presumed” dead for the obligations not
legacy or device’s
purpose of opening his succession. In this extinguished by
value
case, succession is only of provisional death
character because there is always a Succeeds to the
chance that the absentee may still be alive remainder of the Succeeds only to the
[Arts. 390-391, CC]. decedent’s determinate thing or
properties after all quantity which is
Subjects of Succession the debts and all the mentioned in the
a. Decedent – person whose property is legacies and devices legacy or device
transmitted through succession, whether or have been paid
not he left a will [Art. 775, CC] Can exist in either Can exist only in
○ Testator – a decedent who left a will [Art. testamentary or testamentary
775, CC] intestate succession succession
b. Successor – person who succeeds to the
property of the decedent.
Page 212 of 532

Note: testator must

B. TESTAMENTARY first specify the class
SUCCESSION and the amount of
property for proper
delegation
1. Wills
2. Free and intelligent [Art. 839, CC] –
Definition of a will: An act whereby a person
Execution of a will tainted by any vices
is permitted, with the formalities prescribed by
affecting the free will of the testator can
law to control to a certain degree the
cause its disallowance.
disposition of his estate to take effect after
his death [Art. 783, CC].
3. Solemn or formal – if the formalities of
a will required by law are not complied
KINDS OF WILLS
with, it will be disallowed. [Art. 839, CC]
1. Notarial – an ordinary or attested will,
which must comply with the requirements
4. Revocable and ambulatory – will can
of the law [Arts. 804-808, CC]
be revoked at any time before the
2. Holographic – a will entirely written, dated
testator’s death [Art. 828, CC]
and signed by the hand of the testator [Art.
810, CC]
5. Mortis causa – takes effect upon the
testator’s death [Art. 783, CC]
CHARACTERISTICS OF WILLS
1. Purely personal
6. Individual – prohibition against joint
General rule: the making of a will is a
wills [Art. 818, CC]
strictly personal act. Thus,
a. It cannot be left in whole or in
7. Executed with animus testandi –
part to the discretion of a third
intent to dispose of the property
person, or
b. It cannot be accomplished
8. Executed with testamentary
through an agent or attorney.
capacity
Exception
9. Unilateral act – does not involve an
What cannot be What may be
exchange of values or depend on
delegated to 3rd entrusted to 3rd
simultaneous offer and acceptance
persons persons
a. designation a. designation
10. Dispositive – disposes of property
of heirs, of
devisees person/instit
Even in the absence of dispositive
and legatees ution falling
provisions, a will disinheriting a
b. duration/effi under a class
compulsory heir is still a dispositive will
cacy of specified by
because a disinheritance has the effect
designation testator
of disposing the legitime of the
c. determinatio b. manner of
disinherited compulsory heir in favor of
n of portions, distribution of
other compulsory heirs [Seangio v.
when property
Reyes, G.R. Nos. 140371-72 (2006)].
referred to specified by
by name testator [Art.
Exceptions: Non-dispositive wills.
[Art. 785, 786, CC]
e.g. A will recognizing an illegitimate
CC]
child
Page 213 of 532

11. Statutory grant – permitted only by 2. The testator must be at least 18 years old
law, not a constitutional right [Art. 797, CC]
RULES OF CONSTRUCTION AND 3. The testator must be of sound mind at the

INTERPRETATION [Arts. 788-795] time of execution [Art. 798, CC]
Main principle: Testacy is preferred to Test of soundness of mind: To be of sound

intestacy. The intent of the testator is mind, the testator must know:
paramount and must be given effect as far as a. The nature of the estate to be disposed
legally possible. of;
b. The proper objects of his bounty;
Governing Laws, In General c. The character of the testamentary act
Aspect of the Will Governing Law [Art. 799, CC]
Law in force at the
time the will was General rule: Soundness of mind is presumed
Formal Validity
executed [Art. 795, [Art. 800, CC]
CC]
Law of decedent’s Exceptions:
nationality at the a. When the testator, one month or less
Intrinsic Validity time of his death before the execution of the will, was
[Arts. 16 and 2263, publicly known to be insane. [Art. 800, CC]
CC] b. When the testator executed the will after
being placed under guardianship or
Aspects of the Will Governed by the ordered committed, in either case, for
National Law of the Decedent: insanity under Rules 93 and 101 of the
1. Order of succession; Rules of Court, and before said order has
2. Amount of successional rights; been lifted. [Torres v. Lopez, G.R. No. L-
3. Intrinsic validity of testamentary provisions; 25966 (1926); Balane]
and
4. Capacity to succeed [Art. 16, CC] FORMS OF WILLS
TESTAMENTARY CAPACITY AND INTENT In General [Art. 804, CC]

1. The will must be in writing
Time of Determining Capacity 2. It must be in a language or dialect known
Capacity to make a will is determined as of the to the testator
time of making thereof [Art. 798, CC].
Applicable Laws as to Formal Validity
Supervening incapacity does not invalidate an Applicable Law
effective will. Likewise, a supervening capacity Law in force at the time the
does not validate the will of an incapable [Art. Formal
will was executed [Art. 795,
801, CC]. Validity
CC]
Requisites for Capacity to Make a Will Place,

Law of the country in which
1. The testator must not be expressly Forms &
the will was executed [Art.
prohibited by law to make a will [Art. 796, Solemnities
17, CC]
CC] of a Will
Page 214 of 532

Arts. 815-817, CC (summarized in the table ATTESTED OR NOTARIAL WILLS

below) provide for the various governing laws
in these instances: Formal requirements for notarial wills
1. A will was made in a foreign country by 1. Subscribed at the end
a Filipino [Art. 815] 2. Attestation clause
2. A will was made in a foreign country by 3. Marginal signatures
an alien [Art. 816] 4. Page numbers
3. A will was made in the Philippines by 5. Acknowledged by a notary public
an Alien [Art. 817] 6. Additional requirements for handicapped
testators
Governing Law as to Place of Execution of 7. Subscribed by 3 or more witnesses in the
Will presence of the testator and of one another
Place of
Testator Execution Governing Law Note: Unlike in holographic wills, there is no
of Will requirement that an attested will should be
Philippine Law [Art. dated.
Philippines
16, CC]
1. Philippine Law Formal Requirement
[Art. 815, CC] Subscribed at the end of
Filipino Outside of 2. Law of the the will by:
the country in a. Testator himself
Philippines which it is b. Testator’s name
Subscription
executed [Art. written by a
17, CC] representative in his
1. Philippine Law; presence and under his
or express direction
2. Law of the Attested and subscribed by
country of 3 or more credible
Philippines
which testator witnesses in the presence
is a citizen or of the testator and of one
subject [Art. another [Art. 805, CC]
817, CC]
1. Philippine Law The attestation clause shall
[Art. 816, CC]; state the following [par. 3,
or Art. 805, CC]:
Alien 2. Law of the 1. Number of pages;
testator’s Attestation 2. The fact that the
country; or Clause testator or his
Outside of 3. Law of the representative
the place where the under his express
Philippines testator direction signed
resides; or the will and every
4. Law of the page in the
country where presence of
the will is instrumental
executed [Art. witnesses
17, CC] 3. That the witnesses
signed the will and
Page 215 of 532

all its pages in the 1. When the will consists

presence of the of only one page
testator and of one 2. When the will consists
another. of only two pages, the
first of which contains
The signatures of the all dispositions and is
witnesses must be at the signed at the bottom by
bottom of the attestation the testator and the
clause [Cagro v. Cagro, witnesses, and the
G.R. No. L-5826 (1953)]. second page contains
only the attestation
The notary public cannot clause duly signed at
be counted as an attesting the bottom by the
witness [Cruz v. Villasor, witnesses. [Abangan v.
G.R. No. L-32213 (1973)]. Abangan, G.R. No. L-
13431 (1919)]
Test of presence: Not 3. The use of thumbprint
whether they actually saw was allowed [Matias v.
each other sign, but Salud, G.R. No. L-
whether they might have 10751 (1958)]
seen each other sign had 4. The inadvertent failure
they chosen to do so of one witness to affix
considering their mental his signature to one
and physical condition and page of a testament,
position with relation to due to the
each other at the moment simultaneous lifting of
of inscription of each two pages in the
signature [Jaboneta v. course of signing, is not
Gustilo, G.R. No. 1641 per se sufficient to
(1906)]. justify denial of
probate. [Icasiano v.
Effect of Omissions: Icasiano, G.R. No. L-
Omissions can be supplied 18979 (1964)]
by an examination of the All the pages of the will
will itself, without the need shall be numbered
of resorting to extrinsic correlatively in letters
Page
evidence, will not be fatal placed on the upper part of
Numbers
and will not prevent each page (i.e. Page One
allowance of the will. of Five Pages). [Art. 805,
General rule: Testator or CC]
his representative shall The certification of
write his name, and the acknowledgement need
Acknowledged
Marginal witnesses shall sign each not be signed by the notary
by a notary
Signatures and every page except the in the presence of the
public [Art.
last page [Art. 805, CC]. testator and the witnesses.
806, CC]
[Javellana v. Ledesma,
Exceptions: G.R. L-7179 (1955)]
Page 216 of 532

1. Deaf Mute [Art. 807,

CC] Supervening
a. Testator must incompetency shall not
personally read the prevent the allowance of
will; or the will [Art. 822, CC].
b. Testator shall
personally Rules on Interested Witness [Art. 823, CC]
designate two General Rule Exception
persons to read the Devises or If there are three other
contents and legacies in favor competent witnesses,
communicate it to of an interested the devise or legacy
him in some witness or his or shall be valid and the
practicable her spouse, interested witness shall
Additional
manner. parent, or child be treated as a mere
Requirements
2. Blind [Art. 808, CC] will be void surplusage
for
a. The will shall be
handicapped
read to the testator HOLOGRAPHIC WILLS
testators
twice – By one of
the subscribing Formal Requirements for Holographic Wills
witnesses and by 1. In writing [Art. 804, CC]
the notary public 2. In a language known to the testator
acknowledging the [Art. 804, CC]
will. 3. Entirely written, dated and signed in the
b. A testator suffering hand of the testator himself [Art. 810,
from glaucoma CC]
may be considered
as legally blind Witnesses Required for Probate [Art. 811,
[Garcia v. CC]
Vasquez, G.R. No. 1. At least one witness who knows the
L-26615 (1970)] handwriting and signature of the
Qualifications [Art. 820, testator; explicitly declare that it is the
CC] testator’s
1. Of sound mind 2. If contested – at least 3 of such
2. Aged 18 years or over witnesses
3. Not blind, deaf or dumb 3. In the absence of a competent
4. Able to read and write witness, expert testimony may be
Subscribed by
3 or more resorted to
Disqualifications [Art. 821,
witnesses in
CC] General rule: The holographic will itself must
the presence
1. Person not domiciled in be presented for probate [Gan v. Yap, G.R. No.
of the testator
the Philippines L-12190 (1958)]
and of one
2. Those who have been
another
convicted of Exception: If there is a photostatic copy or
falsification, perjury, or xerox copy of the holographic will, it may be
false testimony. presented for probate [Rodelas v. Aranza, G.R.
No. L58509 (1982)]
Creditors may be
witnesses [Art. 824, CC].
Page 217 of 532

Additional Dispositions
In holographic wills, the dispositions of the
testator written below his signature must be Will is void
Contemporaneous
dated and signed by him in order to make because it is not
to the execution of
them valid as testamentary dispositions [Art. written entirely by
the will
812, CC] the testator
When a number of dispositions appearing in a JOINT WILLS

holographic will are signed without being
dated, and the last disposition has a signature Elements
and date, such date validates the dispositions 1. A single testamentary instrument,
preceding it, whatever be the time of prior 2. Which contains the wills of two or more
dispositions. [Art. 813, CC] persons,
3. Jointly executed by them,
Insertion, Cancellation, Erasure Or 4. Either for their reciprocal benefit or for the
Alteration [Art. 814, CC] benefit of a third person.
Testator must authenticate by his full signature.
Filipinos cannot make Joint Wills
If such change is not authenticated by the Joint wills executed by Filipinos, whether in the
testator, such change is considered not made. Philippines or abroad, are prohibited.
Thus, “the will is not thereby invalidated as a
whole, but at most only as regards the Note: Separate documents, each serving as
particular words erased, corrected, or one independent will (even if written on the
inserted.” [Kalaw v. Relova, G.R. No. L-40207 same sheet) are not considered joint wills.
(1984), citing Velasco v. Lopez (1903)]
MUTUAL WILLS
Note, however, that in the case of Kalaw v.
Relova, the alteration involved the designation 1. Executed pursuant to an agreement
of the testator’s sole heir. In this case, the between two or more persons,
holographic Will had only one substantial 2. Jointly executed by them,
provision, which was altered by substituting the 3. Either for their reciprocal benefit or for
original heir with another, but which alteration the benefit of a third person.
did not carry the requisite of full authentication
by the full signature of the testator, the effect This is prohibited under Article 818.
must be that the entire Will is voided or revoked
for the simple reason that nothing remains in RECIPROCAL WILLS
the Will after that which could remain valid.
1. Testators name each other as
Effect of Insertion Written by Another beneficiaries in their own wills (there
Person on the Validity of a Holographic Will are therefore 2 separate documents),
When Made Effect 2. Under similar testamentary plans –
Insertion considered valid
After the not written. Validity
execution, without cannot be defeated by CODICILS
consent of testator the malice or caprice
of a third person 1. It is a supplement or addition to a will,
After execution, Will is valid, insertion 2. made after the execution of a will,
with consent is void 3. and annexed to be taken as a part of
the will,
Page 218 of 532

4. by which any disposition made in the by some other person in his presence,
original will is explained, added to, or and by his express direction.
altered.
5. in order that it may be effective, it shall The act contemplating revocation must be
be executed as in the case of a will. done at any time before the death of the
[Arts. 825-826, CC] testator. The right of revocation cannot be
waived or restricted. [Art. 828, CC]
Note: A codicil must be in the form of a will –
can have a notarial codicil attached to a Note: Even if a holographic will was not
holographic will, and a holographic codicil intended to be revoked, unless a xerox copy
attached to a notarial will. exists, it can no longer be proved.
Incorporation by Reference Law Governing Revocation [Art. 829, CC]

Place of
Testator’s
Requisites [Art. 827, CC] Revoca- Governing Law
Domicile
tion
1. The document or paper referred to in the
will must be in existence at the time of the Philippines,
execution of the will. or some
Philippines Philippine Law
2. The will must clearly describe and identify other
the same, stating among other things the country
number of pages thereof. 1. Law of
3. It must be identified by clear and Domicile -
satisfactory proof as the document or Philippine
Philippines
paper referred to therein; and law
(This
4. It must be signed by the testator and the 2. Law of lace
situation is
witnesses on each and every page, except of
not
in case of voluminous books of account or Revocation
governed
inventories. 3. Law of Place
by Art. 829)
of Execution
Note: Not available to holographic wills. of Will
Outside
[Balane]
the
REVOCATION OF WILLS 1. Law of the
Philippines
Place of
A will may be revoked by the testator at any Execution of
time before his death [Art. 828, CC] Will; or
2. Law of the
Foreign
Modes of Revocation [Art. 830, CC] place in
Country
1. By implication of law which the
EXAMPLE: testator had
i. Preterition [Art. 854, CC]; his domicile
ii. Legal separation [Art. 63, FC]; at the time of
iii. Unworthiness to succeed [Art. revocation
1032, CC], et al.);
2. By the execution of a will, codicil or General Rule: A revocation made in a
other writing executed as provided in subsequent will shall take effect, even if the
the case of wills (may be total or partial) new will should become inoperative by reason
3. By burning, tearing, canceling, or of the incapacity of the heirs, devisees or
obliterating the will with the intention of legatees designated therein, or by their
revoking it, by the testator himself, or renunciation. [Art. 832, CC]
Page 219 of 532

Exception: Doctrine of Dependent Relative REPUBLICATION AND REVIVAL

Revocation [Molo v. Molo, G.R. No. L-2538
(1951)] Republication vs.Revival
Republication Revival
The rule that where the act of destruction is • Takes place by
connected with the making of another will so as an act of the • Takes place by
to fairly raise the inference that the testator testator operation of law
meant the revocation of the old to depend upon • Corrects • Restores a
the efficacy of the new disposition intended to extrinsic and revoked will
be substituted, the revocation will be intrinsic defects
conditional and dependent upon the efficacy of
the new disposition; and if for any reason, the Art. 835 Art. 836
new will intended to be made as a substitute is Void as to:
inoperative, the revocation fails and the original 1. Non-formal
will remain in full force. Void as to form [Art.
defect
805, CC]
2. Previously
The failure of the new testamentary disposition revoked
upon whose validity the revocation depends is How to Republish: How to Republish:
equivalent to the non-fulfillment of a 1. Execute new will 2. Execute new will
suspensive condition and hence prevents the 2. Copy out the or codicil
revocation. provisions from 3. Simply make
the original void references to old
False Cause/Illegal Cause will will
A revocation based on a false cause or illegal Reference to Reference to original
cause is null and void [Art. 833, CC]. original insufficient sufficient
It must appear from the will that the testator is ALLOWANCE AND DISALLOWANCE OF
revoking because of the cause which he did not WILLS
know was false.
Probate Requirement: No will shall pass
Recognition of Illegitimate Child either real or personal property unless it is
The recognition of an illegitimate child does not proved and allowed in accordance with the
lose its legal effect even though the will wherein Rules of Court. [Art. 838, CC]
it was made should be revoked [Art. 834, CC].
Definition of a Probate: A proceeding in rem
Principle of Instanter required to establish the validity of a will and in
Revoking clause in the 2nd will is not order to pass real or personal property. The
testamentary in character but operates to testator himself may, during his lifetime petition
revoke the prior will instanter (immediately) the court having jurisdiction for the allowance
upon the execution of the will containing it. The of his will. [Art. 838, CC]
revocation of the 2nd will does not revive the 1st
will which has already become a nullity. Kinds of Probate
1. Post-mortem: after death
2. Ante-mortem: during the testator’s lifetime
Note: Probate of a will is mandatory.
Page 220 of 532

Matters to be proved in probate: Effect of Final Decree of Probate, Res

1. Identity Judicata on Formal Validity
2. Due Execution The probate of a will by the probate court
3. Capacity of the Testator having jurisdiction thereof is usually considered
as conclusive as to its due execution and
SCOPE OF PROBATE PROCEEDINGS [Art. validity and is also conclusive that the testator
839, CC] was of sound and disposing mind at the time
General rule: The probate court cannot inquire when he executed the will, and was not acting
into the intrinsic validity of testamentary under duress, menace, fraud, or undue
provisions. Only the extrinsic validity of such influence, and that the will is genuine and not a
wills may be examined. forgery. [Mercado v. Santos, G.R. No. 45629
(1938)]
Exceptions:
1. When practical considerations demand Grounds for Denying Probate
that the intrinsic validity of the will be 6. If the signature of the testator was procured
resolved: When the will is intrinsically void by fraud;
on its face (e.g., when there is clearly a 7. If it was procured by undue and improper
preterition) such that to rule on its formal pressure and influence, on the part of the
validity would be a futile exercise [Acain v. beneficiary or some other person;
IAC, G.R. No. L-72706 (1987)]. 8. If the testator acted by mistake or did not
2. Claimants are all heirs and they consent, intend that the instrument he signed should
either expressly or impliedly, to the be his will at the time affixing his signature
submission of the question of intrinsic thereto;
validity to the court [Valera v. Inserto, G.R. 9. If the testator was insane or otherwise
No. L-56504 (1987)]. mentally incapable of making a will at the
3. Probate court may pass upon the title to a time of its execution;
property, but such determination is 10. If the formalities required by law have not
provisional and not conclusive, and is been complied with; or
subject to the final decision in a separate 11. If it was executed through force or under
action to resolve title [Pastor v.CA, G.R. duress, or the influence of fear, or threats.
No. L-56340 (1983)]. [Art. 839, CC]
4. Probate court may decide on the
ownership of a property when the estate 2. Institution of heirs
contains only one property to be
adjudicated upon [Portugal v. Portugal- A will shall be valid even though it —
Beltran, G.R. No. 155555 (2005)]. a. should not contain an institution of an heir;
or
Revocation vs. Disallowance b. such institution should not comprise the
Revocation Disallowance entire estate; or
Voluntary act of the Given by judicial c. the person so instituted should not accept
testator decree the inheritance or be incapacitated to
Must always be for a succeed.
With or without cause
legal cause
Always total, except In such cases, the testamentary dispositions
when the ground is made in accordance with law shall be complied
fraud or influence with and the remainder of the estate shall pass
May be partial or total
which affects only
to the legal heirs. [Art. 841, CC]
certain portions of the
will
Page 221 of 532

Extent of Grant [Art. 842, CC] Preterition

Freedom of disposition depends upon the NOT ALTHOUGH NAMED
existence, kind and number of compulsory NAMED
heirs. He is not He is neither:
a. No compulsory heirs – Testator has full named in the 1. Instituted as an heir
power of disposition will. 2. Expressly
b. With compulsory heirs – Testator cannot disinherited
disregard the rights of the compulsory 3. Assigned any part of
heirs. Testator may dispose of the free the estate
portion of his estate only. Thus: tacitly deprived of his right to legitime.
Effect of Predecease of Heir [Art. 856, CC] Concept [Art. 854, CC]
Any heir who dies before the testator or is 1. There must be a total omission of one,
incapacitated to succeed or renounces the some or all of the heir/s from the
inheritance transmits no rights of the testator to inheritance. [Seangio v. Reyes, G.R. Nos.
his own heirs. This is without prejudice to the 140371-72 (2006)]
rights of representation [Tolentino]. 2. The omission must be that of a compulsory
heir.
Manner of Distribution 3. The compulsory heir omitted must be of the
1. Heirs instituted without designation of direct line.
shares shall inherit in equal parts [Art. 4. The omitted compulsory heir must be living
846, CC] at the time of the testator’s death or must
2. If the institution pertains to some heirs at least have been conceived before the
individually and others collectively, the testator’s death.
presumption is that all are individually
instituted [Art. 847, CC] No Preterition
3. If siblings are instituted (whether full or If the heir in question is instituted in the will but
half-blood), the presumption is that the the portion given to him by the will is less than
inheritance is to be distributed equally his legitime – there is no preterition. [Reyes v.
[Art. 848, CC]. This is different from the Barretto-Datu, G.R. No. L-17817 (1967)]
rules of distribution in intestate
succession. If the heir is given a legacy or devise – there is
4. If parents and children are instituted, no preterition. [Aznar v. Duncan, G.R. No. L-
they are presumed to have been 24365 (1966)]
instituted simultaneously and not
successively [Art. 849, CC] If the heir had received a donation inter vivos
from the testator – the better view is that there
Note: By “unknown,” the Code actually means is no preterition. The donation inter vivos is
persons who could not be ascertained; a treated as an advance on the legitime under
disposition in favor of a stranger is valid Articles 906, 909, 910 and 1062.
[Tolentino].
The remedy, if the value of inheritance, legacy
or devise, or donation inter vivos is only for
completion of his legitime under Articles 906
and 907.
Page 222 of 532

Distinguished from Disinheritance 3. Substitution of heirs

Preterition Disinheritance
• Tacit • Express Substitution - the appointment of another heir,
deprivation of a deprivation of a so that he may enter into the inheritance in
compulsory compulsory heir default of the heir originally instituted [Art. 857,
heir of his of his legitime CC].
legitime • Always voluntary
• May be • For some legal The substitute shall be subject to the same
voluntary but cause charges and conditions imposed upon the
the • If the instituted heir, unless the testator has
presumption of disinheritance is expressly provided the contrary, or the charges
law is that it is valid, the or conditions are personally applicable only to
involuntary compulsory heir the heir instituted [Art. 862, CC].
• Law presumes disinherited is
there has been totally excluded Kinds of Substitution
merely from the
oversight or inheritance. In 1. BRIEF OR COMPENDIOUS [Art. 860,
mistake on the case of invalid CC]
part of the disinheritance,
testator the compulsory Brief – Two or more persons were
• Since heir is merely designated by the testator to substitute
preterition restored to his for only one heir
annuls the legitime
institution of Compendious – One person is
heirs, the designated to take the place of two or
omitted heir more heirs
gets not only
his legitime but 2. RECIPROCAL [Art. 861, CC]
also his share
in the free If the heirs instituted in unequal shares
portion not should be reciprocally substituted, the
disposed of by substitute shall acquire the share of the
way of legacies heir who dies, renounces, or is
and devises incapacitated, unless it clearly appears that
the intention of the testator was otherwise.
Effects of Preterition [Art. 854, CC] If there is more than one substitute, they
1. The institution of the heir is annulled. shall have the same share in the
2. Devises and legacies shall remain valid substitution as the institution.
as long as they are not inofficious.
3. If the omitted compulsory heir should Example (only 1 substitute): If two heirs
die before the testator, the institution are reciprocally substituted, then if one of
shall be effective, without prejudice to them dies before the testator dies,
the right of representation. renounces, or turns out to be incapacitated,
the other will get his share, regardless of
When there are no devises and legacies, whether or not their shares are equal.
preterition will result in the annulment of the will
and give rise to intestate succession [Neri v. Example (more than 1 substitute): A is
Akutin, G.R. No. L-47799 (1941)]. instituted to 1/3, B to 1/6, and C to ½. If C
Page 223 of 532

dies before the testator, renounces or turns In the absence of an obligation on the part of
out to be incapacitated, then the other two the first heir to preserve the property for the
will get his shares in the same proportion second heir, there is no fideicommissary
as in the institution. A will get twice as much substitution. [PCIB v. Escolin, G.R. Nos. L-
as B (because his share of 1/3 in the 27860 and L-27896 (1974)]
institution is twice the size of B’s share of
1/6) Effects of predecease of the first
heir/fiduciary or the second
3. SIMPLE SUBSTITUTION [Art. 859, heir/fideicommissary
CC]
Situation 1: If the heir dies followed by the
The testator may designate one or more second heir, then the testator dies, who will
persons to substitute the heir/s instituted in inherit? The legal heirs. There is no
case the heirs should: fideicommissary substitution because first and
a. die before him (predecease), second heirs are not living at the time of the
b. should not wish to accept the testator’s death [Art. 863, CC].
inheritance (repudiation), or
c. should be incapacitated to accept the Situation 2: The testator dies first followed by
inheritance (incapacitated). the second heir. The first heir survived them but
subsequently dies, who will inherit? The SH
4. FIDEICOMMISSARY SUBSTITUTION and his heirs under Art. 866, CC. This is
because the SH passes his rights to his own
The testator institutes an heir with an heirs when he dies before FH.
obligation to preserve and to deliver to
another the property so inherited. The heir Situation 3: If the first heir dies, followed by the
instituted to such condition is called the testator, then the second heir, who will inherit?
First Heir or the Fiduciary Heir; the one to No specific provision in law, but SH inherits
receive the property is the because the T intended him to inherit.
Fideicommissary or the Second Heir [Art.
863, CC]. 4. Conditional testamentary
Requisites [Arts. 863-865, CC] dispositions and
a. A Fiduciary or first heir instituted is testamentary dispositions
entrusted with the obligation to with a term
preserve and to transmit to a
Fideicommissary Substitute or second 3 Kinds of Testamentary Disposition
heir the whole or part of the inheritance. a. Conditional [Art. 871, CC]
b. The substitution must not go beyond b. Dispositions with a term [Art. 885, CC]
one degree from the heir originally c. Dispositions with a mode/modal
instituted. dispositions [Art. 882, CC]
c. The Fiduciary Heir and the
Fideicommissary are living at the time
of the death of the testator.
d. The fideicommissary substitution must
be expressly made.
e. The fideicommissary substitution is
imposed on the free portion of the
estate and never on the legitime
Page 224 of 532

CONDITIONAL DISPOSITIONS Casual or mixed

Casual Mixed
Prohibited conditions: (considered as not Fulfillment depends
imposed) Fulfillment depends partly on the will of
a. Any charge, condition or substitution on chance or the will the heir and partly on
whatsoever upon the legitimes [Art. of a third person. chance or the will of
872, CC] a third person.
b. Impossible and illegal conditions [Art.
873, CC] General rule: May be fulfilled at any time
c. Absolute condition not to contract a first (before or after testator’s death), unless
marriage [Art. 874, CC] testator provides otherwise.
d. Absolute condition not to contract a
subsequent marriage unless imposed Exception: If already fulfilled at the time of
on the widow or widower by the execution of will:
deceased spouse, or by the latter’s a. If testator unaware of the fact of fulfillment
ascendants or descendants [Art. 874, – deemed fulfilled
CC] b. If testator aware:
e. Scriptura captatoria or legacy-hunting ● can no longer be fulfilled again:
dispositions - dispositions made upon deemed fulfilled
the condition that the heir shall make ● can be fulfilled again: must be fulfilled
some provision in his will in favour of again.
the testator or of any other person [Art.
875, CC] Constructive Compliance:
a. If casual – not applicable
Effect: Entire disposition is void. b. If mixed – applicable only if dependent
partly on the will of a third party not
POTESTATIVE, CASUAL, AND MIXED interested.
CONDITIONS
Dispositions with a Term
Potestative Conditions A term may either be suspensive or resolutory.
Depends solely on the will of the heir Suspensive Resolutory
Before the arrival of Before the arrival of
General rule: Must be fulfilled as soon as the the term, the property the term, the
heir learns of the testator’s death. should be delivered to property should be
the legal or intestate delivered to the
Exception: If the condition was already heirs. instituted heir.
complied with at the time the heir learns of the A caución muciana
testator’s death; or if the condition is of such a has to be posted by No caución muciana
nature that it cannot be fulfilled again. the legal or intestate required.
heirs.
If there is constructive compliance, it is deemed
fulfilled. Modal Dispositions
Dispositions with an obligation imposed upon
the heir, without suspending the effectivity of
the institution, as a condition does.
A mode functions similarly to a resolutory
condition.
Page 225 of 532

In modal institutions, the testator states: legitimate children and their

● the object of the institution, descendants)
● the purpose or application of the b. Illegitimate Parents with respect to their
property left by the testator, or Illegitimate Children. (They will inherit
● the charge imposed by the testator only in default of the illegitimate and
upon the heir [Rabadilla v. CA, G.R. legitimate children and their respective
No. 113725 (2000)]. descendants).
Note that other illegitimate ascendants are not
CAUCIÓN MUCIANA included.
A security to guarantee the return of the value 3. Concurring: Those who succeed together
of property, fruits, and interests, in case of with the primary or the secondary
contravention of condition, term or mode compulsory heirs:
● Surviving Spouse
Instances when it is needed: ● Illegitimate Children and Illegitimate
1. Suspensive term [Art. 885,CC] Descendants
2. Negative potestative condition - when
the condition imposed upon the heir is SPECIFIC RULES ON LEGITIME
negative, or consists in not doing or not 1. Direct Descending Line
giving something [Art. 879, CC] a. Rule of Preference between lines [Arts.
3. Mode [Art. 882, par. 2, CC] 978 and 985, CC]
● Those in the direct descending line
5. Legitime shall exclude those in the direct
ascending and collateral lines; and
It is that part of the testator’s property which he ● Those in the direct ascending line
cannot dispose of because the law has shall, in turn, exclude those in the
reserved it for his compulsory heirs. [Art. 886, collateral line.
CC] ● Rule of Proximity [Art. 926, CC]:
The relative nearest in degree
Every renunciation or compromise as regards excludes the farther one.
a future legitime between the person owing it b. Right of representation ad infinitum in
and his compulsory heirs is void, and the latter case of predecease, incapacity, or
may claim the same upon the death of the disinheritance [Arts. 972 and 992, CC]
former; but they must bring to collation ● For decedents who are Legitimate
whatever they may have received by virtue of Children, only the Legitimate
the renunciation or compromise [Art. 905, CC]. Descendants are entitled to right of
representation.
Classes of Compulsory Heirs [Art. 887, CC] ● For decedents who are Illegitimate
1. Primary: Legitimate Children and Children, both the Legitimate and
Legitimate Descendants with respect to the Illegitimate Descendants can
their Legitimate Parents and Ascendants represent, only with respect to the
2. Secondary: Those who succeed only in decedent’s illegitimate parents.
the absence of the primary compulsory c. If all the Legitimate Children repudiate
heirs: their legitime, the next generation of
a. Legitimate Parents and Legitimate Legitimate Descendants may succeed
Ascendants, with respect to their in their own right.
Legitimate Children and Descendants. 2. Direct Ascending Line
(They will inherit only in default of a. Rule of division between lines
● The father and the mother shall
inherit equally if both living. One
Page 226 of 532

parent succeeds to the entire Completion of the

Partial impairment
estate of the child if the other legitime [Art. 906, CC]
parent is dead [Art. 986, CC]. Impairment by Collation – reduction
● In default of the mother and the inofficious of donations [Arts.
father, the ascendants nearest in donations 771 and 911, CC]
degree will inherit [Art. 987, CC].
● If there is more than one relative of Method of Reduction [Art. 911, CC]
the same degree but of different Order of priorities to be observed in the
lines, one half will go to the paternal reduction [Balane]:
ascendants and the other half to 1. Reduce pro rata the non-preferred legacies
the maternal ascendants [Art. 987, and devises, and the testamentary
CC]. dispositions to heirs
b. Rule of equal division 2. Reduce pro rata the preferred legacies and
● The relatives who are in the same devises
degree shall inherit in equal shares 3. Reduce the donations inter vivos according
[Art. 987, CC]. to the inverse order of their dates (oldest is
the most preferred)
Steps in Determining the Legitimate of
Compulsory Heirs [Arts. 908-910, CC] How are Devises and Legacies with usufructs,
life annuities and pensions reduced?
Value of the Estate 1. If the value of these grants exceeds the
- Taxes free portion, it impairs the legitimes and
- Less Liabilities should be reduced
NET ESTATE 2. The compulsory heir has 2 options:
+ collationable donations a. Delivering to the devisee or legatee the
THEORETICAL* HEREDITARY ESTATE free portion
b. Complying with the testamentary
*Because this amount is what the legitime will provision
be based on, but the actual amount available
for physical distribution is the net estate Note: If the devise subject to reduction should
consist of real property, which cannot be
Remedy of a Compulsory Heir in Case of conveniently divided, it shall go to the devisee
Impairment of Legitime if the reduction does not absorb ½ of its value;
Extent and Nature and in a contrary case, to the compulsory heirs;
Remedy
of Impairment but the former and the latter shall reimburse
Total omission of a each other in cash for what respectively
Annulment of
compulsory heir belongs to them.
institution and
who is a direct
reduction of legacies
descendant or The devisee who is entitled to a legitime may
and devises [Art. 854,
ascendant retain the entire property, provided its value
CC]
(preterition) does not exceed that of the disposable portion
Reduction of the and of the share pertaining to him as a legitime
Testamentary
disposition insofar as [Art. 912, CC].
dispositions
they may be
impairing or
inofficious or If the heirs or devisees do not choose to avail
diminishing the
excessive [Art. 907, themselves of the right granted by the
legitime
CC] foregoing, any heir or devisee who did not have
such right may exercise it; should the latter not
Page 227 of 532

make use of it, the property shall be sold at 2. Prepositus – the first transferee of the
public auction at the instance of any one of the reserved property
interested parties [Art. 913, CC]. 3. Reservista – an ascendant of the
Prepositus other than the Origin or Mediate
Note: Rule on Reduction of Legitimes (Shares) Source; the one obligated to reserve the
Legitimate Never reduced, they are property
children primary and preferred 4. Reservatarios – within the 3rd degree of
Surviving consanguinity from the Prepositus
Never reduced
spouse [Cabardo v. Villanueva, G.R. No. L-19003
Subject to reduction, pro rata, (1922)] belonging to the line from which the
without preference (you get property came
Illegitimate
the remaining portion, divide
children Requisites for Reserva Troncal [Chua v. CFI,
it by the number of illegitimate
children) G.R. No. L-29901 (1977)]:
1. That the property was acquired by a
RESERVA TRONCAL descendant (Prepositus) from an
The ascendant who inherits from his ascendant or from a brother or sister
descendant any property which the latter may (Origin or Mediate Source) by gratuitous
have acquired by gratuitous title from another title,
ascendant, or a brother or sister, is obliged to 2. That the Prepositus died without
reserve such property as he may have (legitimate*) issue,
acquired by operation of law for the benefit of 3. That the property is inherited by another
relatives who are within the third degree and ascendant (Reservista) by operation of
who belong to the line from which said property law, and
came [Art. 891, CC]. 4. That there are relatives within the 3rd
degree (Reservatarios) belonging to the
Concept of Reserva Troncal line from which said property came.
1. A descendant (prepositus) inherits or
acquires property from an ascendant or Note: Only legitimate descendants will prevent
from a brother or sister (origin or mediate the property from being inherited by the
source) by gratuitous title. legitimate ascending line by operation of law
2. The same property is inherited by another [Balane]
ascendant (reservista) or is otherwise
acquired by him by operation of law from Three transmissions involved: [Balane]
the said descendant (prepositus). a. 1st transfer – by gratuitous title, from a
3. The said ascendant (reservista) must person to his descendant, brother or sister
reserve the property for the benefit of the b. 2nd transfer – by operation of law, from the
relatives of the deceased descendant transferee in the 1st transfer to another
within the third civil degree and who belong ascendant. This creates the reserva.
to the line from which the said property c. 3rd transfer – from the transferee in the
came (reservatarios). second transfer to the relatives
Parties: [Balane] The 1st transfer from the origin does not
1. Origin or Mediate Source – either an make the property reservable.
ascendant of any degree of ascent or a The 1st transferee owns the property he
brother or sister of the Prepositus; receives in full and in fee simple. If he sells the
responsible for the 1st transfer property, then there is no reserva that can be
created. It is at this point, however, that a
reserva may ignite, because if the 1st
Page 228 of 532

transferee has no legitimate descendants, the estate by operation of law as legitime and
property, by operation of law, will go back up to the other half by testamentary disposition
his ascendant.
Two Views
The 2nd transferee is the reservor. ● Reserva Maxima: As much of the
The reservor can enjoy the property, but his potentially reservable property as possible
title is subject to a double resolutory condition. must be deemed included in the part that
So, if he dies, you need to ask 2 questions: passes by operation of law (maximizing the
a. Does the prepositus have relatives? scope of the reserva)
b. Are these relatives qualified to inherit ● Reserva Minima: every single property in
from the prepositus? the prepositus’s estate must be deemed to
If the answers are YES: then a reserva pass, partly by will and partly by operation
occurs. of law, in the same proportion that the part
given by will bears to the part not so given
Note: The reservatarios actually inherit, by [Balane]
delayed intestacy, from the prepositus.
Either view is defensible, but Reserva Minima
Nature of the reservista’s right: [Edroso v. finds wider acceptance in the Philippines.
Sablan, G.R. No. 6878 (1913)] [Balane]
1. The reservista’s right over the reserved
property is one of ownership Extinguishment of the Reserva
2. The right of ownership is subject to a 1. Loss of the reservable property
resolutory condition, i.e. the existence of 2. Death of the reservista
reservatarios at the time of the reservista's 3. Death of all the relatives within the third
death degree belonging to the line from which the
3. The right of ownership is alienable, but property came
subject to the same resolutory condition. 4. Renunciation by the reservatarios, but a
4. The reservista’s right of ownership is future reservatario is not bound by such
registrable. renunciation → a conditional
extinguishment.
Nature of reservatarios’ right: [Sienes v. 5. Prescription, when the reservista holds the
Esparcia, G.R. No. L-12957 (1961)] property adversely against the
1. The reservatarios have a right of reservatarios, as free from reservation
expectancy over the property.
2. The right is subject to a suspensive DISINHERITANCE
condition, i.e. the expectancy ripens into A compulsory heir may, in consequence of
ownership if the reservatarios survive the disinheritance, be deprived of his legitime, for
reservistas. causes expressly stated by law [Art. 915,
3. The right is alienable but subject to the CC].
same suspensive condition.
4. The right is registrable. Effect of Disinheritance
A disinherited heir is totally excluded from the
Reserva Minima vs. Reserva Maxima inheritance. This means that he forfeits not only
1. The prepositus acquired property his legitime, but also his intestate portion (if
gratuitously from an ascendant, a brother any), and any testamentary disposition made in
or sister a prior will of the disinheriting testator [Balane].
2. In his will, he institutes as his heir his
ascendant (who is also a compulsory heir)
such that the ascendant receives half of the
Page 229 of 532

Requisites of a Valid Disinheritance 2. subsequent will

a. Heir disinherited must be designated by reconciliation is
name or in such a manner as to leave no not enough
room for doubt as to who is intended to be
Overlap of Rules:
disinherited. Remedy
b. It must be for a cause designated by law.
1. If the offended
c. It must be made in a valid will. party does not
d. It must be made expressly, stating the
make a will
cause in the will itself. subsequent to
e. The cause must be certain and true, and
the occurrence
must be proved by the interested heir if the of the cause
person should deny it.
• Unworthines
f. It must be unconditional.
s sets in
g. It must be total.
• Written
condonation
Note: The burden of proving the truth of the
is necessary
cause for disinheritance shall rest upon the
to restore
other heirs of the testator, if the disinherited
2. If the offended
heir should deny it [Art. 917, CC].
party makes a If he did not know the
will subsequent cause
Causes Common to Disinheritance and
to the ● Unworthines
Unworthiness
occurrence of s stays
Article 1032 enumerates five acts of
the cause
unworthiness which likewise constitute
• If he knew
grounds to disinherit a compulsory heir.
the cause
• If he
The effect of the concurring causes of
disinherits -
unworthiness and grounds for disinheritance is
Art 922
as follows: If the testator failed to disinherit the
• If he
offender, the law nonetheless intervenes by
institutes or
excluding the offender from the inheritance of
pardons the
the testator or the decedent by reason of
offender
unworthiness.
• Restored to
How do you reconcile unworthiness and capacity
disinheritance as regards Restoration to • If will silent –
Capacity? unworthines
Under the rules on s stays
Disinheritance Under the rules on
– Unworthiness – Modes of Revocation of Disinheritance
Note: this is Note: this is by a. Reconciliation [Art. 922, CC]
expressly made by operation of law b. Subsequent institution of the
testator disinherited heir
c. Nullity of the will which contains the
A subsequent Either: disinheritance.
reconciliation is 1. written pardon,
enough or Note: The moment that testator uses one of the
acts of unworthiness as a cause for
disinheritance; he thereby submits it to the
Page 230 of 532

rules on disinheritance. Thus, reconciliation LEGACIES AND DEVISES

renders the disinheritance ineffective.
Legacy Devise
RECONCILIATION [ART. 922, CC] A gift of personal
A gift of real property
property given in a
given in a will
Effect of Reconciliation between Offender will
and Offended Person: It is bequeathed It is devised
● If no disinheritance has been made yet,
the offended person will be deprived of Persons Charged with the Duty to Give
his right to disinherit. Legacies and Devises in a Will
● If disinheritance has been effected, it a. Compulsory heir, provided, their legitimes
will be rendered ineffectual. are not impaired [Art. 925, CC]
b. Voluntary heir
Rights of Descendants of Person c. Legatee or devisee can be charged with
Disinherited [Art. 923, CC] the duty of giving a sub-legacy or sub-
Disinheritance gives rise to the right of devise but only to the extent of the value of
representation in favor of the children and the legacy or devise given him [Art. 925,
descendants of the disinherited person with CC]
respect to his legitime. d. The estate represented by the executor
or administrator, if no one is charged with
INEFFECTIVE DISINHERITANCE [Art. 918, this duty to pay or deliver the legacy or
CC] devise in the will
Instances of Ineffective disinheritance:
a. There is no specification of the cause. If there is an administration proceeding, it
b. The cause is not proved. constitutes a charge upon the estate. If there
c. The cause is not among those is no administration proceeding, it is a charge
specified in the provisions. upon the heirs.
Effect of Ineffective Disinheritance: if the Validity and Effect of Legacy or Devise

disinheritance lacks one or other of the Legacy or Devise of a thing owned in
requisites mentioned in this article, the heir in part by the testator [Art. 929, CC]
question gets his legitime [Balane]. The legacy or devise shall be understood to
be limited to such part or interest
Ineffective If testator expressly declares
Preterition
Disinheritance Exception that he gives the thing in its
Person disinherited entirety.
Person omitted must
may be any
be a compulsory heir
compulsory Legacy or Devise of a thing belonging to
in the direct line
heir another [Art. 930, CC]
Only annuls the Testator erroneously
institution in so far believed that the
as it Annuls the entire Void
property belonged to
prejudices the institution of heirs him
person The thing
disinherited bequeathed
Effective
afterwards becomes
his by whatever title
Page 231 of 532

Valid – estate must Revocation of Legacies and Devises [Art.

Testator knew
try to acquire 957, CC]
property did not
property or else give a. Testator transforms the thing such that
belong to him
heir monetary value. it does not retain its original form or
denomination
Legacy of devise of a thing belonging to b. Testator alienates the thing by any title
the legatee or devisee or for any cause. Reacquisition of the
The thing already thing by the testator does not make the
belongs to the legatee or legacy or devise valid, unless it is
devisee at the time of the Ineffective effected by right of repurchase.
execution of the will [Art. c. Thing is totally lost during the lifetime or
932, CC] after the death of the testator
The thing is subject to an d. Other causes: nullity of will, non-
Valid only as to compliance with suspensive condition,
encumbrance or interest
the interest or sale of the thing to pay the debts of the
of another person [Art.
encumbrance deceased during the settlement of his
932, CC]
Legatee or devisee estate.
subsequently alienates Ineffective
the thing [Art. 933,CC]
After alienating the thing,
the legatee or devisee
subsequently reacquires Ineffective
it gratuitously [Art. 933,
CC]
Legatee or
After alienating the thing, devisee can
the legatee or devisee demand
acquires it by onerous reimbursement
title [Art. 933, CC] from the heir or
estate
Delivery of Legacy/Devise [Art. 951, CC]

The very thing bequeathed shall be delivered
and not its value
a. With all its accessions and accessories
b. In the condition in which it may be upon
the death of the testator
c. Legacies of money must be paid in
cash
Effect of ineffective legacies or devises

[Art. 956, CC]
In case of repudiation, revocation or incapacity
of the legatee or devisee, the legacy or devise
shall be merged with the mass of the hereditary
estate, except in cases of substitution or
accretion.
Page 232 of 532

SUMMARY OF LEGITIMES OF r
COMPULSORY HEIRS redu
Legend: ction
LC – legitimate ILC – illegitimate SS – surviving LP – legitimate proILP – illegitimate
children children spouses parents rata
parents
beca
LC LP use
Surv
and and I shar
iving
Desce SS ILC Asce L e of
Rela
ndant ndant P SS is
tives
s s given
½ of prefe
the renc
LC estate e
alon in ½ of
e equal 2 or the Sam
½
portion more estate e as
shar
s LC, in shar
e of 1
¼ of SS, equal e of 1
LC
the ILC portion LC
estat s
e LP
½ of take alon ½
1 LC,
the n e
SS
estate from ¼ in
the LP, equal
½
free ILC porti
porti ons
on LP,
¼ ½
½ of SS
the Sam LP,
2 or
estate e SS, 1/8 ¼ ½
more
in porti ILC
LC,
equal on as ½ in
SS ILC
portion 1 LC equal
alon
s porti
e
½ of ons
the 1/3 in
½
estate ILC, equal
LC, shar 1/3
in SS porti
ILC e of 1
equal ons
LC
portion GR:
s ½
½
shar SS Exce
¼
e of 1 alon ption
1 LC, (pref
LC e :
SS, ½ erred
marri
ILC over
N.B. age
ILC)
May in
suffe
Page 233 of 532

artic
ulo
morti
s and
testa
tor
dies
withi
n 3
mont
hs
from
marri
age –
1/3
Exce
ption
to the
exce
ption
:
Have
been
living
toget
her
as
husb
and
and
wife
for
more
than
5
year
s–½
ILP
alon ½
e
ILP,
¼ ¼
SS
Summary of Causes of Disinheritance

Childr Paren Spo Unwort 919, 920, ,
Groun CC] CC] CC]
en and ts and use hiness
ds for
Desce Ascen [Art [Art.
disinhe
ndants dants . 1032,
ritance
[Art. [Art. 921 CC]
Page 234 of 532

Guilty Influenc
or e
Convict
ed of Unjustifi
Attempt ed
Against Refusal
the Life to ✓ ✓ ✓
of the Support
✓ ✓ ✓ ✓
Testato Testato
r, r
Spouse Convict
, ed of
Ascend Adulter
ant or y or
Descen Concub
dant inage
Accuse with ✓ ✓ ✓
d Spouse
Testato of
r or Testato
Decede r or
nt of Decede
Crime nt
Punish Maltrea
able by tment of
Impriso ✓ ✓ ✓ ✓ testator
nment by ✓
of 6 Word
years or and
more, Deed
and Leading
Found a
Groundl Dishon
ess or orable ✓
False or
Causes Disgrac
testator eful Life
or Convicti
decede on of
nt to Crime
Make a which
Will or carries
Change ✓ ✓ ✓ ✓ ✓
the
one by penalty
Fraud, of Civil
Violenc Interdict
e, ion
Intimida Abando
tion, or
nment ✓ ✓
Undue of
Page 235 of 532

Childre One
n or Month
Inducin Unless
g Authorit
Childre ies
n to Have
Live Already
Corrupt Taken
and Action
Immora Force,
l Life or Violenc
Against e,
Attempt Intimida
ed tion, or
Virtue Undue
Loss of Influenc
Parenta e to
l ✓ ✓ Prevent
Authorit Another
y from
Attempt Making
✓
by One a Will or
Parent Revoki
Against ng One
the Life Already
of the Made or
Other Who
✓ Suppla
Unless
there is nts or
Reconc Alters
iliation the
Betwee Latter’s
n Will
Parents Falsifie
Spouse s or
Has Forges
Given Suppos
✓
Cause ed Will
✓ ✓
for of
Legal Decede
Separat nt
ion
Failure Different Objects of Legacies and Devises
to [Art. 934-944, CC]
Report Objects of
Violent Legacy or Effect
Death ✓ Devise
of Thing
Decede pledged or ● Estate is obliged to
nt mortgaged to pay the debt
Within secure a debt
Page 236 of 532

● Other charges pass ● Only the pledge is

to the legatee or extinguished; the
Thing
devisee debt remain
pledged by
● Effective only as ● Shall not be applied
debtor to a
regards the credit or to his credit unless
creditor
debt existing at the the testator so
time of the testator’s declares
death ● If testator does not
Credit or ● Legacy lapses if the really owe the debt,
remission or testator later brings the disposition is
release of a action against the void
debt debtor ● If the order is to pay
Order of
● If generic, more than the debt,
payment of a
comprises all the excess is not
debt
credits/debts due
existing at time of ● This is without
execution of will prejudice to the
payment of natural
obligations
● The choice is with the heir, or the executor or

administrator
Alternative legacies and
● If the heir, legatee or devisee dies, the right passes to
devises
their heirs
● Once made, the choice is irrevocable
● Legacy is valid even if there are no things of the same
kind in the estate
Legacy of generic personal
● Devise of indeterminate real property valid only if there
property or indeterminate
are immovable property of the same kind in the estate
real property
● The choice belongs to the heir, legatee or devisee or the
executor or administrator
● Lasts until the legatee is of age or beyond the age of
majority in order that he may finish some professional,
vocational or general course provided he pursues his
Legacy of education course diligently
● If testator did not fix the amount, it is fixed in accordance
with the social standing and circumstances of the
legatee and the value of the estate
● Lasts during lifetime of legatee
● If the testator used to give the legatee a sum of money
for support, give the same amount unless it is markedly
Legacy of support disproportionate to the estate
● If testator did not fix the amount, it is fixed in accordance
with the social standing and circumstances of the
legatee and the value of the estate
Order of Payment in Case the Estate Is Not Sufficient to Cover All the Legacies and Devises
Art. 911: Order or Preference Art. 950
● Legitime of compulsory heirs ● Remuneratory legacy/devise
● Donations inter vivos ● Preferential legacy/devise
Page 237 of 532

● Preferential legacies or devises ● Legacy for support

● All other legacies or devises pro rata ● Legacy for education
● Legacy/devise of specific, determinate
thing which forms a part of the estate
● All others pro rata
Application
● When the reduction is necessary to ● When there are no compulsory heirs and
preserve the legitime of compulsory the entire estate is distributed by the
heirs from impairment whether there are testator as legacies or devises; or
donations inter vivos or not; or ● When there are compulsory heirs but
● When, although, the legitime has been their legitime has already been provided
preserved by the testator himself there for by the testator and there are no
are donations inter vivos. donations inter vivos.
Art. 911, CC governs when there is a conflict Art. 950, CC governs when the question of
between compulsory heirs and the devisees and reduction is exclusively among legatees and
legatees. devisees themselves.
f. If the suspensive condition attached to the

C. LEGAL OR INTESTATE institution of the heir does not happen or is
SUCCESSION not fulfilled
g. If the heir dies before the testator
h. If the heir repudiates the inheritance, there
1. General Provisions being no substitution, and no right of
accretion takes place
Intestacy – that which takes place by i. When the heir instituted is incapable of
operation of law in default of compulsory and succeeding, except in cases provided in
testamentary succession. Not defined in the the Civil Code
Civil Code. j. Preterition – Intestacy may be total or
partial depending on whether or not there
Legal succession is a mode of transmission are legacies or devises [Balane]
mortis causa which takes place in the absence
of the expressed will of the decedent embodied Note: In all cases where there has been an
in a testament [Tolentino]. institution of heirs, follow the ISRAI order:
a. If the Institution fails, Substitution occurs.
Instances when Legal or Intestate b. If there is no substitute, the right of
Succession operates [Art. 960, CC] Representation applies in the direct
a. If a person dies without a will, or with a void descending line to the legitime if the
will, or will has subsequently lost its validity vacancy is caused by predecease,
b. When the will does not institute an heir incapacity, or disinheritance.
c. Upon the expiration of term, or period of c. The right of Accretion applies to the free
institution of heir [Balane] portion when the requisites in Art. 1016 are
d. Upon fulfillment of a resolutory condition present.
attached to the institution of heir, rendering d. If there is no substitute, and the right of
the will ineffective [Balane] representation or accretion is not proper,
e. When the will does not dispose of all the the rules on Intestate succession shall
property belonging to the testator. Legal apply.
succession shall take place only with
respect to the property which the testator
has not disposed (mixed succession)
Page 238 of 532

FUNDAMENTAL PRINCIPLES IN sisters, nephews, and nieces (BSNN) are

INTESTATE SUCCESSION excluded.
b. If one of the legitimate ascendants,
Rule of Preference between Lines illegitimate parents, legitimate children,
• Those in the direct descending line shall illegitimate children or surviving spouse
exclude those in the direct ascending and survives, the other collateral relatives and
collateral lines; the state are excluded.
• Those in the direct ascending line shall, c. If any of the heirs concur in legitimes, then
in turn, exclude those in the collateral line. they also concur in intestacy.
Rule of Proximity: The relative nearest in a. Relationship

degree excludes the farther one [Art. 962(1),
CC], saving the right of representation when it PROXIMITY OF RELATIONSHIP: determined
properly takes place. by the number of generations. Each generation
forms one degree [Art. 963, CC].
Rule of Equal Division
General Rule: The relatives who are in the Note: It is important to distinguish between
same degree shall inherit in equal shares [Arts. direct and collateral, as the direct has
962(2), 987 and 1006, CC]. preference over the collateral.
Exceptions [Balane] In a line, as many degrees are counted as there

1. Rule of preference between Lines are generations [Art. 966, CC].
2. Distinction between legitimate and
illegitimate filiation. The ratio under the Note: Descending line is preferred over
present law is 2:1 [Art. 983, in relation to ascending.
Art. 895 as amended by Art. 176, FC].
3. Rule of division by line in the ascending line Blood relationship is either full or half-blood
[Art. 987 (2), CC] [Art. 967, CC].
4. Distinction between full-blood and half-
blood relationship among brothers and Note: As among brothers and sisters and
sisters, as well as nephews and nieces [Art. nephews and nieces, there is a 2:1 ratio for full-
1006 and 1008, CC] blood and half-blood relatives. Direct relatives
5. Right of representation are preferred. But this distinction does not
apply with respect to other collateral relatives.
Rule of Barrier between the legitimate
family and the illegitimate family (the iron- Incapacity [Art. 968, CC]
curtain rule): The illegitimate family cannot General rule: If there are several relatives of
inherit by intestate succession from the the same degree, and one or some of them are
legitimate family and vice-versa. [Art. 992, CC] unwilling or incapacitated to succeed, his
portion shall accrue to the others of the same
Rule of Double Share for full blood degree.
collaterals: When full and half-blood brothers
or sisters, nephews or nieces, survive, the full Exception: When the right of representation
blood shall take a portion in the inheritance should take place.
double that of the half-blood [Arts. 895 and 983,
CC]. Note: This accretion in intestacy takes place in
case of predecease, incapacity, or renunciation
Note: among heirs of the same degree. The relatives
a. If one of the legitimate ascendants, must be in the same relationship because of
illegitimate parents, legitimate children or the Rule of Preference of Lines.
illegitimate children survives, the brother,
Page 239 of 532

REPUDIATION [Arts. 968-969, CC] Note: There is no representation to a devise or

There is no right of representation in a legacy.
repudiation. If the nearest relative/s
repudiates the inheritance, those of the A renouncer can represent, but cannot be
following degree shall inherit in their own right. represented. Rationale is found in Art. 971
which states that “The representative does not
In case of repudiation by all in the same succeed the person represented but the one
degree, the right of succession passes on the whom the person represented would have
heirs in succeeding degrees: descending line succeeded.”
first, ascending line next, and collateral line
next [Balane]. Representation in the Direct Descending
Line
Adoption [Art. 189, FC] Representation takes place ad infinitum in the
In adoption, the legal filiation is personal and direct descending line but never in the direct
exists only between the adopter and the ascending line [Art. 972, CC].
adopted. The adopted is deemed a legitimate
child of the adopter, but still remains as an General rule: Grandchildren inherit from the
intestate heir of his natural parents and other grandparents by right of representation, if
blood relatives. proper.
Note: Section 16 of the Domestic Adoption Act Exception: Whenever all the children
(RA 8552) provides that all legal ties between repudiate, the grandchildren inherit in their own
the biological parent(s) and the adoptee shall right because representation is not proper [Art.
be severed and the same shall then be vested 969, CC].
on the adopter(s).”
Representation in Collateral Line
b. Right of representation In the collateral line, representation takes place
only in favor of the children of the brothers or
Representation – right created by fiction of sisters (i.e., nephews and nieces) whether of
law, by virtue of which the representative is the full or half-blood [Art. 972, CC] and only if
raised to the place and the degree of the they concur with at least one.
person represented, and acquires the rights
which the latter would have if he were living or
if he could have inherited [Art. 970, CC]
Effect of representation
The representative heir acquires the rights
which the person represented would have if he
were living or if he could have inherited.
When it occurs
Representation is allowed with respect to
inheritance conferred by law (legitime and
intestate based on Art. 923)
It occurs only in the following instances:

(DIP)
a. Predecease of an heir
b. Incapacity or unworthiness
c. Disinheritance [Art. 923, CC]
Page 240 of 532

2. Order of Intestate Succession

Decedent is a Legitimate Decedent is an Illegitimate
Decedent is an Adopted Child
Child Child
Legitimate children or Legitimate children or Legitimate children or
descendants (LCD) descendants (LCD) descendants (LCD)
Legitimate parents or Illegitimate children or Illegitimate children or
ascendants (LPA) descendants (LPA) descendants (ICD)
Legitimate or illegitimate parents,
Illegitimate children or
Illegitimate parents (IP) or legitimate ascendants,
descendants (ICD)
adoptive parents
Surviving spouse (SS) Surviving spouse (SS) Surviving spouse (SS)
Brothers and sisters, Illegitimate brothers and sisters, Brothers and sisters, nephews,
nephews, nieces (BS/NN) nephews, nieces (IBS/NN) nieces (BS/NN)
Legitimate collateral
relatives within the 5th State
State
degree (C5)
State
RULES OF EXCLUSION AND CONCURRENCE IN INTESTATE SHARES

Intestate Heirs Excludes Excluded By Concurs With
Ascendants,
LC + LD No one SS + ILC
Collaterals and State
ILP, Collaterals and
ILC + D No one SS, LC, LP
State
LP + LA Collaterals and State LC ILC + SS
ILP Collaterals and State LC and ILC SS
Collaterals other than LC, ILC, LP, ILP,
SS siblings, nephews and No one Siblings, Nephews,
nieces, State Nieces
Siblings, Nephews, All other collaterals
LC, ILC, LP, ILP SS
Nieces and State
Other collaterals within Collateral more remote LC, ILC, LP, ILP and Collaterals in the same
5th degree in degree and State SS degree
State No one Everyone No one
Note: In partial intestacy, the testamentary dispositions can reduce the shares of intestate heirs,
provided that their legitimes, if they are also compulsory heirs, are not impaired. More specifically:
a. The law of legitimes must be brought into operation in partial intestacy.
b. If among the concurring intestate heirs there are compulsory heirs whose legal or intestate
portions exceed their respective legitimes, the amount of the testamentary disposition must be
deducted from the disposable portion, to be borne by all the intestate heirs in the proportions
that they are entitled to receive from such disposable portion as intestate heir.
c. If the legal or intestate share of a compulsory heir is equal to his legitime, then the amount of
the testamentary disposition must be deducted only from the legal or intestate shares of the
others.
d. If the testamentary dispositions consume the entire disposable portion, then the intestate heirs
who are compulsory heirs will get only their legitimes, and those who are not compulsory heirs
will get nothing [Tolentino].
Page 241 of 532

OUTLINE OF INTESTATE SHARES

a. Legitimate children only ● Divide entire estate equally among all legitimate children [Art. 979, CC]
● Legitimate children include an adopted child.
b. Legitimate children and ● Divide entire estate such that each illegitimate child gets ½ of what a
Illegitimate children legitimate child gets [Art. 983, CC and Art. 176, FC]
● Ensure that the legitime of the legitimate children are first satisfied.
c. Legitimate children and ● Divide entire estate equally between the legitimate children and the
surviving spouse surviving spouse, the latter deemed as one child. The same rule holds
where there is only one child.
d. Legitimate children, ● Divide the entire estate such that the surviving spouse is deemed one
Surviving spouse, and legitimate child and each illegitimate child getting ½ of what the legitimate
Illegitimate children child gets. [Art. 996, CC and Art. 176, FC]
● Ensure that the legitime of the legitimate children and the spouse are first
satisfied.
e. Legitimate parents only ● Divide the entire estate equally [Art. 985, CC].
f. Legitimate ascendants only ● Divide the entire estate equally but with the observance of the rule of
(excluding parents) division by line [Art. 987, CC].
g. Legitimate parents and ● Legitimate parents get ½ of the estate, illegitimate children get the other
illegitimate children ½ [Art. 991, CC].
h. Legitimate parents and ● Legitimate parents get ½ of the estate; The surviving spouse gets the
surviving spouse other ½ [Art. 997, CC].
i. Legitimate parents, ● Legitimate parents get ½ of the estate; surviving spouse and the
surviving spouse and illegitimate child each get ¼ each, the latter to share among themselves if
illegitimate children more than one [Art. 1000, CC].
j. Illegitimate children only ● Divide the entire estate equally [Art. 988, CC].
k. Illegitimate children and ● Illegitimate children get ½ of the estate; the surviving spouse gets the
surviving spouse other ½ [Art. 998, CC].
l. Surviving spouse only ● Entire estate goes to the surviving spouse [Art. 994/995, CC].
m. Surviving spouse and ● Illegitimate parents get ½ and the spouse gets the other ½ [by analogy
illegitimate parents with Art. 997, CC].
n. Surviving spouse and ● Surviving spouse gets ½ of the estate, while the rest gets the other ½ with
legitimate brothers and the nephews and nieces inheriting by representation if proper [Art. 1001,
sisters, nephews and nieces CC].
o. Surviving spouse and ● Surviving spouse gets ½ of the estate while the rest gets the other ½ with
illegitimate brothers and the nephews and nieces inheriting by representation, if proper; Note that
sisters, nephews and nieces all the other relatives should be “illegitimate” because of the iron-curtain
rule [Art. 994, CC].
p. Illegitimate parents only ● Entire estate goes to the illegitimate parents [Art. 993, CC].
q. Illegitimate parents and ● Illegitimate parents are excluded and do not inherit. For the rule on the
children of any kind respective shares of the children, see numbers 1, 2 or 10, whichever is
(whether legitimate or applicable.
illegitimate child)
r. Legitimate brothers and ● Divide the entire estate such that full-blood brothers/sisters gets a share
sisters only double the amount of a half-blood brother or sister [Art. 1004 and 1006,
CC].
s. Legitimate brothers and ● Divide the entire estate observing the 2 is to 1 ratio for full and half-blood
sisters, nephews and nieces relationships with respect to the brothers and sisters, with the nephews
and nieces inheriting by representation, if proper [Art. 1005 & 1008, CC].
t. Nephews and nieces only ● Divide the entire estate per capita, observing the 2 is to 1 ratio [Arts. 975
and 1008, CC].
u. Other collaterals [Arts. 1009 ● Divide entire estate per capita. Collateral relatives must be with the 5th
and 1010] degree of consanguinity.
● Note: the nearer relative excludes the more remote relatives.
v. State ● If there are no other intestate heirs, the State inherits the entire estate
through escheat proceedings [Art. 1011, CC].
Page 242 of 532

D. PROVISIONS COMMON TO If there was “earmarking” – there can be no

accretion.
TESTATE AND INTESTATE • What is “earmarking?” – when the whole
SUCCESSION has been subdivided into specific portions
1. Right of accretion Ex: Heir #1 was called to inherit the southern

part of Plot A, and Heir #2 was called to inherit
Definition of Accretion [Art. 1015, CC] the northern part of Plot A.
It is a right by virtue of which, when two or more
persons are called to the same inheritance, Among compulsory heirs, there can only be
devise or legacy, the part assigned to one who accretion with respect to the free portion. There
renounces or cannot receive his share or who can be no accretion with respect to the
died before the testator is added or legitimes [Arts. 1021 and 1018, CC].
incorporated to that of his co-heirs, co-
devisees, or co-legatees. The heirs to whom the portion goes by the right
of accretion take it in the same proportion that
Basis they inherit [Art. 1019, CC].
The right of accretion is based upon the
presumed will of the decedent. Thus, the Exceptions [Balane]
testator can expressly provide that there shall a. In testamentary succession, if the testator
be no accretion among persons who would provides otherwise
otherwise be entitled thereto. Conversely, the b. If the obligation is purely personal, and
testator may validly provide for accretion in a hence intransmissible
case where no accretion would take place
under the provisions of the law [Tolentino]. The heirs to whom the inheritance accrues
shall succeed to all the rights and obligations
Requisites [Tolentino] which the heir who renounced or could not
a. Unity of object and plurality of subjects (two receive it would have had [Art. 1020, CC].
or more persons are called to the same In testamentary succession, when the right of
inheritance or same portion thereof) accretion does not take place, the vacant
b. Vacancy of share (one of the heirs dies portion of the instituted heirs, if no substitute
before the testator, or renounces the has been designated, shall pass to the legal
inheritance, or is incapacitated) heirs of the testator, who shall receive it with
the same charges and obligations [Art. 1022,
When does Accretion Occur? CC].
Accretion happens when there is repudiation,
incapacity, or predecease of an heir. Accretion shall also take place among
devisees, legatees and usufructuaries under
It is the mechanism where the share of an heir the same conditions established for heirs [Art.
is increased by vacant shares vacated by heirs 1023, CC]
who cannot inherit for various reasons.
(Rationale: the decedent intended to give the

property to nobody but the co-heirs.)
There can only be accretion if there is an

institution of heirs with respect to specific
properties [Art. 1016, CC]. In other words, both
heirs were called to inherit the same whole.
Page 243 of 532

Effect of Predecease, Incapacity, institution to which such priest or minister

Disinheritance or Repudiation may belong;
Testamentary e. Attesting witness to the execution of a will,
Intestate
Cause of Succession the spouse, parents, or children, or anyone
Successio
Vacancy Free claiming under such witness, spouse,
Legitime Portion n
Representati Accretion Representati
parents, or children;
on Intestate on f. Physician, surgeon, nurse, health officer or
Predecease
Intestate Successi Intestate druggist who took care of the testator
Succession on Succession
during his last illness.
Representati Accretion Representati
on Intestate on
Incapacity
Intestate Successi Intestate Based on morality or public policy [Arts.
Succession on Succession 739 and 1028, CC]
Representati
Disinheritan on a. Those made in favor of a person with whom
- -
ce Intestate the testator was guilty of adultery or
Succession concubinage at the time of the making of
Intestate
Repudiation
Succession
Accretion Accretion the will.
b. Those made in consideration of a crime of
which both the testator and the beneficiary
2. Capacity to Succeed by Will have been found guilty.
or Intestacy c. Those made in favor of a public officer or
his spouse, descendants and ascendants,
Requisites for Capacity to Succeed by Will by reason of his public office.
or by Intestacy: [Art. 1024 – 1025, CC]
a. The heir, legatee or devisee must be living Based on acts of unworthiness [Art. 1032,
or in existence at the moment the CC]
succession opens; [Art. 1025, CC] and The following are incapable of succeeding by
b. He must not be incapacitated or reason of unworthiness:
disqualified by law to succeed [Art. 1024, a. Parents who have abandoned their
par.1, CC]. children or induced their daughters to lead
a corrupt or immoral life, or attempted
PERSONS INCAPABLE OF SUCCEEDING against their virtue;
[Arts. 1027, 739, 1032, CC] b. Any person who has been convicted of an
Based on undue influence or interest [Art. attempt against the life of the testator, his
1027, CC] or her spouse, descendants, or
a. Priest who heard the last confession of the ascendants;
testator during his last illness, or the c. Any person who has accused the testator
minister of the gospel who extended of a crime for which the law prescribes
spiritual aid to him during the same period; imprisonment for six years or more, if the
b. Individuals, associations and corporations accusation has been found groundless;
not permitted by law to inherit; d. Any heir of full age who, having knowledge
c. Guardian with respect to testamentary of the violent death of the testator, should
dispositions given by a ward in his favor fail to report it to an officer of the law within
before the final accounts of the a month, unless the authorities have
guardianship have been approved, even if already taken action; this prohibition shall
the testator should die after the approval not apply to cases wherein, according to
thereof; except if the guardian is his law, there is no obligation to make an
ascendant, descendant, brother, sister, or accusation;
spouse; e. Any person convicted of adultery or
d. Relatives of the priest or minister of the concubinage with the spouse of the
gospel within the fourth degree, the church, testator;
order, chapter, community, organization, or
Page 244 of 532

f. Any person who by fraud, violence, c. If the institution is conditional – when the
intimidation, or undue influence should condition is complied with
cause the testator to make a will or to
change one already made; 3. Acceptance and repudiation
g. Any person who by the same means
prevents another from making a will, or of the inheritance
from revoking one already made, or who
supplants, conceals, or alters the latter's Definition of Acceptance
will; The act by which the person called to succeed
h. Any person who falsifies or forges a by universal title either by the testator or by law
supposed will of the decedent. manifests his will of making his own the
universality of the rights and obligations which
Pardon of Acts of Unworthiness are transmitted to him [Tolentino].
Express Implied
Made by the Definition of Repudiation
Effected when the The manifestation by an heir of his desire not
execution of a
testator makes a will to succeed to the rights and obligations
document or any
instituting the transmitted to him [Tolentino].
writing in which the
unworthy heir with
decedent condones
knowledge of the Requisites [Art. 1043, CC]
the cause of
incapacity
cause of incapacity a. Certainty of death of the decedent
b. Certainty of the right to the inheritance
Revoked when the
Cannot be revoked testator revokes the
FORMS OF ACCEPTANCE [Arts. 1049 –
will or the institution
1050, CC]
a. Express Acceptance – one made in a
Effect of Pardon
public or private document [Art. 1049, par.
Once the act of unworthiness has been
1, CC]
pardoned, whether expressly or tacitly, the heir
b. Tacit Acceptance – one resulting from
is restored to full capacity to succeed the
acts by which the intention to accept is
decedent, as if the cause of unworthiness had
necessarily implied or from acts which one
never existed.
would have no right to do except in the
capacity of an heir.
Unworthiness vs. Disinheritance
c. Implied Acceptance - Within thirty days
Unworthiness Disinheritance
after the court has issued an order for the
Disinheritance is the
Unworthiness distribution of the estate in accordance with
act by which a
renders a person the Rules of Court, the heirs, devisees and
testator, for just
incapable of legatees shall signify to the court having
cause, deprives a jurisdiction whether they accept or
succeeding to the
compulsory heir of his
succession, whether repudiate the inheritance; if they do not do
right to the legitime so within that time, they are deemed to
testate or intestate
[Art. 815, CC]
have accepted the inheritance [Art. 1057,
CC].
Determination of Capacity [Tolentino]
General Rule: At the death of the decedent [Art. An inheritance is deemed accepted:
1034, CC] a. If the heir sells, donates, or assigns his
right to a stranger, or to his co-heirs, or to
Exceptions any of them – the heir must first accept the
a. Those falling under 2, 3, and 5 of Art. 1032 inheritance before he can dispose of it.
– when the final judgment is rendered b. If the heir renounces the same, even
b. Those falling under 4 of Art. 1032 – when though gratuitously, for the benefit of one
the month allowed for the report expired
Page 245 of 532

or more of his co-heirs – this is actually a 4. Collation

donation. The heir must first accept the
inheritance before he can donate it. Concept of Collation
c. If the heir renounces it for a price in favor To collate is to bring back or to return to the
of all his co-heirs indiscriminately – this is hereditary mass in fact or by fiction, property
actually an onerous disposition. The heir which came from the estate of the decedent
must first accept the inheritance before he during his lifetime, by donation or other
can dispose of it. gratuitous title but which the law considers as
an advance from the inheritance [Art. 1061,
Note: But if the renunciation should be CC].
gratuitous, and in favor of all the co-heirs (to
whom the portion renounced should devolve by It is the act by virtue of which, the compulsory
accretion), the inheritance shall not be deemed heir who concurs with other compulsory heirs
as accepted [Art. 1050, CC]. This is a true case in the inheritance brings back to the common
of renunciation. hereditary mass the property which they may
have received from the testator so that a
Forms of Repudiation [Art. 1051, CC] division may be effected according to law and
a. In a public instrument acknowledged the will of the testator.
before a notary public; or
b. In an authentic document – equivalent of In reducing inofficious donations, the last to be
an indubitable writing or a writing whose donated should be the first to be reduced.
authenticity is admitted or proved; or
c. By petition presented to the court having Rationale for collation: If donations inter
jurisdiction over the testamentary or vivos will not be collated, then the rule on
intestate proceeding legitimes shall be circumvented or disregarded.
Heirs in Two Capacities [Art. 1055, CC] OPERATIONS RELATED TO COLLATION
a. If a person is called to the same inheritance [Tolentino]
as an heir by will and by law and he a. Collation – adding to the mass of the
repudiates the inheritance in his capacity hereditary estate the value of the donation
as a testamentary heir, he will be or gratuitous disposition.
considered to have also repudiated the b. Imputing or Charging – crediting the
inheritance as a legal heir. donation as an advance on the legitime (if
b. If he repudiates it as a legal heir, without the donee is a compulsory heir) or on the
knowledge of his being a testamentary free portion (if the donee is a stranger, i.e.,
heir, he may still accept it in the latter not a compulsory heir). [Balane at 522]
capacity. c. Reduction – determining to what extent
the donation will remain and to what extent
Irrevocability of Acceptance or Repudiation it is excessive or inofficious.
General Rule: The acceptance or repudiation d. Restitution – returning or the act of
of an inheritance, once made, is irrevocable payment of the excess to the mass of
and cannot be impugned. hereditary estate.
Exceptions Persons Obliged to Collate
a. When the acceptance or repudiation General rule: Compulsory heirs
suffers from any of the vices which annul
consent; and Exceptions
b. When an unknown will appears [Art. 1056, a. When the testator should have so
CC] expressly provided [Art. 1062, CC] – in
which case you collate against the
Page 246 of 532

disposable free portion because there attendance, even in extraordinary illness,

MUST be collation. apprenticeship, ordinary equipment, or
b. When the compulsory heir should have customary gifts [Art. 1067, CC]
repudiated his inheritance [Art. 1062, CC]
c. When there is only ONE compulsory heir Generally not imputable to legitime/ cannot
be collated, subject to exceptions:
Grandchildren who survive with their uncles, a. Expenses incurred by parents in giving
aunts, or first cousins and inherit by right of their children professional, vocational or
representation [Art. 1064, CC] other career unless the parents so provide,
or unless they impair the legitime [Art.
Note: Grandchildren may inherit from their 1067, CC]
grandparents in their own right, i.e., as heirs b. Wedding gifts by parents and ascendants,
next in degree, and not by right of consisting jewelry, clothing and outfit,
representation if their parent repudiates the except when they exceed 1/10 of the sum
inheritance of the grandparent, as no living disposable by will [Art. 1070, CC]
person can be represented except in cases of c. Neither shall donations to the spouse of the
disinheritance and incapacity. In this case, the child be brought to collation; but if they
grandchildren are not obliged to bring to have been given by the parent to the
collation what their parent has received spouses jointly, the child shall be obliged to
gratuitously from their grandparent. bring to collation one-half of the thing
donated [Art. 1066, CC]
What to Collate
a. Any property or right received by gratuitous Note: Parents are not obliged to bring to
title during the testator’s lifetime [Art. 1061, collation in the inheritance of their ascendants
CC] any property which may have been donated by
b. All that they may have received from the the latter to their children [Art. 1065, CC].
decedent during his lifetime [Art. 1061, CC]
c. Expenses incurred by the parents in giving Wedding Gifts
their children a professional, vocational or The wedding gift under Article 1070 of the Civil
other career shall not be brought to Code may be compared to a donation propter
collation unless the parents so provide, or nuptias as follows:
unless they impair the legitime; but when
their collation is required, the sum which Donation Propter
Wedding Gift
the child would have spent if he had lived Nuptias
in the house and company of his parents The object is not The object is
shall be deducted therefrom [Art. 1068, specified. It could be jewelry, clothing or
CC] anything of value. outfit.
d. Any sums paid by a parent in satisfaction The donor is not
of the debts of his children, election The donor must be
specified. He or she
expenses, fines, and similar expenses a parent or
could be anyone with
shall be brought to collation [Art. 1069, CC] ascendant of the
capacity to dispose
donee.
property.
Note: Only the value of the thing donated shall If given by a parent,
be brought to collation. the donee is either the The donee is either
child of the donor, or a child or a
PROPERTIES NOT SUBJECT TO the future spouse of descendant of the
COLLATION the child of the donor, donor.
or both of them jointly.
Absolutely no collation: The gift must be given The gift may be
Expenses for support, education (only before the celebration given at any time,
elementary and secondary), medical of the marriage. either before or
Page 247 of 532

after the celebration JUDICIAL vs. EXTRAJUDICIAL

of the marriage. PARTITION
The donation is Judicial Extra-judicial
governed by the rules Partition done by Partition made by
of ordinary donations, Court pursuant to an the decedent himself
except as modified by The gift is non- Order of Distribution by an act inter vivos
the provisions of the collationable to the which may or may or by will or by a third
Family Code. Thus, a extent of one-tenth not be based on a person entrusted by
donation propter of the disposable project of partition. the decedent or by
nuptias given by a free portion of the the heirs themselves
parent to a child is hereditary estate of [Paras].
collationable in full, the donor.
except if the donor Partition Inter Vivos:
declared it to be non- It is one that merely
collationable allocates specific
items or pieces of
5. Partition and Distribution of property on the basis
of the pro-indiviso
Estate shares fixed by law
or given under the
Definition of Partition: Separation, division will to heirs or
and assignment of a thing held in common successors [Art.
among those to whom it may belong. 1080, CC].
What can be divided? 1. The Decedent,
The thing itself or its value may be divided during his lifetime
[Art. 1079, CC].
by an act inter
vivos or by will
Before Partition: Whole estate of the [Art.1080, CC]
decedent is owned in common by the heirs [Art. 2. The decedent’s
1078, CC]. Who may
heirs [Art.1083,
effect
CC]
What acts are deemed partition? Partition?
3. A competent court
Every act which is intended to put an end to [Art. 1083, CC]
indivision among heirs and legatees or 4. A third person not
devisees is deemed a partition, although it
an heir designated
should purport to be a sale, an exchange, a by the decedent
compromise, or any other transaction [Art. [Art.1081, CC]
1082, CC].
1. Compulsory heir
2. Voluntary heir
A void partition may be valid if:
upon fulfillment of
1. The will was in fact a partition
condition, if any
2. The beneficiaries of the void will were legal
Who may [Art. 1084, CC]
heirs
demand 3. Legatee or
partition? devisee
The titles of acquisition or ownership of each
4. Any person who
property shall be delivered to the co-heir to
has acquired
whom said property has been adjudicated [Art.
interest in the
1089, CC].
estate
When 1. When expressly
Partition prohibited by the
Page 248 of 532

cannot be testator for a not be rescinded unless there is bad faith

demanded? period not or fraud on the part of the other persons
exceeding 20 interested, but the latter shall be
years [Art. 1083, proportionately obliged to pay the true heir
CC] of his share. The partition with respect to
2. When the co-heirs the mistaken heir is void [Sempio-Dy].
agreed that the
estate shall not be Right of Redemption in Partition
divided for a Should any of the heirs sell his hereditary rights
period not to a stranger before the partition, any or all of
exceeding 10 the co-heirs may be subrogated to the rights of
years, renewable the purchaser by reimbursing him for the price
for another 10 of the sale, provided they do so within the
years [Art. 494, period of one month from the time they were
CC] notified in writing of the sale by the vendor [Art.
3. When prohibited 1088, CC].
by law
4. When to partition Strangers – those who are not heirs on the
the estate would succession.
render it
unserviceable for Legal Redemption by Co-Heir;
the use for which it Requisites
is intended 1. That there are several heirs of the common
1. The prohibition to inheritance;
partition for a 2. That one of them sells his hereditary rights;
period not 3. That the sale is made to a stranger, and
exceeding 20 before the partition has been made;
years can be 4. That one or more of the co-heirs demand
imposed even on the repurchase within a period of one
the legitime. month, counted from the time he or they
2. If the prohibition to were notified in writing of the sale; and
the partition is for 5. That the buyer is reimbursed the price of
Prohibition to
more than 20 the sale [Garcia v. Calaliman, G.R. No. L-
Partition 26855 (1989)].
years, the excess
is void.
3. Even if a Note: The redemption can be exercised only by
prohibition is a co-heir.
imposed, the heirs
by mutual EFFECTS OF PARTITION
agreement can
still make the Effect: A partition legally made confers upon
partition. each heir the exclusive ownership of the
property adjudicated to him [Art. 1091, CC].
Effects of Inclusion of Intruder in Partition
[Art. 1108, CC] No partition shall be construed so as to
1. Between a true heir and several mistaken prejudice, defeat, or destroy the right or title of
heirs – partition is VOID any person claiming the real estate involved in
2. Between several true heirs and a mistaken the action for partition by title under any other
heir – transmission to mistaken heir is void person, or by title paramount to the title of the
3. Through error or mistake, share of true heir parties among whom the partition may have
is allotted to mistaken heir – partition shall been made [Rule 69, Sec. 12, ROC].
Page 249 of 532

Warranty: After the partition has been made, 1. The testator himself has made the partition;
the co-heirs shall be reciprocally bound to Unless it appears, or it may be reasonably
warrant the title to, and the quality of, each presumed, that his intention was otherwise,
property adjudicated [Art. 1092, CC]. but the legitime shall always remain
unimpaired.
Reciprocal obligation of warranty: shall be 2. When it has been so expressly stipulated in
proportionate to the respective hereditary the agreement of partition;
shares of the co-heirs. Unless there has been bad faith
3. When the eviction is due to a cause
In case of insolvency of any of the co-heirs: subsequent to the partition, or has been
Other co-heirs shall be liable for his part in the caused by the fault of the distributee of the
same proportion, deducting the part property [Art. 1096, CC].
corresponding to the one who should be
indemnified. RESCISSION AND NULLIFICATION OF
PARTITION
RIGHT OF ACTION FOR REIMBURSEMENT:
Those who pay for the insolvent heir shall have Causes for Rescission or Annulment
a right of action against him for reimbursement, 1. A partition may be rescinded or annulled
should his financial condition improve [Art. for the same causes as contracts [Art.
1093, CC]. 1097, CC].
2. A partition, judicial or extrajudicial, may
Prescription period for action to enforce also be rescinded on account of lesion,
warranty among the co-heirs: Ten (10) years when any one of the co-heirs received
from the date the right of action accrues [Art. things whose value is less by at least one-
1094, CC]. fourth (¼) than the share to which he is
entitled, considering the value of the things
If a credit should be assigned as collectible: at the time they were adjudicated [Art.
Co-heirs shall not be liable for the subsequent 1098, CC].
insolvency of the debtor of the estate, but only ● This article applies only to cases of
for his insolvency at the time the partition is partition among-coheirs
made [Art. 1095, CC]. ● Lesion is the injury suffered in
consequence of inequality of
Prescription period of the warranty of the situation by one party who does not
solvency of the debtor: Can only be enforced receive the full equivalent for what
during the five (5) years following the partition. she gives in a sale or any
commutative contract
Warrant of bad debts 3. The partition made by the testator cannot
General Rule: Co-heirs do not warrant bad be impugned on the ground of lesion,
debts, if so known to, and accepted by the except when the legitime of the compulsory
distributee. heirs is thereby prejudiced, or when it
appears or may be reasonably presumed
Exception: But if such debts are not assigned that the intention of the testator was
to a co-heir, and should be collected, in whole otherwise [Art. 1099, CC].
or in part, the amount collected shall be 4. Preterition of a compulsory heir in the
distributed proportionately among the heirs partition [Art. 1104, CC]:
[Art. 1095, CC]. ● Partition shall not be rescinded
unless bad faith or fraud on the part
Cessation of Obligation of warranty among of other heirs is proved.
co-heirs: The obligation of warranty among ● The culpable heirs shall share in
co-heirs shall cease in the following cases: the damages of the prejudiced
compulsory heir proportionately.
Page 250 of 532

5. A partition which includes a person Important Periods in Partition

believed to be an heir, but who is not, shall 1 month or Testator, if publicly known to
be void only with respect to such person less before be insane, burden of proof is
[Art. 1105, CC]. making a on the one claiming validity of
will the will
Rescission on account of lesion Maximum period testator can
PRESCRIPTION: After four (4) years from the 20 years prohibit alienation of
time the partition was made [Art. 1100, CC]. dispositions
5 years
OPTION OF HEIR SUED: from To claim property escheated
a. Indemnifying the plaintiff for the loss; or delivery to to the State
b. Consenting to a new partition the State
To report knowledge of
Indemnity may be made: 1 month violent death of decedent lest
1. By payment in cash or he be considered unworthy
2. By the delivery of a thing of the same kind 5 years
and quality as that awarded to the plaintiff. from the
Action for declaration of
time
If option of consenting to a new partition incapacity and for recovery of
disqualified
was chosen: Shall affect neither those who the inheritance, devise or
person
have not been prejudiced nor those who have legacy
took
not received more than their just share [Art. possession
1101, CC]. 30 days
from Must signify
Who cannot maintain an action for issuance of acceptance/repudiation;
rescission on the ground of lesion? order of otherwise, deemed accepted
An heir who has alienated the whole or a distribution
considerable part of the real property 1 month
adjudicated to him, but he shall have a right to form Right to repurchase
be indemnified in cash [Art. 1102, CC]. written hereditary rights sold to a
notice of stranger by a co-heir
When is rescission of the partition on the sale
ground of lesion not allowed? To enforce warranty of
When there is omission of one or more objects title/quality of property
or securities of the inheritance, but the partition 10 years adjudicated to co-heir from
shall be completed by the distribution of the the time the right of action
objects or securities which have been omitted accrues
[Art. 1103, CC]. To enforce warranty of
5 years
solvency of debtor of the
DIFFERENCE OF NULLITY FROM from
estate at the time partition is
RESCISSION partition
made
● Nullity – the act is supposed to never have 4 years
existed Action for rescission of
from
● Rescission – the act is valid at the origin partition
partition on account of lesion
though it afterwards became ineffective.
Page 251 of 532

U.P. LAW BOC OBLIGATIONS AND CONTRACTS CIVIL LAW
OBLIGATIONS AND
CONTRACTS
CIVIL LAW
Page 252 of 539

3. Sources of Obligations
A. GENERAL PROVISIONS
Art. 1157, CC. Obligations arise from:
1. Law;
1. Definition 2. Contracts;
3. Quasi-contracts;
Art. 1156, CC. An obligation is a juridical 4. Acts or omissions punished by law;
necessity to give, to do or not to do. and
5. Quasi-delicts.
An obligation is a juridical relation, whereby a

person (called the creditor) may demand from a. Law
another (called the debtor) the observance of a Obligations arise when imposed by the law
determinative conduct, and in case of breach, itself and cannot be presumed. [Art. 1158, CC]
may obtain satisfaction from the assets of the
latter. [Makati Stock Exchange v. Campos, b. Contracts
G.R. No. 138814 (2009)] Obligations arise from the stipulation of the
parties; it has the force of law and should be
complied with in good faith. [Art. 1159, CC]
2. Elements of an obligation
c. Quasi-Contracts
a. Active Subject (Obligee/Creditor): The Certain lawful, voluntary and unilateral acts
person (natural or juridical) who has the give rise to the juridical relation of quasi-
right or power to demand the prestation. contract to the end that no one shall be
b. Passive Subject (Obligor/Debtor): The unjustly enriched or benefited at the expense
person bound to perform the prestation. of another. [Art. 2142, CC]
c. Prestation (Object): The conduct required
to be observed by the debtor/obligor (to d. Acts or Omissions Punishable by
give, to do, or not to do). Law
Responsibility for fault or negligence under a
Requisites quasi-delict [Art. 2176, CC] is entirely separate
1. Must be possible - physically and and distinct from the civil liability arising from
juridically. negligence under the penal code. But the
2. Must be determinate or at least plaintiff cannot recover damages twice for the
determinable according to pre- same act or omission of the defendant. [Art.
established elements. 2177, CC]
3. Must have possible equivalent in
money e. Quasi-Delicts
Obligations arise from damages caused to
d. Vinculum Juris (Juridical or Legal Tie; another through an act or omission, there being
Efficient Cause): That which binds or fault or negligence but no contractual relations
connects the parties to the obligation. [de exist between the parties. [Art. 2176, CC]
Leon]
It is established by:
1. law
2. bilateral acts (e.g. contracts giving rise
to obligations stipulated therein)
3. unilateral acts (e.g. crimes and quasi-
delicts)
Page 253 of 532

B. NATURE AND EFFECT 4. To deliver its even if not
accessions and mentioned
OF OBLIGATIONS accessories [Art. [Art. 1166,
1166, CC] CC]
1. Obligation to give • Accessions – 4. Not to be
everything compelled to
a. Type of things which is receive a
produced by a different one,
Specific/ Generic Limited
thing, or which although of
Determinate Thing Generic
is incorporated the same
Thing Thing
or attached value as, or
Particularly Object is When the thereto, more valuable
designated or designated generic excluding fruits than that
physically only by its objects are • Accessories – which is due
segregated class/ confined to a things designed [Art. 1244,
from all genus/ particular for the CC]
others of the species. class. embellishment, 5. To recover
same class use or damages in
[Art.1460, preservation of case of
CC]; another thing of breach,
Identified by more exclusive or in
individuality. importance addition to
5. To pay damages in specific
Cannot be Can be Can be case of breach [Art. performance
substituted substituted substituted 1170, CC] [Arts. 1165,
against the by any of the by any of the 1170, CC]
obligee’s will. same class same
and same particular
kind. class. To Give a Generic Thing
1. To take care of the 1. To ask that

b. Rights and Duties of Parties thing [Art. 1163, CC] the obligation
2. To deliver a thing of be complied
Duties of the Debtor Rights of the
the quality intended with [Art.
Creditor
by the parties taking 1165, CC]
To Give a Specific Thing into consideration 2. To ask that
the purpose of the the obligation
1. To preserve or take 1. To compel obligation and other be complied
care of the thing due delivery [Art. circumstances [Art. with by a third
with the proper 1165, CC] 1246, CC] person at the
diligence of a good 2. To the fruits 3. Creditor cannot expense of
father of a family from the time demand a thing of the debtor
[Art. 1163, CC] the obligation superior quality; 3. To recover
2. To deliver the to deliver neither can the damages in
thing itself [Art. arises [Art. debtor deliver a case of
1165, CC] 1164, CC] thing of inferior breach [Art.
3. To deliver the 3. To the quality. 1165, CC]
fruits of the thing accessions 4. To pay damages in 4. Not to be
[Art. 1164, CC] and case of breach [Art. compelled to
accessories, 1170, CC] receive a
Page
different one, 2. To shoulder expense. [Art.

although of cost of undoing 1168, CC]
the same what should not 2. To recover
value as, or have been done damages, where
more valuable [Art. 1168, CC] it would be
than that 3. To pay physically or
which is due damages in legally
[Art. 1244, case of breach impossible to
CC] [Art. 1170, CC] undo what should
not have been
done, because
2. Obligation to do or not to do of:
• the very nature
a. Rights and Duties of Parties of the act itself;
Duties of the Rights of the • rights acquired
Debtor Creditor by third persons
who acted in
Obligation To Do good faith;
• when the effects
1. To do it [Art. 1. To have the of the acts
1167, CC] obligation prohibited are
2. To shoulder executed at definite in
the cost of the cost of character and
execution the debtor will not cease
should he [Art. 1167, even if the thing
fail to do it CC] prohibited be
[Art. 1167, 2. To recover undone.
CC] damages in
3. To undo case of
what has breach [Art. 3. Transmissibility of
been poorly 1170, CC] obligations
done [Art.
1167, CC] Note: The debtor General Rule: All rights acquired by virtue of
4. To pay cannot be compelled an obligation are transmissible. [Art. 1178, CC];
damages in to perform his Contracts take effect only between the parties,
case of obligation. The their assigns and heirs [Art. 1311, CC]
breach [Art. ultimate sanction of
1170, CC] civil obligations is Exception: Nature of obligation, law or
indemnification of stipulation to the contrary provides otherwise
damages. This would [Art. 1178].
be tantamount to
involuntary Only personal obligations, or those identified
servitude. with the persons themselves are extinguished
by death. [Stronghold Insurance Co. v.
Obligation Not To Do
Republic-Asahi Glass Corp., G.R. No. 147561
1. Not to do what 1. To ask to undo (2006)]
should not be what should not
done be done, at the
debtor’s
Page 255 of 532

4. Performance of Obligations 5. Breaches of Obligations

a. Definition Those who in the performance of their
Payment means not only (1) the delivery of obligations are guilty of the following are liable
money, but also (2) the performance, in any for damages [Art. 1170, CC]:
other manner, of an obligation. [Art. 1232, CC] a. Fraud (dolo): The fraud contemplated by
the foregoing provision is the deliberate
b. General Rule/Requirement and intentional evasion of the normal
The thing or service in which the obligation fulfillment of obligations.
consists [must be] completely delivered or b. Negligence (culpa): Fault or negligence of
rendered, as the case may be. [Art. 1233, CC] the debtor as an incident in the fulfillment
of an existing obligation.
c. Exceptions c. Delay (mora): Delay in the fulfillment of the
1. Substantial performance obligation. The delay however must be
TRIGGER: The obligation has been imputable to the debtor/obligor.
substantially performed in good faith. d. And those who in any manner contravene
the tenor thereof: Covers any illicit act
EFFECT: The obligor may recover as which impairs the strict and faithful
though there had been a strict and fulfillment of the obligation,
complete fulfillment, less damages
suffered by the obligee. [Art. 1234, CC] a. Failure to Perform
2. Incomplete/irregular performance Effect of Failure to Perform
TRIGGER: Obligee accepts
performance despite knowledge of its Substantial Slight or Casual
Breach Breach
incompleteness or irregularity.
1. Total breach 1. Partial breach
EFFECT: The obligation is deemed 2. Amounts to 2. There is partial/
fully complied with. [Art. 1235, CC]
non- substantial
performance, performance in
3. Partial prestation
basis for good faith
General rules: rescission 3. Gives rise to
1. The creditor CANNOT be under Art. liability for
compelled to receive partial 1191 and damages only [Art.
payments. payment of 1234, CC]
2. The debtor CANNOT be required damages
to make partial payments.
Exception: when expressly stipulated. General Rule

[Art. 1248, par. 1, CC] Rescission of a contract will not be permitted
for a slight or causal breach, but only for such
4. Partial liquidation substantial and fundamental breach as would
TRIGGER: The debt is partly liquidated defeat the very object of the parties in
and partly unliquidated. executing the agreement. [Vermen Realty
Corp. v. CA, G.R. No. 101762 (1993)]
EFFECT: The creditor may demand
and the debtor may effect the payment Substantial performance contemplates
of the liquidated debt without waiting • an attempt in good faith to perform,
for the liquidation of the unliquidated without any willful or intentional
debt. departure therefrom
Page 256 of 532

• the deviation from the obligation must When demand is not necessary in order
be slight, and the omission or defect that delay may exist [par. 2, Art. 1169, CC]
must be technical and unimportant, 1. When demand would be useless, as
and must not pervade the whole or be when the obligor has rendered it beyond
so material that the object which the his power to perform; such as:
parties intended to accomplish in a a. When the impossibility is caused by
particular manner is not attained. some act or fault of the debtor (e.g.
[International Hotel Corp v. Joaquin, debtor absconded or has destroyed the
G.R. No. 158361 (2013)] thing to be delivered);
b. When the impossibility is caused by a
The question of whether a breach of contract is fortuitous event, but the debtor has
substantial depends upon the attending bound himself to be liable in case of
circumstances and not merely on the such event. [Tolentino]
percentage of the amount not paid. [Cannu v. 2. When from the nature and the
Galang, G.R. No. 139523 (2005)] circumstances of the obligation it appears
that the designation of the time when the
b. Default, Delay, or Mora thing is to be delivered or the service is
to be rendered was a controlling motive
Definition: Failure to perform an obligation for the establishment of the contract (time
on time which constitutes a breach of the is of the essence);
obligation. [de Leon] 3. When the law so provides; or
4. When the obligation expressly so
Rules on Default, Delay, or Mora declares.
Unilateral Obligations Reciprocal Note: It is insufficient that the law or obligation
Obligations fixes a date for performance. It must further
state expressly that after the period lapses,
General Rule: “No Neither party
default will commence.
demand, No delay.” incurs in delay if
the other does not
KINDS OF DELAY
The mere expiration of comply or is not
1. Moral Solvendi;
the period fixed by the ready to comply in
2. Mora Accipiendi;
parties is not enough in a proper manner
3. Compensatio Morae
order that the debtor with what is
may incur in delay. incumbent upon
MORA SOLVENDI
him. From the
Delay on the part of the debtor to fulfil his
Those obliged to deliver moment one of the
obligation either to give (ex re) or to do (ex
or to do something parties fulfills his
persona).
incur in delay from obligation, delay
the time the obligee by the other
Requisites
judicially or begins. [Art. 1169
1. Obligation must be liquidated, due and
extrajudicially par. 3, CC]
demandable
demands from them
2. Non-performance by the debtor within the
the fulfillment of their No delay if neither
period agreed upon
obligation. [Art. 1169 performs.
3. Demand, judicial or extra-judicial, by the
par. 1, CC]
creditor, unless demand is not necessary
under the circumstances enumerated in Art
1169 par (2).
Page 257 of 532

Effects Equitable Tempering under Art. 1192 vs.

1. The debtor is liable for damages. [Art. Under Art. 2215 [Ong v. Bognalbal, G.R. No.
1170, CC] 149140 (2006)]
2. For determinate objects, the debtor shall
Art 1192 Art 2215
bear the risk of loss, even if the loss is due
to fortuitous events. [Art. 1165 par. 3, CC] “In case both “In contracts, quasi-
parties have contracts, and quasi-
MORA ACCIPIENDI committed a breach delicts, the court may
Delay on the part of the creditor to accept the of the obligation, equitably mitigate the
performance of the obligation. the liability of the damages under
first infractor shall circumstances other
Requisites be equitably than the case referred
1. Debtor offers performance. tempered by the to in the preceding
2. Offer must be in compliance with the courts. xxx” article, as in the ff.
prestation as it should be performed. instances:
3. Creditor refuses performance without just
cause. (1) That the plaintiff
himself has
Effects contravened the terms
1. The responsibility of the debtor is reduced of the contract xxx”
to fraud and gross negligence.
2. The debtor is exempted from risk of loss of Second infractor Does not appear to
the thing, which is borne by the creditor. not liable for consider which
3. The expenses incurred by the debtor for damages at all; infractor first
the preservation of the thing after the mora only the first committed the breach.
shall be chargeable to the creditor. infractor is liable,
4. If the obligation bears interest, the debtor but with his liability
does not have to pay from the time of delay. mitigated.
5. The creditor is liable for damages.
6. The debtor may relieve himself of the
obligation by consigning the thing. c. Fraud (Dolo) in the
[Tolentino] Performance of the Obligation
COMPENSATIO MORAE Art. 1171, CC. Responsibility arising from

Delay of both parties in reciprocal fraud is demandable in all obligations. Any
obligations. waiver of an action for future fraud is void.
Effects
1. Delay of the obligor cancels delay of Definition: Fraud (dolo) is the deliberate or
obligee (and vice versa) hence it is as if intentional evasion of the normal fulfilment of
there is no default. an obligation. [de Leon]
2. The liability of the first infractor shall be
equitably tempered by the courts. If it
cannot be determined which of the parties
first violated the contract, the same shall be
deemed extinguished, and each shall bear
his own damages. [Art. 1192, CC]
Page 258 of 532

Two Types of Fraud d. Negligence (Culpa) in the

Dolo Causante Dolo Incidente Performance of the Obligation
[Art. 1338, par. 1, Art. [par. 2, Art. 1344,
1344, CC] CC] Art. 1172, CC. Responsibility arising from
negligence in the performance of every kind
Definition
of obligation is also demandable, but such
liability may be regulated by the courts,
Those deceptions or Those which are according to the circumstances.
misrepresentations of a not serious in
serious character character and
employed by one party without which the Art. 1173, CC. The fault or negligence of the
and without which the other party would obligor consists in the omission of that
other party would not still have entered diligence which is required by the nature of
have entered into the into the contract. the obligation and corresponds with the
contract. [Tankeh v. [Tankeh v. DBP, circumstances of the persons, of the time
DBP, G.R. No. 171428 G.R. No. 171428 and of the place.
(2013)] (2013)] xxxx
If the law or contract does not state the
When Present diligence which is to be observed in the
performance, that which is expected of a
Deception used by one Deception used
good father of a family shall be required.
party prior to or by one party at the
simultaneous with the time of birth or
contract, in order to perfection, or General Rule: Standard of care required is
secure the consent of performance of diligence of a good father of family.
the other [Tankeh v. the obligation
DBP, G.R. No. 171428 Exceptions (Other standards of care)
(2013)] 1. Common Carriers
They are bound to observe extraordinary
Object diligence in the vigilance over the goods
and for the safety of the passengers
Essential cause of the Some particular or transported by them [Art. 1733, CC]
obligation without which accident of the
the other party would obligation 2. Hotel and inn-keepers
not have entered into The keepers of hotels or inns shall be
the contract. responsible for the deposit of effects, made
by travellers, as depositaries, provided
Effect
that notice was given to them, or their
Voidable and Damages Damages employees of such effects and that they
take precautions relative to the care and
vigilance of their effects [Art. 1998, CC]
Requisites for Fraud to Vitiate a Contract
(Dolo Causante) This responsibility shall include the loss of,
1. It must have been employed by one or injury to the personal property of the
contracting party upon the other; guests caused by the servants or
2. It must have induced the other party to employees of the keepers of hotels or inns
enter into the contract; as well as strangers; but not that which may
3. It must have been serious; and proceed from any force majeure. [Art.
4. It must have resulted in damage or injury to 2000, CC]
the party seeking annulment. [Tolentino]
Page 259 of 532

3. Banks Extent of Damages to be Awarded [Art.

Banks have the obligation to treat the 2201, CC]
accounts of its clients ‘meticulously and
Good Faith Bad Faith
with the highest degree of care’. [Poole-
Blunden v. UnionBank, G.R. No. 205838 Obligor is liable for Obligor shall be
(2017)] those that are the responsible for all
natural and probable damages which may
4. Pharmacists consequences of be reasonably
As active players in the field of dispensing the breach of the attributed to the non-
medicines to the public, the highest degree obligation, and performance of the
of care and diligence is expected [Mercury which the parties obligation.
Drug Corporation v. de Leon, G.R. No. have foreseen or
165622 (2008)] could have Any waiver or
reasonably foreseen renunciation made in
Test of Negligence at the time the the anticipation of
“Whether or not the defendant, in doing the obligation was such liability is null
alleged negligent act, observed the reasonable constituted. and void.
care and caution, which an ordinary and
prudent person would have used in the same
situation.” If not, then he is guilty of negligence. e. Contravention of the Tenor of
[Mandarin Villa Inc. v. CA, G.R. No. 119850 the Obligation
(1996)]
“In any manner contravenes the tenor” means
Kinds of Civil Negligence any illicit act, which impairs the strict and
faithful fulfillment of the obligation, or every
Culpa Contractual Culpa Aquiliana
kind of defective performance. [Tolentino]
Negligence is merely Negligence is
incidental in the direct, substantive 6. Remedies available to
performance of an and independent. creditor in cases of breach
obligation.
There is always a pre- There may or may a. Principal remedies of creditors

existing contractual not be a pre- Obligation to Obligation to Give a
relation. existing contractual Give a Specific Generic Thing and
obligation. Thing Obligation to Do
The source of the The source of Alternative Remedies

obligation of the obligation is the
defendant to pay defendant’s Compel the Ask the obligation be
damages is the breach negligence itself. debtor to make complied with at the
or non-fulfillment of the delivery (specific expense of the debtor.
contract. performance) [par. 2, Art. 1165, CC]
[par. 1, Art. 1165,
Proof of the existence The negligence of CC]
of the contract and of the defendant must
its breach or non- be proven. Rescission [Art. If a person obliged to do
fulfillment is sufficient 1191] something fails to do it,
prima facie to warrant the same shall be
recovery. executed at his cost [Art.
1167, CC ]
Page 260 of 532

[Universal Food Corporation v. CA, G.R. No. L-

What has been poorly
29155 (1970)]
done [may] be undone.
[Art. 1167]
Effect of Rescission under Art 1191
Rescission [Art. 1191] Extinguishes the obligatory relation as if it had
never been created, the extinction having a
Damages in any event retroactive effect. Both parties must surrender
what they have respectively received and
Those who in the performance of their return each other as far as practicable to their
obligations are guilty of fraud, negligence, or original situation. [Tolentino]
delay, and those who in any manner
contravene the tenor thereof, are liable for Rescission may take place extrajudicially, by
damages. [Art. 1170, CC] declaration of the injured party. The party who
deems the contract violated may consider it
Rescission (Resolution in Reciprocal resolved or rescinded, and act accordingly,
Obligations) without previous court action, but it
proceeds at its own risk. For it is only the final
Art. 1191, CC. The power to rescind judgment of the corresponding court that will
obligations is implied in reciprocal ones, in conclusively and finally settle whether the
case one of the obligors should not comply action taken was or was not correct in law. But
with what is incumbent upon him. the law definitely does not require that the
contracting party who believes itself injured
The injured party may choose between the must first file suit and wait for a judgment
fulfillment and the rescission of the before taking extrajudicial steps to protect its
obligation, with the payment of damages in interest. [UP v. Delos Angeles, G.R. No. L-
either case. He may also seek rescission, 28602 (1970)]
even after he has chosen fulfilment, if the
fulfillment of the obligation should become Under Art 1191, the right to rescind an
impossible. obligation is predicated on the violation of the
reciprocity between parties, brought about by a
The court shall decree the rescission breach of faith by one of them. Rescission,
claimed, unless there be just cause however, is allowed only where the breach is
authorizing the fixing of a period. substantial and fundamental to the
fulfillment of the obligation. [Del Castillo Vda
This is understood to be without prejudice to de Mistica v. Naguiat,G.R. No. 137909 (2003);
the rights of third persons who have acquired Cannu v. Galang, G.R. No. 139523 (2005)].
the thing, in accordance with articles 1385
and 1388 and the Mortgage Law. It will not be permitted in casual or slight
breach. [Song Fo v. Hawaiian Philippines, G.R.
Rescission No. 23769, (1925)]
The unmaking of a contract, or its undoing from
the beginning, and not merely its termination
[Pryce Corp v. Pagcor, G.R. No. 157480
(2005)]
Right to Rescind
The rescission on account of breach of
stipulations is not predicated on injury to
economic interests of the party plaintiff but
on the breach of faith by the defendant, that
violates the reciprocity between the parties.
Page 261 of 532

Distinguished from Rescission under Art. Right of the creditor to exercise all of the rights
1380 and bring all the actions which his debtor may
have against third persons.
Rescission / Rescission [Art.
Resolution [Art. 1380, CC] In order to satisfy their claims against the
1191, CC] debtor, creditors have the ff. successive rights:
1. To levy by attachment and execution upon
Based on non- Based on lesion or all the property of the debtor, except those
performance or fraud upon creditors. exempt from execution;
non-fulfillment of 2. To exercise all the rights and actions of the
obligation. debtor, except such as are inherently
personal to him; and
Action is instituted Action is instituted by 3. To ask for rescission of the contracts made
only by the injured either party or by a by the debtor in fraud of their rights.
party. third person.
Requisites
Principal action, Subsidiary action, in
1. The person to whom the right of action
retaliatory in the absence of any
pertains must be indebted to the creditor
character. other legal means to 2. The debt is due and demandable
obtain reparation.
3. The creditor must be prejudiced by the
Applies only to Applies to either failure of the debtor to collect his debts due
reciprocal unilateral or reciprocal him from third persons, either through
obligations where obligations even when malice or negligence
one party is guilty the contract has been 4. The debtors assets are insufficient (debtor
of non-fulfillment fully fulfilled. is insolvent)
5. The right of action is not purely personal to
In some cases, Court cannot grant a the debtor
court may grant a period or term within
term for which one must Previous approval of the court is not necessary
performance. comply. to exercise the accion subrogatoria.
Non-performance Non-performance by ACCION PAULIANA

by the other party is the other party is Creditors may also impugn the acts which the
important. immaterial. debtor may have done to defraud them. [Art.
1177, CC]
b. Subsidiary Remedies of
Creditors Par. 3, Art. 1381. The following contracts are
rescissible:
ACCION SUBROGATORIA
(3) Those undertaken in fraud of creditors
Art. 1177, CC. The creditors, after having when the latter cannot in any other manner
pursued the property in possession of the collect the claims due them.
debtor to satisfy their claims, may exercise
all the rights and bring all actions of the latter
for the same purpose, save those which are Requisites [Cheng v. CA, G.R. No. 144169
inherent in his person; they may also impugn (2001)]
the acts which the debtor may have done to 1. There is a credit in favor of the plaintiff
defraud them. prior to the alienation by the debtor
2. The debtor has performed a subsequent
contract conveying patrimonial benefit to
third person/s.
Page 262 of 532

3. The debtor’s acts are fraudulent to the

prejudice of the creditor.
C. KINDS OF
4. The creditor has no other legal remedy to OBLIGATIONS
satisfy his claim
5. The third person who received the 1. Pure
property is an accomplice to the fraud.
Art. 1179, CC. Every obligation whose
An accion pauliana thus presupposes the performance does not depend upon a future
following: or uncertain event, or upon a past event
1. A judgment; unknown to the parties, is demandable at
2. the issuance by the trial court of a writ of once.
execution for the satisfaction of the
judgment, and; Every obligation which contains a resolutory
3. the failure of the sheriff to enforce and condition shall also be demandable, without
satisfy the judgment of the court. prejudice to the effects of the happening of
the event.
It requires that the creditor has exhausted the
property of the debtor. The date of the A pure obligation is IMMEDIATELY
decision of the trial court is immaterial. DEMANDABLE, regardless of the presence of
What is important is that the credit of the a condition or a term/period.
plaintiff antedates that of the fraudulent
alienation by the debtor of his property.
After all, the decision of the trial court against 2. Conditional
the debtor will retroact to the time when the Art. 1181, CC. In conditional obligations, the
debtor became indebted to the creditor. [Cheng acquisition of rights, as well as the
v. CA, supra] extinguishment or loss of those already
acquired, shall depend upon the happening
Accion Accion Pauliana of the event which constitutes the condition.
Subrogatoria
A condition is a future AND uncertain event.
Not necessary Credit must exist before the This includes acquisition of proof/knowledge of
that creditor’s fraudulent act [Tolentino] a past event unknown to the parties.
claim is prior to
the acquisition Note: Commentators have Kinds of conditions
of the right by conflicting views on WoN
the debtor new debts contracted by
i. As to Effect
the debtor fall under the
scope of accion pauliana. 1. SUSPENSIVE – Obligation shall only be
No need for Fraudulent intent is effective upon the fulfillment of the condition
fraudulent required if the contract [Art. 1181, CC]. The obligee acquires a mere
intent rescinded is onerous hope or expectancy, protected by law, upon the
constitution of the obligation.
No period for Prescribes in 4 years from
prescription the discovery of the fraud
Page 263 of 532

Principle of Retroactivity in Suspensive

Before Fulfillment After Fulfillment
Conditions
The demandability The obligation Par. 1, Art. 1187, CC. The effects of a
and acquisition/ arises or becomes conditional obligation to give, once the
effectivity of the rights effective. condition has been fulfilled, shall retroact to
arising from the the day of the constitution of the obligation.
obligation is The obligor can be Nevertheless, when the obligation imposes
suspended, but the compelled to reciprocal prestations upon the parties, the
creditor may bring the comply with what is fruits and interests during the pendency of
appropriate actions incumbent upon the condition shall be deemed to have been
for the preservation of him. mutually compensated.
his right. [Art. 1188,
CC] Rationale: Obligation is constituted when its
essential elements concur. The condition
Doctrine of Constructive Fulfillment of imposed is only an accidental element.
Suspensive Conditions
Applicability: This applies to consensual
Art. 1186, CC. The condition shall be contracts only.
deemed fulfilled when the obligor voluntarily
prevents its fulfillment. Exception: This does not apply to real
contracts which can only be perfected by
Suspensive condition is deemed fulfilled when: delivery.
1. Obligor intends to prevent obligee from
complying with the condition Effects of the Happening of Suspensive
2. Obligor actually prevents obligee from Conditions
complying with the condition To Give To Do/Not To Do
The two requisites must concur. Mere If reciprocal, the In obligations to do or
intention of the debtor to prevent the happening fruits and interests not to do, the court
of the condition, or to place ineffective shall be deemed to shall determine the
obstacles to its compliance, without actually have been mutually retroactive effect of
preventing the fulfillment, is insufficient. compensated a the condition that has
[International Hotel Corporation v. Joaquin, matter of justice and been complied with
G.R. No. 158361 (2013)] convenience [Art. [Art. 1187, par. 2]
1187, par. 1]
Doctrine does not apply to:
1. Resolutory conditions If unilateral, the The power of the court
2. External contingency that is lawfully debtor shall includes the
within the control of the obligor [Taylor appropriate the determination of
v Uy Tieng, G.R. No. L-16109 (1922)] fruits and interests whether or not there
3. Obligor, in preventing the fulfilment of received, unless will be any retroactive
the condition, acts pursuant to a right from the nature and effect. This rule shall
circumstance it likewise apply in
should be inferred obligations with a
that the intention of resolutory condition.
the persons [Art. 1190, par. 3]
constituting the
same was different.
[Art. 1187, par. 1]
Page 264 of 532

[Art. 1182, the principle of mutuality of

2. RESOLUTORY – The obligation is
CC] contracts.
demandable at once, without prejudice to the
effects of the happening of the event [par. 2, Exclusively Condition and obligation
Art. 1179, CC]. upon the are valid because in such
Debtor’s Will situation, the position of
Before After Fulfillment in case of a the debtor is exactly the
Fulfillment Resolutory same as the position of the
Condition creditor when the condition
Preservation of Whatever may have [par. 2, Art. is suspensive. It does not
creditor’s rights been paid or delivered by 1179, CC] render the obligation
[par. 1, Art. one or both of the parties illusory.
1188, CC] also upon the constitution of
applies to the obligation shall have
The condition that payment should be made by
obligations with to be returned upon the
Hermosa as soon as he receives funds from
a resolutory fulfillment of the condition
the sale of his property in Spain is a mixed
condition. [par. 1, Art. 1190, CC].
condition. The condition implies that the
There is no return to the
obligor already decided to sell the house
status quo. However,
and all that was needed to make the
when the condition is not
obligation demandable is that the sale be
fulfilled, rights are
consummated and the price thereof
consolidated and they
remitted to the islands. There were still other
become absolute in
conditions that had to concur to effect the sale,
character.
mainly that of the presence of a buyer, ready,
able and willing to purchase the property under
ii. As to Cause/Origin the conditions set by the intestate. [Hermosa
vs. Longara, G.R. No. L-5267 (1953)]
a. POTESTATIVE – The fulfillment of the
condition depends on the sole act or Loss, Deterioration, or Improvement of a
decision of a party. Specific Thing before Fulfillment of
b. CASUAL – The fulfilment of the condition Suspensive Condition in Obligations to
depends upon chance or upon the will of a Give (Art. 1189) or of Resolutory Condition
third person. [Art. 1182, CC] in Obligations to Do or Not to Do [par. 2, Art.
c. MIXED – The fulfilment of the condition 1190, CC]
depends partly upon the will of a party to Loss of a A thing is deemed lost:
the contract and partly upon chance and/or Thing a. When it perishes;
will of a third person. b. When it goes out of
commerce of man; or
Exclusively Condition and obligation c. When it disappears
upon the are valid. in such a manner that its
Creditor’s Will existence is unknown or it
cannot be recovered
Exclusively Condition and obligation
upon the are void because to allow Deterioration Any reduction or impairment
Debtor’s Will such condition would be of a Thing in the substance or value of
in case of a equivalent to sanctioning a thing which does not
Suspensive obligations which are amount to a loss
Condition illusory. It also constitutes
a direct contravention of
Page 265 of 532

Re: Obligations To Do and Not To Do

Improvement Anything added to,
of a Thing incorporated in, or attached Par. 3, Art. 1190, CC. As for the obligations
to the thing that is due. to do and not to do, the provisions of the
second paragraph of article 1187 shall be
observed as regards the effect of the
Re: Obligation to Deliver a Determinate
extinguishment of the obligation.
Thing
When the conditions have been imposed with
the intention of suspending the efficacy of an
Par. 2, Art. 1187, CC. In obligations to do
obligation to give, the following rules shall be
and not to do, the courts shall determine, in
observed in case of the improvement, loss or
each case, the retroactive effect of the
deterioration of the thing during the pendency
condition that has been complied with.
of the condition [Art. 1189, CC]:
Re: Obligations With a Resolutory

Without With Debtor’s Fault/Act
Condition
Debtor’s
Upon the happening of the resolutory
Fault/Act
condition, the rules of Article 1189 shall be
Loss applied to the party who is bound to return (i.e.
the creditor in the original obligation).
Obligation is Obligation is converted into
extinguished. one of indemnity for Impossible Conditions
damages.
1. Impossible conditions, those contrary to
Deterioration good customs or public policy, and those
prohibited by law shall annul the obligation
Impairment to Creditor may choose which depends upon them.
be borne by between bringing an action 2. The part of a divisible obligation which is
the creditor. for rescission of the not affected by such condition shall be
obligation OR bringing an valid. [Art. 1183, CC]
action for specific
performance, with Positive and Negative
damages in either case.
Conditions
Improvement
Positive [Art. 1184, Negative [Art.
Improvement Improvement by the thing’s CC] 1185, CC]
at the debtor’s nature or by time shall inure
expense, the to the benefit of the The condition that The condition that
debtor shall creditor. some event happen at some event will not
ONLY have a determinate time happen at a
usufructuary shall extinguish the determinate time
rights. obligation shall render the
1. as soon as the obligation effective
time expires or from the moment
2. if it has 1. the time
become indicated has
indubitable elapsed, or
that the event 2. if it has
will not take become evident
place.
Page 266 of 532

that the event No effect on Gives rise to an

cannot occur. existence of the obligation or
obligation, only its extinguishes one
demandability or already existing
Where no date of fulfilment is stipulated, the
performance
condition must be fulfilled within a reasonable
time or the time probably contemplated No retroactive effect Has retroactive
according to the nature of the obligation [par. 2, unless there is an effect
Art. 1185, CC]. agreement to the
contrary
3. Obligation with a period or a
When it is left When it is left
term exclusively to the will exclusively to the
of the debtor, the will of the debtor, the
1. Obligations for whose fulfillment a day existence of the very existence of the
certain has been fixed ⎯ shall be obligation is not obligation is affected
demandable only when that day affected
comes. [Art. 1193, CC]
2. Obligations with a resolutory period ⎯
take effect at once, but terminate upon Kinds of Period [Art. 1193, CC]
arrival of the day certain. [Art. 1193, 1. Ex die/ Suspensive Period –
CC] Obligation becomes demandable after
3. When the debtor binds himself to pay the lapse of the period.
when his means permit him to do so, 2. In die/ Resolutory period – Obligation
the obligation shall be deemed to be becomes demandable at once but is
one with a period [Art. 1180, CC] extinguished after the lapse of the
period.
Period or Term
Interval of time, which either suspends Effect of Advance Payment or Delivery [Art.
demandability or produces extinguishment. 1195, CC]
A fortuitous event does not interrupt the Trigger: (1) Something has been paid or
running of the period. It only relieves the delivered before the arrival of the period, (2) the
contracting parties from the fulfillment of their obligor being unaware of the period or
respective obligations during the period. believing that the obligation has become due
[Victoria’s Planters v. Victoria Milling Co., G.R. and demandable
No. L-6648 ] Effect: That thing paid or delivered may be
recovered with fruits and interests
Term/Period and Condition Distinguished
Loss, Deterioration, or Improvement of the
Term/Period Condition Thing Before Period Expires [Art. 1194, CC]
Interval of time which Fact or event which
Trigger: In case of loss, deterioration or
is future and certain is future and
improvement of the thing before the arrival of
uncertain
the day certain
Must necessarily May or may not Effect: The rules in Art. 1189 shall apply
come, although it happen
may not be known Benefit of the Period [Art. 1196, CC]
when
Trigger: Whenever in an obligation a period is
designated
Page 267 of 532

Effect: It is presumed to have been When Courts May Fix Period

established for the benefit of both the creditor General Rule: Courts may fix the period of an
and the debtor obligation when:
1. the obligation does not fix a period but from
Exception: From the tenor of the same or its nature and the circumstances it can be
other circumstances it should appear that the inferred that a period was intended;
period has been established in favor of one or 2. the obligation depends upon the will of the
of the other. debtor.
Period for the benefit of either creditor or Exceptions: If the Court determines that one
debtor of the 3 circumstances [below] are present, it
must decide the period “probably contemplated
Creditor Debtor
by the parties” [Araneta v. Phil. Sugar Estates,
Creditor may Debtor may oppose any G.R. No. L-22558 (1967)]
demand the premature demand on 1. obligation does not fix a period, but from its
fulfillment or the part of the obligee for nature and circumstances, it can be
performance of the performance of the inferred that a period was intended
the obligation at obligation, or if he so 2. the period is void, such as when it depends
any time but the desires, he may upon the will of the debtor
obligor cannot renounce the benefit of 3. If the debtor binds himself when his means
compel him to the period by performing permit him to do so.
accept payment his obligation in advance.
before the Courts shall determine such period as may
expiration of the have been probably contemplated by the
period. parties [Art. 1197, CC]
Application: When a period was intended by
the parties [Macasaet v. Macasaet, G.R. Nos.
If the period is for the benefit of the debtor 154391-92 (2004)]
alone, he shall lose every right to make use General Rule: Once fixed by the courts, the
of it: period cannot be changed by them.
(a) When after the obligation has been Exception: The rule does not apply to contract
contracted, he becomes insolvent, unless of services and to pure obligations. [Tolentino]
he gives a guaranty or security for the debt;
(b) When he does not furnish to the creditor
the guaranties or securities which he has
4. Alternative or facultative
promised;
(c) When by his own acts he has impaired said Alternative and Facultative Conditions
guaranties or securities after their Distinguished
establishment, and when through a Alternative Facultative
fortuitous event they disappear, unless he Obligations Obligations
immediately gives new ones equally
satisfactory; Of the two or more Of the two or more
(d) When the debtor violates any undertaking, prestations, several prestations, only
in consideration of which the creditor are due. one is due, while the
agreed to the period; other/s may be
(e) When the debtor attempts to abscond [Art. performed in
1198, CC] substitution of the
(f) When required by law or stipulation; one due.
(g) If parties stipulated an acceleration clause
[Tolentino]
Page 268 of 532

May be complied May be complied Form of notice

with by performance with by performance Notice of selection or choice may be in any
of one of the of another prestation form provided it is sufficient to make the other
prestations which in substitution of party know that the selection has been made.
are alternatively that which is due. It can be:
due. 1. oral
2. in writing
The right of choice Choice of prestation 3. tacit
belongs to the pertains only to the 4. any other equivocal means [Tolentino]
debtor, unless it debtor.
has been expressly Consent of other party
granted to the The law does not require the other party to
creditor. [Art. 1200, consent to the choice made by the party
CC] entitled to choose. The only possible exception
is when the debtor has chosen a prestation
Loss/impossibility of Loss/impossibility of which could not have been the object of the
all prestations due the prestation due obligation; the creditor’s consent would bring
to a fortuitous event to a fortuitous event about a novation of the obligation [Ibid.]
shall extinguish the is sufficient to
obligation. extinguish the Debtor cannot make a choice, or delays
obligation. selection
If through the creditor's acts the debtor cannot
Loss/impossibility of Loss/impossibility of make a choice according to the terms of the
one of the the substitute/s obligation, the latter may rescind the
prestations does does not extinguish contract with damages. [Art. 1203, CC]
not extinguish the the obligation,
obligation. provided the If the debtor does not select at the time
obligation which is when performance should be effected, the
due subsists choice can be made for him by the creditor
by applying Art. 1167
Culpable loss of any Culpable loss of the
In obligations to do (debtor considered to have
of the objects object which the
waived his right, subject to equity
alternatively due debtor may deliver in
considerations) [Tolentino].
before the choice is substitution before
made may give rise the substitution is
Effect of notice of choice
to liability on the effected does not The effect of the notice is to limit the obligation
part of the debtor. give rise to any
to the object or prestation selected. The
liability on the part of
obligation is converted into a simple obligation
the debtor.
to perform the prestation chosen. Once a
selection has been communicated, it is
Right of Choice [Art. 1200, CC] irrevocable [Ibid.]
General Rule: Belongs to the debtor
Instances when obligation is converted into
Exceptions a simple obligation
1. it is expressly granted to the creditor 1. The person with the right of choice has
2. it is expressly granted to a third person communicated his choice [Arts. 1201 and
par. 1, 1205, CC]
2. Only one prestation is practicable [Art.
1202, CC]
Page 269 of 532

Loss of Specific Things or Impossibility of

shall choose without a right to
Performance of Prestations in an
from among the damages OR price/value
Alternative Obligation
remainder. of the thing lost, with right
to damages.
If Debtor’s Choice [Art. 1204, CC]
Fortuitous Debtor’s Fault One prestation remains
Event
Debtor to Creditor may claim the
All prestations lost/impossible perform that remaining thing without a
which remains. right to damages OR the
Debtor is Creditor shall have a price/value of the thing
released from right to indemnity for lost with right to
the obligation. damages based on the damages.
value of the last thing
which disappeared or
Facultative Obligations
service which become
Only one prestation is agreed upon, but the
impossible, plus
obligor may render another in substitution. [Art.
damages other than the
1206, CC]
value may also be
awarded
Loss or deterioration of Substitute in
Some prestations lost/impossible Facultative Obligations [Art. 1206, CC]
Before After Substitution is
Debtor to Debtor to perform that Substitution is Made
perform that which the debtor shall Made
which he shall choose from among the
choose from remainder, without If due to bad faith The loss or deterioration
among the liability for damages. or fraud of of the substitute on
remainder. obligor: obligor is account of the obligor’s
liable. delay, negligence, or
One prestation remains fraud, renders the obligor
If due to the liable because once the
Debtor to Debtor to perform that
negligence of the substitution is made, the
perform that which remains.
obligor: obligor is obligation is converted
which remains.
not liable. into a simple one with the
substituted thing as the
If Creditor’s Choice [Art. 1205, CC] object of the obligation.
Fortuitous Debtor’s Fault
Event 5. Joint and Solidary
All prestations lost/impossible Obligations
Debtor is Creditor may claim the Joint Obligations
released from price/value of any of
the obligation. them, with indemnity for The whole obligation, whether capable of
damages. division into equal parts or not, is to be paid or
performed by several debtors (joint debtors)
Some prestations lost/impossible and/or demanded by several creditors (joint
creditors).
Debtor to deliver Creditor may claim any
that which he of those subsisting
Page 270 of 532

Each debtor is liable only for a proportionate JOINT INDIVISIBLE OBLIGATION

part of the debt, and each creditor is entitled
Art. 1209, CC. If the division is impossible,
only to a proportionate part of the credit.
the right of the creditors may be prejudiced
[Tolentino]
only by their collective acts, and the debt can
be enforced only by proceeding against all
Presumption of Joint Obligation [Article
the debtors. If one of the latter should be
1207, CC]
insolvent, the others shall not be liable for his
General Rule: An obligation is presumed joint
share.
if there is a concurrence of several creditors, or
of several debtors, or of several creditors and
debtors in one and the same obligation When there are several debtors or creditors,
but the prestation is indivisible, the obligation is
Exceptions joint, unless solidarity has been stipulated
1. When the obligation expressly states [Tolentino]
that there is solidarity
2. When the law requires solidarity, i.e. When Indivisible [Art. 1225, CC]
quasi-delicts [Art. 2194, CC], joint 1. Obligations to give definite things
payees by mistake [Art. 2157, CC], 2. Obligations not susceptible of partial
acts under articles 19-22 if committed performance
by two or more persons acting jointly 3. Indivisibility is provided by law or intended
3. When the nature of the obligation by the parties, even though the object or
requires solidarity service may be physically divisible
4. When a charge or condition imposed 4. In obligations not to do, when character of
upon heirs or legatees, and the prestation requires indivisibility
testament expressly makes the charge
or condition in solidum Summary: in case of breach
5. When the solidary responsibility is Joint Divisible Joint Indivisible
imputed by a final judgment upon Obligations Obligations
several defendants
In case of In case of breach where
Presumption of Divisibility in Joint breach of one of the joint debtors
Obligations [Art. 1208, CC] obligation by fails to comply with his
Credit or debt shall be presumed to be divided one of the undertaking, the
into as many equal shares as there are debtors, obligation can no longer
creditors or debtors, the credits or debts being damages due be fulfilled or performed.
considered distinct from one another. must be borne Thus, the action must be
by him alone. converted into one for
JOINT DIVISIBLE OBLIGATION indemnity for damages,
One where a concurrence of several creditors, with each debtor liable
or of several debtors, or of several creditors only for his part in the
and debtors, by virtue of which, each of the price or value of the
creditors has a right to demand, and each of prestation.
the debtors is bound to render compliance with
his proportionate part of the prestation which
constitute the object of the obligation. Solidary Obligations
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
Page 271 of 532

render, entire compliance with the prestation KINDS OF SOLIDARY OBLIGATIONS

which constitutes the object of the obligation.
As to Source
The indivisibility of an obligation does not 1. Legal – imposed by law
necessarily give rise to solidarity. Nor does 2. Conventional – agreed upon by
solidarity of itself imply indivisibility. [Art. 1210, parties
CC] 3. Real – imposed by the nature of the
obligation
Solidarity may exist although the creditors and
the debtors may not be bound in the same As to Parties Bound
manner and by the same periods and 1. Active (solidarity among creditors) –
conditions. [Art. 1211, CC] Each creditor has the authority to claim
and enforce the rights of all, with the
Solidarity Indivisibility resulting obligation of paying everyone
what belongs to him.
Refers to the legal tie Refers to the 2. Passive (solidarity among debtors) –
(vinculum juris), and prestation that is not Each debtor can be made to answer for
consequently to the capable of partial the others, with the right on the part of
subjects or parties of performance the debtor-payor to recover from the
the obligation others their respective shares.
3. Mixed (solidarity among creditors and
More than one Exists even if there is debtors) – The creditor can commence
creditor or more than only one creditor an action against anyone of the debtors
one debtor (plurality and/or one debtor for the compliance with the entire
of subjects) obligation minus the portion or share
which corresponds to the debtor
Each creditor may Each creditor cannot affected by the condition or period. [Art.
demand the entire demand more than 1211, CC]
prestation and each his share and each
debtor is bound to debtor is not bound ACTIVE SOLIDARY OBLIGATION (among
pay the entire to pay more than his creditors)
prestation share
Effect of breach: Effect of breach: Art. 1214, CC. The debtor may pay any one
Solidarity remains Obligation is of the solidary creditors; but if any demand,
converted to judicial or extrajudicial, has been made by
indemnity for one of them, payment should be made to
damages him.
All debtors are liable Only the debtors

Effects of Active Solidarity [Tolentino]
for breach committed guilty of breach of
1. Death of solidary creditor does not transmit
by a co-debtor obligation is liable for
solidarity to his heirs but rather to all of
damages
them taken together (joint)
All debtors are Other debtors are 2. Each represents the other in receiving
proportionately liable not liable if one payment and all other advantageous acts
for insolvency of one debtor is insolvent (i.e. interrupt prescription and render the
debtor debtor in default for the benefit of all
creditors)
3. Each one of the solidary creditors may do
whatever may be useful to the others, but
Page 272 of 532

not anything which may be prejudicial to can recover from the co-debtors their
the latter. [Art. 1212, CC] respective shares
4. One creditor does NOT represent all others 2. Each debtor may set up his own claims
in acts such as novation (even if against the creditor as payment of the
advantageous), compensation and obligation
remission. In this case, even if the debtor is 3. Remission of the entire debt affects all
released, the other creditors can still debtors, but when remission is limited
enforce their rights against the creditor who to the share of one debtor, the other
made the novation, compensation or debtors are still liable for the balance of
remission [par. 2, Art. 1215, CC] the obligation
5. The creditor who collects the debt, shall be a. The remission of the whole obligation,
liable to the others for the share in the obtained by one of the solidary debtors,
obligation corresponding to them. [par. 2, does not entitle him to reimbursement
Art. 1215, CC] from his co-debtors. [Art. 1220, CC]
6. The credit and its benefits are divided b. The remission made by the creditor of
equally among them, unless agreement to the share which affects one of the
the contrary. solidary debtors does not release the
7. Debtor may pay any one of the solidary latter from his responsibility towards
creditors; but if any demand, judicial or the co-debtors, in case the debt had
extrajudicial, has been made by one of been totally paid by any one of them
them, payment should be made to him who before the remission was effected. [Art.
demanded [Art. 1214, CC] 1219, CC]
4. All debtors are liable for the loss of the
PASSIVE SOLIDARY OBLIGATION thing due, even if only one of them is at
fault, or after incurring delay it is lost by
General Rules fortuitous event
1. The creditor may proceed against any 5. Interruption of prescription as to one
one of the solidary debtors or some or debtor affects all others, but
all of them simultaneously...so long as renunciation of prescription already
the debt has not been fully collected had does not prejudice the others.
[Art. 1216, CC] (Reason: prescription extinguishes the
2. Payment made by one of the solidary mutual representation among solidary
debtors extinguishes the obligation. If debtors)
two or more solidary debtors offer to 6. Interests due by delay of one is borne
pay, the creditor may choose which by all of them
offer to accept. [Art. 1217, CC]
3. A solidary debtor may, in actions filed DEFENSES AVAILABLE TO A SOLIDARY
by the creditor, avail himself of all DEBTOR [Art. 1222, CC]
defenses which are derived from the
nature of the obligation and of those 1. Those derived from the nature of the
which are personal to him, or pertain to obligation
his own share. For defenses which Defenses inherent in an obligation include
personally belong to the others, such non-existence of the obligation because of
debtor may avail himself thereof only absolute simulation or illicit object, nullity
as regards that part of the debt for due to defect in capacity or consent of all
which the latter are responsible. [Art. debtors, unenforceability, non-
1222, CC] performance of suspension condition or
non-arrival of period, extinguishment of the
Effects of Passive Solidarity [Tolentino] obligation, res judicata, and prescription.
1. Each debtor can be required to pay the
entire obligation, but after payment he
Page 273 of 532

2. Those personal to him Loss of the thing or impossibility of

Personal defenses such as minority, performance of the passive/mixed solidary
insanity, fraud, violence, or intimidation will obligation [Art. 1221, CC]
serve as a complete exemption of the
defendant debtor from liability to the
Without The obligation shall be
creditor fault of extinguished.
the
3. Those pertaining to his own share debtors
4. Those personally belonging to other co- With fault All debtors shall be responsible to
debtors but only as regards that part of of any of the creditor, for the price and the
the debt for which the latter are the payment of damages and interest,
responsible. debtors without prejudice to their action
against the guilty or negligent
Comparing demand upon Solidary Debtor debtor.
and Payment by a Solidary Debtor
Through All debtors shall be responsible to
Demand Upon a Payment by a a the creditor, for the price and the
Solidary Debtor Solidary Debtor fortuitous payment of damages and interest,
event without prejudice to their action
The demand made Full payment made after one against the guilty or negligent
against one of them shall by one of the incurred debtor.
not be an obstacle to solidary debtors in delay
those which may extinguishes the
subsequently be directed obligation [Art.
against the others so 1217, CC]. 6. Obligations with a penal
long as the debt has not
been fully collected [Art. clause
1216, CC].
Penal Clause
The creditor may If two or more An accessory undertaking to assume greater
proceed against any one solidary debtors liability in case of breach. It is generally a sum
of the solidary debtors or offer to pay, the of money, but it can be any other thing like an
all simultaneously [Art. creditor may act or abstention. [Tolentino]
1216, CC]. choose which offer
to accept [Art. If the principal obligation is void, the penal
1217, CC]. clause shall also be void. However, the nullity
of the penal clause does not carry with it the
A creditor’s right to The solidary debtor
nullity of the principal obligation [Art.1230, CC].
proceed against the who made the
surety exists payment shall have
Rules on Penalty
independently of his right the right to claim
to proceed against the from his co-debtors
a. The penalty shall substitute the
principal. the share which indemnity for damages and payment of
corresponds to interest in case of non-compliance [Art.
them with interest, 1226, CC], unless:
UNLESS barred by i. There is an express provision
prescription or to that effect
illegality [Art. 1218, ii. The obligor refuses to pay the
CC]. penalty
iii. The obligor is guilty of fraud in
non-fulfillment
Page 274 of 532

b. Debtor cannot exempt himself from the 3. If the penalty is iniquitous or

performance of the principal obligation unconscionable, even if there has been no
by paying the stipulated penalty unless performance.
this right has been expressly reserved
for him [Art. 1227, CC]. The question of whether a penalty is
c. Creditor cannot demand the fulfillment reasonable or iniquitous can be partly
of the principal obligation and subjective and partly objective. Its resolution
demanding the satisfaction of the would depend on such factors as, but not
penalty at the same time unless the necessarily confined to, the type, extent and
right has been clearly granted to him purpose of the penalty, the nature of the
[Art. 1227, CC]. A tacit or implied grant obligation, the mode of breach and its
is admissible. consequences, the supervening realities, the
i. If the creditor chooses to standing and relationship of the parties, and
demand the satisfaction of the like, the application of which, by and large,
the penalty, he cannot is addressed to the sound discretion of the
afterwards demand the court. [Ligutan v CA, G.R. No. 138677 (2002)]
fulfillment of the obligation.
ii. If there was fault on the part
of the debtor, creditor may
D. EXTINGUISHMENT OF
demand not only the OBLIGATIONS
satisfaction of the penalty but
also the payment of damages. Modes of extinguishing obligations
iii. If the creditor has chosen to
demand the fulfillment of the Art. 1231, CC. Obligations are extinguished:
principal obligation and the 1. By payment or performance;
performance thereof 2. By the loss of the thing due;
becomes impossible without 3. By the condonation or remission of
his fault, he may still demand the debt;
the satisfaction of the penalty. 4. By the confusion or merger of the
rights of creditor and debtor;
Enforcement of the Penalty 5. By compensation;
The enforcement of the penalty can be 6. By novation.
demanded by the creditor only when the non-
performance is due to the fault or fraud of the Other causes of extinguishment of
debtor. However, the creditor does not have to obligations, such as annulment, rescission,
prove fault or fraud, since the non-performance fulfillment of a resolutory condition, and
gives rise to the presumption of fault. prescription, are governed elsewhere in this
[Tolentino] Code.
Proof of Actual Damage 1. Payment or performance

Proof of actual damage suffered by the creditor
is not necessary in order that the penalty may
be enforced [Art. 1228, CC].
a. Payment
When Penalty may be Reduced [Art. 1229, The delivery of money OR

CC]: The performance of obligation [Art. 1232,
1. If the principal obligation has been partly CC]
complied with.
2. If the principal obligation has been
irregularly complied with.
Page 275 of 532

OBJECT OF PAYMENT 2. Debtor may not be required to make partial

payments
1. Integrity of Prestation
Exception:
General Rule: A debt is understood to have 1. There is an express stipulation that permits
been paid when the thing or service in which partial performance.
the obligation consists has been completely 2. When the debt is in part liquidated and in
delivered or rendered [Art. 1233, CC] part unliquidated, the creditor may demand
and the debtor may effect the payment of
2. Identity of Prestation the former without waiting for the
liquidation of the latter.
For obligations to give: The debtor of a thing
cannot compel the creditor to receive a BY WHOM
different one, although the latter may be of the
same value as, or more valuable than that Payor must have (1) free disposal of the
which is due. [Art. 1244, CC] thing due and (2) capacity to alienate it. [Art.
1239, CC]
For obligations to do or not to do: an act or
forbearance cannot be substituted by another Free disposal of the thing due means that the
act or forbearance against the obligee's will. thing to be delivered must not be subject to any
[Art. 1244, CC] claim or lien or encumbrance of a third person.
Capacity to alienate means that the person is
Exceptions to Art. 1244, CC: not incapacitated to enter into contracts [Arts.
a. If the obligation is facultative [Art. 1206, 1327, 1329, CC] and for that matter, to make a
CC] disposition of the thing due. [de Leon]
b. If the creditor agrees (Dation in payment)
[Art. 1245, CC] Payor may either be:
c. Substantial Performance by Debtor 1. The debtor or his duly authorized agent
(Creditor only has a right to damages) [Art. 2. The debtor’s heir or successor in
1234, CC] interest
3. A third person interested in the
If the obligation has been substantially fulfillment of the obligation (i.e. co-
performed in good faith, the obligor may debtor, guarantor) whether the debtor
recover as though there had been a strict consents to it or not, and even without
and complete fulfillment, less damages debtor’s knowledge [Art. 1302, CC]. This
suffered by the obligee. includes payment by a joint debtor [Monte
de Piedad y Caja de Ahorros de Manila v.
d. When the obligee accepts the Rodrigo, G.R. No. L-42928 (1936)] but not
performance, knowing its a solidary co-debtor.
incompleteness or irregularity, and 4. A third person not interested in the
without expressing any protest or obligation; but the creditor is not bound to
objection, the obligation is deemed fully accept payment by him, unless there is a
complied with. [Art. 1235, CC] stipulation to the contrary [Art. 1236, CC].
Necessity of Complete Performance [Art. Payment by a third person

1248, CC] General Rule: The creditor is not bound to
accept payment or performance by a third
General Rules: person who has no interest in the fulfillment
1. Creditor cannot be compelled partially to of the obligation [Art. 1236, CC]
receive the prestations in which the
obligation consists.
Page 276 of 532

Exception: Stipulation to the contrary [Art. interest; or any person authorized to

1236, NCC] receive it [Art. 1240, CC]
2. Payment to a person who is
Reimbursement for Payment Made by a
incapacitated to administer his property
Third Person
shall be valid:
The third party The third party pays 3. if he has kept the thing delivered, OR
pays with the without the 4. insofar as the payment has been
consent of the knowledge or consent beneficial to him. [Art. 1241 par 1, CC]
debtor of the debtor 5. Payment made in good faith to any
person in possession of the credit shall
The third party The third party may only release the debtor. [Art. 1242, CC]
may claim claim insofar as the 6. Payment to a third person
reimbursement payment has been 7. Payment made to the creditor by the debtor
for the full beneficial to the debtor. after the latter has been judicially ordered
amount. [Art. [Art. 1236, CC] to retain the debt shall not be valid. [Art.
1236, CC] 1243, CC]
The third party is The third party cannot General Rule

presumed to be compel the creditor to 1. Valid insofar as it has redounded to the
legally subrogate him on his benefit of the creditor [par. 2, Art. 1241, CC]
subrogated [Art. rights. [Art. 1237, CC] 2. Proof that such payment has redounded to
1302, CC] the benefit of the creditor is required.
Exceptions: [par. 2, Art. 1241, CC]

Reimbursement & Subrogation
1. If after the payment, the third person
Distinguished
acquires the creditor's rights
Reimbursement Subrogation (SUBROGATION);
2. If the creditor ratifies the payment to the
third person (RATIFICATION);
Personal action to Includes 3. If by the creditor's conduct, the debtor has
recover amount paid reimbursement, but been led to believe that the third person
also the exercise of had authority to receive the payment
other rights attached (ESTOPPEL). [Art. 1241, CC]
to the original
obligation (e.g. PLACE OF PAYMENT
guaranties,
securities) 1. In the place designated in the obligation.
2. In the absence of stipulation—
a. If obligation is to deliver a determinate
Art. 1238, CC. Payment made by a third thing: wherever the thing might be at
person who does not intend to be the moment the obligation was
reimbursed by the debtor is deemed to be a constituted.
donation, which requires the debtor's b. In any other case: domicile of debtor
consent. But the payment is in any case valid [Art. 1251]
as to the creditor who has accepted it.
TIME OF PAYMENT
TO WHOM
General Rule: Upon demand
1. The person in whose favor the obligation
has been constituted; orHis successor in
Page 277 of 532

Exceptions: b. Application of Payments

1. When time is of the essence
2. When the debtor loses the benefit of the
period Art. 1252, par. 1, CC. He who has various
3. When the obligation is reciprocal debts of the same kind in favor of one and
the same creditor, may declare at the time of
FORM OF PAYMENT making the payment, to which of them the
same must be applied. Unless the parties so
stipulate, or when the application of payment
Art. 1249, CC. The payment of debts in is made by the party for whose benefit the
money shall be made in the currency term has been constituted, application shall
stipulated, and if it is not possible to deliver not be made as to debts which are not yet
such currency, then in the currency which is due.
legal tender in the Philippines.
The delivery of promissory notes payable to
order, or bills of exchange or other Requisites
mercantile documents shall produce the 1. There is a plurality of debts
effect of payment only when they have been 2. Debts are of the same kind
cashed, or when through the fault of the 3. Debts are owed to the same creditor and
creditor they have been impaired. by the same debtor
In the meantime, the action derived from the 4. All debts must be due, UNLESS parties so
original obligation shall be held in the stipulate, or when application is made by
abeyance. the party for whose benefit the term has
been constituted
5. Payment made is not sufficient to cover all
When payment is made in money/ legal debts [Art. 1252, CC]
tender
General Rule: pay in the currency stipulated Rules on Application of Payments
1. Preferential right of debtor - debtor has the
Exception: payment not possible in such right to select which of his debts he is
currency, then pay in legal tender. paying. [Art. 1252, CC]
2. The debtor makes the designation at the
Legal Tender time he makes the payment.
Such currency which in a given jurisdiction can 3. If not, the creditor makes the application,
be used in the payment of debts, and which by so stating in the receipt that he issues,
cannot be refused by the creditor. unless there is cause for invalidating the
contract.
When payment is not in legal tender 4. If neither the creditor nor debtor exercises
General Rule: The creditor may refuse to the right to apply, or if the application is not
accept payment (e.g. checks) not made in legal valid, the application is made by operation
tender [Philippine Airlines v. Court of Appeals, of law. (see no. 6)
G.R. No. L-49188 (1990)]. 5. If debt produces interest, the payment is
not to be applied to the principal unless the
Extraordinary Inflation or Deflation interests are covered. [Art. 1253, CC]
Art. 1250, CC. In case an extraordinary 6. When no application can be inferred from
inflation or deflation of the currency the circumstances of payment, it is applied:
stipulated should supervene, the value of the (a) to the most onerous debt of the debtor;
currency at the time of the establishment of or (b) if debts due are of the same nature
the obligation shall be the basis of payment, and burden, to all the debts in proportion.
unless there is an agreement to the contrary. [Art. 1254, CC]
Page 278 of 532

7. Rules on application of payment may not proceeds thereof, the latter may obtain
be invoked by a surety or solidary payment of their credits.
guarantor.
Requisites
Exceptions 1. There is a plurality of debts
1. Rules on application of payment cannot be 2. There is a plurality of creditors
made applicable to a person whose 3. Partial or relative insolvency of debtor
obligation as a mere surety is both 4. Acceptance of the cession by the
contingent and singular. There must be full creditors [Art. 1255, CC]
and faithful compliance with the terms of 5. Debtor is released only for the net
the contract. [Reparations Commission v. proceeds unless there is a stipulation to the
Universal Deep Sea Fishing Corp, G.R. contrary.
Nos. L-21901 and L-21996 (1978)]
2. The debtor’s right to apply payment can be Cession and Dation Distinguished
waived and even granted to the creditor if
Cession Dacion en pago
the debtor so agrees [Premiere
Development v. Central Surety, G.R. No. Plurality of creditors One creditor
176246 (2009)]
Debtor must be Debtor not
Limitations partially or relatively necessarily in state
1. Right of creditor to refuse partial payment insolvent of financial difficulty
[Art. 1248, CC]
2. Rule on satisfaction of interest before the Universality of Thing delivered is
Principal. [Art. 1453, CC] property is ceded equivalent of
3. Debtor cannot apply payment to a debt performance
which is not yet liquidated
4. He cannot choose a debt with a period Merely releases Extinguishes
(established for the creditor’s benefit) debtor for the net obligation to the
before the period has arrived. proceeds of things extent of the value
5. Stipulation as to preference of payment. ceded or assigned, of the thing
[Tolentino] unless there is delivered, as
contrary intention agreed upon,
c. Dation in Payment proved or implied
from the conduct of
Delivery and transmission of ownership of the creditor
a thing by the debtor to the creditor as an
Involves all Does not involve all
accepted equivalent of the performance of the
properties of debtor properties of debtor
obligation (dacion en pago).
Creditor does not Creditor becomes
Requisites become owner of the owner
1. Existence of a money obligation ceded property
2. Alienation to the creditor of a property by
the debtor with the creditor’s consent
3. Satisfaction of the money obligation e. Tender of Payment and
Consignation
d. Payment by Cession
Tender of payment
Special form of payment where the debtor Manifestation made by the debtor to the
assigns/abandons ALL his property for the creditor of his desire to comply with his
benefit of his creditors in order that from the obligation, with offer of immediate
Page 279 of 532

performance. [Del Carmen v. Sps. Sabordo, Unless there is an unjust refusal by a creditor
G.R. No. 181723 (2014)] to accept payment from a debtor, Article 1256
cannot apply. [Llobrera v. Fernandez, G.R. No.
Tender of payment must be made in the lawful 142882 (2006)].
currency. The tender of a check to pay for an
obligation is not a valid tender of payment What constitutes valid consignation
thereof. [Soco v. Militante, G.R. No. L-58961, In order that the consignation of the thing due
(1983)] may release the obligor, it must first be
announced to the persons interested in the
Consignation fulfilment of the obligation. The consignation
Deposit of the object of obligation in a shall be ineffectual if it is not made strictly in
competent court in accordance with the rules consonance with the provisions which regulate
prescribed by law whenever the creditor payment. [Art. 1257, CC]
unjustly refuses payment or because of some
circumstances which render direct payment to How consignation is made
the creditor impossible or inadvisable. Consignation shall be made by depositing the
things due at the disposal of judicial
Requisites of consignation authority, before whom the tender of payment
1. There is a debt due shall be proved, in a proper case, and the
2. Consignation is made because of some announcement of the consignation in other
legal cause cases. The consignation having been made,
a. There was tender of payment and the interested parties shall also be notified
creditor refuses without just cause thereof.
to accept it
b. Instances when consignation alone Who bears the expenses
would suffice as provided under The expenses of consignation, when properly
Art. 1256 made, shall be charged against the creditor.
3. Previous notice of consignation was [Art. 1259, CC]
given to those persons interested in the
performance of the obligation. Previous Effects of Consignation
notice is essential to the validity of the If accepted by the creditor or declared properly
consignation and its lack invalidates the made by the Court:
same. [Soco v. Militante, G.R. No. L- 1. Debtor is released in same manner as if
58961, (1983)] (1st notice) he had performed the obligation at the time
4. Amount or thing due was placed at the of consignation
disposal of the court 2. Accrual of interest is suspended from
5. After the consignation has been made, the moment of consignation.
the persons interested were notified 3. Deterioration or loss of the thing or
thereof (2nd notice) amount consigned, occurring without the
fault of debtor, must be borne by creditor
When tender and refusal not required [Art. from the moment of deposit
1256, CC]
1. Creditor is absent or unknown, or does Withdrawal of Consigned Amount by the
not appear at the place of payment. Debtor
2. Creditor is incapacitated to receive the 1. Before approval of the court or acceptance
thing due at the time of payment. of the creditor- Obligation remains in force.
3. Without just cause, creditor refuses to [par. 2, Art. 1260, CC]
give receipt. 2. After approval of the court or acceptance
4. Two or more persons claim the same by the creditor, with the consent of the latter
right to collect (i.e. Interpleader) - Obligation remains in force, but
5. Title of the obligation has been lost. guarantors and co-debtors are liberated.
Page 280 of 532

Preference of the creditor over the thing is When the legal excuse of fortuitous
lost. [Art. 1261, CC] event is not applicable, in cases of:
3. After approval of the court or acceptance 1. Delay or promise to deliver thing
by the creditor, and without creditor’s to two or more persons. [Art.
consent - debtor can no longer withdraw 1165 (3), CC]
the consigned amount since the obligation 2. Nature of the Obligation
has already been extinguished [Pabugais Requires Assumption of Risk
v. Sahijwani, G.R. No. 156846 (2004)] [Art. 1174, CC]
4. If the creditor authorizes the debtor to 3. Liability of a Bailee in fortuitous
withdraw, third persons who were events. [Art. 1942 , CC]
benefited by the consignation are not 4. Liability of a depositary in
prejudiced by the revival of the obligation. fortuitous events. [Art. 1979, CC]
5. Liability of the officious manager
2. Loss of determinate thing due in fortuitous events. [Art. 2147,
CC]
or impossibility or difficulty of
performance 2. Loss of Generic Things
Loss Obligation is NOT Extinguished: In an

obligation to deliver a generic thing, the
1. Loss of Determinate Things loss or destruction of anything of the same
kind does not extinguish the obligation.
General Rule: Loss of determinate things [Art. 1263 , CC]
extinguishes the obligation when: [Par.
1, Art. 1262 CC]. 3. Partial Losses
a. An obligation which consists in the
delivery of a determinate thing Upon the Determination of the Court: The
b. Thing is lost or destroyed courts shall determine whether, under the
c. Debtor is without fault circumstances, the partial loss of the
d. Delay not incurred object of the obligation is so important as to
extinguish the obligation. [Art. 1264, CC]
However, the obligor is still liable for
damages when the following requisites 4. Presumption of Fault
concur: [Par. 2, Art. 1262 CC].
When Presumption Applies [Art. 1265,
e. There is law or a stipulation for CC]:
fortuitous events or the nature of a. Thing is lost while in the
the obligation requires an possession of the debtor
assumption of risk b. No proof of fortuitous event
f. The thing is lost
Effect: It is presumed that loss was due to
Exceptions (When the Loss Does Not his fault.
Extinguish)
a. When the obligation to deliver a Exceptions [Art. 1265, CC]
determinate object arises from a a. There is proof to the contrary
criminal act. [Art. 1268, CC] b. In case of earthquake, flood, storm
b. Acceptance of payments in bad or other natural calamity.
faith. [Art. 2159, CC]
5. Loss in Obligations to Give With
Resolutory Conditions
Page 281 of 532

When the conditions have been imposed Impossibility at Constitution and

with the intention of suspending the Subsequent Impossibility Distinguished
efficacy of an obligation to give, the
Impossibility at Impossibility which
following rules shall be observed in case of
the Time the Supervenes at the Time
the improvement, loss or deterioration of
Obligation was of Performance [Art.
the thing during the pendency of the
Constituted 1266]
condition:
[Art. 1348, CC]
a. If the thing is lost without the fault of
the debtor, the obligation shall be Brings about the Brings about a
extinguished; nullity of the modification or
b. If the thing is lost through the fault of contract extinguishment of the
the debtor, he shall be obliged to pay obligation, depending on
damages; it is understood that the whether or not it is
thing is lost when it perishes, or imputable to the debtor
goes out of commerce, or
disappears in such a way that its
existence is unknown or it cannot be TYPES OF IMPOSSIBILITY
recovered. [Art. 1189, CC] a. Physical and Legal
Physical Impossibility: There is
Effects of Loss [Arts. 1262-1263, CC] physical impossibility when the act, by
reason of its nature, cannot be
Obligation to Obligation to Deliver a accomplished. [Tolentino]
Deliver a Generic Thing
Specific Thing Legal Impossibility: There is legal
impossibility when, the act, by
Obligation is Loss of a generic thing
subsequent law, is prohibited.
extinguished if does not extinguish an
[Tolentino]
the thing was obligation, EXCEPT in
destroyed case of delimited generic
b. Subjective and Objective
without fault of things, where the kind or
Objective Impossibility: There is
the debtor and class is limited itself, and
objective impossibility when the act or
before he has the whole class
service in itself, without considering the
incurred delay. perishes.
person of the obligor, becomes
impossible. [Tolentino]
Impossibility or Difficulty of
Performance Subjective Impossibility: There is
subjective impossibility when the act or
1. Impossibility service cannot be done by the debtor
himself, but it can be accomplished by
The debtor in obligations to do shall also be others. [Tolentino]
released when the prestation becomes legally Partial Impossibility: The rule in Art.
or physically impossible without the fault of 1264 (Partial Loss) may be applied.
the obligor. [Art. 1266, CC] Thus the Courts shall determine
whether it is so important as to
Triggers extinguish the obligation. If the debtor
a. Obligation to do has performed part of the obligation
b. Becomes legally or physically when impossibility occurred, the
impossible creditor must pay the part done as long
as he benefits from it. [Tolentino]
Page 282 of 532

2. Unforeseen Difficulty normal

manner
When the service has become so difficult as to
be manifestly beyond the contemplation of Fault Without May be Without
all the parties, the obligor may also be fault with or Fault
released therefrom, in whole or in part. [Art. without
1267, CC]. fault
Requisites Effect Non- If without Release

a. The event or change in circumstances liability for fault, from the
could not have been foreseen at the delay/ extinguish obligation
time of the execution of the contract; damages es the in whole or
obligation; in part
b. It makes the performance of the
If with
contract extremely difficult but not
fault,
impossible;
liability for
c. The event must not be due to the act damages
of any of the parties; and
d. The contract is for a future prestation.
[Tagaytay Realty Co, Inc. v. Gacutan Creditors’ rights
G.R. No. 160033, July 01, 2015] Art. 1269, CC. The obligation having been
extinguished by the loss of the thing, the
Doctrine of Unforeseen Events creditor shall have all the rights of action
The parties to the contract must be presumed which the debtor may have against third
to have assumed the risks of unfavorable persons by reason of the loss.
developments. It is therefore only in
absolutely exceptional changes of
circumstances that equity demands Requisites:
assistance for the debtor. [PNCC v. CA, G.R. a. Obligation is extinguished
No. 1116896 May 5, 1997.] b. Extinguishment is due to the loss of the
thing
Fortuitous Events, Loss/Impossibility, and
Unforeseen Difficulty Distinguished Effect: Creditor shall have all rights of action
which the debtor may have against third
Fortui- Loss/ Unfor- persons by reason of the loss.
tous Impos- seen
Events sibility Difficul-ty
3. Condonation or remission of
Eleme Could not Perishes, Could not debt
nts have been goes out have been
forseen or of forseen. Definition and General Rule
forseen commerce Service
but or has
General Rules
inevitable. disappear become so
Causes s difficult but
1. Condonation or remission is essentially
loss of the not gratuitous, and
thing or impossible. 2. requires the acceptance by the
obligation obligor.
could not 3. It may be made expressly or
be impliedly.
complied 4. One and the other kinds shall be
with in the subject to the rules which govern
inofficious donations. Express
Page 283 of 532

condonation shall, furthermore, comply b. Implied Condonation

with the forms of donation. [Art. 1270,
CC] It is inferred from the acts of the parties.
Requisites [Tolentino] 2. As to Extent

1. The debt must be existing and a. Total - extinguishes the entire
demandable; obligation; or
2. The renunciation must be gratuitous; b. Partial - refers to only a particular
and aspect of the obligation, i.e. amount of
3. The debtor must accept the remission. indebtedness or an accessory
obligation. [Tolentino]
Effect: The obligation is extinguished.
3. As to Manner
Definition a. Inter vivos - effective during the
Remission is an act of liberality, by virtue of lifetime of the creditor; or
which, without receiving any equivalent, the b. Mortis Causa - effective upon the
creditor renounces the enforcement of the death of the creditor.
obligation. The obligation is extinguished either
in whole or in such part of the same to which Rules and Form
remission refers. [Tolentino]
1. Express Remission
If 2nd Requisite not Met
If the renunciation is not gratuitous, the nature Art. 1270 (2), CC: One and the other kinds
of the act changes and it may become: shall be subject to the rules which govern
1. Dation in payment – when the creditor inofficious donations. Express condonation
receives a thing different from that shall, furthermore, comply with the forms of
stipulated; donation.
2. Novation – when the object or
principal conditions of the obligation The law subjects express remission to the
have changed; or same formalities as donations.
3. Compromise – when the matter
renounced is in litigation or dispute and Express Remission of Movable or Personal
in exchange of some concession which Property
the creditor receives. [Tolentino] The donation of a movable may be made orally
or in writing.
Kinds of Remission
An oral donation requires the simultaneous
1. As to Form delivery of the thing or of the document
a. Express Condonation representing the right donated.
It is formally: in accordance with forms of If the value of the personal property donated
ordinary donations. [Art. 1270, CC] exceeds five thousand pesos, the donation
and the acceptance shall be made in writing.
An express remission must be accepted in Otherwise, the donation shall be void. [Art. 748,
order to be effective. CC]
When the debt refers to movable or Express Remission of Immovable or Real

personal property, Art. 748 will govern; if it Property
refers to immovable or real property, Art. In order that the donation of an immovable
749 applies. may be valid, it must be made in a public
document, specifying therein the property
Page 284 of 532

donated and the value of the charges which the

donee must satisfy. Presumption of Delivery
Whenever the private document in which the
The acceptance may be made in the same debt appears is found in the possession of the
deed of donation or in a separate public debtor, it shall be presumed that the creditor
document, but it shall not take effect unless it delivered it voluntarily, unless the contrary is
is done during the lifetime of the donor. proved. [Art. 1272, CC]
If the acceptance is made in a separate Trigger: The private document in which the
instrument, the donor shall be notified thereof debt appears is found in the possession of the
in an authentic form, and this step shall be debtor.
noted in both instruments. [Art. 749, CC]
Effect: There is a presumption that it has been
2. Implied Remission voluntarily delivered by the creditor.
Presumption of Renunciation Exception: The contrary is proved.

The delivery of a private document evidencing
a credit, made voluntarily by the creditor to the 3. Partial Remission
debtor, implies the renunciation of the action
which the former had against the latter [Art. Renunciation of the principal debt shall
1271, CC] extinguish the accessory obligations, but
remission of the latter leaves the principal
Trigger: (1) Delivery of a private document obligation in force. [Art. 1273, CC]
evidencing a credit; and (2) delivery was made
voluntarily by the creditor to the debtor Trigger: The remission was only to the extent
of the accessory obligation
Effect: There will be implied renunciation. Effect: The principal obligation remains in
force
Exception: The contrary is proved.
4. Other Rules on Donation Applicable to
Note: If in order to nullify this waiver it should Remission
be claimed to be inofficious, the debtor and
his heirs may uphold it by proving that the Condonation or remission is essentially a
delivery of the document was made in virtue of donation. It is a bilateral act which requires
payment of the debt. [Art. 1271, CC] acceptance by the debtor. It is therefore
subject to the rule on donations with respect to
Presumption of Renunciation of Accessory acceptance, amount and revocation; where
Obligation donor refers to the creditor, and donee to the
Accessory obligation of pledge has been debtor, and donation to the remission.
remitted when the thing after its delivery is [Tolentino]
found in the possession of the debtor or third
person. [Art. 1274, CC] On Acceptance
1. The donee must accept the donation
Triggers: (1) A thing is pledged; (2) there has personally, or through an authorized
been a delivery of such thing to the creditor; or person with a special power for the
(3) the thing pledged is found in the possession purpose, or with a general and sufficient
of the debtor, or of a third person who owns the power; otherwise, the donation shall be
thing. void. [Art. 745, CC]
2. Acceptance must be made during the
Effect: It is presumed that the accessory lifetime of the donor and of the donee.
obligation of pledge has been remitted. [Art. 746, CC]
Page 285 of 532

guarantors. Confusion which takes place in the

On Amount person of any of the latter does not extinguish
1. The donation may comprehend all the the obligation.
present property of the donor, or part
thereof, provided he reserves, in full c. In case of joint or solidary obligations
ownership or in usufruct, sufficient
Confusion in Confusion in
means for the support of himself, and
Joint Obligation Solidary
of all relatives who, at the time of the
Obligation
acceptance of the donation, are by law
entitled to be supported by the donor. Confusion DOES NOT Extinguishes the
Without such reservation, the donation extinguish a joint entire obligation,
shall be reduced on petition of any obligation EXCEPT as but the other
person affected. [Art. 750, CC] regards the share of debtors may be
2. The provisions of Art. 750 the person in whom liable for
notwithstanding, no person may give or the two characters reimbursement if
receive, by way of donation, more than concur [Art. 1277, CC] payment was made
he may give or receive by will. The prior to remission.
donation shall be inofficious in all that it
may exceed this limitation. [Art. 752,
CC] Obligation is not extinguished when confusion
takes place in the person of subsidiary debtor
Effect: Renunciation of the principal debt shall (i.e. guarantor), but merger in the person of the
extinguish the accessory obligations, but principal debtor shall benefit the former.
remission of the latter leaves the principal
obligation in force. [Art. 1273, CC] Note: Where, however, the mortgagee
acquires ownership of the entire mortgaged
property, the mortgage is extinguished; but this
4. Confusion does not necessarily mean the extinguishment
of the obligation secured thereby, which may
Definition
become an unsecured obligation.
The meeting in one person of the qualities of
creditor and debtor of the same obligation.
[Tolentino] 5. Compensation
Requisites Definition [Art. 1278, CC]

a. It should take place between principal Compensation shall take place when two
debtor and creditor; persons, in their own right, are creditors and
b. The very same obligation must be involved; debtors of each other.
and
c. The confusion must be total, i.e. as regards Requisites [Art. 1279, CC]
the whole obligation. [Valmonte v. CA, G.R. a. Each obligor is bound principally, and at
No. L-41621, February 18, 1999] the same time a principal creditor of the
other;
Effects b. Both debts must consist in a sum of money,
a. In general or if the things due are consumable, of the
The obligation is extinguished from the time the same kind and quality;
characters of the debtor and creditor are
merged in the same person. [Art. 1275, CC] Note: The term ‘consumable’ is
erroneously used in Art 1279. The
b. Confusion among the Guarantors appropriate term is ‘fungible’. [Tolentino]
A merger which takes place in the person of the
principal debtor or creditor benefits the c. Both debts are due;
Page 286 of 532

d. Debts are liquidated and demandable; and

There are two persons There is only one
e. There must be no retention or controversy
who are mutually person whom the
over either of the debts, commenced by
debtors and creditors characters of the
third persons and communicated in due
of each other in two creditor and debtor
time to the debtor.
separate obligations, meet.
each arising from the
To warrant the application of set off under
same cause.
Article 1278 of the Civil Code, the debtor’s
admission of his obligation must be clear
and categorical and not one which merely Compensation Payment
arise by inference or implication from the
customary execution of official documents in
assuming the responsibilities of a predecessor Capacity to dispose Requires capacity
[Bangko Sentral v. COA, G.R. No. 168964 and receive the thing to dispose of the
(2006)] is unnecessary since thing paid and
compensation capacity to receive
Nature and Effects operates by law
General Rule May be partial Must be total

When all requisites mentioned in Art. 1279 are performance
present, compensation takes effect by
operation of law, and extinguishes both
debts to the concurrent amount, even
though the creditors and debtors are not aware Compensation Counterclaim
of the compensation. [Art. 1290, CC]
Takes place by Must be pleaded to
By Operation of Law operation of law be effectual
Compensation takes place by operation of law,
even though the debts may be payable at
different places, but there shall be an indemnity Kinds of Compensation
for expenses of exchange or transportation to
the place of payment. [Art. 1286 CC] As to extent [Art. 1281, CC]
1. Total – when two debts are of the same
Compensation takes effect by operation of law amount
even without the consent or knowledge of 2. Partial - when the two obligations are of
the parties concerned when all the different amounts and a balance remain
requisites mentioned in Article 1279 of the
Civil Code are present. [Trinidad v. Acapulco, As to cause
G.R. No. 147477, June 27, 2006.] 1. Legal
2. Voluntary
Compensation Distinguished from Other 3. Judicial
Modes of Extinguishment 4. Facultative
Compensation Confusion
LEGAL COMPENSATION
Takes place by operation of law from the
There must always be Involves only one moment all requisites are present.
two obligations. obligation.
Since it takes place ipso jure, when used as a
defense, it retroacts to the date when all its
requisites are fulfilled.
Page 287 of 532

This kind of compensation can only be set up

Art. 1290, CC. When all the requisites
at the option of a creditor, when legal
mentioned in article 1279 are present,
compensation cannot take place because
compensation takes effect by operation of
some legal requisites in favor of the creditor are
law, and extinguishes both debts to the
lacking.
concurrent amount, even though the
creditors and debtors are not aware of the
Obligations which cannot be compensated
compensation.
[Arts. 1287-1288, CC]
1. Contracts of depositum
Legal compensation may apply to: 2. Contracts of commodatum
1. Awards of attorney’s fees, against the 3. Future support due by gratuitous title
litigant and not his lawyer [Gan Tion v. CA, 4. Civil liability arising from a penal offense
G.R. No. L-22490 (1969)] 5. Obligations due to the government
2. Bank deposits, against the accounts of a 6. Damage caused to the partnership by a
depositor whose checks were dishonored partner
[BPI v. CA, G.R. No. 116792 (1996)]
Right of a Guarantor
VOLUNTARY COMPENSATION A guarantor may set up compensation as
Takes place when parties who are mutually regards what the creditor may owe the principal
creditors and debtors of each other agree to debtor. [Art. 1280, CC]
compensate their respective obligations even
though one of the requisites of compensation Effect of Assignment of Rights by the
may be lacking. Creditor to a Third Person [Art. 1285, CC]
With Debtor cannot set up against
Art. 1282, CC. The parties may agree upon debtor’s assignee compensation
the compensation of debts which are not yet consent pertaining to him against
due. assignor UNLESS he
reserved such right at the time
The only requisites of conventional he gave his consent
compensation are (1) that each of the parties
With Debtor may set up
can dispose of the credit he seeks to
debtor’s compensation of debts
compensate, and (2) that they agree to the
knowledge previous to the assignment
mutual extinguishment of their credits
but but not of subsequent ones
[United Planters v. CA, G.R. No. 126890
without
((2009)].
consent
JUDICIAL COMPENSATION Without Debtor may set up
Takes place by judicial decree. debtor’s compensation of all credits
knowledge prior and also later to the
Art. 1283, CC. If one of the parties to a suit assignment until he had
over an obligation has a claim for damages knowledge of the assignment
against the other, the former may set it off by
proving his right to said damages and the Order of Compensation
amount thereof. If a person should have against him several
debts which are susceptible of compensation,
FACULTATIVE COMPENSATION the rules on application of payments shall apply
When it can be claimed by one of the parties to the order of the compensation. [Art. 1289
who, however, has the right to object to it. CC]
Page 288 of 532

6. Novation void: No void: No

novation. novation.
Obligations may be modified by:
a. Changing their object or principal b. Original B. New
conditions; obligation obligation
b. Substituting the person of the debtor; and voidable: voidable:
c. Subrogating a third person in the rights of Effective if Novation is
the creditor. [Art. 1291, CC] contract is effective.
ratified before
Unlike other modes of extinguishment, it is a novation.
juridical act of dual function—it
extinguishes an obligation, and at the same
Accessory Obligations
time, it creates a new one in lieu of the old. It
Accessory obligations are also extinguished,
operates as a relative, not an absolute,
but may subsist only insofar as they may
extinction.
benefit third persons who did not give their
consent to the novation. [Art. 1296, CC]
Requisites:
a. A previous valid obligation
Accidental Modifications
b. Agreement of all the parties to the new
The extension or shortening of the period for
obligation
the performance of the obligation is generally
c. Animus novandi or intent to novate
considered as merely accidental and does not
d. Substantial difference between old and
bring about a novation. [Tolentino]
new obligations and, consequently,
extinguishment of the old obligation
Original or new obligation with suspensive
e. Validity of the new obligation
or resolutory condition
Effects Art. 1299, CC. If the original obligation was
subject to a suspensive or resolutory
In General If Original If New
condition, the new obligation shall be under
Obligation is Obligation
the same condition, unless it is otherwise
Void is Void
stipulated.
Old Novation is New
obligation is void if the obligation is
Compatible Incompatible
extinguished original void, the old
Conditions Conditions
and obligation was obligation
replaced by void, EXCEPT subsists, a. Fulfillment of both a. Original
the new one when UNLESS the conditions: new obligation is
stipulated. annulment parties obligation becomes extinguished, while
may be intended
demandable. new obligation exists.
claimed only that the
by the debtor, former b. Fulfillment of b. Demandability
or when relations condition concerning shall be subject to
ratification shall be the original fulfillment/
validates acts extinguished obligation: old nonfulfillment of the
that are in any event obligation is revived; condition affecting it.
voidable [Art. [Art. 1297,
new obligation loses
1298, CC] CC] force.
a. Original a. New
obligation is obligation
Page 289 of 532

c. Fulfillment of AS TO ESSENCE OR OBJECT

condition concerning
the new obligation: Objective/Real Subjective/Personal
no novation;
requisite of a 1. Change 1. Substitution of
previous valid and of the subject debtors
effective obligation matter; a. Expromision
lacking. 2. Change b. Delegacion
of cause or 2. Subrogation of a third
consideration; or person to the rights of
Kinds of Novation 3. Change the creditor
of the principal a. Conventional
AS TO FORM conditions or b. Legal
1. Express – declared in unequivocal terms terms
2. Implied – the old and new obligations are
on every point incompatible with each other
1. Substitution of Debtors
Novation is not presumed
In the absence of an unequivocal declaration of Expromision Delegacion
extinguishment of the pre-existing obligation,
only proof of incompatibility between the old
and new obligation would warrant a novation Initiative for change Debtor
by implication. [California Bus Line v. State does not emanate from (delegante)
Investment, G.R. No. 147950 (2003)] the debtor, and may offers or initiates
even be made without the change, and
Test of Incompatibility his knowledge. the creditor
The test of incompatibility is whether or not the (delegatorio)
two obligations can stand together, each one accepts a third
having its independent existence. If they person
cannot, they are incompatible and the latter (delegado) as
obligation novates the first. consenting to the
substitution.
The incompatibility must take place in any of
the essential elements of the obligation, such Requisites
as its object, cause or principal conditions
thereof; otherwise, the change would be 1. Consent of the Consent of
merely modificatory in nature and insufficient to creditor and the new 1. old debtor;
extinguish the original obligation [Quinto v. debtor; and 2. new debtor;
People, G.R. No. 126712 (1999)] 2. Knowledge or and
consent of the old debtor 3. creditor.
AS TO ESSENCE OR OBJECT is not required.
1. Objective/Real
Effects
2. Subjective/Personal
Page 290 of 532

original agreement. [Molino v. Security Diners

1. Old debtor is 1. Insolvency of
International Corp, G.R. No. 136780 (2001)].
released the new debtor
2. Insolvency of revives the
2. Subrogation
the new debtor obligation of the
does not revive old debtor if it was
Transfers to the person subrogated the credit
the old anterior and
with all the rights thereto appertaining, either
obligation in public, and
against the debtor or against third persons, be
case the old known to the old
they guarantors or possessors of mortgages,
debtor did not debtor.
subject to stipulation in a conventional
agree to 2. New debtor
subrogation. [Art. 1303, CC]
expromision. can demand
3. If with the reimbursement of
Effects
knowledge and the entire amount
consent of the he has paid from Total Partial
old debtor, the the original
new debtor can debtor. He may Transfers to the A creditor, to whom
demand compel the person partial payment has been
reimbursement creditor to subrogated, the made, may exercise his
of the entire subrogate him to credit with all the right for the remainder,
amount paid and all of his rights. rights thereto and shall be preferred to
with subrogation appertaining, the person subrogated in
of creditor’s either against his place in virtue of the
rights. the debtor or partial payment.
4. If without third persons.
knowledge of
the old debtor, Conventional Subrogation – takes place by
the new debtor agreement of parties
can demand
reimbursement Difference between Conventional
only up to the Subrogation and Assignment of Credit
extent that the [Licaros v. Gatmaitan, G.R. No. 142838
latter has been (2001)]
benefited
without Conventional Assignment of credit
subrogation of subrogation
creditor’s rights.
Debtor’s consent Debtor’s consent is not
is necessary. required.
For subjective novation, it is insufficient that
the juridical relation between the parties to Extinguishes an Refers to the same
the original contract is extended to a third obligation and right which passes from
person. If the old debtor is not released, no gives rise to a new one person to another,
novation occurs and the third person who has one. without modifying or
assumed the debtor’s obligation becomes extinguishing the
merely a co-debtor or surety or co-surety. obligation.
[Conchinyan, Jr. v. R&B Surety and Insurance
Company, G.R. No. L-47369, (1987)] Defects/vices in Defects/vices in the old
the old obligation obligation are not
An accessory surety may not be released if he are cured. cured.
expressly waives his discharge from the
obligation in case of change or novation in the
Page 291 of 532

Legal Subrogation
The stage to The stage to
Takes place by operation of law.
look at to look at to
determine the determine
Legal subrogation is not presumed, except
status of the whether
in the following circumstances:
contract (i.e., there has
a. When creditor pays another creditor
valid, voidable, been a
who is preferred, even without the
void, breach of
debtor’s knowledge
unenforceable) the contract
b. When a third person not interested in
the obligation pays with the express or
tacit approval of the debtor 2. Classification
c. When, even without the knowledge of
the debtor, a person interested in the a. To their subject matter
fulfillment of the obligation pays, • Things, e.g. sale, deposit, pledge
without prejudice to the effects of • Services, e.g. agency, lease of
confusion as to the latter’s share [Art. services
1302, CC]
d.
b. To formation or perfection
• Consensual – consent is sufficient to
CONTRACTS perfect the contract [Art. 1315, CC]
• Real – delivery, actual or constructive,
is required in addition to consent [Art.
A.GENERAL 1316, CC]
PROVISIONS • Solemn or formal – where special
formalities are required for perfection
[Art. 1356, CC]
1. Stages of Contracts c. To relation to other contracts

• Principal – may exist alone; e.g. lease
a. Preparation (conception or “generation” or • Accessory – depends on another
negotiation) – begins from time the parties contract for its existence, e.g. guaranty
manifest their interest and ends prior to the • Preparatory – a preliminary step
moment of agreement towards the celebration of a
b. Perfection (or birth) – when the parties subsequent contract; e.g. agency
agreed upon essential elements of contract
c. Consummation (or death) - when parties d. To form
fulfill or perform the agreement • Common or informal – may be
entered into in whatever form as long
Preparation Perfection Consum- as there is consent, object and cause
mation • Special or formal – required by law to
be in a certain specified form
Exchanges Parties come Parties
of offers and to an perform e. To cause/by equivalence of prestations
counter- agreement. their • Onerous – there is an exchange of
offers. obligations correlative values, e. g. sale
All the under the • Remuneratory – where the
No contract essential contract outstanding prestation is premised
yet, thus no requisites upon services or benefits already
binding concur received
effect
Page 292 of 532

• Gratuitous – where no correlative

Book, by the rules governing the most
prestation is received by one party, e.g. analogous nominate contracts, and by the
donation, commodatum customs of the place.
f. To purpose
• Transfer of ownership, e.g. sale 3. Essential requisites
• Conveyance of Use, e.g. commodatum
• Rendition of Service, e.g. agency
Art 1318, CC. There is no contract unless
the following requisites concur:
g. To time of fulfillment
a. Consent of the contracting parties;
• Executed – where the obligations are
b. Object certain which is the subject
fulfilled at the time the contract is
matter of the contract
entered into
c. Cause of the obligation which is
• Executory – where fulfillment of
established
obligations does not take place at the
time the contract is made
a. Consent
h. To risk
• Commutative – fulfillment is The meeting of the minds of the parties on
predetermined in advance the subject matter and cause of the contract.
• Aleatory – fulfillment is dependent
upon chance The facts that the signatures of the witnesses
and the notary public were forged does not
i. To the nature of the vinculum produced negate the existence of the contract for as
• Unilateral – only one party is bound by long as the parties consented to it. The
the prestation, e.g. commodatum signatures of the witnesses and the notary
• Bilateral – both parties are bound by public are necessary simply to make the
reciprocal prestations, e.g. sale contract binding on the third person. [Soriano
o All contracts are bilateral in the v. Soriano, G.R. No. 130348 (2007)]
consent, but not all are bilateral
in effects. Requisites for valid consent
a. It must be manifested by the concurrence
j. To their designation/name of the offer and acceptance [Arts. 1319-
• Nominate – where the law gives the 1326, CC].
contract a special designation or b. The contracting parties must possess the
particular name; e.g. deposit necessary legal capacity [Arts. 1327-1329,
• Innominate – where the contract has CC].
no special name c. It must be intelligent, free, spontaneous,
o Do ut des (I give so that you and real (not vitiated) [Arts. 1330-1346,
may give) CC].
o Do ut facias (I give so that you
may do) CONCURRENCE OF OFFER AND
o Facio ut facias (I do so that you ACCEPTANCE
may do)
o Facio ut des (I do so that you A contract is perfected by mere consent. From
may give) the moment of a meeting of the offer and the
acceptance upon the object and the cause
that would constitute the contract, consent
Art. 1307, CC. Innominate contracts shall be
arises. However, “the offer must be certain”
regulated by the stipulations of the parties,
and “the acceptance seasonable and
by the provisions of Titles I and II of this
absolute; if qualified, the acceptance would
Page 293 of 532

merely constitute a counteroffer. [Insular Life v. d. Lapse of the time stated in the offer
Asset Builders Corp., G.R. No. 147410 (2004)] without acceptance being conveyed
e. Revocation of the offer before learning of
OFFER acceptance
A unilateral proposition which one party makes f. Supervening illegality before acceptance
to the other for the celebration of the contract. [Reyes and Puno]
[Tolentino]
ACCEPTANCE
Invitation to make offers (Advertisements) To produce a contract, the acceptance must
a. Business Advertisements of things for not qualify the terms of the offer. It is necessary
sale are NOT definite offers, just invitations that the acceptance be unequivocal and
to make an offer, UNLESS the contrary unconditional, and the acceptance and the
appears [Art. 1325, CC]. proposition shall be without any variation
b. Advertisement for bidders are invitations whatsoever; and any modification or variation
to make proposals, the advertiser is NOT from the terms of the offer annuls the latter and
bound to accept the lowest or highest frees the offeror. [Tolentino]
bid; UNLESS the contrary appears. The
bidder is the offeror [Art. 1326, CC]. Acceptance must be absolute, unconditional,
and without variance of any sort from the offer.
The Terms and Conditions of the bidding It must also be made known to the offeror.
disseminated… constitutes the An acceptance not made in the manner
"advertisement" to bid on the project. The prescribed is not effective but constitutes a
bid proposals or quotations submitted by counter-offer. [Malbarosa v. CA, G.R. No.
the prospective suppliers… are the offers. 125761 (2003)]
The reply… constitutes the acceptance or
rejection of the respective offers. [Jardine Requisites of Acceptance
Davies v. CA, G.R. No. 128066 (2000)] a. Unqualified and unconditional, i.e. it
c. Statements of intention: no contract must conform with all the terms of the offer,
results even if accepted. otherwise it is a counter-offer [Art. 1319,
CC]
In a letter informing another that the sender b. Directed and communicated to the offeror
was “in a position and is willing to entertain” and learned by him [Art. 1319, CC] If made
the purchase of a yacht under some terms, through an agent, the offer is accepted
the word “entertain” applied to an act does from the time the acceptance is
not mean the resolution to perform said act, communicated to such agent. [Art. 1322,
but simply a position to deliberate for CC]
deciding to perform or not to perform said c. Made within the proper time
act. It was merely a position to deliberate d. May be express/implied, but is not
whether or not he would purchase the presumed [Art 1320, CC]. Time, place and
yacht and invitation to a proposal being manner of acceptance may be fixed by
made to him, which might be accepted by offeror [Art 1321, CC].
him or not. [Rosenstock v. Burke, G.R. No.
20732 (1924)] Cognition Theory
Acceptance made by letter or telegram does
Termination of Offer not bind the offeror except from the time it
a. Rejection by the offeree came to his knowledge. The contract, in such a
b. Incapacity (death, civil interdiction, case, is presumed to have been entered into in
insanity, or insolvency) of the offeror or the place where the offer was made. [par. 2,
offeree before acceptance is conveyed Art. 1319, CC]
[Art. 1323, CC]
c. Submission of a counter-offer
Page 294 of 532

Option Contract 1. Where necessaries are sold or

A preparatory contract in which one party delivered [Art 1489, CC]
grants to the other, for a fixed period, the option 2. Where the minor actively
to decide whether or not to enter into a principal misrepresents his age (estoppel)
contract. [Art. 1324, CC] 3. When it involves a natural obligation
and such obligation is fulfilled
voluntarily by the minor [Art. 1425-27,
With Without
CC]
consideration consideration
4. Contracts entered into by guardians
or legal representatives
Offeror cannot Offeror may withdraw 5. When upon reaching the age of
unilaterally by communicating majority they ratify the same
withdraw his offer. withdrawal to the 6. When a minor opens a savings
offeree before account without the assistance of his
acceptance. parents, provided that the minor is at
least 7 years old and can read and
write [PD 1734].
Art. 1324, CC provides the General Rule b. Insane or demented persons, UNLESS
regarding offer and acceptance: when the they contract during a lucid interval. [Art.
offerer gives to the offeree a certain period to 1328, CC]
accept, "the offer may be withdrawn at any c. Deaf-mutes who do not know how to read
time before acceptance" except when the AND write.
option is founded upon consideration.
Minors were held in estoppel through active
However, Art. 1479, CC modifies the General misrepresentation. [Mercado v. Espiritu, G.R.
Rule, which applies to "a promise to buy and No. L-11872 (1917)]
sell" specifically. This rule requires that a
promise to sell to be valid and binding must be There is no estoppel if the minority was
supported by a consideration distinct from the known by the other party, and there was no
price. Otherwise, the option can still be active misrepresentation on the part of the
withdrawn, even if accepted. [Tuazon v. Del minors. [Bambalan v. Maramba, G.R. No. L-
Rosario-Suarez, G.R. No. 168325 (2010)] 27710 (1928)]
NECESSARY LEGAL CAPACITY Persons Disqualified to Contract

a. Those under civil interdiction for
There are two types of void contracts: transactions inter vivos [Art. 34, RPC]
a. Those where one of the essential b. Undischarged insolvents [Sec. 24,
requisites of a valid contract as provided Insolvency Law]
for by Article 1318 of the Civil Code is c. Husband and wife cannot donate to each
totally wanting; and other [Art. 123, FC], nor sell to each other
b. Those declared to be so under Article if the marriage is under the regime of
1409 of the Civil Code. By contrast, a Absolute Community of Property [Art.
voidable or annullable contract is one in 1490, CC]
which the essential requisites for validity d. The ff. cannot purchase, whether in public
under Article 1318 are present, but vitiated or private sale [Art. 1491, CC]:
by mistake, violence, intimidation, undue 1. Guardian - Property of the ward
influence, or fraud [Art. 1330, CC]. 2. Agent - Property of the Principal
3. Executors and Administrators -
Persons incapacitated to give consent [Art. Property under administration
1327, CC] 4. Public Officers - Property under their
a. Minors, EXCEPT: administration
Page 295 of 532

5. Justices, judges, prosecutors, clerks of Requisites

court, lawyers - property attached in a. The error must be substantial regarding:
litigation 1. The object of the contract (error in re)
which may be:
Incapacity to Give Consent vs. • Mistake as to the identity of the
Disqualification to Contract thing (error in corpore)
Incapacity to Give Disqualification to • Mistake as to the substance of the
Consent Contract thing (error in substantia)
• Mistake as to the conditions of the
Restrains the exercise Restrains the very thing provided, or
of the right to contract right itself • Mistake as to the quantity of the
thing (error in quantitate)
Based upon Based upon public 2. The condition which primarily moved
subjective policy and morality or induced one or both parties to enter
circumstances of the contract.
certain persons 3. Identity or qualifications of one of the
parties (error in persona), but only if
Voidable Void such was the principal cause of the
contract.
INTELLIGENT, FREE, SPONTANEOUS, AND b. The error must be excusable
REAL (NOT VITIATED) c. The error must be a mistake of fact and
not of law.
Vices of Consent (makes contract
voidable) [Art. 1330, CC] Mistake which vitiates consent is an error of
1. Mistake fact, and not an error of law. Ignorance of the
2. Intimidation law excuses no one from compliance therewith
3. Violence [Art. 3, CC]; but the modern tendency is to
4. Undue influence allow an excusable mistake of law to be
5. Fraud invoked as vitiating consent. [Tolentino]
MISTAKE See also Art. 526, CC on Possession: Mistake

“A misunderstanding of the meaning or upon a doubtful or difficult question of law may
implication of something” or a “wrong action or be the basis of good faith.
statement proceeding from a faulty judgment”.
[Domingo Realty v. CA] Ignorantia Facti Excusat vs. Ignorantia
Legis Neminem Excusat
Inadvertent and excusable disregard of a Mistake of Fact Mistake of Law
circumstance material to the contract [Reyes
and Puno] One or both One or both parties arrive
contracting at an erroneous
In order that mistake may invalidate consent, it parties believe conclusion on the
should refer to the substance of the thing that a fact exists interpretation of a
which is the object of the contract, or to those when in reality it question of law or its legal
conditions which have principally moved one or does not, or vice effects
both parties to enter into the contract. versa
[Art.1331, CC]
Vitiates consent Does not vitiate consent
There is no mistake if the party alleging it EXCEPT when it involves
knew the doubt, contingency or risk affecting mutual error as to the
the object of the contract. [Art. 1333, CC] effect of an agreement
Page 296 of 532

when the real purpose is External or Internal or induces the

frustrated. prevents the will to performance of an act
manifest itself
Note: The obligation to show that the terms of
the contract had been fully explained to the Determined by 1) 1) Age 2) Sex 3)
party who is unable to read or understand the Intention 2) Means Condition
language of the contract, when fraud or employed
mistake is alleged, devolves on the party
seeking to enforce it. [Art. 1332, CC] 1) Physical force 1) Intimidation must be
employed must be the determining cause
INTIMIDATION irresistible, or of of the contract OR
One of the contracting parties is compelled by such degree that must have caused the
a reasonable and well-grounded fear of an victim has no other consent to be given
imminent and grave evil upon his person or recourse under the
property, or upon the person or property of his circumstances but 2) Threatened act
spouse, descendants or ascendants, to give to submit must be unjust or
his consent. [Art. 1335, CC] unlawful
2) Such force is the
To determine the degree of intimidation, the determining cause 3) The threat must be
age, sex and condition of the person shall be in giving of consent real and serious
borne in mind. [Art. 1335, CC]
4) Produces a
Requisites reasonable and well-
a. One party is compelled to give his consent grounded fear from the
by a reasonable and well-grounded fear of fact the person has the
an evil; necessary means or
b. The evil must be imminent and grave; ability to inflict
c. The evil must be upon his person or threatened injury
property, spouse, descendants or
ascendants; Note: Violence or intimidation shall annul the
d. The evil must be unjust. obligation, although it may have been
employed by a third person who did not take
VIOLENCE part in the contract. [Art. 1336, CC]
Serious or irresistible force used to wrest
consent [Art. 1335, CC] UNDUE INFLUENCE
When a person takes improper advantage of
Violence Intimidation his power over the will of another, depriving the
latter of a reasonable freedom of choice. [Art.
Serious or Reasonable and well- 1337, CC]
irresistible force grounded fear of an
imminent and grave Requisites
evil upon his person or a. Improper advantage
property, or person or b. Power over the will of another
property of his spouse, c. Deprivation of the latter’s will of a
descendants, or reasonable freedom of choice
ascendants
Circumstances to consider
Physical Moral compulsion a. Relationship of the parties (family, spiritual,
compulsion confidential etc.)
Page 297 of 532

b. That the person unduly influenced was 1. Usual exaggerations in trade, when the
suffering from mental weakness, ignorance other party had an opportunity to know
or in financial distress [Art.1337, CC] the facts [Art. 1340, CC]
2. A mere expression of an opinion
Note: By analogy, undue influence employed UNLESS made by an expert and the
by a third person may annul the contract. other party has relied on the former’s
special knowledge [Art. 1341, CC]
Test of Undue Influence: Whether or not the 3. Misrepresentation made in good faith
influence exerted has so overpowered or [Art. 1343, CC]
subjugates the mind of a contracting party
as to destroy his free agency, making him Note: Not fraudulent, but this may
express the will of another rather than his own. constitute error
[Coso-Fernandez v. Deza, G.R. No. L-16763
(1921)] b. Fraudulent
Failure to disclose facts, when there is a
duty to reveal them, as when the parties
Intimidation Undue Influence
are bound by confidential relations [Art.
Must be an unlawful act There need not 1339, CC]
or unjust act which is be an unjust or
threatened and which unlawful act. Dolo Causante vs. Dolo Incidente
causes the consent to Dolo Causante Dolo Incidente
be given (Causal Fraud) (Incidental Fraud)
Refers to those Refers to those

FRAUD
deceptions or deceptions or
When, through insidious words or
misrepresentations of misrepresentations
machinations of one of the contracting
a serious character which are not
parties, the other is induced to enter into a
employed by one serious in character
contract which, without them, he would not
party and without and without which
have agreed to. [Art. 1338, CC]
which the other party the other party
would not have would have still
In order that fraud may make a contract
entered into the entered into the
voidable, it should be serious and should not
contract contract [Art. 1344,
have been employed by both contracting
CC]
parties. [Art. 1344, CC]
Determines or is the
Requisites:
essential cause of the Refers only to some
a. It must be made in bad faith
consent [Tankeh v. particular or
b. One party must have employed fraud or
DBP, G.R. No. accident of the
insidious words or machinations
171428 (2013)] obligation [Tankeh
c. Damage or injury resulted to the other
v. DBP, G.R. No.
party
171428 (2013)]
d. It must have been serious
e. It induced the other party to enter into a Renders the contract Renders the party
contract voidable liable for damages
f. It must have been employed by one
contracting party upon the other and not
employed by both contracting parties nor Fraud to vitiate consent must fulfill two
by third persons. conditions
1. The fraud must be dolo causante or it
Determining the existence of Fraud must be fraud in obtaining the consent
a. Not Fraudulent of the party. The deceit must be serious.
Page 298 of 532

Absolute vs. Relative Simulation [Art. 1345,

The fraud is serious when it is sufficient to CC]
impress, or to lead an ordinarily prudent
Absolute Relative Simulation
person into error; that which cannot
Simulation (Disimulados)
deceive a prudent person cannot be a
(Simulados)
ground for nullity. The circumstances of
each case should be considered, taking The parties have The parties conceal
into account the personal conditions of the no intention to their true agreement.
victim. be bound at all
2. The fraud must be proven by clear and
convincing evidence and not merely by a Fictitious Disguised contract
preponderance thereof. [ECE Realty v. contract
Mandap, G.R. No. 196182 (2014)]
Void. (Because Bound to their real
Note: However, fraud in its general sense there is an agreement, so long as it
(false representation of a fact) coming about in absolute lack of does not prejudice a
the consummation stage of the sale, as cause) [Art. third person and is not
opposed to the negotiation and perfection 1346, CC] contrary to law, morals,
stages, entitles the aggrieved party to the good customs, public
rescission of the sales contract. [Sps. Tongson order or public policy.
v. Emergency Pawnshop, GR. No. 167874 [Art. 1346, CC]
(2010)]
If the parties merely state a false cause in the
SIMULATION OF CONTRACTS contract to conceal their real agreement, the
Simulation is the declaration of a fictitious contract is relatively simulated and the parties
will, deliberately made by agreement of the are still bound by their real agreement.
parties, in order to produce, for the purposes Hence, where the essential requisites of a
of deception, the appearances of a judicial act contract are present and the simulation refers
which does not exist or is different with that only to the content or terms of the contract, the
which was really executed [Nautica Canning agreement is absolutely binding and
Corporation v. Yumul, G.R. No. 164588 enforceable between the parties and their
(2005)]. There exists an instrument, but there successors in interest. [Valerio v. Refresca,
is no contract. G.R. No. 163687 (2006)]
Requisites of Simulation
a. An outward declaration of will different from b. Object of Contracts
the will of the parties
b. The false appearance must have been The subject matter; the thing, right or service
intended by mutual agreement which is the subject matter of the obligation
c. The purpose is to deceive third persons arising from the contract. [Tolentino]
[Penalosa v. Santos, G.R. No. 133749
(2001)] Requisites
1. Within the commerce of men [Art. 1347,
The primary consideration in determining the CC]
true nature of a contract is the intention of the 2. Not legally or physically impossible [Art.
parties. Such intention is determined not only 1348, CC]
from the express terms of their agreement, but 3. In existence or capable of coming into
also from the contemporaneous and existence [See Arts. 1461, 1493, 1495, CC]
subsequent acts of the parties. [Spouses 4. Determinate or determinable, without the
Lopez v. Sps. Lopez, G.R. No. 161925 (2009)] need of a new contract between the parties
[Arts. 1349 and par. 2, 1460, CC]
Page 299 of 532

What may be the object of a contract [JLT Agro v. Balansag, G.R. No. 141882
General Rule: All things or services may be (2005)]
the object of contracts, which includes future
things [Art. 1347, CC] c. Cause of Contracts
In order that a thing, right, or service may be The essential and impelling reason why a
the object of a contract, it should be in party assumes an obligation.
existence at the moment of the celebration
of the contract, or at least, it can exist Motive, on the other hand, is the particular
subsequently or in the future. reason for a contracting party which does not
affect the other. [Manresa]
A showing of mere inconvenience, unexpected
impediments, or increased expenses is not Requisites
enough to relieve a party of the obligation. [De a. Exists at the time the contract is entered
Castro v. Longa, G.R. No L-2152-53 (1951)] into [Par. 3, Art. 1409, CC]
b. Lawful [Art. 1352, CC]
A future thing may be the object of a contract. c. True or real [Art. 1353, CC]
Such contract may be interpreted as a:
a. Conditional contract, where its efficacy Cause vs. Object
should depend upon the future existence of
Cause Object
the thing.
b. Aleatory contract, where one of the As to Remuneration
contracting parties assumes the risk that
the thing will never come into existence, The service or The thing which is given
e.g. insurance. [Tolentino] benefit which is in remuneration
remunerated
Except [Art. 1347-1349, CC]
a. Things which are outside the commerce of As to Donation
men
b. Intransmissible rights The liberality of The thing which is given
c. Future inheritance except in cases the donor or or donated
authorized by law benefactor
Requisites As to the Thing

1. The succession has not yet been opened;
2. The object of the contract forms part of the Prestation or The thing or service itself
promise of a thing
inheritance; and
or service by the
3. The promissor has an expectancy of a right
other
which is purely hereditary in nature
As to Contracting Parties
d. Services that are contrary to law, morals,
good customs, public order, or public policy Different with May be the same for
e. Impossible things or services respect to each both parties
f. Objects which are indeterminable as to part
their kind, the genus should be expressed
EXCEPTIONS TO THE EXCEPTION

b. In case of marriage settlements under Art.
130, CC
c. In case of partition of properties inter vivos
by the deceased under Art. 1080, NCC
Page 300 of 532

Distinguished from Motive

Contrary to VOID.
Cause Motive law, morals, If parts of a contract are
good customs, illegal but the rest are
Proximate Remote reason for the public policy supported by lawful
reason for contract and public cause, claimant of such
contract order (unlawful has the burden of
cause) showing proof; otherwise,
Objective or Psychological and the whole contract is
juridical reason purely personal reason VOID.
Always the same Differs for each
Contracts with illegal
for each contracting party
cause may still produce
contracting party
effect in certain cases
Illegality affects Illegality does not affect where parties are not of
existence or existence or validity of equal guilt:
validity of the contract (1) innocent party cannot
contract be compelled to perform
his obligation and he may
recover what has already
Cause in contracts [Art. 1350] been given;
Onerous Remuneratory Pure (2) if both parties are
Contracts Contracts Beneficence guilty, neither can sue the
other, the law leaving
them as they are (in pari
delicto, Art. 1411, CC).
The The service or Mere
undertaking benefit which liberality of Falsity of REVOCABLE/VOIDABLE
or the is the cause – cause Parties are given a
promise of remunerated benefactor is stated but is chance to show that a
the thing or untrue cause really exists, and
service by that said cause is true and
the other lawful.
party
Lesion or General Rule: NO
Effect of Lack of Cause, Unlawful Cause, inadequacy of EFFECT.
cause – cause Exception: Inadequacy of
False Cause and Lesion [Arts. 1352 – 1355]
is not cause shall invalidate the
Cause Effect proportionate contract when:
to object (1) there is fraud,
mistake, undue influence
Lack of Cause VOID. (2) when parties
– absence or Note: Cause must exist at intended a donation
total lack of the time of the perfection
cause of the contract; it need not
exist later. Note: Inadequacy of cause may be a badge of
fraud.
Page 301 of 532

instrument.
B. FORMALITY Otherwise, the
contract of partnership
is void. [Art. 1773, CC]
General rule: No form necessary for contracts
provided that all the essential requisites for Contract of The amount of the
their validity are present [Par. 1, Art. 1356, antichresis principal and the
CC] interest, if any, must
be specified in
Exception: writing; otherwise,
1. When the law requires that a contract be in the contract of
some form in order that it may be valid [par. antichresis shall be
2, Art. 1356, CC] void [Art. 2134, CC]
2. When the law requires that a contract be
proved in a certain way to be enforceable Agency to sell Authority of the agent
(Statute of Frauds) [par. 2, Art. 1356, CC] land or any interest must be in writing;
3. When the law requires a contract to be in therein otherwise, the sale
some form for convenience, or to be shall void [Art. 1874,
effective against third parties [Arts. 1357 CC]
and 1358, CC]
Stipulation to pay Must be expressly
interest on loans, made in writing [Art.
Kinds of Formalities Required by Law
interest for the use 1956, CC]
1. For the Validity of Contracts (Ad
of money
Essentia /Ad Solemnitatem/ Solemn
Contracts) Stipulation limiting Must be (1) in writing,
common carrier’s signed by the shipper
Formal or Solemn Special Form duty of or owner; (2)
Contract Required by Law extraordinary supported by a
diligence to valuable
Donation of Must be in a public ordinary diligence consideration; and
Immovables instrument, (3) reasonable, just,
specifying therein the and not contrary to
property donated and public policy [Art.
the value of the 1744, CC]
charges which the
donee must satisfy. Transfer of large Requires transfer of
[Art. 749, CC] cattle the certificate of
registration [Sec.
Donation of Must be in writing; 523, Administrative
movables when otherwise, the Code]
the value of the donation is void. [Art.
personal property 748, CC]
2. For the Purpose of Proving the
donated exceeds
Existence of the Contract (Ad
P5,000
Probationem/ Statute of Frauds)
Partnerships An inventory of said
where immovable property must be The following contracts are
property is made, signed by the UNENFORCEABLE, UNLESS they are
contributed parties and attached ratified:
to the public
Page 302 of 532

1. Those entered into in the name of on whose account the sale is made, it
another person by one who has is a sufficient memorandum;
been: 5. An agreement of the leasing for a
i. given no authority longer period than one year, or for
ii. or legal representation, the sale of real property or of an
iii. or who has acted beyond his interest therein;
powers; 6. A representation as to the credit of a
2. Those that do not comply with the third person
Statute of Frauds
3. Those where both parties are This article speaks of contracts that cannot be
incapable of giving consent to a proven except by written note or memorandum,
contract. [Art. 1403, CC] unless the party charged waives the objection.
[Rule 123, Sec. 21, Rules of Court]
Statute of Frauds
An agreement as to the following shall be This article applies to executory contracts
unenforceable UNLESS: only. [Almirol v. Monserrat, G.R. No. 23717
1. The agreement, or some note or (1925)]
memorandum, thereof, be in writing,
and 3. For the Effectivity of the Contract
2. Subscribed by the party charged, or by Against Third Persons
his agent; evidence, therefore, of the
agreement cannot be received without If the law requires a document or other
the writing, or a secondary evidence of special form (Art. 1357, CC)
its contents. [Art. 1403, CC] 1. The contracting parties may compel
each other to observe that form,
Agreements under the Statute of Frauds once the contract has been perfected.
[Art. 1403, CC]: 2. This right may be exercised
1. An agreement that by its terms is not simultaneously with the action upon the
to be performed within a year from contract.
the making thereof;
2. A special promise to answer for the Art. 1358, CC which requires the embodiment
debt, default, or miscarriage of of certain contacts in a public instrument, is
another; only for convenience, and registration of the
3. An agreement made in consideration instrument only adversely affects third parties.
of marriage, other than a mutual Formal requirements are, therefore, for the
promise to marry; benefit of third parties. Non-compliance
4. An agreement for the sale of goods, therewith does not adversely affect the validity
chattels or things in action, at a of the contract nor the contractual rights and
price not less than five hundred obligations of the parties thereunder. [Fule v.
pesos, unless the buyer accept and CA, G.R. No. 112212 (1998)
receive part of such goods and
chattels, or the evidences, or some of
Art. 1358, CC. The following must appear in
them, of such things in action or pay at
a public document:
the time some part of the purchase
1. Acts and contracts which have for their
money; but when a sale is made by
object the creation, transmission,
auction and entry is made by the
modification or extinguishment of real
auctioneer in his sales book, at the time
rights over immovable property; sales of
of the sale, of the amount and kind of real property or of an interest therein as
property sold, terms of sale, price,
governed by Articles 1403, No. 2, and
names of the purchasers and person 1405;
Page 303 of 532

2. The cession, repudiation or renunciation

of hereditary rights or of those of the C. REFORMATION OF
conjugal partnership of gains;
3. The power to administer property, or any
INSTRUMENTS
other power which has for its object an
act appearing or which should appear in Reformation – remedy in equity by means of
a public document, or should prejudice a which a written instrument is made or
third person; construed so as to express or conform to the
4. The cession of actions or rights real intention of the parties when some error or
proceeding from an act appearing in a mistake has been committed [Reyes and Puno]
public document.
All other contracts where the amount Requisites [Art. 1359, CC]:
involved exceeds five hundred pesos must 1. There must be a meeting of the minds of
appear in writing, even a private one. But the contracting parties
sales of goods, chattels or things in action 2. Their true intention is not expressed in
are governed by Articles, 1403, No. 2 and the instrument;
1405. 3. Such failure to express their true intention
is due to mistake, fraud, inequitable
conduct, or accident; and
Enumerated contracts in Art. 1358, CC are 4. There is clear and convincing proof of
valid even when not reduced into writing, mistake, fraud, inequitable conduct, or
although parties may have recourse under Art. accident.
1357, CC to compel execution of the writing,
except in the following cases: The appellant’s complaint states no cause of
1. Solemn Contracts (action under Art. action, for it fails to allege that the instrument to
1357, CC is not available at all) be reformed does not express the real
2. Real Contracts (action under Art. agreement or intention of the parties. Such
1357, CC is available if there is allegation is essential since the object sought
consent, subject matter, cause, and in an action for reformation is to make an
delivery) instrument conform to the real agreement
3. Contracts under the Statutes of or intention of the parties. Moreover, courts
Fraud (remedy under Art. 1357, CC is do not reform instruments merely for the sake
applicable only if the defense of the of reforming them, but only to enable some
Statute is waived expressly or impliedly party to assert right under them as reformed.
by the party charged [Garcia v. Bisaya, G.R. No. L-8060 (1955)].
Actions under Art. 1357, CC may be exercised Note: If mistake, fraud, inequitable conduct, or
simultaneously with (i.e. need not be separate accident has prevented a meeting of the minds
nor need it precede) the action to enforce the of the parties, the proper remedy is not
contract, although questions of form must be reformation of the instrument but annulment of
decided first. the contract [par. 2, Art. 1359, CC]
The action for reformation of instrument should

not be confused with the action for annulment
of contract. [Veluz v. Veluz, G.R. No. L-23261
(1968)]
Page 304 of 532

Reformation v. Annulment [Veluz v. Veluz, 3. Cases Where Reformation is

supra]
Proper
Reformation of Annulment
Instrument
a. Mistake
Presupposes a valid, Presupposes a The mistake should be of fact generally,
existing contract, in defective contract and not of law [BPI v Fidelity and Surety
which there had been in which the minds Co., G.R. No. L-26743 (1927)]
a meeting of the minds of the parties did
of the parties but the not meet, or the Mutual
instrument drawn up consent of one was Mutual mistake of parties that causes
and signed by them vitiated. failure to disclose real agreement [Art.
does not correctly 1361, CC]
express the terms of
their agreement. Unilateral
1. One party was mistaken, while
Equity of reformation is Intended to declare the other acted fraudulently [Art.
ordinarily limited to the inefficiency 1362, CC]
written agreements, which the contract 2. One party was mistaken, while
and its purpose is to already carries in the other knew or believed that the
establish and itself and to render instrument did not state their real
perpetuate the true the contract agreement, but concealed it from
agreement. inefficacious. the former [Art. 1363, CC]
b. Fraud
1. Burden of Proof Active
If one party was mistaken and the other
The presumption is that an instrument sets out acted fraudulently in such a way that the
the true agreement of the parties and that it instrument does not show their true
was executed for valuable consideration. Thus,
intention [Art. 1362, CC]
when there is some error or mistake in the
contract, the onus probandi is upon the party Passive
who insists that the contract should be When one party was mistaken and the
reformed.
other knew or believed that the
While intentions involve a state of mind, instrument did not state their real
subsequent and contemporaneous acts of agreement [Art. 1363, CC]
the parties as well as the evidentiary facts as
proved and admitted can be reflective of one’s
intention. [Multi-Ventures Capital Management
c. Inequitable conduct
If one party was mistaken and the other
Corporation v Stalwart, G.R. No. 157439
acted fraudulently or inequitably in such a
(2007)]
way that the instrument does not show their
true intention [Art. 1362, CC]
2. Effect of Reformation
d. Accident
In granting reformation, the remedy in equity is When through the ignorance, lack of skill,
not making a new contract for the parties, but negligence or bad faith on the part of the
establishing and perpetuating the real person drafting the instrument or of the
contract between the parties which, under the clerk or typist, the instrument does not
technical rules of law, could not be enforced but express the true intention of the parties
for such reformation. [Quiros vs Arjona, G.R. [Art. 1364, CC]
No. 158901 (2004)]
Page 305 of 532

subsequently ask for its reformation

No fraud exists in the sense that neither of [Art. 1367, CC]
the parties took part therein.
e. Severe Pacto de Retro / Relative

6. Prescriptive Period for
Simulation Reformation
The prescriptive period for actions based upon
Art. 1365, CC. If two parties agree upon the a written contract and for reformation of an
mortgage or pledge of real or personal instrument is ten (10) years under Article 1144
property, but the instrument states that the of the Civil Code. [Rosello-Bentir v. Leanda,
property is sold absolutely or with a right of G.R. No. 128991 (2000)]
repurchase, reformation of the instrument is
proper.
4. Who May Ask for Reformation

a. When through mistake of the parties
b. Either party or his successors in
interest, if the mistake was mutual;
otherwise.
c. Upon petition of the injured party, or his
heirs and assigns [Art. 1368, CC]
d. When through the ignorance, lack of
skill, negligence or bad faith on the part
of the person drafting the instrument or
of the clerk or typist, Courts may order
that the instrument be reformed [Art.
1364, CC]
5. Cases Where Reformation is

Not Proper
1. Simple donations inter vivos—
wherein no condition is imposed—
because donation is an act of liberality
[Art. 725, CC] and cannot be
compelled;
2. Wills—no reformation before the
testator dies because the making of a
will is strictly personal [Art. 784, CC], a
free act [Art. 839, CC], and essentially
revocable [Art. 828, CC];
3. When the real agreement is void—
because there is nothing to reform. The
power of the court to reform is not for
accomplishing a vain thing [Tolentino].
4. Implied Ratification/Estoppel: the
party who has brought an action to
enforce the instrument cannot
Page 306 of 532

D. INTERPRETATION OF CONTRACTS
1. Primacy of Language or terms which he voluntarily consented to, or

impose on him those which he did not.
Intention [Bautista v. CA, G.R. No. 1263655 (2000)]
a. Cardinal/First Rule of b. Rule if Language Contrary to

Interpretation – Literal Meaning Intent – Intent over Literal
Governs Interpretation
If the terms of a contract are clear and leave no If the words appear to be contrary to the
doubt upon the intention of the contracting evident intention of the parties, the latter
parties, the literal meaning of its stipulations shall prevail over the former. [Art. 1370, par. 2,
shall control. [Art. 1370, par. 1, CC] CC]
Application The cardinal test is the intention of the parties,

Where the language of a contract is plain and to be derived from the terms/language of the
unambiguous, its meaning should be contract.
determined without reference to extrinsic facts
or aids. The intention of the parties must be In order to judge the intention of the contracting
gathered from that language, and from that parties, their contemporaneous and
language alone. Courts cannot make for the subsequent acts shall be principally
parties better or more equitable agreements considered. [Art. 1371, CC]
than they themselves have been satisfied to
make, or rewrite contracts because they
operate harshly or inequitably as to one of the
parties, or alter them for the benefit of one party
and to the detriment of the other, or by
construction, relieve one of the parties from the
Page 307 of 532

c. Exclusion to Rules – Distinct Trigger: Words which may have different

and Different Cases significations.
However general the terms of a contract may Effect: They shall be understood in what is
be, they shall not be understood to most keeping with the contract’s nature and
comprehend things that are distinct and object.
cases that are different from those upon
which the parties intended to agree. [Art. g. Interpretation against Party
1372, CC] Causing Obscurity
d. Stipulation Rendered to be The interpretation of obscure words or

Effectual stipulations in a contract shall not favor the
party who caused the obscurity. [Art. 1377, CC]
If some stipulation of any contract should
admit of several meanings, it shall be Interpretation of Contracts of Adhesion
understood as bearing that import which is A contract of adhesion is just as binding as
most adequate to render it effectual. [Art. 1373, ordinary contracts. Contracts of adhesion are
CC] not invalid per se; they are not entirely
prohibited. The one who adheres to the
e. Stipulations Interpreted contract is in reality free to reject it entirely; if
he adheres, he gives his consent.
Together
While ambiguities in a contract of adhesion
The various stipulations of a contract shall be
are to be construed against the party that
interpreted together, attributing to the doubtful
prepared the same, this rule applies only if
ones that sense which may result from all of
the stipulations in such contract are
them taken jointly. [Art. 1374, CC] obscure or ambiguous. If the terms thereof
are clear and leave no doubt upon the intention
Difference between Art. 1373 and Art. 1374
of the contracting parties, the literal meaning of
Art. 1373 Provides that which of the its stipulations shall control. In the latter case,
several meanings of a there would be no need for construction.
stipulation would most [RCBC v. CA G.R. No. 133107(1999)]
adequately render the contract
effectual would be adopted. h. Nomenclature not Decisive of
the Character
Art. 1374 Provides that the various
stipulations of a contract would
A contract is what the law defines it to be, and
be interpreted together, and
not what it is called by the contracting parties.
attributing to doubtful
The Title of the contract does not necessarily
stipulations the sense resulting
determine its nature. [Tolentino]
from the joint interpretation.
i. Separability Clause
f. Interpretation according to
Nature and Object of Contract Another fundamental rule in the interpretation
of contracts is that the terms, clauses and
Words which may have different conditions contrary to law, morals and
significations shall be understood in that public order should be separated from the
which is most in keeping with the nature and valid and legal contract and when such
object of the contract. [Art. 1375, CC] separation can be made because they are
Page 308 of 532

independent of the valid contract. [Kasilag v. 3. Rule 123, Rules of Court

Rodriguez, G.R. No. 46623 (1939)]
Note: This is now found in Secs. 10-19, Rule
Exceptions: 130.
a. Where the statute expressly or by
necessary implication declares the entire
contract void; or Art. 1379, CC. The principles of
b. Where the terms, clauses, and conditions, interpretation stated in Rule 123 of the Rules
by an established connection or by of Court shall likewise be observed in the
manifest intention of the parties, is construction of contracts.
inseparable from the principal obligation,
and is a condition, juridically speaking, of Summary of rules on interpretation [Rule
that the nullity of which it would also 130, ROC]
occasion. [Manresa] 1. Writing is to be interpreted according to its
legal meaning UNLESS parties intended
2. Rules on Doubt [Art. 1378, otherwise. [Sec. 10]
CC] 2. Instrument must be construed to give effect
to all provisions. [Sec. 11]
3. Particular provisions are paramount to
When it is absolutely impossible to settle
general ones when they are inconsistent.
doubts by the rules established in the
[Sec. 12]
preceding articles:
4. The circumstances under which the
instrument was made must be considered.
When doubts are cast The contract shall [Sec. 13]
upon the principal be null and void. 5. The terms of a writing are presumed to
object/s of any have been used in their primary and
contract and it cannot general acceptation unless contrary
be known what may evidence is presented. [Sec. 14]
have been the 6. Written words prevail over printed ones.
intention or will of the [Sec. 15]
parties 7. Experts and interpreters may be used in
explaining language not understood by the
When doubts refer to The least court. [Sec. 16]
the incidental transmission of 8. When conflicting constructions of
circumstances of rights and provisions are equally proper that which is
gratuitous contracts interests shall the most favorable to the party in whose
and it is absolutely prevail. favor the provision was made shall be
impossible to settle accepted. [Sec. 17]
doubts by the rules 9. When an instrument is equally susceptible
of two interpretations, one in favor of
When doubts refer to The doubt shall
natural right and the other against it, the
the incidental be settled in favor
former is to be adopted. [Sec. 18]
circumstances of of the greatest
An instrument may be construed according
onerous contracts and reciprocity of
10.
to usage, in order to determine its true

it is absolutely interests.
character. [Sec. 19]
impossible to settle
doubts by the rules
Page 309 of 532

their condition at the moment prior to the

E. DEFECTIVE celebration of said contract. [Tolentino]
CONTRACTS
[Tolentino] Relief to protect one of the parties or a third
person from all injury and damages which the
contract may cause, to protect some
Rescissible A contract that has caused preferential right [Aquino v. Tañedo, G.R. No.
a particular damage to L-12457 (1919)]
one of the parties or to a
third person and which for Lesion
EQUITABLE REASONS The injury which one of the parties suffers by
may be set aside even if virtue of a contract which is disadvantageous
valid. for him. To give rise to rescission, the lesion
must be known or could have been known at
Annulable or A contract in which
the time of making of the contract. [Tolentino]
Voidable CONSENT of one of the
(contrato nulo) parties is defective, either
Lesion does not invalidate a contract except
because of WANT OF
only in special cases provided by law [Art.
CAPACITY or because it
1355, CC]
is VITIATED, but which
contract is VALID until
Subsidiary Remedy
JUDICIALLY set aside.
Rescission is not a principal remedy, but a
Unenforceable A contract that for some subsidiary one. It can only be availed of only if
reason CANNOT BE the injured party proves that he has no other
ENFORCED, UNLESS legal means to obtain redress for the damage
RATIFIED in the manner caused [Art. 1177, CC]
PROVIDED BY LAW.
Necessary Extent
Void or A contract which is an The rescission shall only be to the extent
Inexistent ABSOLUTE NULLITY and necessary to cover the damages caused, i.e.
produces NO EFFECT, as partial rescission. [Art. 1384, CC]
if it had never been
executed or entered into. b. Characteristics of Rescissible
Contracts
1. Rescissible contracts 1. The defect consists in injury or damage
either to one of the contracting parties
Contracts which are valid until rescinded. All or to third persons;
essential requisites of a contract exist but there 2. Before rescission, they are valid, and
is injury or damage to one of the parties or to therefore, legally effective;
third persons – external or extrinsic defect 3. They can only be attacked directly only
consisting of an economic damage or lesion. and not collaterally;
[Paras] 4. They can be attacked only by a
contracting party or a third person who
a. Rescission is injured or defrauded;
5. They are susceptible of convalidation
Rescission is a remedy granted by law to the only by prescription and not ratification;
contracting parties and even to third persons, and
to secure reparation for damages caused to 6. They must be rescinded within four
them by a contract, even if this should be years, the prescription for actions to
valid, by means of the restoration of things to claim rescission [Art.1389, CC].
Page 310 of 532

5. The person bringing the action must be

c. Rescissible Contracts and Their able to return whatever he may be obliged
Requisites [Arts. 1381-1383, 1385, to restore. [Art. 1385(1), CC]
1389, CC] 6. The object of the contract must not be
legally in the possession of a third person
Art. 1381, CC. The following contracts are who did not act in bad faith [Art. 1385(2),
rescissible: CC]
1. Those which are entered into by
guardians whenever the wards whom Note: For Art. 1381 (4), CC: Any disposition of
they represent suffer lesion by more than the thing subject of litigation or any act which
one-fourth of the value of the things tends to render inutile the court’s impending
which are the object thereof; disposition in such case without the knowledge
2. Those agreed upon in representation of and approval of the litigants or of the court, is
absentees, if the latter suffer the lesion unmistakably and irrefutably indicative of bad
stated in the preceding number; faith.
3. Those undertaken in fraud of creditors
when the latter cannot in any other However, even without knowledge or approval
manner collect the claims due them; from the court, the conveyance of a property
4. Those which refer to things under subject of litigation may still be valid but is
litigation if they have been entered into susceptible for rescission under Art. 1381(4),
by the defendant without the knowledge CC.
and approval of the litigants or of
competent judicial authority; A definitive judicial determination with respect
to the thing subject of litigation is not a
All other contracts specially declared by law condition sine qua non before the rescissory
to be subject to rescission. [Art. 1381, CC] action contemplated under Article 1381(4) of
the Civil Code may be instituted. The primordial
Requisites for Rescission under Art. 1381 purpose of Article 1381(4) of the Civil Code is
(1) (2), CC to secure the possible effectivity of the
1. Contract was entered into by a guardian in impending judgment by a court with respect to
behalf of his ward or by a legal the thing subject of litigation. [Ada v. Baylon,
representative in behalf of an absentee. G.R. No. 182435 (2012)]
[Arts. 1381 (1) and (2) CC]
Requisites before a Contract Entered Into in
Note: A guardian is authorized only to Fraud of Creditors May Be Rescinded under
manage the estate of the ward; should he Art. 1381 (3):
dispose a portion thereof without authority 1. There is a credit existing prior to the
from the court by way of a contract, the celebration of the contract, although not yet
same is unenforceable under Art. 1403(1), due or demandable;
CC, irrespective of whether there is lesion 2. There is fraud, or at least, the intent to
or not. commit fraud to the prejudice of the creditor
2. It was entered into without judicial seeking rescission, which may be
approval. [Art. 1386, CC] presumed or proved [Art 1387, CC];
3. Ward or absentee suffered lesion of more 3. Creditor cannot in any legal manner collect
than one-fourth of the value of the property his credit; insolvency of the debtor is not
which is the object of the contract. [Art. required; and
1381 (1) and (2), CC] 4. The object of the contract must not be
4. There is no other legal means of obtaining legally in the possession of a third person
reparation for the lesion. [Art. 1383, CC] who did not act in bad faith.
Page 311 of 532

Accion Pauliana Do all creditors benefit from the rescission?

The action to rescind contracts in fraud of As a rule, the rescission should benefit only the
creditors. Consequently, accion pauliana creditor who obtained the rescission, because
presupposes a judgment and unsatisfied the rescission is to repair the injury caused to
execution which cannot exist when the debt is him by the fraudulent alienation. If a balance is
not yet demandable at the time the rescissory left after satisfying the claim of the creditor who
action is brought. [Tolentino] brought the action, other creditors who are
qualified to bring an accion pauliana should be
Note: Even secured creditors are entitled to given the benefit of rescission, instead of
accion pauliana. requiring them to bring other rescissory
actions. However, creditors who only became
Payments made in a state of insolvency for such after the fraudulent alienation, cannot
obligations to whose fulfillment the debtor benefit from the rescission.
could not be compelled at the time they were
effected, are also rescissible. [Art. 1382, CC] e. Presumption of Fraud
Requisites Before Payment Made by When alienation of property presumed in fraud
Insolvent can be Rescinded: of creditors:
1. It was made in a state of insolvency; 1. Alienation by gratuitous title if the debtor
2. Obligation must have been one which has not reserved sufficient property to pay
debtor could not be compelled to pay at the all of his debts contracted before alienation
time such payment was effected. [Art. 1387(1), CC]
2. Alienation by onerous title if made by a
Note: A debtor can be compelled to pay by the debtor against whom some judgment has
creditor even before the expiration of the period been rendered in any instance or some writ
since by his insolvency he has already lost his of attachment has been issued [Art.
right to the benefit of such period. [Art. 1198(1), 1387(2), CC]
CC]
Badges of Fraud
d. Effects of Rescission [Art. 1385, A conveyance leaving no property for other
CC] creditors to attach is an evidence of fraud.
[China Banking v. CA, G.R. No. 129644
It creates an obligation of mutual restitution (2000)]:
or the obligation to return the things which were 1. Consideration is fictitious or inadequate;
the object of the contract, together with their 2. Transfer was made while suit had begun or
fruits, and the price with its interests. pending;
3. Sale was upon credit by insolvent debtor;
However, if the object of the contract is in the 4. There was large indebtedness or complete
possession of third persons in good faith, insolvency;
rescission cannot take place and indemnity for 5. Transfer consisted of all or nearly all
damages may be demanded from the person property especially when insolvent or
causing the loss [Art. 1385, CC] greatly;
6. The transfer was made between father and
Rescission prescribes in a period of four years. son when other above circumstances
For persons under guardianship and for present; and
absentees, the period of four years shall not 7. There was failure of vendee to take
begin until the termination of the former's exclusive possession of all property
incapacity, or until the domicile of the latter is embarrassed financially.
known. [Art. 1389, CC]
Page 312 of 532

2. Voidable contracts Private interest Direct influence of the

alone governs public interest is
Voidable or annullable contracts are existent, involved
valid and binding, although they can be
annulled because of want of capacity or vitiated May be compatible Based on a vice of the
consent of one of the parties. [Tolentino] with the perfect contract which
validity of the invalidates it
contract
Art. 1390, CC. The following contracts are
voidable or annullable, even though there A remedy A sanction
may have been no damage to the
contracting parties: Equity The law
1. Those where one of the parties is predominates predominates
incapable of giving consent to a contract;
2. Those where the consent is vitiated May be demanded Can be demanded
by mistake, violence, intimidation, undue by third parties only by parties to the
influence or fraud. affected by the contract
These contracts are binding, unless they are contract
annulled by a proper action in court. They are
susceptible of ratification.
b. Who may institute action for
Note: Art. 1390 refers to a “proper action in
annulment
court”. The validity of a voidable contract may
General Rule: Action for annulment may be
only be attacked either by way of a direct action
instituted by all who are thereby obliged
or by way of defense via a counterclaim, and
principally or subsidiarily.
not a special or affirmative defense. [Jurado]
Exceptions: (1) Persons capable of giving
a. Characteristics of Voidable consent and (2) guilty parties who have caused
Contracts the vitiation of consent cannot allege the
incapacity or want of consent of those they
• Its defect consists of the vitiation of contracted with. [Art. 1397, CC].
consent of one of the contracting parties;
• It is binding until it is annulled; Requisites:
• It is susceptible of convalidation by 1. Plaintiff must have an interest in the
ratification or prescription; once ratified, contract;
they become absolutely valid and can no 2. The victim and not the party
longer be annulled [Art. 1392, CC]; and responsible for the vice or defect
• Its defect or voidable character cannot be must assert the same
invoked by third persons.
Exception: If a third person is prejudiced in his
Rescission Annulment rights with respect to one of the contracting
parties and can show detriment which would
Merely produces the Declares the positively result to him from the contract in
inefficacy of the inefficacy which the which he has no intervention. [Teves v.
contract, which did contract already People’s Homesite & Housing Corp., G.R. No.
not essentially exist carries in itself L-21498 (1968)]
in the contract
Needs ratification to Requires an act of

be effective ratification to be cured
Page 313 of 532

c. Effects of Annulment 3. By loss of the thing which is the object of

the contract through the fraud or fault of the
person who is entitled to institute the action
Contract has been Contract has not for the annulment [Art.1401, CC]
Consummated been
Consummated PRESCRIPTION
The parties shall be Mutual Restitution - Prescription of the Action for Annulment
released from the the contracting
obligations arising parties shall restore Grounds for being Reckoning Point
therefrom. to each other the voidable
things which have
been the subject
matter of the Intimidation, Four years from the
contract, with their violence, or undue time the defect of the
fruits, and the price influence consent ceases
with its interest,
Fraud or Mistake Four years from
except in cases
discovery thereof
provided by law. [Art.
1398-1402] Minors and Four years from the
Incapacitated time the guardianship
Mutual Restitution Persons ceases.
Vitiation of Parties shall restore to each
Consent other the subject matter of Constructive Notice
the contract with its fruits Discovery or fraud must be reckoned from the
and the price thereof with time the document was registered in the office
legal interest. of the Register of Deeds. Registration
constitutes constructive notice to the whole
In obligations to render world. [Carantes v. CA, G.R. No. L-33360
service, the value thereof (1977)]
shall be the basis for
damages. [Art. 1398, CC] RATIFICATION
Incapacity Incapacitated person is not The act or means by virtue of which efficacy is
obliged to make any given to a contract which suffers from a vice of
restitution except insofar as curable nullity [Arts. 1392-1396, CC].
he has been benefited by the Ratification is either express or tacit.
thing or price received by 1. EXPRESS or
him. [Art. 1399, CC] 2. TACIT
When the person who has the right to
invoke it, with the knowledge of the
d. Three Ways or Modes of reason which renders the contract
Convalidating a Voidable voidable and such reason having
Contract ceased, executes an act implying an
intention to waive his right [Art. 1393,
1. By prescription of the action for annulment CC]
[Art.1391, CC]
2. By ratification or confirmation [Art. 1392- Requisites of Ratification
1396, CC] 1. Contract is tainted with a vice
susceptible of being cured;
Page 314 of 532

2. Confirmation is effected by the person a. Characteristics

who is entitled to do so under the law;
3. It is effected with knowledge of the 1. Cannot be enforced by a proper action in
vice or defect of the contract; court;
4. Cause of the nullity or defect has 2. Susceptible of ratification;
already disappeared. 3. Cannot be assailed by third persons [Art.
1408, CC]
The right to ratify may be transmitted to the
heirs of the party entitled to such right. It may b. Kinds of Unenforceable
likewise be exercised by the guardian of the
Contracts [Art. 1403, CC]
incapacitated person having such right. [Art.
1394, CC]
1. Unauthorized contracts – those entered
into by one who has no authority or legal
Ratification does not require the conformity of representation, or who has acted beyond
the contracting party who has no right to bring
his powers [par. 1, Art. 1403, CC]
an action for annulment. [Art. 1395, CC]
2. Those which did not comply with the
Statute of Frauds [par. 2, Art. 1403, CC]
Effect of Ratification
3. Those where both parties are incapable of
It extinguishes the action for annulment of a
giving consent to a contract [par. 3, Art.
voidable contract. [Art. 1392, CC] 1403, CC]
It cleanses the contract from all its defects from
the moment it was constituted. [Art. 1396, CC]
LOSS OF THE THING
Loss of thing by Loss of thing by

Plaintiff Defendant
If the loss of the If it is lost through the

object in his defendant’s fault, he
possession is due to is liable for fruits
his fault or fraud, the received, value of the
action for thing at the time it was
annulment of lost, with interest from
contracts shall be the same date. [Art.
extinguished. He 1400, CC]
cannot ask for
annulment. [Art.
14010, CC]
3. Unenforceable contracts
Unenforceable Contracts – contracts that by
reason of statutory defects do not confer any
action to enforce the same until and unless
they are ratified in the manner prescribed by
law [Reyes]
Page 315 of 532

SUMMARY OF UNENFORCEABLE CONTRACTS

Contract entered Contracts covered by Statute Contract where both
into without of Frauds parties are incapable of
authority giving consent
Effect on No effect unless ratified. Cannot be enforced by a proper action in court

the
Contract
How to Not by direct action. Not by direct action. Not by direct action.
assail
As a defense, by As a defense, by motion to As a defense, by motion to
motion to dismiss dismiss on the ground that the dismiss the complaint on
the complaint on the contract is unenforceable the ground that the contract
ground that the is unenforceable
contract is Objection to the presentation of
unenforceable oral evidence to prove an oral
contract [see Art. 1405]
Who can By the person By the party against whom the By the party against whom
assail - whose name the contract is being enforced; or the contract is being
cannot be contract was his privies enforced; or his privies; or
assailed by entered into / by parents or guardians, as it
third owner of property is a personal defense
persons
[Art. 1408,
CC]
When When a party asks the court to enforce the contract
How to Cure Ratification by Ratification by party against Ratification of party against

Defect person whose name whom the contract is being whom the contract is being
the contract was enforced enforced; or his privies; or
entered into parents or guardians
Failure to object to the
presentation of oral evidence to The ratification by one party
prove the contract amounts to converts the contract into a
waiver [Art. 1405, CC]; makes it voidable contract [Art.
as binding as if written 1407, CC]
4. Void or inexistent contracts also those which are declared void by positive
provision of law or statute.
Those which, because of certain defects,
generally produce no effect at all. They are
considered as inexistent from its inception or
from the very beginning [de Leon].
Includes not only those contracts in which one

of the essential requisites is totally wanting, but
Page 316 of 532

those which are inherent in his person,

Art. 1409, CC. The following contracts are
including therefore, his right to the
inexistent and void from the beginning:
annulment of said contract, even
1. Those whose cause, object or
though such creditors are not affected
purpose is contrary to law, morals,
by the same, except indirectly, in the
good customs, public order or
manner indicated in said legal
public policy;
provision. [Pascual v. Secretary of
2. Those which are absolutely
Public Works, G.R. No. L-10405
simulated or fictitious;
(1960)]
3. Those whose cause or object did not
exist at the time of the transaction;
Void vs. Inexistent Contracts
4. Those whose object is outside the
commerce of men; Void Inexistent
5. Those which contemplate an
impossible service; Those where all the Those where one or
6. Those where the intention of the requisites of a some or all of the
parties relative to the principal object contract are present requisites essential
of the contract cannot be but the cause, for the validity of a
ascertained; object or purpose is contract are
7. Those expressly prohibited or contrary to law, absolutely lacking
declared void by law morals, good
These contracts cannot be ratified. Neither customs, public
can the right to set up the defense of illegality order or public
be waived. policy, or the
contract itself is
prohibited or
a. Characteristics of a Void Contract declared void by
law
1. It does not produce any legal effect;
2. It is not susceptible of ratification; Principle of pari Principle of pari
3. The right to set up the defense of delicto is applicable delicto is inapplicable
inexistence or absolute nullity cannot
be waived or renounced; May produce legal Cannot produce any
4. The action or defense for the effects effect
declaration of their inexistence or
nullity is imprescriptible; [Art. 1410, Covers Art. 1409 Covers Art. 1409 (2)
CC] (1), (3), (4), (5), (6) and (3)
and (7)
Note: This provision does not apply to
wills. [Gallanosa v. Arcangel, G.R. No. Void vs. Voidable Contracts
L-29300 (1978)]
5. The inexistence or absolute nullity of a Void Voidable
contract cannot be invoked by a
person whose interests are not Those where one of Those where all the
directly affected. [Art. 1421, CC] the essential essential requisites
requisites is are present, but
Note: Article 1421 is subject to wanting, either in consent is vitiated by
exceptions. For instance, the creditors fact or in law, or is want of capacity, or by
of a party to an illegal contract may, declared void by error, violence,
under the conditions set forth in Article statute. intimidation, or deceit
1177 of said Code, exercise the rights
and actions of the latter, EXCEPT only
Page 317 of 532

General Rules
Void; no contract at Valid until annulled
all Nullity proceeds from the illegality of the
cause or object of the contract, and the act
May be assailed Must be assailed constitutes a criminal offense [Art.
indirectly through an action for 1411, CC]
that purpose by a
party to the contract, 1. Parties shall have no cause of
and never by a third action against each other
person (direct attack) 2. Both parties shall be prosecuted.
3. Things or price of the contract
Nullity may be set- Nullity may only be which are considered as effects or
up against anyone set-up against a party instruments of a crime are forfeited
who asserts a right thereto. in favor of the government.
arising from it.
The act in which the unlawful or forbidden
Not susceptible to May be validly ratified cause consists does not constitute a
ratification criminal offense
[Art. 1412, CC]
Action to declare Action for annulment
nullity does not prescribes When both When only one of the
prescribe [Art. parties are contracting parties is at fault
1410, CC] at fault
Neither may Guilty Party Innocent

b. Divisibility of Contracts
recover Party
what he has
Trigger: A contract has separate provisions of 1. He cannot 1. He may
given by
which only one or more provisions is invalid recover what demand the
virtue of the
contract, or he has given return of
General Rule: if the illegal terms can be by reason of what he has
demand the
separated from the legal ones, the latter may the contract, given
performanc
be enforced [Art. 1420, CC]
e of the
other's 2. He cannot 2. He is
c. In Pari Delicto Principle (in pari undertaking ask for the without any
delicto, non oritur actio) [Art. 1411, fulfillment of obligation to
CC] what has comply with
been his promise.
Parties to a void agreement cannot expect the promised
aid of the law; the courts leave them as they him.
are, because they are deemed in pari delicto or
"in equal fault." [Menchavez v. Tevez, G.R. No.
Exceptions to the Principle of In Pari
153201 (2005)].
Delicto:
1. Payment of usurious interest paid in
excess of the interest may be recovered by
the debtor. [Art. 1413, CC]
2. Payment of money or delivery of property
for an illegal purpose, where the party who
paid or delivered repudiates the contract
before the purpose has been
accomplished, or before any damage has
been caused to a third person. May allow
Page 318 of 532

the repudiating party to recover money or 3. if public policy is enhanced thereby.

property. [Art. 1414, CC] [See Hulst v. PR [Acabal v. Acabal, G.R. No. 148376
Builders Inc., G.R. No. 156364 (2007)] (2005)]
3. Payment of money or delivery of property
made by an incapacitated person. It is not d. Void contract cannot be novated
necessary that the illegal purpose has not [Art 1422, CC]
been accomplished, or no damage has yet
been caused. [Art. 1415, CC] A contact which is a direct result of a previous
4. Agreement or contract not illegal per se but illegal contract is also void and inexistent. This
merely prohibited by law, and the is based on requisites of a valid novation [Art
prohibition is designed for the plaintiff’s 1298, CC].
protection. Plaintiff may recover as
allowing recovery enhances public policy.
[Art. 1416, CC]
5. Distinguish: resolution and
5. Note: When the assailed contracts are void rescission of contracts
ab initio, Art. 1416 cannot be applied, as in
the case of aliens purchasing property Tolentino notes that Article 1191 is taken from
despite knowing fully well the constitutional Article 1124 of the Old Civil Code, but the
prohibition against foreigners owning land present Code uses the term “rescission”
in the Philippines at the time of purchase. instead of the original “resolution” in the old
[Frenzel v. Catito, G.R. No. 143958 (2003)] Code. Nevertheless, the Code uses the terms
6. Payment of any amount in excess of the synonymously.
maximum price of any article or commodity
fixed by law [Art. 1417, CC] Definition
7. Contract whereby a laborer undertakes to
Rescission Resolution
work longer than the maximum number of
hours fixed by law [Art. 1418, CC] A subsidiary action As referred to in
8. Contract whereby a laborer accepts a based on injury to Article 1191, the
wage lower than the minimum wage fixed the plaintiff’s action is based on
by law. He may recover the deficiency with economic interests the defendant’s
legal interest, and the employer shall be as described in breach of faith, a
criminally liable [Art. 1419, CC] Articles 1380 and violation of the
9. In case of divisible contracts, the legal 1381. reciprocity between
portions/terms may be enforced separately the parties.
from the illegal portions/terms [Art. 1420,
CC]; and [Heirs of Sofia Quirong v. Development Bank
10. One who lost in gambling because of of the Philippines, G.R. No. 173441, December
fraudulent schemes practiced on him. He is 3, 2009]
allowed to recover his losses [Art.
315(3)(b)] even if gambling is prohibited Similarities According to Tolentino:
1. Both presuppose contracts validly entered
The principle of in pari delicto admits of an into and existing (this distinguishes
exception under Art. 1416 of the Civil Code. rescission from annulment, in which there
Under this article, recovery for what has been is a defect which vitiates the contract)
paid or delivered pursuant to an inexistent 2. Both require mutual restitution when
contract is allowed only when the following declared proper.
requisites are met:
1. the contract is not illegal per se but
merely prohibited;
2. the prohibition is for the protection of
the plaintiffs; and
Page 319 of 532

Differences
or non-
Rescission Resolution performance
[Art 1380 and [Art 1191,
1381, CC] CC] As to action Right to seek May be
by courts remedy is not denied if
As to Subsidiary Principal affected by court finds
Nature of Action Action, extension of that there is
Action involving retaliatory in time sufficient
partial nature reason to
resolution justify
extension
As to Basis Economic Breach of
prejudice faith As to Four years Ten years
rendering the prescriptive [Art. 1389,
contract period CC]
legally
rescissible
[Congregation of the Religious Virgin Mary v.
Orola, G.R. No. 169790 (2008)]
Note: Not all
forms of
economic NATURAL OBLIGATIONS
prejudice are
recognized by
law as a Art 1423, CC. Natural obligations, not being
ground to based on positive law but on equity and
rescind natural law, do not grant a right of action
to enforce their performance, but after
As to effect The cause of The voluntary fulfillment by the obligor, they
action is reparation of authorize the retention of what has been
subordinated damages for delivered or rendered by reason thereof.
to the the breach is
existence of purely General Rule: Do not grant a right of action to
an economic secondary. enforce their performance.
prejudice.
Hence, where Exception: After voluntary fulfillment, they
the defendant authorize the retention of what has been
makes good delivered/rendered by reason thereof.
the damages
caused, the In order that there may be a natural obligation
action cannot there must exist a juridical tie which is not
be maintained prohibited by law and which in itself could give
or continued. a cause of action but because of some special
circumstances is actually without legal sanction
As to Prejudiced Only party to or means of enforcing compliance by
parties- third party the contract intervention of courts. [Tolentino]
in- may also may seek
interest seek remedy remedy Two Conditions Necessary for Natural
Obligations
As to Equity Non-
a. That there be a juridical tie between two
grounds compliance
persons; (this distinguishes it from moral
obligations) and
Page 320 of 532

b. That this tie is not given effect by law (this

Voluntary fulfillment Voluntary fulfillment
distinguishes it from civil obligations).
of such produces of such does not
legal effects which the produce any legal
Four Types of Obligations in Juridical
court will recognize effect which the
Science
and protect. court will recognize
a. Moral Obligations – duties of conscience
and protect.
completely outside the field of law
b. Natural Obligations – duties not Within the domain of Within the domain
sanctioned by any action but have a law of morals
relative judicial effect
c. Civil Obligations – juridical obligations
that are in conformity with positive law but Conversion to Civil
are contrary to juridical principles and
susceptible of being annulled; enforceable
Obligations
by action
General Rule: Partial payment of a natural
d. Mixed Obligations – full juridical effect;
obligation does not make it civil; the part paid
falls under civil obligations
cannot be recovered but the payment of the
balance cannot be enforced.
Natural Civil
Obligations Obligations This is applicable only to natural obligations
because of prescription or lack of formalities
As to Not by court Court action (nullity due to form e.g. Art. 1430) and not to
enforceability actions, but or the natural obligations subject to ratification or
by good coercive confirmation
conscience power of
of debtor public Note: Payment by mistake is not voluntary and
authority may be recovered. Payment is voluntary when
the debtor knew that the obligation is a natural
As to basis Equity and Positive law
one. The debtor, however, has the burden of
natural [Art. 1157,
proving the mistake.
justice CC]
Natural obligations may be converted to civil
obligations by way of:
Natural Obligations Imperfect
1. Novation
Obligations
2. Ratification or confirmation
Only the Existence of the
performance of the obligation depends Rules on Natural Obligation:
obligation is left to exclusively upon the a. The promise to perform a natural obligation
the will of the debtor judgment of debtor is as effective as performance itself and
converts the natural obligation to a civil
obligation.
Natural Obligations Moral Obligations b. Partial payment of a natural obligation does
not make it civil; the part paid cannot be
There is a juridical tie No juridical tie recovered, but payment of the balance
between the parties whatsoever cannot be enforced. The exception would
which is not be if the natural obligation is susceptible of
enforceable by court ratification.
action. c. Guaranties for the performance of a natural
obligation are valid. [Art. 2052, CC]
Page 321 of 532

d. In principle, however, natural obligations c. A third person, without the knowledge

cannot be guaranteed. The guaranty or against the will of the debtor, pays
changes the character of obligation. The the debt
debtor impliedly accepts coercive remedies d. Debtor voluntarily reimburses the third
to enforce the guaranty, and the person
transformation into civil. [Tolentino]
e. Payment of a natural obligation is not Consequence: Obligor cannot recover what
subject to reduction by reason of he has paid.
inofficiousness, appearance of children or
ingratitude. 2. Contract Made by a Minor
Art. 1426, CC. When a minor between
Examples Of Natural eighteen and twenty-one years of age who
Obligations has entered into a contract without the
consent of the parent or guardian, after
the annulment of the contract voluntarily
1. Performance after prescription returns the whole thing or price received,
Art. 1424, CC. When a right to sue upon a notwithstanding the fact that he has not been
civil obligation has lapsed by extinctive benefited thereby, there is no right to
prescription, the obligor who voluntarily demand the thing or price thus returned.
performs the contract cannot recover what
he has delivered or the value of the service
Requisites under Art. 1426 (Voluntary Return
he has rendered.
of Payment – Minor between 18 and 21)
a. There is a civil obligation
Requisites under Art. 1424 (Prescribed Civil b. Minor between 18 and 21 entered into
Obligation – Obligor) the contract without consent of parent
a. There is a civil obligation or guardian
b. The right to sue upon it has already c. Obligation is annulled after minor has
lapsed by extinctive prescription received the price or whole thing
c. Obligor performs contract voluntarily d. Minor returns whole thing or price
received voluntarily
Consequence: Obligor cannot recover what
he has delivered or value of the service he Consequence: There is no right to demand
rendered. Obligee gains the right to retain what the thing or price returned.
has been paid.
Art. 1427. When a minor between
eighteen and twenty-one years of age, who
Art. 1425, CC. When without the has entered into a contract without the
knowledge or against the will of the consent of the parent or guardian,
debtor, a third person pays a debt which voluntarily pays a sum of money or
the obligor is not legally bound to pay delivers a fungible thing in fulfillment of
because the action thereon has prescribed, the obligation, there shall be no right to
but the debtor later voluntarily reimburses recover the same from the obligee who
the third person, the obligor cannot recover has spent or consumed it in good faith.
what he has paid.
Requisites under Art 1427 (Voluntary
Requisites under Art. 1425 (Prescribed Civil Payment – Minor between 18 and 21)
Obligation – Payment to 3rd Person) a. There is a civil obligation
a. There is a debt b. Minor between 18 and 21 entered into
b. Action upon the debt has prescribed the contract without consent of parent
or guardian
Page 322 of 532

c. Minor pays a sum of money or delivers

a fungible thing voluntarily 4. Payment beyond Inheritance
d. Obligee spends the money or
Art. 1429, CC. When a testate or intestate
consumes the thing in good faith
heir voluntarily pays a debt of the
decedent exceeding the value of the
Consequence: There is no right to recover the
property which he received by will or by the
money paid or thing delivered.
law of intestacy from the estate of the
deceased, the payment is valid and cannot
It is not the voluntary payment that prevents
be rescinded by the payer.
recovery, but the consumption or spending of
the thing or money in good faith.
Requisites under Art 1429 (Payment made
Arts. 1426 and 1427, CC, distinguished by Heir)
Art. 1426 Art. 1427 a. Decedent incurred in debt during his
lifetime
Presupposes a prior No prior annulment b. Heir voluntarily pays debt
annulment is involved c. Value of debt exceeds value of heir’s
inheritance
Refers to any object Refers to money or
fungible things Consequence: Payment is valid and heir
cannot rescind it.
Consumption in good Requires
faith is not required consumption in good 5. Payment of a Void Legacy
faith
Art. 1430, CC. When a will is declared void
because it has not been executed in
3. Performance by Winning Party accordance with the formalities required
by law, but one of the intestate heirs, after
Art. 1428, CC. When, after an action to
the settlement of the debts of the deceased,
enforce a civil obligation has failed the
pays a legacy in compliance with a clause
defendant voluntarily performs the
in the defective will, the payment is
obligation, he cannot demand the return of
effective and irrevocable.
what he has delivered or the payment of the
value of the service he has rendered.
Requisites under Art 1430 (Payment of
legacy – Will declared Void)
Requisites under Art 1428 (Payment by
a. There is a will providing for a legacy
Defendant notwithstanding failed action)
b. The will is declared void because it was
a. There is a civil obligation
not executed in accordance with the
b. An action to enforce such has failed
formalities required by law
c. Defendant voluntarily performs the
c. Heir pays legacy in compliance with a
obligation
clause in the defective will
Consequence: Defendant cannot demand
Consequence: Payment is effective and
return of what he has delivered or the payment
irrevocable.
of the value of the service.
Page 323 of 532

ESTOPPEL C. PERSONS BOUND
Estoppel is effective only as between the:

A. DEFINITION 1. parties thereto or
2. their successors-in-interest. [Art. 1439,
CC]
A condition or state by virtue of which an
admission or representation is rendered
The government is not estopped by mistake
conclusive upon the person making it, and
or error on the part of its officials or agents. In
cannot be denied or disproved as against the
Manila Lodge No. 761 Benevolent and
person relying thereon [Art. 1431, CC]
Protective Order of the Elks v. CA, G.R. No. L-
41001 (1976), the sale executed by the City of
Estoppel is a bar which precludes a person
Manila to Manila Lodge was certainly a
from asserting anything contrary to that
contract prohibited by law, and that estoppel
which has been established as the truth, either
cannot be urged even if the City of Manila
by the acts of judicial or legislative officers or
accepted the benefits of such contract of sale
by his own deed or representation, either
and the Manila Lodge No. 761 had performed
express or implied. [Tolentino]
its part of the agreement, for to apply the
doctrine of estoppel against the City of Manila
in this case would be tantamount to enabling it
B. KINDS OF ESTOPPEL to do indirectly what it could not do directly.
a. Equitable Estoppel or Estoppel in pais D. CASES WHERE

or by conduct [Art. 1433, CC] ESTOPPEL APPLIES
1. Estoppel by silence [Art. 1437, CC]
2. Estoppel by acceptance of benefits a. Sale or alienation of a thing which does not
b. Technical Estoppels belong to the seller or grantor and later on
1. Estoppel by Deed – a party to a acquire title thereto [Art. 1434, CC].
deed is precluded from asserting
as against the other party, a Requisites
material fact asserted therein; [Art. a. The seller or grantor is not the
1433, CC] and owner of a thing
2. Estoppel by Record – a party is b. The person sells or alienates and
precluded from denying the truth of delivers it to another
the matters set forth in a record c. The person later on acquires title to
whether judicial or legislative and the thing
also to deny the facts adjudicated
by a court of competent jurisdiction. Effect: Title passes by operation of law to
c. Estoppel by Judgment – a party to a case the buyer or grantee.
is precluded from denying the facts
adjudicated by a court of competent b. Agent sells or alienates a thing [Art. 1435,
jurisdiction CC]
d. Estoppel by laches
Requisites:
a. Person in representation of another
sells or alienates a thing
Page 324 of 532

Effect: The person cannot set up his own

title as against the buyer or grantee.
E. LACHES
c. Title of the lessee or bailee against the
lessor or bailor [Art. 1436, CC].
Laches is defined as the failure or neglect for
Requisites: an unreasonable and unexplained length of
a. There exists a lessor-lessee time to do that which, by exercising due
relationship diligence, could or should have been done
earlier; it is negligence or omission to assert a
Effect: The lessee or bailee is estopped right within a reasonable time, warranting a
from asserting title to the thing leased or presumption that the party entitled to assert
received. it either has abandoned it or declined to
assert it. [Pangasinan v. Disonglo-Almazora,
d. Contract between third persons concerning G.R. No. 200558 (2015)]
immovable property where one of them is
misled by a person with respect to the Elements [Pangasinan v. Disonglo-Almazora,
ownership or real right over the real estate. G.R. No. G.R. No. 200558 (2015)]
[Art. 1437, CC] a. Conduct on the part of the defendant, or
of one under whom he claims, giving rise to
Requisites: the situation of which complaint is made
a. There must be fraudulent for which the complaint seeks a remedy;
representation or wrongful b. Delay in asserting the complainant’s
concealment of facts known to the rights, the complainant having had
party estopped; knowledge or notice, of the defendant’s
b. The party precluded must intend conduct and having been afforded an
that the other should act upon the opportunity to institute a suit;
facts as misrepresented; c. Lack of knowledge or notice on the part
c. The party misled must have been of the defendant that the complainant
unaware of the true facts; and would assert the right on which he bases
d. The party defrauded must have his suit; and
acted in accordance with the d. Injury or prejudice to the defendant in the
misrepresentation event relief is accorded to the complainant,
or the suit is not held to be barred.
Effect: The guilty party is precluded from Prescription Laches
asserting his legal title or interest therein,
Concerned with the Concerned with the
provided all these requisites are present.
fact of delay effect of delay
e. One who has allowed another to assume Question of inequity of
Question or matter
apparent ownership of personal property permitting the claim to
of time
for the purpose of making any transfer of it, be enforced
cannot, if he received the sum for which a Statutory Not statutory
pledge has been constituted, set up his Applies in law Applies in equity
own title to defeat the pledge of the Cannot be availed of
property, made by the other to a pledgee unless it is Being a defense in
who received the same in good faith and specifically pleaded equity, it need not be
for value [Art. 1438, CC]. as an affirmative specifically pleaded
allegation
Based on a fixed Not based on a fixed
time time
Page 325 of 532

U.P. LAW BOC SPECIAL CONTRACTS CIVIL LAW
SPECIAL CONTRACTS
CIVIL LAW
Page 326 of 532

Contract of Sale Contract to sell

A. SALES Ownership is Ownership is only
transferred upon transferred upon full
delivery payment of price
1. General provisions Full payment is a
positive suspensive
Non-payment is a
Definition condition; hence non-
resolutory
payment would not give
condition
Contract of Sale rise to the obligation to
Article 1458, CC: By the contract of sale transfer ownership
one of the contracting parties obligates
himself to transfer the ownership and to Conditional
Contract to sell
deliver a determinate thing, and the other to Contract of Sale
pay therefor a price certain in money or its Sale is already
No perfected sale yet
equivalent. perfected
A subsequent buyer A subsequent buyer
Contract to Sell is presumed to be a is presumed to be a
Article 1478, CC: The parties may stipulate buyer in bad faith buyer in good faith
that ownership in the thing shall not pass to
the purchaser until he has fully paid the price
Essential requisites [Art. 1318,
Conditional Contract of Sale
CC]
Article 1461, CC: Things having a potential
1. Consent of contracting parties
existence may be the object of the contract
of sale.
Consent refers to seller’s consent to transfer
ownership of, and deliver, a determinate thing,
The efficacy of the sale of a mere hope or
and to buyer’s consent to pay the price certain.
expectancy is deemed subject to the
condition that the thing will come into
Being a consensual contract, the contract of
existence.
sale is perfected at the moment there is a
“meeting of the minds” upon the thing which is
The sale of a vain hope or expectancy is
the object of the contract and upon the
void.
price. [Art. 1475, CC]
Article 1462, CC: The goods which form the
Can there be sales without consent?
subject of a contract of sale may be either
1. Expropriation [Art. 1488, CC]
existing goods, owned or possessed by the
2. Ordinary Execution Sale [Rule 39, Sec. 15,
seller, or goods to be manufactured, raised,
Rules of Court]
or acquired by the seller after the perfection
3. Judicial Foreclosure Sale [Rule 68, Rules
of the contract of sale, in this Title called
of Court], and
“future goods.”
4. Extra-Judicial Foreclosure Sale [Act. 3135,
as amended]
There may be a contact of sale of goods,
whose acquisition by the seller depends
upon a contingency which may or may not
happen.
Article 1465, CC: Things subject to a

resolutory condition may be the object of the
contract of sale.
Page 327 of 532

Special Case something in existence already

If the sale involves the conjugal property of belonging to the seller, and the title will
spouses, consent must be given by both. vest in the buyer the moment the thing
comes into existence. [Sibal v. Valdez,
2. Object certain which is the subject G.R. No. L-26278 (1927)]
matter of the contract
Sale of Things Having Potential
The things must be licit and the vendor must Existence
have a right to transfer the ownership thereof Emptio Rei Emptio Rei Spei
at the time it is delivered [Art. 1459]. Speratei Mere Hope Vain Hope
Sale of a Sale of a Sale of a
Requisites of a Valid Subject Matter [Arts. thing MERE HOPE VAIN HOPE
1459-1465, CC] expected or or or
a. Must be licit future thing expectancy expectancy
• Within the commerce of man General rule: Exception:
• When right is not intransmissible [Art. Valid
Valid Void
1347, CC] Example:
• It does not contemplate a future Example:
Sale of the Example:
inheritance, unless expressly Sale of a
grain a field Sale of a valid
authorized by law fake lottery
may grow in lottery ticket
• Example of illicit things per se (of its ticket
a given time
nature) and per accidens (due to Deals with a
provisions of law future thing Deals with a thing that
o Sale of animals if the use or that is currently exists – the hope or
service for which they are currently not expectancy
acquired has been stated in the in existence
contract, and they are found to Subject to
be unfit therefor [Art. 1575, CC] Not subject to any condition;
the condition
o Sale of animals suffering from The contract comes into
that the thing
contagious diseases [Art. existence immediately
will exist
1575, CC] Future thing
o Sale of future inheritance is is certain as
void [Art. 1347, CC] to itself, but
Sale of land in violation of uncertain as
Constitutional prohibition to quantity
against the transfer of lands to and quality
aliens. [Art. XII of Constitution] In case of doubt, the presumption is in favor
of emptio rei speratae since it is more in
b. Existing, Future, Contingent keeping with the commutative character of
• Existing goods owned or possessed by the contract.
the seller;
• Goods to be manufactured, raised, OR c. Determinate or Determinable
acquired by the seller – “Future Goods” Determinate
[Art. 1462, CC] When it is particularly designated or physically
• Things having potential existence may segregated from all others of the same class.
be the object of a contract of sale [Art. [Art. 1460, CC]
1461, CC]. A sale may be made of a
thing which, though not yet actually in Determinable
existence is reasonably certain to When it is capable of being made determinate
come into existence as the natural at the time the contract was entered into
increment or usual incident of
Page 328 of 532

without the necessity of a new or further o UNLESS proved to be

agreement between the parties. [Art. 1460, CC] founded on another true
and lawful price [Art. 1353,
Failure to state the exact location of the land CC]
does not make the subject matter
indeterminate, so long as it can be located. b. How price is determined/when certain
[Camacho v. CA, G.R. No. 127520 (2007)] 1. Fixed by agreement of the parties and
cannot be left to the discretion of one of
3. Cause of the obligation which is the parties – BUT if such is accepted by
established the other, sale is perfected. [Art. 1473,
CC]
This refers to the “price certain in money or its 2. Determination is left to the judgment of
equivalent” [Art. 1458]. It does not include a specified person.
goods or merchandise although they have their
own value in money. General Rule: Price fixed by 3rd persons
designated by the parties is binding upon them
However, the words “its equivalent” have been
interpreted to mean that payment need not be Exceptions:
in money, so that there can be a sale where the • If 3rd person is unable or unwilling: Sale is
thing given as token of payment has “been inefficacious unless parties subsequently
assessed and evaluated and [its] price agree about the price.
equivalent in terms of money [has] been • If 3rd person fixed the price in bad faith/by
determined.” [De Leon] mistake: Courts may fix price (but mere
error in judgment cannot serve as basis for
a. Requisites of a valid price impugning price fixed)
1. Certain or ascertainable at the time of • If 3rd person is prevented from fixing price
perfection by fault of seller or buyer: Innocent party
2. In money or its equivalent may avail of remedies (rescission or
• If price is partly in money and partly fulfillment of obligation, with damages)
in another thing: determine • If 3rd person disregards specific
manifest intention of the parties to instructions/data/procedure, thereby fixing
see whether it was barter or sale. an arbitrary price
[Art. 1468, CC] • The price is made in reference to another
• If intention does not clearly appear, thing, or when the price fixed is the price of
it shall be considered a barter if the the commodity on a definite day, or in a
value of the thing exceed the particular exchange or market, or when the
amount of money or its equivalent. amount fixed is above or below the price on
[Art. 1468, CC] such day, exchange or market. [Art. 1472,
3. Real CC]
• When buyer has an intention to pay
and the seller has an expectation to General Rule: When the price is not certain,
receive the price the contract is without effect and no obligation
• If simulated: Sale is VOID; BUT act arises from it.
may be shown to have been a
donation or some other act or Exception: When the thing is already
contract. [Art. 1471, CC] delivered, the buyer must pay a reasonable
• If Price is false – when the real price therefor. This exception only arises when
consideration is not the price stated the means contemplated by the parties for
in the contract: fixing the price have become ineffectual.
o Sale is void
c. Inadequacy of price
Page 329 of 532

The stipulation in a contract of sale which 3. Generally, the reasonable price is the
states that the consideration is “PhP1 and market price at the time and place fixed by
other valuable considerations” does not make the contract or by law for delivery of goods.
the contract void. Gross inadequacy of price
does not affect the contract of sale except that e. False price vs. simulated price
it may indicate a defect in consent. [Bagnas v. False Price Simulated Price
CA, G.R. No. L-38498 (1989)] Price stated in the
Price stated in the
contract is not
contract is not the
General Rule: Does not affect a contract of intended to be paid.
true price. Parties
sale’s validity. [Art. 1470, CC] Parties never
intended to be
intended to be
bound.
Exceptions: bound.
a. In Voluntary sales Effect: Void for lack
• Where low price indicates a vice of Effect: Binds the of
consent, sale may be annulled. parties to their real cause/consideration,
• Where price is so low to be shocking to the agreement when it but can be shown as
conscience (fraud, mistake, undue does not prejudice a donation or some
influence), then sale may be set aside 3rd persons and is other contract.
• Where price is simulated such as when the not intended for any Parties may recover
real intention was a donation or some other purpose contrary to from each other
contract. law, morals, public what they may have
• Where the parties did not intend to be policy, etc. given under the
bound at all, sale is void. contract.
b. In Involuntary sales f. Earnest money vs. option money

• A judicial or execution sale is one made by Earnest Money – paid in advance of the
a court with respect to the property of a purchase price agreed upon by the parties in a
debtor for the satisfaction of his contract of sale, given by the buyer to the
indebtedness. seller, to bind the latter to the bargain
• Rescissible contracts of sale - Inadequacy
of price is a ground for rescission of Option Money Earnest Money
conventional sale under Art. 1381 (a) and Separate and distinct
(b), CC. Part of purchase
consideration from the
price [Art. 1482, CC]
purchase price
d. When no price agreed Given only when
1. Sale is inefficacious [Art. 1474, CC] Given when sale is not
there is already a
2. But if the thing or part thereof has been yet perfected
sale
delivered and appropriated by the buyer, When given, the
he must pay a reasonable price therefore would-be-buyer is not
• What is a reasonable price is a required to buy, but
When given, the
question of fact dependent on the buyer is bound to pay
may even forfeit it
circumstances of each particular case. the balance
depending on the
[Art. 1474, CC] terms of the option
• The reasonableness of a price may be Grantee of option is
determined on the basis of a still undecided Buyer manifests his
company’s balance sheet showing the whether or not to buy earnest desire to buy
book value or fair market value of its or sell the property the property
shares. [Philippine Free Press v. CA, [Baviera]
G.R. No. 132864 (2005)] [Limson v. CA, G.R. No. 135929 (2001)]
Page 330 of 532

Perfection ensues and both parties are then reciprocally

bound to comply with their respective
1. Offer undertakings. [Ang Yu v. CA, G.R. No. 109125
(1994)]
The offer must be certain and the acceptance
absolute. [Art. 1319, CC] The offeror is still free and has the right to
withdraw the offer:
The person making the offer may fix the time, • If the period is not itself founded upon or
place, and manner of acceptance, all of which supported by a consideration and
must be complied with. [Art. 1321, CC] withdrawn before its acceptance,
• If an acceptance has been made, before
An offer becomes ineffective upon the death, the offeror's coming to know of such fact,
civil interdiction, insanity, or insolvency of by communicating that withdrawal to the
either party before acceptance is conveyed. offeree.
[Art. 1323, CC]
Breach of contract
When the offerer has allowed the offeree a It will be a breach of contract when the offer
certain period to accept, the offer may be was withdrawn during the agreed period if the
withdrawn at any time before acceptance by period has separate consideration since the
communicating such withdrawal, except when contract of “option is deemed perfected.”
the option is founded upon a consideration, as
something paid or promised. [Art. 1324, CC] 3. Right of first refusal
Unless it appears otherwise, business While the object might be made determinate,
advertisements of things for sale are not the exercise of the right, however, would be
definite offers, but mere invitations to make an dependent not only on the grantor's eventual
offer. [Art. 1325, CC] intention to enter into a binding juridical relation
with another but also on terms, including the
2. Option contracts price, that obviously are yet to be later firmed
up.
Option
An accepted unilateral promise to buy or to sell Even on the premise that such right of first
a determinate thing for a price certain is binding refusal has been decreed under a final
upon the promissor if the promise is supported judgment, like here, its breach cannot justify
by a consideration distinct from the price. [Art. correspondingly an issuance of a writ of
1479(2), CC; De Leon] execution under a judgment that merely
recognizes its existence, nor would it sanction
Separate Consideration an action for specific performance without
A consideration for an optional contract is just thereby negating the indispensable element of
as important as the consideration for any other consensuality in the perfection of contracts.
kind of contract. If there was no consideration [Ang Yu v. CA, G.R. No. 109125 (1994)]
for the contract of option, then it cannot be
enforced any more than any other contract 4. Mutual promise to buy and sell
where no consideration exists. [Enriquez dela
Cavada v. Diaz, G.R. No. 11668 (1918)] The obligation is not to enter into a sale, but
rather to negotiate in good faith for the
The option is not the contract of sale itself. The possibility of entering into a sale. When the
optionee has the right, but not the obligation, to promissor has in fact negotiated in good faith,
buy. Once the option is exercised timely, i.e., but the parties’ minds could not meet on the
the offer is accepted before a breach of the price and the terms of payment, then promissor
option, a bilateral promise to sell and to buy has complied with his obligation [Villanueva].
Page 331 of 532

BARTER = where the value of the thing given

Contract of sale distinguished as part of the consideration exceeds the
amount of money given or its equivalent
1. Donation
SALE = where the value of the thing given as
Sale Donation part of the consideration equals or is less than
Onerous Gratuitous the amount of money given
Requires consent and
must comply with the 3. Contract for a piece of work
Perfected by mere
formalities required by
consent Contract for a
law for its validity. [Art. Sale
745, CC] Piece of Work
The property sold Goods are
Goods are
is replaced by the Requires that there be manufactured or
manufactured for
equivalent a diminution of the procured in the
customer upon his
monetary estate of one party ordinary course of
special order
consideration; (donor) and the business
there is no enrichment of the other For the general
For a specific
diminution of the party’s estate (donee) market, whether on
customer
seller’s estate hand or not
Governed by Statute Not within Statute of
When the price of the contract of sale is of Frauds Frauds
simulated, the sale may be void but the act may
be shown to have been in reality a donation or When each product or system executed is
some other contract. [Art. 1471, CC] always UNIQUE and could not mass-produce
the product because of its very nature, such is
The donee must accept the donation a contract for a piece of work. [Commissioner
personally, or through an authorized person v. Engineering Equipment and Supply Co.,
with a special power for the purpose, or with a G.R. No. L-27044 (1975)]
general and sufficient power; otherwise, the
donation shall be void. [Art. 745, CC] 4. Dacion en pago
2. Barter Sale Dacion en pago

No pre-existing debt Pre-existing debt
Sale Barter Extinguishes the
Consideration is price in Consideration is Creates an obligation obligation (mode of
money or its equivalent another thing payment)
Price is more freely
Price is the value of
Rules to determine whether contract is sale agreed upon, fixed by
the thing given
or barter: the parties
a. Manifest intention of the parties: Even if the Payment is
acquisition of a thing is paid for by another received by the
Buyer has to pay the
object of greater value than the money debtor before
price
component, it may still be a sale and not a contract is
barter, when such was the intention of the perfected
parties
b. When intention does not appear and
consideration consists partly in money and
partly in another thing
Page 332 of 532

5. Agency to sell Kinds of incapacity

1. Absolute [Art. 1327, 1397, 139, CC] - In
Sale Agency to sell the case of persons who cannot bind
Agent receives themselves
Buyer receives the 2. Relative - Married persons
good as goods of
goods as owner
the principal 3. Special disqualifications [Arts. 1491-
Agent delivers the 1492, CC]
Buyer pays the price price which he got
from his principal 1. Absolute incapacity
Buyer cannot return
Agent can’t return a. Minors [Art. 1327, CC]
the object sold as a
the goods b. Insane or Demented [Art. 1327, CC]
general rule
c. Deaf-mutes who do not know how to write
Seller warrants the Agent makes no [Art. 1327, CC]
thing sold warranty d. Civil Interdiction [Art. 38, CC]
Not unilaterally Essentially e. Judicially-declared Incompetents [Art. 39,
revocable revocable CC]
• Prodigal
6. Lease • Imbeciles
• Absence & presumption of death
Sale Lease • Persons not of unsound mind but by
Ownership reason of age, disease, weak mind,
No transfer of
transferred by and other similar causes, cannot take
ownership
delivery care of themselves and manage their
Permanent Temporary property without outside aid (Easy prey
Seller must be for deceit and exploitation)
Lessor need not be
owner at time of
owner General Rule: Contracts entered into by a
delivery
minor and other incapacitated persons are
voidable.
In the lease of things, one of the parties binds
himself to give to another the enjoyment or use
Exception: Where necessaries are sold and
of a thing for a price certain, and for a period
delivered to him (without parent or guardian),
which may be definite or indefinite. However,
he must pay a reasonable price therefor.
no lease for more than ninety-nine years shall
be valid. [Art. 1643, CC] • Such contract is VALID
• But the minor has the right to recover any
excess above a reasonable value paid by
2. Parties him.
General Rule: Any person who has capacity to 2. Relative incapacity

act may enter into a contract of sale.
[Villanueva] 1. Husband and wife [Art. 1490, CC]
General Rule: Cannot sell property to each
As a general rule, all persons, whether natural other
or juridical, who can bind themselves have also
legal capacity to buy and sell. [De Leon] Exceptions:
• Separation of property in marriage
a. Capacity of Parties settlement, OR
• Judicial separation of property.
Page 333 of 532

Sale by husband in favor of a concubine after was entrusted to them. Prohibition includes
he had abandoned his family and left conjugal judges and government experts who, in
home where his wife and children lived and any manner, take part in the sale.
from whence they derived their support, is void.
[Ching v. Goyanko, Jr., G.R. No. 165879 5. Lawyers - Cannot acquire or purchase
(2006)] property or rights in litigation in which they
take part by virtue of their profession
Reason for this rule: Such prohibition is for
the protection of third persons who, relying For the prohibition to operate, the sale or
upon supposed property of either spouse, assignment must take place during the
enters into a contract with either of them only pendency of the litigation involving the
to find out that the property relied upon was property. [Laig v. Court of Appeals (1991)]
transferred to the other spouse. [De Leon]
Exceptions: An assignment to a lawyer by
2. Alienage [Art. 39, CC] his client of an interest in the property does
General Rule: Aliens are disqualified from not violate Art 1491, where:
purchasing or acquiring real property. a. A judgment has been rendered and
has become final; and
Exception: If acquisition is through hereditary b. In case of contingency fee
succession arrangements: the interest of the
lawyer may be annotated as an
3. Trusteeship [Art. 39, CC] adverse claim on the property
awarded to his client [Director of
3. Special disqualifications Lands v. Ababa, G.R. No. L-26096
(1979)]
Such is grounded on public policy
considerations which disallow the transactions 6. Justices, Judges, prosecuting
entered into by them (directly or indirectly) in attorneys, clerks and other officers and
view of the fiduciary relationship involved or employees connected with the
the peculiar control exercised by these administration of justice - Cannot
individuals over the properties or rights acquire or purchase property or rights in
covered. [Mananquil v. Villegas (1990)] litigation or levied upon on execution
1. Agents – Cannot purchase or acquire before the court within whose jurisdiction or
property whose administration or sale was territory they exercise their respective
entrusted to them, except if principal gives functions.
consent
2. Guardian – Cannot purchase property of 7. Others specially disqualified by law
person under his guardianship i. Unpaid sellers with goods in transit
3. Executors and administrators –Cannot from buying the goods
acquire or purchase property of estate ii. Officer conducting the execution
under their administration. sale of deputies
iii. Aliens who are disqualified to
The prohibition on executors and purchase private agricultural lands
administrators does not apply if the
principal consents to the sale. [Distajo v. b. Effects of incapacity
CA, G.R. No. 112954 (2000)]
1. Absolute incapacity
4. Public officers and employees - Cannot
acquire or purchase property of State/any If both parties are incapacitated:
of its subdivisions, GOCC or unenforceable [Art. 1403 (3), CC].
administration, the administration of which
Page 334 of 532

If only 1 party is incapacitated: voidable. RATIFIED by means of and in the form of a

new contract when the cause of nullity has
Exception: Where necessaries are sold and ceased to exist. Ratification is valid only from
delivered to a minor or to a person without date of execution of the new contract and does
capacity to act, he must pay a reasonable price not retroact.
therefor. [Art. 1489, par. 2, CC] The resulting
sale therefore described in the foregoing article 3. Obligations of the Vendor
is valid and binding.
(Note: Further discussion can also be found in
2. Relative incapacity Section J of this Sales Reviewer, on the
Performance of the Contract.)
Sale between spouses is void.
Obligations of the Vendor in
Rationale:
1. To protect 3rd persons who may have General
contracted with the spouse
2. To avoid undue advantage of the dominant 1. To transfer ownership of the thing [Art.
spouse over the weaker spouse. 1495, CC]
3. To avoid circumvention of the prohibition 2. To deliver the thing, with its accessions and
against donations between spouses. accessories, if any [Arts. 1164, 1166, CC]
[Medina v. CIR, G.R. No. L-15113 (1961)] 3. To warrant against eviction and against
hidden defects [Arts. 1545-1581, CC]
Such prohibition shall likewise apply to 4. To take care of the thing, pending delivery,
common law spouses. [Calimlim-Canulas v. with proper diligence [Art. 1163, CC]
Fortun, G.R. No. L-57499 (1984)] 5. To pay for the expenses of the deed of sale
[Art. 1487, CC]
But if already sold to a third person who relied
on the title of his immediate seller, (1) To Transfer Ownership of the
reconveyance to the seller spouse is no longer Thing and To Deliver the
available [Cruz v. CA, G.R. No. 120122 (1997)] Thing, with its Accessions
and Accessories
Sale contracted by aliens is void [Art. XII of the
Constitution] i. When Seller is Not the Owner
3. Specific incapacity General Rule: Ownership is not acquired by

the buyer. One cannot give what one does not
General rule: Contracts expressly prohibited have. [Art. 1505, CC]
by law are VOID and CANNOT BE RATIFIED.
Neither can the right to set-up the defense of Exceptions:
illegality be waived. [Art. 1409 (7), CC] a. Seller has a right to transfer ownership.
Those entered into by public Seller need not be the owner of the thing at
officers/employees, justices and judges, and the time of perfection of the contract. It is
lawyers in violation of Art. 1491 are inexistent sufficient that the seller has a right to
and VOID from the beginning. [Rubias v. transfer ownership thereof at the time it is
Batiller, supra]. It is NOT subject to delivered. [Art. 1459, CC]
RATIFICATION.
One who sells something he does not own
Exception: Sales entered into by guardians, yet is bound by the sale when he acquires
administrators, and agents (specific the thing later. [Bucton v. Gabar, G.R. No.
incapacities) in violation of Art. 1491 may be L-36359 (1974)]
Page 335 of 532

b. Estoppel: Owner is, by his conduct, b. Contract to sell

precluded from denying the seller’s c. Contract of insurance
authority to sell. [Art. 1434, CC] d. Sale on acceptance/Trial
e. When seller is not the owner or has
c. Registered land bought in good faith voidable title
General rule: Buyer need not go beyond Obligation to transfer ownership and to deliver
the Torrens Title is implied in every contract of sale [Arts. 1458-
1459, CC]
Exception: When he has actual
knowledge of facts and circumstances that Transfer of ownership requires delivery [Art.
would impel a reasonably cautious man to 1495, CC]
make further inquiry
General Concepts
d. Order of courts; Statutory Sale - In Under Article 1495, the seller has twin
execution sale, the buyer merely steps into obligations to (a) transfer the ownership and (b)
the shoes of the judgment debtor [Sec. 33, deliver the thing, which is the object of sale to
Rule 39, ROC] the buyer. In Article 1164, this includes the
obligation to deliver the fruits and accessories
e. When goods are purchased in Merchant’s from the time the obligation to deliver it arises;
store, Fair, or Market [Art. 1505, CC] however he shall acquire no real right over
them until the same has been delivered to him.
ii. Sale by Person having a Voidable Title
Transfer of ownership is effected even if the
a. True owner may recover the thing when the purchase has been made on credit. Payment
ff. requisites concur: of the purchase price is not essential to transfer
• Subject matter is movable of ownership as long as the property sold was
• Owner has either lost the thing or delivered.
has been unlawfully deprived. [Art.
559, CC] Intention to transfer ownership
• All forms of delivery shall be coupled
b. Reimbursement is necessary before owner with intention of delivering the thing
can recover when: sold.
● Buyer acted in good faith • Seller must be the owner or authorized
● Acquired at a public auction [Art. by owner of the thing sold
559, CC]
When right to transfer ownership must
c. Recovery no longer possible when: exist: At the time of delivery and not at the time
● Buyer in good faith of perfection of contract of sale.
● Acquired it at a merchant’s store,
fair or market. [Art. 1506, CC] iv. Concept of Delivery
iii. Manner of Transfer [Arts. 1477, 1496-150, Requisites

CC] a. Identity – between what must be
delivered and what is actually delivered
General Rule: Ownership of the thing sold b. Integrity – in a condition suitable for
shall be transferred to the vendee upon actual enjoyment
or constructive delivery thereof [Art. 1477, CC] c. Intentional
Exceptions: What to Deliver

a. Contrary stipulation a. Thing sold [Art. 1495, CC]
Page 336 of 532

b. Fruits [Art. 1164 & 1537, CC] – belong Sale or Return

to the vendee from day of perfection. ● Buyer becomes owner of the property on
c. Accessions and accessories [Art. 1166 delivery, BUT has the option to revest
& 1537, CC] – in the same condition ownership in the seller instead of paying
they were in on day of perfection the price by returning the goods within the
● Improvements by seller at his time fixed in the contract, or, if no time is
expense grants him a usufructuary fixed, within a reasonable time. Otherwise,
right [Art. 1138, 1189, CC] the sale becomes absolute.
● No indemnification ● Loss or destruction of the property prior to
● But he may remove it to the extent return falls upon the buyer and makes him
that there is no damage [Art. 1538, responsible for the purchase price.
CC]
Sale on Approval v. Sale or Return
Where to Deliver Sale on Approval Sale or Return
a. A hierarchy is followed: Ownership passes to
Ownership does not
1. Stipulation buyer on delivery
pass upon delivery
2. Usage of trade and subsequent
3. Seller’s place of business (office) remaining with the
return revests
4. Seller’s residence seller until buyer
ownership in the
signifies his approval.
b. In case of specific goods, which the parties seller.
knew to be at some other place when the Depends on the
contract was perfected, that place is the Depends on the will
character or quality of
place of delivery of the buyer
goods
c. If goods at the time of sale are possessed Subject to a Subject to a
by a third person, then there is no delivery suspensive condition resolutory condition
until he acknowledges to the buyer that he
holds the goods for the buyer. Risk of loss remains Risk of loss remains
with the seller with the buyer
When to Deliver
Absent a stipulation as to time, delivery must Express Reservation
be made within a reasonable time; demand or If it was stipulated that ownership in the thing
tender of delivery shall be made at a shall not pass to the purchaser until he has fully
reasonable hour. paid the price, then ownership remains with
seller even when delivery is made [Art. 1478,
v. When Delivery Does Not Transfer Title CC].
Sale on Approval or Trial Implied Reservation

● Title remains with the seller The following are instances when there is an
notwithstanding delivery of the goods. implied reservation of ownership:
● Buyer becomes the owner when he: a. Goods are shipped, but by the bill of
a. Signifies his approval or acceptance to lading goods are deliverable to the
the seller seller or his agent, or to the order of the
b. Does any other act adopting the seller or his agent
transaction (i.e. sale to a third person) b. Bill of lading is retained by the seller or
c. Retains the goods without giving notice his agent.
of rejection after the time fixed has
expired; if no time has been fixed, after When the seller of the goods draws on the
the expiration of a reasonable time [Art. buyer for the price and transmits the bill of
1502, CC] exchange and bill of lading to the buyer, and
the latter does not honor the bill of exchange
by returning the bill of lading to the seller.
Page 337 of 532

When Sale Not Valid “Control” over thing sold must be such that
When the thing sold is a public property the seller is capable of physically
transferring it to buyer.
Sale by Person Having a Voidable Title
a. True owner may recover the thing when the Although parties may stipulate that the
ff. requisites concur: execution of a public instrument is
● Subject matter is movable equivalent to delivery, this legal fiction
● Owner has either lost the thing or has holds true only when there is no
been unlawfully deprived. [Art. 559, impediment that may prevent the passing
CC] of the property from the vendor to the
b. Reimbursement is necessary before owner vendee. [Vda. de Sarmiento v. Lesaca,
can recover when: G.R. No. L-15385 (1960)]
● Buyer acted in good faith
● Acquired at a public auction [Art. 559, If, notwithstanding execution of the
CC] instrument, the buyer cannot enjoy material
c. Recovery no longer possible when: tenancy and make use of the object himself
● Buyer in good faith or through another in his name, there is no
● Acquired it at a merchant’s store, fair or delivery. [Power Commercial v. CA, G.R.
market. [Art. 1506, CC] No. 119745 (1997)]
vi. Kinds of Delivery Execution of a public instrument gives rise

only to a prima facie presumption of
Actual Delivery delivery, negated by failure of the buyer to
Deemed made when the thing sold is placed in take actual possession of land sold. A
the control and possession of the vendee [Art. person who does not have actual
1497, CC] possession cannot transfer constructive
possession by execution and delivery of
Not always essential to passing of title [Art. public instrument. [Spouses Santiago v.
147, CC] Villamor, G.R. No. 168499 (2012)]
Parties may agree when and on what b. Symbolic Delivery

conditions the ownership shall pass to the
buyer [e.g.: Art 1478 where ownership will only Delivery of keys of the place or depositary
pass after full payment of the price] where the movable is stored or kept. [Art. 1498,
CC]
Constructive Delivery
a. Execution of public instrument [par. 1, Unless otherwise agreed, when symbolic
Art. 1498, CC] delivery has been made, the seller is not
obliged to remove tenants to place the buyer in
General Rule: produces the same legal effects actual possession of the property as he has
of actual delivery. already complied with his obligation to transfer
ownership of and deliver the thing sold. [Power
Exceptions: Commercial and Industrial Corp. v. CA, G.R.
1. The parties intended otherwise. No. 119745 (1997); Sabio v. The International
2. At the time of execution, the subject matter Corporate Bank, Inc., G.R. No. 132709 (2001)]
was not subject to the control of the seller,
which control must subsist for a c. Traditio Longa Manu (Long Hand)
reasonable length of time after execution.
[Pasagui v. Villablanca, G.R. No. L-21998 Delivery of movable property by mere consent
(1975)] or agreement, if the thing sold cannot be
Page 338 of 532

transferred to the possession of the buyer at For example, a seller remains in possession of
the time of sale. [Art. 1499, CC] the property sold, by virtue of a lease
agreement with the vendee, at the time of the
Example: Seller points to the property without perfection of the contract of sale.
actually transferring physical possession
thereof. Vendee became, as lessor, the legal
possessor while the vendor is in material
Delivery by mere agreement; seller points out possession of the property in the name and
to the buyer the property without need of representation of the vendee.
actually delivering (as when the thing sold
cannot be transferred to the possession of the Seller continues to be in possession of the
vendee at the time of sale). Delivery takes property sold
place when the thing is placed in the sight of
the purchaser so that he can take possession f. Quasi-traditio
of it at pleasure. With regard to movable
property, its delivery may also be made by the Mode of delivery of incorporeal things or rights.
delivery of the keys of the place or depository
where it is stored or kept. Delivery is effected:
● By execution of public instrument
When an employer assigned all its rights and ● When such is not applicable, by placing
title to all surplus property salvaged by the the titles of ownership in the
contractor, traditio longa manu takes place. possession of the buyer
Delivery is upon the moment a thing is ● By allowing the buyer to use his rights
salvaged. [Board of Liquidators v. Floro, G.R. as new owner with the consent of the
No. L-15155 (1960)] seller
d. Traditio Brevi Manu (Short Hand) g. Delivery to a Common Carrier
Delivery of movable property by mere consent General Rule: Delivery to the courier or carrier
or agreement, if the buyer already had it in his is tantamount to delivery to buyer, whether
possession for any other reason. [Art. 1499, carrier is named by buyer or not. The buyer
CC] assumes the risk of loss.
Happens when the already has possession of Exceptions

the thing sold before the sale by virtue of 1. Seller reserved title through the form of the
another title (as lessee, borrower, depositary, bill of lading, with intent to remain the
etc.) owner, not merely for the purpose of
securing payment, OR
e. Traditio Constitutum Possessorium 2. Contrary intention appears in the contract
(i.e. seller is required to deliver goods to
Seller continues to be in possession of the buyer at the point of destination)
property sold not as owner but in some other 3. Delivery by the seller is in breach of the
capacity, like as tenant or lessee. contract
4. F.O.B. (Free on Board or Freight on Board)
At the time of perfection, the seller held - When seller bears the expenses of
possession of the subject matter in the concept transportation up to the F.O.B. point.
of owner, and pursuant to the contract, the 5. C.I.F. (Cost, Insurance, Freight) - Price
seller continues to hold physical possession quoted includes the costs of the goods,
thereof as lessee or other form of possession insurance, and freight charges on the
other than the concept of owner. goods up to the point of destination.
Page 339 of 532

6. F.A.S. (Free Alongside) – Seller bears the Rules Governing Sale of Movables,
expenses of transportation until he delivers Immovables and Unregistered Lands
the goods alongside a vessel at a named
port. a. Sale of Movable: Ownership shall be
transferred to the person who may have
vii. Double Sales [Art. 1544, CC] first taken possession in good faith.
General Rule: Prior tempore, prior jure (“First b. Sale of Immovables: Registered Land –
in time, priority in right”) applies. Ownership belongs to the person who:
● In good faith first recorded the sale in
Requisites: the Registry of Property; or
a. 2 or more valid sales; ● If there is no inscription of sale on the
b. Same subject matter; title, ownership passes to the person
c. 2 or more buyers with conflicting interests who in good faith was first in
over the rightful ownership of the thing possession; or
sold; ● In the absence thereof, to the person
d. Same seller. [Cheng v. Genato, G.R. No. who presents the oldest title,
129760 (1998)] provided there is good faith.
Rules on Double Sale Possession refers to any of the modes of

There is no double sale when: possession in Arts. 1497-1501, CC
a. Not all the elements of a sale are present
b. The principle of prior tempore, prior jure (he Oldest Title as to any public document
who is first in time is preferred in right) showing acquisition of the land in good
should apply faith. To constitute “title,” the transmission
c. The two different contracts of sale are of ownership must appear in a public
made by two different persons, one of them document [Art. 1358 (1), CC]
not being the owner of the property sold.
d. The land sold is not yet registered under Registration includes any entry made in
the Torrens system the Primary Entry Book of the registry,
e. The first sale occurred when land was not including both registration in its ordinary
yet registered, and the second sale was and strict sense and cancellation,
done when the land was already registered annotation, and even marginal notes.
– prior tempore, prior jure should apply [Cheng v. Genato, G.R. No. 129760
(1998)]
Rules on Preference
a. Personal property Pencilled entries on the title are not
b. First possessor in good faith considered registration. [AFPMBAI v. Court
c. Real property of Appeals, G.R. No. 126745 (1999)]
d. First registrant in good faith: second buyer
must register the document in good faith, c. Second Sale Made by Virtue of
otherwise, he does not have a better right Execution and Attachment – Art. 1544
e. First possessor in good faith does NOT apply in cases where the first
f. Person with oldest title in good faith sale of an unregistered immovable
occurred prior to an execution sale and the
Caveat emptor: One who purchases real second sale occurred by virtue of an
property which is in actual possession of others execution sale. This is because a buyer of
should make some inquiry concerning the unregistered land at an execution sale only
rights of those in posses steps into the shoes of the judgment debtor
(the person who sold the property prior to
the execution sale). The second buyer
Page 340 of 532

merely acquires the latter’s interest in the When buyer is presumed to be in bad faith
property sold as of the time the property ● Annotation of adverse claim: Places any
was levied upon. [Carumba v. CA, G.R. No. subsequent buyer of the registered land in
L-27587 (1970)] bad faith. [Balatbat v. CA, G.R. No. 109410
(1996)]
d. Sale of Immovables: Unregistered Land ● Annotation of Lis Pendens: Buyer cannot
be considered an innocent purchaser for
Instrument or deeds establishing, value where it ignored the lis pendens on
transmitting, acknowledging, modifying or the title.
extinguishing rights with respect to lands ● A purchaser of a parcel of land cannot
not registered under the Land Registration close his eyes to facts which should put a
Act or the Spanish Mortgage Law, are reasonable man upon his guard, such as
required to be registered in the Registry of when the property subject of the purchase
Property to prejudice 3rd persons, although is in the possession of persons other than
such registration is understood to be the seller. A buyer who could not have
“without prejudice to a third party with a failed to know or discover that the land sold
better right”. [PD 1528 Sec 113] to him was in the adverse possession of
another is a buyer in bad faith. [Heirs of
Art. 1544 applies to unregistered land Ramon Durano v. Uy, G.R. No. 136456
subject to a conventional sale (because of (2000)]
Art. 1358) but NOT to unregistered land
subject to judicial sale. Annotation of
Lis Pendens
Adverse Claim
Unregistered by both buyers, the first buyer May be cancelled
May be cancelled
is preferred. only in one
even before the action
instance, i.e., after
is finally terminated
If first buyer did not register but second buyer the claim is
for causes which may
registered property, second buyer is preferred. adjudged invalid or
not be attributable to
unmeritorious by
the claimant
viii. Property Registration Decree [P.D. the Court
1529]
The two are not contradictory or repugnant to
REQUISITES FOR REGISTRATION OF one another; nor does the existence of one
DEED OF SALE IN GOOD FAITH automatically nullify the other, and if any of the
registrations should be considered
a. Purchaser in Good Faith - One who buys unnecessary or superfluous, it would be the
the property of another, without notice that notice of lis pendens [A. Doronila Resources
some other person has a right to or interest Development Inc v. CA, G.R. Nos. L-42956-
in such property, and who pays a full and 571988]
fair price for the sale, at the time of the
purchase or before he has notice of the b. Accompanied by vendors duplicate
claim/interest of some other person in the certificate of title, payment of capital
property. [Agricultural and Home Extension gains tax, and documentary tax
Development Group v. CA, G.R. No. 92310 registration fees
(1992)]
Must be accompanied by:
General Rule: As a rule, he who asserts the ● Vendor’s duplicate certificate of title
status of a purchaser in good faith and for value ● Payment of capital gains tax – 6% of the
has the burden of proving such assertion. selling price or zonal value, whichever is
[Mathay v. CA, G.R. No. 115788 (1998)] higher
Page 341 of 532

● Documentary tax registration fees – 1.5% makes an alteration in them in a

of the selling price or zonal value, manner proper only for an owner;
whichever is higher or
c. When the buyer, after the lapse of
ix. Risk of Loss a reasonable time, retains the
goods without intimating his
(Note: This is discussed under Section F of this rejection.
Sales Reviewer, on Risk of Loss.)
Vendee’s refusal
(2) To Warrant Against Eviction If vendee has the right to refuse and rightfully
and Against Hidden Defects refused upon delivery,
(Note: This is discussed under Section H of this He has no obligation to return them UNLESS
Sales Reviewer, on Warranties.) otherwise agreed BUT he has to take
reasonable care of the goods
4. Obligations of the Vendee
He is not a depositary thereof UNLESS he
voluntarily agrees to be one
Inspection and acceptance
i. Inspection/buyer’s right to examine
The buyer is deemed to have accepted the
[Art. 1584]
goods when:
1. He intimates to the seller that he has
General rule: The buyer is not deemed to have
accepted them
accepted the goods delivered which he has not
2. The goods have been delivered to him and
previously examined unless and until he has
he does any act in relation to them which is
had a reasonable opportunity to examine them
inconsistent with the ownership of the
for the purpose of ascertaining whether they
seller
are in conformity with the contract.
3. After the lapse of a reasonable time, he
retains the goods without intimating to the
Exception: If there is a stipulation to the
seller that he has rejected them. [Art. 1585,
contrary [par. 1, Art. 1584, CC]
CC]
General rule: The seller is bound, when he
General rule: Exercise of acts of ownership
tenders delivery to the buyer, on request, to
over the goods is a manifestation of
afford the buyer a reasonable opportunity to
acceptance, such as making use of them as
examine the goods for the purpose of
owner, making alterations in the goods, or
ascertaining whether they are in conformity
subjecting it to the process of manufacture.
with the contract.
Exception: Buyer’s right to make a test of
Exception: Unless otherwise agreed upon
goods, but only if necessary, to enable him to
[par. 2, Art. 1584, CC]
determine whether to accept or reject the
goods.
Exception to the right to examine: C.O.D.
Sales
Modes of acceptance
Where goods are delivered to a carrier by the
2. Express acceptance - Buyer intimates to
seller, in accordance with an order from or
the seller that the has accepted them
agreement with the buyer, upon the terms that
3. Implied acceptance
the goods shall not be delivered by the carrier
b. When the vendee, after delivery of
to the buyer until he has paid the price, whether
goods, does any act inconsistent
such terms are indicated by marking the goods
with the vendor’s ownership or
with the words "collect on delivery," or
Page 342 of 532

otherwise, the buyer is not entitled to examine i. Obligation to pay interest

the goods before the payment of the price, in
the absence of: The buyer shall owe interest on the price from
a. agreement; or the time the thing is delivered up to the time of
b. usage of trade payment if there is stipulation requiring
c. permitting such examination. [par. 3, interests, or even if there is none, if the thing
Art. 1584, CC] delivered produces fruits or income, or if the
buyer incurs in default from the time of judicial
ii. Delivery of goods in installment or extrajudicial demand for payment [Baviera].
General rule: The vendee is not bound to The three instances when the vendee shall pay
accept delivery of goods in installment interest for the period between delivery and
payment of the price:
Exception: Unless otherwise agreed upon 1. If there was a stipulation;
[par. 1, Art. 1583, CC] 2. If the thing sold and delivered produces
fruits or income;
Where separate price has been fixed for 3. If the vendee is in default, from the time of
each installment [par. 2, Art. 1583, CC] judicial or extrajudicial demand for
Where there is a contract of sale of goods payment [Art. 1589, CC].
1. To be delivered by stated installments,
2. To be separately paid for, and ii. Right of vendee to suspend payment
3. The seller makes defective deliveries in of price
respect of one or more installments, or the
buyer neglects or refuses without just The vendee has the right to suspend in two
cause to take delivery of or pay for one or instances:
more installments. 1. If he is disturbed in the possession or
ownership of the thing bought; or
It depends in each case on the terms of the 2. If he has reasonable grounds to fear such
contract and the circumstances of the case: disturbance, by a vindicatory action or a
1. Whether the breach of contract is so foreclosure of mortgage [Art. 1590, CC]
material as to justify the injured party in
refusing to proceed further and suing for Except
damages for breach of the entire contract, 1. If the vendor gives security for the return of
or the price in a proper case
2. Whether the breach is severable, giving 2. If it has been stipulated
rise to a claim for compensation but not to 3. If the vendor caused disturbance or danger
a right to treat the whole contract as to cease
broken. 4. If the disturbance is a mere act of trespass
5. If the vendee has already fully paid the
Obligation to pay the price price [De Leon]
Article 1582, CC: The vendee is bound to Should the vendee be disturbed in the
accept delivery and to pay the price of the possession or ownership of the thing delivered,
thing sold at the time and place stipulated in or should he have reasonable grounds to fear
the contract. such disturbance by a vindicatory action, or a
foreclosure of mortgage, he may suspend
If the time and place should not have been payment until the vendor has caused the
stipulated, the payment must be made at the disturbance or danger to cease, unless there is
time and place of the delivery of the thing a stipulation to the contrary [Baviera]
sold.
Page 343 of 532

In cases of delay of payment, one should also

be liable for interest and penalties for such One who sells something he does not own
delay in payment. It would be grossly unfair for yet is bound by the sale when he acquires
respondent to be deprived of the amount it the thing later. [Bucton v. Gabar, G.R. No.
would have received from the sale of their L-36359 (1974)]
properties, while petitioners benefited from the
use and continued possession of the properties 2. Estoppel: Owner is, by his conduct,
[Sps. Mahusay v. B.E. San Diego (2011)]. precluded from denying the seller’s
authority to sell. [Art. 1434, CC]
Obligation to Bear the
Expenses for the Execution and 3. Registered land bought in good faith
Registration of the Sale and
General rule: Buyer need not go beyond
Putting the Goods in a the Torrens Title
Deliverable State, if so
Stipulated Exception: When he has actual
knowledge of facts and circumstances that
Art.1521, par. 5: Unless otherwise agreed, the would impel a reasonably cautious man to
expenses of and incidental to putting the goods make further inquiry
into a deliverable state must be borne by the
seller. 4. Order of courts; statutory sale - In
execution sale, the buyer merely steps into
the shoes of the judgment debtor [Sec. 33,
5. Transfer of Ownership
Rule 39, ROC]
The ownership of the thing sold shall be
5. When goods are purchased in Merchant’s
transferred to the vendee upon the actual or
store, Fair, or Market [Art. 1505, CC]
constructive delivery thereof, or in any manner
signifying an agreement that possession is
transferred from the vendor to the vendee. Sale by Person Having a
[Baviera] Voidable Title
Note: The contract of sale constitutes only a 1. True owner may recover the thing when
right to the transfer or acquisition of ownership, the ff. requisites concur:
while delivery is the method of accomplishing • Subject matter is movable
the same. • Owner has either lost the thing or has
been unlawfully deprived. [Art. 559,
When the seller is not the owner CC]
General Rule: Ownership is not acquired by 2. Reimbursement is necessary before

the buyer. One cannot give what one does not owner can recover when:
have. [Art. 1505, CC] • Buyer acted in good faith
• Acquired at a public auction [Art. 559,
Exceptions CC]
1. Seller has a right to transfer ownership
3. Recovery no longer possible when:
Seller need not be the owner of the thing at • Buyer in good faith
the time of perfection of the contract. It is • Acquired it at a merchant’s store, fair or
sufficient that seller has a right to transfer market. [Art. 1506, CC]
ownership thereof at the time it is delivered.
[Art. 1459, CC]
Page 344 of 532

Requisites
a. Identity – between what must be
The manner of transfer
delivered and what is actually delivered
b. Integrity – in a condition suitable for
General Rule: Ownership of the thing sold
enjoyment
shall be transferred to the vendee upon actual
c. Intentional
or constructive delivery thereof [Art. 1477, CC]
What to Deliver
Exceptions
a. Thing sold [Art. 1495, CC]
a. Contrary stipulation
b. Fruits [Art. 1164 & 1537, CC] – belong
b. Contract to sell
to the vendee from day of perfection.
c. Contract of insurance
c. Accessions and accessories [Art. 1166
d. Sale on acceptance/Trial
& 1537, CC] – in the same condition
e. When seller is not the owner or has
they were in on day of perfection
voidable title
• Improvements by seller at his
expense grants him a usufructuary
Obligation to transfer ownership and to deliver
right [Art. 1138, 1189, CC]
is implied in every contract of sale [Arts. 1458-
1459, CC] • No indemnification
• But he may remove it to the extent
General Concepts that there is no damage [Art. 1538,
Under Article 1495, the seller has twin CC]
obligations to (a) transfer the ownership and (b)
deliver the thing, which is the object of sale to Where to Deliver
the buyer. In Article 1164, this includes the a. A hierarchy is followed:
obligation to deliver the fruits and accessories i. Stipulation
from the time the obligation to deliver it arises; ii. Usage of trade
however he shall acquire no real right over iii. Seller’s place of business (office)
them until the same has been delivered to him. iv. Seller’s residence
b. In case of specific goods, which the parties
Transfer of ownership is effected even if the knew to be at some other place when the
purchase has been made on credit. Payment contract was perfected, that place is the
of the purchase price is not essential to transfer place of delivery
of ownership as long as the property sold was c. If goods are at the time of sale are
delivered. possessed by a third person, then there is
no delivery until he acknowledges to the
Intention to transfer ownership buyer that he holds the goods for the buyer.
All forms of delivery shall be coupled with
intention of delivering the thing sold. When to Deliver
Absent a stipulation as to time, delivery must
Seller must be owner or authorized by owner of be made within a reasonable time; demand or
the thing sold tender of delivery shall be made at a
reasonable hour.
When right to transfer ownership must exist
At the time of delivery and not at the time of When delivery does not transfer
perfection of contract of sale. title
The concept of delivery Title remains with the seller notwithstanding

delivery of the goods. Buyer becomes the
owner when he:
a. Signifies his approval or acceptance to the
seller
Page 345 of 532

b. Does any other act adopting the b. Bill of lading is retained by the seller or his
transaction (i.e. sale to a third person) agent.
c. Retains the goods without giving notice of
rejection after the time fixed has expired; if When the seller of the goods draws on the
no time has been fixed, after the expiration buyer for the price and transmits the bill of
of a reasonable time [Art. 1502, CC] exchange and bill of lading to the buyer, and
the latter does not honor the bill of exchange
Sale on Return by returning the bill of lading to the seller.
Buyer becomes owner of the property on
delivery, BUT has the option to revest Sale by Person Having a Voidable Title
ownership in the seller instead of paying the a. True owner may recover the thing when the
price by returning the goods within the time ff. requisites concur:
fixed in the contract, or, if no time is fixed, within • Subject matter is movable
a reasonable time. Otherwise, the sale • Owner has either lost the thing or has
becomes absolute. been unlawfully deprived. [Art. 559,
CC]
Loss or destruction of the property prior to b. Reimbursement is necessary before owner
return falls upon the buyer and makes him can recover when:
responsible for the purchase price. • Buyer acted in good faith
• Acquired at a public auction [Art. 559,
Sale on Approval Sale on Return CC]
Ownership passes c. Recovery no longer possible when:
Ownership does not
to buyer on delivery • Buyer in good faith
pass upon delivery
remaining with the
and subsequent • Acquired it at a merchant’s store, fair or
return revests market. [Art. 1506, CC]
seller until buyer
ownership in the
signifies his approval.
seller. i. Actual delivery
Depends on the
Depends on the will
character or quality of Actual Delivery
of the buyer
goods Deemed made when the thing sold is placed in
Subject to a Subject to a the control and possession of the vendee [Art.
suspensive condition resolutory condition 1497, CC]
Risk of loss remains Risk of loss remains
Not always essential to passing of title [Art.
with the seller with the buyer
147, CC]
Express Reservation Parties may agree when and on what

If it was stipulated that ownership in the thing conditions the ownership shall pass to the
shall not pass to the purchaser until he has fully buyer [E.g.: Art 1478 where ownership will only
paid the price, then ownership remains with pass after full payment of the price]
seller even when delivery is made [Art. 1478,
CC] ii. Execution of public instrument [par. 1,
Art. 1498, CC]
Implied Reservation
The following are instances when there is an General Rule: produces the same legal effects
implied reservation of ownership: of actual delivery.
a. Goods are shipped, but by the bill of lading
goods are deliverable to the seller or his Exceptions
agent, or to the order of the seller or his 1. The parties intended otherwise.
agent 2. At the time of execution, the subject
matter was not subject to the control of
Page 346 of 532

the seller, which control must subsist

for a reasonable length of time after Example:
execution. [Pasagui v. Villablanca, Seller points to the property without actually
G.R. No. L-21998 (1975)] transferring physical possession thereof.
Although parties may stipulate that the Delivery by mere agreement; seller points out
execution of a public instrument is equivalent to the buyer the property without need of
to delivery, this legal fiction holds true only actually delivering (as when the thing sold
when there is no impediment that may prevent cannot be transferred to the possession of the
the passing of the property from the vendor to vendee at the time of sale). Delivery takes
the vendee. [Vda. de Sarmiento v. Lesaca, place when the thing is placed in the sight of
G.R. No. L-15385 (1960)] the purchaser so that he can take possession
of it at pleasure. With regard to movable
If, notwithstanding execution of the instrument, property, its delivery may also be made by the
the buyer cannot enjoy material tenancy and delivery of the keys of the place or depository
make use of the object himself or through where it is stored or kept.
another in his name, there is no delivery.
[Power Commercial v. CA, G.R. No. 119745 When an employer assigned all its rights and
(1997)] title to all surplus property salvaged by the
contractor, traditio longa manu takes place.
Execution of a public instrument gives rise only Delivery is upon the moment a thing is
to a prima facie presumption of delivery, salvaged. [Board of Liquidators v. Floro, G.R.
negated by failure of the buyer to take actual No. L-15155 (1960)]
possession of land sold. A person who does
not have actual possession cannot transfer v. Traditio brevi manu (short hand)
constructive possession by execution and
delivery of public instrument. [Spouses Delivery of movable property by mere consent
Santiago v. Villamor, G.R. No. 168499 (2012)] or agreement, if the buyer already had it in his
possession for any other reason. [Art. 1499,
iii. Symbolic delivery CC]
Delivery of keys of the place or depositary Happens when the already has possession of
where the movable is stored or kept. [Art. 1498, the thing sold before the sale by virtue of
CC] another title (as lessee, borrower, depositary,
etc.)
Unless otherwise agreed, when symbolic
delivery has been made, the seller is not vi. Traditio constitutum possessorium
obliged to remove tenants to place the buyer in
actual possession of the property as he has Seller continues to be in possession of the
already complied with his obligation to transfer property sold not as owner but in some other
ownership of and deliver the thing sold. [Power capacity, like as tenant or lessee.
Commercial and Industrial Corp. v. CA, G.R.
No. 119745 (1997); Sabio v. The International At the time of perfection, the seller held
Corporate Bank, Inc., G.R. No. 132709 (2001)] possession of the subject matter in the concept
of owner, and pursuant to the contract, the
iv. Traditio longa manu (long hand) seller continues to hold physical possession
thereof as lessee or other form of possession
Delivery of movable property by mere consent other than the concept of owner.
or agreement, if the thing sold cannot be
transferred to the possession of the buyer at For example, a seller remains in possession of
the time of sale. [Art. 1499, CC] the property sold, by virtue of a lease
Page 347 of 532

agreement with the vendee, at the time of the the goods alongside a vessel at a named
perfection of the contract of sale. port.
Vendee became, as lessor, the legal Double sale

possessor while the vendor is in material
possession of the property in the name and Article 1544 (1), CC: If the same thing
representation of the vendee. should have been sold to different vendees,
the ownership shall be transferred to the
Seller continues to be in possession of the person who may have first taken possession
property sold. thereof in good faith, if it should be movable
property.
vii. Quasi-traditio
Article 526, CC: He is deemed a possessor
Mode of delivery of incorporeal things or rights. in good faith who is not aware that there
exists in his title or mode of acquisition any
Delivery is effected: flaw which invalidates it.
• By execution of public instrument
• When such is not applicable, by placing He is deemed a possessor in bad faith who
the titles of ownership in the possesses in any case contrary to the
possession of the buyer foregoing.
• By allowing the buyer to use his rights
as new owner with the consent of the Mistake upon a doubtful or difficult question
seller of law may be the basis of good faith.
viii. Delivery to a common carrier Article 527, CC: Good faith is always
presumed, and upon him who alleges bad
General Rule: Delivery to the courier or carrier faith on the part of a possessor rests the
is tantamount to delivery to buyer, whether burden of proof.
carrier is named by buyer or not. The buyer
assumes the risk of loss. General Rule: Prior tempore, prior jure (“First
in time, priority in right”) applies.
Exceptions
1. Seller reserved title through the form of the Requisites:
bill of lading, with intent to remain the a. 2 or more valid sales;
owner, not merely for the purpose of b. Same subject matter;
securing payment, OR c. 2 or more buyers with conflicting
2. Contrary intention appears in the contract interests over the rightful ownership of
(i.e. seller is required to deliver goods to the thing sold;
buyer at the point of destination) d. Same seller. [Cheng v. Genato, G.R.
3. Delivery by the seller is in breach of the No. 129760 (1998)]
contract
4. F.O.B. (Free on Board or Freight on Board) Rules on Double Sale
- When seller bears the expenses of There is no double sale when:
transportation up to the F.O.B. point. a. Not all the elements of a sale are present
5. C.I.F. (Cost, Insurance, Freight) - Price b. The principle of prior tempore, prior jure (he
quoted includes the costs of the goods, who is first in time is preferred in right)
insurance, and freight charges on the should apply
goods up to the point of destination. c. The two different contracts of sale are
6. F.A.S. (Free Alongside) – Seller bears the made by two different persons, one of them
expenses of transportation until he delivers not being the owner of the property sold.
Page 348 of 532

d. The land sold is not yet registered under c. Second Sale Made by Virtue of Execution
the Torrens system and Attachment –
e. The first sale occurred when land was not Art. 1544 does NOT apply in cases where
yet registered, and the second sale was the first sale of an unregistered immovable
done when the land was already registered occurred prior to an execution sale and the
– prior tempore, prior jure should apply second sale occurred by virtue of an
execution sale. This is because a buyer of
Rules on preference unregistered land at an execution sale only
a. Personal property steps into the shoes of the judgment debtor
b. First possessor in good faith (the person who sold the property prior to
c. Real property the execution sale). The second buyer
d. First registrant in good faith: second buyer merely acquires the latter’s interest in the
must register the document in good faith, property sold as of the time the property
otherwise, he does not have a better right was levied upon. [Carumba v. CA, G.R. No.
e. First possessor in good faith L-27587 (1970)]
f. Person with oldest title in good faith d. Sale of Immovables: Unregistered Land –
Instrument or deeds establishing,
Rules Governing Sale of Movables, transmitting, acknowledging, modifying or
Immovables and Unregistered Lands extinguishing rights with respect to lands
a. Sale of Movable: Ownership shall be not registered under the Land Registration
transferred to the person who may have Act or the Spanish Mortgage Law, are
first taken possession in good faith. required to be registered in the Registry of
b. Sale of Immovables: Registered Land – Property to prejudice 3rd persons, although
Ownership belongs to the person who: such registration is understood to be
• In good faith first recorded the sale in “without prejudice to a third party with a
the Registry of Property; or better right”. [PD 1528 Sec 113]
• If there is no inscription of sale on the
title, ownership passes to the person Art. 1544 applies to unregistered land
who in good faith was first in subject to a conventional sale (because of
possession; or Art. 1358) but NOT to unregistered land
• In the absence thereof, to the person subject to judicial sale.
who presents the oldest title,
provided there is good faith. Unregistered by both buyers, the first buyer
is preferred.
Possession refers to any of the modes of
possession in Arts. 1497-1501, CC. If first buyer did not register but the second
buyer registered the property, the second
Oldest Title as to any public document buyer is preferred.
showing acquisition of the land in good
faith. To constitute “title,” the transmission g. Property Registration Decree
of ownership must appear in a public
document [Art. 1358 (1), CC]. Requisites for registration of deed of sale in
good faith
Registration includes any entry made in
the Primary Entry Book of the registry, a. Purchaser in Good Faith - One who buys
including both registration in its ordinary the property of another, without notice that
and strict sense and cancellation, some other person has a right to or interest
annotation, and even marginal notes. in such property, and who pays a full and
[Cheng v. Genato, G.R. No. 129760 fair price for the sale, at the time of the
(1998)] purchase or before he has notice of the
claim/interest of some other person in the
Page 349 of 532

property. [Agricultural and Home Extension

Development Group v. CA, G.R. No. 92310 b. Accompanied by vendors duplicate
(1992)] certificate of title, payment of capital
gains tax, and documentary tax
General Rule: As a rule, he who asserts the registration fees
status of a purchaser in good faith and for value
has the burden of proving such assertion. Must be accompanied by:
[Mathay v. CA, G.R. No. 115788 (1998)] • Vendor’s duplicate certificate of title
• Payment of capital gains tax – 6% of the
When buyer is presumed to be in bad faith selling price or zonal value, whichever is
Annotation of adverse claim: Places any higher
subsequent buyer of the registered land in bad • Documentary tax registration fees – 1.5%
faith. [Balatbat v. CA, G.R. No. 109410 (1996)] of the selling price or zonal value,
whichever is higher
Annotation of Lis Pendens: Buyer cannot be
considered an innocent purchaser for value 6. Risk of Loss
where it ignored the lis pendens on the title.
The Code Commission followed the common
A purchaser of a parcel of land cannot close his law rule that the OWNER bears the risk of
eyes to facts which should put a reasonable loss in absence of stipulation to the contrary,
man upon his guard, such as when the property
while retaining the rule in Roman Law which
*subject of the purchase is in the possession of
requires delivery by the seller, whether actual
persons other than the seller. A buyer who
or constructive, to transfer OWNERSHIP to the
could not have failed to know or discover that buyer.
the land sold to him was in the adverse
possession of another is a buyer in bad faith.
Article 1263, CC: In an obligation to deliver
[Heirs of Ramon Durano v. Uy, G.R. No.
a generic thing, the loss or destruction of
136456 (2000)]
anything of the same kind does not
extinguish the obligation.
Annotation of
Lis Pendens
Adverse Claim General Rule: Risk of loss shall be borne by
May be cancelled the owner (Note: owner is not always the seller)
May be cancelled
even before the
only in one instance,
action is finally Exceptions
i.e., after the claim is
terminated for 1. When ownership of the goods has been
adjudged invalid or
causes which may transferred to him, the buyer bears the risk
unmeritorious by the
not be attributable to of loss.
Court
the claimant 2. When there is a stipulation to the contrary.
3. When the seller retains the title for security,
The two are not contradictory or repugnant to the buyer bears the risk of loss.
one another; nor does the existence of one
4. When there is delay in the delivery, the
automatically nullify the other, and if any of the
party in fault bears the risk of loss.
registrations should be considered
5. When sale is for “approval or trial”, the
unnecessary or superfluous, it would be the
seller bears the risk of loss until the buyer
notice of lis pendens [A. Doronila Resources
approves or the trial period lapses.
Development Inc v. CA, G.R. Nos. L-42956-
6. When sale is on “return”, the buyer bears
571988]
the risk of loss until he returns it.
Page 350 of 532

(1) As avoided; or
Res Perit domino [Arts. 1263, (2) As valid in all of the existing goods or in
and 1189 CC] so much thereof as have not deteriorated,
and as binding the buyer to pay the agreed
Owner bears risk of loss and deterioration. The price for the goods in which the ownership
ownership is transferred only upon delivery. will pass, if the sale was divisible.
Prior to Perfection of Contract Partial Loss (Or loss

which results in
Total Loss
Seller bears risk of loss and deterioration. substantial change in
Basis: Res perit domino character)
Contract is void
Buyer may withdraw from
When there is no proof that the parties have because the
the contract
agreed as to the thing which should be the object did not
or
subject of the contract and that one has exist at the time
Buy the remainder at a
accepted the terms proposed by the other, it of the
proportionate price
cannot be said that the contracting parties have transaction.
given their mutual consent as to the subject
and consideration of the contract. The Article 1496 of the Civil Code which provides
disappearance or loss of property which the that in the absence of an express assumption’
owner intended or attempted to sell can only of risk by the buyer, the things sold remain at
interest the owner, who should suffer the loss, seller’s risk until the ownership thereof is
and not a third party who has acquired no rights transferred to the buyer,” is applicable to this
nor incurred any liability with respect thereto. case, for there was neither an actual nor
[Roman v. Grimalt, 1906] constructive delivery of the thing sold, hence,
the risk of loss should be borne by the seller,
Norkis, which was still the owner and
At Time of Perfection [Arts. 1493
possessor of the motorcycle when it was
and 1494, CC] wrecked. This is in accordance with the well-
known doctrine of res perit domino. [Norkis v.
Seller bears risk of loss and deterioration. CA, 1991]
Basis: Res perit domino.
After Perfection but Before
Article 1493, CC: If at the time the contract
of sale is perfected, the thing which is the
Delivery
object of the contract has been entirely lost,
the contract shall be without any effect. Loss
But if the thing should have been lost in part General Rule: Stipulations in the contract will
only, the vendee may choose between govern.
withdrawing from the contract and
demanding the remaining part, paying its Exception: In the absence of stipulation, there
are two conflicting views:
price in proportion to the total sum agreed
upon. 1. Res perit creditori or the buyer bears the
risk of loss.
Article 1494, CC: Where the parties purport
a sale of specific goods, and the goods with- This is an exception to the rule of res perit
out the knowledge of the seller have domino
perished in part or have wholly or in a
material part so deteriorated in quality as to Basis: Art. 1504, CC only covers goods.
be substantially changed in character, the
buyer may at his option treat the sale:
Page 351 of 532

Pursuant to Art. 1262, CC if the thing is Exceptions: [Art. 1504 (1) and (2), CC]
destroyed without the fault of the a. Where delivery has been made either to
debtor/seller, the obligation to pay shall the buyer or to the bailee for the buyer, but
subsist. ownership in the goods has been retained
2. Res perit domino or the seller bears the risk by the seller merely to secure performance
of loss. by the buyer of his obligations under the
Basis: The rule on loss is different from the contract; and
rule on deterioration for the loss would be b. Where actual delivery has been delayed
for the account of the seller, while the through the fault of either the buyer or
deterioration would be for the account of seller, the goods are at the risk of the party
the buyer. in fault.
In reciprocal obligations, the SUMMARY OF RULES ON THE RISK OF

extinguishment of the obligation due to loss LOSS
of the thing extinguishes the entire juridical Before Seller bears risk of loss or
relation. Perfection deterioration
Seller also benefits from the
Deterioration [Art. 1189 CC] fruits and improvements therein
Impairment is borne by the BUYER if the thing At Entire Loss will be ineffective
deteriorates without the fault of the seller. Perfection Substantial Loss or
Deterioration shall allow buyer
If it deteriorates through the fault of the seller, to withdraw or buy the
the buyer may choose between rescission of remainder at a proportionate
obligation and fulfillment, either case with price.
indemnity for damages. After Seller bears risk of loss
Perfection Buyer bears risk of
deterioration
After Delivery Buyer also benefits from the
fruits and improvements therein
Article 1504, CC: Unless otherwise agreed, Before Buyer bears risk of loss or
the goods remain at the seller's risk until the Delivery deterioration
ownership therein is transferred to the buyer, Buyer also benefits from the
but when the ownership therein is fruits and improvements therein
transferred to the buyer the goods are at the
buyer's risk whether actual delivery has
been made or not, except that:
7. Documents of Title
(1) Where delivery of the goods has been In General

made to the buyer or to a bailee for the
buyer, in pursuance of the contract and the Documents of Title to Goods – Includes bills
ownership in the goods has been retained by of lading, dock warrants, “quedans” or
the seller merely to secure performance by warehouse receipts or orders for the delivery of
the buyer of his obligations under the goods
contract, the goods are at the buyer's risk • This is proof of possession or control of
from the time of such delivery; the goods
• This also authorizes the possessor of
(2) Where actual delivery has been delayed the document to transfer or receive,
through the fault of either the buyer or seller either by indorsement or delivery, the
the goods are at the risk of the party in fault. goods represented by the document,
General Rule: Buyer bears risk of loss and Bill of Lading – A document issued by the
deterioration. common carrier acknowledging receipt of
Page 352 of 532

goods described therein for transportation to a divested of his rights merely upon loss of the
designated place and delivery to a named documents.
consignee
• It is a symbol of possession and control Rights Acquired by Negotiation
of the goods if it is negotiable in form A document of title represents the right of the
• This authorizes the consignee to consignee in the goods so that:
transfer the goods to another • A person to whom a negotiable document
• If properly negotiated, this shall of title had been duly negotiated acquires
operate as a transfer of possession of not merely the rights of his vendor but
the goods in transit as effectively as a also whatever rights the original
physical delivery thereof consignee had over the goods.
• The buyer of the document of title may
Kinds of Documents of Title acquire a better title than his vendor,
constituting an exception to Art. 1505, CC.
Negotiable – the goods described therein are
deliverable to bearer or to the order of the Note: The validity of the negotiation of a
consignee document of title to an innocent purchaser for
value is not affected by the fact that there was
Non-Negotiable – deliverable only to a a breach of duty on the part of the person to
specified person whom such document was entrusted by the
owner, or by the fact that the owner of the
NEGOTIABLE DOCUMENTS OF TITLE document was deprived of it by loss, theft,
fraud, accident, mistake, duress or conversion.
How Negotiated [Baviera]
A negotiable bill of lading may be negotiated by
delivery of the document to another if by the Example: If a negotiable instrument was
terms thereof, the goods are deliverable to indorsed in blank by the consignee and was
bearer stolen by the one who sold and delivered the
document to an innocent purchaser for value =
When the bill of lading was endorsed in blank the latter acquires the title of the consignee
by the person to whose order the goods
were deliverable. Implied Warranties
A person who transfers or negotiates a
If by its terms the goods are deliverable to the document of title for value:
order of a specified person, it can only be • Warrants not only the genuineness and
negotiated by indorsement of such person. validity of the document and his right to
transfer it
Who May Negotiate It • BUT ALSO assumed all the warranties
Only the owner of the document or one to of a vendor of goods.
whom possession or custody of the document
has been entrusted by the owner, may However, he does NOT warrant that the
negotiate it. [Art. 1512, CC] common carrier will fulfill its obligations to
deliver the goods or that the previous indorsers
Or the one to whom possession or custody of will fulfill their obligation.
document has been entrusted by the owner. • The indorser of a negotiable document of
This was in accordance with common law title does not assume the same warranties
denying the full effects of negotiability of bills of like that of a general indorser of a
lading inasmuch as they do not represent negotiable bill of exchange/promissory
money but merely evidence of performance of note
certain contractual duties. Owner should not be
Page 353 of 532

o A document of title refers to specific • Even if the deed of sale or donation is

goods in the possession of the evidenced in a public instrument, the
carrier execution of such instrument will not
○ This cannot be substituted by operate as a constructive delivery of the
similar goods of the same kind and goods described in the bill of lading where
quantity should the carrier fail to the goods are in possession of a third
deliver the goods described in the person.
document.
Rights Acquired by Transfer of Documents
Creditor’s Rights Against the Goods of Title
General Rule: Goods in the hands of the Transfer – the assignment of the rights of the
carrier covered by a negotiable document of consignee of a non-negotiable document of
title cannot be attached or levied upon title to another.
Exception: Unless the document be first
surrendered to the carrier or impounded by the Also refers to a case where an “order”
court or its negotiation be enjoined. document of title was sold or assigned, without
indorsement.
For the mercantile theory of documents of title
is founded on the idea that a negotiable The effect of a transfer of document of title is
document of title represents the goods that the transferee does not acquire a better
[Baviera]: title than his transferor.
! THUS, it is not allowable for the carrier
to deliver the goods without the The same rules governing sales of goods not
surrender of the negotiable bill of lading covered by a document of title apply.
to them
○ Or for the law to allow Illustration: Where an "order" bill of lading was
attachment or levy on the sold without endorsement, the transferee can
goods, regardless of an bring an action to compel the transferor to
outstanding negotiable endorse the document, unless a contrary
document of title. intention appears – but the “negotiation” will
take effect only as of the time endorsement is
NON-NEGOTIABLE DOCUMENTS OF TITLE actually made.
How Transferred Hence, before endorsement, the rights of the

Goods described in a non-negotiable transferee may be defeated by the rights of a
document of title are deliverable only to a prior party who was illegally deprived of
specified person: possession of such document.
• Thus, the carrier will NOT deliver the goods
to any holder of the document, 8. Warranties
• Or to whom such document of title may
have been endorsed by the consignee. Warranties - A statement or representation
made by the seller contemporaneously and as
There must be evidence of the sale or donation part of the contract of sale, having reference to
of the goods: the character, quality, or title of the goods, and
• The person must present to the carrier the by which he promises or undertakes to ensure
deed of sale or donation in his favor. that certain facts are or shall be as he then
• Hence, delivery of such document to a represents.
purchaser or donee cannot operate as a
symbolic delivery of the goods described Not every false representation voids the
therein as would pass title to the latter. contract, only those matters substantially
affecting the buyer’s interest, not matters of
Page 354 of 532

opinion, judgment, probability, or expectation. If seller has promised that the condition should
When the buyer undertakes his own happen or be performed, the buyer may treat
investigation, and the seller does nothing to the nonperformance of the condition as a
prevent it from being as full as the buyer breach of warranty. [Art. 1545, CC]
chooses, the buyer cannot afterwards allege
misrepresentations. [Songco v. Sellner, G.R. Express Implied
No. L-11513 (1917)] Nature is
Contractual; Freely Constituted by Law
Economic Loss Doctrine: Where the defect Represented
makes the goods less valuable Only seller is bound,
Stipulated by parties,
whether or not
Condition v. Warranty thereby binding both
intended or known
the seller and buyer
Article 1545, CC: Where the obligation of by the parties.
either party to a contract of sale is subject to
any condition which is not performed, such Express Warranties
party may refuse to proceed with the
contract or he may waive performance of the For there to be express warranty, the following
condition. If the other party has promised requisites must concur:
that the condition should happen or be a. An affirmation of fact or any promise
performed, such first mentioned party may relating to the thing sold;
also treat the nonperformance of the b. The natural tendency of such
condition as a breach of warranty. affirmation or promise is to induce the
buyer to buy;
Where the ownership in the thing has not c. The buyer buys the thing relying
passed, the buyer may treat the fulfillment by thereon. [Art. 1546, CC]
the seller of his obligation to deliver the same d. Made before the sale, not upon
as described and as warranted expressly delivery or any other point
or by implication in the contract of sale as a
condition of the obligation of the buyer to An express warranty can be made by and also
perform his promise to accept and pay for be binding on the seller even in the sale of a
the thing. second hand article. [Moles v. IAC, G.R. No.
73913 (1989)]
Condition Warranty
Goes into the Express Warranty v. Dealer’s/Trader’s Talk
Pertains to and performance of an Article 1545, CC: Any affirmation of fact or
affects the existence obligation and may, any promise by the seller relating to the thing
of the obligation in itself, be an is an express warranty if the natural
obligation tendency of such affirmation or promise is to
Non-happening does Non-fulfillment induce the buyer to purchase the same, and
not amount to breach constitutes breach if the buyer purchase the thing relying
of contract of contract thereon. No affirmation of the value of the
Stipulation or thing, nor any statement purporting to be a
Must be stipulated statement of the seller's opinion only, shall
operation of law
Always relates to the be construed as a warranty, unless the seller
May attach either to made such affirmation or statement as an
subject matter or the
the seller’s duty to expert and it was relied upon by the buyer.
seller’s obligations
deliver thing or some
as to the subject
other circumstance Article 1340, CC: The usual exaggerations
matter
in trade, when the other party had an
Page 355 of 532

opportunity to know the facts, are not in Implied Warranties [Art. 1547,
themselves fraudulent. CC]
Article 1341, CC: A mere expression of an An implied warranty is derived by law, by
opinion does not signify fraud, unless made implication, or inference from the nature of the
by an expert and the other party has relied transaction or relativation, or circumstances of
on the former's special knowledge. the parties, irrespective of any intention of the
seller to create it. [De Leon]
Express
Dealer’s or Trader’s Talk
Warranty Implied Warranty of Title
What is a. Implied Warranty against
Affirmation of the value of the
specifically Encumbrance/Non-Apparent Servitudes
thing or statement of only the
represented b. Implied Warranty against Hidden Defects
seller’s opinion is not a
as true in [Art. 1547, CC]
warranty unless:
said
● The seller made it as an • Implied Warranty as to Merchantable
document Quality and Fitness of Goods
expert;
cannot be
● It was relied upon by the • Implied Warranty against Redhibitory
considered Defect in the Sale of Animals [Art.
buyer. [Art.1546, CC]
as mere 1572, CC]
● Ordinarily, what does not
dealer's • Quality and Fitness of Goods in Sale by
appear on the face of the
talk. [Moles Sample or Description
written instrument [Moles
v. IAC, c. Other Warranties
v. IAC, supra]
supra]
IMPLIED WARRANTY OF TITLE
Express Warranty v. False Representation
Article 1342, CC: Misrepresentation by a Implied warranty arises by operation of law and
third person does not vitiate consent, unless need not be stipulated in the contract of sale.
such misrepresentation has created
substantial mistake and the same is mutual. Warranty of Seller’s Right to Sell: Seller
warrants his right to sell at the time the
Express ownership is to pass.
False Representation
Warranty
When concealment of facts Inapplicable to a sheriff, auctioneer,
comes with an active mortgagee, pledgee, or other person
misstatement of fact or a professing to sell by virtue of authority in fact or
partial statement of fact, such law. [Art. 1547, CC]
that withholding of that unsaid
portion makes that which is Warranty against Eviction: Seller warrants
stated absolutely false.
Concealment that buyer, from the time ownership passes,
of facts does shall have and enjoy legal and peaceful
However, a buyer who fails to
not possession of the thing. Its requisites are:
inspect the condition of
necessarily
property despite ample a. Buyer is deprived of the whole or a part of
amount to the thing sold;
opportunity to do so when
false b. Eviction is by final judgment;
there is no opposition on the
representation c. Final judgment based on a right prior to the
part of seller to inspect cannot
later on allege false sale or an act imputable to the vendor;
representation. [Philippine d. Seller is summoned and made co-
Manufacturing Co. v. Go defendant in the suit for eviction at the
Jocco, G.R. No. L-24256 instance of the buyer. [Power Commercial
(1926)] and Industrial Corp. v. CA, G.R. No.
119745 (1997)]
Page 356 of 532

IMPLIED WARRANTY AGAINST Merchantable Quality

ENCUMBRANCE/NON-APPARENT a. Where the goods are brought by
SERVITUDES description from a seller who deals in
goods of that description [Art. 1562, CC]
Requisites for breach: b. In a sale by sample, if the seller is a dealer
a. Thing sold is an immovable in goods of that kind and the defect is not
b. Burden or servitude encumbering the thing apparent on reasonable examination of the
sold is: sample [Art. 1566, CC]
1. Non-apparent to the naked eye
2. Not mentioned in the agreement Warranty of merchantability is warranty that
3. Of such nature that it must be goods are reasonably fit for the general
presumed that the buyer would not purpose for which the same are sold.
have bought it had he been aware of it
4. Not recorded in the Registry of Warranty of fitness is warranty that goods are
Property unless there is an express suitable for the special purpose of the buyer
warranty that the thing is free from all which will not be satisfied by mere fitness for
burdens and encumbrances [Art. 1560, general purposes.
CC]
In a sale by sample, there is implied warranty
IMPLIED WARRANTY AGAINST HIDDEN that goods are free from defects not apparent
DEFECTS on reasonable examination of sample and
which render goods unmerchantable.
Requisites for breach: [Mendoza v. David, G.R. No. 147575 (2004)]
a. The defect renders the thing sold unfit
for the use for which it was intended “Fitness for a particular purpose”: Where
OR diminishes its fitness for such use the buyer expressly or impliedly makes known
to such an extent that had the buyer to the seller the particular purpose for which the
been aware thereof, he would not have goods are acquired AND it appears that the
bought it or would have paid a lower buyer relied on the seller’s skill or judgment
price; [Art.1562(1), CC]
b. The defect is not patent or visible;
c. The buyer is not an expert who, by IMPLIED WARRANTY AGAINST
reason of his trade or profession, REDHIBITORY DEFECT IN THE SALE OF
should have known the defect ANIMALS [Art. 1572, CC]
d. The seller is aware of the hidden fault
or defect, OR even if he is not aware Redhibitory defect – a hidden defect of
thereof, if there is no stipulation to the animals of such nature that expert knowledge
contrary [Art.1566] is not sufficient to discover it, even in a case
where a professional inspection has been
The buyer must also give notice of such made
redhibitory defect within a reasonable time.
No warranty in case of [Art. 1574, CC]
The use contemplated must be that which is a. Animals sold at fairs or public auctions
stipulated, and in the absence of stipulation, b. Livestock sold as condemned
that which is adopted to the nature of the thing,
and to the business of the buyer. The following sales are void [Art. 1575, CC]
a. Sale of animals suffering from contagious
IMPLIED WARRANTY AS TO diseases
MERCHANTABLE QUALITY AND FITNESS b. Sale of animals unfit for the purpose for
OF GOODS which they are acquired as stated in the
contract
Page 357 of 532

reasonable man upon his guard and then claim

Veterinarians are liable if they fail to discover that he acted in good faith under the belief that
or disclose the hidden defect through there was no defect in the title of the vendor.
ignorance or bad faith. [Art. 1576, CC]
Buyer’s Options in Case of
Seller liable if animal dies within 3 days after Breach of Warranty
its purchase due to a disease that existed at
the time of sale. [Art. 1578, CC] Remedies of buyer for breach of warranty,
both implied and express:
Effects of Warranties • Accept goods + demand
diminution/extinction of price
a. Natural tendency is to induce buyer to • Accept goods + damages
purchase the subject matter • Refuse to accept goods + damages
b. Buyer purchases subject matter relying Rescind (Refuse to accept or return or offer
thereon to return) + recover price paid [Art. 1599,
c. Seller liable for damages in case of breach CC]
Effects of Waivers EXPRESS WARRANTY
Only applicable to waiver of warranty against Prescriptive period: Period specified in

eviction; parties may increase or decrease express warranty OR 4 years, if no period is
warranty against eviction but the effect specified (following the general rule on
depends on good/bad faith of the seller: rescission of contracts)
a. Seller in bad faith and there is warranty
against eviction – null and void Remedies
b. Buyer without knowledge of a particular Rescission not available when buyer:
risk and made general renunciation of a. Knew of breach of warranty when he
warranty – not waiver but merely limits accepted the goods without protest
liability of seller in case of eviction (pay b. Fails to notify the seller about election to
value of subject matter at the time of rescind within a reasonable period of time
eviction) c. Fails to return or offer to return the goods
c. Buyer with knowledge of risk of eviction to the seller in substantially a good
assumed its consequences and made a condition as they were when delivered,
waiver – vendor not liable unless deterioration was due to breach of
d. Waiver to a specific case of eviction – warranty
wipes out warranty as to that specific risk
but not as to eviction caused by other Measure of damages: Difference between
reasons value of goods at the time of delivery and the
value they would have had if they had
One who purchases real estate with knowledge answered to the warranty
of defect or lack of title cannot claim he
acquired title thereto in good faith, as against Effects of rescission
true owner of land or of interest therein. [J.M. a. Buyer no longer liable for price: Entitled
Tuason v. CA, G.R. No. L-41233 (1979)] The to the return of any part of price paid,
same rule must be applied to one who has concurrently with or immediately after
knowledge of facts which should have put him an offer to return the goods
upon such inquiry and investigation as might b. If seller refuses to accept offer to return
be necessary to acquaint him with the defects goods: buyer deemed as bailee for
in the title of his vendor. A purchaser cannot seller and has right of lien to secure
close his eyes to facts which should put a payment of part of price paid
Page 358 of 532

IMPLIED WARRANTY AGAINST EVICTION

[Arts. 1555, 1556, CC] IMPLIED WARRANTY AGAINST
Total Eviction Partial Eviction ENCUMBRANCES [Art. 1560, CC]
Enforce liability for
eviction Enforce liability Rescission: Within 1 year from execution of
(demand deed of sale OR
Demand from seller: VICED)
(VICED) OR Damages: Within 1 year from execution of
a. Value of thing sold at Rescind within 6 deed of sale or discovery of the burden or
time of eviction months from servitude
b. Income or fruits, if he delivery
has been ordered to a. If he would IMPLIED WARRANTY AGAINST HIDDEN
deliver them to the not have DEFECTS [Arts. 1567-1571, CC]
party who won the bought the
eviction suit thing sold If thing is not lost:
c. Costs of eviction suit without the • Withdraw from contract (accion
and in a proper case, part lost; redhibitoria) + damages
suit against seller for b. BUT he must • Demand a proportionate reduction of the
warranty return the price (accion quanti minoris) + damages
d. Expenses of the thing without
contract, if buyer has other If thing is lost:
paid them encumbranc Due to fortuitous
e. Damages and es than Due to hidden fault event or fault of
interests, and those which buyer
ornamental it had when Demand:
If seller aware of
expenses, IF sale he acquired a. Price paid
defect, buyer may
was made in bad it minus value
demand:
faith of thing
a. Return of
when it was
price
Rules lost
b. Refund of
a. Buyer need not appeal from decision to b. Damages, if
expenses
hold seller liable for eviction seller acted
c. Damages
b. When adverse possession commenced in bad faith
before sale, but prescription period If seller not aware of
completed after transfer: seller is not liable defect:
c. If property sold for nonpayment of taxes Buyer may demand
due and not made known to the buyer price and expenses
before the sale: seller liable BUT NOT damages
d. Judgment debtor also responsible for
eviction in judicial sales, unless it is Prescriptive period: 6 mos. from delivery
otherwise decreed in the judgment
IMPLIED WARRANTY AGAINST
If there is waiver of warranty: REDHIBITORY DEFECTS OF ANIMALS
a. Seller acted in bad faith: Waiver is void,
seller liable for eviction Remedies
b. Buyer made waiver without knowledge of • Withdraw from contract + damages
risks of eviction: Seller liable only for the • Demand a proportionate reduction of the
value of the thing sold at time of eviction price + damages
c. Buyer made waiver with knowledge of
risks: Seller not liable; buyer assumed the If sale is rescinded:
consequences
Page 359 of 532

a. Buyer must return animal in the condition in Remedies of the Seller

which it was sold and delivered
b. Buyer shall be liable for injury due to his QUICK SUMMARY OF REMEDIES OF
negligence. SELLER
REMEDY
Prescriptive period: 40 days from delivery Damages, Rescission, Price
through Specific
Warranty in Sale of Consumer Performance.
Movables
Goods Special Remedies:
Possessory lien, Stoppage in
If implied warranty accompanies express transitu, Resale, Rescission
warranty, both will be of equal duration. [Sec. Exact fulfillment, Cancellation
Movables on
68, RA 7394] of the Sale, Foreclosure of
Installment
Chattel Mortgage
Express Warranty Implied Warranty Price through Specific
a. Retain the Performance, Rescission (for
a. Demand repair Immovables
goods and anticipatory breach and for
within 30 days;
recover non-payment)
extendible for
damages Contract of Sale: Rescission
causes beyond the
OR Immovables through Article 1592, CC
control of the
b. Reject the on Contract to Sell: Rescission
warrantor
goods, cancel Installment through Maceda Law (RA
b. Demand refund of
contract and 6552)
price minus amount
recover from
directly attributable
seller so much 1. Sale of Goods
to the use of the
of the purchase
consumer prior to
price as has ACTION FOR PRICE [Art. 1595, CC]
the discovery of the
been paid + a. When the ownership of the goods has
non-conformity
damages passed to the buyer and he wrongfully
neglects or refuses to pay for the price
9. Breach of Contract b. When the price is payable on a certain day
and the buyer wrongfully neglects to pay
The following remedies arise from the such price, whether or not ownership has
bilateral nature of the contract of sale: passed
a. Specific performance c. When the goods cannot readily be resold
b. Rescission for a reasonable price, and the buyer
c. Damages wrongfully refuses to accept the goods,
whether or not ownership has passed
General rule: Rescission of a contract will not
be permitted for a slight or casual breach, but In an action by the seller under (2), buyer can
only for such substantial and fundamental set up the defense that the seller, at any time
breach as would defeat the very object of the before judgment in such action, could not or did
parties in making the agreement. [Song Fo & not intend to deliver the goods.
Co. v. Hawaiian-Philippine Co., G.R. No.
23769 (1925)] Unless the contrary appears, payment and
delivery are presumed to be concurrent acts,
Prescriptive periods and the obligation of each party to perform the
• 10 years if based on written contract contract is dependent upon the simultaneous
• 6 years if based on oral contract performance by the other party [de Leon].
Page 360 of 532

If ownership has not yet passed to the buyer, perform his obligations, or has committed a
the seller cannot maintain an action for the breach of the contract of sale.
price, unless it involves (1) or (3). Under this rule, rescission would bar an action
Title to goods passes from the moment the on the contract because it means cancellation
goods are placed at the buyer’s disposal when of the contractual obligations between the
refusal to accept is without just cause. [de Leon parties. [Baviera]
citing Art. 1588, CC]
The unpaid seller’s right to rescind for non-
ACTION FOR DAMAGES [Art. 1596, CC] performance is not absolute. Not allowed to
When ownership has not yet passed and the rescind when:
buyer, without lawful cause, neglects or a. There are 3rd persons possessing the
refuses to ACCEPT and PAY for the goods objects of the contract to whom no bad faith
is imputable [de Leon; Ocejo Perez & Co.
General rule: Measure of damages is the v. International Bank, G.R. No. L-10658
ESTIMATED LOSS directly and naturally (1918)]
resulting in the ordinary course of events from b. Breach is on slight or casual [de Leon;
the buyer’s breach. Song Fo & Co. v. Hawaiian-Phil. Co.,
supra]
Exceptions:
a. Where there is available market for goods: The seller cannot unilaterally and
Difference between the contract price and extrajudicially rescind a contract absent
the market price. The market price is fixed express stipulation to do so, except as
at the time the goods ought to have been provided in Art. 1597. [De Leon]
accepted, or if no time was fixed, at the
time of refusal to accept. 2. Special Remedies of the Unpaid
Seller [Arts. 1525-1535, CC]
Note: When there are special
circumstances showing proximate a. Possessory lien;
damages of a greater amount than the b. Stoppage in transitu;
difference between the contract price and c. Special right of resale; and
market price, seller is entitled to such d. Special right to rescind
higher amount of damages when such
damages may be reasonably attributed to Note: These special remedies have a
the non-performance of the obligation. [de hierarchical application. The special rights to
Leon; par. 3, Art. 1596 read with par. 2, Art. resell and to rescind can be availed of by the
2201, CC] unpaid seller only when either of the two prior
rights of possessory lien or stoppage in transitu
b. Where labor or expense of material amount have been exercised by the unpaid seller.
is necessary on the part of the seller to [Villanueva]
perform the contract: Cost of labor
performed or expenses made before Definition of an Unpaid Seller
receiving notice of buyer’s repudiation, and
unrealized profit. Art. 1525. Seller is deemed to be unpaid seller:
1. When the whole of the price has not
RESCISSION BY GIVING THE BUYER been paid or tendered;
NOTICE OF THE ELECTION TO RESCIND 2. When a bill of exchange or other
[Art. 1597, CC] negotiable instrument has been
When the goods have not yet been delivered to received as conditional payment, and
the buyer, and the buyer repudiated the the condition on which it was received
contract of sale, or manifested his inability to has been broken by reason of the
Page 361 of 532

dishonor of the instrument, the c. Seller waives the lien

insolvency of the buyer, or otherwise. ● But it is not lost with respect to the
remainder of the goods when only
Unpaid Seller also includes: partial delivery is made (unless such is
a. The agent of the seller to whom the bill symbolic delivery of the whole)
of lading was endorsed, ● It is not lost by the mere fact that seller
b. The consignor or agent who had paid obtained a judgment for the price
the price or is responsible for the price
c. Any other person who is in the position When Lien May Be Revived After Delivery
of a seller (i.e. buyer who paid the price a. If the buyer refuses to receive the goods
and had a right to return the goods). after the same are delivered to the carrier
[Art. 1525, CC] or other bailee on his behalf, though the
seller has parted with both ownership and
A seller is considered to be an unpaid seller if possession. Here, the seller may reclaim
the whole price has not been paid or tendered, the goods and revest the lien. [par. 1 (2).
or when check received as a conditional Art 1531, CC]
payment was dishonored by non-payment or b. If the buyer returns the goods in wrongful
insolvency of the buyer. [Baviera] repudiation of the sale, and the seller, in
accepting the goods from the buyer, says
POSSESSORY LIEN OVER THE GOODS he does not assent to the rescission.
Right to retain possession of goods until
payment or tender of the whole price, or unless Possessory lien is lost after the seller loses
he agrees to sell on credit [Arts. 1526-1529, possession but his lien as an unpaid seller
1503, 1535, CC] remains. His preference can only be defeated
When lien available by the government’s claim to the specific tax on
a. The seller is unpaid the goods. [Arts. 2241, 2247, CC]
b. The unpaid seller has possession over the
thing RIGHT OF STOPPAGE IN TRANSITU
c. Ownership of the thing has passed to the An extension of the lien for the price; entitles
buyer unpaid seller to resume possession of the
d. Any of the following: [Art 1527, CC] goods while they are in transit before the goods
• Goods are sold without stipulation as to come in possession of the vendee. [Arts. 1530-
credit 1532, 1535, 1636(2) CC]
• Goods are sold on credit, but term of
credit has expired Note: This is an old common law remedy which
• Buyer becomes insolvent is an extension of the lien for the price and
entitles the unpaid seller to resume possession
The seller may exercise his right of lien of the goods while they are in transit before the
notwithstanding that he is in possession of the goods come in possession of the vendee if the
goods as agent or bailee for the buyer [par. 2, latter is or becomes insolvent.
Art. 1527, CC]
Requisites for the exercise of stoppage in
When unpaid seller loses his lien [Art. 1529, transitu
CC] a. The seller is unpaid
a. Seller delivers goods to carrier or other b. The buyer is insolvent
bailee for transmission to the buyer without c. The goods are in transit
reserving ownership or right of possession d. The seller either takes actual possession,
(i.e. under a straight or non-negotiable bill or gives notice of claim to the carrier or
of lading) other person possessing the goods
b. Buyer or his agent lawfully obtains
possession of goods
Page 362 of 532

e. The seller must surrender the negotiable b. By giving notice of his claim to the
instrument or title, if any, issued by the carrier/other bailee who has possession of
carrier/bailee the goods
f. The seller must bear the expenses of the • Carrier must redeliver goods to seller,
delivery of the goods after exercise of such or according to his instructions
right. • Carrier not obliged to redeliver until the
negotiable document of title, if any, has
When Goods Are In Transit [par. 1, Art 1531, been surrendered for cancellation
CC]
a. From the time of delivery to the carrier or Effect When Buyer Has Sold the Goods [Art.
other bailee by the seller, for the purpose 1535, CC]
of transmission to the buyer, until the buyer General Rule: Seller’s right to stoppage in
or his agent takes such delivery from the transitu is not affected even if buyer has sold or
carrier. disposed of the goods unless the seller has
b. Even when goods have reached their given his assent thereto.
ultimate destination, if buyer rejects them Exceptions:
and carrier retains possession a. When seller has given consent thereto
b. When a negotiable document of title has
To terminate transit by delivery to a been issued for the goods to a purchaser
middleman, delivery must be to keep, not to for value in good faith
transport.
SPECIAL RIGHT OF RESALE
In case of misdelivery, the goods are still Available to unpaid seller who has a right of lien
considered in transit, hence, the seller may still or who has stopped the goods in transitu [Art.
exercise his right pursuant to Article 1523. 1533, CC].
When Goods are No Longer in Transit [par. When available

2, Art. 1531, CC] When the unpaid seller has either a right of lien
a. Buyer obtained delivery of the goods or has stopped the goods in transitu and under
before they have reached their appointed any of the following conditions:
destination a. The goods are perishable in nature
b. Goods have arrived at the appointed b. The right to resell is expressly reserved in
destination, and the carrier/bailee case the buyer should default
acknowledges to hold the goods on behalf c. The buyer delays in paying the price for an
of the buyer unreasonable time
c. Goods have arrived at the appointed
destination, but carrier wrongfully refuses The right to resell the goods is not mandatory,
to deliver to buyer/his agent but permissive.
Note: If the goods are delivered to a ship, How exercised

freight train, truck, or airplane chartered by the a. He must do so within a reasonable time
buyer, it is a question depending on the and in such manner as to obtain the best
circumstances of the particular case, whether price possible.
they are in the possession of the carrier as b. The place of sale shall be at the place of
such or as agent of the buyer. delivery, except if the seller cannot sell the
thing at a fair price at the place of delivery.
How Right is Exercised [Art. 1532, CC] c. Resale is deemed to be a fair sale if it is
a. By obtaining actual possession of the undertaken in accordance with established
goods business practices, with no attempt to take
advantage of the original buyer.
Page 363 of 532

d. Resale may be in a private or public sale, WHEN APPLICABLE

but seller cannot buy directly or indirectly.
e. For resale to be valid, buyer need not be Sale of movables in installment
notified of an intention to resell or the time The rule is intended to apply to sales of
and place of the resale. movables, the price of which is payable in 2 or
more installments, but not to straight-term
Exception: if the ground for resale is failure to sales where the price is payable in full, after
pay for an unreasonable amount of time making a down payment because the law aims
The seller must exercise reasonable judgment to protect improvident buyers who may be
in making the sale. tempted to buy beyond their means. [Levy
Hermanos v. Gervacio, G.R. No. l-46306
Effects of Resale: (1939)]
a. Seller is no longer liable to the original
buyer upon the contract of sale or for any Lease of personal property with option to
profit made by the resale buy
b. Buyer at resale acquires good title as When lessor has deprived the lessee of the
against the original owner possession or enjoyment of the thing (i.e.
c. In case resale is at a loss, seller is entitled lessor files a complaint for replevin against
to recover the difference from the original lessee).
buyer
d. Seller may recover damages from original Also applies when seller assigns his credit to
buyer for breach of contract someone else.
SPECIAL RIGHT TO RESCIND ALTERNATIVE AND EXCLUSIVE

Return of the title over the undelivered goods REMEDIES
to the seller, and right to recover damages for
breach of contract [Art. 1534, CC] Note: The exercise of one remedy bars the
exercise of the others.
When available
When the unpaid seller has either a right of lien a. Specific Performance
or has stopped the goods in transitu and under
any of the following conditions: General Rule: When the seller has chosen
a. Seller expressly reserved his right to specific performance, he can no longer seek
rescind in case buyer defaults for rescission or foreclosure of the chattel
b. Buyer has been in default in payment for an mortgage
unreasonable time
Exception: If specific performance has
Transfer of title shall not be held to have been become impossible, the seller may still choose
rescinded by the unpaid seller until he rescission [Art. 1191, CC]
manifests by notice to the buyer or some other
overt act an intention to rescind. b. Cancellation of sale if vendee fails to
pay 2 or more installments
Communication of rescission to buyer is not
always necessary (it can be an overt act). But When the seller cancels the sale by
giving/failure to give notice is relevant in repossessing the property sold, he is barred
determining reasonableness of time given to from exacting payment for its price.
the buyer to make good his obligation under It can only be carried out when he who
contract. [de Leon] demands rescission can return whatever he
may be obliged to restore. [Art. 1385, CC]
3. Recto Law: Sale of Movables on
Installment – Arts. 1484-1486, CC
Page 364 of 532

c. Foreclosure of Chattel Mortgage if rescission. If absolute sale, seller must make a

vendee fails to pay 2 or more demand for rescission.
installments a. Judicially, OR
b. By a notarial act
If seller chooses this remedy, he shall have no
further action to recover any unpaid balance, Demand necessary even if automatic
and any stipulation to the contrary shall be void. rescission is stipulated
The purpose of the law is to remedy the abuses a. Effect of lack of demand: Buyer can still pay
committed in foreclosure of chattel b. Effect of demand: Court may not grant
mortgages. It prevents mortgagees from buyer a new term
seizing the mortgaged property, buying it at
foreclosure sale for a low price and then SECS. 23 AND 24, PD 957
bringing the suit against the mortgagor for a Non-forfeiture of payments
deficiency judgment. The almost invariable No installment payment made by the buyer
result of this procedure was that the mortgagor shall be forfeited in favor of the owner or
found himself minus the property and still developer of the condominium or subdivision
owing practically the full amount of his original project, after due notice, when the buyer
indebtedness. [Bachrach Motor Co., Inc. v. desists from paying due to the failure of the
Millan, G.R. No. L-42256 (1935)] developer or owner to develop the project
according to the approved plans or within the
4. Sale of Immovables time limit stated.
RESCISSION FOR ANTICIPATORY Buyer’s Remedy: At his option, he may

BREACH [ART. 1591, CC] reimburse the total amount paid including
Note: This is applicable to both cash sales and amortization interest with interest thereon at
sales in installments. the legal rate.
Requisites If the buyer fails to pay the installments for

a. There is delivery of immovable property reasons other than the failure of the owner or
b. Vendee has not yet paid the price; and developer to develop the project, his rights
c. Vendor has reasonable grounds to fear the shall be governed by RA 6552.
loss of property and the loss of price
5. Maceda Law (RA 6552): Sale of
If there is no such reasonable ground, Art. 1191 Immovables on Installment
applies (specific performance or rescission
with damages). RA 6552 does NOT apply to:
a. Industrial lots
Court has no discretion to compel the seller to b. Commercial buildings
wait for the expiration of the period to pay, or to c. Sale to tenants under Agricultural Reform
grant the buyer more time to pay. Code [RA 3844]
d. Sale of lands payable in straight terms
SPECIFIC PERFORMANCE + DAMAGES OR [Sec. 3, RA 6552]
RESCISSION + DAMAGES [Art. 1191, CC]
Seller may choose between specific Rights of the Buyer:
performance and rescission, with damages in The law imposes additional requirements on
either case. Court has discretion, for a just the part of the seller for a valid rescission.
cause, to give the buyer more time to pay even a. If buyer has paid at least 2 years of
if the seller chooses rescission. installments then defaults:
• Buyer has right to a grace period of 1
If seller chose specific performance, and such month per year of installment payment
becomes impossible, he may still avail of
Page 365 of 532

made BUT the buyer may only avail of However, mere filing of an unlawful detainer
the grace period once every 5 years suit by the seller does not operate as such
• Buyer has right to the refund of Cash notice. [de Leon]
Surrender Value (CSV): 50% of total
amount paid + 5% for every year after b. Remedies of the Buyer
the first 5 years of installments BUT
total CSV should not be greater than General rule: Courts will refuse to decree
90% of total amount paid specific performance with respect to chattels
• After the lapse of the grace period, because damages are a sufficient remedy.
buyer is given a notice of cancellation
or demand for rescission by notarial Exception: Buyer is entitled to the specific
act, effective 30 days from the buyer’s thing which to him has special value and which
receipt thereof AND only upon full he cannot readily obtain in the market OR
payment of CSV where damages would not furnish a complete
and adequate remedy. [Baviera]
b. If buyer has paid less than 2 years of
installments: QUICK SUMMARY OF REMEDIES OF
• Grace period of at least 60 days BUYER
• After the lapse of the grace period, REMEDY
buyer is given a notice of cancellation Damages, Rescission, Price
or demand for rescission by notarial Movables through Specific
act, effective 30 days upon receipt Performance.
thereof Return or Offer to Return
(with recovery of price or may
c. During the grace period, the buyer shall become the seller’s bailee)
also have the right: Breach of
Acceptance, for recoupment
• To sell or assign his rights, evidenced Warranty
or with damages
in a notarial instrument Refuse to Accept with
• To update his account Damages
• To pay in advance any installment, or Rescission, Suspension of
the full unpaid balance of the price, Payment, PD 957
without any interest, and to have such (Reimbursement of the total
full payment of the purchase price Immovables
amount paid/ compel the
annotated in the certificate of title developer to complete
covering the property. facilities)
Contract of Sale: Article
Down payments, deposits, or options on the Immovables
1592, CC
contract shall be included in the total number of on
Contract to Sell: Maceda Law
installments made. Installment
(RA 6552)
The seller may go to court for judicial rescission

in lieu of a notarial act of rescission.
Cancellation pertains to extrajudicial

cancellation. Absence of notice does not bar
the filing of an action to cancel the contract.
A decision in an ejectment case can operate as

notice of cancellation as required by RA 6552.
Page 366 of 532

1. Sale of Movables seller is bound to make

good the deficiency [Art.
REMEDY FOR BREACH OF OBLIGATION 1464]
TO PRESERVE
2. Sale of Immovables [Art 1539 – 1543,
If thing is lost: CC]
Through fault of seller /
Without fault of
Through Fortuitous IF AT THE RATE OF A CERTAIN PRICE PER
seller
Event (if seller is liable) UNIT OF MEASURE OR NUMBER
NO BREACH
Obligation is Damages Less (in area or More (in area or
extinguished. quality) than what quality) than what
was agreed upon: was agreed upon:
A thing is lost when it: Proportional reduction Reject the excess
a. Perishes; of price OR
b. Goes out of commerce of man; or OR Accept the whole
c. Disappears in such a way that its existence Rescission, if: and pay at contract
is unknown or it cannot be recovered a. Lack in area is at rate
least 1/10 of what
If thing deteriorates: is stated, or inferior
Without fault of value of thing sold
Through fault of seller exceeds 1/10 of
seller
NO BREACH. Rescission + damages price
Impairment shall OR b. Buyer would not
be borne by Specific performance + have bought the
buyer damages property has he
been aware of the
inferior quality or
REMEDY FOR BREACH OF OBLIGATION
smaller area
TO DELIVER
Note: This rule also applies to judicial sales
Delivery of wrong quantity [Art. 1522, CC]
[Art. 1541, CC].
Goods are
Goods are LESS THAN MORE THAN
what was contracted what was
IF FOR A LUMP SUM
contracted Everything is within Not everything is
boundaries, even if within the
Reject the goods
less or more than boundaries
OR
stated area
Accept and pay:
a. At contract rate if No remedy Proportional
buyer accepts reduction in price
Reject the excess Where both the area OR
knowing that
OR and the boundaries of Rescission
seller won’t
Reject the whole, the immovable are
perform in full
if indivisible declared, the area
b. At fair value if
OR covered within the
goods were used
Accept the whole boundaries of the
before knowing
and pay at immovable prevails
that seller won’t
contract rate over the stated area.
be able to
perform in full [Rudolf Lietz, Inc. v.
CA, G.R. No. 122463
Buyer becomes the owner (2005)]
of the whole mass and the
Page 367 of 532

Prescriptive period: 6 months counted from RULE ON THE TIME

date of delivery. Where by agreement, the seller is bound to
send the goods to the buyer, he is bound to
10. Performance of the send them within the time agreed upon.
• If no time fixed: within a reasonable time.
Contract • The expenses of placing the goods in a
deliverable state shall be borne by the
Note: The obligations of the vendor and seller (unless otherwise stipulated)
vendee are also discussed in detail in sections
C and D of this Sales Reviewer. RULE ON THE MANNER
Where the goods at the time of the sale are in
Delivery of the Thing Sold the possession of a third person: NO
DELIVERY unless such third person
1. In General acknowledges to the buyer that he holds
the goods on the latter’s behalf.
Payment and delivery of the thing sold are
concurrent acts, in consonance with the rule in What Constitutes a Reasonable Time?
reciprocal obligations. [Baviera] When the time of delivery is not fixed in the
contract, time is not of the essence. Delivery
The rule is that neither party incurs in delay if must be made within a reasonable time. [Smith
the other does not comply or is not ready to Bell v. Matti (1922)]
comply in a proper manner with what is
incumbent upon him. General Rule: The reasonable time for
delivery is determined by the circumstances
The Agreement of the parties determines attending the particular transaction.
whether it is for the buyer to take possession of
the goods or for the seller to send them to the When Time is of the Essence
buyer. Time is of the essence of the contract
whenever the intention of the parties is clear
Place, Time and Manner of Delivery that performance of its terms shall be
General Rule: The vendor is not bound to accomplished exactly at the stipulated day. It
deliver the thing sold if the vendee has not paid could also be implied from the nature of the
the price contract itself, or of the subject matter, or of the
circumstances under which the contract is
Exception: When the thing is sold on credit made. [Baviera]
RULE ON THE PLACE Whenever the intention of the parties is clear

Whether it is for the buyer to take possession that performance of its terms shall be:
of the goods or for the seller to send them to • Accomplished exactly at the stipulated day
the buyer depends on the AGREEMENT • Implied from the nature of the contract
between the two parties. itself, the subject matter or the
• In the absence of stipulation: delivery circumstances under which the contract is
should be at the seller’s place of business made
if he has one
• In case of sale of specific goods which are When the Vendor is not Bound to Delive
in another place: the buyer should take Article 1524, CC: The vendor shall not be
delivery from such place. bound to deliver the thing sold, if the vendee
has not paid him the price, or if no period for
Note: Demand or tender of delivery shall be the payment has been fixed in the contract.
made at a reasonable hour.
Page 368 of 532

Article 1536, CC: The vendor is not bound

to deliver the thing sold in case the vendee General Rule: The buyer is not bound to
should lose the right to make use of the accept delivery of a quantity of goods more or
terms as provided in Article 1198. less than that agreed upon or to accept goods
which are of a description different from that
agreed upon.
Article 1198, CC: The debtor shall lose
every right to make use of the period: Exception: There is usage of trade, special
stipulation, or course of dealing to the contrary.
(1) When after the obligation has been
contracted, he becomes insolvent, unless REMEDIES PROVIDED FOR BY LAW:
he gives a guaranty or security for the debt; 1. Where the seller delivers a quantity less
than that agreed upon, the buyer may
(2) When he does not furnish to the creditor reject them. If the buyer accepts or retains
the guaranties or securities which he has that goods delivered, knowing the inability
promised; of the seller to deliver the rest, the buyer is
bound to pay for them at the contract rate.
(3) When by his own acts he has impaired If the buyer has used or disposed of the
said guaranties or securities after their goods before knowing the inability of the
establishment, and when through a seller to deliver the rest, the buyer shall pay
fortuitous event they disappear, unless he not more than the fair value of the goods.
immediately gives new ones equally (Note: “fair value” means the price of the
satisfactory; goods in the open market.)
2. If the quantity delivered is more than that
(4) When the debtor violates any agreed upon, the buyer may reject the
undertaking, in consideration of which the excess, unless the subject matter is
creditor agreed to the period; indivisible, in which case, the buyer may
reject the whole.
(5) When the debtor attempts to abscond. 3. Where the seller delivers the goods mixed
with goods of a different description not
included in the contract, the buyer may
Sales of Goods/ Movables accept the goods which are in accordance
with the contract, and reject the rest, unless
1. Delivery of Wrong Quantity the subject matter is indivisible, in which
case, the buyer may reject the whole.
Article 1522, CC: Where the seller delivers
to the buyer a quantity of goods larger than 2. Delivery by Installments
he contracted to sell, the buyer may accept
the goods included in the contract and Article 1538, CC: In case of loss,
reject the rest. If the buyer accepts the whole deterioration or improvement of the thing
of the goods so delivered, he must pay for before its delivery, the rules in Article 1189
them at the contract rate. xxxx In the shall be observed, the vendor being
preceding two paragraphs, if the subject considered the debtor.
matter is indivisible, the buyer may reject the
whole of the goods.
General Rule: The buyer is not bound to
accept the delivery of goods by installments.
Quantity is always of the essence of a sales
contract and a seller is bound to tender the Exception: Unless it is otherwise stipulated.
amount of goods contracted for, in order to hold Where the contract calls for the delivery of
the buyer liable for performance. [Baviera] goods at stated intervals which are to be
Page 369 of 532

separately paid for, whether prompt payment there shall be no increase or decrease of the
or delivery is of the essence of the contract price, although there be a greater or less
such that a delay or breach of the obligation area or number than that stated in the
would entitle the aggrieved party to treat the contract.
entire contract as broken or to regard each
breach as severable would depend on the
terms of the contract and the circumstances of If the sale of property is for a lump sum, there
the case. [Baviera] shall be no increase or decrease in the price,
whether the actual area delivered turned out to
Severability: is whether the breach is so be greater or less than that stated in the
material as to justify the aggrieved party in contract. [Baviera]
refusing to proceed further with the entire
contract or so immaterial that the breach is Inspection and Acceptance
severable, giving rise merely to a claim for
damages. Note: This is discussed in Section D of this
sales reviewer, on the Obligations of the
Sale of Immovables Vendee.
1. Where Price is at Certain Rate Per Unit 1. Payment of Price

of Measure
LIABILITY FOR INTEREST
WHEN VENDEE HAS THE OPTION TO The vendee is bound to accept delivery and to
DEMAND A PROPORTIONATE REDUCTION pay the price of the thing sold at the time and
OF THE PRICE (OR DEMAND RESCISSION place stipulated in the contract (Art. 1582, CC:
OF CONTRACT) If the time and place should not have been
stipulated, payment must be made at the time
General Rule: If price is fixed at a certain rate and place of delivery of the thing sold).
per unit of measure and the area is delivered is
less than that stated in the contract, or even if General Rule: The vendee shall owe interest
the area is correct but part of the land is not of on the price from the time the thing is
the quality stated in the contract. delivered up to the time of payment if there
is a stipulation requiring interests
Exception: Where the entire land is not of the • If there is no stipulation: from the time of
quality stated in the contract, as in such a case, judicial or extrajudicial demand for
the consent must have been obtained by payment.
mistake or fraud (contract may then be • This applies if the thing delivered produces
voidable). These rules presuppose that the fruits or income, or if the buyer incurs in
actual area was not known to both parties until default
a survey was made after the execution of the
contract. SUSPENSION OF PAYMENT
Art. 1590, CC A vendee may suspend
Note: These rules do not apply where the entire payment when:
land is not of the quality stated in the contract • The vendee is disturbed in the possession
because in such case, the consent must have or ownership of the thing delivered; or
been obtained by mistake or fraud. [Baviera] should he have reasonable grounds to fear
such disturbance by vindicatory action, or
2. Sales for a Lump Sum a foreclosure of mortgage.
• Unless there is a stipulation to the contrary
Article 1542, CC: In the sale of real estate, notwithstanding any such contingency; or
made for a lump sum and not at the rate of a unless the vendor gives security for the
certain sum for a unit of measure or number, return of the price in a proper case. (Note:
Page 370 of 532

Disturbance or threat of disturbance must RA 6552 (MACEDA LAW)

come through a vindicatory action or a Note: This was discussed in Section I,
foreclosure of mortgage, and not through a Subsection 1.a.5 of this Sales Reviewer, on
mere threat or claim of a third person.) Maceda Law.
● Neither can the buyer suspend payment,
on the ground that the vendor is August 26, 1972: The Realty Installment
incapacitated. Buyer Protection Act was approved:
● If the third person claims a servitude on the • It declared a public policy to protect buyers
thing sold, the remedy of the buyer is to of real-estate on installments.
demand rescission of the contract or • This included residential condominium
payment of the proper indemnity. apartments, excluding industrial lots,
commercial buildings and lands sold under
A vendee may not suspend payment when: RA 3844, against onerous and oppressive
• For a mere act of trespass by a third conditions.
person, the buyer could defend himself and
has no right to suspend payment 11. Extinguishment of Sales
Note: There is a mere trespass when the third
Causes [Arts. 1600, 1231, CC]
person claims no right to the thing whatsoever.
Generally, extinguished by the same causes as
Therefore, in order that the buyer may have a
all other obligations [Arts.1600, 1231, CC]
right to suspend payment, it is absolutely
a. Payment/performance
necessary that the cause of disturbance or
b. Prescription
danger be based on a fact arising before the
c. Loss of thing due
sale or if it arose after the sale, the cause is
d. Annulment
imputable to the vendor or his successor-in-
e. Novation
interest. [Baviera]
f. Condonation/remission
g. Confusion/merger
EFFECT OF NON-PAYMENT
h. Compensation
General Rule: The power to rescind
i. Rescission
obligations is implied in reciprocal ones, in
j. Resolutory condition fulfilled
case one of the obligors should not comply with
k. Redemption (Conventional or Legal)
what is incumbent upon him.
● The injured party may choose between
fulfillment and rescission of the obligation, Conventional redemption
with payment of damages in either case. (Pacto de Retro Sale)
● The court shall order the rescission
claimed, unless there is just cause 1. Definition
authorizing the granting of a new period.
Conventional Redemption exists when the
However, in absolute sales of real property, vendor reserves the right to repurchase the
even if there is a stipulation providing for ipso thing sold, with the obligation to:
jure rescission, in case of default in payment, 1. Return price of the sale
the law required the seller to demand the 2. Expenses of the contract
resolution of the contract from the buyer 3. Any other legitimate payments by reason of
judicially or by a notarial act, before such the sale
stipulation could be given effect. Otherwise, the 4. Necessary and useful expenses [Art. 1601,
buyer could still pay the price, even after the CC]
expiration of the period to pay. [Baviera]
Note: Redemption feature does not prevent the
full consummation of the contract of sale.
Page 371 of 532

Available when the seller reserves the right to 3. Subsequent purchaser of property, even if
repurchase the thing sold in the same the right to redeem was not mentioned in
instrument of sale as one of the stipulations of the subsequent contract; except if
the contract [Villarica v. CA, G.R. No. L-19196 registered land, where the right to redeem
(1968)] must be annotated on the title
4. If several heirs, then the right of redemption
2. Period can be exercised against each heir for his
share of the property [Art. 1615, CC]
General Rule: Follow period stipulated in
contract, but should not exceed 10 years. 5. How exercised
Exceptions: 1. By returning the ff. to the buyer:

1. If no period stipulated but the parties • Price of the sale; except if the parties
intended a period, then it shall be 10 years agreed on a redemption price
from the date of the contract. • Expenses of the contract and other
2. If no period stipulated, then it shall be four legitimate payments made by reason of
years from the execution of the contract the sale;
3. But vendor may still exercise the right to • Necessary and useful expenses made
repurchase within thirty days from the time on the thing sold
final judgment was rendered in a civil 2. Complying with any other stipulation
action on the basis that the contract was a agreed upon, if any.
true sale with right to repurchase
The general rule in redemption is that it is not
3. By whom exercised sufficient that a person offering to redeem
manifests his desire to do so. The statement of
1. Vendor, after returning to vendee price of intention must be accompanied by an actual
sale plus expenses of the contract, other and simultaneous tender of payment for the full
legitimate payments made by reason of amount of the repurchase price. [BPI Family
sale, and necessary and useful expenses Savings Bank, Inc. v. Sps. Veloso, G.R. No.
made on the thing sold [Art. 1616, CC] 141974 (2004)]
2. His heirs, assigns or agents
3. Creditor, after he has exhausted the 6. Effect of Redemption
property of the vendor [Art. 1610, CC]
4. Co-owners of an immovable, if they sold 1. The sale is extinguished
their interests to the same person, may 2. The seller shall receive the thing free from
only redeem their respective shares [Art. all charges or mortgages constituted by the
1612, CC] buyer BUT he shall respect leases
• Vendee cannot be compelled to agree executed by the buyer in good faith and in
to a partial redemption [Art. 1613, CC] accordance with local custom.
• If the co-owners sold their interest to 3. As to fruits:
the same person who previously • If parties agreed on a distribution, the fruits
bought the share of a co-owner subject shall be distributed according to the
to a right of redemption, then the latter agreement.
may be compelled to redeem the whole • If parties did not agree on a distribution,
property o If there are growing fruits at the
time of sale and at the time of
4. From whom to redeem redemption:
a. Buyer receives reimbursement
1. Vendee a retro if the buyer paid indemnity at
2. His heirs, assigns or agents the time of the sale
Page 372 of 532

b. Buyer receives no effectively on the

reimbursement or prorating if buyer
the buyer did not pay indemnity
at the time of sale Equitable Mortgage
○ If there were no growing fruits at
the time of sale, but some exist at An equitable mortgage is defined as one
the time of redemption: fruits which, although lacking in some formality, or
prorated (buyer entitled to part form or words, or other requisites demanded by
corresponding to time he a statute, nevertheless reveals the intention of
possessed the land in the last year, the parties to charge real property as security
counted from the anniversary of the for a debt, and contains nothing impossible or
date of sale) contrary to law. [Molina v. CA, G.R. No. 125755
(2003)]
7. Effect of non-redemption
A pactum commissorium is a stipulation
Ownership is consolidated in the buyer BUT enabling the mortgagee to acquire ownership
the consolidation shall not be recorded in the of the mortgaged properties without need of
Registry of property without a judicial order, foreclosure proceedings which is a nullity being
after the vendor has been duly heard. contrary to the provisions of Article 2088 of the
Civil Code. The inclusion of such stipulation in
8. Right to redeem vs. Option to purchase the deed shows the intention to mortgage
Right to Redeem Option to Purchase rather than to sell. [Legaspi v. Sps. Ong, G.R.
Not a separate No. 141311 (2005)]
contract but part of a
main contract of Generally a principal A pactum commissorium is contrary to the
sale, and cannot contract and may be nature of a true pacto de retro sale since
exist unless reserved created independent ownership of the property sold is immediately
at the time of the of another contract transferred to the vendee a retro upon
perfection of the execution of the sale, subject only to the
main contract of sale repurchase of a vendor a retro within the
Must have a stipulated period.
consideration
Does not need its
separate and distinct 1. Presumption that a contract is
separate
from the purchase an equitable mortgage
consideration to be
price to be valid and
valid and effective
effective [Arts. 1324 Art. 1602. The contract shall be presumed to
and 1479, CC] be an equitable mortgage, in any of the
The maximum period following cases:
The period of the
for the exercise of 1. Price unusually inadequate;
option contract may
the right to 2. Possession retained by the seller as lessee
be beyond the 10-
repurchase cannot or otherwise;
year period
exceed 10 years 3. Period of redemption extended (or granted
Requires in addition anew) upon or after the expiration of the
a tender of payment right to repurchase;
of the amount 4. Part of the purchase price retained by the
May be exercised by
required by law, seller;
notice of its exercise
including 5. Payment of taxes on the thing sold borne
to the offeror
consignment thereof by the seller;
if tender of payment 6. Any other case where it may be fairly
cannot be made inferred that the Real intention of the
Page 373 of 532

parties is for the transaction to secure a

debt or other obligation. In case of doubt, a contract purporting to be
a sale with right to repurchase shall be
Note: A contract shall be construed as an construed as an equitable mortgage [Art.
equitable mortgage when any of the 1603, CC]
circumstances in Art. 1602 is present. When in
doubt whether equitable mortgage or sale, 3. Rationale behind provision on
settle in favour or equitable mortgage because equitable mortgage
it involves a lesser transmission of rights.
a. Circumvention of usury law
By itself, no equitable mortgage under the ff. b. Circumvention of prohibition against
instances: pactum commissorium – creditor
1. Mere tolerated possession cannot appropriate the things given by
2. Mere delay in transferring title to the buyer way of pledge or mortgage since
remedy is foreclosure.
The provisions on equitable mortgage of
Art.1602, CC also applies to a contract 4. Remedies of apparent vendor
purporting to be a deed of absolute sale.
a. If the instrument does not reflect the
Remedy: Reformation of the instrument [must true agreement: remedy is reformation
be brought within 10 years] b. If decreed to be an equitable mortgage:
1. If the agreement is construed to be an any money, fruits or other benefit to be
equitable mortgage, any money or other received by the buyer as rent or
benefit received as “rents,” shall be otherwise considered as interest.
considered as “interest” (and subject to c. If decreed as a true sale with right to
usury laws) purchase: seller may redeem within 30
2. The court may decree that the vendor- days from finality of judgment, even if
debtor to pay the outstanding loan to the the period for redemption has expired.
vendee-creditor
3. Where the agreement is upheld as a pacto 5. Period of redemption
de retro sale, the vendor may still exercise
the right within 30 days from the time the No stipulation: 4 years from the date of
judgment becomes final. contract [Art. 1606, CC]
The right of repurchase is not a right granted to When there is agreement: Period not to
the seller by the buyer in a subsequent exceed 10 years [Art. 1606, CC]
instrument, but one reserved by the seller in the
same instrument as the sale contract. Any right General Rule: Period starts to run from the
granted after the execution of the sale date of the execution of the contract
instrument is not a right to repurchase, but
some other right like an option to buy. [Roberts Exception: When the efficacy of the sale is
v. Papio, G.R. No. 166714 (2007)] subject to a suspensive condition, period
should be counted not from the date appearing
2. Requisites for presumption of on the instrument, but from the date when the
an equitable mortgage condition is fulfilled, marking the
consummation of the sale [Tolentino citing
a. That the parties entered into a contract Manresa].
denominated as a contract of sale, and
b. That their intention was to secure an Additional 30 days for Repurchase
existing debt by way of a mortgage. The last paragraph of Art. 1606 giving the
[Molina v. CA, supra] vendor the right to repurchase within 30 days
Page 374 of 532

from the time of the rendition of final judgment seller a retro to file a suit for consignation
applies only where the nature and the with the courts of the redemption price
character of the transaction, whether as a [Catangcatang v. Legayada, G.R. L-26295
pacto de retro or an equitable mortgage, was (1978)].
put in issue before the court [Gonzales v. de 4. If the offer or tender of payment for
Leon, G.R. No. L-14532 (1965)] repurchase is refused, it is not necessary
for the vendor a retro to consign in court or
When an unrecorded pacto de retro sale was make judicial deposit of the repurchase
construed as an equitable mortgage, the price [Rosales v. Reyes, G.R. No. 8162
plaintiff had the right to enforce his lien in a (1913)].
separate proceeding notwithstanding the fact
that he had failed to obtain judgment declaring The seller a retro is given no option to require
him the sole and absolute owner of the land. the buyer a retro to remove the useful
[Heirs of Arches v. Diaz, G.R. No. L-27136 improvements on the land subject of the sale a
(1973)] retro, unlike that granted the owner of a land
under Arts. 546 and 547. Under Art. 1616, the
Where the petition of the buyer in a pacto de seller a retro must pay for useful improvements
retro sale is for a judicial orders pursuant Art. introduced by the buyer a retro; otherwise, the
1607, so that there may be consolidation of latter may retain possession of the land until
ownership since there was failure to redeem reimbursement is made. [Gargollo v. Duero,
during the redemption period, the right of action G.R. No. L-15973 (1961)]
to foreclose or to collect the indebtedness
arises from the court judgment declaring the Legal Redemption [Art. 1619,
contract an equitable mortgage. CC]
6. Exercise of the right to redeem Rationale for the law: Public policy (to minimize
[Art. 1616, CC] co-ownership) and benefit of the redemptioner
The seller can avail himself of the right of 1. Definition

repurchase by returning to the buyer:
1. the price of the sale; 1. Right to be subrogated:
2. the expenses of the contract and any other ● Upon the same terms and conditions
legitimate payments made by reason of the stipulated in the contract,
sale; ● In the place of one who acquires a thing by
3. the necessary and useful expenses made purchase or dation in payment, or by any
on the thing sold [Art.1616, CC]. other transaction whereby ownership is
transmitted by onerous title [Art. 1619, CC]
7. How redemption is exercised 2. Applies to transfers of ownership by
onerous title where subrogation is possible.
1. The vendor de retro must complete the Hence, it cannot apply to barter or to
repurchase before the expiration of the transfer by gratuitous title or hereditary
redemption period [Panganiban v. Cuevas, succession.
G.R. No. 2001 (1907)] 3. Applies to sales with pacto de retro
2. A sincere or genuine tender of payment is [Baviera citing Manresa]
enough. The deposit of the amount of the
repurchase money with the Clerk of Court 2. Manner
was simply an additional security [Legaspi
v. CA, G.R. No. L-45519 (1986)] 1. A formal offer to redeem or
3. When tender of payment cannot be validly 2. Filing of an action in court together with the
made because the buyer cannot be consignation of the redemption price within
located, it becomes imperative for the
Page 375 of 532

the reglementary period [Lee Chuy Realty Judgment debtor,

v. CA, G.R. No. 104114 (1995)] successor–in-
1 year from the date
interest, or creditor
of registration of the
3. Period to redeem with subsequent lien,
certificate of sale
in case of execution
To whom granted Period sale [Sec. 27, Rule
30 days from notice 39, ROC]
● In writing Debtor-mortgagor,
● By the seller successors-in-
● Of the interest,
actual judicial/judgment
execution creditor, any person 1 year from the date
and delivery having a lien on the of the sale
of the deed property, in case of
of sale extrajudicial
foreclosure of
Actual knowledge of mortgage [Sec. 6, Act
the sale is No. 3135]
immaterial, absent Debtor-mortgagor in
Co-owner any showing that case of judicial
[Art 1620, CC] the co-owner has foreclosure of real
90 days from finality
been shown a copy estate mortgage IF
of judgment
Adjoining owner of of the deed of sale the mortgagee is a
Rural Land through a written bank or a banking
[Art 1621, CC] communication. institution. [General
[Doromal v. CA, Banking Law of 2000]
Adjoining owner of G.R. No. L-36083 Agricultural lessee
urban land (1975)] 2 years from the
w/o knowledge of
registration of the
[Art. 1622, CC] sale of landholding
sale
The law did not [Sec. 12, Agrarian
provide for a Land Reform Code]
particular mode of
written notice, thus The notice required in Art. 1623 must be given
any compliance by the seller because the seller is in a better
with “written notice” position to identify who his co-owners are. Said
should suffice, provision is clear. [Francisco v. Boiser, G.R.
including the giving No. 137677 (2000)]
of a copy of the
deed of sale. 4. Instances of legal redemption
[Conejero v. CA,
G.R. No. L-21812 a. Redemption by co-owners [Art. 1621,
(1966)] CC]
Debtor in case a 30 days from the
credit or date the assignee A co-owner of a thing may exercise the right of
incorporeal right in demands payment redemption in case the shares of all the co-
litigation is sold [Art. from debtor owners or any of them are sold to a third person
1634, CC]
Taxpayer in case of Third person refers to all persons who are not
1 year from date of
tax sale [Sec. 215, heirs of the vendor, by will or intestate
forfeiture
NIRC] succession.
Page 376 of 532

The right is available not only to original co- b. Adjacent lands are separated by
owners, but to those who had later acquired the brooks, drains, roads and other
share of the co-owner. apparent servitudes for the benefit of
other estates
But the right of redemption may be exercised
by a co-owner only when part of the community Order of preference if two or more wishes to
property is sold to a stranger. When the portion exercise the right:
is sold to another co-owner, the right does not • Owner with smaller land area
arise because a new participant is not added to • If same land area, then the one who
the co-ownership [Fernandez v. Sps. Tarun, first requested the redemption
G.R. No. 143868 (2002)].
c. Redemption by adjoining land-owners
If the price of the alienation is grossly of urban land (applies only to small
excessive, the redemptioner shall pay only a portions of urban land) [Art. 1621, CC]
reasonable one.
Right of Pre- Right of
Should two or more co-owners desire to emption Redemption
exercise the right, they may also do so in Owner of any
proportion to the share they may respectively adjoining land has a
have in the thing owned in common. right of pre-emption
If the resale has
at a reasonable price
The ff. requisites must concur: been perfected, the
when:
a. Co-ownership of a thing owner of the
a. Urban land is
b. Alienation of shares of co-owners or all adjoining land shall
so small and
of the other co-owners have a right of
so situated
c. Sale must be to a third person or redemption, also at a
that a major
stranger reasonable price
portion of it
d. Sale must be before partition cannot be
e. Right must be exercised within the Priority if 2 or more
used for any
period specified in Article 1623 adjoining owners
practical
f. Buyer must be reimbursed the price of want to redeem:
purpose w/in
the sale owner whose
a reasonable
intended use of the
time;
Rationale: Public Policy, since co-ownership is land appears to be
b. Was bought
a hindrance to the development and best justified
merely for
administration of the property. [Baviera] speculation;
c. Was resold
b. Redemption by adjoining landowners of Arises before sale Arises after sale
rural land [Art. 1621, CC] No rescission There can be
because no sale rescission of the
The ff. requisites must concur: exists yet original sale
a. All lands must be rural lands The action is
b. Lands must be adjacent to each other Action is directed
directed against
c. A piece of rural land is alienated against buyer
prospective seller
d. Area does not exceed one hectare
e. Buyer must already own other rural d. Redemption of Credit
lands
Available when it is sold while in litigation (From
When not applicable the time the complaint is answered)
a. The grantee does not own any rural
land
Page 377 of 532

Not available when the assignment is in favor f. Redemption in Foreclosure and

of: Execution Sales
a. Co-heir/co-owner of right assigned
b. Creditor in payment of his credit Who may redeem
c. Possessor of a tenement or piece of In extra judicial In execution sales
land which is subject to the right foreclosure • Judgment debtor
assigned ● Debtor • Successor in
● Successor in interest
How exercised: reimburse the assignee for interest • Creditor having a
the: ● Judicial or lien on the property
a. Price paid judgment sold by attachment,
b. Judicial expenses incurred creditor of said judgment or
c. Interest on the price from date of debtor mortgage on the
● Junior property
payment
encumbrancer subsequent to the
judgment
e. Under the Public Land Act
Period to redeem
If land is
Coverage
mortgaged in
a. Every conveyance of land acquired under Execution
Extra-judicial favor of a bank:
a free patent or homestead sale:
foreclosure:
b. The ownership of the land must have been within 1 year
transferred to another. If the transaction is within 12
within 1 year after the sale
a mere promise to sell, there is no right yet months
from the date (not available
to redeem after the
of the sale in case of a
c. This refers to conveyances made after the sale
corporate
prohibited 5 years from the issuance of the mortgagor)
patent or grant Amount of redemption
a. Amount of the purchase
Period: b. Interest at 1% per month from the time
a. Within 5 years from the date of conveyance of the sale up to the time of redemption
b. If pacto de retro sale, the period to redeem c. Any assessment or taxes which the
cannot be less than 5 years purchaser may have paid
Who may redeem Note: Every conveyance of land acquired

General Rule: Applicant, widow, or heirs under a free patent or homestead, when
proper, shall be subject to repurchase by the
Exception: land is sold to another member of applicant, his widow or legal heirs within 5
the family of the applicant, or his direct years from the date of conveyance.
descendant or heir
Sale within the 5-year prohibition is void even
if the sale is in favor of the homesteader’s own
From whom: Subsequent purchasers
son or daughter. This right of repurchase by
the homesteader cannot be waived.
The right to redeem can be exercised against
any subsequent purchaser even if the land is g. Under the Agrarian Land Reform Code
registered under the Torrens System because
the fact that it was acquired through a Lessee’s right of pre-emption
homestead or free patent can be seen from the The agricultural lessee shall have the
description of the property in the certificate of preferential right to buy under the same
title. reasonable terms and conditions, in case the
lessor decides to hold the landholding
Page 378 of 532

Conditions TRUST AS DISTINGUISHED FROM OTHER

a. The landholding must be pre-empted CONCEPTS
by the DAR Stipulation pour
Trust
b. When two or more lessees, each shall autrui
have preferential right only to the Involves any
Refers to a specific
extent of the area cultivated by him stipulation in favor
property
of a third person
Period: 180 days from notice in writing
Trust Condition
Lessee’s right of redemption Performance or
In case landholding is sold to 3rd person Performance of
accomplishment is
without the knowledge of the lessee, the latter trust is enforceable
not enforceable
shall have the right to redeem the same at a
reasonable price and consideration. [Sec. 12, Guardianship or
RA 3844] Trust
Executorship
Guardians or
Period: within 180 days from notice in writing Executors do not
have legal title but
Trustees has legal
mere actual
title to the property
B. TRUSTS possession and
limited powers over
the property
Definition
A trust is the legal relationship between one Trust Contract
person having an equitable ownership of Always involves
A legal obligation
property and another person owning the legal ownership,
based on an
title to such property, the equitable ownership embracing a set of
undertaking
of the former entitling him to the performance rights and duties
supported by a
of certain duties and the exercise of certain fiduciary in
consideration, which
powers by the latter. [Estate of Cabacungan v. character, which
obligation may or
Laigo, G.R. No. 175073 (2011)] may be created by a
may not be fiduciary
declaration without
in character.
Characteristics of Trust: consideration
1. It is a relationship
2. The relationship is of fiduciary character
3. The relationship is with respect to property, Trust Debt
not one involving merely personal duties The beneficiary of a A creditor has
4. It involves the existence of equitable duties trust has a beneficial merely a personal
imposed upon the holder of the title to the interest in the trust claim against the
property to deal with it for the benefit of property. debtor.
another There is a fiduciary There is no fiduciary
5. It arises as a result of a manifestation of relationship between relationship
intention to create the relationship a trustee and a between a debtor
beneficiary. and a creditor.
Page 379 of 532

Trust Sale except in cases of

An express trust is gifts in the trust.
not perfected by mere The beneficiary of a
Seller obliges trust may demand
consent, but requires
himself to transfer performance of the
the actual delivery of
ownership and obligation without
the naked or legal title
deliver possession having formally
to the trustee for the The donee must
to the buyer accepted the benefit
relationship of legality comply with the
to arise. of the trust in public
legal requirements
Trustee in an express document, upon
in accepting
trust only takes naked Buyer takes full mere acquiescence
donations.
or legal title and for ownership of the in the formation of the
the benefit of another subject matter for trust and acceptance
person, the his sole benefit. under the second
beneficiary. paragraph of Art.
Constituted merely as 1311.
a preparation,
Entered into for its 1. Governing Rules
arrangement,
own end, the
medium, by which the
acquiring of title of Art. 1442, CC. The principles of the general
trustee is expected to
the subject matter
pursue other juridical law of trusts insofar as they are not in conflict
by the buyer. with this Code, the Code of Commerce, the
acts for the benefit of
the beneficiary. Rules of Court and special laws are hereby
adopted.
Trust Lease
Naked title is 2. Parties [Art. 1440, CC]
transferred to the
trustee; full beneficial Lessor retains a. Trustor – the person who establishes
ownership is for the naked title. the trust
account of the b. Trustee – one in whom the confidence
beneficiary. is reposed as regards property for the
Essence of the benefit of another person
Essence of the c. Beneficiary or cestui que trust –
contract is for the
contract is the person for whose benefit the trust has
trustee to manage the
enjoyment of the been created
rust property as the
possession and use
legal title holder for
of the leased 3. Kinds of Trust
benefit or interest of
property.
the beneficiary.
Benefits enjoyed by Benefits enjoyed by a. Express Trust
the beneficiary are the lessee are only
usually of a for a limited Created by the intention of the trustor or of the
permanent nature. contracted period. parties [Art. 1441, CC]
Trust Donation Elements:

An existing legal There is a transfer 1. Competent trustor or settlor
relationship which of property as well 2. Trustee
involves the as the disposition of 3. Ascertainable trust res / Trust property
separation of legal both legal and 4. Sufficiently certain beneficiaries
and equitable title equitable ownership
Page 380 of 532

Trust is created: 4. Accomplishment of the purpose or its

1. By declaration of the trustor or settlor that becoming impossible or illegal
he holds property in trust, 5. Dissolution by the Court if continuation will
2. By conveyance to the trustee, defeat the purpose of the trust
3. Inter vivos, or 6. Dissolution by the consent of all the
4. By testament. beneficiaries and/or the settlor
7. Merger
Proof Required:
1. No express trusts concerning an b. Implied Trust
immovable or any interest therein may be
proved by parol evidence [Art. 1443, CC]. How established
Trusts over real property are Implied trusts come into being by operation of
unenforceable unless in writing, although law [Art. 1441, CC].
writing is not required for validity, only for
proof. The essential idea involves a certain
2. Where the trust is over personal property, antagonism between the cestui que trust and
an oral trust is sufficient between the the trustee even where the trust has not arisen
parties. out of fraud or an immoral transaction [Reyes]
3. But to bind third persons the trust must be
in a public instrument [Art. 1358(1) and (3), Proof required
CC] Art. 1457. An implied trust may be proved by
oral evidence.
Form of Express Trusts
Art. 1444, CC. No particular words are A trust must be proven by clear, satisfactory
required for the creation of an express trust, it and convincing evidence. It cannot rest on
being sufficient that trust is clearly intended. vague and uncertain evidence or on loose,
equivocal or indefinite declarations [de Leon v.
Want of Trustee Molo-Peckson, G.R. No. L-17809 (1962)]
Art. 1445, CC. No trust shall fail because the
trustee appointed declines the designation, As a rule, the burden of proving the existence
unless the contrary should appear in the of a trust is on the party asserting its existence,
instrument constituting the trust. and such proof must be clear and satisfactorily
show the existence of the trust and its
Acceptance by beneficiary elements. While implied trusts may be proved
Acceptance by beneficiary is necessary [Art. by oral evidence, the evidence must be
1446, CC]. It may be: trustworthy and received by the courts with
1. Express extreme caution, and should not be made to
2. Implied – acceptance by the beneficiary is rest on loose, equivocal or indefinite
not subject to the formal rules of declarations. Trustworthy evidence is required
donations [Cristobal v. Gomez, G.R. No. because oral evidence can easily be
L-27014 (1927)] fabricated. [Morales v. Court of Appeals,
3. Presumed – if the trust imposes no (1997)]
onerous condition upon the beneficiary
Kinds of Implied Trusts
Termination of Express Trusts 1. Resulting Trusts - a trust raised by
1. Revocation or modification by the trustor implication of law and presumed to have
under a reserved power been contemplated by the parties, the
2. Rescission intention as to which is to be found in the
3. Expiration of the period or happening of the nature of their transaction, but not
resolutory condition expressed in the deed or instrument of
Page 381 of 532

conveyance [Salao v. Salao, G.R. No. L- Express and Implied Trust Distinguished
26699 (1976)] Express Trust Implied Trust
Comes into being
Rules on Resulting Trusts by operation of
Created by the
a. There is an implied trust when property law.
intention of the
is sold, and the legal estate is granted trustor or the
Those, without
to one party but the price is paid by parties.
being expressed,
another for the purpose of having the are deductible
beneficial interest of the property. The As to Created by the
from the nature of
former is the trustee, while the latter is Creatio direct and positive
the transaction
n acts of the parties
the beneficiary. However, if the person by operation of
by some writing or
to whom the title is conveyed is a child, law as matters of
deed or will or by
legitimate or illegitimate, of the one equity,
words evidencing
paying the price of the sale, no trust is independently of
an intention to
implied by law, it being disputably the particular
create a trust.
intention of the
presumed that there is a gift in favor of
parties.
the child. [Art. 1448, CC]. An express trust
over an immovable
b. There is also an implied trust when a An implied trust
As to property or any
donation is made to a person but it may be proved
Proof interest therein
by oral evidence
appears that although the legal estate cannot be proved
is transmitted to the donee, he by parol evidence
nevertheless is either to have no In resulting trust:
beneficial interest or only a part Action must be
thereof. [Art. 1449, CC]. made within 10
years from
Action must be
knowledge of
c. When land passes by succession to made within 10
repudiation,
any person and he causes the legal title As to years from
otherwise
to be put in the name of another, a trust Prescri knowledge of the
prescribed.
is established by implication of law for ption repudiation,
otherwise
the benefit of the true owner. [Art. 1451, In constructive
prescribed.
CC]. trust: It must be
made within 10
d. If two or more persons agree to years from date
purchase property and by common of registration.
In constructive
consent the legal title is taken in the An express
trusts, even if
name of one of them for the benefit of repudiation made
there is no
all, a trust is created by force of law in known to the
repudiation,
favor of the others in proportion to the beneficiary is
laches may bar
interest of each. [Art. 1452, CC]. necessary in order
As to an action to
that laches or
Laches enforce an
acquisitive
e. When property is conveyed to a person prescription may
implied trust
in reliance upon his declared intention bar an action to
to hold it for, or transfer it to another or Exception: If
enforce an express
the grantor, there is an implied trust in there is
trust.
concealment.
favor of the person whose benefit is
contemplated. [Art. 1453, CC].
Page 382 of 532

Trustee can sue or collaterally, by the State which is not

and be sued alone bound by any prescriptive period
As to Trustee cannot provided by the Statute of Limitation.
[PAL, Inc. v. Heald
Suabilit sue and be sued
Lumber Co., G.R. [Peña, citing Martinez v. CA, G.R. No.
y alone.
No. L-11497 L-31271 (1974)]
(1957)]
2. Constructive Trusts - a trust not created C. AGENCY

by any words, either expressly or impliedly
evincing a direct intension to create a trust,
but by the construction of equity in order
to satisfy the demands of justice [Salao v. 1. Nature and form
Salao, supra]
By the contract of agency, a person binds
Rules on Constructive Trusts himself to render some service or to do
a. If the price of a sale of property is something in representation or on behalf of
loaned or paid by one person for the another, with the consent or authority of the
benefit of another and the conveyance latter [Art. 1868, CC].
is made to the lender or payor to secure
the payment of the debt, a trust arises Using this definition, there are two parties in a
by operation of law in favor of the contract of agency. The agent is the one who
person to whom the money is loaned or binds himself to represent another; while the
for whom it is paid. The latter may principal is the one who is represented by the
redeem the property and compel a agent.
conveyance thereof to him. [Art. 1450,
CC]. A contract of agency has at least four
essential elements:
b. If an absolute conveyance of property 1. There is consent, express or implied of the
is made in order to secure the parties to establish the relationship;
performance of an obligation of the 2. The object is the execution of a juridical act
grantor toward the grantee, a trust by in relation to a third person;
virtue of law is established. If the 3. The agents acts as a representative and
fulfillment of the obligation is offered by not for himself, and
the grantor when it becomes due, he 4. The agent acts within the scope of his
may demand the reconveyance of the authority [Rallos v. Felix Go Chan, G.R. No.
property to him. [Art. 1454, CC]. L-24332 (1978)].
c. When any trustee, guardian or other It must be noted, however, that agency is not
person holding a fiduciary relationship always contractual. As will be discussed,
uses trust funds for the purchase of even if some of these elements are missing,
property and causes the conveyance to agency may still be created by operation of
be made to him or to a third person, a law, such as Articles 1930 and 1931.
trust is established by operation of law
in favor of the person to whom the General rule as to form
funds belong. [Art. 1455, CC]. Agency may be written or oral, unless the law
requires a specific form [Art. 1869, CC].
d. If property is acquired through mistake
or fraud, the person obtaining it is, by Exceptions as to form
force of law, considered a trustee of an 1. In an agency to sell a piece of land or any
implied trust by prescription, the title interest therein, the authority of the agent
thereto may be attacked, either directly
Page 383 of 532

shall be in writing. Otherwise, the sale

shall be void [Art. 1874, CC]. Distinguishing Agency from
2. A corporation may act only through its Independent Contract
board of directors or, when authorized [De Leon (2010), 349-352]
either by its bylaws or by its board Agency Independent
resolution, through its officers or agents in Contract
the normal course of business [San Juan Agent may be Independent
Structural Steel v. CA, G.R. No. 129549 controlled and contractor is
(1998)]. directed by the independent from
principal the principal’s
Agency distinguished from other contracts control and direction
Distinguishing Agency from Loan Generally, principal Generally, employer
[De Leon (2010), 345-346] is liable for the is not liable for the
Agency Loan agent’s acts independent
Principal gives funds Lender gives funds contractor’s acts
to agent to advance to borrower for
principal’s own borrower’s own Distinguishing Agency from Partnership
business purposes [De Leon (2010), 352-355; Art. 1767, CC]
Does not carry with it Carries with it the Agency Partnership
the obligation to corresponding Agent acts in Each partner is an
return the money obligation to return representation of the agent of the
the money principal, not vice partnership and his
versa co-partners (i.e.
Distinguishing Agency from Lease of contract of mutual
Service agency)
[De Leon (2010), 347-349] Unless acting Acting in
Agency Lease of Service outside the scope of representation of the
Based on Based on authority, agent does partnership, a
representation employment not incur personal partner binds
Agents generally Lessor (employee) liability himself, the
exercises discretion only exercises partnership, and his
ministerial acts co-partners [see Art.
Parties involved Parties involved are 1822]
include agent, lessee (employer) Agent is subject to Partners do not have
principal, and third and lessor the control of the the right to control
person (employee) principal co-partners
Distinguishing Agency from Brokerage

[Hahn v. CA, G.R. No. 113074, Jan. 22,
1997]
Agency Brokerage
“An agent receives a “[B]roker earns his
commission upon pay merely by
the successful bringing the buyer
conclusion of a sale.” and the seller
together, even if no
sale is eventually
made.”
Page 384 of 532

Distinguishing Agency from Sale 2. Implied from

[Art. 1458, CC; Quiroga v. Parsons, G.R. a. The acts of the principal,
No. L-11491, Aug. 23, 1918] b. His silence or lack of action, or
Agency to sell Sale c. His failure to repudiate the agency,
Principal does not Seller transfers knowing that another person is acting
transfer ownership of ownership of the on his behalf without authority [Art.
the goods to agent. goods 1869, CC].
Agent does not pay Buyer pays the price
the price of the of a thing. Acceptance by the agent may also be
goods to principal, express or implied.
but delivers the price 1. Express: oral or written
he obtains from 2. Implied from
selling them to third a. His acts which carry out the agency, or
persons b. His silence or inaction according to
Agent must return No obligation to the circumstances [Art. 1870, CC]
the goods if the return the goods if
goods remain unsold the buyer is unable Between persons who are present, the
to sell it to third acceptance of the agency may also be
persons implied if the principal delivers his power of
attorney to the agent and the latter receives it
Distinguishing Agency from Trust without any objection [Art. 1871, CC].
[De Leon (2010), 368-369; Art. 1440, CC]
Agency Trust Between persons who are absent, the
Agent acts in Title passes to the acceptance of the agency cannot be implied
from the silence of the agent, except:
representation of the trustee acting in his
a. When the principal transmits his power
principal own name
of attorney to the agent, who receives
May be revoked any Terminated upon
it without any objection;
time [see fulfillment of purpose
b. When the principal entrusts to him by
Extinguishment of of trust
letter or telegram a power of attorney
Agency]
with respect to the business in which
he is habitually engaged as an agent,
2. Kinds and he did not reply to the letter or
telegram [Art. 1872, CC].
A contract of agency may be classified:
1. As to manner of creation: express and Implied agency v. Agency by estoppel
implied [Arts. 1869-1873, CC] Distinguishing implied agency from
2. As to scope of business: general and agency by estoppel
special [Art. 1876, CC] [De Leon (2010), 386-388]
3. As to authority conferred: couched in Implied agency Agency by
general terms and couched in specific [Arts. 1881-1882] estoppel [Art.
terms [Art. 1877-1880, CC] 1911]
4. As to consideration: gratuitous or onerous Actual or real No actual agency,
[Art. 1875, CC] agency. only the presence of
an apparent
1. AS TO MANNER OF CREATION: authority
EXPRESS AND IMPLIED Only the principal is Liability depends
liable to third whether estoppel is
An agency may be express or implied [Art. persons. caused by the
1869, CC]. principal or the
1. Express: oral or written agent.
Page 385 of 532

A third party’s A third party’s 2. Couched in specific terms: A special

reliance in the reliance in the power of attorney is necessary in acts of
representation is not representation is strict dominion [De Leon (2010), 414]. The
necessary, since necessary to invoke circumstances enumerated in Art. 1878
there is an actual agency by estoppel. pertain to this, namely:
agency. a. To make such payments as are not
usually considered as acts of
2. AS TO SCOPE OF BUSINESS: administration;
GENERAL AND SPECIAL b. To effect novations which put an
end to obligations already in
An agency is either general or special [Art. existence at the time the agency
1876, CC]: was constituted;
1. General: comprises of all the c. To compromise, to submit
business of the principal questions to arbitration, to
2. Special: Comprises one or more renounce the right to appeal from a
specific transactions judgment, to waive objections to
the venue of an action or to
A general agent is “one authorized to do all abandon a prescription already
acts pertaining to a business of a certain kind acquired;
or at a particular place, or all acts pertaining to d. To waive any obligation
a business of a particular class or series, while gratuitously;
a special agent is “one authorized to do some e. To enter into any contract by which
particular act or to act upon some particular the ownership of an immovable is
occasion. He acts usually in accordance with transmitted or acquired either
specific instructions or under limitations gratuitously or for a valuable
necessarily implied from the nature of the act consideration;
to be done.” [Siasat v. IAC, G.R. No. L-67889 f. To make gifts, except customary
(1985), citing Padilla (1969)] ones for charity or those made to
employees in the business
3. AS TO AUTHORITY CONFERRED: managed by the agent;
COUCHED IN GENERAL TERMS g. To loan or borrow money, unless
AND COUCHED IN SPECIFIC the latter act be urgent and
TERMS indispensable for the preservation
of the things which are under
An agency may also be couched in general administration;
terms or specific terms [Art. 1877, CC]: h. To lease any real property to
1. Couched in general terms: comprises another person for more than one
only acts of administration, even if: year;
a. The principal should state that he i. To bind the principal to render
withholds no power or that the agent some service without
may execute such acts as he may compensation;
consider appropriate, or j. To bind the principal in a contract
b. Or even though the agency should of partnership;
authorize a general and unlimited k. To obligate the principal as a
management [Art. 1877, CC]. guarantor or surety;
l. To create or convey real rights over
The term “acts of administration” are “those immovable property;
which do not imply the authority to alienate m. To accept or repudiate an
for the exercise of which an express power inheritance;
is necessary” [De Leon (2010), 408-409]. n. To ratify or recognize obligations
contracted before the agency;
Page 386 of 532

o. Any other act of strict dominion. accepted the stipulation in his favor [Art.
1930, CC]
Note that the special power to sell excludes the 4. Anything done by the agent, without
power to mortgage; and a special power to knowledge of the death of the principal or
mortgage does not include the power to sell of any other cause which extinguishes the
[Art. 1879, CC]. Note further that the power to agency, is valid and shall be fully effective
compromise does not authorize submission to with respect to third persons who may have
arbitration [Art. 1880, CC]. contracted with him in good faith. [Art.
1931, CC]
4. OTHER KINDS OF AGENCY
OBLIGATIONS OF THE AGENT
Agency by estoppel
In an agency by estoppel, there is no agency a. To act within the scope of
at all, but the one assuming to act as agent has authority
apparent authority, to represent another,
although not real [Yun Kwan Byung v. One of the primary obligations of an agent is to
PAGCOR, G.R. No. 163553, Dec. 11, 2009]. act within the scope of his authority [Art.
1881, CC]. This includes acting according to
To establish agency by estoppel, the following the instructions of the principal; and in
elements must be shown: default thereof, to the diligence of a good father
1. The principal manifested a of a family [Art. 1887, CC].
representation of the agent’s authority or
knowingly allowed the agent to assume In the following cases, the acts performed by
such authority; the agent shall be deemed within the scope
2. The third person, in good faith, relied of his authority:
upon such representation; and 1. Acts that may be conducive to the
3. Relying upon such representation, such accomplishment of the purpose of the
third person has changed his position to agency [Art. 1881, CC];
his detriment [Litonjua v. Eternit 2. Acts performed in a manner more
Corporation, G.R. No. 144805, June 8, advantageous to the principal than that
2006]. specified by him [Art. 1882, CC];
3. So far as third persons are concerned, acts
Agency by operation of law within the terms of the written power of
While agency is generally contractual, the Civil attorney, even if the agent has in fact
Code admits several exceptions. exceeded the limits of his authority
1. The agent must finish the business according to an understanding between the
already begun on the death of the principal and the agent [Art. 1900, CC]
principal, should delay entail any danger
[Art. 1884, par. 2, CC] b. To carry out the agency
2. The agent, even if he should withdraw
from the agency for a valid reason, must Another primary obligation of an agent is to
continue to act until the principal has had carry out the agency [Art. 1884, CC]. Such
reasonable opportunity to take the obligation entails that the agent shall
necessary steps to meet the situation. [Art. 1. Be liable for the damages caused to
1929, CC] the principal through his non-
3. The agency shall remain in full force and performance [Art. 1884, CC];
effect even after the death of the principal, 2. Finish the business already begun on
if it has been constituted in the common the death of the principal, should delay
interest of the latter and of the agent, or in entail danger [Art. 1884, CC];
the interest of a third person who has 3. Even if the agent withdraws, continue
to act as an agent until the principal
Page 387 of 532

has had reasonable opportunity to take according to whether the agency was or was
the necessary steps to meet the not for compensation [Art. 1909, CC].
situation [Art. 1929, CC].
LIABILITY FOR ACTS OF SUBSTITUTES
The obligation to carry out the agency also
includes the obligation to not carry out the Appointment of a substitute
agency if its execution would manifestly result General rule: An agent may appoint a
in loss or damage to the principal [Art. 1888, substitute.
CC].
Exemption: Principal prohibits the agent from
c. To prefer the interest of the doing so. In this case, all of the substitute’s acts
principal over his own shall be void [Art. 1892, CC].
This obligation is manifested in two ways: Liability of the agent for his substitutes
1. An agent shall be liable for damages if, General rule: The agent shall not be
there being a conflict between his interests responsible for the acts of the substitute.
and those of the principal, he should prefer Exemptions: An agent is responsible for the
his own [Art. 1889, CC]; acts of the substitute in the following cases:
2. An agent, who has been authorized to lend 1. When the agent was not given the
money, may not borrow it without the power to appoint one;
consent of the principal [Art. 1890, CC]. 2. When the agent was given such power,
but without designating the person,
d. To render account and to and the person appointed was
deliver notoriously incompetent or
insolvent [Art. 1892, CC].
An agent must render an account of his
transactions and deliver to the principal In both of these cases, the principal may
whatever he may have received by virtue of the bring an action against the substitute with
agency, even though it may not be owing to the respect to the obligations the substitute has
principal [Art. 1891, CC]. contracted under the said substitution [Art.
1893, CC].
A stipulation exempting the agent from the
obligation to render an account shall be void Solidary Liability
[Art. 1891, CC]. Just like ordinary contracts, solidary liability is
not presumed, even if two or more agents are
e. To pay interest appointed simultaneously. Solidary liability
among such agents must be expressly
The agent owes interest on stipulated [Art. 1894, CC].
1. The sums he has applied to his own use
from the day on which he did so; and
2. Those which he still owes after the D. COMPROMISE
extinguishment of the agency [Art. 1896,
CC].
f. To be liable for fraud and 1. Definition

negligence
A compromise is a contract whereby the
The agent is also liable for fraud and parties, by making reciprocal concessions,
negligence. In this case, negligence shall be avoid a litigation or put an end to one already
judged with more or less rigor by the courts, commenced. [Art. 2028, CC]
Page 388 of 532

As a contract, a valid compromise agreement necessary to alienate their property. [Art. 2033,
must possess the following requisites: CC].
1. The consent of the parties to the
compromise, 4. Effects
2. An object certain that is the subject matter
of the compromise, and a. Suspension of Pending Litigation
3. The cause of the obligation that is Every civil action or proceeding shall be
established. [Magbanua v. Uy, G.R. No. suspended:
161003 (2005)] 1. If willingness to discuss a possible
compromise is expressed by one or both
The Civil Code provides for additional parties; or
requisites in special cases: 2. If it appears that one of the parties, before
1. A special power of attorney for a the commencement of the action or
compromise agreement to be entered into proceeding, offered to discuss a possible
by an agent on behalf of the principal [Art. compromise but the other party refused
1878(3), CC] the offer.
Note: A special power to compromise does The duration and terms of the suspension of
not authorize submission to arbitration. the civil action or proceeding and similar
[Art. 1880, CC] matters shall be governed by such provisions
of the rules of court as the Supreme Court shall
2. The consent of all the partners in a promulgate. Said rules of court shall likewise
partnership, except when authorized by the provide for the appointment and duties of
other partners or unless they have amicable compounders. [Art. 2030, CC]
abandoned the business. [Art. 1818, CC]
b. Res Judicata
2. Kinds of Compromise A compromise has upon the parties the effect
and authority of res judicata; but there shall be
a. Judicial – puts an end to a pending litigation no execution except in compliance with a
b. Extrajudicial – to avoid litigation [Sps.
judicial compromise. [Art. 2037, CC]
Abinujar and Lana v. Court of Appeals, G.R.
No. 104133 (1995)]
5. Role of the Court
3. Coverage
Persuade Litigants to Compromise
A compromise comprises only those objects The court shall endeavor to persuade the
which are: litigants in a civil case to agree upon some fair
1. definitely stated therein, or compromise [Art. 2029, CC]
2. which by necessary implication from its
terms should be deemed to have been Mitigate Damages
included in the same. The courts may mitigate the damages to be
paid by the losing party who has shown a
A general renunciation of rights is understood sincere desire for a compromise [Art. 2031,
to refer only to those that are connected with CC]
the dispute which was the subject of the
compromise [Art. 2036, CC] Approve Compromise in Special Cases
The court's approval is necessary in
Limitation on Juridical Persons compromises entered into by guardians,
Juridical persons may compromise only in the parents, absentee's representatives, and
form and with the requisites which may be administrators or executors of decedent's
estates. [Art. 2032, CC]
Page 389 of 532

intrusted to them, unless the consent of

6. Effect on Criminal Action the principal has been given;
3. Executors and administrators, the
There may be a compromise upon the civil property of the estate under
liability arising from an offense; but such administration;
compromise shall not extinguish the public 4. Public officers and employees, the
action for the imposition of the legal penalty. property of the State or of any
[Art. 2034, CC] subdivision thereof, or of any
government-owned or controlled
Trigger(s): A person has committed an corporation, or institution, the
offense; The offender party and the offender is administration of which has been
willing to seek compromise on the civil liability. intrusted to them; this provision shall
Effect: Compromise may extinguish or novate apply to judges and government
the civil liability but shall not affect criminal experts who, in any manner
liability whatsoever, take part in the sale;
5. Justices, judges, prosecuting
attorneys, clerks of superior and
7. Void Compromise inferior courts, and other officers and
employees connected with the
No compromise upon the following administration of justice, the property
questions shall be valid: and rights in litigation or levied upon an
(1) The civil status of persons; execution before the court within
(2) The validity of a marriage or a legal whose jurisdiction or territory they
separation; exercise their respective functions; this
(3) Any ground for legal separation; prohibition includes the act of acquiring
(4) Future support; by assignment and shall apply to
(5) The jurisdiction of courts; lawyers, with respect to the property
(6) Future legitime. and rights which may be the object of
any litigation in which they may take
The prohibitions in the two preceding part by virtue of their profession;
articles (see below) are applicable to 6. Any others specially disqualified by
sales in legal redemption, compromises law. [Art. 1492, CC]
and renunciations. [Art. 2035, CC]
Civil Status
The husband and the wife cannot sell General Rule: Parties cannot compromise on
property to each other, except: the civil status of persons
1. When a separation of property was Exception: The law does not prohibit a simple
agreed upon in the marriage and full recognition of the status of another, not
settlements; or amounting to compromise.
2. When there has been a judicial
separation of property under article A possible objection to the promise of the
191. [Art. 1490, CC] defendants to give the plaintiff his share in the
The following persons cannot acquire by estate as an acknowledged natural child is that
purchase, even at a public or judicial such agreement may run counter to article
auction, either in person or through the 1814, (old) Civil Code [Now Art. 2035, NCC].
mediation of another: However, it does not appear from the complaint
1. The guardian, the property of the that the defendants ever impugned or denied
person or persons who may be under the plaintiff's status as an acknowledged
his guardianship; natural child; on the contrary, according to the
2. Agents, the property whose complaint, the defendants admitted such status
administration or sale may have been by promising to give the plaintiff his lawful
Page 390 of 532

share in the estate of the father. There having General Rule: Mistake, fraud, violence,
been, in accordance with the allegations in the intimidation, undue influence or falsity of
complaint, no controversy over the condition of documents are grounds to annul the
the plaintiff as acknowledged natural child, the compromise agreement.
agreement between the plaintiff and Exception: Mistake of fact cannot be set up if
defendants alleged in par. 7 of the complaint, if the other party, by virtue of the compromise
shown at the trial, is not a compromise at all, has already withdrawn from the litigation
and is not frowned upon by the legislator in
article 1814 of the Civil Code. [Lajom v. Viola, 9. Annulment/ Rescission
G.R. No. L-47475 (1942)]
Newly-discovered Documents
Validity of Marriage or Legal Separation and When the parties compromise generally on
any of its Grounds all differences which they might have with
General Rule: Parties cannot compromise on each other, the discovery of documents
the validity of marriage or legal separation, the referring to one or more but not to all of the
validity of which is governed by the provisions questions settled shall not itself be a cause
of the Family Code. for annulment or rescission of the
compromise, unless said documents have
Future Support been concealed by one of the parties.
General Rule: The law prohibits a compromise
on future support. But the compromise may be annulled or
rescinded if it refers only to one thing to
Jurisdiction of the Courts which one of the parties has no right, as
General Rule: Jurisdiction is conferred by law shown by the newly-discovered documents.
and cannot be compromised by the parties. [Art. 2039, CC]
Future Legitime Triggers:
General Rule: The law prohibits a compromise 1. Parties have compromised generally in all
on future legitimes. differences they have.
2. There is a subsequent discovery of
Sale of Property Between Married Spouses documents referring to one or more but not
General Rule: Spouses cannot by to all of the questions settled.
compromise evade the prohibition on the sale
of property to one another General Rule: Discovery shall not itself be a
Exception(s): When a separation of property cause for annulment of the compromise
has been agreed upon in the marriage Exception: Discovery shall be a cause for
settlements; When there is legal separation annulment if:
● The said documents were concealed
8. Voidable Compromise by one party;
● The compromise refers only to one
A compromise in which there is mistake, thing to which one of the parties has no
fraud, violence, intimidation, undue right, as shown by the newly-
influence, or falsity of documents, is subject discovered documents.
to the provisions of article 1330 of this Code.
However, one of parties cannot set up a If after a litigation has been decided by a final
mistake of fact as against the other if the judgment, a compromise should be agreed
latter, by virtue of the compromise, has upon, either or both parties being unaware of
withdrawn from a litigation already the existence of the final judgment, the
commenced. [Art. 2038, CC] compromise may be rescinded.
Page 391 of 532

Ignorance of a judgment which may be revoked

or set aside is not a valid ground for attacking E. LOAN
a compromise. [Art. 2040, CC]
Triggers:
1. The parties to the compromise had a case 1. Loan
pending litigation
2. Final judgement has been rendered on the Art. 1933, CC. By the contract of loan, one
case of the parties delivers to another, either
3. Parties are unaware of the existence of something not consumable so the latter may
final judgement use the same for a certain time and return it,
4. Parties have entered a compromise in which case the contract is called a
agreement commodatum, or money or other
consumable thing, upon the condition that
General Rule: The compromise agreement the same amount of the same kind and
may be rescinded. quality shall be paid, in which case the
Exception: Ignorance of a judgment which contract is simply called a loan or mutuum.
may be revoked or set aside is not a valid
ground for attacking a compromise. “This Commodatum is essentially gratuitous.
refers to the instance when the court’s decision
is still appealable or otherwise subject to Simple loan may be gratuitous or with a
modification. Ignorance of the decision is not a stipulation to pay interest.
ground to rescind a compromise agreement,
because the parties are still unsure of the final In commodatum the bailor retains the
outcome of the case at this time”. [Magbanua ownership of the thing loaned while in simple
v. Uy, G.R. No. 161003 (2005)] loan, ownership passes to the borrower.
Contract of Loan vs. Contract to Loan

10. In Case of Breach
Contract of Loan Contract to Loan
Real Contract: Consensual
If one of the parties fails or refuses to abide
perfected, not by mere Contract:
by the compromise, the other party may
consent, but by perfected by mere
either enforce the compromise or regard it as
delivery of the object consent.
rescinded and insist upon his original
of the contract.
demand. [Art. 2041, CC]
An accepted
promise to deliver
Trigger: One of the parties fails or refuses to
something by way
abide by the compromise agreement
of commodatum or
simple loan is
Effect: The innocent party may either:
binding upon the
● Demand specific performance of the
parties [Art. 1934,
compromise agreement.
CC]
● Rescind the compromise agreement
and insist upon the original demand.
Two Types of Contracts of Loan
The innocent party need not seek a judicial 1. Commodatum – a contract where one
declaration of rescission, for he may ‘regard’ party delivers to another something not
the compromise agreement already ‘rescinded’ consumable so that the latter may use the
[Sonley v. Anchor Savings Bank/ Equicom same for a certain time and return it. [Art.
Savings Bank, G.R. No. 205623 (2016)] 1933, CC]
2. Mutuum (Simple Loan) – a contract
where one party delivers to another, money
Page 392 of 532

or other consumable thing, upon the ii. As to Object

condition that the same amount of the Commodatum Mutuum
same kind and quality shall be paid. [Art. GR: Involves non- GR: Involves money
1933, CC] consumable movable or other consumable
or immovable movable property
Note: A contract of commodatum is a property
gratuitous real contract, and is purely personal Consumable -
in nature. It does not require compensation for EX: Consumable cannot be used in a
its use, and is perfected upon delivery by the goods may be the manner appropriate to
bailor. However it demands that the same subject of their nature without
exact thing be returned, and that generally the commodatum if the their being consumed.
purpose of the [Art. 418, CC
use of the thing is only limited to the bailor, with
contract is NOT
exceptions in Art. 1939 (2). A contract of loan
consumption of the
is a real contract, perfected upon delivery of a object [Art. 1936, CC]
loan of money or any fungible thing, with the (e.g., stamps for an
borrower acquiring the ownership of the exhibition)
money/fungible thing with the corresponding
obligation to pay the creditor an equal amount iii. As to Ownership of the Thing
of the same kind and quality (Art. 1933, cf. Loaned
Art.1953, CC). Commodatum Mutuum
Retained by lender Transferred to the
Commodatum v. Mutuum [Art.1933, CC] borrower
1. Nature iv. As to Consideration

Commodatum Mutuum Commodatum Mutuum
Not purely Essentially May be gratuitous or
Purely personal in
personal in gratuitous onerous, i.e. with
character [Art. 1939, CC]
character [Art.1933, CC] stipulated interest
Both are reciprocal obligations
v. As to Obligations of the Borrower
Note: As a purely personal obligation, Commodatum Mutuum
consequently: Borrower must return the
a. The death of either the bailor or the bailee Borrower
same thing loaned [Art. 1933,
extinguishes the contract need only pay
CC]
an equal
b. The bailee can neither lend nor lease the
amount of the
object of the contract to a third person. GR: Bailor CANNOT demand
same kind
However, the members of the bailee’s the return of the thing until
and quality
household may make use of the thing after the expiration of the
[Art. 1953,
loaned unless there is a stipulation to the period stipulated or the
CC]
contrary, or unless the nature of the thing accomplishment of the use for
forbids such use [Art. 1939, CC] which the contract was
GR: Lender
constituted [Art.1946, CC]
may NOT
i. Purpose demand the
Commodatum Mutuum EX: Bailor may demand the
return of the
return of the thing loaned
Loan for permissive or thing loaned
Loan for before the expiration of the
temporary use nor payment
consumption term:
[Art.1935, CC] before the
1. In case of urgent need
lapse of the
[Art. 1946, CC]
term agreed
2. If the commodatum is a
upon
precarium [Art. 1947, CC]
Page 393 of 532

3. If the bailee commits any General rule: The bailee acquires permissive
of the acts of ingratitude in use of the thing loaned only for himself. He may
Art. 765 [Art. 1948] not lend nor lease the thing loaned to him to a
third person.
vi. As to Liability for Loss
Commodatum Mutuum Exception: The members of the bailee’s
Borrower suffers household may make use of the thing loaned
the loss even if
Bailor suffers the loss of caused exclusively Exceptions to the exception:
the subject matter since by a fortuitous 1. If there is a stipulation to the contrary, or
he is the owner [Arts. event and he is not, 2. The nature of the thing forbids such use.
1942 and 1174, CC] therefore, [Art. 1939(2), CC]
discharged from
his duty to pay
Rules as to the use of fruits of the thing
loaned
2. Commodatum General rule: The bailee acquires the
permissive use of the thing loaned but NOT its
Commodatum – an essentially gratuitous fruits [Art. 1935, CC]
contract where one party (bailor) delivers to Exception: Parties stipulate otherwise; such
another (bailee) something not consumable so stipulation is considered valid [Art. 1940, CC]
that the latter may use the same for a certain
time and return it. [Art. 1933] Obligations of the Bailee
KINDS OF COMMODATUM (TUNR-PBS)
a. Ordinary commodatum – the use of the 1. Take care of the thing loaned with the
thing by the bailee is for a certain period of proper diligence of a good father of a
time [Art. 1933] family. [Art. 1163, CC]
b. Precarium – the bailor may demand the 2. Use the thing loaned only for the purpose
thing loaned at will; if any one of the for which it was loaned and not for any
following is present other purpose. [Art. 1935, 1939(2), 1942
1. The duration and purpose of the [1], CC]
contract is not stipulated, or 3. Not to lend the thing to a third person who
2. The use of the thing is merely tolerated is not a member of his household. [Art.
by the owner [Art. 1947] 1942 (4), CC]
4. Return the thing upon the expiration of the
Parties period stipulated or after the
accomplishment of the use for which it has
1. Bailor: creditor been constituted. [Art. 1944, 1946, CC]
2. Bailee: debtor
Exception: Bailee has right of retention for
Who may be a bailor in commodatum? damages when the bailor who, knowing the
Anyone. The bailor in commodatum need not flaws of the thing loaned, does not advise
be the owner of the thing loaned [Art. 1938], but the bailee of the same. [Arts. 1946, 1944,
as against the bailee, the bailor retains CC]
ownership of the thing loaned.
5. Pay for the ordinary expenses for the use
Use by the Bailee and preservation of the thing loaned. [Art.
1941, CC]
Rules as to who may make use of the property
loaned 6. Bear equally (with the bailor) the
extraordinary expenses arising on the
Page 394 of 532

occasion of actual use of the thing by the morally bound to give support the
bailee even though bailee acted without bailor.
fault. [Art. 1949, CC]
2. Refund the extraordinary expenses during
Exception: Contrary stipulation the contract for the preservation of the
thing loaned. [Art. 1949, CC]
7. Solidarily liable when there are two or more
bailees to whom a thing is loaned in the Provided that: Bailee brings the same to
same contract. [Art. 1945, CC] the knowledge of the bailor before incurring
them, except when they are so urgent that
Note: If, for the purpose of making use of the reply cannot be awaited without
the thing loaned, the bailee incurs ordinary danger.
or extraordinary expenses which are
neither for the use nor the preservation of 3. Bear equally (with the bailee) the
the thing, he is not entitled to extraordinary expenses arising on the
reimbursement. [Art. 1950, CC] occasion of actual use of the thing by the
bailee. [Art. 1949, CC]
Obligations of the Bailor
Exception: Contrary stipulation
(DR-BP)
1. Demand the return of the thing only upon 4. Pay damages to the bailee for hidden flaws
the expiration of the term or after the known to the bailor. [Art. 1951, CC]
accomplishment of the use [Art. 1946, CC]
Note: Bailor has no right of abandonment;
Exceptions: he cannot exempt himself from payment of
a. When bailor has urgent need of the expenses or damages to the bailee by
thing, he may demand its return abandoning the thing to the latter. [Art.
(extinguish commodatum) or its 1952, CC]
temporary use (suspend
commodatum) [Art. 1946, CC] Liability for Deterioration
b. Precarium [Art. 1947, CC] or a
contractual relation where the bailor General rule: The bailee is NOT liable for the
may demand the property loaned at will deterioration of the thing loaned when the
c. If bailee commits any acts of deterioration of the thing is due only to the use
ingratitude in Art. 765: [Art. 1948, CC] thereof and without his fault. [Art. 1943, CC]
a) Bailee committed some offense
against the person, honor or Exception: The bailee is liable only when the
property of the bailor, or of his wife deterioration of the thing is due to his fault. [Art.
or children under his parental 1943, CC]
authority;
b) Bailee imputes to bailor any Liability for Loss
criminal offense, or any act
involving moral turpitude, even General Rule: The bailee is NOT liable for loss
though he should prove it, unless of the thing due to fortuitous event. [Art. 1174,
the crime or act has been CC]
committed against the bailee
himself, his wife or children under Since the bailor retains ownership of the
his authority; or property loaned, generally, it is the bailor who
c) Bailee unduly refuses bailor bears the liability for loss of the property loaned
support when bailee is legally or due to fortuitous events.
Page 395 of 532

Exceptions: The bailee is liable for loss of the 3. Simple Loan (mutuum)
thing, even if it is through a fortuitous event, if
the bailee: (DDS-KL)
1. Devoted the thing to any purpose different Art. 1953, CC. A person who receives a loan
from that for which it has been loaned; of money or any other fungible thing
2. Loaned thing has been Delivered with acquires the ownership thereof, and is
appraisal of its value bound to pay to the creditor an equal amount
of the same kind and qualit.
Exception: Unless there is a stipulation
exempting the bailee from responsibility in Mutuum – a contract where one of the parties
case of a fortuitous event; (creditor) delivers to another (debtor/borrower)
3. Saved his own thing, being able to save money or other consumable thing upon the
either the thing borrowed or his own thing condition that the same amount of the same
4. Kept the thing longer than the period kind and quality shall be paid. [Art. 1953]
stipulated, or after the accomplishment of
the use for which the commodatum has Obligations of the Borrower
been constituted; (EVI)
5. Lent or leased the thing to a third person,
who is not a member of his household; [Art. 1. Pay the creditor an Equal amount of the
1942, CC] same kind and quality. [Art. 1953, CC]
2. Pay Value at the time of perfection of
Right of Retention loan, if impossible, to deliver the same
kind. [Art. 1955, CC]
General Rule: The bailee has no right of 3. Pay Interest, if stipulated. [Art. 1956,
retention of the thing loaned on the ground that CC]
the bailor owes him something, even though it
may be by reason of expenses. [Art. 1944, CC] Rights of the Borrower
Exception: The bailee has the right of 1. Right of ownership; upon

retention for damages arising from hidden delivery/receipt of the loan of money or
flaws. [Art. 1944, 1951, CC] any fungible thing, the person acquires
ownership of the money/fungible thing
Extinguishment [Art. 1953, CC]
(DEA-PU) 2. Right to not pay interest, unless
stipulated [Art. 1956, CC]
1. Death of either the bailor or the bailee [Art. a. If the debtor however pays
1939, CC] interest when there is no
2. Expiration of term or accomplishment of stipulation, the rules on Solutio
purpose [Art. 1946, CC] Indebiti, or natural obligations,
3. Act/s of ingratitude has/have been shall be applied [Art. 1956,
committed by the bailee, and the bailor CC].
demands the return
4. Upon demand in case of Precarium Obligations of the Creditor
5. Bailor has Urgent need of the thing loaned,
and he demands the return (and not just Barred from placing stipulations under any
temporary use) cloak or device that circumvent laws on usury
[Art. 1957, CC].
Page 396 of 532

Rights of the Creditor Conventional interest
1. Right to receive an equal amount of the Simple interest – Paid for the principal at a
same kind and quality [Art. 1953, CC] certain rate fixed or stipulated by the parties.
2. Right to impose interest, once stipulated
[Art. 1959, CC]. Interest on interest
4. Interests On Loan Compound Interest – Interest which is

imposed when interest due and unpaid is
A mutuum or simple loan may be gratuitous capitalized or added to the principal. [Art.
or with a stipulation to pay interest. [Art. 1959, CC]
1933, CC]
Compound interest is allowed:
Interest – The compensation allowed by law or a. When there is an express written
fixed by the parties for the loan or forbearance stipulation to that effect [Art.1956, CC]
of money, goods or credits (conventional OR
interest), or the amount imposed by law or by b. Upon judicial demand. However,
courts as penalty or indemnity for damages debtor is not liable to pay compound
(compensatory interest) interest even after judicial demand
when there is no stipulation for
Requisites for Interest to be Chargeable payment of interest. [Art. 2212, CC]
(EWL)
1. Must be Expressly stipulated [Art. 1956, Compensatory, penalty or
CC] indemnity interest
Exceptions: Also known as Legal Interest – That which

a. The debtor in delay is liable to pay legal the law directs to be charged in the absence of
interest (6% per annum) as indemnity any agreement as to the rate between the
for damages [Art. 2209, CC] parties, or when there are actual and
b. Interest accruing from unpaid interest – compensatory damages imposed by the Court.
Interest demanded shall earn interest
from the time it is judicially demanded Rules for the Award of Interest in the
[Art. 2212, CC] or where there is an Concept of Actual and Compensatory
express stipulation [Art.1959, CC] Damages
2. Agreement must be in Writing [Art.1956,
CC] Note: Jurisprudential basis is Nacar v. Gallery
3. Must be Lawful Frames, G.R. No. 189871 (2013) modifying
Eastern Shipping Lines vs. CA, G.R. No. 97412
Note: If the abovementioned requisites are (1994)] in light of BSP-MB Circular No. 799]
not met, and the borrower:
a. Paid interest by mistake, the creditor 1. When the obligation is breached, and it
is obliged to return what was delivered consists in the payment of a sum of
[Arts 1960 and 2154, CC] money, i.e., a loan or forbearance of
b. Voluntarily paid interest (i.e., with money,
knowledge that the requisites have not a. The interest due should be that which
been met), the creditor is authorized to may have been stipulated in writing.
retain what was paid [Art. 1423, CC] b. The interest due shall itself earn legal
interest from the time it is judicially
demanded.
Page 397 of 532

c. In the absence of stipulation, the rate of 1. Under the Truth in Lending Act
interest shall be 6% per annum to be
computed from default, i.e., from Rep. Act No. 3765, “Truth in Lending Act”
judicial or extrajudicial demand under (TILA)
and subject to the provisions of Article
1169 of the CC. Sec. 3(3) "Finance charge" includes
interest, fees, service charges, discounts,
2. When an obligation, not constituting a and such other charges incident to the
loan or forbearance of money, is extension of credit as the Board may be
breached regulation prescribe.
a. An interest on the amount of damages
awarded may be imposed at the Note: This law applies to all persons who
discretion of the court at the rate of 6% extend credit, who require as an incident to
per annum. extending credit, the payment of a finance
b. No interest, however, shall be charge [Sec. 3(4), TILA].
adjudged on unliquidated claims or
damages, except when or until the “Credit” is defined in the TILA as “any loan,
demand can be established with mortgage, deed of trust, advance, or discount;
reasonable certainty. any conditional sales contract; any contract to
c. Where the demand is established with sell, or sale or contract of sale of property or
reasonable certainty, the interest shall services, either for present or future delivery,
begin to run from the time the claim is under which part or all of the price is payable
made judicially or extrajudicially [Art. subsequent to the making of such sale or
1169, CC] contract; any rental-purchase contract; any
d. When such certainty cannot be so contract or arrangement for the hire, bailment,
reasonably established at the time the or leasing of property; any option, demand,
demand is made, the interest shall lien, pledge, or other claim against, or for the
begin to run only from the date the delivery of, property or money; any purchase,
judgment of the court is made [at which or other acquisition of, or any credit upon the
time the quantification of damages may security of, any obligation of claim arising out
be deemed to have been reasonably of any of the foregoing; and any transaction or
ascertained]. series of transactions having a similar purpose
e. The actual base for the computation of or effect. [Sec. 3(2), TILA]
legal interest shall, in any case, be on
the amount finally adjudged. Requirement for Disclosure
Under Sec. 4 (6) of the TILA, finance charges
3. When the judgment of the court must be included in the disclosure form prior to
awarding a sum of money becomes final the consummation of transactions:
and executory, the rate of legal interest,
whether the case falls under paragraph 1 Sec. 4, TILA. Any creditor shall furnish to
or paragraph 2, above, shall be 6% per each person to whom credit is extended,
annum from such finality until its prior to the consummation of the transaction,
satisfaction, this interim period being a clear statement in writing setting forth, to
deemed to be by then an equivalent to a the extent applicable and in accordance with
forbearance of credit. rules and regulations prescribed by the
Board, the following information:
Finance Charges 1) the cash price or delivered price of
the property or service to be
acquired;
2) the amounts, if any, to be credited as
down payment and/or trade-in;
Page 398 of 532

3) the difference between the amounts recovery, the creditor shall be liable for
set forth under clauses (1) and (2); reasonable attorney's fees and court
4) the charges, individually itemized, costs as determined by the court.
which are paid or to be paid by such b) Except as specified in subsection (a) of
person in connection with the this section, nothing contained in this Act
transaction but which are not or any regulation contained in this Act or
incident to the extension of credit; any regulation thereunder shall affect
5) the total amount to be financed; the validity or enforceability of any
6) the finance charge expressed in contract or transactions.
terms of pesos and centavos; and c) Any person who willfully violates any
7) the percentage that the finance provision of this Act or any regulation
bears to the total amount to be issued thereunder shall be fined by not
financed expressed as a simple less than P1,00 or more than P5,000 or
annual rate on the outstanding imprisonment for not less than 6 months,
unpaid balance of the obligation. nor more than one year or both.
d) No punishment or penalty provided by
Under Section 4(6), "finance charge" this Act shall apply to the Philippine
represents the amount to be paid by the debtor Government or any agency or any
incident to the extension of credit such as political subdivision thereof.
interest or discounts, collection fees, credit e) A final judgment hereafter rendered in
investigation fees, attorney’s fees, and other any criminal proceeding under this Act to
service charges. The total finance charge the effect that a defendant has willfully
represents the difference between (1) the violated this Act shall be prima facie
aggregate consideration (down payment plus evidence against such defendant in an
installments) on the part of the debtor, and (2) action or proceeding brought by any
the sum of the cash price and non-finance other party against such defendant
charges [Sps. Silos v. Philippine National under this Act as to all matters
Bank, G.R. No. 181045, July 2, 2014]. respecting which said judgment would
be an estoppel as between the parties
Should the requirement under the TILA be not thereto.
complied with, the penalties under Sec. 9 will
apply: 2. Under the Philippine Credit Card
Industry Regulation Law
Section 6, TILA
a) Any creditor who in connection with any Sec. 5(k). Finance charges refer to the
credit transaction fails to disclose to any interest charged to the cardholder on all
person any information in violation of this credit card transactions in accordance with
Act or any regulation issued thereunder the terms and conditions specified in the
shall be liable to such person in the agreement on the use of the credit card;
amount of P100 or in an amount equal
to twice the finance charged required by Note: This law governs all credit card issuers,
such creditor in connection with such acquirers and all credit card transactions.
transaction, whichever is the greater,
except that such liability shall not exceed In Relation to Credit Limit
P2,000 on any credit transaction. Action Sec. 5(i). Credit card limit refers to the
to recover such penalty may be brought maximum total amount for purchases,
by such person within one year from the cash advances, balance transfers, and
date of the occurrence of the violation, in finance charges, service fees, penalties,
any court of competent jurisdiction. In and other charges which can be charged to
any action under this subsection in the credit card;
which any person is entitled to a
Page 399 of 532

Thus, in computing for credit limit, the finance shall be calculated based on the outstanding
charge is included. balance of the loan at the beginning of each
installment period.
Requirement for Disclosure
Section 11. Information to be Disclosed. - A All credit card-related documents shall show
credit card issuer shall disclose to all credit repayment schedules in a manner consistent
cardholders and potential credit cardholders with this provision. Marketing and advertising
the following information: materials shall likewise be consistent with this
(a) Finance charges for unpaid amounts provision.
after payment due date
Note: Basis is Circular No. 1003, Series of
When Finance Charge is Imposed 2018, “Guidelines on the Establishment and
Section 10. Imposition of Finance Operations of Credit Card lssuers to Implement
Charges. - Finance charges and other fees the Philippine Credit Card Industry Regulations
arising from nonpayment in full or on time of law.
the outstanding balance shall be based on
the unpaid amount of the outstanding Usury
balance.
Unlawful or Usurious Interest – Paid or
How Finance Charge is Imposed stipulated to be paid beyond the maximum
Credit card issuers shall only charge interest or fixed by law.
finance charges arising from the non-payment
in full or on time of the outstanding balance The Usury Law [Act No. 2566] – an act fixing
based on the unpaid amount of the outstanding rates of interests upon loans and declaring the
balance as of statement cut-off date, but effect of receiving or taking usurious rates and
excluding: for other purposes. [Arevalo v. Dimayuga,
a) the current billing cycle's purchase G.R. No. 26218 (1927)]
transactions reckoned from the
previous cycle's statement cut-off date; CB Circular No. 905 abolished interest rate
and ceilings. With the promulgation of such
b) deferred payments under zero-interest circular, usury has become “legally inexistent”
installment arrangements which are as the parties can now legally agree on any
not yet due interest that may be charged on the loan.
Interest or finance charges shall be imposed on Although usury is legally inexistent, courts will
the unpaid outstanding balance as of cut-off not hesitate to declare void “excessive,
date each time a cardholder pays less than, or iniquitous, unconscionable, exorbitant”
does not pay on time, the outstanding balance interest. [Gomez-Somera]
stated in his/her statement of account. Such
interest or finance charge shall continue to be Elements of Usury (MR-IT)
imposed until the outstanding balance and 1. A loan or forbearance of Money
applicable interest are fully paid. 2. An understanding between parties that the
loan shall and may be Returned
For credit card cash advances, a cardholder 3. An unlawful Intent to take more than the
may be charged cash advance fees and legal rate for the use of money or its
finance charges on the date that the cash is equivalent
obtained, subject to terms and conditions 4. The Taking or agreeing to take for the use
under the credit card agreement or contract. of the loan of something in excess of what
is allowed by law.
For a loan where the principal is payable in
installments, interest per installment period
Page 400 of 532

Note: A usurious loan transaction is not a ii. Necessary – obligation arises as a

complete nullity but defective only with respect consequence of law or quasi-contract
to the agreed interest, i.e., as if no interest was 2. Judicial – obligation arises as a
stipulated. [Carpo v. Chua, G.R. Nos. 150773 consequence of a law allowing the
and 153599 (2005)] Hence, if the principal issuance of a judicial order constituting a
obligation is the payment of a sum of money, deposit
the debtor will be liable for the principal plus
legal interest, following Article 2209. 1. Voluntary Deposit
Voluntary deposit – The deposit itself is a real
F. DEPOSIT contract, as it is not perfected until the delivery
of the thing. [Art. 1968, CC] A contract to
deposit, or an agreement to constitute a
A deposit is constituted from the moment a deposit, is consensual and binding.
person receives a thing belonging to another,
with the obligation of safely keeping it and of A deposit may be made by two or more
returning the same. [Art. 1962, CC] persons (who believe that they are entitled to
the thing deposited with a third person). The
Object of Deposit third person is to deliver the thing to the one to
Art. 1966 provides that only movable things whom it belongs. [Art. 1968, CC]
may be the object of a deposit. However, Art. How Entered Into: Orally or in writing [Art.
2006 provides that movable as well as 1969, CC]
immovable property may be the object of
sequestration or judicial deposit. How Perfected: The deposit is perfected upon
delivery, which is made by the will of the
Principal Purpose depositor. [Arts. 1963 and 1968, CC]
Safekeeping of the thing; if safekeeping is NOT
the principal purpose, or is only an accessory Extinguishment
obligation, there is NO DEPOSIT but some
other contract. [Art. 1962, CC] 1. Loss or destruction of thing deposited, or
2. In case of a gratuitous deposit, upon the
Consideration death of either the depositor or depositary
A deposit is generally gratuitous, except: [Art. 1995]. The depositary is not obliged to
1. If there is an agreement to the continue with the contract of deposit
contrary 3. By other modes provided in the CC, e.g.
2. When the depositary is engaged in novation, merger, etc. [See Art.1231, CC]
the business of storing goods [Art.
1965, CC] Obligations of a Depositary
(KRB)
Parties
1. Depositor: the person who delivers, or 1. Keep the thing safely
formally transfers, gives, or yields 2. Return the thing to the depositor, heirs,
possession or control of the movable successors or person designated in the
property for purposes of safekeeping contract, when required [Art. 1972,
2. Depositary: the person who receives it CC], together with all its products,
accessories and accessions. [Art.
Kinds Of Deposit 1983, CC] at the place designated
1. Extrajudicial when deposit was made. Otherwise,
i. Voluntary – obligation arises as a where the thing may be [Art. 1987, CC].
consequence of contract;
Page 401 of 532

Exception to return on demand: Exception to the exception: if such third

there is no obligation to return on person is manifestly careless or unfit [Art.
demand when (a) the thing is judicially 1973, CC];
attached while in the depositary’s 7. Loss occurs and the depositary Receives
possession, or (b) when depositary is money/replacement, he must deliver such
notified of the opposition of a third to the depositor [Art. 1990, CC]
person [Art. 1988, CC]
Authority of Depositary
Note: The depositary must return the (CC-UR)
thing closed and sealed if it is delivered
in that condition [Art. 1981, CC] 1. Depositary may Change way of deposit
if he may reasonably presume that the
3. Bear the expenses for preservation of depositor would consent if he knew the
the thing deposited if the deposit is situation. He is to notify the depositor
onerous [Art. 1992. CC] thereof and wait for the latter’s
decision, unless delay would cause
Depositary NOT LIABLE FOR LOSS danger. [Art. 1974, CC]
General rule: The depositary is not liable in the 2. Depositary is required to Collect on
event of loss. The required degree of care interest earned by certificates, bonds,
however, is greater if the deposit is for securities and instruments when it
compensation. becomes due. [Art 1975, CC]
3. Depositary cannot make Use of the
Exceptions: (NPC-FUTR) thing deposited unless with depositor’s
1. Loss is through his fault or Negligence [Art. consent or its preservation requires its
1170, CC] or the negligence of his use. [Art 1977, CC]
employee [Art. 1973], even if the thing was 4. Depositary may Return the thing to the
insured [Art. 2207, CC]; depositor even before the time
2. Loss while in his Possession, ordinarily designated, if there is justifiable reason
raises presumption of fault on his part. [See not to keep it.
Art. 1265, CC] Exception: when the deposit is for
3. Loss arose from the Character of the thing valuable consideration [Art. 1989, CC]
deposited, and the depositary was notified
of, or was aware of such character at the Obligations of a Depositor
time of the constitution of the deposit [Art.
1993, CC] 1. Depositor is obliged to reimburse the
4. Loss is through a Fortuitous event, and if depositary for expenses incurred for
a. It is stipulated that depositary will be preservation in a gratuitous deposit.
liable; [Art.1992, CC]
b. Depositary uses the thing without 2. Depositor is obliged to pay losses
Depositor’s permission; incurred due to the character of thing
c. Depositary delays its return; or deposited. [Art. 1993, CC]
d. Depositary allows others to use it. [Art.
1979, CC] Exceptions:
5. Loss when depositary Uses the thing a. Depositor was not aware nor expected
Exception: Use with permission or for to know of the dangerous character of
preservation the thing;
6. Loss when depositary deposits the thing b. Depositor notified the depositary of
with a Third person such dangerous character;
c. Depositary was aware of the danger
Exception: if deposit with a third person is without advice from the depositor.
allowed [Ibid.]
Page 402 of 532

Deposit by Travelers in Hotels

Authority of Depositor and Inns
1. When there are two or more depositors Before keepers of hotels or inns may be held
and they are not solidary and the thing responsible as depositaries with regard to the
admits of division, one cannot demand effects of their guests, the following must
more than his share [Art. 1985, CC]. concur:
2. If he should lose his capacity to 1. Keepers or their employees have
contract after having made the deposit, previously been informed about the
the thing cannot be returned except to effects brought by the guests; and
persons who may have administration 2. The latter have taken the precautions
of his property and rights. [Art. 1986, prescribed regarding their safekeeping.
CC]. [Art. 1998, CC]
Right of Retention Extent of Liability Under

Art.1998, CC
The depositary may retain the thing until the full
payment of what may be due him by reason of 1. Those in hotel rooms which come under
the deposit [Art. 1994, CC] the term “baggage” or articles such as
clothing as are ordinarily used by travelers
2. Necessary Deposit 2. Those lost or damaged in hotel annexes
such as vehicles in the hotel’s garage.
Made in compliance with a legal obligation, or
on the occasion of any calamity, or by travelers When Hotel-Keeper Liable
with common carriers [Arts.1734-1735, CC], or
by travelers in hotels and inns [Arts.1996-2004, Regardless of the amount of care exercised,
CC] the hotel-keeper is liable when—
1. The loss or injury to personal property is
Kinds of Necessary Deposit caused by his servants or employees as
(LCCH) well as by strangers [Art. 2000, CC].
2. The loss is caused by the act of a thief or
1. Deposit made in compliance with a Legal robber done without the use of arms and
obligation, in which case it is governed by irresistible force. [Art. 2001, CC]
the law establishing it, and in case of
deficiency, the rules on voluntary deposit, When Hotel-Keeper not Liable
e.g., Arts. 538, 586 and 2104
2. Deposit taking place on the occasion of any 1. The loss or injury is caused by force
Calamity [Art. 2168, CC] majeure, like flood, fire, [Art.2000, CC] theft
or robbery by a stranger—not the hotel-
Note: There must be a causal relation keeper’s servant or employee—with the
between the calamity and the constitution use of firearms or irresistible force
of the deposit. In this case the deposit is [Art.2001, CC]
governed by the rules on voluntary deposit.
3. Deposit made by passengers with Exception: Hotel-keeper is guilty of fault or
Common carriers. [Art.1754, CC] negligence in failing to provide against the
4. Deposit made by travelers in Hotels or inns. loss or injury from his cause. [Arts.1170
[Art. 1998, CC] and 1174, CC]
2. The loss is due to the acts of the guests,
his family, servants, visitors [Art.2002, CC]
Page 403 of 532

3. The loss arises from the character of the ended unless the court so orders. [Art.
things brought into the hotel [Art. 2002, CC] 2007, CC]
The hotel-keeper cannot free himself from Applicable Law

responsibility by posting notices to the effect
that he is not liable for the articles brought by Judicial deposit law is remedial or procedural.
the guest. Such kind of stipulation shall be The Rules of Court shall govern matters not
void. [Art. 2003, CC] provided for in the CC. [Art. 2009, CC]
Hotel-Keeper’s Right to
Retention G. LEASE
The hotel-keeper has a right to retain the things
brought into the hotel by the guest, as a
security for credits on account of—
1. Definition
1. lodging,
2. supplies usually furnished to hotel guests Scope
The contract of lease may be of things, or of
[Art. 2004, CC].
work and service. [Art. 1642, CC]
The right of retention recognized in this article
Lease of Things
is in the nature of a pledge created by operation
In the lease of things, one of the parties binds
of law.
himself to give to another the enjoyment or use
of a thing for a price certain, and for a period,
3. Judicial Deposit Or which may be definite or indefinite. However,
Sequestration no lease for more than ninety-nine years shall
be valid. [Art. 1642, CC]
Takes place when an attachment or seizure of
property in litigation is ordered. [Arts. 2005- Lease of Work and Service
2009, CC] It is the only type of deposit that may In the lease of work or service, one of the
involve immovable property. parties binds himself to execute a piece of work
or to render to the other some service for a
Nature and Purpose price certain, but the relation of principal and
agent does not exist between them. [Art. 1644,
It is auxiliary to a case pending in court. The CC]
purpose is to maintain the status quo during
pendency of the litigation or to insure the right Limitation
of the parties to the property in case of a Consumable goods cannot be the subject
favorable judgment. matter of a contract of lease, except when they
are merely to be exhibited or when they are
Depositary of Sequestered accessory to an industrial establishment. [Art.
1645, CC]
Property
Record in the Registry of the Property
A person is appointed by the court [Art. 2007]
If the lease is to be recorded in the Registry of
with the obligations—
property, the following persons cannot
1. To take care of the property with the
constitute the same without proper authority:
diligence of a good father of the family. [Art.
1. The husband with respect to the wife’s
2008, CC]
paraphernal real estate;
2. To continue in his responsibility until the
2. The father or guardian as to the property of
controversy which give rise thereto is
a minor or ward;
Page 404 of 532

3. And the Manager without special power which has been intrusted to
[Art. 1647, CC] them; this provision shall apply
to judges and government
Every lease of real estate may be recorded in experts who, in any manner
the Registry of Property. Unless a lease is whatsoever take part in the sale;
recorded, it shall not be binding upon third 5. Justices, judges, prosecuting
persons. [Art. 1648, CC] attorneys, clerks of superior and
inferior courts, and other officers and
2. Who are Qualified or employees connected with the
administration of justice
Disqualified? ● The property and rights in
litigation or levied upon an
Those Disqualified execution before the court within
The persons disqualified to buy referred to in those jurisdiction or territory
Articles 1490 and 1491, are also disqualified to they exercise their respective
become lessees of the things mentioned functions this prohibition
therein [Art. 1646, CC] includes the act of acquiring by
assignment and shall apply to
Those disqualified under Art. 1490 lawyers, with respect to the
● The husband and wife cannot sell property, property and rights which may
except for be the object of any litigation in
○ When a separation of property was which they may be the object of
agreed upon in the marriage any litigation in which they may
settlements; or take part by virtue of their
○ When there has been a judicial profession
separation of property under Art. 191. 6. Others specially disqualified by law
Those disqualified under Article 1941
● The following persons cannot acquire by 3. Obligations of Parties
purchase, even at a public or judicial
auction, either in person or through the Obligations of a Lessor
mediation of another:
1. The guardian, (1) To deliver the thing which is the object of
● The property of the person or the contract in such a condition as to render
persons who may be under his it fit for the use intended;
guardianship; (2) To make on the same during the lease all
2. Agents the necessary repairs, unless there is a
● The property whose stipulation to the contrary;
administration or sale may have (3) To maintain the lessee in the peaceful
been intrusted to them, unless and adequate enjoyment of the lease [Art.
the consent of the principal have 1654, CC]
been given; (4) If lessee makes improvements in good
3. Executors and administrators faith, without altering form or substance,
● The property of the estate under lessor, upon the termination of the lease,
their administration; shall pay the lessee one-half of the value
4. Public officers and employees of the improvements at that time. If
● The property of the State or of payment is refused, lessee may remove
any subdivision thereof, or of the improvements, even though the
any government owned or principal thing may suffer damage thereby.
controlled corporation, or [Art. 1678, CC]
institution, the administration of
Page 405 of 532

Note: If the thing leased is totally destroyed by (6) Lessee is obliged to tolerate the need for
a fortuitous event, the lease is extinguished. If urgent repairs made during his lease.
the destruction is partial, the lessee may
choose between Note: If repairs last more than 40 days, rent
1. Proportional reduction of the rent and, may be reduced. If the work is of such
2. A rescission of the lease [Art. 1655, CC] nature to render the dwelling uninhabitable,
lessee may rescind the contract [Art. 1662,
In cases of business or industrial CC]
establishment, the lessor may continue
engaging in the same business or industry to (7) To Return the thing leased upon
which the lessee devotes the thing leased, termination of lease just as he received it,
unless there is a stipulation to the contrary. [Art. except for impairment due to lapse of time,
1656, CC] ordinary wear and tear or inevitable causes
Lessor is not obliged to answer for a mere act Note: In the absence of stipulation, the law
of trespass which a third person may cause; presumes that the lessee had received it in
however he or she shall have a direct action good condition [Art. 1666, CC]
against the intruder. [Art 1664, CC]
(8) To be Responsible for the loss or
Prohibited Acts By the Lessor deterioration of the thing leased, unless
Lessor cannot alter the form of the thing he proves it is without his fault [Art. 1667,
leased in such a way as to impair the use to CC]
which the thing is devoted.
Note: This does not apply to cases when
Obligations of a Lessee destruction is caused by natural calamity
(1) To pay the price of the lease according to (9) To be liable for any deterioration caused
the terms stipulated; by members of his household, guests or
(2) To use the thing leased as a diligent visitors [Art. 1668, CC]
father of a family, devoting it to the use
stipulated; 4. Payment
Note: In the absence of stipulation, the In the absence of stipulation, Article 1251 shall
diligence required is to that which may be be observed as regards the place; and with
inferred from the nature of the thing leased, respect to the time, the custom of the place
according to the custom of the place; shall be followed.
(3) To pay expenses for the deed of lease General Rule: Payment shall be made in the
[Art. 1657, CC] place designated in the obligation.
(4) To notify the lessor of usurpation or
untoward act which any third person may Exception: There being no express stipulation
or will commit [Art. 1663, CC] and if the undertaking is to deliver a
(5) To advise the lessor of need for repairs, determinate thing, the payment shall be made
to return the property leased upon. where the thing might be at the moment the
obligation was constituted.
Note: If the lessor fails to make any urgent
repairs, lessee may order the repairs at the In any other case the place of payment shall be
lessor’s cost. Lessee shall be liable for any the domicile of the debtor.
damages caused by his own negligence
Page 406 of 532

5. Termination cease with respect to the new lease. [Art.

1672, CC]
The lease may terminate:
1. By the expiration of the period [Art. 1669]; 7. Unlawful Detainer
2. By the total loss of the thing;
3. By the resolution of the right of the lessor, If the lessee continues enjoying the thing after
such as when the lessor is usufructuary the expiration of the contract, over the lessor's
and the usufruct is terminated; objection, he is subject to the responsibilities of
4. By the will of the purchaser or transferee of a possessor in bad faith. [Art. 1671, CC]
the things;
5. By rescission due to nonperformance of In ejectment cases where an appeal is taken, a
the obligations of one of the parties [Art. preliminary mandatory injunction may be
1659, CC] granted to restore the lessor in possession if
● The aggrieved party may either ask for the higher court is satisfied that:
the rescission of the contract and ○ the lessee's appeal is frivolous or
indemnification for damages, OR only dilatory, or
ask for indemnification for damages ○ the lessor's appeal is prima facie
(the contract remains in force). meritorious, by motion filed within 10
6. If a dwelling place or any other building days from the time the appeal is
intended for human habitation is in such a perfected. [Art. 1674, CC]
condition that its use brings imminent and
serious danger to life or health [Art. 1660, Causes for judicial ejection of the lessee
CC] (Art. 1673)
● To terminate the lease, the lessee must i. When the period agreed upon, or that
notify the lessor, even if at the time the which is fixed for the duration of leases
contract was perfected the former under Articles 1682 and 1687, has
knew of the dangerous condition or expired
waived the right to rescind the lease on ii. Art. 1682: When the duration of the
account of this condition. lease of rural land has not been fixed
a. The duration is for all the time
6. Renewal necessary to gather the fruits of
the estate which it may yield in
Implied renewal of lease one year, or which it may yield
a. Occurs if at the end of the contract, the once, although two or more
lessee continues enjoying the thing leased years have to elapse for the
for 15 days with the lessor’s acquiescence purpose.
[Art. 1670, CC] iii. Art. 1687: If the period for the lease has
b. Period of new lease: Unless a notice to the not been fixed
contrary by either party has previously a. The duration is from year to
been given, it is understood that there is an year, if the rent is annual; from
implied new lease for the time established month to month, if it is monthly;
in Art. 1682 and 1687. from week to week, if it is
! Such period depends on the character weekly; and from day to day, if
of the property and the periods of it is to be paid daily.
payment of the rent [Tolentino]. See b. In case of monthly rent, and
Special Provisions. there is no period for the lease,
c. The other terms of the original contract the courts may fix a longer term
shall be revived. if the lessee was in possession
d. Obligations contracted by a third person for for over one year.
the security of the principal contract shall c. In case of weekly rent, the
courts may fix a longer term if
Page 407 of 532

the lessee was in possession 2. When the purchaser knows of the

for over six months. existence of the lease.
d. In case of daily rent, the courts
may fix a longer period if the If the buyer makes use of this right, the
lessee was in possession for lessee may demand:
over one month. 1. That he be allowed to gather the fruits of
iv. Lack of payment the harvest which corresponds to the
v. Violation of any of the conditions in the current agricultural year; and
contract 2. That the vendor indemnifies him for
vi. When the lessee devotes the thing damages suffered.
leased to any use or service not
stipulated which causes its If the sale is fictitious, for the purpose of
deterioration, or if he does not observe extinguishing the lease, the supposed vendee
his obligations in Art. 1657 cannot make use of the right to terminate the
lease.
Note: The ejectment of tenants of ! The sale is presumed to be fictitious if
agricultural lands is governed by special at the time the supposed vendee
laws. demands the termination of the lease,
the sale is not recorded in the Registry
Right to make use of periods of Property.
General Rule: The lessee has the right to
make use of the periods established in Articles 9. Sub-Lease
1682 and 1687.
General Rule: When in the contract of lease of
Exceptions: Art. 1673 things there is no express prohibition, the
lessee may sublet the thing leased, in whole or
Right to repurchase (Art. 1677) in part, without prejudice to his responsibility for
The purchaser in a sale with the right of the performance of the contract toward the
redemption cannot make use of the power to lessor. [Art. 1650, CC]
eject the lessee until the end of the period for
the redemption. Liability of sublessee
Without prejudice to his obligation toward the
8. Transfer of Lease sublessor, the sublessee is bound to the lessor
for all acts which refer to the use and
General Rule: The lessee cannot assign the preservation of the thing leased in the manner
lease without the consent of the lessor. stipulated between the lessor and the lessee.
[Art. 1651, CC]
Exception: There is a stipulation to the
contrary. [Art. 1649, CC] The sublessee is subsidiarily liable to the
lessor for any rent due from the lessee.
Rights of a Purchaser of Land Under a However, the sublessee shall not be
Lease [Art. 1676, CC] responsible beyond the amount of rent due
General Rule: The purchaser of a piece of land from him, in accordance with the terms of the
which is under a lease that is not recorded in sublease, at the time of the extra-judicial
the Registry of Property may terminate the demand by the lessor.
lease.
Payments of rent in advance by the sublessee
Exceptions: shall be deemed not to have been made, so far
1. There is a stipulation to the contrary in the as the lessor's claim is concerned, unless said
contract of sale; or payments were effected in virtue of the custom
of the place. [Art. 1652, CC]
Page 408 of 532

● Should they diminish its fitness for such

10. Warranties use to such an extent that, had the vendee
been aware thereof, he would not have
General Rule: In a contract of sale, there is an acquired it or would have given a lower
implied warranty on the part of the seller that: price for it.
1. He has a right to sell the thing at the time
when the ownership is to pass, and that the Exception: Said vendor shall not be
buyer shall from that time have and enjoy answerable for:
the legal and peaceful possession of the ● Patent defects;
thing; and ● Those which may be visible; or
2. The thing shall be free from any hidden ● For those which are not visible if the
faults or defects, or any charge or vendee is an expert who, by reason of his
encumbrance not declared or known to the trade or profession, should have known
buyer. them.
Exception: Unless a contrary intention The provisions governing warranty, contained

appears [Art. 1547, CC] in the Title on Sales, shall be applicable to the
contract of lease. [Art. 1653(1), CC]
Note: Art. 1547 shall not be held to render
liable a sheriff, auctioneer, mortgagee, Where Return of the Price is
pledgee, or other person professing to sell by Required [Art. 1653(2), CC]
virtue of authority in fact or law, for the sale of
a thing in which a third person has a legal or Reduction shall be made in proportion to the
equitable interest. time during which the lessee enjoyed the thing.
Eviction [Art. 1548, CC] Presumption of Good Condition

[Art. 1666, CC]
Eviction shall take place whenever by a final
judgment based on a right prior to the sale or General Rule: In the absence of a statement
an act imputable to the vendor, the vendee is concerning the condition of the thing at the time
deprived of the whole or of a part of the thing the lease was constituted, the law presumes
purchased. that the lessee received it in good condition.
The vendor shall answer for the eviction even Exception: There is proof to the contrary.
though nothing has been said in the contract on
the subject. 11. Special Provisions
The contracting parties, however, may
increase, diminish, or suppress this legal
Special Provisions on the
obligation of the vendor. Lease of Rural Lands
Warranty against Defects [Art. a. Reduction of Rent

1676, CC] ● Lessee shall have NO right to a
reduction of the rent on account of the
General Rule: The vendor shall be responsible
sterility of the land leased, or by
for warranty against the hidden defects which
reason of the loss of the fruits due to
the thing sold may have:
ordinary fortuitous events;
● Should they render it unfit for the use for ○ Exception in case of Extraordinary
which it is intended; or
Fortuitous Events: He shall have
such right in case of loss of more
Page 409 of 532

than one-half of the fruits through ○ All in accordance to the

extraordinary and unforeseen customs of the place. [Art.
fortuitous events 1683, CC]
○ Extraordinary Fortuitous events:
a. Fire; d. Land Tenancy On Shares
b. War;
c. Pestilence; ● Governed by special laws, the
d. Unusual Flood; stipulations of the parties, the
e. Locusts; provisions on partnership and by the
f. Earthquake; customs of the place. [Art. 1684, CC]
g. Or others which are ● The tenant on shares cannot be
uncommon, and which ejected except in cases specific by law.
contracting parties could not [Art. 1685, CC]
have foreseen [Art. 1680,
CC] Special Provisions for the
○ Exception to Exception: Unless Lease of Urban Lands
there is stipulation to the contrary.
● The lessee shall also have NO right to i. Rules on Repair
the reduction of the rent if the fruits are ● The customs of the place shall be
lost after they have been separated observed with regard to the kind of
from their stalk, root, or trunk. [Art. repairs on urban property for which
1682, CC] the lessor shall be liable
● In case of doubt, repairs are
b. Duration of Lease if Not chargeable against the lessor
Fixed ● Exception: Unless there is a
special stipulation [Art. 1686, NCC]
● All the time necessary for the gathering
of the fruits which the whole estate ii. Period if Unfixed
leased may yield in one year, or which ● Depends on the rent agreed upon
it may yield once, although two or more ○ If rent is annual, the lease is
years may have elapsed for the understood to be from year to year;
purpose. [Art. 1682, CC] ○ If the rent is monthly, lease is
understood to be from month to
c. Obligation of Lessees month;
○ If rent is weekly, lease is
● Outgoing Lessees understood to be from week to
○ Shall allow the incoming lessee or week
the lessor use of the premises; and ○ If rent is to be paid daily, lease is
other means necessary; daily.
○ For the preparatory labor for the ● Exception: Court may fix a longer
following year period IF:
! Incoming Lessee or Lessor ○ In case of monthly rent:
○ Must permit; ■ Lessee has occupied the
○ The Outgoing Lessee; premises for over a year
○ To do whatever may be necessary ○ In case of weekly rent:
for: ■ Lessee has been in possession
1. Gathering; or for over six months
2. Harvesting; and ○ In case of daily rent:
3. Utilization; ■ Lessee has stayed in the place
○ Of the fruits; for over one month [Art. 1687,
CC]
Page 410 of 532

iii. Period of Lease of Furniture The obligation does not arise:

When the lessor of a house, or part a. When the property or business is not
thereof, used as dwelling for a family, neglected or abandoned;
or when the lessor of a store, or b. If in fact the manager has been tacitly
industrial establishment, also leases authorized by the owner.
the furniture, the lease of the latter shall
be deemed to be for the duration of the In the first case, the provisions of Articles 1317,
lease of the premises. [Art. 1688, NCC] 1403(1), and 1404 regarding unauthorized
contracts shall govern.
QUASI-CONTRACTS In the second case, the rules on agency shall

be applicable. [Art. 2144, CC]
A quasi-contract is that juridical relation 1. Obligations of a Gestor

resulting from a lawful, voluntary and unilateral
act, and which has for its purpose the payment a. Observe the requisite standard
of indemnity to the end that no one shall be of diligence
unjustly enriched or benefited at the expense
of another [Art. 2142, CC] The officious manager must perform his duties
with all the diligence of a good father of a
Based on presumed will or intent of the obligor family
dictated by equity and by the principles of
absolute justice [Padcom v. Ortigas Center, He must pay the damages which through his
G.R. No. 146807 (2002)] fault and negligence may be suffered by the
owner of the property/business under his
Unlike contracts, here there is absence of management. The courts may, however,
consent. It is voluntary and unilateral [Casis] increase or moderate the indemnity according
to the circumstances of each case. [Art. 2145,
CC]
A. NEGOTIORUM GESTIO
(UNAUTHORIZED b. Liability in the management of
MANAGEMENT) the property
Negotiorum gestio takes place when a Solidary liability

person voluntarily takes charge of another’s The officious manager is liable for the acts of
abandoned business or property without the the persons to whom he delegated all or some
owner’s authority [Art. 2144, CC]. As a rule, of his duties. The responsibility of two or more
reimbursement must be made to the gestor gestors shall be solidary, unless the
(i.e., one who carried out the business) for management was assumed to save the thing
necessary and useful expenses. or business from imminent danger. [Art. 2146,
CC]
Requisites:
1. Person voluntary takes charge of; Note: This is without prejudice to the direct
2. the agency or management of a obligation of the delegate to the owner of the
business or property belonging to business.
another;
3. property or business is neglected or Liability for fortuitous events
abandoned; and The officious manager is liable for any
4. manager has not been tacitly fortuitous event under the following
authorized by the owner. conditions:
Page 411 of 532

1. If he undertakes risky operations which The above obligations shall be incumbent upon
the owner was not accustomed to embark the owner if the management had for its
upon purpose the prevention of an imminent and
2. If he has preferred his own interest to manifest loss, although no benefit may have
that of the owner been derived. [Art. 2150, CC]
3. If he fails to return the property or
business after demand of the owner The owner would still be liable, even if the
4. If he assumed management in bad faith owner did not derive any benefit and there
[Art. 2147, CC] was no imminent and manifest danger to the
5. If he is manifestly unfit to carry on the property or business, provided:
management 1. The gestor has acted in good faith;
6. If by his intervention he prevented a more and
competent person from taking up the 2. The property or business is intact,
management. [Art. 2148, CC] ready to be returned to the owner.
[Art. 2151, CC]
Note: The gestor shall not be liable for (e) and
(f) if the management was assumed to save the
property or business from imminent danger.
3. Effect of Ratification
The ratification of the management by the
Personal liability
owner of the business produces the effects of
Be personally liable for contracts which he
an express agency, even if the business may
entered into with third persons, even though
not have been successful. [Art. 2149, CC]
he acted in the name of the owner, and there
shall be no right of action between the owner
and third persons. 4. Extinguishment of
Management
The gestor shall NOT be personally liable for
such contracts, provided: 1. When the owner repudiates or puts
• The owner has expressly or tacitly ratified an end thereto
the management, or 2. When the gestor withdraws from the
• When the contract refers to things management, subject to Art. 2144
pertaining to the owner of the business. 3. By the death, civil interdiction,
[Art. 2152, CC] insanity or insolvency of the owner or
the gestor. [Art. 2153, CC]
2. Obligations of the Owner of
the Property or Business B. SOLUTIO INDEBITI
Although the management was not expressly (UNDUE PAYMENT)
ratified, the owner who enjoys the advantages
of the same shall: Solutio indebiti takes place when something
is received when there is no right to demand
1. Be liable for the obligations incurred it, and it was unduly delivered through
in his interest mistake. The recipient has the duty to return
2. Reimburse the gestor for the it [Art. 2154, CC].
necessary and useful expenses and
for the damages the latter may have 1. Requisites
suffered in the performance of his
duties 1. Something has been unduly delivered
through mistake; and
Page 412 of 532

2. Something was received when there 5. Liability of Payee

was no right to demand it [Metrobank v.
Absolute Management Corp., G.R. No. If in bad faith, he shall be liable:
170498 (2013)] 1. For legal interest if a sum of money is
involved, or
This situation may cover payment by reason of 2. For the fruits received or which should have
a mistake in the construction or application of a been received if the thing produces fruits,
doubtful or difficult question of law [Art. 2155, and
CC]. 3. For any loss or impairment of the thing for
any cause, and
The Government also comes within the scope 4. For damages to the person who delivered
of solutio indebiti. Tax refunds are based on the thing, until it is recovered. [Art. 2159, CC]
such. [CIR v. Acesite, G.R. No. 147295 (2007)]
If in good faith, he shall be liable:
1. For the impairment or loss of the thing
2. When Debt Not Yet Due certain and determinate or its accessories
and accessions insofar as he has thereby
If the payer was in doubt whether the debt was been benefited.
due, he may recover if he proves that it was not 2. For the return of the price or assign the
due. [Art. 2156, CC] action to collect the sum if he has alienated
the same. [Art. 2160, CC]
3. Responsibility of Two or More
Payees 6. Exemption from the Obligation
to Restore the Payment Unduly
When there has been payment of what is not Made
due, their responsibility is solidary. [Art. 2157,
CC]
A person who, believing in good faith that the
payment was being made of a legitimate and
4. When Money or Thing subsisting claim,
Delivered is Owned by Third 1. destroyed the document, or
2. allowed the action to prescribe, or
Person 3. gave up the pledges, or
4. cancelled the guaranties for his right shall be
The payee cannot demand that the payor exempt from the obligation to restore.
prove his ownership of the thing delivered.
The person who paid unduly may proceed only
Nevertheless, should he discover that the thing against the true debtor or the guarantors with
has been stolen and who its true owner is, he regard to whom the action is still effective. [Art.
must advise the latter. 2162, CC]
If the owner, in spite of such information, does

not claim it within the period of one month, the
7. Presumption of Payment by
payee shall be relieved of all responsibility by Mistake, Defense
returning the thing deposited to the payor.
The presumption arises if something which had
If the payee has reasonable grounds to believe never been due or had already been paid was
that the thing has not been lawfully acquired by delivered; but he from whom the return is
the payor, the former may return the same. [Art. claimed may prove that the delivery was made
2158] out of liberality or for any other just cause. [Art.
2163, CC]
Page 413 of 532

regulations concerning property,

C. OTHER QUASI- undertakes to do the necessary work,
CONTRACTS even over his objection, he shall be liable
to pay the expenses. [Art. 2169, CC]
a. When, without the knowledge of the person
obliged to give support, it is given by a g. When by accident or other fortuitous event,
stranger, the latter shall have a right to movables separately pertaining to two or
claim the same from the former, unless it more persons are commingled or
appears that he gave it out of piety and confused, the rules on co-ownership shall
without intention of being repaid. [Art. be applicable. [Art. 2170, CC]
2164, CC]
h. The rights and obligations of the finder of
b. When the person obliged to support an lost personal property shall be governed by
orphan, or an insane or other indigent Articles 719 and 720. [Art. 2171, CC]
person unjustly refuses to give support to
the latter, any third person may furnish i. The right of every possessor in good faith
support to the needy individual, with right to reimbursement for necessary and useful
of reimbursement from the person obliged expenses is governed by Article 546. [Art.
to give support. The provisions of this 2172, CC]
article apply when the father or mother of a
Note: Possessor in good faith may retain the
child under eighteen years of age unjustly
thing until he has been reimbursed [Casis].
refuses to support him. [Art. 2166, CC]
j. When a third person, without the
c. When funeral expenses are borne by a
knowledge of the debtor, pays the debt, the
third person, without the knowledge of
rights of the former are governed by
those relatives who were obliged to give
Articles 1236 and 1237. [Art. 2173, CC]
support to the deceased, said relatives
shall reimburse the third person, should the
Note: Cannot compel creditor to subrogate
latter claim reimbursement. [Art. 2165, CC]
him in his rights [Art. 1237, CC].
Note: Only necessary expenses. 3rd person
k. When in a small community, a majority of
must claim [Casis].
the inhabitants of age decide upon a
measure for protection against
d. When through an accident or other cause
lawlessness, fire, flood, storm or other
a person is injured or becomes seriously ill,
calamity, anyone who objects to the plan
and he is treated or helped while he is not
and refuses to contribute to the expenses
in a condition to give consent to a contract,
but is benefited by the project as executed
he shall be liable to pay for the services of
shall be liable to pay his share of said
the physician or other person aiding him,
expenses. [Art. 2174, CC]
unless the service has been rendered out
of pure generosity. [Art. 2167, CC]
l. Any person who is constrained to pay the
taxes of another shall be entitled to
e. When during a fire, flood, storm, or other
reimbursement from the latter. [Art. 2175,
calamity, property is saved from
CC]
destruction by another person without the
knowledge of the owner, the latter is bound
Note: The list of quasi-contracts in the Civil
to pay the former just compensation. [Art. Code is not exhaustive. A quasi-contractual
2168, CC] relation may be forced upon the parties to
prevent unjust enrichment [PNB v. Court of
f. When the government, upon the failure of Appeals, G.R. No. 97995 (1993)]
any person to comply with health or safety
Page 414 of 532

U.P. LAW BOC LAND TITLES AND DEEDS CIVIL LAW
LAND TITLES AND

DEEDS
CIVIL LAW
Page 415 of 532

Estate
A. TORRENS SYSTEM An estate, strictly speaking, represents the
nature, extent, degree, and quantity of a
person’s interest in land.
1. Concept and Background Types of Estates
a. Freehold Estate – Indicates title of
Land title ownership
It is the evidence of the right of the owner or 1. Fee Simple – An absolute title;
the extent of his interest, by which he can Absolute estate in perpetuity; Title to
maintain control, and as a rule, assert right to land is conferred upon a man and his
exclusive possession and enjoyment of the heirs absolutely and without any
property. [Peña] limitation imposed upon the estate
2. Fee Tail – One designed to pass title
Title and Certificate of Title Distinguished from grantee to his heirs, in the intent
Certificate of of the grantor being to keep the
Title
Title property in the grantee’s line of issue
3. Life Estate – One held for the duration
Lawful cause or ground of the life of the grantee; In some
of possessing that cases, it may terminate earlier as by
It is a mere
which is ours. forfeiture
evidence of
ownership; it is not b. Less-than-Freehold Estate – Signifies
That which constitutes some sort of right short of title
the title to the land
a just cause of 1. Estate for Years – In the nature of a
itself [Castillo v.
exclusive possession, lease short of title; grantee or lessee
Escutin, G.R. No.
or which is the takes over possession of the land for a
171057 (2009).
foundation of period agreed upon but the grantor
ownership of property. retains the legal title to the property
2. Tenancy from period to period – Also
in the nature of a lease which may run
The title is a conclusive evidence of
from month to month or from year to
ownership and it cannot be attacked
year, with the peculiarity of automatic
collaterally.
renewal from time to time, unless
expressly terminated by either party
Deed
3. Tenancy at will – Another form of
A written instrument executed in accordance lease agreement where a person is
with law, wherein a person grants or conveys
permitted to occupy the land of another
to another certain land, tenements or
without any stipulation as to period, but
hereditaments. [Peña]
either party reserves the right to
terminate the occupation at will or at
Elements of A Deed
any time
a. Grantor
b. Grantee
Land Registration
c. Words of Grant
A judicial or administrative proceeding whereby
d. Description of the property involved
a person’s claim of ownership over a
e. Signature of the grantor
particular land is determined and confirmed
f. At least two (2) witnesses
or recognized so that such land and the
g. Notarial acknowledgment
ownership thereof may be recorded in a public
registry.
Page 416 of 532

f. Comprehensive Agrarian Reform Law of

Note: Registration does not vest title. It is not a 1988 [RA 6657, as amended]
mode of acquiring ownership but is merely
evidence of such title over a particular property. To simplify and streamline land registration
proceedings, Presidential Decree No. 1529
Nature of Land Registration was issued on June 11, 1978, otherwise known
Judicial proceedings for the registration of as the Property Registration Decree, governing
lands throughout the Philippines shall be in registration of lands under the Torrens system
rem and shall be based on the generally as well as the recording of transactions relating
accepted principles underlying the Torrens to unregistered lands, including chattel
system [Sec. 2, par. 1, PD 1529] mortgages. This Decree consolidates, in effect,
all pre-existing laws on property registration
A proceeding in rem is when the object of the with such appropriate modifications as are
action is to bar indifferently all who might be called for by existing circumstances. [Peña]
mined to make an objection of any sort against
the right sought to be established, and if Purposes of Land Registration
anyone in the world has a right to be heard on Registration is merely a species of notice.
the strength of alleging facts which if true, show The act of registering a document is never
an inconsistent interest. [Agcaoili] necessary in order to give it legal effect as
between the parties. The system maintains a
The land registration is binding on the whole permanent record of landholdings, in order to
world because “by the description in the notice prevent fraudulent claims to land by
(of initial hearing of the application for concealment of transfers.
registration) “To Whom It May Concern,” all the
world are made parties defendant.” [Aquino, Another purpose is to notify and protect the
citing Esconde v. Barlongay, G.R. No. L-67582 interests of strangers to a given transaction,
(1987)] who may be ignorant thereof. However, where
a document so registered is invalid or legally
In a registration proceeding, the judgment of defective, registration will not in any way render
the court confirming the title, and ordering its it valid or cure its defect.
registration in one’s name constitutes, when
final, res judicata against the whole world [Ting Object of Registration
v. Heirs of Liro, G.R. No. 16891 (2007)] Only real property or real rights may be the
object of registration under the existing land
There is no need to personally notify the registration laws.
owners or claimants of the land sought to be
registered if it is involved in a land registration Classification of Lands [Art. XII, Sec. 3, 1987
case since it is a proceeding in rem. This gives Constitution]
automatic power and authority to the court over a. Agricultural
the res. [Guido-Enriquez v. Victorino, et al., b. Forestland or timberland
G.R. No. 180427 (2013)] c. Mineral Lands
d. National Parks
Laws Implementing Land Registration
a. Public Land Act [CA 141, as amended] Classification of lands is an exclusive
b. Property Registration Decree [PD 1529, as prerogative of the executive department. In
amended] the absence of such classification, the lands
c. Cadastral Act [Act 2259, as amended] remain as unclassified until it is released
d. Indigenous Peoples Rights Act of 1997 [RA therefrom and rendered open to disposition.
8371] The President, through a Presidential
e. Emancipation Decree [PD 27, as Proclamation or Executive Order can classify
amended] or reclassify land to be included or excluded
Page 417 of 532

from the public domain. The DENR Secretary wills, and other documents for the validity of
is also empowered to approve a land conveyances.
classification and declare such land as
alienable and disposable. [Agcaoili, citing The Torrens system was introduced in the
Fortuna v. Republic, G.R. No. 173423 (2014)] Philippines by Act No. 496, which took effect on
Jan. 1, 1903. This was later amended and
Registrable lands are superseded by PD 1529 which took effect on
a. Alienable public agricultural lands June 11, 1978.
If the land is in the public domain, the
land must be classified as alienable The underlying principle of the Torrens system
and disposable. It must be classified as is security with facility in dealing with land. It
such at the time of filing the application requires that the government issue an official
for registration. [Republic v. CA and certificate of title attesting to the fact that the
Naguit, G.R. No. 144057 (2005)] person named is the owner of the property
b. Private lands described therein, subject to such liens and
encumbrances thereon noted or the law
Non-registrable lands warrants or reserves. The certificate of title is
Those found in the CC dealing with non- indefeasible and imprescriptible and all claims
registrable properties (e.g. property of public to the parcel of land are quieted upon issuance
dominion) of said certificate. [Cruz v. Secretary of
Environment and Natural Resources]
a. Torrens System
Nature
Torrens System Judicial in nature.
A system for registration of land under which,
upon landowner’s application, the court may, Purpose
after appropriate proceedings, direct the The real purpose of the Torrens system of
issuance of a certificate of title. [Black’s Law registration is to quiet title to land; to put a stop
Dictionary]; those systems of registration of forever to any question of the legality of the
transactions with interest in land whose title, except claims which may arise
declared object is, under governmental subsequent thereto. [Agcaoili]
authority, to establish and certify to the
ownership of an absolute and indefeasible title It aims to decree land titles that shall be final,
to realty, and to simplify its transfer. [Grey Alba irrevocable and indisputable [Government of
v. De la Cruz, G.R. No. L-5246 (1910)] the Philippine Islands v. Abural, GR No. 14167
(1919), and to relieve the land of the burden of
Background known as well as unknown claims. [SM Prime
The Torrens system was devised in 1857 by Holdings, Inc. v. Madayag]
Mr. Torrens, a layman in South Australia. In the
Torrens system, title by registration takes the General Rule: A title once registered cannot be
place of "title by deeds" of the system under the impugned, altered, changed, modified,
"general" law. A sale of land, for example, is enlarged, or diminished.
effected by a registered transfer, upon which a
certificate of title is issued. The certificate is Exception: Direct proceeding permitted by law,
guaranteed by statute, and, with certain usually for the protection of innocent third
exceptions, constitutes indefeasible title to the persons
land mentioned therein. The object of the
Torrens system is to do away with the delay,
uncertainty, and expense of the old
conveyancing system which relied on the
correctness of a long series of prior deeds,
Page 418 of 532

presentor of such denial in writing, stating

b. Administration of the the ground or reason therefore, and
Torrens System advising him of his right to appeal by
consulta in accordance with Sec. 117 of PD
1529.
1. Land Registration Authority
4. Prepare and keep an index system which
contains the names of all registered
Agency under the executive supervision of the
owners and lands registered.
DOJ charged with the efficient execution of
the laws relative to the registration of lands
The function of the ROD with reference to
registration of deeds, encumbrances,
Composition:
instruments, and the like is ministerial in
1. Administrator
nature, provided the applicant complies with all
2. 2 Deputy Administrators (as assistants)
the requisites. [Baranda v. Gustilo, G.R. No.
81163 (1988)]
Functions of LRA
1. Extend speedy and effective assistance
Note: When the ROD is in doubt as to the
to the Department of Agrarian Reform,
proper action to take on an instrument or deed
the Land Bank, and other agencies in
presented to him for registration, he should
the implementation of land reform
program of the government submit the question to the Administrator of the
LRA en consulta [P.D. 1529, Sec 117]
2. Extend assistance to courts in ordinary
and cadastral land registration
proceedings; and 2. Certificate of Title
3. Be the central repository of records
relative to original registration of lands The Torrens Title
titled under the Torrens system, Certificate of ownership issued by the Register
including the subdivision and of Deeds naming and declaring the owner of
consolidation plans of titled lands. the real property described therein free from
all liens and encumbrances, except such as
2. Register of Deeds may be expressly noted thereon or otherwise
reserved by law.
Public repository of records of instruments
affecting registered or unregistered lands and a. Original Certificate of Title (OCT) – It is
chattel mortgages in the province or city the first certificate of title issued in the
wherein such office is situated. name of the registered owner by the
Register of Deeds covering a parcel of land
Composition: which had been registered under the
1. Register of Deeds Torrens System, by virtue of judicial or
2. Deputy (as assistant) administrative proceedings
Functions of Registers of Deeds: b. Transfer Certificate of Title (TCT) – The

1. Immediately register an instrument subsequent certificate of title pursuant to
presented for registration dealing with real any deed of transfer or conveyance to
or personal property which complies with another person. The Register of Deeds
the requisites for registration; shall make a new certificate of title and give
2. Shall see to it that said instrument bears the registrant an owner’s duplicate
the proper documentary stamps and that certificate. The previous certificate shall be
the same are properly cancelled; stamped “cancelled.”
3. If the instrument is not registerable, he shall
deny the registration thereof and inform the c. Patents – Whenever public land is by the
Government alienated, granted or
Page 419 of 532

conveyed to any person, the same shall be to the decree of registration. By the
brought forthwith under the operation of issuance of the decree, the land is
this Decree [PD 1529, Sec. 103, par. 1] bound and title thereto quieted, subject
1. Patents only involve public lands only to certain exceptions under the
which are alienated by the property registration decree. [Heirs of
Government pursuant to the Public Alejandra Delfin, namely, Leopoldo
Land Act [CA 141, as amended] Delfin, et al. v. Avelina Rabadon, G.R.
2. The patent (even if denominated as No. 165014 (2013)]
a deed of conveyance) is not really 2. Exceptions:
a conveyance but a contract • Those claims noted on the
between the grantee and the certificate
Government and evidence of • Liens, claims, or rights arising or
authority to the Register of Deeds existing under the laws and the
to make registration. Constitution, which are not by law
3. The act of registration is the required to appear on record in the
operative act to affect and convey Register in order to be valid
the land. • Unpaid real estate taxes levied and
assessed within 2 years
Probative Value immediately preceding the
A Torrens Certificate of Title is valid and acquisition of any right over the
enforceable against the whole world. It may land by an innocent purchaser for
be received in evidence in all courts of the value
Philippines, and shall be conclusive as to all
matters contained therein, principally the Title to the land becomes non-prescriptible:
identity of the owner of the covered land 1. Even adverse, notorious, and continuous
thereby and identity of the land. possession under claim of ownership for
the period fixed by law is ineffective against
A Torrens title, once registered, cannot be a Torrens title [JM Tuason and Co. Inc. v.
defeated, even by adverse, open and CA, G.R. No. L-41233 (1979)]
notorious possession. A registered title 2. The fact that the title to the land was lost
under the Torrens system cannot be defeated does not mean that the land ceased to be
by prescription. The title, once registered, is registered land before the reconstitution of
notice to the whole world. All persons must take its title. It cannot perforce be acquired by
notice. No one can plead ignorance of the prescription. [Ruiz v. CA, 1977]
registration. [Egao v. CA, G.R. No. L-79787
(1989)] Land becomes incontrovertible and
indefeasible. A decree of registration and
a. Effect of Registration under the registered title cannot be impugned, enlarged,
Torrens System altered, modified, or diminished either in
collateral or direct proceeding after the lapse of
Land is placed under the operation of the the 1-year period prescribed by the law.
Torrens system
Exceptions:
Claims and liens of whatever character existing 1. If previous valid title of the same land exists
against the land prior to the issuance of the 2. When the land covered is not capable of
certificate of title are cut off by such certificate registration
and the certificate so issued binds the whole 3. When acquisition of certificate is attended
world, including the government by fraud
1. It is an elemental rule that a decree of
registration bars all claims and rights Torrens certificate is presumed valid and
which arose or may have existed prior devoid of flaws.
Page 420 of 532

presented for registration in the office of the

Note: Registration is not equivalent to legal Register of Deeds. [Peña]
title. Under the Torrens system, registration
only gives validity to the transaction or creates Laches, When Applicable
a lien upon the land. It merely confirms, but Laches sets in if it would take 18 years for a
does not confer, ownership [Lu v. Manipon, person to file an action to annul the land
G.R. No. 147072 (2002)] registration proceedings, especially so if the
registrant has already subdivided the land and
Effect of Non-Registration sold the same to innocent third parties. A
If a purchaser, mortgagee or grantee should party’s long inaction or passivity in asserting
fail to register his deed the conveyance, his rights over disputed property precludes him
considering our existing registration laws, it from recovering the same. [Heirs of Teodoro
shall not be valid against any person unless dela Cruz v. CA, G.R. No. 1117384 (1998);
registered. Aurora Ignacio v. Valeriano Basilio, et al., G.R.
No. 122824 (2001)]
Exceptions:
a. The grantor, B. AGRARIAN TITLES AND
b. His heirs and devisees, and ANCESTRAL LANDS AND
c. Third persons having actual notice or
DOMAINS
knowledge thereof.
Concept of the Regalian Doctrine
It is a settled rule that lands under a Torrens
A western legal concept that was first
title cannot be acquired by prescription or
introduced by the Spaniards into the country
adverse possession. Section 47 of P.D. No.
through the laws of the Indies and the Royal
1529, the Property Registration Decree,
Cedulas whereby the Philippines passed to
expressly provides that no title to registered
Spain by virtue of “discovery” and conquest.
land in derogation of the title of the registered
Consequently, all lands became the exclusive
owner shall be acquired by prescription or
patrimony and dominion of the Spanish Crown.
adverse possession. [Dream Village
[Agcaoili]
Neighborhood Association, Inc., represented
by its Incumbent President Greg Seriego v.
The present Constitution provides that, except
Bases Conversion Development Authority,
for agricultural lands of the public domain
G.R. No.192896 (2013)]
which alone may be alienated, forest or
timber, and mineral lands, as well as all
Dealings in Land before Issuance of Decree
other natural resources must remain with
With the filing of an application for registration,
the State, the exploration, development, and
the land described therein does not cease to
utilization of which shall be subject to its full
become open to any lawful transaction. If the
control and supervision albeit allowing it to
transaction takes place before the issuance of
enter into co-production, joint venture, or
the decree of registration, Section 22 of PD
production-sharing agreements, or into
1529 provides that the instrument is to be
agreements with foreign-owned corporations
presented to the RTC, together with a motion
involving technical or financial assistance for
praying that the same be considered in relation
large-scale exploration, development, and
with the pending application.
utilization. [Secs. 2 and 3, Art. XII; La Bugal-
B’laan Tribal Association, Inc. v. Ramos, G.R.
However, if the motion is filed after the decision
No. 127882 (2004)]
of adjudication has become final but before the
issuance of the decree by the Administrator of
The Regalian Doctrine is enshrined in the 1987
Land Registration Authority, the court shall
Constitution [Art 12, Sec 2 & 3] which states
require the interested party to pay the fees
that all lands of public domain belong to the
prescribed as if such instrument had been
Page 421 of 532

State, thus private title to land must be

traced to some grant, express or implied, 1. Concept and Registration of
from the State, i.e. The Spanish Crown or its
successors, the American Colonial Agrarian Titles
government and thereafter the Philippine
Republic Agrarian lands
Agrarian lands, otherwise called agricultural
It does not negate native title to lands held in lands refer to land devoted to agricultural
private ownership since time immemorial. activity as defined in RA 6657 and not
[Cruz v. Sec. of Environment and Natural classified as mineral, forest, residential,
Resources, G.R. No. 135385 (2000)] commercial or industrial land.
Native title recognizes ownership of land by Agricultural activity

Filipinos independent of any grant from the Refers to the cultivation of the soil, planting of
Spanish crown on the basis of possession crops, growing of fruit trees, raising of
since time immemorial [cf: Cariño v. Insular livestock, poultry or fish, including the
Government, G.R. No. 2869 (1907)]. Lands harvesting of such farm products, and other
embraced by native title are presumed to have farm activities and practices performed by a
been held prior to the Spanish conquest and farmer in conjunction with such farming
never to have been public land. operations done by person whether natural or
juridical.
Effects of the Regalian Doctrine
a. All lands of public domain belong to the Agrarian reform
State, and that the State is the source of Agrarian reform is defined as the redistribution
any asserted right to ownership in land and of lands, regardless of crops or fruits
charged with the conservation of such produced, to farmers and regular farmworkers
patrimony [Republic v. IAC, G.R. No. who are landless, irrespective of tenurial
71285 (1987)] arrangement, to include the totality of factors
b. Under the Regalian doctrine, all lands of and support services designed to lift the
whatever classification and other natural economic status of the beneficiaries and all
resources not otherwise appearing to be other arrangements alternative to the physical
clearly within private ownership are redistribution of lands, such as production or
presumed to belong to the State which is profit-sharing, labor administration, and the
the source of any asserted right to distribution of shares of stocks, which will
ownership of land. [Repubic v. Remnan allow beneficiaries to receive a just share of
Enterprises, Inc. G.R. No. 199310 (2014)] the fruits of the lands they work.
c. The burden of proof in overcoming the
presumption of State ownership of the The 1987 Constitution; Section 4, Article XIII
lands of the public domain is on the Provides that The State shall:
person applying for registration (or 1. Undertake an agrarian reform program
claiming ownership), who must prove that founded on the right of landless farmers to
the land subject of the application is own directly or collectively the lands they till
alienable or disposable. To overcome this and regular farmworkers to receive a just
presumption, incontrovertible evidence share of the fruits thereof.
must be established that the land subject of 2. Encourage and undertake the just
application (or claim) is alienable or distribution of all agricultural lands, subject
disposable. [Valiao v. Republic, G.R. No. to such priorities and reasonable retention
170757 (2011)] limits prescribed by the Congress, taking
into account ecological, developmental, or
equity considerations, and subject to the
payment of just compensation. In
Page 422 of 532

determining retention limits, the State shall 1. All alienable and disposable lands of
respect the right of small land-owners. the public domain devoted to or
3. Provide incentives for voluntary land- suitable for agriculture;
sharing 2. All lands of the public domain in excess
of the specific limits as determined by
P.D. 27, or The Tenant Emancipation Congress in the preceding paragraph;
Doctrine 3. All other lands owned by the
Provides for the emancipation of farmers of Government devoted to or suitable for
private agricultural lands primarily devoted to agriculture;
rice and corn under a system of sharecrop or 4. All private lands devoted to or suitable
lease-tenancy, whether classified as landed for agriculture regardless of the
estate or not. agricultural products raised or that can
be raised thereon.
The tenant farmer shall be deemed owner of a
portion constituting a family-size farm of five (5) Exemptions and exclusions
hectares if not irrigated and three (3) hectares 1. Lands actually, directly and exclusively
if irrigated. The landowner may retain an area used for parks, wildlife, forest reserves,
of not more than seven (7) hectares if such reforestation, fish sanctuaries and
landowner is cultivating such area or will now breeding grounds, watersheds and
cultivate it. mangroves;
2. Private lands actually, directly and
The value of the land shall be equivalent to two exclusively used for prawn farms and
and one-half (2 1/2) times the average harvest fishponds;
of three normal crop years immediately 3. Lands actually, directly and exclusively
preceding the promulgation of the Decree. used and found to be necessary for:
a. national defense, school sites and
The total cost of the land, including interest at campuses;
the rate of six (6) per centum per annum, shall b. church sites and convents
be paid by the tenant in fifteen (15) years of appurtenant thereto, mosque sites
fifteen (15) equal annual amortizations. and Islamic centers appurtenant
thereto, communal burial grounds
In case of default, the amortizations due shall and cemeteries;
be paid by the farmers’ cooperative in which
the defaulting tenant farmer is a member, with Valuation and mode of compensation
the cooperative having a right of recourse The LBP shall compensate the landowner in
against him; The government shall guaranty such amounts as may be agreed upon by the
such amortizations with shares of stock in landowner and the DAR and the LBP.
government-owned and government-
controlled corporations. In determining just compensation, the cost of
acquisition of the land, the current value of the
No title to the land owned by the tenant-farmers like properties, its nature, actual use and
under this Decree shall be actually issued to a income, the sworn valuation by the owner, the
tenant farmer unless and until the tenant- tax declarations, and the assessment made by
farmer has become a full-fledged member of a government assessors shall be considered.
duly recognized farmer’s cooperative. The social and economic benefits contributed
by the farmers and the farmworkers and by the
R.A. 6657 OR THE COMPREHENSIVE Government to the property as well as the non-
AGRARIAN REFORM LAW OF 1988 payment of taxes or loans secured from any
government financing institution on the said
Scope land shall be considered as additional factors
to determine its valuation.
Page 423 of 532

Registration of Agrarian Lands Ancestral lands

Under PD No. 27, beneficiaries are issued Refers to land occupied, possessed and
certificates of land transfer (CLTs) to entitle utilized by individuals, families and clans who
them to possess lands. Thereafter, they are are members of the ICCs/IPs since time
issued emancipation patents (EPs) after immemorial, by themselves or through their
compliance with all necessary conditions. Such predecessors-in-interest.
EPs, upon their presentation to the Register of
Deeds, shall be the basis for the issuance of Ancestral domains
the corresponding transfer certificates of title Refer to all areas generally belonging to
(TCTs) in favor of the corresponding ICCs/IPs comprising lands, inland waters,
beneficiaries. coastal areas, and natural resources therein,
held under a claim of ownership, occupied or
Under RA No. 6657, only certificates of land possessed by ICCs/IPs, by themselves or
ownership award (CLOAs) are issued, in lieu of through their ancestors, communally or
EPs, after compliance with all prerequisites. individually since time immemorial,
Thereafter, upon presentation of the CLOAs to continuously to the present except when
the Register of Deeds, TCTs are issued to the interrupted by war, force majeure or
designated beneficiaries. CLTs are no longer displacement by force, deceit, stealth or as a
issued. consequence of government projects or any
other voluntary dealings entered into by
The issuance of EPs or CLOAs to beneficiaries government and private
does not absolutely bar the landowner from individuals/corporations, and which are
retaining the area covered thereby. necessary to ensure their economic, social and
cultural welfare.
Under AO No. 2, series of 1994, an EP or
CLOA may be cancelled if the land covered is It shall include ancestral lands, forests,
later found to be part of the landowner’s pasture, residential, agricultural, and other
retained area. [Agcaoili] lands individually owned whether alienable and
disposable or otherwise, hunting grounds,
2. Concept and Registration of burial grounds, worship areas, bodies of water,
mineral and other natural resources, and lands
Ancestral Lands and Domains which may no longer be exclusively occupied
by ICCs/IPs but from which they traditionally
A recognized exception to the theory of jura had access to for their subsistence and
regalia, the ruling in Cariño v. Insular traditional activities, particularly the home
Government (supra) institutionalized the ranges of ICCs/IPs who are still nomadic
recognition of the existence of native title to and/or shifting cultivators.
land, or ownership of land by Filipinos by virtue
of possession under a claim of ownership since Registration of Ancestral Lands
time immemorial and independent of any grant Two modes of acquiring Ancestral Lands
from the Spanish Crown [Agcaoili]. and Ancestral Domains:
1. By native title over both ancestral lands
Lands under native title are not part of public and domains; or
domain, “lands possessed by an occupant and 2. By Torrens title under the Property
his predecessors since time immemorial, such Registration Decree with respect to
possession would justify the presumption that ancestral lands only.
the land had never been part of the public
domain or that it had been private property
even before the Spanish conquest [Republic v.
CA, G.R. No. 130174 (2000)].
Page 424 of 532

Requisites for Registration of Ancestral hold title to private lands of public domain.
Lands: [Halili v. CA, G.R. No. 113539 (1998); Secs. 2
1. Applicant must be a member of the and 5, Art. XII, 1987 Constitution]
Indigenous ICCs/IPs
2. Possession of ancestral land must not Citizens of the Philippines may lease not more
be less than 30 years immediately than five hundred hectares, or acquire not
preceding the approval of IPRA on more than twelve hectares thereof, by
October 29, 1997 purchase, homestead, or grant. [Art. XII, Sec.
3. By operation of law, the land is already 3, 1987 Constitution]
classified as alienable and disposable
even with a slope of 18% or more. The Krivenko Doctrine
Hence, no need to submit a separate The capacity to acquire private land is made
certification that the land has been dependent upon the capacity to acquire or hold
classified as alienable and disposable. lands of public domain. Private land may be
(IPRA, Sec. 12.) transferred or conveyed only to individuals or
entities ‘qualified to acquire lands of public
Certificate of Ancestral Domain Title domain.’ [Bernas]
(CADT) refers to a title formally recognizing the
rights of possession and ownership of ICCs/IPs The 1935 Constitution reserved the right for
over their ancestral domains identified and Filipino citizens or corporations at least sixty
delineated in accordance with this law [Sec. percent of the capital of which was owned by
3(c), IPRA] Filipinos. Aliens, whether individuals or
corporations, have been disqualified from
Certificate of Ancestral Lands Title (CALT) acquiring public lands; hence they have also
refers to a title formally recognizing the rights been disqualified from acquiring private lands.
of ICCs/IPs over their ancestral lands. [Krivenko v. Register of Deeds, G.R. No. L-
630, 1947]
Individually-owned ancestral lands, which are
agricultural in character and actually used for Exceptions
agricultural, residential, pasture, and tree a. Aliens by way of hereditary succession
farming purposes, including those with a slope [Sec. 7, Art. XII, 1987 Constitution]
of eighteen percent (18%) or more, are hereby b. Natural born citizens who have lost their
classified as alienable and disposable citizenship:
agricultural lands [Sec. 12, IPRA]
For business use: limited to 5,000 sq. m. for
Native title, however, is a right of private urban land and 3 hectares for rural land. In the
ownership particularly granted to ICCs/IPs over case of married couples, the total area
their ancestral lands and domains. The IPRA acquired by both of them shall not exceed the
categorically declares ancestral lands and maximum [RA No. 7042 as amended by RA
domains held by native title as never to have No. 8179]
been public land. [Cruz v. Sec. of Environment
and Natural Resources, supra] For residential purposes: limited to 1,000 sq m.
for urban land and 1 hectare for rural land. [BP
185, Sec. 2]
C. CITIZENSHIP
REQUIREMENT For married couples in either case: one of them
may avail of the privilege granted. If both shall
1. Individuals avail of the same, the total area acquired by
both of them shall not exceed the maximum
specified above.
General Rule: Only Filipinos can acquire or
Page 425 of 532

But where a Filipino citizen naturalized as a 2. Corporations

citizen in a foreign country has “reacquired” his
Philippine citizenship under the terms of RA General Rule: Private corporations may not
9225 (2003) otherwise known as the hold alienable lands of the public domain. [Sec.
“Citizenship Retention and Re-acquisition Act 3, Art. XII, 1987 Constitution]
of 2003,” the area limitations may no longer
apply since the law expressly grants him the Exceptions
same right, as any Filipino citizen, to “enjoy full a. By lease for a period not exceeding twenty-
civil and political rights” upon the re-acquisition five years, renewable for not more than
of his Filipino citizenship [Agcaoili]. twenty-five years and not to exceed one
thousand hectares in area. [Sec. 3, Art. XII,
c. Aliens, although disqualified to acquire 1987 Constitution]
lands of public domain, may lease private
land provided that such lease does not b. If the predecessors-in-interest of the
amount to a virtual transfer of ownership. corporation have been in possession of the
They may also be given an option to buy land in question since June12,1945 or
property on the condition that he is granted earlier, then it may rightfully apply
Philippine citizenship. [Llantino v. Co liong confirmation of title to the land. The vested
Chong, G.R. No. L-29663 (1990)] right has to be respected. [Republic v.
Intermediate Appellate Court and Acme,
d. Lands acquired by an American citizen G.R. L-73002 (1986)]
prior the proclamation of Philippine
Independence on July 4, 1946 but after the Limitations to Ownership of Land by
passage of the 1935 Constitution may be Corporations
registered, based on the ordinance
appended to the 1935 Constitution. [Moss a. For private lands:
v. Director of Lands, G.R. No. L-27170 1. At least 60% Filipino [Sec. 2, Art. XII,
(1977)] 1987 Constitution [Agcaoili]
2. Restricted as to extent reasonably
e. Land sold to an alien which is now in the necessary to enable it to carry out the
hands of a naturalized citizen can no longer purpose for which it was created
be annulled [De Castro v. Tan, GR No. L- 3. If engaged in agriculture, it is restricted
31956]. The litigated property is now in the to 1,024 hectares
hands of a naturalized Filipino. It is no
longer owned by a disqualified vendee. b. For patrimonial property of the State [Sec.
The purpose of the prohibition ceases to be 3, Art. XII, 1987 Constitution]
applicable. [Barsobia v. Cuenco, G.R. No. 1. Lease only for a limited period of 25
L-33048 (1982)] years
2. Limited to 1,000 hectares
f. Aliens may acquire condominium units and 3. Applies to both Filipino and Foreign
shares in condominium corporations up to corporations
no more than 40% of the total and 4. This limitation does not apply where
outstanding capital stock of a Filipino- the corporation acquired the land, the
owned or controlled corporation. [RA 4726, same was already private land
The Condominium Act, Sec. 5] [Republic v. IAC and Acme Plywood &
Veneer co., Inc., G.R. No. 73002
Under such circumstances, the ownership of (1986)]
the land is legally separated from the unit itself,
therefore the proscription against aliens A Corporation Sole may acquire and register
owning real property does not apply. [Hurst v. private agricultural land. It has no nationality,
PR Builders, Inc., G.R. No. 156364 (2008)] thus the constitutional proscription against
Page 426 of 532

private corporations acquiring public Office of the Register

agricultural lands will not apply. [RC Apostolic of Deeds concerned
Administrator of Davao v. LRC, G.R. No. L-
8415 (1957)] A corporation sole, which a. Voluntary – by filing with the proper court
consists of one person only, is vested with the under:
right to purchase and hold real estate and 1. PD 1529, Property Registration Decree
register the same in trust for the faithful or 2. CA 141, Public Land Act
members of the religious society or church for 3. RA 8371, IPRA
which the corporation was organized.
b. Involuntary – as in Cadastral Proceedings
A Religious Association Controlled by Non- ● This is compulsory registration
Filipinos is not excepted by the Constitutional initiated by the government to
provisions. To permit them to acquire adjudicate ownership of the land
agricultural lands would be to drive the opening ● Involuntary on the part of the
wedge to revive alien religious land-holdings in claimant but they are compelled to
the country. [Agcaoili] substantiate their claim or interest
D. ORIGINAL 1. Who May Apply

REGISTRATION a. Under Sec. 14, PD 1529:
1. Those who by themselves or through
ORIGINAL REGISTRATION their predecessors-in-interest, have
This is a proceeding brought before the land been in open, continuous, exclusive
registration court to determine title or and notorious possession and
ownership of land on the basis of an occupation of alienable and disposable
application for registration or answer by a lands of the public domain under a
claimant in a cadastral registration. bona fide claim of ownership since
June 12, 1945, or earlier.
A decree of registration merely confirms, but 2. Those who have acquired ownership of
does not confer ownership. [City Mayor of private lands by prescription under the
Parañaque City v. Ebio, G.R. No. 178411, provisions of existing laws.
(2010)] Registration does not vest title or give 3. Those who have acquired ownership of
title to the land, but merely confirms and private lands or abandoned river beds
thereafter protects the title already by right or accession or accretion under
possessed by the owner, making it the existing laws.
imprescriptible by occupation of third parties. 4. Those who have acquired ownership of
The registration does not give the owner any land in any other manner provided for
better title than he has. He does not obtain title by law [see: Republic represented by
by virtue of the certificate. He secures his Mindanao Medical Center v CA, G.R.
certificate by virtue of the fact that he has a fee No. 40912 (1976)]
simple title. [Legarda v. Saleeby, supra] ● Land owned in common: ALL co-
owners shall file the application
Original Distinguished From Subsequent jointly.
Original Subsequent ● Land has been sold under pacto de
Registration Registration retro: the vendor a retro may file an
When right of Any transaction application for the original
ownership or title to affecting such registration of the land, provided,
land is for the first originally registered however, that should the period for
time made of public land, if in order, may redemption expire during the
record be registered in the pendency of the registration
Page 427 of 532

proceedings and ownership to the d. Under RA 8371:

property consolidated in the 1. Sec. 11 – Formal recognition of
vendee a retro, the latter shall be ancestral domains by virtue of Native
substituted for the applicant and Title may be solicited by ICCs/IPs
may continue the proceedings. concerned
● Land subject of a trust agreement: 2. Sec. 12 – Option to secure certificate of
A trustee on behalf of his principal title under CA 141 or Land Registration
may apply for original registration Act 496
of any land held in trust by him, ● Individual members of cultural
unless prohibited by the instrument communities with respect to
creating the trust. individually-owned ancestral lands
who, by themselves or through
b. Under Sec. 16, PD 1529; Land Applied for their predecessors-in -interest,
Registration by a Non-Resident of the have been in continuous
Philippines: possession and occupation of the
same in the concept of owner since
He shall file his application: time immemorial or for a period of
1. An instrument in due form; not less than thirty (30) years
2. Appointing a duly authorized immediately preceding the
representative or attorney-in-fact, approval of this Act and
whose authority shall accompany the uncontested by the members of the
application; same ICCs/IPs shall have the
3. Giving his full name and postal option to secure title to their
address; and ancestral lands
4. Shall therein agree that the service of ● Option granted shall be exercised
any legal process in the proceedings within 20 years from the approval of
under or growing out of the application RA 8371
made upon his agent or representative
shall be of the same legal effect as if JURISDICTION
made upon the applicant within the
Philippines. Where to File: The court that should take
cognizance of a registration case is that which
c. Under Sec. 12, CA 141; Any person who: has territorial jurisdiction over the property.
1. Is a citizen of the Philippines over the
age of 18, or the head of a family; General Rule: RTC of the province, city, or
2. Does not own more than 24 hectares of municipality where the property is situated.
land in the Philippines, or has not had
the benefit of any gratuitous allotment The RTC shall have exclusive jurisdiction over
of more than 24 hectares of land since all applications original for registration of title,
the occupation of the Philippines by the with power to hear and determine all questions
United States arising upon such applications or petition. [Sec.
2, par. 2, P.D. No. 1529]
Note: they may enter a homestead of
not exceeding 24 hectares of Exception: Delegated jurisdiction to the MTC,
agricultural land of the public domain MeTC, and MCTC by the Supreme Court in
cadastral and land registration cases if:
a. There is no controversy over the land,
OR
b. Its value is less than P100,000 [Sec.
34, BP 129]
Page 428 of 532

2. Registration Process and 6. Whether or not there are Mortgages or

encumbrances of any kind affecting the
Requirements land;
7. The manner by which the applicant has
STEP 1: Survey acquired the land in accordance with
Survey of the land by the Bureau of Lands or a Sec. 14, P.D. 1529
duly registered private surveyor drawn on a 8. Original muniments of title, and
tracing cloth plan. 9. If the land is bounded by a public or
private way or road [Sec. 15, PD 1529]
Note: No plan of such survey, whether it be
original or subdivision, may be admitted in land c. Documents to accompany the application
registration proceedings until approved by the [from Regulations in Ordinary Land
Director of Lands [Sec. 1858, Administrative Registration Cases]
Code] 1. Tracing-cloth plan duly approved by
the Director of Lands, together with two
STEP 2: Filing of Application blueprint or photographic copies
Filing for application for registration by the thereof;
applicant at the RTC of the province, city, or 2. Three copies of the corresponding
municipality where the property is located [Sec. technical descriptions;
17, PD 1529] 3. Three copies of the surveyor’s
certificate;
a. Form of the application 4. All original muniments of title in the
1. In writing possession of the applicant which
2. Signed by the applicant/s or person prove his rights, to the title he prays for
duly authorized in his behalf or to the land he claims; and
3. Sworn before any officer authorized to 5. Certificate in quadruplicate of the city
administer oath for the province or city or provincial treasurer of the assessed
where the application was actually value of the land, at its last assessment
signed for taxation, or, in the absence thereof,
4. Application is presented in duplicate that of the next preceding year.
However, in case the land has not been
b. Contents of the application: assessed, the application may be
1. Full description of the land as accompanied with an affidavit in
evidenced by the survey plan; quadruplicate of the fair market value
2. The citizenship and civil status of the of the land, signed by three
applicant, whether single or married, disinterested persons.
and, if married, the name of the wife or
husband, and, if the marriage has been d. Land Registration Application Covering
legally dissolved, when and how the Two or More Parcels: An application may
marriage relation terminated. include two or more parcels of land
3. The full names and addresses of all belonging to the applicant/s provided that
occupants of the land and those of the they are situated within the same province
adjoining owners, if known, and, if not or city. The Court may at any time order an
known, it shall state the extent of the application to be amended by striking out
search to find them. one or more parcels or by a severance of
4. Whether the property is conjugal, the application. [Sec. 18, PD 1529]
paraphernal, or exclusively owned by
the applicant. e. Amendments to the Application
5. Assessed value of the land and the 1. Sec. 19, PD 1529 permits the
buildings and improvements thereon; applicants to amend the application
including joinder, substitution, or
Page 429 of 532

discontinuance as to parties at any 4. In re: Application for Land Registration

stage of the proceedings upon such v. Republic [G.R. No. 147359 (2008)]
just and reasonable terms as the court An applicant in a land registration case
may order: must prove the facts and
● Joinder – inclusion of additional circumstances evidencing the alleged
applicants; amended by adding ownership of the land applied for.
names of new applicants; General statements which are mere
● Substitution – replacement of the conclusions of law and not factual proof
original party by another of possession are unavailing. The
● Discontinuance – removal of deeds in its favor only proved
names of one or more applicants possession of its predecessors-in-
2. However, substantial amendments interest as early as 1948. (The law now
shall be subject to the same stands that a mere showing of
requirements of publication and notice possession for 30 years is not
as in an original application under Sec. sufficient. Open, continuous,
23 of PD 1529. Such substantial exclusive, and notorious (OCEN)
amendments include: possession must be shown to have
● A change in the boundaries started on June 12, 1945 or earlier.)
● An increase in the area of the land
applied for; or STEP 3: Setting of the date for the initial
● The inclusion of an additional land hearing of the application by the Court
3. Only where the original survey plan is a. The Court shall issue an order setting the
amended during the registration date and hour of the initial hearing within 5
proceedings, by the addition of land not days from filing of the application
previous included in the original plan, b. The initial hearing shall be 45 – 90 days
should publication be made in order to from the date of the order [Sec. 23, PD
confer jurisdiction on the court to order 1529]
the registration of the area added after ● If the date of the initial hearing was set
the publication of the original plan. If beyond the 90-day period, the Court will
the amendment involves a reduction in still acquire jurisdiction where the applicant
the original area, no new publication is has complied with all the requirements of
required. [Republic v. Court of Appeals the law. [Republic v. San Lorenzo Dev’t,
and Ribaya G.R. No. 113549 (1996)] G.R. No. 170724 (2007)]
f. Special Cases: STEP 4: Transmittal to the LRA

1. If the land is bounded by a road, the The application and the date of initial hearing
applicant must state in his application if together with all the documents or other
he claims any portion of the land within evidences attached thereto are transmitted by
the limits of the road, or if he likes to the Clerk of Court to the Land Registration
have the boundaries determined. [Sec. Authority (LRA).
20, PD 1529]
2. If the applicant is a non-resident, he STEP 5: Publication of a Notice of the Filing
shall appoint an agent or of the Application and date and place of
representative who is a Philippine hearing
resident. [Sec. 16, PD 1529] a. Publication shall be sufficient to confer
3. Intestate Estate of Don Mariano San jurisdiction upon the court. [Sec. 23, PD
Pedro v. CA G.R. No. 130727 (1996)]: 1529]
A person claiming ownership of real
property must clearly identify the land b. It is done to charge the whole world of
claimed by him. knowledge of the application of the land
involved, and invite them to take part in the
Page 430 of 532

case and assent and prove their rights over

the subject property thereof. [Agcaoili] a. Mailing:
1. Within 7 days from publication, the
c. Form and contents of the notice: CLR shall mail a copy of the notice
1. Addressed to all persons appearing to 2. Copies of the notice shall be mailed
have an interest in the land involved to:
2. Requires all persons concerned to ● Every person named in the notice
appear in court on the date and time whose address is known.
indicated to show cause why the ● the Secretary of Public Highways,
application for registration should not to the Provincial Governor, and to
be granted the Mayor of the municipality or
city, in which the land lies, if the
d. The public shall be given notice of the initial applicant requests to have the line
hearing of the application by publication of a public way or road determined
1. The Commissioner of Land ● Secretary of Agrarian Reform, the
Registration (CLR) shall cause it to be Solicitor General, the Director of
published once in the Official gazette Lands, the Director of Mines and/or
AND once in a newspaper of general the Director of Fisheries and
circulation Aquatic Resources, (as
2. This is sufficient to confer jurisdiction to appropriate) if the land borders on
the court a river, navigable stream or shore,
or on an arm of the sea where a
e. It is not necessary to give personal notice river or harbor line has been
to the owners or claimants of the land established, or on a lake, or if it
sought to be registered to vest the court otherwise appears from the
with authority over the res. Land application or the proceedings that
registration proceedings are actions in rem. a tenant-farmer or the national
[Director of Lands v. CA, G.R. No. 102858 government may have a claim
(1997)] adverse to that of the applicant
f. Once the registration court had acquired b. Posting:

jurisdiction over a certain parcel, or 1. CLR shall cause the sheriff or his
parcels, of land in the registration deputy to post the notice at least 14
proceedings in virtue of the publication of days before the hearing:
the application, that jurisdiction attaches to 2. In a conspicuous place on each parcel
the land or lands mentioned and described of land included in the application and
in the application. If it is later shown that the in a conspicuous place on the bulletin
decree of registration had included land or board of the municipal building of the
lands not included in the original municipality or city in which the land or
application as published, then the portion thereof is situated.
registration proceedings and the decree of 3. The court may also cause notice to be
registration must be declared null and void served to such other persons and in
insofar — but only insofar — as the land not such manner as it may deem proper.
included in the publication is concerned.
[Benin v. Tuason, G.R. No. L-26127 c. Notice of application and initial hearing by
(1974)] publication is sufficient and the mere fact
that a person purporting to have a
STEP 6: Service of Notice legitimate claim in the property did not
Service of notice upon contiguous owners, receive personal notice is not a sufficient
occupants and those known to have interest in ground to invalidate the proceedings
the property by the Sheriff; although he may ask for the review of the
Page 431 of 532

judgment or the reopening of the decree of the applicant, no reason to the contrary
registration, if he was made the victim of appearing, order a general default to be
actual fraud. [Republic v. Abadilla, CA, recorded and require the applicant to present
G.R. No. 6902-R (1951)] evidence. By the description in the notice “To
all Whom It May Concern,” all the world are
STEP 7: Answer made parties defendant and shall be
Filing of answer or opposition to the application concluded by the default order.
by any person whether named in the notice or
not; Where an appearance has been entered and
an answer filed, a special default order shall be
a. Who may file? Any person claiming an entered against persons who did not appear
interest, whether named in the notice or and answer. [Sec. 26, PD 1529]
not.
g. Effects of Default:
b. When to file? On or before the date of 1. With respect to the Applicant – he
initial hearing, or within such further time as has the right to present or adduce
may be allowed by the court. evidence ex parte
2. With respect to those covered by
c. What shall it contain? It shall state all the the default order – they have no
objections and the interest claimed by the legal standing in court; therefore,
party the remedy desired. they are no longer allowed to
participate and no opportunity to
d. How shall it be made? It shall be signed present evidence
and sworn to by him or by some other duly
authorized person. Sec. 25, PD 1529 h. For relief from an order of default, see Sec.
provides for the requisites of an opposition: 3, Rule 18, Rules of Court.
1. It shall set forth “all the objections to the
application” and STEP 8: Hearing of the case by the court
2. It shall state the “interest claimed by the a. Proof necessary in land registration
party filing the same” 1. Proof that land has been declassified
from the forest zone, is alienable or
e. Effect of Failure to Answer: disposable, and is registrable (e.g.
1. If no one appears/files an answer, upon Presidential proclamation, legislative
motion, the court shall order a default acts.
to be recorded. 2. Identity of the land (survey plan)
2. By the description in the notice "To all 3. Possession and occupation of the land
Whom It May Concern", all the world for the length of time and in the manner
are made parties defendant and shall required by law. [Sec. 4, PD 1073
be concluded by the default order. amending Sec. 48(b) and (c) of the
3. Where an appearance has been Public Land Act]
entered and an answer filed, a default 4. If he claims private ownership not
order shall be entered against persons because of his possession, he must
who did not appear and answer. prove the basis of such claim by
4. Absence of opposition does not justify submitting muniments of title.
outright registration. [Director of Lands
vs. Agustin, G.R. No. L-16173 (1921)] b. Proving Private Ownership
1. Spanish titles are inadmissible and
f. Order of Default: ineffective proof of ownership in
land registration proceedings filed
If no person appears and answers within the AFTER Aug. 16, 1976 [PD 892 as
time allowed, the court shall, upon motion of
Page 432 of 532

discussed in Santiago v. SBMA, d. Refer back or recommit the

G.R. No. 156888, (2006)] case to the referee for
2. Tax declaration and receipts are presentation of evidence
not conclusive but have strong ● According to Heirs of Mario
probative value when Malabanan v. Republic [G.R. No.
accompanied by proof of actual 179987 (2014)], the following
possession. [Municipality of matters must be established:
Santiago v. CA, G.R. No. L-49903 a. Issue of ownership;
(1983)] b. Possession and
3. Other proofs such as testimonial occupation of the land;
evidence c. Identity and description
of the land;
c. Applicable procedural law: d. That the land is
1. Reception of evidence is governed by alienable and
PD 1529 disposable of the public
2. Rules of Court shall, insofar as not domain; and
inconsistent with the provisions of the e. The applicant has
Decree, be applicable to land acquired the land
registration and cadastral cases by through any other
analogy or in a suppletory character modes of acquiring
and whenever practicable and ownership
convenient [Sec. 34, PD 1529]
3. Sec. 27, PD 1529: The trial court shall STEP 9: Promulgation of Judgment by the
see to it that all registration Court
proceedings are disposed within ninety a. This is the adjudication, determination, and
days from the date the case is resolution of the issue of ownership
submitted for decision. The Court may
either: b. Forms of Judgment:
1) Hear the parties and their 1. Dismissal of the application
evidence, or ● With prejudice – principle of res
2) Refer the case or any part judicata applies and the party can
thereof to a referee no longer re-file the case
● Referee shall hear the parties, ● Without prejudice – the party may
receive their evidence, and refile the case
submit his report thereon to the 2. Partial Judgment – in a case where
Court within 15 days after only a portion of the land subject of
termination of such hearing registration is contested, the court may
● Hearing before a referee may be render partial judgment provided that a
held at any convenient place subdivision plan showing the contested
within the province or city as may and uncontested portions approved by
be fixed by him and after the Director of Land is previously
reasonable notice thereof shall submitted to said court. [Sec. 28, PD
have been served to the parties 1529]
concerned 3. Judgment Confirming Title -
● Upon receipt of the report the Judgment may be rendered confirming
Court may: the title of the applicant, or the
a. Adopt the same oppositor as the case may be, to the
b. Set aside the report land or portions thereof upon finding
c. Modify the report that the party concerned has sufficient
title proper for registration. [Sec. 29,
PD 1529]
Page 433 of 532

c. Finality of Judgment - Sec. 30, par. 1, PD a. Decree is entered in the LRA

1529 provides that the judgment becomes b. Every decree of registration shall:
final upon the expiration of 30 days 1. Bear the day of the year, hour, and
counted from receipt of notice of judgment. minute of its entry,
2. Be signed by the Administrator of the
Note: This has been MODIFIED to the lapse of Land Registration Authority in his ex
15 days counted from receipt of notice of officio capacity as Clerk of Court in land
judgment as per Sec. 39, BP 129 registration matters
3. State whether the owner is:
STEP 10: Issuance of the decree ● Married or unmarried, and if
a. If the court finds after hearing that the married, the name of the husband
applicant or adverse claimant has title as or wife, provided that if the land
stated in his application or adverse claim adjudicated is conjugal property, it
and proper for registration, a decree of shall be issued in the names of
confirmation and registration shall be both spouses.
entered ● If the owner is under disability, it
shall state the nature of the
b. The Court declares the decision final and disability,
instructs the LRA to issue a decree of ● If the owner is a minor, his age
confirmation and registration within 15 4. Contain a description of the land as
days from entry of judgment finally determined by the court,
5. Set forth the estate of the owner, and
Note: It is not the court that issues the decree, also, in such manner as to show their
but the LRA who issues the decree of relative priority, all particular estates,
confirmation and registration. This duty to issue mortgages, easements, liens,
the decree of registration does not prescribe. attachments and other encumbrances,
Republic v. Nillas, G.R. No. 159595 (2007)] including rights of tenant-farmer, if any,
to which the land or owner’s estate is
c. One year after issuance of the decree, it subject,
becomes incontrovertible and 6. Contain any other matter properly to be
amendments of the same will not be determined [Sec. 31, PD 1529]
allowed except in cases of clerical errors
STEP 12: Sending of copy of the decree of
Court retains jurisdiction over the case until registration to the corresponding Register
after the expiration of 1 year from the issuance of Deeds (Registrar of Land Titles and Deeds)
of the decree of registration. [Gomez v. CA,
(1988)] STEP 13: Transcription of the decree of
registration
Note: While a decision in land registration a. It is transcribed in the registration book of
proceeding becomes final after the expiration the Registrar of Land Titles and Deeds
of thirty days from the date of service of its b. Registrar issues owner’s duplicate OCT of
notice, the decree of registration does not the applicant by the Registrar of Land Titles
become final until after the lapse of one year and Deeds, upon payment of the
from the date of its issuance and entry. prescribed fees.
STEP 11: Entry of the decree of registration

This serves as the reckoning date to determine
the 1-year period from which one can impugn
the validity of the registration. [Sec. 32, PD
1529]
Page 434 of 532

3. Remedies Appeal
Sec. 30, PD 1529 as amended by BP 129
REMEDIES OF AN AGGRIEVED PARTY provides that an appeal may be taken from the
judgment of the court as in ordinary civil cases.
An aggrieved party in a registration proceeding
may avail himself of the following remedies: a. Modes of appeal:
1. Motion for New Trial [see Rule 37, ROC] 1. Ordinary appeal – Appeal to the Court
Relief from Judgment [see Rule 38, ROC] of Appeals in cases decided by the
2. Appeal Regional Trial Court in the exercise of
3. Relief from Judgment its original jurisdiction
4. Petition for Review of Decree of 2. Petition for review – Appeal to the
Registration Court of Appeals in cases decided by
5. Action for Reconveyance the Regional Trial Court in the exercise
6. Quieting of Title of its appellate jurisdiction, in
7. Cancellation of Title accordance with Rule 42.
8. Action for Damages 3. Appeal by certiorari – In all cases
9. Action for Compensation from the where only questions of law are raised
Assurance Fund or involved, the appeal shall be to the
10. Annulment of Judgment or Final Orders Supreme Court, in accordance with
and Resolutions Rule 45.
11. Reversion
12. Criminal Prosecution b. Period of ordinary appeal: Within 15 days
from notice of the judgment of final order
Motion for New Trial appealed from. Where a record on appeal
The aggrieved party may move the trial court to is required, the appellant shall file a notice
set aside the judgment or final order and grant of appeal and a record on appeal within 40
a new trial for one or more of the causes days from notice of the judgment or final
materially affecting the substantial rights of the order. [Sec. 39, BP 129]
said party. [Herrera]
c. Perfection of appeal:
a. Grounds: 1. A party’s appeal by notice of appeal is
1. Fraud, accident, mistake, or excusable deemed perfected as to him upon the
negligence which ordinary prudence filing of the notice of appeal in due time.
could not have guarded against and by The Court loses jurisdiction over the
reason of which such aggrieved party case upon the perfection of the appeals
has probably been impaired in his filed in due time and the expiration of
rights; the time to appeal of the other parties.
2. Award of excessive damages, or 2. A party’s appeal by record on appeal is
insufficiency of the evidence to justify deemed perfected as to him with
the decision; and respect to the subject matter thereof
3. Newly discovered evidence which with upon the approval of the record on
reasonable diligence could have not appeal filed in due time. the court loses
been discovered and produced at the jurisdiction only over the subject matter
trial and which if presented would thereof upon the approval of the
probably alter the result. records on appeal filed in due time and
b. Period of filing: Within the 15 day period of the expiration of the time to appeal of
perfecting an appeal. [Sec. 39, BP 129] the other parties. [Sec. 9, Rule 41 of the
Rules of Court]
Unlike ordinary civil actions, the adjudication of

land in a cadastral or land registration
Page 435 of 532

proceeding does not become final in the sense and fair price at the time of the
of incontrovertibility until after the expiration of purchase or before receiving any
one (1) year after the entry of the final decree notice of another person’s claim
of registration. As long as a final decree has not [Rosales v. Burgos, G.R. No.
been entered by the LRA and the period of 1 143573 (2009)]
year has not elapsed from date of such decree,
the title is not finally adjudicated and the b. To whom available: Only to an aggrieved
decision in the registration proceeding party who has been deprived of land or any
continues to be under the control and sound estate or interest therein by decree of
discretion of the court rendering it. [Gomez v. registration
CA, G.R. No. 77770 (1988)]
c. When to file: Any time after the rendition of
Relief from Judgment the court’s decision and before the
a. Grounds: expiration of 1 year from entry of decree of
1. When a judgment or final order is registration
entered, or any proceeding is 1. Upon expiration of the 1 year period,
thereafter taken against a party in any every decree becomes incontrovertible
court through accident, mistake, or 2. The Court held that the petition may be
excusable negligence. filed at any time after rendition of the
2. When a judgment or final order is court’s decision (no need to wait for
rendered by any court in a case, and a actual entry in the LRA) and before
party thereto, by fraud, accident, expiration of one year from entry of the
mistake, or excusable negligence, has final decree of registration. [Rivera v.
been prevented from taking an appeal. Moran, G.R. No. L-24568 (1925);
Director of Lands v. Aba, G.R. No. L-
b. Period of filing: Within 60 days after the 45648 (1939)]
petitioner learns of the judgment, final
order, or other proceedings to be set aside, d. Sole and ONLY Ground: Actual Fraud
and not more than 6 months after such 1. Actual fraud proceeds from an
judgment or final order was entered, or intentional deception practiced by
such proceeding was taken. means of misrepresentation or
concealment of material fact
Petition for Review of Decree of 2. The fraud must consist in an intentional
Registration omission of fact required by law to be
a. Requisites: stated in the application or a wilful
1. The petitioner has a real and dominical statement of a claim against the truth
right; 3. Any fraudulent act of the successful
2. That he has been deprived thereof party in a litigation which is committed
(through fraud); outside the trial of a case against the
3. That the action is filed within one year defeated party, or his agents, attorneys
from the issuance and entry of the or witnesses, whereby said defeated
decree of registration; and party is prevented from presenting fully
4. That the property has not been and fairly his side of the case. [Sterling
transferred to an innocent purchaser Investment Corporation v. Ruiz, G.R.
for value. [Agcaoili, citing Walstrom v. No. L-30694 (1969)]
Mapa, G.R. No. 38387 (1990)]
● An innocent purchaser for value is Action for Reconveyance
one who buys the property of An action for reconveyance is the remedy
another without notice that some granted to the rightful owner of land which has
other person has a right to or been wrongfully or erroneously registered in
interest in it, and who pays a full the name of another for the purpose of
Page 436 of 532

compelling the latter to transfer or reconvey the

land to him. [Esconde v. Barlongay, G.R. No. 1. Who may file: See Sec. 1, Rule 63, ROC
L-67583 (1987)] 2. Requisites:
a. Plaintiff or complainant has a legal or
Reconveyance is available not only to the legal an equitable title to or interest in the
owner of the property, but also the the person real property subject of the action; and
with a better right than the person under whose b. The deed, claim, encumbrance or
name said property was erroneously proceeding claimed to be casting a
registered. [Gasataya v. Mabasa, G.R. No. cloud on his title must be shown to be
148147 (2007)] in fact invalid or inoperative despite its
prima facie appearance of validity or
1. When to file: legal efficacy.
a. Before issuance of decree, or
within/after 1 year from entry Cancellation of Title
b. If based on implied trust, 10 years; The cancellation of title is initiated by a private
c. If based on express trust and void party usually in a case where there are two
contract, or if the plaintiff is in titles issued to different persons for the same
possession of the land, imprescriptible lot. [Agcaoili]
d. If based on fraud, 4 years from the
discovery Action for Damages
An Action for damages can be availed of when
2. It does not reopen proceedings but a mere reconveyance is no longer possible as when
transfer of the land from registered owner the land has been transferred to an innocent
to the rightful owner [Esconde v. purchaser for value [Ching v. CA, G.R. No. L-
Barlongay, supra] 59731 (1990)]
3. Requisites: An ordinary action for damages prescribes in

a. The action must be brought in the 10 years after the issuance of the Torrens title
name of a person claiming ownership over the property.
or dominical right over the land
registered in the name of the Action for Compensation from the
defendant; Assurance Fund
b. The registration of the land in the name Requisites:
of the defendant was procured through 1. That a person sustains loss or damage, or
fraud or other illegal means; is deprived of any estate or interest in land;
c. The property has not yet passed to an 2. On account of the bringing of land under
innocent purchaser for value; and the operation of the Torrens System arising
d. The action is filed after the certificate of after original registration;
title had already become final and 3. Through fraud, error, omission, mistake or
incontrovertible but within 4 years from misdescription in a certificate of title or
the discovery of the fraud [Balbin v. entry or memorandum in the registration
Medalla, G.R. No. L-46410 (1981)] or book;
not later than 10 years in the case of an 4. Without negligence on his part; and
implied trust [New Regent Sources, 5. Is barred or precluded from bringing an
Inc. v. Tanjuatco, G.R. No. 168800 action for the recovery of such land or
(2009)] estate or interest therein. [Agcaoili]
Quieting of Title Annulment of Judgment or Final Orders

Quieting of title is the remedy for the removal and Resolutions
of any cloud of doubt or uncertainty with A judgment of annulment shall set aside a
respect to real property. questioned judgment or final order or resolution
Page 437 of 532

in civil actions of the Regional Trial Courts for

which the ordinary remedies of new trial, The State may criminally prosecute for perjury
appeal, petition for relief or other appropriate the party who obtains registration through
remedies are no longer available through no fraud, such as by stating false assertions in the
fault of the petitioner. sworn answer required of applicants in
cadastral proceedings. [People of the
a. Grounds: Philippines v. Cainglet, G.R. Nos. L-21493-94
1. Extrinsic Fraud (1966)
● Extrinsic fraud shall not be a valid
ground if it was availed of, or could 4. Cadastral Registration
have been availed of, in a motion
for new trial or petition for relief. It is a proceeding in rem, initiated by the filing
[Sec. 2, Rule 47 of the Rules of of a petition for registration by the
Court] government, not by the persons claiming
2. Lack of Jurisdiction ownership of the land subject thereof, and the
latter are, on the pain of losing their claim
Reversion thereto, in effect compelled to go to court to
A reversion is instituted by the government, make known their claim or interest therein, and
through the Solicitor General in all cases where to substantiate such claim or interest.
lands of public domain are held in violation of
the Constitution or were fraudulently conveyed. Unlike other kinds of registration, this is
compulsory as it is initiated by the
Any acquisition, conveyance, alienation, government.
transfer, or other contract made or executed in
violation of any of the provisions of sections The government does not seek the registration
118, 121, 122, and 123 of the Public Land Act of land in its name. The objective of the
may be the subject of reversion. [Sec. 24, C.A. proceeding is the adjudication of title to the
No. 141 or The Public Land Act, as amended] lands or lots involved in said proceeding.
[Agcaoili]
The certificate of title issued pursuant to a void
patent may be ordered cancelled and the land Purpose:
reverted to the State through an action for 1. To serve the public interest by requiring
reversion filed by the Solicitor General. that the titles to any unregistered lands be
Similarly, an action for cancellation of title and settled and adjudicated
reversion may be filed by the Solicitor General 2. To settle all disputes over the land; and
where the land decreed by the registration 3. To remove all clouds over land titles, as far
court is inalienable. This action cannot be as practicable
barred by the prior judgment of said court since
it had no jurisdiction over the subject matter. Period of Filing: Extended up to December
[Republic v. Court of Appeals and Alpuerto, 31, 2020 [Sec. 2, R.A. 9176 (2002)]
G.R. No. L-45202 (1980)]
Only unregistered lands may be the subject
The Indefeasibility of title, prescription, laches, of a Cadastral Survey
and estoppel do not bar reversion suits. The object of cadastral proceedings is to “settle
and adjudicate” lands. Private lands are not
Criminal Prosecution contemplated since ownership thereof had
Sec. 116 of the Land Registration Act: already been finally determined and
Whoever knowingly swears falsely to any adjudicated. [Agcaoili]
statement required to be made under oath by
this Act shall be guilty of perjury and liable to When once decreed by a court of competent
the penalties provided by laws for perjury. jurisdiction, the title to the land thus determined
Page 438 of 532

is already res judicata, and binding on the PROCEDURE IN CADASTRAL

whole world, the proceeding being in rem. REGISTRATION (Sec. 35 and 36, PD 1529)
[Duran v. Olivia, G.R. No. L-16589 (1961)]
STEP 1: Determination of the President that
Cadastral Distinguished from Ordinary public interest requires title to unregistered
Registration lands be settled and adjudicated.
Ordinary Cadastral
Registration Registration President then orders the Director of Lands to
Voluntary Compulsory conduct a cadastral survey.
Applicant is a person STEP 2: Director of lands shall make a
Applicant is the
claiming title to the
Director of Lands cadastral survey.
land
Usually involves STEP 3: Director of Lands gives notice to
private land; it may
interested persons and to the general public.
also refer to public
agricultural lands if
Contents of the Notice:
the object of the All classes of land are
1. Day on which the survey will begin
action is judicial covered (private and
confirmation of public alienable lands) 2. Full and accurate description of the lands
imperfect or to be surveyed
incomplete title (in
which case CA 141 STEP 4: Publication of notice
applies) 1. Published once in the Official Gazette
Applicant comes to 2. A copy of the notice in English or the
Government asks the national language shall be posted in a
court to confirm his
court to settle and conspicuous place on the bulletin board
title and seek
adjudicate the title of of the municipal building of the
registration of the
the land municipality in which the lands or any
land in his name
In cadastral portion thereof is situated
registration, if the
applicant cannot A copy of the notice shall also be sent to:
If the applicant fails to prove that he is a. Mayor of the municipality
prove his title, entitled to the land, the b. Barangay captain
application may be land becomes public c. Sangguniang Panlalawigan and
dismissed without land. Sangguniang Bayan concerned
prejudice. [Santiago
v. Santos, G.R. No. However, the STEP 5: Geodetic engineers or other Bureau
31568, March 19, cadastral case of Land employees in charge of the survey
1930; Verzosa v. decision does not shall give notice reasonably in advance of the
Nicolas, G.R. No. constitute res judicata date of the survey. They shall also mark the
9227, February 10, as to bar even the
boundaries of the lands with monuments.
1915] same claimant from
subsequently filing an
STEP 6: Interested persons should
If the judgment application for judicial
confirmation of title to communicate with the geodetic engineer if he
determines requests for any information about the land.
ownership, then it is the same land,
res judicata upon the provided the
requisites are STEP 7: Actual survey and plotting of the land.
parties.
complied with. [Director
of Lands v. CA & Pastor, STEP 8: Director of Lands represented by
G.R. No. L-47847, July Solicitor General shall institute original
31, 1981] registration proceedings.
Page 439 of 532

1. Petition is filed in the appropriate RTC

where the land is situated
E. SUBSEQUENT
2. Contents of the Petition: REGISTRATION
a. That public interest requires that the
title to such lands be settled and SUBSEQUENT REGISTRATION
adjudicated and praying that such titles A proceeding where incidental matters after
be so settled and adjudicated original registration may be brought before the
b. Description of the lands land registration court by way of motion or
c. Accompanied by a plan thereof petition filed by the registered owner or a party
d. Such other data as may serve to in interest
furnish full notice to the occupants of
the lands and to all persons who may Necessity and Effects Of Registration
claim any right or interest therein [Sec. 51 and 52, PD 1529]
STEP 9: Publication, mailing posting 1. The deed, mortgage, lease, or other

voluntary instrument, except a will shall
STEP 10: Hearing ONLY operate as:
a. A contract between the parties and
Jurisdiction of the Cadastral Court: b. Evidence of authority to the Register of
1. Adjudicate title to any claimant thereto Deeds to make registration.
2. Declare land as a public land 2. The act of registration shall be the
3. Order correction of technical description operative act to convey or affect the land
4. Order the issuance of new title in place of insofar as third persons are concerned.
the title issued under voluntary 3. Also, by registration, it creates constructive
registration proceedings notice to the world.
5. Determine the priority of overlapping title
6. Order the partition of the property Registration of a document is ministerial on the
part of the Register of Deeds. The purpose of
STEP 11: Decision registering an instrument is to give notice
thereof to all persons, not to destroy or affect
STEP 12: Issuance of the decree and already registered rights over the land at the
certificate of title time of the registration. Registration must first
be allowed, and validity or effect litigated
Note: Reopening of cadastral cases no longer afterwards. [Gurbax Singh Pabla & Co. v.
allowed. RA 931, effective June 20, 1953 for Reyes, G.R. No. L-3970 (1952)]
five (5) years, authorizing the reopening of
cadastral cases under certain conditions and As between the parties to a contract of sale,
which had been extended until Dec. 31, 1968, registration is not necessary to make it valid
is no longer in force. and effective, for actual notice is equivalent to
registration. [Agcaoili]
Courts are thus without jurisdiction or authority
to reopen a cadastral proceeding since Dec. The act of registration creates a constructive
31, 1968. [Aquino, citing Republic v. Estenzo, notice to the whole world and binds third
G.R. No. L-35512 (1988)] persons. [Garcia v. Court of Appeals, G.R. No.
L-56483 (1984)]
Page 440 of 532

Voluntary Dealings Compared to An innocent Saberon v.

Involuntary Dealings purchaser for value Ventanilla, Jr., G.R.
Involuntary of registered land No. 192669 (2014):
Voluntary Dealings
Dealings becomes the Entry thereof in the
Refer to deeds, Refer to the writs, registered owner the day book of the
instruments, or orders, or processes moment he presents ROD is sufficient
documents which issued by the court and files a duly notice to all persons
are results of the of record affecting notarized and valid even if the owner’s
free and voluntary registered land, also deed of sale and the duplicate certificate
acts of the parties other instruments same is entered in of title is not
thereto. which are not willful the day book of the presented to the
acts of the ROD and at the ROD.
registered owner, same time he
executed without his surrenders or
knowledge or presents the owner’s
consent. duplicate certificate
of title covering the
1. Sale 1. Attachment land sold and pays
2. Real property 2. Mandamus the registration fees.
mortgage 3. Sale on Villasor v. Camon, Director of Lands v.
3. Lease execution of R-C.A. No. 8551 Reyes, G.R. No. L-
4. Pacto de retro judgment or (1951): It is 27594 (1976): Entry
sale sales for taxes necessary to in the day book of
5. Extra-judicial 4. Adverse claims register the deed or the ROD is sufficient
settlement 5. Notice of lis instrument in the notice to all persons
6. Free pendens entry book of the of an adverse claim
patent/homeste 6. Expropriation ROD and a without the same
ad 7. Forfeiture memorandum being annotated at
7. Powers of 8. Auction sale on thereof shall also be the back of the
attorney foreclosure of made in the owner’s certificate of title
8. Trusts mortgage duplicate certificate
and its original
Presentation of the Entry in the day Sps. Labayen v. Armed Forces and
owner’s duplicate book of ROD is Serafica, G.R. No. Police Mutual
certificate of title is sufficient notice to 178443 (2008): At Benefit Association,
required to notify; all persons the time of the filing Inc. v. Santiago,
mere entry in the of the petition for G.R. No. 147559
day book of the cancellation of (2008): Entry of the
Register of Deeds encumbrance, the attachment in the
(ROD) is insufficient lease contract books is sufficient
already lost its notice to all persons.
efficacy. Thus, there Hence, the fact that
is no basis to save the deed of sale was
its annotation on already annotated is
defendant’s title. of no moment with
The fact that the regard to third
cancellation of the persons. The
lease contract was preference created
forged is of no by the levy on
moment, for there attachment is not
diminished by the
Page 441 of 532

was no violation of a subsequent RELIANCE ON TITLE

right. registration of the General Rule: A person dealing with registered
deed of sale. property need not go beyond, but only has to
rely on, the title. [Campillo v. PNB, G.R. No.
1. Voluntary Dealings L-19890 (1969)]
Voluntary dealings are deeds, instruments, He is charged with notice only of such burdens
and claims which are annotated on the title, for
documents which are the results of free and
voluntary acts of parties thereto. registration is the operative act that binds the
property.
The act of registration shall be the operative act
Exception: When should a purchaser
to convey or affect the land insofar as third
investigate?
persons are concerned. [Sec. 51, PD 1529]
1. Banks are required to exercise more
INNOCENT PURCHASER FOR VALUE AND care and prudence in dealing with
IN GOOD FAITH registered lands for their business is
An innocent purchaser for value refers to one affected with public interest. The
someone who "buys the property of another general rule does not apply. [Omengan
without notice that some other person has a v. PNB, G.R. No. L161319 (2007)]
right to or interest in it, and who pays a full and 2. When the purchaser or mortgagee is a
financing institution [Dela Merced v.
fair price at the time of the purchase or before
receiving any notice of another person’s claim." GSIS, G.R. No. 140398]
3. When party concerned has actual
[Sps. Villamil v. Villarosa, 602 Phil. 932, 941
(2009)] knowledge of facts and circumstances
that would impel a reasonably cautious
man to make inquiry. [Leung Yee v.
Good faith consists in the possessor’s belief
Strong Machinery Company, G.R. No.
that the person from whom he received the
L-11658 (1918)]
thing was the owner of the same and could
convey his title, and there was an honest 4. When purchaser is in bad faith; e.g. he
intention to abstain from taking any had full knowledge of a previous sale.
unconscientious advantage from another. [Jamoc v. CA, 200 SCRA 74 (1991)]
[Duran v. IAC, G.R. No. L-64159 (1985), Fule 5. Purchaser of land where the certificate
v. De Lagra] of title contains a notice of Lis pendens;
6. When a person buys land from one
Where innocent third persons relying on the whose rights over the land is evidenced
correctness of the certificate of title issued only by a deed of sale and an
acquire rights over the property, the court annotation in the certificate of title but
cannot disregard such rights and order the total no TCT. [Quiniano v. CA, G.R. No. L-
cancellation of the certificate of title for that 28466 (1971)]
would impair the public confidence in the
certificate of title. [Duran v.IAC, G.R. No. L- DOUBLE SALE
Where two certificates of title are issued to two
64159]
different persons covering the same parcel of
MORTGAGEE IN GOOD FAITH land in whole or in part, the earlier in date must
Even if the mortgagor is not the rightful owner prevail as between the original parties and in
of, or does not have the valid title to the case of successive registration where more
mortgaged property, the mortgagee in good than one certificate is issued over the land, the
faith is entitled to protection. [Llanto v. Alzona, person holding title under the prior certificate is
entitled to the property as against the person
G.R. No. 150730, (2005)]
who relies on the second certificate. [National
Page 442 of 532

Housing Authority v. Laurito, G.R. No. 191657 d. Each page of the copy of the
(2017)] instrument, except the page where
the signatures already appear at
The purchaser from the owner of the later the foot of the instrument, shall be
certificate and his successors should resort to signed on the left margin thereof by
the vendor for redress, rather than molest the the parties and their witnesses, and
holder of the first certificate and his sealed with the notarial seal. This
successors, who should be permitted to rest fact as well as the number of the
secure in their title. [Gatioan v. Gaffud, G.R. pages shall be stated in the
No. L-2153 (1969) acknowledgment
FORGED DEED c. File instrument creating or transferring

General Rule: A forged deed is an absolute interest and certificate of title with Register
nullity and conveys no title. of Deeds together with:
1. Owner’s duplicate
Exception: If there is good faith, a TCT has • Serves as conclusive authority
already been issued to the purchaser, the latter from the registered owner to the
being an innocent purchaser for value Register of Deeds to enter a new
according to Sec. 39, PD 1529, then the title is certificate or to make a new
good. memorandum of registration in
accordance with the voluntary
Registration of Voluntary Instruments in instrument presented. [Sec. 107.
General P.D. 1529]
Process of Registration [Sec. 55, PD 1529] • The issuance of a new transfer
a. The deed or other voluntary instrument certificate without presentation of
must contain: an owner’s duplicate is
1. The following details of the grantee or unwarranted and confers no right
other person acquiring or claiming on the purchaser [PNB v.
interest: Fernandez, 1935]
● Full name 2. Payment of fees & documentary
● Nationality stamp tax
● Residence 3. Evidence of full payment of real
● Postal address estate tax
● Civil status (if married, include 4. Document of transfer – 1 copy
name in full of spouse) additional for city/provincial
2. If grantee is a corporation: It must assessor
contain a recital showing that such
corporation or association is legally d. Payment of fees and DST
qualified to acquire private lands 1. After payment of entry fee the Register
of Deeds shall enter the instruments in
b. It must be executed in accordance with a primary entry book [Sec. 56, PD
P.D. Sec. 112. It shall be: 1529].
a. In a public instrument executed in 2. The national, provincial and city
accordance with law governments are exempted from
b. Signed by the parties in the payment of entry fees.
presence of at least 2 witnesses 3. RA 456 prohibits registration of
who shall likewise sign thereon; documents affecting real property
c. Where the instrument has for its which is delinquent in the payment of
object 2 or more parcels of land, real estate taxes. Further, if evidence
the number thereof shall also be of such payment is not presented with
stated in the acknowledgment 15 days from the date of entry of said
Page 443 of 532

document in the primary entry book of place of registration of the certificate of

the register of deeds the entry shall be title of the land conveyed.
deemed cancelled.
b. If only a portion of property is the subject
e. Entry of the Instrument in the Primary [Sec. 58, PD 1529]
Entry Book: Instruments are regarded as 1. Include a plan which shows all the
registered from the time the Register of portions already subdivided with
Deeds enters them in the book. verified and approved technical
description.
f. TCT shall then be issued. 2. That plan with the certified copy of the
technical descriptions shall be filed with
Registration of Dealings Less than the Register of Deeds for annotation in
Ownership [Sec. 54, PD 1529] the TCT.
If an instrument does not divest ownership or 3. Register of Deeds shall issue a TCT
title from owner or from transferee of the and cancel the grantor's certificate
registered owners, then NO NEW partially OR it may be cancelled totally
CERTIFICATE shall be entered or issued. and a new one issued describing
therein the remaining portion
Process of Registration for Dealings less
than Ownership c. If there are SUBSISTING encumbrances
a. Filing of the instrument with the Register of and annotations: They shall be carried
Deeds over in the new certificate or certificates;
b. A brief memorandum thereof is made: except when they have been
1. On the certificate of title by the Register simultaneously discharged.
of Deeds and signed by him, and
2. On the owner’s duplicate Registration of Mortgages and Leases [Sec.
60, PD 1529]
Cancellation or extinguishment of such Sec. 60, PD 1529 provides that mortgages and
interests shall be registered in the same leases shall be registered in the manner
manner. provided in Sec. 54 (Dealings less than
ownership).
Registration of Deeds of Sale and Transfers
a. If entire property is the subject [Sec. 57, The deed shall take effect upon the title only
PD 1529] from the time of registration.
1. Owner executes and registers the deed
which must be sufficient in form. When a deed of mortgage is presented, the
2. A new certificate of title is issued and Register of Deeds will enter upon the OCT and
Register of Deeds prepares and upon the owner’s duplicate a memorandum
delivers to grantee his owner's thereof and shall sign said memorandum.
duplicate certificate
3. Register of Deeds notes upon the OCT Registration of Powers of Attorneys [Sec.
and the duplicate certificate the date of 64, PD 1529]
transfer, the volume and page of the Powers of attorney and revocations shall be
registration book where the new registered with the Register of Deeds of the
certificate is registered province or city where the land lies.
4. The original and the owner's duplicate
of the grantor's certificate shall be Any instrument revoking such power shall be
stamped "cancelled". registered in like manner.
5. The deed of conveyance shall be filed
and indorsed with the number and the
Page 444 of 532

Registration of Trusts
Registration is by memorandum: ATTACHMENTS
a. A memorandum by the words “in trust” or Attachment is a writ issued at the institution or
“upon condition” or other apt words is made during progress of an action commanding the
if a deed or other instrument is filed in order sheriff to attach the property, rights, credits or
to: effects of the defendant to satisfy demands of
1. Transfer registered land in trust, or the plaintiff.
upon any equitable condition or
limitation expressed therein, or Kinds
2. Create or declare a trust or other a. Preliminary
equitable interests in such land without b. Garnishment
transfer [Sec. 65, PD 1529] c. Levy on execution
b. A memorandum by the words “with power Process of Registration

to sell,” or “power to mortgage” or other apt a. Copy of writ in order to preserve any lien,
words is made when: The instrument right or attachment upon registered land
creating or declaring a trust or other shall be filed with the Register of Deeds
equitable interest contains an EXPRESS where the land lies, containing number of
POWER to sell, mortgage, or deal with the certificate of title of land to be affected or
land in any manner description of land [PD 1529, Sec 69]
However, if an implied or constructive trust is b. Register of Deeds to index attachment in

claimed, person claiming such must execute a names of both plaintiff & defendant or
sworn statement thereof with the Register of name of person whom property is held or in
Deeds, containing a description of the land, the whose name stands in the records
name of the registered owner and a reference 1. If duplicate of certificate of title is not
to the number of the certificate of title. Such presented:
claim shall not affect the title of a purchaser for ● Register of Deeds shall within 36
value and in good faith before its registration. hours send notice to registered
[Sec. 68, PD 1529] owner by mail stating that there
has been registration &
2. Involuntary Dealings requesting him to produce
duplicate so that memorandum
Involuntary dealings refer to the writ, order, or be made
process issued by the court of record affecting ● If owner neglects or refuses –
registered land, also other instruments which Register of Deeds shall report
are not willful acts of the registered owner, matter to court.
executed without his knowledge or consent. 2. Court after notice shall enter an order
to owner to surrender certificate at
The entry thereof in the day book is sufficient time & place to be named therein.
notice to all persons of such adverse claim.
[Agcaoili] c. Although notice of attachment is not noted
in duplicate, notation in book of entry of
The following involuntary dealings affecting Register of Deeds produces effect of
registered land must be registered: registration already
a. Attachments [Sec. 69, PD 1529]
b. Adverse claim [Sec. 70, PD 1529] Effect of registration of attachment
c. Sale on execution or for taxes or for i. Creates real right
any assessment [Sec. 74, PD 1529] ii. Has priority over execution sale
d. Notice of lis pendens [Sec. 76, PD iii. But between 2 attachments – one that
1529] is earlier in registration is preferred
Page 445 of 532

Duty of Register of Deeds - Duty is ministerial Adverse claim is not ipso facto cancelled after
but may refuse registration in the following 30 days, hearing is necessary. [Sajonas v. CA,
circumstances: G.R. No. 102377 (1996)]
a. Title to land is not in the name of
defendant SALE ON EXECUTION OR FOR TAXES OR
Exception: If petitioner is an heir FOR ASSESSMENT
b. No evidence is submitted to show that Execution sale

he has present or possible future 1. To enforce a lien of any description on
interest in land registered land, any execution or
affidavit to enforce such lien shall be
ADVERSE CLAIM filed with Register of Deeds where the
A claim is adverse when: [Sec. 70, par. 1, PD land lies
1529] 2. Register in the registration book &
a. Claimant’s right or interest in registered memorandum upon proper certificate
land is adverse to the registered owner, of title as adverse claim or as an
and encumbrance
b. Such right arose subsequent to date of 3. To determine preferential rights
original registration, and between 2 liens: priority of registration
c. No other provision is made in the of attachment
Decree for the registration of such right
or claimant Tax sale
1. Sale of land for collection of delinquent
Requisites for registration of an adverse taxes and penalties due the Government
claim: 2. In personam (all persons interested shall
a. The adverse claimant must give a be notified so that they are given
statement of the following in writing: opportunity to be heard)
1. His alleged right or interest a. Notice to be given to delinquent
2. How and under whom such alleged taxpayer at last known address
right or interest is acquired b. Publication of notice must also be
3. The description of the land in which the made in English, Spanish & local
right or interest is claimed and dialect & posted in a public &
4. The number of the certificate of title conspicuous place in place wherein
b. The statement must be: property is situated & at the main
1. Signed by the adverse claimant entrance of the provincial building
2. Sworn before a notary public 3. Sale cannot affect rights of other lien
c. The statement must also state his holders unless they are given the right to
residence or the place to which all notices defend their rights: due process must be
may be served upon him. [Lozano v strictly observed
Ballesteros, G.R. No. 49470 (1991)] 4. Tax lien superior to attachment
Duration of an adverse claim Note: No need to register tax lien because it is

a. 30 days from the date of registration. automatically registered once the tax accrues.
b. After that the annotation of adverse However, sale of registered land to foreclose a
claim may be cancelled upon filing of a tax lien needs to be registered.
verified petition by the party in interest.
Process of Registration
When cancelled, no second adverse claim 1. Officer’s return shall be submitted to
based on the same ground may be registered Register of Deeds together with
by the same claimant. duplicate title
2. Register in the registration book
Page 446 of 532

3. Memorandum shall be entered in the 6. Foreclosure [Magdalena Homeowners

certificate as an adverse claim or Association, Inc. v. Court of Appeals,
encumbrance GR No. 60323 (1990)]
4. After the period of redemption has
expired & no redemption (2 years from Process of Registration: By Memorandum
registration of auction sale) is made: or Notice stating
cancellation of title & issuance of a new 1. The institution of the action or
one proceeding
5. Before cancellation, notice shall be 2. The court wherein the same is pending
sent to registered owner: to surrender 3. The date of the institution of the action
title & show cause why it shall not be 4. Reference to the number of the
cancelled certificate of title
5. Adequate description of the land
Note: Actual knowledge of a person is affected and registered owner thereof
equivalent to registration as against him
Other parties who need to register
LIS PENDENS 1. Assignee in involuntary proceeding for
Literally means “pending suit.” It is an insolvency
announcement to the whole world that a a. Duty of the officer serving notice to file
particular real property is in litigation. The a copy of the notice to the Register of
inscription serves as a warning that one who Deeds where the property of debtor lies
acquires an interest over litigated property b. Assignee elected or appointed by court
does so at his own risk, or that he gambles on shall be entitled to entry of new
the result of the litigation over the property. certificate of registered land upon
[Marasigan v. Intermediate Appellate Court, presentment of copy of assignment
GR No. L-69393 (1987)] with bankrupt’s certificate of title
(duplicate)
It keeps the subject matter within the power of c. New certificate shall note that it is
the court until the entry of final judgment. It is entered to him as assignee or trustee
not a lien or encumbrance, but a mere in insolvency proceedings
cautionary notice. [Tanchoco v. Aquino, GR 2. Government in eminent domain
No. L-30670 (1987)] a. Copy of judgment shall be filed in the
Register of Deeds which states
When notice of lis pendens is proper: description of property, certificate
1. To recover possession of real estate number, interest expropriated, nature
2. To quiet title of public use
3. To remove clouds upon the title thereof b. Memorandum shall be made or new
4. For partition certificate of title shall be issued
5. Other proceedings of any kind in court
directly affecting the title to land or the Effect of registration
use or occupation thereof or the 1. Impossibility of alienating the property
buildings thereon in dispute during the pendency of the
suit – may be alienated but purchaser
When notice of lis pendens is NOT proper: is subject to final outcome of pending
1. Proceedings for the recovery of money suit
judgments 2. Register of Deeds is duty bound to
2. Attachments carry over notice of lis pendens on all
3. Proceedings on the probate of wills new titles to be issued
4. Administration of the estate of
deceased persons
5. Levies on execution
Page 447 of 532

Cancellation of lis pendens [Sec. 77, PD (i) Those intended for public use, such as
1529] roads, canals, rivers, torrents, ports
Under Sec. 4, Rule 13 of the 1997 Rules of Civil and bridges constructed by the State,
Procedure, a notice of lis pendens may banks, shores, roadsteads, and others
cancelled on the following grounds: of similar character;
1. The annotation was for the purpose of (ii) Those which belong to the State,
molesting the title of the adverse party; without being for public use, and are
2. The annotation is not necessary to protect intended for some public service or for
the title of the party who caused it to be the development of the national wealth.
recorded.
2. Waters under Art. 502, CC
Requisites: (i) Rivers and natural beds
1. Before final judgment (ii) Continuous or intermittent waters of
2. Upon order of the court springs and brooks running in their
3. Upon Action by the Register of Deeds at natural beds and the beds themselves
the instance of the party that caused the (iii) Waters rising continuously or
registration or upon verified petition of the intermittently on lands of public
latter; and dominion
4. Must be due to the grounds mentioned. (iv) Lakes and lagoons formed by Nature
[Pena] on public lands, and their beds
(v) Rain waters running through ravines or
sand beds, which are also part of public
F. NON-REGISTRABLE dominion;
PROPERTIES (vi) Subterranean waters on public lands
(vii) Waters found within the zone of
operation of public works, even if
Sec. 2, Art. XII, 1987 Constitution. All lands
constructed by a contractor
of the public domain, waters, minerals, coal,
(viii) Waters rising continuously or
petroleum, and other mineral oils, all forces
intermittently on lands belonging to
of potential energy, fisheries, forests or
timber, wildlife, flora and fauna, and other private persons, to the State, to a
province, or to a city or municipality
natural resources are owned by the State.
from the moment they leave such lands
(ix) The waste waters of fountains, sewers,
Sec. 2, Art. XI, 1987 Constitution. With the
and public establishments
exception of agricultural lands, all other
natural resources shall not be alienated.
Specific kinds of non-registrable properties
or lands
The classification of public lands is an
1. Forest or timberland, public forest,
exclusive prerogative of the Executive
forest reserves
Department of the Government and not of the
2. National parks – Under the present
courts. In the absence of such classification,
Constitution, national parks are declared
the land remains as unclassified land until it is
part of the public domain, and shall be
released therefrom and rendered open to
conserved and may not be increased nor
disposition. [Aquino, citing Director Lands and
diminished, except by law [Rep. v AFP
Director of Forest Development v. CA, G.R.
Retirement and Separation Benefits
No. L-58867 (1984)]
System, G.R. No. 180463 (2013)]
3. Mangrove swamps - Mangrove swamps
Civil Code provisions dealing with non-
or mangroves should be understood as
registrable properties
comprised within the public forests of the
1. Properties of public dominion [Art. 420, CC]
Philippines as defined in Sec. 1820,
Administrative Code of 1917. [Director of
Page 448 of 532

Forestry v. Villareal, G.R. No. L-32266 13. Reservations for public and semi-public
(1980)] purposes – Sec. 14, Chapter 4, Book III of
4. Mineral lands - Both under the 1987 EO No. 292 provides that the President
Constitution and Sec. 2 of the Public Land shall have the power to reserve for
Act, mineral lands are not alienable and settlement or public use, and for specific
disposable. [Lepanto Consolidated Mining public purposes, any of the lands of public
Co. v. Dumyung, G.R. No. L-31666 (1979)] domain, the use of which is not otherwise
5. Foreshore land and seashore and directed by law.
reclaimed lands- Seashore, foreshore,
and/or portions of territorial waters and The land registration court has no jurisdiction
beaches, cannot be registered. Even over non-registrable property and cannot
alluvial formation along the seashore is validly adjudge the registration of title thereof in
part of public domain. [Aquino, citing Dizon favor of a private applicant. [Peña]
v. Rodriguez, G.R. Nos. L-20300-01
(1965)] Thus, where it has so been adjudged, the river
6. Lakes - Lakes are part of public dominion. not being capable of private appropriation or
[Art. 502(4), CC] acquisition by prescription, the title thereto may
7. Creeks and Streams – A dried up creek be attacked, either directly or collaterally, by
bed is property of public dominion the State which is not bound by any
[Fernando v. Acuna, G.R. No. 161030 prescriptive period provided by the Statute of
(2011)] Limitation. [Peña, citing Martinez v. CA, G.R.
8. Military or Naval Reservations - The No. L-31271 (1974)]
reservation made segregates it from the
public domain and no amount of time in Patrimonial Property
whatever nature of possession could have Refers to property that is open to disposition by
ripen such possession into private the Government, or otherwise property
ownership. [Republic v. Marcos, G.R. No. pertaining to the national domain, or public
L-32941 (1973)] lands.
9. Watershed - The Constitution expressly
mandates the conservation and utilization The property of provinces, cities, and
of natural resources, which includes the municipalities is divided into property for public
country’s watershed. [Tan v. Director of use and patrimonial property. Property for
Forestry, G.R. No. L-24548, (1983)] public use, in the provinces, cities, and
10. Grazing lands - While the 1987 municipalities, consist of the provincial roads,
Constitution does not specifically prove city streets, municipal streets, the squares,
that grazing lands are not disposable, yet if fountains, public waters, promenades, and
such lands are part of a forest reserve, public works for public service paid for by said
there can be no doubt that the same are provinces, cities, and municipalities. All other
incapable of registration. [Aquino, citing property possessed by any of them is
Director of Lands v. Rivas, G.R. No. L- patrimonial and shall be governed by the Civil
61539 (1986)] Code, without prejudice to the provisions of
11. Previously titled land - Proceeds from the special laws. [Art. 424, CC]
indefeasibility of the Torrens title.
12. Alluvial deposit along river when man-
made - Such deposit is really an
encroachment of a portion of the bed of the
river, classified as property of the public
domain under Art. 420, par. 1 and Art. 502
(1) of the CC, hence not open to
registration. [Republic v. CA, G.R. No. L-
61647 (1984)]
Page 449 of 532

b. In case the Register of Deeds refuses

its administration to record, he shall
G. DEALINGS WITH advise the party in interest in writing of
UNREGISTERED LANDS the ground or grounds for his refusal
No deed, conveyance, mortgage, lease, or The latter may appeal the matter to the
other voluntary instrument affecting land not Commissioner of Land Registration.
registered under the Torrens system shall be
valid, except as between the parties thereto, Recording by the Register of Deeds is
unless such instrument shall have been ministerial.
recorded in the manner herein prescribed in
the office of the Register of Deeds for the Recording made under this section shall be
province or city where the land lies. [Sec. 113, without prejudice to a third party with a better
par. 1, PD 1529] right. [Sec. 113, PD 1529]
Effects of Transactions Covering Better right

Unregistered Land Refers to a right which must have been
1. As between the parties – The contract is acquired by a third party independently of the
binding and valid even if not registered unregistered deed, such, for instance, as title
2. As among third persons – There must be by prescription, and that it has no reference to
registration for the transaction to be binding rights acquired under that unregistered deed
against third persons itself. [Peña]
Primary Entry Book and Registration Book Involuntary Dealings in Unregistered Lands
The Register of Deeds for each province or city PD 1529 now permits the registration of
shall keep a Primary Entry Book and a involuntary dealings in unregistered lands.
Registration Book.
1. The Primary Entry Book shall contain, Tax sale, attachment and levy, notice of lis
among other particulars: pendens, adverse claim and other instruments
a. Entry number in the nature of involuntary dealings with
b. Names of the parties respect to unregistered lands, if made in the
c. Nature of the document form sufficient in law, shall likewise be
d. Date, hour and minute it was presented admissible to record under Sec. 113. [Sec. 113
and received (d), PD 1529]
2. The Registration Book – Provides spaces
whereon the annotation is made after the
instrument has been entered in the Primary
Entry Book
Process of Registration
1. Registration is by way of annotation
2. The instrument dealing with unregistered
land is presented before the Register of
Deeds
3. The Register will then determine if it can be
registered:
a. If, on the face of the instrument, it
appears that it is sufficient in law, the
Register of Deeds shall forthwith
record the instrument
Page 450 of 532

U.P. LAW BOC TORTS AND DAMAGES CIVIL LAW
TORTS
CIVIL LAW
Page 451 of 532

2. Which is exercised in bad faith;

A. PRINCIPLES 3. For the sole intent of prejudicing or injuring
another.
Tort Test of abuse of rights

A private or civil wrong violating a right for No hard and fast rule; depends on the
which the law provides a remedy in the form of circumstances of each case. The exercise of a
damages right must be in accordance with the purpose
for which it was established, and must not be
Elements excessive or unduly harsh; there must be no
1. Duty intention to injure another.
2. Breach
3. Injury; and Generally, the exercise of any right must be in
4. Proximate Causation [Garcia v. Salvador, accordance with the purpose for which it was
G.R. No. 168512 (2007)] established. It must not be excessive or unduly
harsh; there must be no intention to injure
Definition of Quasi-Delict (also known as another.
culpa aquiliana)
There is abuse of right when:
Art. 2176, CC. Whoever by act or omission 1. The right is exercised for the only purpose
causes damage to another, there being fault of prejudicing or injuring another
or negligence, is obliged to pay for the 2. The objective of the act is illegitimate
damage done. Such fault or negligence, if 3. There is an absence of good faith
there is no pre-existing contractual relation
between the parties, is called a quasi-delict Effects of the application of Art. 19:
and is governed by the provisions of this a. “A right, though by itself legal because
Chapter. recognized or granted by law as such, may
nevertheless become the source of some
Elements of quasi-delict illegality” [Globe Mackay v. CA, G.R. No.
1. Act/omission committed through 81262 (1989)];
fault/negligence b. It precludes the defense of damnum
2. Damage/injury is caused by such absque injuria. Damnum absque injuria
act/omission does not apply when there is an abuse of a
3. Does not arise under a pre-existing person’s right [Amonoy v. Gutierrez, G.R.
contractual obligation No. 140420 (2001)].
Note: Jurisprudence replaces the third element

with causal connection [PNR v. Brunty, G.R.
No. 169891 (2006); Andamo v. IAC, G.R. No.
74761 (1990)].
1. Abuse of Right; elements

Art. 19, CC. Every person must, in the
exercise of his rights and in the performance
of his duties, act with justice, give everyone
his due, and observe honesty and good faith
Elements [Albenson v. CA, G.R. No. 88694
(1993)]:
1. There is a legal right or duty;
Page 452 of 532

CASE LEGAL RIGHT AND INJURY DOCTRINE
Velayo v. Shell Right to transfer credit. The standards in NCC 19 are

(1959) implemented by NCC 21.
The transfer of credit from Shell
Philippines to Shell USA was deemed a
violation of NCC 21 as it allowed Shell
to attach properties of their creditor
CALI to the prejudice of its other
creditors.
Globe v. CA Right to dismiss an employee. When a right is exercised in a manner

(1989) which does not conform with the norms
The dismissal itself was not illegal but it in NCC 19, and results in damage to
was the manner of dismissal which was another, a legal wrong is thereby
deemed in violation of Article 19, as committed. The law, therefore,
such was based on unfounded recognizes a primordial limitation on all
accusations of dishonesty. rights.
University of the The conscious indifference of the school The conscious indifference of a person
East v. Jader in not informing its student that he could to the rights or welfare of the others who
(2000) not graduate formed the basis for the may be affected by his act or omission
award of damages. can support a claim for damages.
Amonoy v. Right to demolish another’s house on The principle of damnum absque injuria
Gutierrez (2001) his own property. does not apply when the exercise of the
legal right is suspended or extinguished
Amonoy obtained a judgment in his pursuant to a court order. The exercise
favor for Gutierrez to vacate. A of a right ends when the right
demolition order was issued but the disappears, and it disappears when it is
court suspended it with a TRO. Amonoy abused, especially to the prejudice of
proceeded with the demolition. In a others.
complaint for damages, he claims the
principle of damnum absque injuria.
Right to forbid uninvited guests from Article 19, known to contain what is
entering the party. commonly referred to as the principle of
Page 453 of 532

Nikko Hotel Ruby Lim’s throwing out of complainant abuse of rights, is not a panacea for all
Manila Garden Reyes, as a gatecrasher in a private human hurts and social grievances. The
v. Reyes (2005) party, was merely in exercise of her object of this article is to set certain
duties as Executive Secretary of the standards which must be observed not
hotel where the party was held, and did only in the exercise of one’s rights but
not constitute a violation of Article 19. also in the performance of one’s duties.
2. Unjust Enrichment
Enrichment at the expense of another is not per
se forbidden. It is such enrichment without just
Art. 22, CC. Every person who through an or legal cause that is contemplated here. Just
act of performance by another, or any other and legal cause is always presumed, and the
means, acquires or comes into possession plaintiff has the burden of proving its absence.
of something at the expense of the latter The restitution must cover the loss suffered by
without just or legal ground, shall return the the plaintiff but it can never exceed the amount
same to him. of unjust enrichment of the defendant if it is less
than the loss of the plaintiff.
Art. 23, CC. Even when an act or event Requisites
causing damage to another’s property was 1. That the defendant has been enriched;
not due to the fault or negligence of the 2. That the plaintiff has suffered a loss;
defendant, the latter shall be liable for 3. That the enrichment of the defendant is
indemnity if through the act or event he was without just or legal ground; and
benefited. 4. That the plaintiff has no other action
based on contract, crime or quasi-
delict.
Art. 2142, CC. Certain lawful, voluntary and
unilateral acts give rise to the juridical
“Under the civil law principle of unjust
relation of quasi-contract to the end that no
enrichment, the registered owner of the motor
one shall be unjustly enriched or benefited at
vehicle has a right to be indemnified by the
the expense of another.
actual employer of the driver; and under Article
2181 of the Civil Code, whoever pays for the
Art. 2143, CC. The provisions for quasi damage caused by his dependents or
contracts in this Chapter do not exclude employees may recover from the latter what he
other quasi-contracts which may come within has paid or delivered in satisfaction of the
the purview of the preceding article. claim.” [Mendoza v. Sps Gomez, G.R No.
160110 (2014)]
One person should not be permitted to unjustly

enrich himself at the expense of another, but
3. Liability without fault
should be required to make restitution of, or for
property or benefits received, retained, or Art. 23, CC. Even when an act or event
appropriated where it is just and equitable that causing damage to another’s property was
such restitution be made, and where such not due to the fault or negligence of the
action involves no violation or frustration of law defendant, the latter shall be liable for
or opposition to public policy, either directly or indemnity if through the act or event he was
indirectly. benefited
Page 454 of 532

violation of some legal provision [Garcia v.

This provision imposes liability even without Salvador, G.R. No. 168512 (2007)].
fault, as long as the injurious act or event
benefited the defendant. 5. Acts Contrary to Morals
This article is based on equity, An involuntary
act, because of its character cannot generally Art. 21, CC. Any person who willfully causes
create an obligation; but when by such act its loss or injury to another in a manner that is
author has been enriched, it is only just that he contrary to morals, good customs or public
should indemnify for the damages caused, to policy shall compensate the latter for the
the extent of his enrichment. The indemnity damage.
does not include unrealized profits of the
injured party, because defendant’s enrichment Elements [Albenson v. CA, supra].
is the limit of his liability. The plaintiff has the 1. There is an act which is legal;
burden of proving the extent of the benefit or 2. But which is contrary to morals, good
enrichment of the defendant. customs, and public policy; and
3. It is done with intent to injure.
4. Acts Contrary to Law
This article is designed “to expand the concept
of torts and quasi-delict in this jurisdiction by
Art. 20, CC. Every person who, contrary to
granting adequate legal remedy for the untold
law, willfully or negligently causes damage to
number of moral wrongs which is impossible
another, shall indemnify the latter for the
for human foresight to specifically enumerate
same
and punish in statute books” [Baksh v. CA,
supra].
The provision is intended to provide a remedy
in cases where the law declares an act illegal The injury suffered by the plaintiff may refer to
but fails to provide for a relief to the party any determinate right or property, whether
injured. [Jarencio] material or not.
Art. 20 does not distinguish, and the act may The doctrine of proximate cause must apply,
be done willfully or negligently. because the defendant must have caused the
injury through their act or omission. If through
Requisites the plaintiff’s own fault or negligence, they
1. The act must be willful or negligent; sustained injury, they cannot recover.
2. It must be contrary to law; and
3. Damages must be suffered by the Does a “willful” act require malice or
injured party. deceit?
Yes. The Code uses the motive-laden word
Salvador was misdiagnosed with Hepatitis, as “willfully” rather than the comparatively weaker
a result of which she lost her job. During trial, it word “intentionally.” An act which is “willful”
was proven that the clinic was operating under connotes an evil or malicious motive, while an
substandard conditions, in violation of the act which is merely intentional has ordinarily no
Clinical Laboratory Law, DOH Administrative such implication [Carpio, Antonio T., Intentional
Order No. 49-B, and the Philippine Medical Torts in Philippine Law, supra].
Technology Act of 1969. The Court held that
violation of a statutory duty is negligence, and a. Acts contrary to morals, in
that Article 20 provides the legal basis for general
award of damages to a party who suffers
damage whenever one commits an act in Article 21 is the result of adopting moral norms
into actual legal rules, which the Court found as
Page 455 of 532

acceptable, as it notes that the “conscience of injury should have been committed in a manner
man has remained fixed to ancient moorings” contrary to morals, good customs or public
and that this will impart an “enduring quality” to policy [Baksh v. CA, supra].
our laws, which is a desirable thing from the
Court’s perspective.[Velayo v. Shell, G.R. No. (Note on Baksh: The test, however, is
L-7817. (1956)] problematic, in that it employs the concept of
proximate cause even if Article 21 cases do not
A reading of the provision may provide an require the application of proximate cause.)
inference of three requisites for a cause of
action under Article 21: However, when for one whole year, the
1. that one willfully causes injury or loss to plaintiff, a woman of legal age, maintained
another; sexual relations with the defendant, with
2. that it was done in a manner that is repeated acts of intercourse, there is here
contrary to morals, good customs, or voluntariness. No case under Article 21 is
public policy made [Tanjanco v. CA, G.R. No. L-18630
3. That the act done to cause injury or (1966)].
loss must be legal
In an action by the woman, the enticement,
The complaint must ask for damages because persuasion or deception is the essence of the
it presupposes losses or injuries material or injury; mere proof of intercourse is insufficient
otherwise; if complaint doesn’t ask for to warrant a recovery. It is not seduction where
damages, Art. 21 cannot be invoked. the willingness arises out of sexual desire or
[Albenson v. CA, G.R. No. 88694, (1993)] curiosity of the female, and the defendant
merely affords her the needed opportunity for
b. Breach of Promise to Marry and the commission of the act [Tanjanco v. CA,
Moral Seduction G.R. No. L-18630 (1966)].
Mere breach of promise to marry is not an c. Malicious Prosecution

actionable wrong. But to formally set a wedding
and go through all the above-described Malicious prosecution is the institution of any
preparation and publicity, only to walk out of it action or proceeding, either civil or criminal,
when the matrimony is about to be solemnized, maliciously and without probable cause.
is quite different. This is palpably and
unjustifiably contrary to good customs xxx Malicious prosecution is an action for
[Wassmer v. Velez, G.R. No. L-20089 (1964)]. damages brought by one against whom a
criminal prosecution, civil suit, or other legal
Where a man's promise to marry is in fact the proceeding has been instituted maliciously and
proximate cause of the acceptance of his love without probable cause, after the termination of
by a woman and his representation to fulfill that such prosecution, suit, or other proceeding in
promise thereafter becomes the proximate favor of the defendant therein [Magbanua v.
cause of the giving of herself unto him in a Junsay, G.R. No. 132659 (2007)].
sexual congress, proof that he had, in reality,
no intention of marrying her and that the Elements [Magbanua v. Junsay, G.R.
promise was only a subtle scheme or deceptive No.132659 (2007)]
device to entice or inveigle her to accept him 1. The fact of the prosecution or that the
and to obtain her consent to the sexual act, prosecution did occur and that the
could justify the award of damages pursuant to defendant was himself the prosecutor
Article 21 not because of such promise to or that he instigated its
marry but because of the fraud and deceit commencement;
behind it and the willful injury to her honor and 2. That the action finally terminated with
reputation. It is essential, however, that such an acquittal;
Page 456 of 532

3. That in bringing the action, the A person may be held liable under Article 21 if
prosecutor acted without probable they make an accusation against another and
cause acts to prejudice such person, without proof
4. That the prosecutor was actuated or substantiating her accusation
impelled by legal malice, that is, by
improper or sinister motive. e. Oppressive Dismissal
The mere dismissal of the criminal complaint
by the fiscal’s office did not create a cause of The right of an employer to dismiss an
action for malicious prosecution, because the employee is not to be confused with the
proceedings therein did not involve an manner in which this right is to be exercised
exhaustive examination of the elements of and the effects flowing therefrom. If the
malicious prosecution. To constitute such, dismissal was done antisocially or
there must be proof that the prosecution was oppressively, then there is a violation of Article
prompted by a sinister design to vex and 1701, which prohibits acts of oppression by
humiliate a person and that it was initiated either capital or labor against the other, and
deliberately by the defendant knowing that his Article 21, which makes a person liable for
charges were false and groundless [Que v. damages if he willfully causes loss or injury to
IAC, G.R. No. 66865 (1989)]. another in a manner that is contrary to morals,
good customs, or public policy. When the
Malicious prosecution involves not only manner in which the company exercised its
criminal but civil and administrative suits as right to dismiss was abusive, oppressive and
well [Magbanua v. Junsay, supra]. malicious, it is liable for damages [Quisaba v.
Sta. Ines, G.R. No. L-38000 (1974)].
The presence of probable cause signifies as a
legal consequence the absence of malice [Que
v. IAC, G.R. No. 66865 (1989].
B. CLASSIFICATION OF
TORTS
d. Public Humiliation
1. According to Manner of
The circumstances under which the defendant
tried to win Lolita’s affection cannot lead to any Commission
other conclusion than that it was he who,
through an ingenious scheme or trickery, a. Intentional Torts
seduced the latter to the extent of making her
fall in love with him. The wrong he has caused Liability for personal acts or omission is
her and her family is indeed immeasurable founded on that indisputable principle of justice
considering the fact that he is a married man. recognized by all legislators that when a
Verily, he has committed an injury to Lolita's person by his act or omission causes damage
family in a manner contrary to morals, good or prejudice to another, a juridical relation is
customs and public policy as contemplated in created by virtue of which the injured person
Article 21 of the new Civil Code [Pe v. Pe, G.R. acquires a right to be indemnified and the
No. L-17396 (1962)]. person causing the damage is charged with the
corresponding duty of repairing the damage.
It is against morals, good customs and public The reason for this is found in the obvious truth
policy to humiliate, embarrass and degrade the that man should subordinate his acts to the
dignity of a person. Everyone must respect the precepts of prudence and if he fails to observe
dignity, personality, privacy and peace of mind them and cause damage to another, he must
of his neighbors and other persons (Article 26, repair the damage [Manresa].
CC) [Grand Union v. Espino, G.R. No. L-48250
(1979)].
Page 457 of 532

Elements of Intentional Torts which consists in a failure to observe the

A tort is intentional when the tortfeasor: requisite due care given circumstance.
1. Desires the consequence of their act;
or Will Motive Be Material? Generally, motive is
2. They believe that the consequences immaterial. But it may be used to aggravate or
are substantially certain to result from mitigate the harmful consequences resulting
his act. from an intentional tort
How is intent proved? 2. According to Scope

The defendant’s intent is usually proved
circumstantially, or is inferred from their a. Human Relations Tort
conduct. If the defendant’s conduct causes
injury, they are presumed to intend the natural Liability for personal acts or omission is
consequences of their act. founded on that indisputable principle of justice
recognized by all legislators that when a
b. Negligent Torts person by his act or omission causes damage
or prejudice to another, a juridical relation is
Negligence created by virtue of which the injured person
It is the omission to do something which a acquires a right to be indemnified and the
reasonable man, guided by those person causing the damage is charged with the
considerations which ordinarily regulate the corresponding duty of repairing the damage.
conduct of human affairs, would do, or the The reason for this is found in the obvious truth
doing of something which a prudent and that man should subordinate his acts to the
reasonable man would not do [Layugan v. IAC, precepts of prudence and if he fails to observe
G.R. No. 73998 (1988)]. them and cause damage to another, he must
repair the damage [Manresa].
The diligence with which the law requires the
individual to at all times govern his conduct Human Relations provisions in the Civil Code
varies with the nature of the situation in which include Art. 19 (Abuse of Rights) , Art. 20 (Acts
he is placed and the importance of the act Contrary to Law), Art. 21 (Acts contrary to
which he is to perform [Jorge v. Sicam, G.R. morals), and Art. 26 (Violation of Human
No. 159617 (2007)]. Dignity).
INTENTIONAL TORTS NEGLIGENT b. Strict Liability Tort

TORTS
Harmful consequences The act or omission This refers to instances where negligence is
are substantially certain merely creates a not required to be proven to incur liability; and
to occur or are intended foreseeable risk or diligence is not a defense.
harm, which may or
may not actually be This includes Articles 1711, 1723, 2183, 2187,
realized 2189-2193
The difference lies in the certainty of the [See H. Special Liability in Particular Activities;
I. Strict Liability.]
harmful consequences. Where in intentional
torts there is substantial certainty of harmful
consequences, in negligence, the conduct of c. Independent Civil Actions
the defendant creates a risk or harm which may
or may not result. This comparison is Civil Code provisions on independent civil
consistent with the definition of negligence, actions include Articles 32-35.
Page 458 of 532

In these cases, a civil action may be filed Note: Damage under the 2nd requisite pertains
independently of the criminal action, even if to injury. [PNR v. Brunty, G.R. No. 169891 (2006)]
there has been no reservation made by the
injured party; the law in itself makes such b. Juridical Persons
reservation. The result of the civil action is thus
independent of the result of the criminal action. For juridical persons, the rules on vicarious
liability in the next section applies.
The underlying purpose for this independent
civil action is to allow the citizen to enforce his 2. Persons made responsible for
rights in a private action brought by him,
regardless of the action of the State attorney. others
[Tolentino]
Art. 2180, CC. The obligation imposed by
Article 2176 is demandable not only for one’s
C. THE TORTFEASOR own acts or omissions, but also for those of
persons for whom one is responsible.
xxx
1. Direct Tortfeasor
The responsibility treated of in this article
Art. 2176, CC. Whoever by act or omission shall cease when the persons herein
causes damage to another, there being fault mentioned prove that they observed all the
or negligence, is obliged to pay for the diligence of a good father of a family to
damage done. Such fault or negligence, if prevent the damage.
there is no pre-existing contractual relation
between the parties, is called a quasi-delict Doctrine of Vicarious Liability (Art. 2180)
and is governed by the provisions of this The obligation imposed under Art. 2176 (i.e., to
Chapter. pay for injury suffered) is also demandable
from those persons (natural or juridical) who
The direct tortfeasor is one who is made liable are responsible for the person who has
for a tort committed through his own acts. The committed a quasi-delict (i.e., the direct
tortfeasor may be a natural or juridical tortfeasor).
person.
Under this, liability is primary and direct
a. Natural Persons (solidarily liable with the direct tortfeasor), not
subsidiary. It is not conditioned upon the
In order for one to be liable as a direct insolvency of or prior recourse against the
tortfeasor, the requisites of Art. 2176 must be direct tortfeasor.
fulfilled:
1. Act or omission Note: Art. 2180 does not provide for automatic
2. Damage to another liability. It only gives rise to a presumption of
3. Fault or negligence negligence on the part of the persons
4. No pre-existing contractual relation mentioned. The presumption is rebuttable by a
showing of the person’s exercise of the
In other words, the direct tortfeasor is liable for diligence required (See ‘Available Defense’ in
quasi-delict. Liability consists in the payment the following sections).
of damages for the injury suffered.
Rationale
To extend liability by legal fiction to those in a
position to exercise absolute or limited control
Page 459 of 532

over the direct tortfeasor. These persons b. Oldest qualified sibling over 21
become liable for their own omission to years
comply with their duty to exercise c. Child’s actual custodian, provided
supervision over the persons for whom they he is qualified and over 21 years
are responsible. 4. Special Parental Authorities
a. School
When Not Applicable b. Administrators
When moral culpability can be directly imputed c. Teachers
to the direct tortfeasor, as when there is actual d. Individual, entity, or institution
intent to cause harm to others. engaged in child care
Persons Available Defense

For Damages Caused
Vicariously Proof that the parent/guardian observed all
By:
Liable: diligence of a good father of a family to prevent
Parents Minor children who live in the damage.
their company
Guardians Minors or incapacitated 1. Parents
children who are under Art. 2180 (2), CC. The father and, in case of
their authority and live in his death or incapacity, the mother, are
their company responsible for the damages caused by the
Owners and Employees in the service minor children who live in their company.
managers of an of the branches in which
establishment the latter are employed or
or enterprise on the occasion of their Art. 211, FC. Parents and other persons
functions exercising parental authority shall be civilly
Employers Employees and liable for the injuries and damages caused
household helpers acting by the acts or omissions of their
within the scope of their unemancipated children living in their
assigned tasks; even company and under their parental authority
though the former are not subject to the appropriate defenses provided
engaged in any business by law.
or industry
State Special agents
Parents are responsible for their minor
Teachers of Pupils and students or
children who live in their company.
heads of apprentices, so long as
establishments they remain in their
“Minors” Defined
of arts and custody
Minors refer to those who are below 21 years
trade
old, not below 18 years. The law reducing
majority age did not amend Art. 2180. The
a. Persons Exercising Parental basis is the Art. 236(3) of the Family Code, as
Authority
amended by RA 6809, which provides that
nothing in the Family Code shall be construed
Parental Authority to derogate from the duty or responsibility of
It consists, to a large extent, of the instruction
parents and guardians for children and wards
and supervision of the child. May be exercised
below 21 years of age mentioned in Art. 2180,
by:
CC.
1. Parents/Adoptive parents
2. Court-appointed guardians
3. Substitute Parental Authorities
a. Grandparents
Page 460 of 532

Death/Incapacity of Father Irrelevant “Incapacitated” Defined (Rule 92, Rules of

The provision in Art. 2180, which makes the Court)
mother liable only upon the death/incapacity of Also known as those who are “incompetent:”
the father is no longer operative due to Family 1. Those suffering penalty of civil interdiction
Code provisions: 2. Prodigals
• Art. 221 states that persons exercising 3. Deaf and dumb unable to read and write
parental authority shall be civilly liable 4. Unsound mind, even though they have
for the torts of the children in their care. lucid intervals
• Art. 211 states that both the father and 5. Being of sound mind, but by reason of age,
the mother exercise parental authority. disease, weak mind, and other similar
causes, cannot take care of themselves or
Note: Even if the complaint for damages is filed manage their property
when parental authority is already lodged with
the adoptive parents, the parents who shall Minors or incapacitated tortfeasors without
be made vicariously liable are those who a parent or guardian (Art. 2182)
exercised parental authority at the time the Answerable with his own property in an action
quasi-delict was committed. In this case, it against him. A guardian ad litem shall be
was the biological parents. [Tamargo v. IAC, appointed.
G.R. No. 85044 (1992)]
b. Teachers and Schools
Basis of liability of parents and adopters
Parental liability is anchored upon parental Art. 2180 (7), CC. Lastly, teachers or heads
authority coupled with presumed parental of establishments of arts and trades shall be
dereliction in the discharge of the duties liable for damages caused by their pupils
accompanying such authority. The parental and students or apprentices, so long as they
dereliction is, of course, only presumed and the remain in their custody.
presumption can be overturned under Article
2180 CC, by proof that the parents had
exercised all the diligence of a good father of a Art. 218, FC. The school, its administrators
family to prevent the damage [Tamargo v. CA, and teachers, or the individual, entity or
supra]. institution engaged in child shall have special
parental authority and responsibility over the
Illegitimate children minor child while under their supervision,
Responsibility is with the mother whom the law instruction or custody.
vests with parental authority. Authority and responsibility shall apply to all
authorized activities whether inside or
2. Guardians outside the premises of the school, entity or
institution.
Art. 2180 (3), CC. Guardians are liable for
damages caused by the minors or Art. 219, FC. Those given the authority and
incapacitated persons who are under their responsibility under the preceding Article
authority and live in their company. shall be principally and solidarily liable for
damages caused by the acts or omissions of
The liability of guardians with respect to their the unemancipated minor. The parents,
wards is governed by the same rule as in the judicial guardians or the persons exercising
liability of parents with respect to their children substitute parental authority over said minor
below 21 years and who live with them. shall be subsidiarily liable.
Page 461 of 532

Available Defense
The respective liabilities of those referred to
Proof that the teacher/school observed all
in the preceding paragraph shall not apply if
diligence of a good father of a family to prevent
it is proved that they exercised the proper
the damage.
diligence required under the particular
circumstances.
Under the Civil Code (Art. 2180)
Teachers Heads
All other cases not covered by this and the
Arts and
preceding articles shall be governed by the Institu- Academic
trades,
provisions of the CC on quasi-delicts. tion institutions
establishments
Teacher in
Under Art. 2180, teachers or heads of Head of
Liable charge; not
establishments of arts and trades are establishment
administrator
responsible for their pupils and students or Custody Required
apprentices, so long as they remain in the Heads of
former’s custody, regardless of age. academic Heads of
institutions establishments
Under the Family Code, liability attaches to the exercise only of arts and
school, its administrators and teachers, or the administrative trades have
individual or entity engaged in child care, so Rationale
authority over apprentices,
long as the child is under their supervision, the students, who they are in
instruction, or custody, and the child is below and are not in close proximity
18 years old. close proximity to.
to them.
Basis of liability
The persons vicariously liable stand in loco Under the Family Code
parentis and are called upon to exercise School, Parents,
reasonable supervision over the conduct of the Administrators, Guardians,
students. Teachers, etc. etc.
Provided
Art. 218 Art. 219
“Custody” Defined by
“Custody” means the protective and Parental
supervisory custody that the school, its head Kind of authority or
Special parental
and teachers exercise over the pupils, for as authority substitute
authority
long as they are in attendance in school, which required parental
includes recess time. It is not required that the authority
student must live and board in the school. Liability if
tort is Principal and
Custody does not connote immediate and Subsidiary
committed solidary
actual physical control. It refers more to the
in school
influence exerted on the student and the
discipline instilled in him. [Palisoc v. Brillantes,
G.R. No. L-29025 (1971)] Students covered
ARTS. 218-219 ART. 2180

As long as it is shown that the student is in the
school premises pursuant to a legitimate All students, even those no
student objective, in the exercise of a legitimate Minor students longer minors, as long as they
right, or the enjoyment of a legitimate student only remain in the custody of the
privilege, the responsibility of the school persons responsible
authorities over the student continues.
[Amadora v CA, G.R. No. L-47745 (1988)]
Page 462 of 532

c. Owners, Managers of Respondeat

Establishments, Employers Pater familias
superior
There is only a
Art. 2180 (4), FC. The owners and Master is absolutely
presumption of
managers of an es ablis
t h
ment or enterpris e liable to servant’s act
negligence on the part
are lik w e is e res p
onsible for damages or omission
of the employer
c u
as d e by their employ es in the s rev ci eof
the branches in whic h the latter are No defense of Defense of negligence
employ d e or on the oc cs aon i of their negligence available
func ions
t .
Embodied in the
Embodied in primary
subsidiary liability
liability under Art.
under RPC – no
Art. 2180 (5), FC. Employers shall be liable 2180, where the
defense of diligence;
for the damages caused by their employees defense of diligence is
only lack of criminal
and household helpers acting within the available
liability
scope of their assigned tasks, even though
the former are not engaged in any business
or industry. Basis of liability
Employer’s negligence in:
1. The selection of their employees (culpa
Nature of employers’ liability in eligiendo)
2. The supervision over their employees
The basis of his liability is not his (culpa in vigilando)
employee’s negligence, but his
Direct
own negligence in hiring and The liability imposed upon employers with
supervising the employee. respect to damages occasioned by the
The amount for which he is liable negligence of their employees to whom they
may be pursued without having to are not bound by contract is based on the
Primary exhaust the employee’s assets, as employer’s own negligence, such as when he
opposed to subsidiary liability places a powerful automobile in the hands of a
under the RPC. servant whom he knows to be ignorant of the
method of managing such vehicle [Cangco v.
He may recover the full amount of Manila Railroad, supra].
the liability from his employee, as
Solidary per Art. 2181, and not merely a Presumption of Negligence
prorated amount, unlike in Art. The presentation of proof of the negligence of
2184, CC. its employee gives rise to the presumption that
the defendant employer did not exercise the
What must be established for vicarious diligence of a good father of a family in the
liability: selection and supervision of its employees
1. Existence of an employer-employee [Lampesa v. De Vera, G.R. No. 155111
relationship between company and (2008)].
tortfeasor
2. Tortious act had been committed while Available Defense
the tortfeasor was acting in the normal Proof of due care and diligence in the:
course of employment 1. Selection of employees
a. Careful examination of the
Basis for liability is not respondeat superior, but applicant for employment as to his
pater familias. qualifications, experience and
record of service
2. Supervision of employees
Page 463 of 532

a. Formulation of standard operating 1. Owners and Managers of an

procedures, suitable rules and Establishment or Enterprise (Art.
regulations, and issuance of proper 2180(4))
instructions
b. Monitoring of their implementation They are responsible for employees in the
c. Imposition of disciplinary measures service of the branches in which the latter are
in case of their breach employed or on the occasion of their functions.
When Applicable “Manager” Defined

Vicarious liability arises when there is an This does not include a manager of a
employer-employee relationship. To determine corporation, as such is not an employer, but
its existence, the “control test” is used. Under merely an employee of the corporation.
this, a relationship exists if the “employer” [Philippine Rabbit v. Philam Forwarders, G.R.
controls both the means and the details of the No. L-25142 (1975)].
process by which the “employee” is to
accomplish his task. [Professional Services v. 2. Employers (Art. 2180(5))
CA and Agana, G.R. No. 126297 (2010)]. They are responsible for employees and
household helpers acting within the scope of
Criminal Negligence their assigned tasks; even though the former
The vicarious liability of the employer for are not engaged in any business or industry.
criminal negligence of his employee is
governed by RPC 103. Conviction of the “Within the scope of their assigned task” in Art.
employee conclusively binds the employer. 2180 includes any act done by an employee in
Defense of due diligence in the selection and furtherance of the interests, or for the account
supervision of the employee is not available. of the employer at the time of the infliction of
The employer cannot appeal the conviction the injury or damage [Filamer v. CA, G.R. No.
[Fernando v. Franco (1971)]. 75112 (1990)].
Note: The liability of the employer under Art. Distinguishing Par. 4 and Par. 5
103 RPC is subsidiary. The distinction is necessary to determine which
paragraph is applicable:
Registered Owner Rule 1. Kind of employer made liable:
The registered owner of the vehicle is primarily a. Par. 4: To owners and managers of
responsible to the public for whatever damage an establishment or enterprise
or injury the vehicle may have caused, even if b. Par. 5: To employers in general,
he had already sold the same to someone else. whether or not engaged in any
The policy is the easy identification of the business or industry
owner who can be held responsible so as not 2. Acts of employees responsible for:
to inconvenience or prejudice the third party a. Par. 4: Negligent acts committed
injured [Cadiente v. Macas (2008)]. The either in the service of the branches
registered owner, however, has the right to be or on the occasion of their functions
indemnified by the real or actual owner of the b. Par. 5: Negligent acts done within
amount that he may be required to pay as the scope of their assigned task
damages for the injury caused to the plaintiff
[Orix Metro Leasing v. Mangalinan (2012)]. However, essentially, there is no distinction
This rule applies even if the vehicle is leased to between the two. It can be said that Par. 5 is
third persons. The liability of the registered merely an expansion of what has been
owner is subject to his right of recourse against provided for under Par. 4. [Castilex v. Vasquez,
the transferee or buyer. G.R. No. 132266 (1999)]
Page 464 of 532

d. The State pertain to his office [Merritt v. Government of

the Philippine Islands, G.R. No. 11154 (1960)].
Sec. 3, Art. XVI, 1987 Constitution. The
A corporate body (e.g., GOCCs) performing
State may not be sued without its consent.
non-governmental functions becomes liable for
the damage resulting from the tortious act of its
Art. 2180 (6), CC. The State is responsible employee. Liability will be that of an ordinary
in like manner when it acts through a special employer under Par. 4 or 5, Art. 2180.
agent; but not when the damage has been [Fontanilla v. Maliaman, G.R. No. 55963
caused by the official to whom the task done (1991)].
properly pertains, in which case what is
provided in Article 2176 shall be applicable. Why the State Cannot be Sued
Neither fault nor negligence can be presumed
on the part of the State in the organization of
Who may be sued under the State branches of public service and in the
1. A special agent under Art. 2180 appointment of its agents. Also, suing the
2. Instrumentalities discharging proprietary State will divert its focus from the delivery of
functions necessary public services.
a. The power to enter into contracts
implies the consent to be sued
b. The charter of the instrumentality
3. Joint tortfeasors
may expressly provide that it may
be sued Art. 2194, FC. The responsibility of two or
3. Those that consent to be sued more persons who are liable for quasi-delict
is solidary.
Instances where the State gives its consent
to be sued
Joint tortfeasors are all persons responsible
1. Art. 2180 (6) is an example of an express
for a quasi-delict. They are all persons who
legislative consent. Here, the State
command, instigate, promote, encourage,
assumes a limited liability for the acts of its
advise, countenance, cooperate in, aid or abet
special agents.
in the commission of a tort, or who approve of
2. Art. 2189 provides for state liability for
it after it is done, if done for their benefit. Under
damages caused by defective condition of
Art. 2194, their responsibility is solidary.
public works.
3. Local Government Code provides for the
When Applicable
liability of local government units for
When the concurrent or successive negligent
wrongful exercise of its proprietary (as
acts or omissions of two or more persons,
opposed to its governmental) functions.
although acting independently, are together the
The latter is the same as that of a private
direct and proximate cause of a single injury to
corporation or individual. [Mendoza v. de
a third person, and it is impossible to determine
Leon, G.R. No. L-9596 (1916)]
in what proportion each contributed to the
injury and either of them is responsible for the
“Special Agent” Defined
whole injury. Where their concurring
One who receives a definite and fixed order or
negligence resulted in injury or damage to a
commission, foreign to the exercise of the
third party, they become joint tortfeasors and
duties of his office (if he is a special official).
are solidarily liable for the resulting damage.
Does not pertain to any executive agent who is
[Far Eastern Shipping v. CA, G.R. No. 130068
an employee of the active administration and
(1998)]
who on his own responsibility performs
functions which are inherent and naturally
Page 465 of 532

2. Foreseen by a person of ordinary care that

the injury complained of or some similar
D. PROXIMATE CAUSE injury would result from the cause as a
natural and probable consequence.
[Pilipinas Bank v. CA, G.R. No. 105410
1. Concept (1994)]
In order that civil liability for negligence may Proximate cause not immediately resulting
arise, there must be a direct causal connection in injury but sets in motion a chain of
between the damage suffered by the plaintiff events, which eventually result in injury:
and the act or omission of the defendant. a. That cause acting first and producing the
injury, by setting other events in motion, all
Plaintiff, however, must establish a sufficient constituting a natural and continuous
link between the act or omission and the chain, each having a close causal
damage or injury. That link must not be remote connection with its immediate predecessor,
or far-fetched; otherwise, no liability will attach. the final event in the chain immediately
The damage or injury must be a natural and effecting the injury as a natural and
probable result of the act or omission. [Dy probable result of the first cause, under
Teban Trading, Inc. v. Ching, G.R. No. 161803 such circumstances that the person
(2008)] responsible for the first event should, as an
ordinary prudent and intelligent person,
Note: It is not required that it be shown that the have reasonable ground to expect at the
injury would not have occurred without the act moment of his act that an injury might
or omission complained of. It only requires probably result therefrom.
some reasonable connection between the act b. Also known as the proximate legal cause
or omission and the injury. c. A cause is still proximate, although farther
in time to the injury, if the happening of it
If the actor’s conduct is a material element and set other foreseeable events into motion
a substantial factor in bringing about harm to resulting ultimately in the damage.
another, the fact that the actor neither foresaw [Abrogar v. Cosmos Bottling Co., G.R. No.
nor should have foreseen the extent of the 164749 (2017)]
harm or the manner in which it occurred does
not prevent him from being liable [Philippine Respondent was mistakenly given Dormicum,
Rabbit v. IAC, G.R. No. 66102-04 (1990)] a potent sleeping tablet, instead of medication
for his blood sugar. He took a pill for 3
There is no exact formula to determine consecutive days and on the third day, he fell
proximate cause. It is based upon mixed asleep on the wheel and figured in a vehicular
considerations of logic, common sense, policy accident. The Court found that the proximate
and precedent. [Dy Teban Trading, Inc. v. cause of the accident was the Mercury Drug
Ching, G.R. No. 161803 (2008)] employee’s mistake in reading the prescription
[Mercury Drug v. Baking, G.R. No. 156037
Two Definitions (2007)].
Proximate cause immediately resulting in Note: Here, 3 days have elapsed from the time
injury: of the negligent act determined by the Court as
1. That cause, which, in natural and the proximate cause; thus, the Court did not
continuous sequence, unbroken by any consider the time element in determining
efficient intervening cause, produces the proximate cause but the nature and gravity of
injury, and without which the result would the injury.
not have occurred. [Bataclan v. Medina,
G.R. No. 10126 (1957)]
Page 466 of 532

Differentiated from other cause of an event if the particular event would

causes not have occurred without it.
Concurrent Cause 3. Efficient Intervening Cause

A concurrent cause is one, which along with
other causes, produces the injury. Each cause The test of determining whether or not the
is an efficient cause without which the injury intervening cause is sufficient to absolve a prior
would not have happened. Injury is attributed cause of the injury is as follows: whether the
to any or all the causes, and recovery may be intervention of a later cause is a significant part
had against any or all of those responsible. of the risk involved in the defendant’s conduct
or is so reasonably connected with it that the
Note: They’re the same thing from the point of responsibility should not be terminated. In the
view of solidarity. affirmative, such foreseeable intervening
forces are within the scope of the original risk,
As a general rule, that negligence in order to and hence of the defendant’s negligence. In
render a person liable need not be the sole the negative, there exists an efficient
cause of an injury. It is sufficient that his intervening cause that relieves the defendant
negligence, concurring with one or more of liability.
efficient causes other than the plaintiff’s, is the
proximate cause of the injury. Foreseeable Intervening Cause
If the intervening cause is one which in ordinary
Remote Cause human experience is reasonably to be
A remote cause is one, which would have been anticipated, or one which the defendant has
a proximate cause, had there been no efficient reason to anticipate under the particular
intervening cause after it and prior to the injury. circumstances, the defendant may be
negligent, among other reasons, because of
It cannot be made the basis of an action if such failure to guard against it. There is an
did nothing more than furnish the condition or intervening cause combining with the
give rise to the occasion by which the injury defendant’s conduct to produce the result, and
was made possible, if there intervened the defendant’s negligence consists in failure
between such prior or remote cause and the to protect the plaintiff against that very risk
injury a distinct, successive, unrelated, and [Phoenix Construction v. IAC, G.R. No. L-
efficient cause of the injury, even though such 65295 (1987)].
injury would not have happened but for such
condition or occasion [Manila Electric v. Efficient Intervening Cause
Remonquillo, G.R. No. L-8328 (1956)]. When there is an intervening cause, which is
not a consequence of the first wrongful cause
Intervening Cause (not under the control of the first wrongdoer and
An intervening cause is an event that takes could not be foreseen), that eventually leads to
place after the first cause and before the injury. an injury, the first wrongful cause can no longer
(See Efficient Intervening Cause) be considered the proximate cause. [Abrogar
v. Cosmos Bottling Co., G.R. No. 164749
2. Cause in Fact (2017)]
Whether such negligent conduct is a cause 4. Cause as distinguished from

without which the injury would not have condition
occurred or is the efficient cause which set in
motion the chain of circumstances leading to The distinction between cause and condition
the injury. [Bataclan v. Medina, G.R. No. 10126 has been almost entirely discredited. So far as
(1957)] An act or omission is not regarded as a it has any validity at all, it must refer to the type
Page 467 of 532

of case where the forces set in operation by the the loss, would exonerate the defendant
defendant have come to rest in a position of from liability. Such contributory negligence
apparent safety, and some new force or last clear chance by the plaintiff merely
intervenes. But even in such cases, it is not the serves to reduce the recovery of damages
distinction between “cause” and “condition” by the plaintiff but does not exculpate the
which is important, but the nature of the risk defendant from his breach of contract
and the character of the intervening cause. [Consolidated Bank v. CA, G.R. No.
[Phoenix Construction v. IAC, G.R. No. L- 138569 (2003)]
65295 (1987)]. c. When the party charged is required to act
instantaneously, and if the injury cannot be
5. Last Clear Chance avoided by the application of all means at
hand after peril is or should have been
The test is also known as the “Doctrine of discovered [Pantranco v. Baesa, G.R. No.
Discovered Peril” or “Doctrine of Supervening 79050-51 (1989)]
Negligence” or “Humanitarian Doctrine.” d. The doctrine of last clear chance, as
enunciated in Anuran v. Buno, applies in a
Effect on Plaintiff's Right to Recover suit between the owners and drivers of
The antecedent negligence of the plaintiff does colliding vehicles. It does not arise where a
not preclude him from recovering damages passenger demands responsibility from the
caused by the supervening negligence of the carrier to enforce its contractual
defendant, who had the last fair chance to obligations. It will be inequitable to exempt
prevent the impending harm by the exercise of the negligent driver of the jeepney and its
due diligence. [PNR v. Brunty, G.R. No. owners on the ground that the other driver
169891 (2006)] was likewise guilty of negligence
[Bustamante v. CA, G.R. No. 89880
Establishing the Defendant’s Liability (1991)].
Where both parties are negligent, but the
negligent act of one is appreciably later in time Note:
than that of the other, or when it is impossible • If plaintiff is the proximate cause: no
to determine whose fault or negligence should recovery can be made.
be attributed to the incident, the one who had • If plaintiff is not the proximate cause:
the last clear opportunity to avoid the Recovery can be made but such will be
impending harm and failed to do so is mitigated.
chargeable with the consequences. [Philippine • If negligence of parties is equal in degree,
Bank of Commerce v. CA, G.R. No. 97626 then each bears his own loss.
(1997)]
It is necessary to show that the person who E. LEGAL INJURY

allegedly had the last opportunity to avert the
accident was aware of the existence of the
peril, or should, with exercise of due care, have 1. Concept
been aware of it. [Pantranco v. Baesa, G.R. No.
79050-51 (1989)]
In order that the law will give redress for an act
causing damage, that act must be not only
When Not Applicable
hurtful, but wrongful. The damage must be
a. Where the proximate cause of the injury
damnum et injuria or legal injury.
has been established [PNR v. Brunty, G.R.
No. 169891 (2006)]
To warrant the recovery of damages, there
b. In a case of culpa contractual, where
must be:
neither the contributory negligence of the
plaintiff nor his last clear chance to avoid
Page 468 of 532

1. Right of action for a legal wrong inflicted by 3. Violation of right or legal

the defendant
2. Damage resulting to the plaintiff therefrom injury
Injury v. Damage v. Damages [Custodio v. Under Articles 19 to 21 of the Civil Code, an act
CA, supra] which causes injury to another may be made
• Injury: The illegal invasion of a legal right the basis for an award of damages.
(i.e., legal injury) The elements of an abuse of right under Article
• Damage: The loss, hurt, or harm which 19 are the following: (1) There is a legal right or
results from the injury duty; (2) which is exercised in bad faith; (3) for
the sole intent of prejudicing or injuring
• Damages: The compensation awarded for
another. Article 20 speaks of the general
the damage suffered
sanction for all other provisions of law which do
not especially provide for their own sanction.
Distinguished from Damnum Absque
Thus, anyone who, whether willfully or
Injuria
If a person sustains actual damage (harm or negligently, in the exercise of his legal right or
loss to his person or property) that is not duty, causes damage to another, shall
indemnify his victim for injuries suffered
considered by law as an injury (i.e., legal
injury), such damage is regarded as damnum thereby.
Article 21 deals with acts contra bonus mores,
absque injuria. [Custodio v. CA, G.R. No.
116100 (1996)] and has the following elements: 1) There is an
act which is legal; 2) but which is contrary to
morals, good custom, public order, or public
The proper exercise of a lawful right cannot
policy; 3) and it is done with intent to injure.
constitute a legal wrong for which an action will
[Albenson v. CA, G.R. No. 88694 (1993)]
lie, although the act may result in damage to
another, for no legal right has been invaded.
[Custodio v. CA, supra] 4. Classes of injury
There can be damage without injury in those Legal Injury
instances in which the loss or harm was not the
result of a violation of a legal duty. In such In order that a plaintiff may maintain an action
cases, the consequences must be borne by the for the injuries of which he complains, he must
injured person alone. establish that such injuries resulted from a
breach of duty which the defendant owed to the
plaintiff, and concurrence of injury to the
2. Elements of right plaintiff and legal responsibility by the person
causing it. The underlying basis for the award
The legal rights of each member of society of tort damages is the premise that an
constitute the measure of the corresponding individual was injured in contemplation of law.
legal duties, mainly negative in character, Thus, there must first be the breach of some
which the existence of those rights imposes duty and the imposition of liability for that
upon all other members of society. The breach breach before damages may be awarded; it is
of these general duties whether due to willful not sufficient to state that there should be tort
intent or to mere inattention gives rise to an liability merely because the plaintiff suffered
obligation to indemnify the injured party. some pain and suffering. [Custodio v. CA,
[Cangco v. Manila Railroad Co., G.R. No. supra]
12191 (1918)]
Damnum absque injuria
Under this principle, the legitimate exercise of

a person's rights, even if it causes loss to
Page 469 of 532

another, does not automatically result in an 2. Interference with rights to

actionable injury. The law does not prescribe a
remedy for the loss. This principle does not, persons and property
however, apply when there is an abuse of a
person's right, or when the exercise of this right a. Abuse of right
is suspended or extinguished pursuant to a
court order. Indeed, in the availment of one's Art. 19, CC. Every person must, in the
rights, one must act with justice, give their due, exercise of his rights and in the performance
and observe honesty and good faith. [Amonoy of his duties, act with justice, give everyone
v. Gutierrez, G.R. No. 140420 (2001)]. his due, and observe honesty and good faith.
The proper exercise of a lawful right cannot

constitute a legal wrong for which an action will Elements [Albenson v. CA, G.R. No. 88694
lie, although the act may result in damage to (1993)]:
another, for no legal right has been invaded. 1. There is a legal right or duty;
One may use any lawful means to accomplish 2. Which is exercised in bad faith;
a lawful purpose and though the means 3. For the sole intent of prejudicing or injuring
adopted may cause damage to another, no another.
cause of action arises in the latter's favor. An
injury or damage occasioned thereby is [See A.1. Abuse of Right]
damnum absque injuria. The courts can give
no redress for hardship to an individual b. Breach of statutory duty
resulting from action reasonably calculated to
achieve a lawful means. [Custodio v. CA, Art. 20, CC. Every person who, contrary to
supra] law, willfully or negligently causes damage to
another, shall indemnify the latter for the
same.
F. INTENTIONAL TORTS
Violation of a statutory duty is negligence
[Garcia v. Salvador, G.R. No. 168512 (2007)].
1. General
Requirements [Carpio, Antonio T., Intentional
Concept Torts in Philippine Law, 47 PHIL L. J. 649, 651-
662 (1972)]:
Intentional torts include conduct where the 1. Plaintiff must establish that he belongs
actor desires to cause the consequences of his to the class of persons sought to be
act or believes the consequences are protected by the statute; and
substantially certain to result from it [Aquino]. 2. There must be an invasion of a
particular interest the law seeks to
[See also B. Classification of Torts.] protect.
Classes With the exception of laws which especially

grant civil indemnity for damages resulting
1. Adopted from American from breach thereof, Art. 20 applies to all
jurisprudence (Articles 26, 32, and appropriate laws, whether criminal or
1314, CC) otherwise.
2. Taken from the codes of civil law
jurisdictions (Articles 19, 20, 21, 23, [See A.4. Acts Contrary to Law.]
27, and 28, CC)
Page 470 of 532

c. Contra bonus mores e. Rights under Art. 26, CC
Art. 21, CC. Any person who willfully causes Art. 26, CC. Every person shall respect the
loss or injury to another in a manner that is dignity, personality, privacy and peace of
contrary to morals, good customs or public mind of his neighbors and other persons.
policy shall compensate the latter for the The following and similar acts, though they
damage. may not constitute a criminal offense, shall
produce a cause of action for damages,
prevention and other relief:
Elements [Albenson v. CA, supra]
1. There is an act which is legal;
(1) Prying into the privacy of another’s
2. But which is contrary to morals, good
residence;
custom, public order, or public policy;
(2) Meddling with or disturbing the
and
private life or family relations of
3. It is done with intent to injure.
another;
(3) Intriguing to cause another to be
Examples of acts contra bonus mores
alienated from his friends;
• Breach of Promise to Marry and Moral
(4) Vexing or humiliating another on
seduction
account of his religious beliefs, lowly
• Malicious prosecution
station in life, place of birth, physical
• Public humiliation
defect, or other personal condition.
• Oppressive dismissal
[See A.5. Acts contrary to morals] Note: The enumeration under Art. 26 is merely
illustrative. It extends to “similar acts,”
d. Damage to property regardless of whether they constitute a
criminal·offense or not. Thus, the prohibition in
No. 1 is not limited to invasion of the privacy of
Art. 23, CC. Even when an act or event residence; encroachment on one’s personal
causing damage to another's property was privacy is included.
not due to the fault or negligence of the
defendant, the latter shall be liable for
f. Right to personal dignity
indemnity if through the act or event he was
benefited.
Violation of the right to personal dignity is
analogous to the American law concept of
This article is based on equity. An involuntary defamation. Defamation is an invasion of a
act, because of its character, cannot generally person’s right to enjoy a reputation and good
create an obligation; but when by such act its name unimpaired by false attacks which tend
author has been enriched, it is only just that he to diminish the esteem in which a person is
should indemnify for the damages caused, to held by men whose standard of opinion the
the extent of his enrichment. The indemnity court can properly recognize. The reputation
does not include unrealized profits of the that is protected is the opinion of others
injured party, because defendant’s enrichment [Carpio, Antonio T., Intentional Torts in
is the limit of his liability. The plaintiff has the Philippine Law, supra].
burden of proving the extent of the benefit or
enrichment of the defendant. [Tolentino] Is malice required?
a. Under the Revised Penal Code: malice
is required as an element of
defamation.
b. As a tort action under Art. 26, CC:
Page 471 of 532

i. General rule: malice on the apprehension [Carpio, Antonio T., Intentional

part of the defendant need not Torts in Philippine Law, supra].
be proved by the plaintiff.
ii. Exception: malice or ill will h. Right to privacy
remain important where the
exercise of a qualified privilege The right of privacy has been concisely defined
is in question. as “the right to be let alone.” The
interference of the right, to be actionable, must
g. Right to personal security be serious and outrageous, or beyond the
limits of common ideas of decent conduct.
A violation of the right to personal security is
identical with the American intentional torts of Invasion of the right of privacy involves four
battery and assault. distinct types of tort:
1. intrusion upon the plaintiff's physical
Battery is the actual and willful infliction of and mental solitude;
any unlawful or unauthorized violence on the 2. public disclosure of private facts;
person of another, irrespective of its degree. 3. placing the plaintiff in false light in the
The interest protected by this action is the public eye; and
freedom from intentional and unpermitted 4. the commercial appropriation of the
contacts with the plaintiff’s person. The term plaintiff’s name or likeness.
“person” includes any part of the body, or
anything attached to it and practically identified Note: The right of privacy does not prohibit the
with it. Accordingly, the slightest contact with publication of materials which are of legitimate
the plaintiff's clothes or anything attached to his public or general interest.
person constitutes battery. No harm or actual
damage of any kind is required. It has been frequently held that those who
unwillingly court public attention become
Assault is the intentional, unlawful offer of reluctant public figures and “until they have
physical injury to another by force unlawfully reverted to the lawful and unexciting life led by
directed toward the person of another, under the great bulk of the community, they are
such circumstances as to create a well- subject to the privileges which publishers have
founded fear of imminent battery, coupled with to satisfy the curiosity of the public as to their
the apparent present ability to effectuate the leaders, heroes, villains and victims.” [Carpio,
attempt if not prevented. The interest protected Antonio T., Intentional Torts in Philippine Law,
by this action is the freedom from supra].
apprehension of a harmful or offensive
contact with the person, as distinguished from i. Right to peace of mind
the contact itself. No actual contact is
necessary, and the plaintiff is protected against Violation of the right to peace of mind under Art.
a purely mental disturbance of his personal 26 is akin to the American tort of intentional
integrity. infliction of mental distress (physical illness
suffered by the plaintiff as a result of the
The defendant must have intended to offensive words or act). However, the view that
interfere with the plaintiff's personal integrity to physical illness is immaterial in infliction of
hold him liable for assault. In short, he must mental distress appears to be applicable in this
have intended to bring about an assault or a jurisdiction since Art. 26 itself creates a cause
battery. Assault, therefore, cannot be of action for violation of the right to “peace of
committed through negligence. But the intent mind.” Violation of the right in itself constitutes
need not be to inflict physical harm, it being a legal injury sufficient to support the action
sufficient that there is an intent to arouse
Page 472 of 532

[Carpio, Antonio T., Intentional Torts in

Philippine Law, supra].
(1) Freedom of religion;
(2) Freedom of speech;
j. Dereliction of duty (3) Freedom to write for the press or to
maintain a periodical publication;
Art. 27, CC. Any person suffering material or (4) Freedom from arbitrary or illegal
moral loss because a public servant or detention;
employee refuses or neglects, without just (5) Freedom of suffrage;
cause, to perform his official duty may file an (6) The right against deprivation of property
action for damages and other relief against without due process of law;
the latter, without prejudice to any (7) The right to a just compensation when
disciplinary administrative action that may be private property is taken for public use;
taken. (8) The right to the equal protection of the
laws;
This applies only to acts of nonfeasance or the
(9) The right to be secure in one's person,
nonperformance of some acts which a person
house, papers, and effects against
is obliged or has responsibility to perform. The
unreasonable
duty of the public servant must be ministerial in
searches and seizures;
character. If the duty is discretionary, he is not (10) The liberty of abode and of changing the
liable unless he acted in a notoriously arbitrary
same;
manner.
(11) The privacy of communication and
correspondence;
The defense of good faith is not available (12) The right to become a member of
because an officer is under constant obligation associations or societies for purposes not
to discharge the duties of his office, and it is not contrary to law;
necessary to show that his failure to act was
(13) The right to take part in a peaceable
due to malice or willfulness.
assembly to petition the Government for
redress of grievances;
Requisites: [Amaro v. Sumanguit, G.R. No. L- (14) The right to be a free from involuntary
14986 (1962)] servitude in any form;
1. Defendant is a public officer charged
(15) The right of the accused against
with a performance of a duty in favor of excessive bail;
the plaintiff;
(16) The right of the accused to be heard by
2. He refused or neglected without just himself and counsel, to be informed of the
cause to perform the duty;
nature
3. Plaintiff sustained material or moral and cause of the accusation against him, to
loss as a consequence of such non-
have a speedy and public trial, to meet the
performance;
witnesses face to face, and to have
4. The amount of such damages, if compulsory process to secure the
material. attendance of witness in his behalf;
(17) Freedom from being compelled to be a
k. Violation of civil and political rights witness against one's self, or from being
forced to
Art. 32, CC. Any public officer or employee, confess guilt, or from being induced by a
or any private individual, who directly or promise of immunity or reward to make such
indirectly obstructs, defeats, violates or in confession, except when the person
any manner impedes or impairs any of the confessing becomes a State witness;
following rights and (18) Freedom from excessive fines, or cruel
liberties of another person shall be liable to and unusual punishment, unless the same is
the latter for damages: imposed or inflicted in accordance with a
Page 473 of 532

statute which has not been judicially 3. Interference with relations

declared unconstitutional; and
(19) Freedom of access to the courts. An interference with the continuance of
unimpaired interests founded upon the relation
In any of the cases referred to in this article, in which the plaintiff stands toward one or more
whether or not the defendant's act or third persons [Prosser and Keeton].
omission
constitutes a criminal offense, the aggrieved a. Family relations
party has a right to commence an entirely
separate and distinct civil action for
damages, and for other relief. Such civil
action shall proceed independently of any
criminal prosecution (if the latter be
instituted), and may be proved by a
may not constitute a criminal offense, shall
preponderance of evidence.
prevention and other relief: x x x
The indemnity shall include moral damages.
Exemplary damages may also be
(2) Meddling with or disturbing the
adjudicated.
private life or family relations of
another; x x x
The responsibility herein set forth is not
demandable from a judge unless his act or
omission constitutes a violation of the Penal 1. Husband and wife
Code or other penal statute.
The law expressly recognizes the right of either
spouse to sue the other without any limitations
Article 32 speaks of an officer or employee or
as to the subject matter of litigation. Litigations
person “directly or indirectly” responsible
between members of the same family are
for the violation of the constitutional rights and
expressly allowed by the Code as long as
liberties of another. Thus, it is not the actor
earnest efforts towards a compromise have
alone (i.e., the one directly responsible) who
been made. Moreover, the Code defines family
must answer for damages under Article 32; the
relations as including those between husband
person indirectly responsible has also to
and wife. It is therefore our belief that in this
answer for the damages or injury caused to the
jurisdiction, a personal tort action, like battery,
aggrieved party. Article 32 makes the persons
can be maintained by a wife against her
who are directly, as well as indirectly,
husband, or vice versa [Carpio, Antonio T.,
responsible for the transgression, joint
Intentional Torts in Philippine Law, supra].
tortfeasors [MHP Garments v. CA, G.R. No.
86720 (1994)].
2. Interferences by third persons
It is not necessary that the defendant under
The right to family relations includes the right to
Article 32 should have acted with malice or bad
consortium and to recover damages in case of
faith, otherwise, it would defeat its main
breach thereof. A spouse’s interest in his
purpose, which is the effective protection of
relationship with the other spouse is known as
individual rights. It suffices that there is a
consortium. The gist of a husband’s cause of
violation of the constitutional right of the plaintiff
action for loss of his wife’s consortium is a loss
[Vinzons-Chato v. Fortune, G.R. No. 141309
sustained by him and not the damage
(2007)].
sustained by her [Carpio, Antonio T.,
Intentional Torts in Philippine Law, supra].
Page 474 of 532

Forms of interference i. Such distinction between the

1. Adultery with the wife: the husband may liability of parents and that of
maintain an action not only where the strangers is only with regard to
intercourse is the result of rape, but also what will justify interference.
where the wife consents to it, or where she ii. A parent is liable for alienation
herself seduces the defendant. of affections resulting from his
2. Alienation of affection: interference with own malicious conduct, as where
the wife’s affection and mental attitude he wrongfully entices his son or
toward the husband. In the same manner, daughter to leave his or her
the wife has a cause of action for the spouse, but he is not liable
alienation of her husband’s affection. The unless he acts maliciously,
attempt to alienate must be successful to without justification and from
be actionable. Affirmative action on the part unworthy motives.
of the defendant is required in order that he iii. He is not liable where he acts
may be liable for interference with the and advises his child in good
marriage relation. Although the defendant faith with respect to his child's
need not be motivated by spite or ill will marital relations in the interest
toward the plaintiff, the tort must of his child as he sees it…
nevertheless be an intentional one, iv. He may in good faith take his
directed at the relation itself. child into his home and afford him
a. Requisites: or her protection and support, so
i. that the defendant acted for the long as he has not maliciously
purpose of effecting the relation; enticed his child away, or does
and not maliciously entice or cause
ii. that he was a substantial factor in him or her to stay away from his
causing the alienation. or her spouse. This rule has more
b. Elements: frequently been applied in the
i. Wrongful conduct of the case of advice given to a married
defendant: intentional and daughter, but it is equally
malicious enticing of a spouse applicable in the case of advice
away from the other spouse given to a son. [Tenchavez v.
ii. Loss of affection or consortium Escaño, G.R. No. L-19671
iii. Causal connection between such (1965)].
conduct and loss
c. Can a meddling mother-in-law be 3. Parent and child
liable for alienation of affection? No.
Parents enjoy a qualified privilege to Nowhere in the law is there a prohibition
interest themselves in the marital against a child suing the parent. A child can
affairs of their child. “An action for bring a tort action for injuries inflicted on him by
alienation of affections against the the parent through excessive punishment.
parents of one consort does not lie in
the absence of proof of malice or By parity of reasoning, a parent can also
unworthy motives on their part” institute a personal tort action against the child
[Tenchavez v. Escano, G.R. No. L- under Art. 26, like an action for assault or
19671(1965)]. battery. There is no law which prohibits a
d. Liability of Parents, Guardians or parent from suing his own child on a personal
Kin. The law distinguishes between the tort [Carpio, Antonio T., Intentional Torts in
right of a parent to interest himself in Philippine Law, supra].
the marital affairs of his child and the
absence of rights in a stranger to
intermeddle in such affairs.
Page 475 of 532

4. Enticement his friends [Carpio, Antonio T., Intentional Torts

in Philippine Law, supra].
Under Art. 26, a parent may institute a tort
action against a person who entices a child c. Economic relations
away from home. The right to family relations
is quite broad, and includes within its embrace 1. Interference with contractual relations
the right of parents to the custody of the child.
Hence, intruding upon the parents’ right to the
Art. 1314, CC. Any person who induces
child's custody is an actionable tort under Art.
another to violate his contract with another
26.
person shall be liable for damages to the
other contracting party.
Can a child sue his mother’s paramour for
enticing her to leave the conjugal home
under Art. 26? Yes. The child can sue on the Elements of tort interference [So Ping Bun v.
basis of interference with family relations. CA, G.R. No. 120554 (1999)]:
Family relations include those between 1. Existence of a valid contract
ascendants and descendants. Moreover, a 2. Knowledge on the part of the third
child has a right to an undisturbed family life. person of the existence of contract; and
He has an interest in the family honor and 3. Interference of the third person is
reputation for after all he is part of the family without legal justification or excuse.
and he will carry the family honor and
reputation as he grows up. When the mother is Everyone has a right to enjoy the fruits and
enticed away from the family home, the child is advantages of his own enterprise, industry, skill
deprived of the right to be educated by the and credit. He has no right to be protected
parent, which includes the moral and spiritual against competition; but he has a right to be
upbringing of the child, such as the guidance of free from malicious and wanton interference,
his conscience, the development of family disturbance or annoyance. If disturbance or
affection and formation of his character loss comes as a result of competition, or the
[Carpio, Antonio T., Intentional Torts in exercise of like rights by others, it is damnum
Philippine Law, supra]. absque injuria, unless some superior right by
contract or otherwise is interfered with. Thus, a
b. Social relations plaintiff loses his cause of action if the
defendant provides a sufficient justification for
such interference, which must be an equal or
superior right in themselves. The defendant
may not legally excuse himself on the ground
that he acted on a wrong understanding of his
own rights, or without malice, or bona fide, or
may not constitute a criminal offense, shall
in the best interests of himself [Gilchrist v.
Cuddy, G.R. No. 9356 (1915)].
prevention and other relief: x x x
Bad faith/Malice is required to make the
(3) Intriguing to cause another to be
defendant liable for damages in cases of
alienated from his friends; x x x
tortuous interference [So Ping Bun v. CA,
supra].
The right to social relations embodied in Art. 26
imposes liability for intriguing to cause another 2. Unfair Competition
to be alienated from his friends. The word
intrigue implies malice or ill will, coupled with
Art. 28, CC. Unfair competition in
some scheme or secret plot to bring about the
agricultural, commercial or industrial
desired purpose, that is, to alienate one from
Page 476 of 532

enterprises or in labor through the use of performance, that which is expected of a

force, intimidation, deceit, machination or good father of a family shall be required.
any other unjust, oppressive or highhanded
method shall give rise to a right of action by
Negligence
the person who thereby suffers damage.
It is the omission to do something which a
reasonable man, guided by those
In order to qualify the competition as “unfair,” it considerations which ordinarily regulate the
must have two characteristics [Willaware conduct of human affairs, would do, or the
Products v. Jesichris Manufacturing, G.R. No. doing of something which a prudent and
195549 (2014)]. reasonable man would not do [Layugan v. IAC,
1. It must involve an injury to a competitor or G.R. No. 73998 (1988)].
trade rival; and
2. It must involve acts which are To determine whether or not a person has been
characterized as “contrary to good negligent requires determining 2 things:
conscience,” or “shocking to judicial 1) the diligence required of the actor
sensibilities,” or otherwise unlawful. In the under the circumstances, and
language of our law, these include force, 2) whether the actor has performed the
intimidation, deceit, machination or any diligence required.
other unjust, oppressive or high-handed Failing the second requisite would lead to the
method. conclusion that one has been negligent.
When a person starts an opposing place of By jumping into the sea, the employee failed to
business, not for the sake of profit to himself, exercise even slight care and diligence and
but regardless of loss and for the sole purpose displayed a reckless disregard of the safety of
of driving his competitor out of business so that his person. His death was caused by his
later on he can take advantage of the effects of notorious negligence. Notorious negligence
his malevolent purpose, he is guilty of wanton has been held to be tantamount to gross
wrong [Willaware Products v. Jesichris negligence which is want of even slight care
Manufacturing, supra]. and diligence [Ameda v. Rio, G.R. No. L-6870
(1954)].
G. NEGLIGENCE 2. Good father of a family or

reasonably prudent person
1. Concept Pursuant to Art. 1173, the diligence of a good
father of a family is the standard of conduct if
the law or contract does not provide otherwise.
Art. 1173, CC. The fault or negligence of the
obligor consists in the omission of that
Test to determine the existence of
diligence which is required by the nature of
negligence: Did the defendant in doing the
the obligation and corresponds with the
alleged negligent act use that reasonable care
circumstances of the persons, of the time
and caution which an ordinarily prudent man
and of the place. When negligence shows
would have used in the same situation? If not,
bad faith, the provisions of Articles 1171 and
then he is negligent. Negligence in a given
2201, paragraph 2, shall apply.
case is not determined by reference to the
personal judgment of the actor in the situation
If the law or contract does not state the
before him, but is determined in the light of
diligence which is to be observed in the
human experience and the facts involved in the
particular case. Conduct is said to be negligent
Page 477 of 532

when a prudent man in the position of the same employment [Far Eastern Shipping v.
tortfeasor would have foreseen that an effect CA, G.R. No. 130068 (1998)].
harmful to another was sufficiently probable to
warrant his foregoing the conduct or guarding When a person holds himself out as being
against its consequences [Picart v. Smith, G.R. competent to do things requiring professional
No. L-12219 (1918)]. skill, he will be held liable for negligence if he
fails to exhibit the care and skill of one
3. Standard of care; emergency ordinarily skilled in the particular work which he
attempts to do [Culion v. Philippine Motors,
rule G.R. No 32611 (1930)].
a. Standard of care needed in specific Doctors

circumstances Whether or not a physician has committed an
‘inexcusable lack of precaution’ in the
Operators of Motor Vehicles treatment of his patient is to be determined
In Relation to Cyclists according to the standard of care observed
Because of the inherent differences between by other members of the profession in good
motorists and cyclists, the former being standing under similar circumstances
capable of greater speed and destruction, bearing in mind the advanced state of the
operators of motor vehicles have a higher profession at the time of treatment of present
standard in his duty of care [Anonuevo v. CA, state of medical science. It is in this aspect of
G.R. No. 130003 (2004)]. medical malpractice that expert testimony is
essential to establish not only the standard of
Banks care of the profession but also that the
The law imposes on banks high standards in physician’s conduct in the treatment and care
view of the fiduciary nature of banking. Section falls below such standard [Cruz v. CA, GR. No.
2 of Republic Act No. 8791 (R.A. 8791), which 122445 (1997)].
took effect on 13 June 2000, declares that the
State recognizes the ‘fiduciary nature of Although resident physicians are subject to the
banking that requires high standards of same standard of care applicable to attending
integrity and performance.’ This fiduciary physicians, a finding of negligence should also
relationship means that the bank’s obligation to depend on several competing factors, among
observe high standards of integrity and them, the resident physician’s authority to
performance is deemed written into every make his or her own diagnosis, the degree of
deposit agreement between a bank and its supervision of the attending physician over him
depositor. The fiduciary nature of banking or her, and the shared responsibility between
requires banks to assume a degree of diligence him or her and the attending physicians
higher than that of a good father of a family [Casumpang v. Cortejo, G.R. Nos. 171127,
[Consolidated Bank v. CA, G.R. No. 138569 171217 & 17122 (2015)].
(2003)].
Pharmacists
Experts (In General) The profession of pharmacy, it has been said
Those who undertake any work calling for again and again, is one demanding care and
special skills are required not only to exercise skill. Even under the first conservative
reasonable care in what they do but also expression, “ordinary care” with reference to
possess a standard minimum of special the business of a druggist…must be held to
knowledge and ability. In all employments signify “the highest practicable degree of
where peculiar skill is requisite, one who offers prudence, thoughtfulness, and vigilance, and
his services is understood as holding himself most exact and reliable safeguards consistent
out to the public as possessing the degree of with the reasonable conduct of the business in
skill commonly possessed by others in the order that human life may not constantly be
Page 478 of 532

exposed to the danger flowing from the and experience under the same or similar
substitution of deadly poisons for harmless circumstances [Ylarde v. Aquino, G.R. No. L-
medicine” [US v. Pineda, G.R. No. L-12858 33722 (1988)].
(1918)].
b. Emergency rule
Mistake is negligence and care is no defense
[Mercury Drug v. de Leon, G.R. No. 165622 An individual who suddenly finds himself in a
(2008)]. situation of danger and is required to act
without much time to consider the best means
Possessors of Extremely Dangerous that may be adopted to avoid the impending
Instrumentalities danger, is not guilty of negligence if he fails to
[A] higher degree of care is required of undertake what subsequently and upon
someone who has in his possession or under reflection may appear to be a better solution,
his control an instrumentality extremely unless the emergency was brought by his own
dangerous in character, such as dangerous negligence [Gan v. CA, GR. No. 44264 (1988)].
weapons or substances. Such person in
possession or control of dangerous 4. Unreasonable risk of harm
instrumentalities has the duty to take
exceptional precautions to prevent any injury Negligence, as it is commonly understood, is a
being done thereby. Unlike the ordinary affairs conduct that creates an undue risk of harm to
of life or business which involve little or no risk, others. [Valenzuela v. CA, 253 SCRA 303
a business dealing with dangerous weapons (1996)].
requires the exercise of a higher degree of care
[Pacis v. Morales, G.R. No. 169467 (2010)]. However, in negligence, risk means a danger
which is apparent, or should be apparent, to
Children one in the position of the actor. [Prosser and
Take into account the specific characteristic of Keeton, pp. 169-170]. Such type of risk is
the child in question unreasonable risk. If such unreasonable risk
The conduct of an infant of tender years is not results in injury to the plaintiff, the latter can
to be judged by the same rule, which governs recover from the defendant. [Phoenix
that of an adult. …The care and caution Construction vs. IAC, G.R. No. L-65295
required of a child is according to his maturity (1987)].
and capacity only, and this is to be determined
in each case by the circumstances of the case
[Taylor v. Manila Railroad, G.R. No. 4977 5. Evidence
(1910)].
Rule 131. Sec. 1, ROC. Burden of proof. —
“Age brackets” standard Burden of proof is the duty of a party to
No contributory negligence can be imputed to present evidence on the facts in issue
children below 9 years old [Jarco Marketing v. necessary to establish his claim or defense
CA, G.R. No. 129792 (1999)]. by the amount of evidence required by law.
Measure the acts of the child against “average

conduct of persons his age and experience” Rule 131. Sec. 3, ROC. Disputable
The degree of care required to be exercised presumptions. — The following
must vary with the capacity of the person presumptions are satisfactory if
endangered to care for himself. …The uncontradicted, but may be contradicted and
standard of conduct to which a child must overcome by other evidence: x x x
conform for his own protection is that degree of (d) That a person takes ordinary care of his
care ordinarily exercised by children of the concerns; x x x
same age, capacity, discretion, knowledge
Page 479 of 532

Art. 2186, CC. Every owner of a motor

Rule 133. Sec. 1, ROC. Preponderance of vehicle shall file with the proper government
evidence, how determined. — In civil cases, office a bond executed by a government-
the party having burden of proof must controlled corporation or office, to answer for
establish his case by a preponderance of damages to third persons. The amount of the
evidence. x x x bond and other terms shall be fixed by the
competent public official.
General rule
In accordance with the fundamental principle of The owner is solidarily liable with the driver for
proof that the burden thereof is upon the motor vehicle mishaps when:
plaintiff, it is the duty of him who shall claim a. The owner was inside the vehicle at
damages to establish their existence. the time; and
Negligence is not presumed, but must be b. The owner could have, by the use of
proven by him who alleges it. [Taylor v. Manila due diligence, prevented the misfortune.
Electric Railroad, G.R. No. L-4977 (1910),
citing Scaevola, Jurisprudencia del Codigo If the owner was not inside the vehicle, he may
Civil, vol. 6, pp. 551, 552]. be held liable under Art. 2180.
It is presumed that a person takes ordinary The presumption is against the owner of the
care of his concerns [Rule 131, Sec. 3(d), motor vehicle. He has the burden of proving
Rules of Court]. due diligence. Thus, once a driver is proven
negligent in causing damage, the law
The quantum of proof required is a presumes the vehicle owner equally negligent
preponderance of evidence [Rule 133, Sec.1, and imposes upon the latter the burden of
Rules of Court]. proving proper selection and supervision of the
employee as a defense [Carticiano v. Nuval,
Exception G.R. No. 138054 (2000), citing Sangco,
There are exceptional cases when the rules or Philippine Law on Torts and Damages, Vol. II,
the laws provide for cases when negligence is 1994 ed., pp. 555-556].
presumed [See G.6. Presumption of
Negligence]. The registered owner/operator of a passenger
vehicle is jointly and severally liable with the
6. Presumption of negligence driver for damages incurred by passengers or
third persons as a consequence of injuries or
death sustained in the operation of said
a. In motor vehicle mishaps
vehicles. Regardless of who the actual owner
of a vehicle is, the operator of record continues
1. Liability of the owner
to be the operator of the vehicle as regards the
public and third persons and as such is directly
Art. 2184, CC. In motor vehicle mishaps, the and primarily responsible for the
owner is solidarily liable with his driver, if the consequences incident to its operation, so that
former, who was in the vehicle, could have, in contemplation of law, such owner/operator of
by the use of the due diligence, prevented record is the employer of the driver, the actual
the misfortune. x x x operator and employer being considered
merely as his agent [Vargas v. Langcay, G.R.
If the owner was not in the motor vehicle, the No. 17459 (1962)].
provisions of Article 2180 are applicable.
The registered owner of a motor vehicle is
primarily liable for the damage or injury caused
to another, but he has a right to be indemnified
Page 480 of 532

by the real owner of the amount he was

Art. 2185, CC. Unless there is proof to the
required to pay. This rule applies both to private
contrary, it is presumed that a person driving
and to common carriers with respect to their
a motor vehicle has been negligent if at the
passengers [Tamayo v. Aquino, G.R. No. L-
time of the mishap, he was violating any
12634 (1959)].
traffic regulation.
The law does not require that a person must
possess a certain measure of skill or Art. 2184 establishes a presumption of
proficiency either in the mechanics of driving or negligence on the part of the driver based on
in the observance of traffic rules before he may previous violations of traffic regulations.
own a motor vehicle. The test of his negligence,
within the meaning of Article 2184, is his Art. 2185 establishes a presumption of
omission to do that which the evidence of his negligence on the basis of simultaneous
own senses tells him he should do in order to violations.
avoid the accident. And as far as perception is
concerned, absent a minimum level imposed Under Article 2185, a legal presumption of
by law, a maneuver that appears to be fraught negligence arises if at the time of the mishap,
with danger to one passenger may appear to a person was violating any traffic regulation.
be entirely safe and commonplace to another. However, a causal connection must exist
Were the law to require a uniform standard of between the injury received and the violation of
perceptiveness, employment of professional the traffic regulation. It must be proven that the
drivers by car owners who, by their very violation of the traffic regulation was the
inadequacies, have real need of drivers’ proximate or legal cause of the injury or that it
services, would be effectively proscribed substantially contributed thereto [Tison v. Sps.
[Caedo v. Yu Khe Tai, G.R. No. L-20392 Tomasin, G.R. No. 173180 (2011)].
(1968)].
Despite the presumption of negligence arising
The owner of the motor vehicle is not liable for from the traffic regulation violation, the claimant
the misfortune unless the negligent acts of the must still prove that such negligence was the
driver are continued for such a length of time proximate cause in order to successfully claim
as to give the owner a reasonable opportunity for damages [Sanitary Steam v. CA, G.R. No.
to observe them and to direct his driver to 119092 (1998)].
desist therefrom. The act complained of must
be continued in the presence of the owner for Article 2185 was not formulated to compel or
such a length of time that the owner, by his ensure obeisance by all to traffic rules and
acquiescence, makes his driver’s act his own regulations. It does not apply to non-motorized
[Chapman v. Underwood, G.R. No. L-9010 vehicles, in recognition of the unequal footing
(1914)]. of standards applicable to motor vehicles as
opposed to other types of vehicles [Añonuevo
2. Liability of the driver v. CA, supra].
Art. 2184, CC. x x x It is disputably presumed

that a driver was negligent, if he had been
found guilty of reckless driving or violating
traffic regulations at least twice within the
next preceding two months.
Page 481 of 532

b. Possession of dangerous d. Res ipsa loquitur

weapons or substances
Definition
Literally, res ipsa loquitur means “the thing
Art. 2188, CC. There is prima facie speaks for itself” [Professional Services, Inc. v.
presumption of negligence on the part of the
Agana, G.R. No. 126297(2007)].
defendant if the death or injury results from
his possession of dangerous weapons or
Statement of the Rule
substances, such as firearms and poison,
Where the thing which causes injury is shown
except when the possession or use thereof
to be under the management of the defendant
is indispensable in his occupation or
(or his servants), and the accident is such as in
business.
the ordinary course of things does not happen
if those who have the management (or control)
c. Common carriers used proper care, it affords reasonable
evidence, in the absence of an explanation by
the defendant, that the accident arose from (or
Art. 1734, CC. Common carriers are was caused by the defendants) want of care
responsible for the loss, destruction, or [Tan v. JAM Transit, G.R. No. 183198 (2009)].
deterioration of the goods, unless the same
is due to any of the following causes only: Where the thing which caused the injury,
without the fault of the injured, is under the
(1) Flood, storm, earthquake, lightning, or exclusive control of the defendant and the
other natural disaster or calamity; injury is such that it should not have occurred if
(2) Act of the public enemy in war, whether he, having such control used proper care, it
international or civil; affords reasonable evidence, in the absence of
(3) Act or omission of the shipper or owner of explanation that the injury arose from the
the goods; defendant’s want of care, and the burden of
(4) The character of the goods or defects in proof is shifted to him to establish that he has
the packing or in the containers; observed due care and diligence [Professional
(5) Order or act of competent public Services v. Agana, G.R. No. 126297(2007)].
authority.
Elements [Ramos v. CA, G.R. No. 124354
(1999)]
Art. 1735, CC. In all cases other than those 1. The accident is of a kind which ordinarily
mentioned in Nos. 1, 2, 3, 4, and 5 of the does not occur in the absence of
preceding article, if the goods are lost, someone’s negligence;
destroyed or deteriorated, common carriers 2. It is caused by an instrumentality within the
are presumed to have been at fault or to exclusive control of the defendant or
have acted negligently, unless they prove defendants; and
that they observed extraordinary diligence as 3. The possibility of contributing conduct,
required in Article 1733. which would make the plaintiff responsible,
is eliminated.
Art. 1752, CC. Even when there is an
Note: In Professional Services v. Agana, supra,
agreement limiting the liability of the
the Court added “the absence of explanation
common carrier in the vigilance over the
by the defendant” as a fourth element.
goods, the common carrier is disputably
presumed to have been negligent in case of
1st element: Nature of the accident
their loss, destruction or deterioration.
As a matter of common knowledge and
experience, the very nature of certain types of
occurrences may justify an inference of
Page 482 of 532

negligence on the part of the person who to present enough of the attending
controls the instrumentality causing the injury circumstances to invoke the doctrine, “along
in the absence of some explanation by the with the proof of the accident” [Ramos v. CA,
defendant who is charged with negligence supra].
[Ramos v. CA, supra].
Nature of the rule
2nd element: Control over the cause Res ipsa loquitur is in the nature of a
Of the three elements, the fundamental procedural rule, a rule of evidence and not a
element is the “control of instrumentality” rule of substantive law; thus, it does not create
which caused the damage. Such element of or constitute an independent or separate
control must be shown to be within the ground of liability. It is merely a mode of proof
dominion of the defendant [Ramos v. CA, or a mere procedural convenience. It is a rule
supra]. peculiar to the law of negligence that
recognizes that prima facie negligence may be
General rule: The instrumentality causing the established without direct proof and furnishes
injury must be under the exclusive control of a substitute for specific proof of negligence and
the person sought liable. relieves a plaintiff of the burden of producing
Exception: “Control and management” is specific proof of negligence [Ramos v. CA,
sufficient [Professional Services v. Agana, supra].
supra].
Effect of the rule
3rd element: No contribution to the injury Mere invocation and application of the doctrine
from the injured does not dispense with the requirement of
It is not necessary that the plaintiff be proof of negligence. It is simply a step in the
completely inactive, but merely that there be process of such proof, permitting the plaintiff to
evidence removing the inference of the present along with the proof of the accident,
plaintiff’s own responsibility [Prosser and enough of the attending circumstances to
Keeton, supra at 254]. invoke the doctrine, creating an inference or
presumption of negligence, and to thereby
Effect of direct evidence place on the defendant the burden of going
Res ipsa loquitur can only be invoked when forward with the proof [Ramos v. CA, supra].
under the circumstances involved, direct
evidence of negligence or direct cause of the Res Ipsa Loquitur vs. expert testimony in
injury is absent and not readily available. medical negligence cases
It is apparent that medical negligence cases
It has generally been held that the presumption are best proved by opinions of expert
of inference arising from the doctrine cannot be witnesses belonging in the same general
availed of, or is overcome, where plaintiff has neighborhood and in the same general line of
knowledge and testifies or presents evidence practice as defendant physician or surgeon
as to the specific act of negligence which is the [Lucas v. Tuaño, G.R. No. 178763 (2009)].
cause of the injury complained of or where
there is direct evidence as to the precise cause Expert testimony is essential to establish the
of the accident and all the facts and standard of care of the profession and whether
circumstances attendant on the occurrence or not the physician’s conduct in the treatment
clearly appear [Layugan v. IAC, G.R. No. and care falls below such standard. Inasmuch
73998 (1988)] as the causes of the injuries involved in
malpractice actions are determinable only in
However, notwithstanding the doctrine in the light of scientific knowledge, expert
Layugan, it does not mean that res ipsa loquitur testimony is usually necessary to support the
can only be invoked in the complete absence conclusion as to causation [Cruz v. CA, supra].
of other evidence. The rule allows the plaintiff
Page 483 of 532

When the doctrine of res ipsa loquitur is availed against the Republic, which is not amenable to
by the plaintiff, the need for expert medical judgment for monetary claims without its
testimony is dispensed with because the injury consent. However, a public officer is by law not
itself provides the proof of negligence. The immune from damages in his/her personal
reason is that the general rule on the necessity capacity for acts done in bad faith which, being
of expert testimony applies only to such outside the scope of his authority, are no longer
matters clearly within the domain of medical protected by the mantle of immunity for official
science, and not to matters that are within the actions. [Vinzons-Chato v. Fortune, G.R. No.
common knowledge of mankind which may be 141309 (2008)].
testified to by anyone familiar with the facts
[Ramos v. CA, supra]. c. Authority of Law
7. Defenses Art. 5, CC. Acts executed against the

provisions of mandatory or prohibitory laws
a. Due Diligence to Prevent the shall be void, except when the law itself
Damage under Art. 2180, CC. authorizes their validity.
Art. 2180, CC. The obligation imposed by Art. 11, RPC. The following do not incur any
Article 2176 is demandable not only for one’s criminal liability: xxx
own acts or omissions, but also for those of (5) Any person who acts in the fulfillment of a
persons for whom one is responsible. duty or in the lawful exercise of a right or office
xxx xxx
(8) The responsibility treated of in this article (8) Any person who acts in obedience to an
shall cease when the persons herein order issued by a superior for some lawful
mentioned prove that they observed all the purpose.
diligence of a good father of a family to
prevent damage. d. Damnum Absque Injuria
The presumption of negligence on the part of There can be damage without injury in those
the master or employer, either in the selection instances in which the loss or harm was not the
of servant/employee or in the supervision, result of a violation of a legal duty.
when an injury is caused by the negligence of
a servant/employee may be rebutted if the Right to recover damages does not arise from
employer shows to the satisfaction of the court the mere fact that the plaintiff suffered losses.
that in the selection and supervision, he has To warrant the recovery of damages, there
exercised the care and diligence of a good must be both a right of action for a legal wrong
father of a family [Ramos v. PEPSI, G.R. No. inflicted by the defendant, and damage
L-22533 (1967)]. resulting to the plaintiff therefrom. Wrong
without damage, or damage without wrong,
b. Acts of Public Officers does not constitute a cause of action, since
damages are merely part of the remedy
A public officer is not liable for damages which allowed for the injury caused by a breach or
a person may suffer arising from the just wrong [Custodio v. CA, G.R. No. 116100
performance of his official duties and within the (1996)].
scope of his assigned tasks. An officer who
acts within his authority to administer the affairs One who made use of his own legal right does
of the office which he/she heads is not liable for no injury, thus, whatever damages are caused
damages that may have been caused to to another should be borne solely by him under
another, as it would virtually be a charge the principle of damnum absque injuria. This
Page 484 of 532

principle, however, does not apply when there contributory negligence when the party’s act
is an abuse in the exercise of a person’s right. showed lack of ordinary care and foresight that
[Amonoy v. Gutierrez, G.R. No. 140420 (2001)] such act could cause him harm or put his life in
danger [NPC v. Heirs of Casionan, G.R. No.
e. Plaintiff’s Negligence is the 165969 (2008)].
Proximate Cause
Contributory negligence does not defeat an
action if it can be shown that the defendant
Art. 2179, CC. When the plaintiff’s own might, by the exercise of reasonable care and
negligence was the proximate cause of his prudence, have avoided the consequences of
injury, he cannot recover damages. x x x the injured party's negligence. Where the
plaintiff contributes to the principal occurrence
This defense of plaintiff’s negligence as as one of its determining factors, he cannot
proximate cause is absolute, for it bars recover. Where, in conjunction with the
recovery on the part of the plaintiff. In Manila occurrence, he contributes only to his own
Electric v. Remoquillo, supra, the Court did not injury, he may recover the amount that the
allow recovery by Magno, ruling that his death defendant responsible for the event should pay
was primarily caused by his own negligence for such injury, less a sum deemed a suitable
and in some measure by the too close equivalent for his own imprudence [MH Rakes
proximity of the “media agua” to the electric v. Atlantic, G.R. No. L-1719 (1907)].
wire.
The defense of contributory negligence does
If the plaintiff in a negligence action, by his own not apply in criminal cases committed through
carelessness contributed to the principal reckless imprudence, since one cannot allege
occurrence, that is, to the accident, as one of the negligence of another to evade the effects
the determining causes thereof, he cannot of his own negligence [Genobiagon v. CA, G.R.
recover [Bernardo v. Legaspi, G.R. No. 9308 No. 40452 (1989)].
(1914)].
g. Fortuitous Event
f. Contributory Negligence of the
Plaintiff Art. 1174, CC. Except in cases expressly
specified by the law, or when it is otherwise
Art. 2179, CC. x x x But if his negligence was declared by stipulation, or when the nature of
only contributory, the immediate and the obligation requires the assumption of
proximate cause of the injury being the risk, no person shall be responsible for those
defendant's lack of due care, the plaintiff may events which, could not be foreseen, or
recover damages, but the courts shall which, though foreseen, were inevitable.
mitigate the damages to be awarded.
Elements of caso fortuito [Juntilla v.
Fontanar, G.R. No. L-45637 (1985)]:
Art. 2214, CC. In quasi-delicts, the 1. The cause of the unforeseen and
contributory negligence of the plaintiff shall unexpected occurrence, or of the failure of
reduce the damages that he may recover. the debtor to comply with his obligation,
must be independent of the human will;
Definition 2. It must be impossible to foresee the event
Contributory negligence is conduct on the part or if it can be foreseen, it must be
of the injured party, contributing as a legal impossible to avoid;
cause to the harm he has suffered, which falls 3. The occurrence must be such as to render
below the standard which he is required to it impossible for the debtor to fulfill his
conform for his own protection. There is obligation in a normal manner; and
Page 485 of 532

4. The obligor must be free from any

However, when the action arises from or out
participation in the aggravation of the
of any act, activity, or conduct of any public
injury resulting to the creditor.
officer involving the exercise of powers or
authority arising from Martial Law including
h. Plaintiff’s Assumption of the arrest, detention and/or trial of the
Risk/Volenti Non Fit Unjuria plaintiff, the same must be brought within
one (1) year.
The doctrine of volenti non fit injuria (that to
which a person assents is not presumed in law
as injury) refers to self-inflicted injury or to the Art. 1150, CC. The time for prescription for
consent to injury which precludes the recovery all kinds of actions, when there is no special
of damages by one who has knowingly and provision which ordains otherwise, shall be
voluntarily exposed himself to danger, even if counted from the day they may be brought.
he is not negligent in doing so [Nikko Hotel v.
Reyes, G.R. No. 154259, (2005)].
Prescription periods:
" 4 years for quasi-delict
Requisites [Abrogar v. Cosmos Bottling, G.R.
! 1 year for defamation [Art. 1147, CC]
No. 164749 (2017)]:
1. That the plaintiff had actual knowledge of
It is clear that the prescriptive period must be
the danger;
counted when the last element occurs or takes
2. That he understood and appreciated the
place, the time of the commission of an act or
risk from the danger; and
omission violative of the right of the plaintiff,
3. That he voluntarily exposed himself to such
which is the time when the cause of action
risk.
arises. Thus, the prescription period begins
from the day the quasi-delict is committed
The doctrine of assumption of risk does not
[Kramer v. CA, G.R. No. 83524 (1989)].
apply in the ff. cases:
1. If an emergency is found to exist or if
the life or property of another is in j. Waiver
peril or when he seeks to rescue his
endangered property [Ilocos Norte v. Art. 6, CC. Rights may be waived, unless the
CA, G.R. No. 53401 (1989)]. waiver is contrary to law, public order, public
2. Even if respondent Reyes assumed the policy, morals, or good customs or
risk of being asked to leave the party, prejudicial to a third person with a right
petitioners, under Articles 19 and 21 recognized by law.
of the CC, were still under the
obligation to treat him fairly in order not
to expose him to unnecessary ridicule Art. 1171, CC. Responsibility arising from
and shame [Nikko Hotel v. Roberto fraud is demandable in all obligations. Any
Reyes, supra]. waiver of an action for future fraud is void.
i. Prescription k. Emergency Rule or Sudden Peril
Art. 1146, CC. The following actions must be [See G.3.b. Emergency Rule.]
instituted within four years:
(1) Upon an injury to the rights of the

plaintiff;
(2) Upon a quasi-delict;
Page 486 of 532

Who may recover

H. SPECIAL LIABILITY IN Although the article used the term “consumer”,
PARTICULAR ACTIVITIES such term includes a “user” and “purchaser” of
the injuriously defective food product or toilet
article. The person who may recover need not
1. In general; concept be the purchaser of the foodstuff or toilet
article.
While any person may be liable for a quasi-
delict or tort, the law has also identified specific
individuals as being liable for particular types of
3. Nuisance
injuries under certain conditions.
Art. 694, CC. A nuisance is any act,
omission, establishment, business,
2. Products liability; condition of property, or anything else which:
manufacturers or processors (1) Injures or endangers the health or
safety of others; or
Art. 2187, CC. Manufacturers and (2) Annoys or offends the senses; or
processors of foodstuffs, drinks, toilet (3) Shocks, defies or disregards
articles and similar goods shall be liable for decency or morality; or
death or injuries caused by any noxious or (4) Obstructs or interferes with the free
harmful substances used, although no passage of any public highway or street, or
contractual relation exists between them and any body of water; or
the consumers. (5) Hinders or impairs the use of
property.
Under the foregoing provision, liability is not
made to depend upon fault or negligence of the Definition of a Nuisance
manufacturer or processor. The provision A nuisance is that which unlawfully annoys or
likewise dispensed with any contractual does damage to another, or anything that
relation between the manufacturer and the works an injury, harm or prejudice to an
consumer, thereby clearly implying that liability individual or the public. The term “nuisance” is
is imposed by law as a matter of public policy. applied to that class of wrongs which arises
from the unreasonable, unwarrantable, or
Requisites of Liability unlawful use by a person of his own property,
1. Defendant is a manufacturer or possessor and which produces such material annoyance,
of foodstuff, drinks, toilet articles and inconvenience, discomfort or hurt, that the law
similar goods; will presume a consequent damage.
2. He used noxious or harmful substances in
the manufacture or processing of the NUISANCE NEGLIGENCE
foodstuff, drinks or toilet articles consumed Whether the
Whether it was
or used by the plaintiff; defendant’s use of
unreasonable for the
3. Plaintiff’s death or injury was caused by the his property was
defendant to act as he
product so consumed or used; and unreasonable as to
did in view of the
4. The damages sustained and claimed by the plaintiff, without
threatened danger or
the plaintiff and the amount thereof. regard to
harm to one in
foreseeability of
plaintiff’s position.
Burden of proof injury.
The burden of proof that the product was in a Liability is for the
Liability is based on
defective condition at the time it left the hands resulting injury to
a want of proper
of the manufacturer and particular seller is others regardless of
care
upon the injured plaintiff. the degree of care or
Page 487 of 532

skill exercised to at all times the free use by the public of the said
avoid such injury properties.
Principles ordinarily
apply where the Private
Principles ordinarily This nuisance is one which violates only private
cause of action is for
apply where the
continuing harm rights and produces damage to but one or a
cause of action is
caused by continuing few persons.
for harm resulting
or recurrent acts
from one act which
which cause Mixed
created an
discomfort or It may be a public nuisance because it violates
unreasonable risk
annoyance to plaintiff public rights to the injury of many persons, and
of injury.
in the use of his it may also be private in character in that it
property. produces special injury to private rights to any
extent beyond the injury to the public.
Art. 695, CC. Nuisance is either public or
private. A public nuisance affects a Art. 696, CC. Every successive owner or
community or neighborhood or any possessor of property who fails or refuses to
considerable number of persons, although abate a nuisance in that property started by
the extent of the annoyance, danger or a former owner or possessor is liable
damage upon individuals may be unequal. A therefor in the same manner as the one who
private nuisance is one that is not included created it.
in the foregoing definition.
Art. 697, CC. The abatement of a nuisance
Classification of Nuisances does not preclude the right of any person
injured to recover damages for its past
1. According to Nature existence.
Nuisance per se or at law Art. 699, CC. The remedies against a public
This is an act, occupation or structure which is nuisance are:
a nuisance at all times and under any (1) A prosecution under the Penal Code
circumstances, regardless of location or or any local ordinance; or
surroundings. Examples include gambling (2) A civil action; or
houses, houses of ill fame, etc. (3) Abatement, without judicial
proceedings.
Nuisance per accidens or in fact
This becomes a nuisance by reason of Criminal prosecution is only for a public
particular facts and circumstances surrounding nuisance, not a private one. Public
the otherwise harmless cause of the nuisance. nuisances are offenses against the State.
2. According to Scope of Injurious Effects Art. 703, CC. A private person may file an
action on account of a public nuisance, if it is
Public specially injurious to himself.
This nuisance is a direct encroachment upon
public rights or property. It is the doing of or An individual has no right of action against a
failure to do something that injuriously affects public nuisance. However, an individual who
the safety, health or morals of the public, or has suffered some special damage different
works some substantial annoyance, from that sustained by the general public,
inconvenience, or injury to the public. An may maintain a suit in equity for an injunction
example would be a house constructed on a to abate it, or an action for damages which
public street or a river bed, since this obstructs he has sustained. If an individual has
suffered a particular harm, the action
Page 488 of 532

becomes a tort, in which case the nuisance b. Extrajudicial Abatement

is treated as a private nuisance with respect
to such person. The remedy of extrajudicial abatement is
available:
Art. 704, CC. Any private person may abate 1. When there is a public nuisance; or
a public nuisance which is specially injurious 2. When there is a private nuisance, but the
to him by removing, or if necessary, by destruction of the thing must not exceed
destroying the thing which constitutes the P3,000.
same, without committing a breach of the
peace, or doing unnecessary injury. But it is Requisite for the exercise of the right to
necessary: extrajudicially abate nuisances:
(1) That demand be first made upon the 1. The right must be exercised only in cases
owner or possessor of the property to abate of urgent or extreme necessity, and if such
the nuisance; nuisance is especially injurious to him. The
(2) That such demand has been summary abatement should be resorted to
rejected; within a reasonable time after knowledge of
(3) That the abatement be approved by the nuisance.
the district health officer and executed with 2. Demand to abate the nuisance must be
the assistance of the local police; and made on the owner of the property
(4) That the value of the destruction originating the nuisance, and such demand
does not exceed three thousand pesos. must have been rejected.
3. Notice of the intention to abate must be
Art. 705, CC. The remedies against a private given to the one causing the nuisance,
nuisance are: within a reasonable time.
(1) A civil action; or 4. The abatement must be approved by the
(2) Abatement, without judicial District Health Officer.
proceedings. 5. The local police must assist in the exercise
of the right to abate extrajudicially.
Art. 706, CC. Any person injured by a private 6. The means employed must be reasonable,
nuisance may abate it by removing, or if without causing any breach of peace or
necessary, by destroying the thing which unnecessary injury. The property must not
constitutes the nuisance, without committing be destroyed, unless it is absolutely
a breach of the peace or doing unnecessary necessary to do so.
injury. However, it is indispensable that the
procedure for extrajudicial abatement of a c. Defenses to action on
public nuisance by a private person be nuisances
followed.
1. Public necessity
Art. 707, CC. A private person or a public Private interest must yield to the public good.
official extrajudicially abating a nuisance The creation of a nuisance amounts to taking
shall be liable for damages: of property; therefore, just compensation must
(1) If he causes unnecessary injury; or be made.
(2) If an alleged nuisance is later
declared by the courts to be not a real
nuisance.
Page 489 of 532

2. Estoppel 4. Violation of constitutional

One who voluntarily places himself in a
situation whereby he suffers an injury will not rights; violation of civil
be heard to say that his damage is due to a liberties
nuisance maintained by another.
Persons who violate constitutional rights and
3. Non-existence of the nuisance civil liberties are liable for damages, regardless
of whether the act or omission which lead to
4. Impossibility of abatement impairment of such rights constitutes a criminal
offense.
PUBLIC PRIVATE
NUISANCE NUISANCE Art. 32, CC. Any public officer or employee,
Affects a or any private individual, who directly or
community or indirectly obstructs, defeats, violates or in
neighborhood any manner impedes or impairs any of the
or any following rights and liberties of another
considerable person shall be liable to the latter for
Affects the
number of damages:
individual or
persons, 1. Freedom of religion
Definition a number of
although the 2. Freedom of speech
individuals
extent of the 3. Freedom to write for the press or to
only
annoyance, maintain a periodical publication
danger, or 4. Freedom from arbitrary or illegal
damage upon detention
individuals may 5. Freedom of suffrage
be unequal 6. The right against deprivation of
Criminal property without due process of law
prosecution, Civil action 7. The right to just compensation when
civil action (abatement, property is taken for public use
(abatement, damages, 8. The right to equal protection of the
Remedies
damages, injunction), laws
injunction), extrajudicial 9. The right to be secure in one’s
extrajudicial abatement person, house, papers and effects against
abatement unreasonable searches and seizures
City or 10. The liberty of abode and of changing
municipal the same
Who may mayor, private Any private 11. The right to privacy of
institute person (only if person communication and correspondence
the the nuisance is injured by 12. The right to become a member of
complaint especially the nuisance associations and societies for purposes not
injurious to contrary to law
him) 13. The right to take part in a peaceable
assembly and petition the government for
redress of grievances
14. The right to be free from involuntary
servitude in any form
15. The right of the accused against
excessive bail
16. The right of the accused to be heard
by himself and counsel, to be informed of the
nature and the cause of the accusation
Page 490 of 532

against him, to have a speedy and public must answer for damages under Article 32. It is
trial, to meet the witnesses face to face, to not even necessary that the defendant should
have compulsory process to secure the have acted with malice or bad faith, otherwise,
attendance of witnesses on is behalf; it would defeat its main purpose, which is the
17. Freedom from being compelled to be effective protection of individual rights. [Silahis
a witness against one’s self, or from being v. Soluta, G.R. No. 163087 (2006)]
forced to confess his guilt, or from being
induced by a promise of immunity or reward It is obvious that the purpose of Art. 32 is to
to make such confession, except when the provide a sanction to the deeply cherished
person confessing becomes a State witness. rights and freedoms enshrined in the
18. Freedom from excessive fines, or Constitution.
cruel and unusual punishment, unless the
same is imposed or inflicted in accordance Its message is clear; no man may seek to
with a statute which has not been judicially violate those sacred rights with impunity. In
declared unconstitutional; times of great upheaval or of social and political
19. Freedom of access to the courts stress, when the temptation is strongest to
yield. [Aberca, et al. v. Ver, et al., G.R. No.
In any of the cases referred to in this article, 69866(1988)].
whether or not the defendant’s act or
omission constitutes a criminal offense, the 5. Violation of rights committed
aggrieved party has a right to commence an
entirely separate and distinct civil action for
by public officers
damages, and for other relief. Such civil
action shall proceed independently of any Art. 34, CC. When a member of a city or
criminal prosecution (if the latter be municipal police force refuses or fails to
instituted) and may be proved by a render aid or protection to any person in
preponderance of evidence. case of danger to life or property, such
peace officer shall be primarily liable for
The indemnity shall include moral damages. damages, and the city or municipality shall
Exemplary damages may also be be subsidiarily responsible therefor. The civil
adjudicated. action herein recognized shall be
independent of any criminal proceedings,
The responsibility herein set forth is not and a preponderance of evidence shall
demandable from a judge unless his act or suffice to support such action.
omission constitutes a violation of the Penal
code or any other penal statute. Art. 34 covers a situation where
a. There is danger to the life or property
Art. 32, CC of a person;
Speaks of a particular specie of an “act” that b. A member of a city or municipal police
may give rise to an action for damages against force who is present in the scene
a public officer, and that is, a tort for impairment refused or failed to render aid or
of rights and liberties. [Vinzons-Chato v. protection to the person; and
Fortune, supra] c. Damages are caused whether to the
person and/or property of the victim.
Not only public officers but also private
individuals can incur civil liability for violation of
rights enumerated therein. Because the
provision speaks of an officer, employee or
person “directly or indirectly” responsible for
the violation of the constitutional rights and
liberties of another, it is not the actor alone who
Page 491 of 532

Nature of liability office a bond executed by a government-

a. Of the police officer – Primary controlled corporation or office, to answer for
b. City or municipality – Subsidiary damages to third persons. The amount of the
bond and other terms shall be fixed by the
The defense of having observed the diligence competent public official.
of a good father of a family to prevent the
damage is not available to the city/municipality. The owner is solidarily liable with the driver
for motor vehicle mishaps when:
6. Provinces, cities and a. The owner was IN the vehicle at the time,
AND
municipalities b. The owner could have, by the use of due
diligence, prevented the misfortune.
Art. 2189, CC. Provinces, cities and
municipalities shall be liable for damages for Note: If the owner was NOT inside the vehicle,
the death of, or injuries suffered by, any Art. 2180 applies.
person by reason of the defective condition
of roads, streets, bridges, public buildings, The presumption is against the owner of the
and other public works under their control or motor vehicle. He has the burden of proving
supervision. due diligence. Thus, once a driver is proven
negligent in causing damage, the law
It is not even necessary that the defective presumes the vehicle owner equally negligent
roads or streets belong to the province, city or and imposes upon the latter the burden of
municipality for liability to attach. The article proving proper selection and supervision of
only requires that either control or supervision employee as a defense.
be exercised over said street or road [Guilatco
v. Dagupan, G.R. No. 61516 (1989)]. As held in Vargas v. Langcay [G.R. No. 17459
(1962)], “the registered owner/operator of a
7. Owner of motor vehicle passenger vehicle is jointly and severally liable
with the driver for damages incurred by
Art. 2184, CC. In motor vehicle mishaps, the passengers or third persons as a consequence
owner is solidarily liable with his driver, if the of injuries or death sustained in the operation
former, who was in the vehicle, could have, of said vehicles. Regardless of who the actual
by the use of the due diligence, prevented owner of a vehicle is, the operator of record
the misfortune. It is disputably presumed that continues to be the operator of the vehicle as
a driver was negligent, if he had been found regards the public and third persons and as
guilty or reckless driving or violating traffic such is directly and primarily responsible for
regulations at least twice within the next the consequences incident to its operation, so
preceding two months. that in contemplation of law, such
owner/operator of record is the employer of the
If the owner was not in the motor vehicle, the driver, the actual operator and employer being
provisions of article 2180 are applicable. considered merely as his agent.”
Art. 2180 (5), CC. Employers shall be liable The registered owner of a motor vehicle is
for the damages caused by their employees primarily liable for the damage or injury caused
and household helpers acting within the to another, but he has a right to be indemnified
scope of their assigned tasks, even though by the real owner of the amount he was
the former are not engaged in any business required to pay. This rule applies both to private
or industry. and to common carriers with respect to their
passengers [Tamayo v. Aquino, G.R. No. L-
Art. 2186, CC. Every owner of a motor 12634 (1959)].
vehicle shall file with the proper government
Page 492 of 532

The law does not require that a person must driving/violatin

possess a certain measure of skill or g
proficiency either in the mechanics of driving or traffic
in the observance of traffic rules before he may violations at
own a motor vehicle. The test of his negligence, least twice
within the meaning of Article 2184, is his within
omission to do that which the evidence of his the next
own senses tells him he should do in order to preceding
avoid the accident. And as far as perception is 2 months
concerned, absent a minimum level imposed Due diligence
Good father
by law, a maneuver that appears to be fraught to
of a
with danger to one passenger may appear to prevent
be entirely safe and commonplace to another. family in
Defense mishap
employment
Were the law to require a uniform standard of (greatly
and
perceptiveness, employment of professional subjective)
supervision
drivers by car owners who, by their very
inadequacies, have real need of drivers' Solidary—The
services, would be effectively proscribed full
[Caedo v. Yu Khe Tai, G.R. No. L-20392 amount may
(1968)]. Primary—He be
may pursued
The owner of the motor vehicle is not liable for recover the against
the misfortune unless the negligent acts of the full him,
driver are continued for such a length of time Owner’s
amount from but he may
as to give the owner a reasonable opportunity liability
the only
to observe them and to direct his driver to driver, as per recover the pro
desist therefrom. The act complained of must Art. rata
be continued in the presence of the owner for 2181 share as to the
such a length of time that the owner, by his amount for
acquiescence, makes his driver’s act his own which
[Chapman v. Underwood, G.R. No. L-9010 he is liable
(1914)].
8. Proprietor of building or
ART. 2180
ART. 2184 structure or thing
(5)
Need not
Relations Art. 2190, CC. The proprietor of a building or
Employer- establish
hip of structure is responsible for the damages
employee Employer-
Owner & resulting from its total or partial collapse, if it
employee
Driver should be due to the lack of necessary
relationship
Not required Required at the repairs.
Car
at the time of the
owner’s Art. 2191, CC. Proprietors shall also be
time of the mishap
presence responsible for damages caused:
mishap.
On owner’s On driver’s
Presumpt part, part, (1) By the explosion of machinery which
ion of when his when he has has not been taken care of with due
negligenc driver is been diligence, and the inflammation of explosive
e negligent found guilty of substances which have not been kept in a
reckless safe and adequate place;
Page 493 of 532

(2) By excessive smoke, which may be Note: There is no requirement to prove

harmful to persons or property; negligence.
(3) By the falling of trees situated at or
near highways or lanes, if not caused by Under Article 2191, with the exception of No. 1,
force majeure; negligence is also not an issue.
(4) By emanations from tubes, canals,
sewers or deposits of infectious matter, The owner or proprietor of a place of public
constructed without precautions suitable to amusement impliedly warrants that the
the place. premises, appliances and amusement devices
are safe for the purpose for which they are
Art. 2192, CC. If damage referred to in the designed, the doctrine being subject to no
two preceding articles should be the result of other exception or qualification than that he
any defect in the construction mentioned in does not contract against unknown defects not
article 1723, the third person suffering discoverable by ordinary or reasonable means
damages may proceed only against the [Gotesco Investment Corp. v. Chatto, G.R. No.
engineer or architect or contractor in 87584 (1992)].
accordance with said article, within the
period therein fixed. Liability of Engineer or architect of
collapsed building
Ownership of a building imposes on the
proprietor thereof the duty to maintain it in good Art. 1723, CC. The engineer or architect
condition at all times to the end that it may not who drew up the plans and specifications for
collapse either totally or partially as to cause a building is liable for damages if within
damage or injury to another’s person or fifteen years from the completion of the
property. This duty obtains whether the structure, the same should collapse by
building is leased or held in usufruct. reason of a defect in those plans and
Considering, however, that the lessee or specifications, or due to the defects in the
usufructuary has direct and immediate control ground. The contractor is likewise
of the building, the law imposes on him the duty responsible for the damages if the edifice
to notify the proprietor of such urgent or falls, within the same period, on account of
extraordinary repairs. And where the defects in the construction or the use of
proprietor’s failure to make the necessary materials of inferior quality furnished by him,
repairs was due to the failure of the lessee or or due to any violation of the terms of the
usufructuary to notify him, the proprietor is contract. If the engineer or architect
entitled to indemnification for damages he may supervises the construction, he shall be
have been required to pay to the parties. solidarily liable with the contractor.
Liability does not attach to the proprietor if the Acceptance of the building, after completion,
damage was caused by any defect in the does not imply waiver of any of the cause of
construction mentioned in Article 1723, in action by reason of any defect mentioned in
which case the action should be against the the preceding paragraph.
engineer or architect.
The action must be brought within ten years
Under Article 2190, the plaintiff is required following the collapse of the building.
to prove
1. The total or partial collapse of a Engineer or architect who drew up the plans
building or structure and specifications is liable if the building
2. That the defendant is the proprietor collapses within 15 years due to:
3. That the collapse was due to the lack 1. A defect in those plans and specifications; or
of necessary repairs 2. Due to the defects in the ground.
Page 494 of 532

Contractor is liable if the edifice falls within 15 DATA PRIVACY ACT OF 2012
years due to: RA 10173
1. Defects in the construction; Section 3. Definition of Terms.
2. The use of materials of inferior quality (g) Personal information refers to any
furnished by the contractor; or information whether recorded in a material
3. Due to any violation of the terms of the form or not, from which the identity of an
contract. individual is apparent or can be reasonably
and directly ascertained by the entity holding
Here, the plaintiff need only prove that such the information, or when put together with
conditions (defects) exist and need not prove other information would directly and certainly
that negligence of the defendant be the cause identify an individual.
of the conditions.
(h) Personal information controller refers to
9. Head of family a person or organization who controls the
collection, holding, processing or use of
Art 2193, CC. The head of a family that lives personal information, including a person or
in a building or a part thereof, is responsible organization who instructs another person or
for damages caused by things thrown or organization to collect, hold, process, use,
falling from the same. transfer or disclose personal information on
his or her behalf. The term excludes:
The purpose of the law is to relieve the injured (1) A person or organization who
party of the difficulty of determining and proving performs such functions as instructed by
who threw the thing or what caused it to fall, or another person or organization; and
that either was due to the fault or negligence of (2) An individual who collects, holds,
any particular individual. processes or uses personal information in
connection with the individual’s personal,
Lessee is considered as the head of the family. family or household affairs.
It is enough that he lives in and has control over
it [Dingcong v. Kanaan, G.R. No. L-47033 (k) Privileged information refers to any and
(1941)]. all forms of data which under the Rules of
Court and other pertinent laws constitute
privileged communication.
10. Violations of data privacy
(l) Sensitive personal information refers to
The right to data privacy is the right of an personal information:
individual not to have private information about (1) About an individual’s race, ethnic
himself disclosed, and to live freely from origin, marital status, age, color, and
surveillance and intrusion. religious, philosophical or political
affiliations;
RA 10173, or the Data Privacy Act, protects (2) About an individual’s health,
individuals from unauthorized processing of education, genetic or sexual life of a person,
personal information that is (1) private, not or to any proceeding for any offense
publicly available; and (2) identifiable, where committed or alleged to have been
the identity of the individual is apparent either committed by such person, the disposal of
through direct attribution or when put together such proceedings, or the sentence of any
with other available information. court in such proceedings;
(3) Issued by government agencies
peculiar to an individual which includes, but
not limited to, social security numbers,
previous or current health records, licenses
Page 495 of 532

or its denials, suspension or revocation, and (d) Personal information processed for
tax returns; and journalistic, artistic, literary or research
(4) Specifically established by an purposes;
executive order or an act of Congress to be (e) Information necessary in order to
kept classified. carry out the functions of public authority
which includes the processing of personal
Section 4. Scope. – This Act applies to the data for the performance by the
processing of all types of personal independent, central monetary authority and
information and to any natural and juridical law enforcement and regulatory agencies of
person involved in personal information their constitutionally and statutorily
processing including those personal mandated functions. Nothing in this Act shall
information controllers and processors who, be construed as to have amended or
although not found or established in the repealed Republic Act No. 1405, otherwise
Philippines, use equipment that are located known as the Secrecy of Bank Deposits Act;
in the Philippines, or those who maintain an Republic Act No. 6426, otherwise known as
office, branch or agency in the Philippines the Foreign Currency Deposit Act; and
subject to the immediately succeeding Republic Act No. 9510, otherwise known as
paragraph: Provided, That the requirements the Credit Information System Act (CISA);
of Section 5 are complied with. (f) Information necessary for banks and
This Act does not apply to the following: other financial institutions under the
(a) Information about any individual who jurisdiction of the independent, central
is or was an officer or employee of a monetary authority or Bangko Sentral ng
government institution that relates to the Pilipinas to comply with Republic Act No.
position or functions of the individual, 9510, and Republic Act No. 9160, as
including: amended, otherwise known as the Anti-
(1) The fact that the individual is or was an Money Laundering Act and other applicable
officer or employee of the government laws; and
institution; (g) Personal information originally
(2) The title, business address and office collected from residents of foreign
telephone number of the individual; jurisdictions in accordance with the laws of
(3) The classification, salary range and those foreign jurisdictions, including any
responsibilities of the position held by the applicable data privacy laws, which is being
individual; and processed in the Philippines.
(4) The name of the individual on a
document prepared by the individual in the Section 11. General Data Privacy
course of employment with the government; Principles. – The processing of personal
(b) Information about an individual who information shall be allowed, subject to
is or was performing service under contract compliance with the requirements of this Act
for a government institution that relates to and other laws allowing disclosure of
the services performed, including the terms information to the public and adherence to
of the contract, and the name of the the principles of transparency, legitimate
individual given in the course of the purpose and proportionality.
performance of those services;
(c) Information relating to any Personal information must be:
discretionary benefit of a financial nature (a) Collected for specified and legitimate
such as the granting of a license or permit purposes determined and declared before,
given by the government to an individual, or as soon as reasonably practicable after
including the name of the individual and the collection, and later processed in a way
exact nature of the benefit; compatible with such declared, specified
and legitimate purposes only;
(b) Processed fairly and lawfully;
Page 496 of 532

(c) Accurate, relevant and, where who are accountable for the organization’s
necessary for purposes for which it is to be compliance with this Act. The identity of the
used the processing of personal information, individual(s) so designated shall be made
kept up to date; inaccurate or incomplete known to any data subject upon request.
data must be rectified, supplemented,
destroyed or their further processing SEC. 34. Extent of Liability. – If the offender
restricted; is a corporation, partnership or any juridical
(d) Adequate and not excessive in person, the penalty shall be imposed upon
relation to the purposes for which they are the responsible officers, as the case may be,
collected and processed; who participated in, or by their gross
(e) Retained only for as long as negligence, allowed the commission of the
necessary for the fulfillment of the purposes crime. If the offender is a juridical person, the
for which the data was obtained or for the court may suspend or revoke any of its rights
establishment, exercise or defense of legal under this Act. If the offender is an alien, he
claims, or for legitimate business purposes, or she shall, in addition to the penalties
or as provided by law; and herein prescribed, be deported without
(f) Kept in a form which permits further proceedings after serving the
identification of data subjects for no longer penalties prescribed. If the offender is a
than is necessary for the purposes for which public official or employee and lie or she is
the data were collected and processed: found guilty of acts penalized under Sections
Provided, That personal information 27 and 28 of this Act, he or she shall, in
collected for other purposes may lie addition to the penalties prescribed herein,
processed for historical, statistical or suffer perpetual or temporary absolute
scientific purposes, and in cases laid down disqualification from office, as the case may
in law may be stored for longer periods: be.
Provided, further, That adequate safeguards
are guaranteed by said laws authorizing their SEC. 36. Offense Committed by Public
processing. Officer. – When the offender or the person
responsible for the offense is a public officer
The personal information controller must as defined in the Administrative Code of the
ensure implementation of personal Philippines in the exercise of his or her
information processing principles set out duties, an accessory penalty consisting in
herein. the disqualification to occupy public office for
a term double the term of criminal penalty
SEC. 21. Principle of Accountability. – Each imposed shall he applied.
personal information controller is
responsible for personal information under Data Privacy Rights
its control or custody, including information
that have been transferred to a third party for 1. Right to be informed
processing, whether domestically or Personal data should never be collected,
internationally, subject to cross-border processed and stored by any organization
arrangement and cooperation. without the individual’s explicit consent, unless
(a) The personal information controller otherwise provided by law. Aside from
is accountable for complying with the protecting against unfair means of personal
requirements of this Act and shall use data collection, this right also requires personal
contractual or other reasonable means to information controllers (PICs) to notify
provide a comparable level of protection individuals if their data have been
while the information are being processed by compromised, in a timely manner.
a third party.
(b) The personal information controller
shall designate an individual or individuals
Page 497 of 532

2. Right to access incomplete, outdated, false, unlawfully

This is the individual’s right to find out whether obtained or unauthorized use of personal data,
an organization holds any personal data about considering any violation of their rights and
them and if so, gain “reasonable access” to freedoms as data subject.
them. Through this right, organizations may
also be asked to provide a written description 6. Right to file a complaint
of the kind of information they have about the If individuals feel that their personal information
individual as well as their purpose/s for holding has been misused, maliciously disclosed, or
them. improperly disposed, or that any of their data
privacy rights have been violated, they have a
3. Right to object right to file a complaint with the NPC.
This right can be exercised if the personal data
processing involved is based on consent or on 7. Right to rectify
legitimate interest. When the individual objects This refers to the right to dispute and have
or withholds consent, the PIC should no longer corrected any inaccuracy or error in the data a
process the personal data, unless the personal information controller (PIC) holds
processing is pursuant to a subpoena, for about the individual. The PIC should act on it
obvious purposes (contract, employer- immediately and accordingly, unless the
employee relationship, etc.) or a result of a request is vexatious or unreasonable. Once
legal obligation. corrected, the PIC should ensure that access
and receipt of both new and retracted
4. Right to erasure or blocking information. PICs should also furnish third
This is the right to suspend, withdraw or order parties with said information, should it be
the blocking, removal or destruction of requested by the data subject.
personal data. This right can be exercised
upon discovery and substantial proof of the 8. Right to data portability
following: This right assures that individuals remain in full
a. Personal data is incomplete, outdated, control of their data. Data portability allows
false, or unlawfully obtained. data subjects to obtain and electronically
b. It is being used for purposes the move, copy or transfer their data in a secure
individual did not authorize. manner, for further use. It enables the free flow
c. The data is no longer necessary for the of their personal information across the internet
purposes for which they were and organizations, according to their
collected. preference. This is important especially now
d. The individual has decided to withdraw that several organizations and services can
consent or object to its processing, and reuse the same data.
there is no overriding legal ground for
its processing.
e. The data concerns information
prejudicial to the data subject — unless
justified by freedom of speech, of
expression, or of the press; or
otherwise authorized (by court of law)
f. The processing is unlawful.
g. The personal information controller, or
the personal information processor,
violated the rights of the data subject.
5. Right to damages
The individual may claim compensation if they
suffered damages due to inaccurate,
Page 498 of 532

PERSONS WITH
LIABLE FOR DEFENSES OR EXCEPTIONS
SPECIAL LIABILITY
Manufacturers and
processors of Death and injuries caused by any
Absence of contractual relation not
foodstuffs, drinks, noxious or harmful substances
a defense
toilet articles and used
similar goods
Owner/creator of and
Resulting injury to another Liability attaches regardless of the
successive
(material annoyance, degree of care or skill exercised to
owner/possessor who
inconvenience, discomfort or hurt) avoid such injury
fails or refuses to
because of the nuisance
abate a nuisance
Public officer or
employee or private
Damages for impairment of rights
individual who violates
and liberties
rights under
Art. 32, CC
The death or injuries suffered by
any person by reason of the The defective public work is not
Provinces, Cities and
defective condition of roads, under the LGU’s control or
Municipalities
streets, bridges, public buildings, supervision
and other public works
! Solidary liability only if the
owner was in the vehicle
and if he could have
Owner of Motor prevented it thru due
Motor vehicle mishaps
Vehicle diligence
! If not in vehicle, apply Art.
2180 for his liability as
employer
a. Total or partial collapse of
building or structure if due
to lack of necessary
repairs
b. Explosion of machinery
which has not been taken
cared of with due
diligence, and the Responsibility for collapse should
Proprietor of building/
inflammation of explosive be due to the lack of necessary
structure
substances which have repairs
not been kept in a safe
and adequate place
c. By excessive smoke,
which may be harmful to
persons or property
d. By falling of trees situated
at or near highways or
Page 499 of 532

lanes, if not caused by

force majeure
e. By emanations from
tubes, canals, sewers or
deposits of infectious
matter, constructed
without precautions
suitable to the place
If within 15 years from completion
of the structure, the same should
collapse by reason of:
a. Defects in the plans or
specifications; or
b. Defects in the ground.
If within the same period, the
edifice falls on account of:
Action not brought within 10 years
Engineer or Architect a. Defects in the
from collapse
construction;
b. Used of materials of
inferior quality furnished
by him; or
c. Violation of the terms of
the contract and he
supervised the
construction.
If within 15 years from the
completion of the structure, the
edifice falls on account of:
a. Defects in the
Action not brought within 10 years
Contractor construction;
from collapse
b. Used of materials of
inferior quality furnished
by him; or
c. Violation of the terms of
the contract
Head of the Family that Liable for damages caused by
lives in a building or things thrown or falling from the
any part thereof same
Collection, processing and
storage of personal information
and sensitive personal
Violators of data information. Specifically:
privacy a. Unauthorized Processing
b. Accessing due to
Negligence
c. Improper Disposal
Page 500 of 532

d. Processing for
Unauthorized Purposes
e. Unauthorized Access or
Intentional Breach
f. Concealment of Security
Breaches Involving
Sensitive Personal
Information
g. Malicious Disclosure
h. Unauthorized Disclosure.
“escape or be lost” and so be removed from his

I. STRICT LIABILITY control. It is likewise immaterial that the animal
was tame and was merely provoked by the
victim. The law does not speak only of vicious
animals but covers even tame ones as long as
1. Animals; possessor and user they cause injury [Vestil v. IAC, G.R. No. 74431
of an animal (1989)].
Art. 2183, CC. The possessor of an animal or Possible defenses against this liability
whoever may make use of the same is 1. Force Majeure
responsible for the damage which it may 2. Fault of person suffering damage
cause, although it may escape or be lost. This 3. Act of third persons
responsibility shall cease only in case the
damage should come from force majeure or 2. Attractive Nuisance
from the fault of the person who has suffered
damage. Art 2193, CC. A nuisance is any act,
omission, establishment, business,
The law makes no distinction as to what kind of condition of property, or anything else which:
animal is used or possessed. Hence, it may be (1) Injures or endangers the health or
construed as applicable generally to all safety of others; xxx
animals, whether domestic, domesticated, or
wild. It would seem that birds are covered since Doctrine of Attractive Nuisance
they can also cause damage. [de Leon] One who maintains on his premises dangerous
instrumentalities or appliances of a character
Possession of the animal, not ownership, is likely to attract children in play, and who fails to
determinative of liability under Art. 2183. The exercise ordinary care to prevent children from
obligation imposed by said article is not based playing therewith or resorting thereto, is liable
on the negligence or on the presumed lack of to a child of tender years who is injured
vigilance of the possessor or user of the animal thereby, even if the child is technically a
causing damage. It is based on natural equity trespasser in the premises [Hidalgo
and on the principle of social interest that he Enterprises v. Balandan, G.R. No. L-3422
who possesses animals for his utility, pleasure, (1952)].
or service, must answer for any damage which
such animal may cause. The contention that The owner's failure to take reasonable
the defendant could not be expected to precautions to prevent the child from entering
exercise remote control of the animal is not his premises at a place where he knows or
acceptable. In fact, Art. 2183 holds the ought to know that children are accustomed to
possessor liable even if the animal should roam about or to which their childish instincts
Page 501 of 532

and impulses are likely to attract them is a 3. Negligence

breach of duty, a negligent omission, for which Failure to meet safety and quality standards for
he may and should be held responsible, if the consumer products [Art. 5 to 46 of RA 7394]
child is actually injured, without other fault on creates liability based on negligence. It is the
its part than that it had entered on the premises failure to observe the requisite due care
of a stranger without his express invitation or considering the circumstances, governed by
permission. [Taylor v. MERALCO, G.R. No. L- the provisions on quasi-delict.
4977 (1910)].
4. Strict Liability
The attractive nuisance doctrine generally is For instances under Art. 97-99 (defective
not applicable to bodies of water, artificial as products and services), the primarily liability for
well as natural, in the absence of some unusual death or injury is on the manufacturer and
condition or artificial feature other than the processor, instead of the seller. There is no
mere water and its location [Hidalgo requirement that they act negligently.
Enterprises v. Balandan, G.R. No. L-3422
(1952)]. CONSUMER ACT
RA 7394, Secs. 92-107 (Ch. 1)
3. Products liability; Consumer
Act Article 4. Definition of Terms.
(n) "Consumer" means a natural person who
Coverage of the Consumer Act is a purchaser, lessee, recipient or
The law covers consumer products and prospective purchaser, lessor or recipient of
services which are defined in Art. 4(q) as consumer products, services or credit.
“goods, services and credits, debts or
obligations which are primarily for personal, (as) "Manufacturer" means any person who
family, household or agricultural purposes, manufactures, assembles or processes
which shall include but not limited to, food, consumer products, except that if the goods
drugs, cosmetics and devices.” are manufactured, assembled or processed
for another person who attaches his own
Bases of Liability to Consumers brand name to the consumer products, the
latter shall be deemed the manufacturer. In
1. Fraud/misrepresentation (based on Art. case of imported products, the
33, CC) manufacturer's representatives or, in his
Art. 50 of RA 7394 prohibits against deceptive absence, the importer, shall be deemed the
sales acts or practices, while Art. 51 prohibits manufacturer.
unfair or unconscionable sales acts of
practices. However, not all expressions of Article 92. Exemptions. – If the concerned
opinion constitute misrepresentation; usual department finds that for good or sufficient
exaggerations of trade under Art. 1340, CC or reasons, full compliance with the labeling
mere expressions of an opinion not made by an requirements otherwise applicable under
expert under Art. 1341, CC are strictly not this Act is impracticable or is not necessary
actionable. for the adequate protection of public health
and safety, it shall promulgate regulations
2. Warranty exempting such substances from these
A representation made by a seller is a warranty requirements to the extent it deems
if he is an expert, and the buyer is induced to consistent with the objective of adequately
part with his money on the basis of this safeguarding public health and safety, and
representation. The law on sales provides for any hazardous substance which does not
implied warranties against hidden defects. bear a label in accordance with such
Page 502 of 532

regulations shall be deemed mislabeled responsibility in the cause of the damage

hazardous substance. effected.
Article 97. Liability for the Defective Article 99. Liability for Defective Services. –
Products. – Any Filipino or foreign The service supplier is liable for redress,
manufacturer, producer, and any importer, independently of fault, for damages caused
shall be liable for redress, independently of to consumers by defects relating to the
fault, for damages caused to consumers by rendering of the services, as well as for
defects resulting from design, manufacture, insufficient or inadequate information on the
construction, assembly and erection, fruition and hazards thereof.
formulas and handling and making up,
presentation or packing of their products, as The service is defective when it does not
well as for the insufficient or inadequate provide the safety the consumer may
information on the use and hazards thereof. rightfully expect of it, taking the relevant
circumstances into consideration, including
A product is defective when it does not offer but not limited to:
the safety rightfully expected of it, taking 1. the manner in which it is provided;
relevant circumstances into consideration, 2. the result of hazards which may
including but not limited to: reasonably be expected of it;
(a) presentation of product 3. the time when it was provided.
(b) use and hazards reasonably
expected of it; A service is not considered defective
(c) the time it was put into circulation. because of the use or introduction of new
techniques.
A product is not considered defective
because another better quality product has The supplier of the services shall not be held
been placed in the market. The liable when it is proven:
manufacturer, builder, producer or importer (a) that there is no defect in the service
shall not be held liable when it evidences: rendered;
(a) that it did not place the product on (b) that the consumer or third party is
the market; solely at fault.
(b) that although it did place the product
on the market such product has no defect; Article 100. Liability for Product and Service
(c) that the consumer or a third party is Imperfection. – The suppliers of durable or
solely at fault. nondurable consumer products are jointly
liable for imperfections in quality that render
the products unfit or inadequate for
Article 98. Liability of Tradesman or Seller. consumption for which they are designed or
– The tradesman/seller is likewise liable, decrease their value, and for those resulting
pursuant to the preceding article when: from inconsistency with the information
(a) it is not possible to identify the provided on the container, packaging, labels
manufacturer, builder, producer or importer; or publicity messages/advertisement, with
(b) the product is supplied, without clear due regard to the variations resulting from
identification of the manufacturer, producer, their nature, the consumer being able to
builder or importer; demand replacement to the imperfect parts.
(c) he does not adequately preserve
perishable goods. The party making If the imperfection is not corrected within
payment to the damaged party may exercise thirty (30) days, the consumer may
the right to recover a part of the whole of the alternatively demand at his option:
payment made against the other responsible
parties, in accordance with their part or
Page 503 of 532

(a) the replacement of the product by (d) the immediate reimbursement of the
another of the same kind, in a perfect state amount paid, with monetary updating
of use; without prejudice to losses and damages if
(b) the immediate reimbursement of the any.
amount paid, with monetary updating,
without prejudice to any losses and The provisions of the fifth paragraph of
damages; Article 99 shall apply to this Article.
(c) a proportionate price reduction.
The immediate supplier shall be liable if the
The parties may agree to reduce or increase instrument used for weighing or measuring
the term specified in the immediately is not gauged in accordance with official
preceding paragraph; but such shall not be standards.
less than seven (7) nor more than one
hundred and eighty (180) days. Article 102. Liability for Service Quality
Imperfection. – The service supplier is liable
The consumer may make immediate use of for any quality imperfections that render the
the alternatives under the second paragraph services improper for consumption or
of this Article when by virtue of the extent of decrease their value, and for those resulting
the imperfection, the replacement of the from inconsistency with the information
imperfect parts may jeopardize the product contained in the offer or advertisement, the
quality or characteristics, thus decreasing its consumer being entitled to demand
value. alternatively at his option:
(b) the performance of the services,
If the consumer opts for the alternative under without any additional cost and when
sub-paragraph (a) of the second paragraph applicable;
of this Article, and replacement of the (c) the immediate reimbursement of the
product is not possible, it may be replaced amount paid, with monetary updating
by another of a different kind, mark or model: without prejudice to losses and damages, if
Provided, That any difference in price may any;
result thereof shall be supplemented or (d) a proportionate price reduction.
reimbursed by the party which caused the
damage, without prejudice to the provisions Reperformance of services may be
of the second, third and fourth paragraphs of entrusted to duly qualified third parties, at the
this Article. supplier's risk and cost.
Article 101. Liability for Product Quantity Improper services are those which prove to
Imperfection. – Suppliers are jointly liable for be inadequate for purposes reasonably
imperfections in the quantity of the product expected of them and those that fail to meet
when, in due regard for variations inherent the provisions of this Act regulating service
thereto, their net content is less than that rendering.
indicated on the container, packaging,
labeling or advertisement, the consumer Article 103. Repair Service Obligation. –
having powers to demand, alternatively, at When services are provided for the repair of
his own option: any product, the supplier shall be considered
(a) the proportionate price implicitly bound to use adequate, new,
(b) the supplementing of weight or original replacement parts, or those that
measure differential; maintain the manufacturer's technical
(c) the replacement of the product by specifications unless, otherwise authorized,
another of the same kind, mark or model, as regards to the latter by the consumer.
without said imperfections;
Page 504 of 532

Article 104. Ignorance of Quality 1. Classification

Imperfection. – The supplier's ignorance of
the quality imperfections due to inadequacy According to Purpose:
of the products and services does not
exempt him from any liability. a. For adequate reparation of the injury
1. Compensatory damages
Article 105. Legal Guarantee of Adequacy. – (reparation of pecuniary losses)
The legal guarantee of product or service 2. Moral (reparation for non-pecuniary
adequacy does not require an express losses: injury to feelings; physical
instrument or contractual exoneration of the suffering, etc.)
supplier being forbidden.
b. For vindication of the right violated:
Article 106. Prohibition in Contractual Nominal damages
Stipulation. – The stipulation in a contract of
a clause preventing, exonerating or reducing c. For less than adequate reparation:
the obligation to indemnify for damages Moderate damages
effected, as provided for in this and in the
preceding Articles, is hereby prohibited, if d. For deterring future violations:
there is more than one person responsible Exemplary or corrective
for the cause of the damage, they shall be
jointly liable for the redress established in the According to Manner of Determination
pertinent provisions of this Act. However, if
the damage is caused by a component or a. Conventional (or liquidated)
part incorporated in the product or service, b. Non-conventional, which may either be:
its manufacturer, builder or importer and the (i) Statutory (fixed by law, as in
person who incorporated the component or moratory interest)
part are jointly liable. (ii) Judicial (determined by the courts)
General Damages
DAMAGES Those which are the natural and necessary
result of the wrongful act or omission asserted
as the foundation of liability. It includes those
A. GENERAL which follow as a conclusion of law from the
CONSIDERATIONS statement of the facts of the injury.
Special Damages
Damages may be defined as the pecuniary
Damages that arise from the special
compensation, recompense, or satisfaction for
circumstance of the case, which, if properly
an injury sustained, or as otherwise expressed,
pleaded, may be added to the general
the pecuniary consequences, which the law
damages which the law presumes or implies
imposes for the breach of some duty or the
from the mere invasion of the plaintiff’s rights.
violation of some right [People v. Ballesteros,
Special damages are the natural, but NOT the
G.R. No. 120921 (1998)].
necessary result of an injury. These are not
implied by law.
It is the recompense or compensation awarded
for the damage suffered [Custodio v. CA, G.R.
No. 116100 (1996)]. 2. Kinds of Damages
Art. 2197, CC. Damages may be:
a. Actual or compensatory;
b. Moral;
Page 505 of 532

c. Nominal;
d. Temperate or moderate; Actual or compensatory damages cannot be
e. Liquidated; or presumed, but must be proven with a
f. Exemplary or corrective. reasonable degree of certainty [MCC Industrial
Sales Corp. v. Ssangyong Corp., G.R. No.
Actual and Compensatory 170633 (2007)].
Damages
Damages must be proved with reasonable
Compensatory damages accuracy, even when not denied [Valencia v.
Damages in satisfaction of, or in recompense Tantoco, G.R. No. L-7267 (1956)].
for, loss or injury sustained. The phrase “actual
damages” is sometimes used as a synonym of When is a person entitled? [PeLoRePLS]
compensatory damages. 1. When there is a pecuniary loss suffered by
him;
Requisites: 2. When he has alleged and prayed for such
To seek recovery of actual damages, it is relief [Manchester Dev’t Corp v. CA, G.R.
necessary to prove the actual amount of loss No. L-75919 (1987)];
with a reasonable degree of certainty, 3. When he has duly proved it;
premised upon competent proof and on the 4. When provided by law or by stipulation.
best evidence obtainable [Asilo, Jr. v. People
and Sps. Bombasi, G.R. No. 159017-18 No proof of pecuniary loss is necessary for:
(2011); ICTSI v. Chua, G.R. No. 195031 moral, nominal, temperate, liquidated or
(2014)]. exemplary damages. The assessment of such
damages is discretionary upon the court,
Alleged and proved with certainty except liquidated ones. [Art. 2216, CC].
Art. 2199, CC. Except as provided by law or
If the physical integrity of a person’s body is
by stipulation, one is entitled to an adequate
compensation only for such pecuniary loss violated or diminished, actual injury is suffered
suffered by him as he has duly proved. Such for which actual or compensatory damages are
compensation is referred to as actual or due and assessable. Such violation entitles a
compensatory damages. person to actual or compensatory damages. A
scar, especially on a woman’s face, is a
violation of bodily integrity, giving rise to a
The damages must be proven by competent
legitimate claim for restoration to her condition
evidence (admissible or probative).
ante. [Gatchalian v. Delim, G.R. No. 56487
(1991)].
There must be pleading and proof of actual
damages suffered for the same to be
Components:
recovered. In addition to the fact that the
Actual damage covers the following: [LIPA]
amount of loss must be capable of proof, it
1. Value of loss; unrealized profit
must also be actually proven with a reasonable
2. Attorney’s fees and expenses of litigation
degree of certainty, premised upon competent
3. Interest
proof or the best evidence obtainable such as
receipts, cash and check vouchers, and other
1. Loss Covered
documentary evidence of the same nature. The
burden of proof of the damage suffered is
IN GENERAL
imposed on the party claiming the same. Self-
serving statements are not sufficient basis for Art. 2200, CC. Indemnification for damages
an award of actual damages [Oceaneering shall comprehend not only the value of the
Contractors v. Baretto, G.R. No. 184215 loss suffered, but also that of the profits
(2011)]. which the obligee failed to obtain.
Page 506 of 532

Two kinds of actual damages [PNOC v. CA, ATTITUDE, he shall

G.R. No. 107518, (1998)]: be responsible for all
1. Damnum emergens/ dano emergente - damages which may
actual loss or loss of what a person already be reasonably
possesses attributed to the
2. Lucrum cessans/lucro cesante - a breach or non-
cession of gain or amount of profit lost or performance.
loss of which would have pertained to a ● Liability extends to all
person damages which are
the natural and
Indemnification for damages is not limited to probable
damnum emergens but extends to lucrum consequence of the
Crimes
cessans. This rule is important when the thing Art. act or omission
and
lost or damaged either earns income or is used 2202 complained of.
Quasi-
for business. ● WON the damage
delicts
was foreseen or could
The award of damages for loss of earning have been
capacity is concerned with the determination of reasonably foreseen
losses or damages sustained by the [plaintiffs] by the defendant is
as dependents and intestate heirs of the irrelevant.
deceased. Such damages consist, not only of
the full amount of his earnings, but also of the IN CONTRACTS AND QUASI-CONTRACTS
support they received or would have received Art. 2201, CC. In contracts and quasi-
from him had he not died as a consequence of contracts, the damages for which the obligor
the negligence of [defendant’s] agent. Only net who acted in good faith is liable shall be
earnings, and not gross earnings are to be those that are the natural and probable
considered, that is, the total of the earnings consequences of the breach of the
less expenses necessary in the creation of obligation, and which the parties have
such earnings or income and less living and foreseen or could have reasonably foreseen
other incidental expenses [Candano Shipping at the time the obligation was constituted.
Lines, Inc. v. Sugata-on, G.R. No. 163212
(2007)]. In case of fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible for
Extent or scope of actual damages all damages which may be reasonably
SOURCE EXTENT OF LIABILITY attributed to the non-performance of the
● If the obligor acted in obligation.
GOOD FAITH, he
shall be liable for all Art. 2214, CC. In quasi-delicts, the
natural and probable contributory negligence of the plaintiff shall
consequences of the reduce the damages that he may recover.
breach, which the
Contracts parties have foreseen Art. 2215, CC. In c notrac st , quas - i
Art. and or could have c notrac st ,and quas -delic
i st ,the c uort may
2201 Quasi- reasonably foreseen equitably mitigate the damages under
contracts at the time the c rcums
i anc
t se other than the c sa ereferred
obligation was to in the prec deing artic e,l as in the following
constituted. ins anc
t se:
● If the obligor acted 1. That the plaintiff himself has
with FRAUD, BAD contravened the terms of the contract;
FAITH, MALICE or 2. That the plaintiff has derived some
WANTON benefit as a result of the contract;
Page 507 of 532

3. In cases where exemplary damages IN CRIMES AND QUASI-DELICTS

are to be awarded, that the defendant Art. 2202, CC. In crimes and quasi delicts,
acted upon the advice of counsel; the defendant shall be liable for all damages
4. That the loss would have resulted in which are the natural and probable
any event; consequences of the act or omission
5. That since the filing of the action, the complained of. It is not necessary that such
defendant has done his best to lessen damages have been foreseen or could have
the plaintiff's loss or injury. reasonably been foreseen by the defendant.
The damages recoverable upon breach of In cases of crimes, damages are to be

contract are, primarily, the ordinary, natural increased or decreased according to
and necessary damages resulting from the aggravating or mitigating circumstances
breach. present.
Other damages, known as special damages, Contributory negligence of the plaintiff, in case
are recoverable where it appears that the of quasi-delicts, shall reduce the damages to
particular conditions which made such which he may be entitled. However, in cases of
damages a probable consequence of the crimes, there is no mitigation for contributory
breach were known to the delinquent party at negligence of the plaintiff.
the time the contract was made [Daywalt v.
Recoletos et al., G.R. No. L-13505 (1919)]. The principal consideration for the award of
damages is the penalty provided by law or
Bad faith does not simply connote bad imposable for the offense because of its
judgment or negligence; it imports a dishonest heinousness, and not the public penalty
purpose or some moral obliquity and conscious actually imposed on the offender. The fact of
doing of wrong; it partakes of the nature of minority of the offender at the time of the
fraud. In this case, BPI-FB acted out of the commission of the offense has no bearing on
impetus of self-protection and not out of the gravity and extent of injury caused to the
malevolence or ill will. BPI-FB was not in the victim and her family. Hence, notwithstanding
corrupt state of mind contemplated in Art. 2201 the fact that the imposable public penalty
and should not be held liable for all damages against the offender should be lowered due to
being imputed to it for its breach of obligation his minority, there is no justifiable ground to
[BPI Family Bank v. Franco, G.R. No. 123498 depart from the jurisprudential trend in the
(2007)]. award of damages in the case of qualified rape,
considering the compensatory nature of the
Overbooking amounts to bad faith, entitling the award of civil indemnity and moral damages.
passengers to an award of moral damages [People v. Sarcia, G.R. No. 169641 (2009)].
when the airline did not allow passengers to
board their flight despite having confirmed their 2. Earning Capacity; Business Standing
tickets. Hence, in accordance with Art. 2201,
TransWorld was held responsible for all the Art. 2205, CC. Damages may be recovered:
damages which may be reasonably attributed 1. For loss or impairment of earning
to the non-performance of its obligation capacity in cases of temporary or
[Spouses Zalamea v. CA, G.R. No. 104235 permanent personal injury;
(1993)]. 2. For injury to the plaintiff's business
standing or commercial credit.
Loss or impairment of earning capacity

The Court did not award actual damages
because it was found that plaintiff’s
employment was lost even before the injury
Page 508 of 532

upon which she was suing. The Court equated Additional Exception: Testimonial evidence
loss of employment with loss of earning suffices to establish a basis for which the court
capacity [Gatchalian v. Delim, supra]. can make a fair and reasonable estimate of the
loss of earning capacity [Pleyto v. Lomboy,
The plaintiff need not be actually engaged in G.R. No. 148737 (2004)]
gainful employment to recover damages due to
loss or impairment of earning capacity. In Note: Such an exception to documentary proof
determining the amount of damages to be requirement only exists as to the loss of
awarded, the Supreme Court considered the earning capacity.
plaintiff’s age, probable life expectancy, the
state of his health, and his mental and physical 3. Attorney’s fees and expenses of litigation
condition before the accident. The court took
into account [the plaintiff’s] outstanding Art. 2208, CC. In the absence of stipulation,
abilities, and the possibility that he would have attorney's fees and expenses of litigation,
enjoyed a successful professional career in other than judicial costs, cannot be
banking [Mercury Drug v. Huang, G.R. No. recovered, except:
172122 (2007)]. 1. When exemplary damages are
awarded;
Injury to business standing or commercial 2. When the defendant's act or omission
credit has compelled the plaintiff to litigate with
Loss of goodwill should be proven with the third persons or to incur expenses to
same standard of proof as other compensatory protect his interest;
damages [Tanay Recreation Center v. Fausto, 3. In criminal cases of malicious
G.R. No. 140182 (2005)]. prosecution against the plaintiff;
4. In case of a clearly unfounded civil
Formula for the net earning capacity action or proceeding against the
plaintiff;
Net earning capacity = Life Expectancy × 5. Where the defendant acted in gross and
(Gross annual income – Reasonable living evident bad faith in refusing to satisfy
expenses) the plaintiff's plainly valid, just and
[People v. Aringue, G.R. No. 116487 (1997); demandable claim;
Candano v. Sugata-On, G.R. 163212, (2007)]. 6. In actions for legal support;
7. In actions for the recovery of wages of
household helpers, laborers and skilled
Where: Life expectancy = × (80 – age of workers;
victim at the time of death) 8. In actions for indemnity under
workmen's compensation and
General Rule: Damages for loss of earning employer's liability laws;
capacity shall be awarded in every case, and 9. In a separate civil action to recover civil
that claimant shall present documentary liability arising from a crime;
evidence to substantiate claim for damages. 10. When at least double judicial costs are
[Tan, et al. v. OMC Carriers, Inc., G.R. No. awarded;
190521 (2011)]. 11. In any other case where the court
deems it just and equitable that
Exceptions: attorney's fees and expenses of
1. If the deceased was self-employed and litigation should be recovered.
earning less than the minimum wage; or
2. The deceased was a daily wage worker In all cases, the attorney's fees and
earning less than the minimum wage under expenses of litigation must be reasonable.
current labor laws. [Philippine Hawk v. Lee,
G.R. No. 166869 (2010)].
Page 509 of 532

General Rule: Attorney’s fees and costs of Attorney's fees cannot be recovered except in
litigation are recoverable IF stipulated. cases provided for in CC 2208 [MERALCO v.
Ramoy, G.R. No. 158911 (2008)].
Exceptions:
If there is no stipulation, they are recoverable Attorney’s fees and expenses of litigation are
only in the following cases: recoverable only in the concept of actual
1. By reason of malice or bad faith damages, not as moral damages nor judicial
a. When exemplary damages are costs. Hence, such must be specifically prayed
awarded for and may not be deemed incorporated within
b. In case of a clearly unfounded civil a general prayer for "such other relief and
action remedy as this court may deem just and
c. Where defendant acted in gross and equitable” [Briones v. Macabagdal, G.R. No.
evident bad faith 150666 (2010)].
d. When at least double judicial costs are
awarded For Art. 2208 (2), an adverse decision does
2. By reason of plaintiff’s indigence in not ipso facto justify an award of attorney’s
a. Actions for legal support fees to the winning party. Even when a
b. Actions for recovery of wages of claimant is compelled to litigate with third
laborers, etc. persons or to incur expenses to protect his
c. Actions for workmen’s compensation rights, still attorney’s fees may not be awarded
3. By reason of crimes in where no sufficient showing of bad faith could
a. Criminal cases of malicious be reflected in a party’s persistence in a case
prosecution other than an erroneous conviction of the
b. Separate actions to recover civil liability righteousness of his cause [Bank of America v.
arising from crime Philippine Racing Club, G.R. No. 150228
4. By reason of equity (2009)].
a. Where the defendant’s act compelled
plaintiff to litigate with third persons 4. Interest
b. Where the Court deems it just and
equitable Art. 2209, CC. If the obligation consists in
the payment of a sum of money, and the
Note: In all cases, attorney’s fees and costs of debtor incurs in delay, the indemnity for
litigation must be reasonable. damages, there being no stipulation to the
contrary, shall be the payment of the
Even if expressly stipulated, attorney’s fees are interest agreed upon, and in the absence of
subject to control by the Courts. stipulation, the legal interest, which is six
per cent per annum.
Two kinds of attorney’s fees:
1. Ordinary - reasonable compensation paid Art. 2210, CC. Interest may, in the
to a lawyer for his services discretion of the court, be allowed upon
2. Extraordinary - awarded to a successful damages awarded for breach of contract.
litigant; to be paid by the losing party as
indemnity for damages. [Aquino v. Art. 2211, CC. In crimes and quasi-delicts,
Casabar, G.R. No. 191470, (2015)]. interest as a part of the damages may, in a
Attorney’s fees in CC 2208 is an award made proper case, be adjudicated in the discretion
in favor of the litigant, not of his counsel, and of the court.
the litigant is the judgment creditor who may
enforce the judgment for attorney's fees by Art. 2212, CC. Interest due shall earn legal
execution [Quirante v. IAC, G.R. No. 73886 interest from the time it is judicially
(1989)]. demanded, although the obligation may be
silent upon this point.
Page 510 of 532

may have reckoning date,

Art. 2213, CC. Interest cannot be recovered been shall be
upon unliquidated claims or damages, stipulated computed from
except when the demand can be in writing, default, (i.e., from
established with reasonable certainty. provided EXTRAJUDICIAL
it is not OR JUDICIAL
Interest accrues in the concept of damages excessiv DEMAND in
when: e or accordance with
1. The obligation consists in the payment of a unconsci Art. 1169) until
sum of money; onable FULL PAYMENT
2. Debtor incurs in delay; and without
3. There being no stipulation to the contrary. compounding any
interest unless
Interest on the amount of damages awarded Compounded
may be imposed at the discretion of the court interest is
and in the prevailing legal interest. No interest, expressly
however, shall be adjudged on unliquidated stipulated by the
claims or damages until the demand can be parties, by law or
established with reasonable certainty [Lara’s regulation
Gifts & Decors, Inc., v. Midtown Industrial
Sales Inc., G.R. No. 225433 (2019)]. b. In the From
absence EXTRAJUDICIAL
Compounding of interest of OR JUDICIAL
Interest due shall earn legal interest from the stipulatio DEMAND in
time it is judicially demanded, although the n, the rate accordance with
obligation may be silent on the point. of Art. 1169 of the
interest, it Civil Code, UNTIL
Note that interest due can earn only at 6%, shall be FULL PAYMENT,
whether the rate of interest of the principal is 6% per without
greater than 6%. annum compounding
(legal any interest
Determination of legal interest interest) unless
1. When an obligation, regardless of its compounded
source (i.e., law, contracts, quasi- interest is
contracts, delicts or quasi-delicts) is expressly
breached, the contravenor can be held stipulated by law
liable for damages. or regulation.
2. With regard to an award of in the concept Interest Legal From the time of
of actual and compensatory damages, the due on the interest JUDICIAL
rate of interest, as well as the accrual principal (6%) DEMAND
thereof, is imposed, as follows [Lara’s Gifts amount UNTIL FULL
& Decors, Inc., v. Midtown Industrial Sales accruing PAYMENT
Inc., supra]: as of
judicial
BASE RATE ACCRUAL demand
When the obligation is breached and it shall
consists in the PAYMENT OF SUM OF SEPARAT
MONEY (i.e, a loan or forbearance of ELY earn
money, goods, credits or judgments): LEGAL
Interest a. That In the absence of INTEREST
due which a stipulated
Page 511 of 532

No legal interest will be added after the Art. 2203 exhorts parties suffering from loss or
judgement becomes final and executory injury to exercise the diligence of a good father
unlike in Eastern Shipping Lines v. CA, G.R. of a family to minimize the damages resulting
No. 97412 (1994) and Nacar v. Gallery from the act or omission in question. The one
Frames G.R. No. 189871, (2013) who is injured then by the wrongful or negligent
When an obligation, NOT constituting a loan act of another should exercise reasonable care
or forbearance of money, is breached: and diligence to minimize the resulting
When Legal From the time the damage. [Lim and Gunnaban v. CA, G.R. No.
demand is interest claim is made 125817 (2002)].
establishe (6%) EXTRAJUDICIAL
d with LY OR Burden of Proof
reasonable JUDICIALLY until The DEFENDANT has the burden of proof to
certainty FULL PAYMENT establish that the victim, by the exercise of the
When Legal From the date of diligence of a good father of a family, could
demand is interest the have mitigated the damages. In the absence of
NOT (6%) JUDGMENT OF such proof, the amount of damages cannot be
establishe THE TRIAL reduced. [Lim and Gunnaban v. CA, G.R. No.
d with COURT (at which 125817 (2002)].
reasonable time the
certainty) quantification Note:
of damages may The victim is required only to take such steps
be deemed to as an ordinary prudent man would reasonably
have been adopt for his own interest.
reasonably
ascertained) Moral Damages
UNTIL FULL
PAYMENT Art. 2217, CC. Moral damages include
No legal interest will be added after the physical suffering, mental anguish, fright,
judgement becomes final and executory serious anxiety, besmirched reputation,
unlike in Eastern Shipping Lines v. CA, G.R. wounded feelings, moral shock, social
No. 97412 (1994) andNacar v. Gallery humiliation, and similar injury. Though
Frames incapable of pecuniary computation, moral
damages may be recovered if they are the
Note: The new rate of legal interest (6%) in proximate result of the defendant's wrongful
Nacar v. Gallery Frames, G.R. No. 189871 act or omission.
(2013), does not apply to judgments that have
become final and executory prior to July 1, Art. 2218, CC. In the adjudication of moral
2013. damages, the sentimental value of property,
real or personal, may be considered.
Start of Delay
1. Extrajudicial: Demand letter Moral damages are emphatically not intended
2. Judicial: Filing of complaint to enrich a complainant at the expense of the
defendant. Its award is aimed at the
Duty to Minimize restoration, within the limits of the possible, of
Art. 2203, CC. The party suffering loss or the spiritual status quo ante, and it must be
injury must exercise the diligence of a good proportional to the suffering inflicted [Visayan
father of a family to minimize the damages Sawmill v. CA, G.R. No. 83851 (1993)].
resulting from the act or omission in
question. Mental suffering means distress or serious pain
as distinguished from annoyance, regret or
Page 512 of 532

vexation [Bagumbayan Corp. v. IAC, G.R. No. b. where the defendant is guilty of
L-66274 (1984)]. intentional tort, moral damages may
aptly be recovered. This rule also
When awarded (Art. 2217) applies to contracts when breached by
Awarded when injury consists of: tort.
1. Physical suffering 5. In culpa criminal, moral damages could be
2. Besmirched reputation lawfully due when the accused is found
3. Mental anguish guilty of physical injuries, lascivious acts,
4. Fright adultery or concubinage, illegal or arbitrary
5. Moral shock detention, illegal arrest, illegal search, or
6. Wounded feelings defamation.
7. Social humiliation 6. Malicious prosecution can also give rise to
8. Serious anxiety a claim for moral damages. The term
9. Similar injury "analogous cases," referred to in Art. 2219,
following the ejusdem generis rule, must be
Requisites for awarding moral damages held similar to those expressly enumerated
The conditions for awarding moral damages by the law.
are [InAP-2219] 7. Although the institution of a clearly
1. There must be an injury, whether physical, unfounded civil suit can at times be a legal
mental, or psychological, clearly justification for an award of attorney's fees,
substantiated by the claimant; such filing, however, has almost invariably
2. There must be a culpable act or omission been held not to be a ground for an award
factually established; of moral damages. [Expertravel & Tours v.
3. The wrongful act or omission of the CA., G.R. No. 130030 (1999)].
defendant must be the proximate cause of 8. The burden rests on the person claiming
the injury sustained by the claimant; and moral damages to show convincing
4. The award of damages is predicated on evidence for good faith is presumed. In a
any of the cases stated in Art. 2219 of the case involving simple negligence, moral
CC. [Sulpicio Lines v. Curso, G.R. No. damages cannot be recovered. [Villanueva
157009 (2010)]: v. Salvador, G.R. No. 139436 (2006)].
9. Failure to use the precise legal terms or
General Principles of Recovery: "sacramental phrases" of "mental anguish,
1. Moral damages must somehow be fright, serious anxiety, wounded feelings or
proportional to the suffering inflicted. moral shock" does not justify the denial of
2. In culpa contractual or breach of contract, the claim for damages. It is sufficient that
moral damages may be recovered when these exact terms have been pleaded in
the defendant acted in bad faith or was the complaint and evidence has been
guilty of gross negligence (amounting to adduced [Miranda-Ribaya v. Bautista, G.R.
bad faith) or in wanton disregard of his No. L-49390 (1980)].
contractual obligation and, exceptionally, 10. Even if the allegations regarding the
when the act of breach of contract itself is amount of damages in the complaint are
constitutive of tort resulting in physical not specifically denied in the answer, such
injuries. damages are not deemed admitted.
3. By special rule in Art. 1764, in relation to [Raagas, et al. v. Traya et al, G.R. No. L-
Art. 2206, moral damages may also be 20081 (1968)]
awarded in case the death of a passenger 11. An appeal in a criminal case opens the
results from a breach of carriage. whole case for review and this 'includes the
4. In culpa aquiliana or quasi-delict, review of the penalty, indemnity and
a. when an act or omission causes damages’. Even if the offended party had
physical injuries, or not appealed from said award, and the only
party who sought a review of the decision
Page 513 of 532

of said court was the accused, the court mentioned in No. 9 of this article, in the
can increase damages awarded. order named.
[Sumalpong v. CA, G.R. No. 123404
(1997)]. 1. In Criminal Offense resulting in physical
12. It can only be awarded to natural persons. injuries and death
The award of moral damages cannot be
granted in favor of a corporation because, Under paragraph (1), Art. 2219 of the CC,
being an artificial person and having moral damages may be recovered in a criminal
existence only in legal contemplation, it has offense resulting in physical injuries. In its
no feelings, no emotions, no senses, It generic sense, "physical injuries" includes
cannot, therefore, experience physical death [People v. Villaver, G.R. No. 133381
suffering and mental anguish, which can be (2001)].
experienced only by one having a nervous
system. [ABS-CBN v. CA, G.R. No. 128690 Moral damages are awarded despite the
(1999)]. absence of proof of mental and emotional
13. While it is true that besmirched reputation suffering of the victim’s heirs since a violent
is included in moral damages, it cannot death necessarily brings about emotional pain
cause mental anguish to a corporation, and anguish on the part of the victim’s family.
unlike in the case of a natural person, for a [People v. Vilarmea, G.R. No. 200029,
corporation has no reputation in the sense November 13, (2013)].
that an individual has, and besides, it is
inherently impossible for a corporation to 2. In Quasi-delicts resulting in physical
suffer mental anguish [NAPOCOR v. injuries
Philipp Brothers, G.R. Ni, 126204 (2001)].
In culpa aquiliana, or quasi-delict, moral
i. When moral damages are recoverable damages may be recovered (a) when an act or
omission causes physical injuries, or (b) where
Art. 2219, CC. Moral damages may be the defendant is guilty of intentional tort. The
recovered in the following and analogous SC held that an employer that is vicariously
cases: liable with its employee-driver may also be held
1. A criminal offense resulting in physical liable for moral damages to the injured plaintiff
injuries; [B.F. Metal v. Lomotan, G.R. No. 170813
2. Quasi-delicts causing physical injuries; (2008)].
3. Seduction, abduction, rape, or other
lascivious acts; In Laconsay v. Berog G.R. No. 188686 (2014),
4. Adultery or concubinage; the court awarded ₱1,000,000.00 as moral
5. Illegal or arbitrary detention or arrest; damages which is commensurate to the
6. Illegal search; suffering inflicted to Fidel. This is in accord with
7. Libel, slander or any other form of the extent and nature of the physical and
defamation; psychological injuries suffered by Fidel. The
8. Malicious prosecution; damage which caused the loss of his right leg
9. Acts mentioned in article 309; is not only permanent and lasting but would
10. Acts and actions referred to in articles likewise permanently alter and adjust the
21, 26, 27, 28, 29, 30, 32, 34, and 35. physiological changes that his body would
normally undergo as he matures.
The parents of the female seduced,
abducted, raped, or abused, referred to in 3. In seduction, abduction, rape, and other
No. 3 of this article, may also recover moral lascivious acts
damages.
The spouse, descendants, ascendants, and Anent the award of damages, civil indemnity ex
brothers and sisters may bring the action delicto is mandatory upon finding of the fact of
Page 514 of 532

rape while moral damages is awarded upon 5. In case of libel, slander, or any other
such finding without need of further proof form of defamation
because it is assumed that a rape victim has
actually suffered moral injuries entitling the The court ruled that the commission of Slight
victim to such award. [People v. Calongui, G.R. Oral Defamation caused injury to the
No. 170566(2006); People v. Lizano G.R. No. petitioner’s feelings and reputation as a
174470, (2007)] barangay captain. Hence, the petitioner is
entitled to moral damages in the sum of
The award of moral damages in a conviction for ₱5,000.00 [Occena v. Icamina, supra].
simple rape should equal the award of moral
damages in convictions for qualified rape. 6. In case of malicious prosecution
Truly, [the victim’s] moral suffering is just as
great as when her father who raped her is A person's right to litigate, as a rule, should not
convicted for qualified rape as when he is be penalized. This right, however, must be
convicted only for simple rape due to a exercised in good faith. Absence of good faith
technicality [People v. Bartolini, supra]. in the present case is shown by the fact that
petitioner clearly has no cause of action
Where there are multiple counts of rape and against respondents, but it recklessly filed a
other lascivious acts, the court awarded moral suit anyway and wantonly pursued pointless
damages for each count of lascivious acts and appeals, thereby causing the latter to spend
each count of rape [People v. Abadies, G.R. valuable time, money and effort in
Nos. 13946-50 (2002)]. unnecessarily defending themselves, incurring
damages in the process [Industrial Insurance v.
Note: Recovery may be had by the offended Bondad, G.R. No. 136722 (2000)].
party and also by her parents.
Moral damages cannot be recovered from a
4. In illegal or arbitrary detention or arrest person who has filed a complaint against
another in good faith, or without malice or bad
Since the crime committed in this case is faith. If damage results from the filing of the
kidnapping and failure to return a minor under complaint, it is damnum absque injuria [Mijares
Art. 270 of the RPC, the crime was clearly v. CA, G.R. No. 113558(1997)].
analogous to illegal and arbitrary detention or
arrest. Therefore, the award of moral damages 7. In acts referred to in Arts. 21, 26, 27, 28,
is justified [People v. Bernardo, G.R. No. 29, 32, 34 and 35, CC
144316 (2002)].
Art. 21, CC. Any person who wilfully causes
In People v. Madsali G.R. No. 179570 (2010), loss or injury to another in a manner that is
two separate informations were filed: 1) for contrary to morals, good customs or public
abduction with rape and 2) for serious illegal policy shall compensate the latter for the
detention. The court awarded moral damages damage.
predicated on AAA having suffered serious
anxiety and fright when she was detained for Acts Contra Bonus Mores
more than 5 months. Such award is different Moral damages are recoverable where the
from the award of moral damages based on the dismissal of the employee was attended by bad
rape case since the court granted it based on faith or fraud or constituted an act oppressive
the odious act or rape. to labor, or was done in a manner contrary to
morals, good customs, or public policy [Triple
Eight v. NLRC, G.R. No. 129584, (1998)].
Page 515 of 532

Art. 26, CC. Every person shall respect the albeit done in bad faith or in violation of the
dignity, personality, privacy and peace of "abuse of right" doctrine.
The following and similar acts, though they Art. 28, CC. Unfair competition in
may not constitute a criminal offense, shall agricultural, commercial or industrial
produce a cause of action for damages, enterprises or in labor through the use of
prevention and other relief: force, intimidation, deceit, machination or
1. Prying into the privacy of any other unjust, oppressive or highhanded
another's residence: method shall give rise to a right of action by
2. Meddling with or disturbing the person who thereby suffers damage.
the private life or family
relations of another; Art. 29, CC. When the accused in a criminal
3. Intriguing to cause another prosecution is acquitted on the ground that
to be alienated from his his guilt has not been proved beyond
friends; reasonable doubt, a civil action for damages
4. Vexing or humiliating for the same act or omission may be
another on account of his instituted. Such action requires only a
religious beliefs, lowly preponderance of evidence. Upon motion of
station in life, place of birth, the defendant, the court may require the
physical defect, or other plaintiff to file a bond to answer for damages
personal condition. in case the complaint should be found to be
malicious.
Violation of Human Dignity
The law seeks to protect a person from being If in a criminal case the judgment of acquittal
unjustly humiliated so the court awarded moral is based upon reasonable doubt, the court
damages to the plaintiff who was accused by shall so declare. In the absence of any
the respondent of having an adulterous declaration to that effect, it may be inferred
relationship with another woman in the from the text of the decision whether or not
presence of his wife, children, neighbors and the acquittal is due to that ground.
friends [Concepcion v. CA, G.R. No. 120706
(2000)]. Art. 32, CC. Any public officer or employee,
or any private individual, who directly or
Art. 27, CC. Any person suffering material indirectly obstructs, defeats, violates or in
or moral loss because a public servant or any manner impedes or impairs any of the
employee refuses or neglects, without just following rights and liberties of another
cause, to perform his official duty may file an person shall be liable to the latter for
action for damages and other relief against damages:
the latter, without prejudice to any (1) Freedom of religion;
disciplinary administrative action that may (2) Freedom of speech;
be taken. (3) Freedom to write for the press or to
maintain a periodical publication;
Refusal or Neglect of Duty (4) Freedom from arbitrary or illegal
Under Art. 27, in relation to Arts. 2219 and detention;
2217, a public officer may be liable for moral (5) Freedom of suffrage;
damages for as long as the moral damages (6) The right against deprivation of property
suffered by [the plaintiff] were the proximate without due process of law;
result of [defendant’s] refusal to perform an (7) The right to a just compensation when
official duty or neglect in the performance private property is taken for public use;
thereof. In fact, under Arts. 19 and 27 of the (8) The right to the equal protection of the
CC, a public official may be made to pay laws;
damages for performing a perfectly legal act,
Page 516 of 532

(9) The right to be secure in one's person, The indemnity shall include moral damages.
house, papers, and effects against Exemplary damages may also be
unreasonable searches and seizures; adjudicated.
(10) The liberty of abode and of changing The responsibility herein set forth is not
the same; demandable from a judge unless his act or
(11) The privacy of communication and omission constitutes a violation of the Penal
correspondence; Code or other penal statute.
(12) The right to become a member of
associations or societies for purposes Violation of Civil and Political Rights
not contrary to law; The purpose of [CC 32] is to provide a sanction
(13) The right to take part in a peaceable to the deeply cherished rights and freedoms
assembly to petition the government for enshrined in the Constitution. Under [CC 32], it
redress of grievances; is not necessary that the public officer acted
(14) The right to be free from involuntary with malice or bad faith. To be liable, it is
servitude in any form; enough that there was a violation of the
(15) The right of the accused against constitutional rights of the petitioner, even on
excessive bail; the pretext of justifiable motives or good faith in
(16) The right of the accused to be heard by the performance of one's duties [Cojuangco v.
himself and counsel, to be informed of CA, G.R. No. 119398 (1999)].
the nature and cause of the accusation
against him, to have a speedy and Art. 32 of the CC provides that moral damages
public trial, to meet the witnesses face are proper when the rights of individuals,
to face, and to have compulsory including the right against deprivation of
process to secure the attendance of property without due process of law, are
witness in his behalf; violated [Meralco v. Spouses Chua, G.R. No.
(17) Freedom from being compelled to be a 160422 (2010)].
witness against one's self, or from
being forced to confess guilt, or from Art. 34, CC. When a member of a city or
being induced by a promise of immunity municipal police force refuses or fails to
or reward to make such confession, render aid or protection to any person in
except when the person confessing case of danger to life or property, such
becomes a State witness; peace officer shall be primarily liable for
(18) Freedom from excessive fines, or cruel damages, and the city or municipality shall
and unusual punishment, unless the be subsidiarily responsible therefor. The
same is imposed or inflicted in civil action herein recognized shall be
accordance with a statute which has not independent of any criminal proceedings,
been judicially declared and a preponderance of evidence shall
unconstitutional; and suffice to support such action.
(19) Freedom of access to the courts.
Art. 35, CC. When a person, claiming to be
In any of the cases referred to in this article, injured by a criminal offense, charges
whether or not the defendant's act or another with the same, for which no
omission constitutes a criminal offense, the independent civil action is granted in this
aggrieved party has a right to commence an Code or any special law, but the justice of
entirely separate and distinct civil action for the peace finds no reasonable grounds to
damages, and for other relief. Such civil believe that a crime has been committed, or
action shall proceed independently of any the prosecuting attorney refuses or fails to
criminal prosecution (if the latter be institute criminal proceedings, the complaint
instituted), and mat be proved by a may bring a civil action for damages against
preponderance of evidence. the alleged offender. Such civil action may
be supported by a preponderance of
Page 517 of 532

evidence. Upon the defendant's motion, the in the context of Art. 2220 of the CC,
court may require the plaintiff to file a bond includes gross negligence. Thus, we have held
to indemnify the defendant in case the in a number of cases that moral damages may
complaint should be found to be malicious. be awarded in culpa contractual or breach of
If during the pendency of the civil action, an contract when the defendant acted fraudulently
information should be presented by the or in bad faith, or is guilty of gross negligence
prosecuting attorney, the civil action shall be amounting to bad faith, or in wanton disregard
suspended until the termination of the of his contractual obligations [Bankard, Inc. v.
criminal proceedings. Feliciano, G.R. No 141761 (2006)].
Art. 2220, CC. Willful injury to property may ii. Who may Recover Moral Damages
be a legal ground for awarding moral
damages if the court should find that, under Relatives of Injured Persons
the circumstances, such damages are justly The omission of brothers and sisters of the
due. The same rule applies to breaches of deceased passenger in Art. 2206(3) reveals
contract where the defendant acted the legislative intent to exclude them from the
fraudulently or in bad faith. persons authorized to recover moral damages
for mental anguish by reason of the death of
In Willful Injury to Property the deceased (inclusion unius est exclusion
To sustain an award of damages, the damage alterius). The usage of the phrase analogous
inflicted upon [plaintiff’s] property must be cases in the provision means simply that the
malicious or willful, an element crucial to merit situation must be held similar to those
an award of moral damages under Art. 2220 of expressly enumerated in the law in question
the CC [Regala v. Carin, G.R. No. 188715 [Sulpicio Lines v. Curso, supra].
(2011)].
Art. 233 of the Family Code states that the
In Breach of Contract in Bad Faith person exercising substitute parental authority
To recover moral damages in an action for shall have the same authority over the child as
breach of contract, the breach must be the parents. Persons exercising substitute
palpably wanton, reckless, malicious, in bad parental authority are to be considered
faith, oppressive, or abusive. Bad faith imports ascendants for the purpose of awarding moral
a dishonest purpose and conscious doing of a damages. [Caravan Travel and Tours
wrong and the person claiming moral damages International, Inc. v. Abejar, G.R. No. 170631,
must prove bad faith by clear and convincing (2016)].
evidence because good faith is always
presumed. The Court held that there was no Juridical Persons
bad faith on the part of the petitioners. Hence, The award of moral damages cannot be
the award for moral damages was not proper granted in favor of a corporation because,
[Francisco v. Ferrer G.R. No. 130030, (1999)]. being an artificial person and having existence
It is not enough that one merely suffered only in legal contemplation, it has no feelings,
sleepless nights, mental anguish, and serious no emotions, no senses. It cannot, therefore,
anxiety as a result of the actuations of the other experience physical suffering and mental
party. The action must have been willfully done anguish, which can be experienced only by one
in bad faith or with ill motive [Spouses having a nervous system. The statement in
Valenzuela v. Spouses Mano, G.R. No. People vs. Manero and Mambulao Lumber Co.
172611, July 9, (2010)]. vs. PNB that a corporation may recover moral
damages if it "has a good reputation that is
A conscious or intentional design need not debased, resulting in social humiliation" is an
always be present to award moral damages obiter dictum [ABS-CBN v. CA, supra].
since negligence may occasionally be so gross
as to amount to malice or bad faith. Bad faith,
Page 518 of 532

Although the general rule is that a juridical plaintiff, which has been violated or invaded
person is not entitled to moral damages since by the defendant, may be vindicated or
it cannot experience the same suffering that a recognized, and not for the purpose of
natural person does, Art. 2219(7) expressly indemnifying the plaintiff for any loss
authorizes the recovery of moral damages in suffered by him.
cases of libel, slander, or any other form of
defamation. Art. 2219(7) does not qualify Art. 2222, CC. The court may award
whether the plaintiff is a natural or juridical nominal damages in every obligation arising
person. Therefore, a corporation can validly file from any source enumerated in article 1157,
a complaint for libel or any other form of or in every case where any property right
defamation and claim for moral damages has been invaded.
[Filipinas Broadcasting v. Ago, G.R. No.
141994, (2005)]. Art. 2223, CC. The adjudication of nominal
damages shall preclude further contest
Factors Considered in Determining Amount upon the right involved and all accessory
The amount of damages awarded in this questions, as between the parties to the
appeal has been determined by adequately suit, or their respective heirs and assigns.
considering the official, political, social, and
financial standing of the offended parties on 1. Violation of a right
one hand, and the business and financial
position of the offender on the other. The SC Nominal damages "are recoverable where a
further considered the present rate of legal right is technically violated and must be
exchange and the terms at which the amount vindicated against an invasion that has
of damages awarded would approximately be produced no actual present loss of any kind.”
in U.S. dollars, the defendant being an Its award is thus not for the purpose of
international airline [Lopez v. Pan American, indemnification for a loss but for the recognition
G.R. No. L-22415 (1966)]. and vindication of a right. When granted by the
courts, they are not treated as an equivalent of
Nominal Damages a wrong inflicted but simply a recognition of the
existence of a technical injury [Gonzales v.
Nominal damages consist of damages PCIB, G.R. No. 180257 (2011)].
awarded not for the purposes of indemnifying
the plaintiff for any loss suffered, but for the Nominal damages may also be awarded in
vindication or recognition of a right violated by cases where a property right has been
the defendant. Nominal damages are awarded invaded. [Twin Ace v. Rufina, G.R. No. 160191,
in every obligation arising from law, contracts, (2006)].
quasi-contracts, acts or omissions punished by
law, and quasi-delicts [PNOC v. CA, G.R. No. 2. No actual loss caused or proven
107518, (1998)].
When the plaintiff suffers injury not enough to
Requisites and characteristics warrant an award of actual damages, then
1. Invasion or violation of any legal or nominal damages may be given. [Twin Ace v.
property right. Rufina, supra].
2. No proof of loss is required.
3. The award is to vindicate the right violated. Nominal damages may also be awarded where
there has been a breach of contract and no
i. When Nominal Damages are substantial injury or actual damages
Recoverable whatsoever have been or can be shown
[Areola v. CA, G.R. No. 95641, (1994)].
Art. 2221, CC. Nominal damages are
adjudicated in order that a right of the
Page 519 of 532

The amount to be awarded shall be equal to or Special reasons extant in the case
at least commensurate to the injury sustained Since the assessment of damages are being
considering the concept and purpose of such left to the discretion of the court, the
damages. [Lufthansa v. CA as cited in PNOC circumstances of a particular case will
v. CA, supra]. determine whether the amount assessed as
nominal damage is within the scope or intent of
3. Under conditions of equity the law [Robes-Francisco v. CFI, G.R. No. L-
41093, (1978)].
The plaintiffs sought to recover damages from
the hotel due to its breach of contract as For instance, in the case of People v. Bernardo,
regards food service for the plaintiff’s guests. supra, given the relatively short duration of the
The SC did not award actual and moral child’s kidnapping, the court found the amount
damages because it found that the plaintiff’s of ₱50,000.00 awarded as nominal damages
failure to inform the hotel of the increase of excessive, so it was reduced to ₱10,000.00.
guests was the proximate cause of the
plaintiff’s injury. Nevertheless, the SC awarded Temperate Damages
nominal damages under considerations of
equity, for the discomfiture that the plaintiffs Art. 2224, CC. Temperate or moderate
were subjected to during the event, averring damages, which are more than nominal but
that the hotel could have managed the less than compensatory damages, may be
"situation" better, it being held in high esteem recovered when the court finds that some
in the hotel and service industry. [Spouses pecuniary loss has been suffered but its
Guanio v. Makati Shangri-la, G.R. No. 190601 amount cannot, from the nature of the case,
(2011)]. be provided with certainty.
Nature and determination of amount Art. 2225, CC. Temperate damages must
The assessment of nominal damages is left to be reasonable under the circumstances.
the discretion of the trial court according to the
circumstances of the case. These damages are awarded for pecuniary
loss, in an amount that, from the nature of the
Small but substantial case, cannot be proved with certainty.
Generally, nominal damages, by their nature,
are small sums fixed by the court without Temperate damages are more than nominal
regard to the extent of the harm done to the but less than compensatory damages. [Tan v.
injured party. However, it is generally held that OMC Carriers, 2011 supra].
nominal damages is a substantial claim, if
based upon the violation of a legal right; in such Temperate damages are incompatible with
a case, the law presumes damage although nominal damages hence, cannot be granted
actual or compensatory damages are not concurrently [Citytrust Bank v. IAC, G.R. No.
proven [Gonzales v. People, G.R. No. 159950 84281(1994)].
(2007)].
Requisites
Commensurate to the injury suffered 1. Actual existence of pecuniary loss;
Even if there was no documentary evidence to 2. The nature and circumstances of the loss
justify Maria’s claim for actual damages, she prevents proof of the exact amount;
was still awarded nominal damages to 3. They are more than nominal and less than
vindicate her right and its value was compensatory;
commensurate to the injury she suffered 4. Causal connection between the loss and
[Pedrosa v. CA, G.R. No. 118680, (2001)]. the defendant’s act or omission;
5. Amount must be reasonable.
Page 520 of 532

i. When Temperate Damages are actual and temperate damages as they cover
Recoverable two distinct phases [Ramos v. CA, G.R. No.
124354 (1999)].
1. Nature of the case prevents
determination of actual loss ii. Factors in determining amount
There are cases where from the nature of the In general

case, definite proof of pecuniary loss cannot be The court awarded temperate damages where
offered, although the court is convinced that from the nature of the case, definite proof of
there has been such loss. For instance, injury pecuniary loss cannot be adduced, although
to one's commercial credit or to the goodwill of the court is convinced that the plaintiff suffered
a business firm is often hard to show certainty some pecuniary loss. The court also increased
in terms of money. the award of temperate damages from
₱100,000 to ₱150,000, taking into account the
2. In addition to civil indemnity cost of rebuilding the damaged portions of the
perimeter fence [De Guzman v. Tumolva, G.R.
3. Cases where amount of loss is not No. 188072 (2011)].
proven
Receipts amounting to less than P25,000
Temperate damages are included in the If the actual damages, proven by receipts
context of compensatory damages. In cases during the trial, amount to less
where definite proof of pecuniary loss cannot than ₱25,000.00, the victim shall be entitled to
be offered, temperate damages can be granted temperate damages in the amount
if the court is convinced that there has been of ₱25,000.00, in lieu of actual damages. In
such loss. The court awarded temperate this case, the victim is entitled to the award of
damages in lieu of actual damages for loss of ₱25,000.00 as temperate damages
earning capacity where earning capacity is considering that the amount of actual damages
plainly established but no evidence was proven by receipts is only ₱3,858.50. Hence,
presented to support the allegation of the the actual damages shall be deleted.
injured party’s actual income [Pleno v. CA,
G.R. No. 56505 (1988)]. Conversely, if the amount of actual damages
proven exceeds ₱25,000, then temperate
The allowance of temperate damages when damages may no longer be awarded; actual
actual damages were not adequately proven is damages based on the receipts presented
ultimately a rule drawn from equity, the during trial should instead be granted. [People
principle affording relief to those definitely v. Lucero, G.R. No. 179044 (2010)].
injured who are unable to prove how definite
the injury is [Republic v. Tuvera, G.R. No. Where no receipts were provided
148246 (2007)]. When no documentary evidence of burial or
funeral expenses is presented in court, the
4. In addition to other actual damages amount of ₱50,000.00 as temperate damages
proven when there is a chronic and shall be awarded [People v. Jugueta, G.R. No.
continuing injury involved 202124, (2016)].
In cases where the resulting injury might be Liquidated Damages

continuing and possible future complications
directly arising from the injury, while certain to Art. 2226, CC. Liquidated damages are
occur are difficult to predict, temperate those agreed upon by the parties to a
damages can and should be awarded on top of contract, to be paid in case of breach
actual or compensatory damages; in such thereof.
cases, there is no incompatibility between
Page 521 of 532

Art. 2227, CC. Liquidated damages, In Titan v Unifield, G.R. No. 153874 (2007), the
whether intended as an indemnity or a Supreme Court found that the attorney’s fees
penalty, shall be equitably reduced if they stipulated were too high. Since Uni-Field was
are iniquitous or unconscionable. adequately protected by separate stipulations
on the balance, liquidated damages, and
Requisites and characteristics attorney’s fees in case of breach, the Court
1. Liquidated damages must be validly reduced the attorney’s fees to 25% of the
stipulated. principal amount instead of the whole claim. It
2. There is no need to prove the amount of also allowed the recovery of both liquidated
actual damages. damages and attorney’s fees even if both were
3. Breach of the principal contract must be in the nature of penalty clauses.
proved.
In Ligutan v. CA, G.R. No. 138677 (2002) the
Rules Governing Breach of Contract court reduced the penalty from 5% to 3% for
Art. 2228, CC. When the breach of the being unconscionable. The question of
contract committed by the defendant is not whether a penalty is reasonable or iniquitous
the one contemplated by the parties in can be partly subjective and partly objective. Its
agreeing upon the liquidated damages, the resolution would depend on such factors as,
law shall determine the measure of but not necessarily confined to, the type, extent
damages, and not the stipulation. and purpose of the penalty, the nature of the
obligation, the mode of breach and its
The stipulation on attorney’s fees contained in consequences, the supervening realities, the
the promissory note constitutes what is known standing and relationship of the parties, and
as a penalty clause. A penalty clause, the like, the application of which, by and large,
expressly recognized by law, is an accessory is addressed to the sound discretion of the
undertaking to assume greater liability on the court.
part of the obligor in case of breach of an
obligation. It functions to strengthen the A penalty may be deleted if there is substantial
coercive force of obligation and to provide, in performance or if the penalty has a fatal
effect, the liquidated damages resulting from infirmity [RCBC v. CA, G.R. No. 128833
such a breach. The obligor would then be (1998)].
bound to pay the stipulated indemnity without
the necessity of proof on the existence and on Exemplary or Corrective
the measure of damages caused by the breach Damages
[Suatengco v. Reyes, G.R. No. 162729
(2008)]. Art. 2229, CC. Exemplary or corrective
damages are imposed, by way of example
General Rule: The penalty shall substitute the or correction for the public good, in addition
indemnity for damages and the payment of the to the moral, temperate, liquidated or
interests in case of breach. compensatory damages.
Exceptions: General Principles

1. When there is a stipulation to the contrary. 1. Exemplary damages cannot be awarded
2. When the obligor is sued for refusal to pay alone: they must be awarded IN ADDITION
the agreed penalty. to moral, temperate, liquidated or
3. When the obligor is guilty of fraud. compensatory damages.
2. The purpose of the award is to deter the
The amount can be reduced if: defendant (and others in a similar
1. It is unconscionable as determined by the condition) from a repetition of the acts for
court; which exemplary damages were awarded;
2. There is partial or irregular performance.
Page 522 of 532

hence, they are not recoverable as a In criminal offenses

matter of right. Art. 2230, CC. In criminal offenses,
3. The defendant must be guilty of malice or exemplary damages as a part of the civil
negligence above the ordinary. liability may be imposed when the crime
4. Plaintiff is not required to prove the amount was committed with one or more
of exemplary damages. aggravating circumstances. Such damages
(a) But plaintiff must show that he is are separate and distinct from fines and
entitled to moral, temperate, or shall be paid to the offended party.
compensatory damage; that is,
substantial damages, not purely Award of exemplary damages is part of the civil
nominal ones. This requirement liability, not of the penalty. Damages are paid
applies even if the contract stipulates to the offended party separately from the fines.
liquidated damages [PNB v. CA, G.R.
No. 116181 (1996)]. Unlike the criminal liability which is basically a
(b) The amount of exemplary damage state concern, the award of damages is
need not be pleaded in the complaint primarily intended for the offended party who
because the same cannot be proved. It suffers thereby. It would make little sense for
is merely incidental or dependent upon an award of exemplary damages to be due the
what the court may award as private offended party when the aggravating
compensatory damages. circumstance is ordinary but to be withheld
when it is qualifying. Withal, the ordinary or
Under Art. 2234 of the CC, a showing that the qualifying nature of an aggravating
plaintiff is entitled to temperate damages circumstance is a distinction that should only
allows the award of exemplary damages be of consequence to the criminal, rather than
[Canada v. All Commodities Marketing (2008)]. to the civil, liability of the offender. In fine,
relative to the civil aspect of the case, an
Exemplary damages are imposed not to enrich aggravating circumstance, whether ordinary or
one party or impoverish another but to serve as qualifying, should entitle the offended party to
a deterrent against or as a negative incentive an award of exemplary damages within the
to curb socially deleterious actions. [PNB v. unbridled meaning of Art. 2230 [People v.
CA, supra]. Dadulla, G.R. No. 172321 (2011)].
i. When Exemplary Damages are In Rape Cases

Recoverable The retroactive application of these procedural
rules cannot adversely affect the rights of a
WHEN EXEMPLARY private offended party that have become
ARISING
DAMAGES ARE vested, where the offense was committed prior
FROM
GRANTED to the effectivity of said rules. Consequently,
The crime was aggravating circumstances which were not
Art. committed with an alleged in the information but proved during the
Crimes
2230 aggravating trial may be appreciated for the limited purpose
circumstance/s of determining appellant’s liability for
Art. Quasi- Defendant acted with exemplary damages. The presence of the
2231 delicts gross negligence qualifying circumstance of knowledge by the
Defendant acted in a offender of the offended party’s mental
Contracts
Art. wanton, fraudulent, disability, although not alleged in the
and Quasi- information, was proved during trial, which
2232 reckless, oppressive,
contracts
or malevolent manner justifies the award of exemplary damages
[People v. Diunsay-Jalandoni, G.R. No.
174277 (2007)].
Page 523 of 532

Being corrective in nature, exemplary The Court held that the airline’s disrespectful
damages, therefore, can be awarded, not only and unhelpful treatment of Andion amounted to
in the presence of an aggravating bad faith. Andion was awarded exemplary
circumstance, but also where the damages under Art. 2232 [Singapore Airlines
circumstances of the case show the highly v. Fernandez, G.R. No. 142305 (2003)].
reprehensible or outrageous conduct of the
offender. As in this case, where the offender Exemplary damages may be awarded to serve
sexually assaulted a pregnant married woman, as a deterrent to those who, like Arco, use
the offender has shown moral corruption, fraudulent means to evade their liabilities [Arco
perversity, and wickedness. He has grievously Pulp and Paper Co., Inc. v. Lim, G.R. No.
wronged the institution of marriage. The 206806 (2014)].
imposition then of exemplary damages by way
of example to deter others from committing ii. Requisites
similar acts or for correction for the public good
is warranted [People v. Alfredo, G.R. No. Art. 2233, CC. Exemplary damages cannot
188560 (2010)]. be recovered as a matter of right; the court
will decide whether or not they should be
In quasi-delicts adjudicated.
Art. 2231, CC. In quasi-delicts, exemplary
damages may be granted if the defendant Art. 2234, CC. While the amount of the
acted with gross negligence. exemplary damages need not be proved,
the plaintiff must show that he is entitled to
In Globe Mackay v. CA, G.R. No. 81262 (1989) moral, temperate or compensatory
the previous employer of the plaintiff, wrote a damages before the court may consider the
letter to the company where the plaintiff question of whether or not exemplary
subsequently applied for employment, stating damages should be awarded. In case
that the plaintiff was dismissed by the liquidated damages have been agreed
defendant from work due to dishonesty and upon, although no proof of loss is necessary
malversation of the defendant’s funds. in order that such liquidated damages may
Previous police investigations revealed that the be recovered, nevertheless, before the
defendant’s accusations against the plaintiff court may consider the question of granting
were unfounded, and they cleared the plaintiff exemplary in addition to the liquidated
of such ‘anomalies’. Here, the lower court damages, the plaintiff must show that he
awarded exemplary damages to the plaintiff, would be entitled to moral, temperate or
which the defendant questioned, averring that compensatory damages were it not for the
CC 2231 may be awarded only for grossly stipulation for liquidated damages.
negligent acts, not for willful or intentional acts.
The SC upheld the grant of exemplary Art. 2235, CC. A stipulation whereby
damages, stating that while CC 2231 provides exemplary damages are renounced in
that for quasi-delicts, exemplary damages may advance shall be null and void.
be granted if the defendant acted with gross
negligence, with more reason is its imposition Requirements for an award of exemplary
justified when the act performed is deliberate, damages [Francisco v. Ferrer, supra]:
malicious and tainted with bad faith. 1. They may be imposed by way of example
in addition to compensatory damages, and
In contracts and quasi-contracts only after the claimant's right to them has
Art. 2232, CC. In contracts and quasi- been established;
contracts, the court may award exemplary 2. They can not be recovered as a matter of
damages if the defendant acted in a wanton, right; their determination depends upon
fraudulent, reckless, oppressive, or the amount of compensatory damages that
malevolent manner. may be awarded to the claimant;
Page 524 of 532

3. The act must be accompanied by bad faith accomplice [People v. Halil Gambao, G.R. No.
or done in a wanton, fraudulent, 172707 (2013)].
oppressive or malevolent manner.
Miscellaneous Rules
3. When damages may be
i. Damages that cannot co-
recovered exist
When Allowed Nominal with other damages

The obligation to repair the damages exists Art. 2223, CC. The adjudication of nominal
whether done intentionally or negligently damages shall preclude further contest
and whether or not punishable by law upon the right involved and all accessory
[Occena v. Icamina, G.R. No. 82146 (1990)]. questions, as between the parties to the
suit, or their respective heirs and assigns.
The mere fact that the plaintiff suffered losses
does not give rise to a right to recover Nominal damages are incompatible with
damages. To warrant the recovery of temperate and exemplary damages.
damages, there must be both a right of action
for a legal wrong inflicted by the defendant, Nominal damages cannot co-exist with actual
and damage resulting to the plaintiff or compensatory damages [Armovit v. CA,
therefrom. Wrong without damage, or damage G.R. No. 88561 (1990)].
without wrong, does not constitute a cause of
action, since damages are merely part of the Actual and liquidated
remedy allowed for the injury caused by a
Art. 2226, CC. Liquidated damages are
breach or wrong [Custodio v. CA, supra]. those agreed upon by the parties to a
contract, to be paid in case of breach
Injury vs. Damage vs. Damages [from
thereof.
Custodio]
INJURY DAMAGE DAMAGES ii. Damages that must co-exist
The
The loss,
The illegal recompense or Exemplary with moral, temperate,
hurt, or harm,
invasion compensation liquidated or compensatory
which results
of a legal awarded for There was no legal basis for the award of
from the
right the damage exemplary damages since the private
injury
suffered respondent was not entitled to moral,
temperate, or compensatory damages and
Elements for recovery of damages there was no agreement on stipulated
1. Right of action damages [Scott Consultants & Resource
2. For a wrong inflicted by the defendant Development Corp. v. CA, G.R. No. 112916
3. Damage resulting to the plaintiff (1995)].
Apportionment of Damages iii. Damages that must stand
The entire amount of the civil liabilities should alone
be apportioned among all those who
cooperated in the commission of the crime Nominal damages
according to the degrees of their liability, Art. 2223, CC. The adjudication of nominal
respective responsibilities and actual damages shall preclude further contest
participation. Hence, each principal accused- upon the right involved and all accessory
appellant should shoulder a greater share in questions, as between the parties to the
the total amount of indemnity and damages suit, or their respective heirs and assigns.
than someone who was adjudged as only an
Page 525 of 532

deceased had no earning capacity at said

B. DAMAGES IN CASE OF time on account of permanent disability not
DEATH caused by the accused. If the deceased
was obliged to give support, under Art. 291,
CC, the recipient who is not an heir, may
1. Death by Crime or Quasi-Delict
demand support from the accused for not
more than five years, the exact duration to
Art. 2206, CC. The amount of damages for be fixed by the court;
death caused by a crime or quasi-delict
b. Moral damages for mental anguish, — an
shall be at least three thousand pesos, even
amount to be fixed by the court. This may
though there may have been mitigating
be recovered even by the illegitimate
circumstances. In addition:
descendants and ascendants of the
1. The defendant shall be liable for the
deceased;
loss of the earning capacity of the
c. Exemplary damages, when the crime is
deceased, and the indemnity shall be
attended by one or more aggravating
paid to the heirs of the latter; such
circumstances, — an amount to be fixed in
indemnity shall in every case be
the discretion of the court, the same to be
assessed and awarded by the court,
considered separate from fines.
unless the deceased on account of
d. Attorney's fees and expenses of litigation,
permanent physical disability not
— the actual amount thereof, (but only
caused by the defendant, had no
when a separate civil action to recover civil
earning capacity at the time of his
liability has been filed or when exemplary
death;
damages are awarded);
2. If the deceased was obliged to give
e. Interests in the proper cases.
support according to the provisions of
[Heirs of Raymundo Castro v. Bustos, G.R. No.
Article 291, the recipient who is not an
L-25913 (1969)].
heir called to the decedent's inheritance
by the law of testate or intestate
succession, may demand support from
2. Civil or Death indemnity
the person causing the death, for a
Mere commission of the crime shall entitle the
period not exceeding five years, the
heirs of the deceased to such damages.
exact duration to be fixed by the court;
3. The spouse, legitimate and illegitimate
In Rape Cases
descendants and ascendants of the
deceased may demand moral damages Civil indemnity, in the nature of actual and
for mental anguish by reason of the compensatory damages, is mandatory upon
the finding of the fact of rape. [People v.
death of the deceased.
Astrologo, G.R. No. 169873 (2007)].
In death caused by breach of conduct by a
The Court explained that the principal
common crime
consideration for the award of damages is not
When death occurs as a result of a crime, the
the public penalty imposed upon the offender,
heirs of the deceased are entitled to the
but based on the heinousness of the offense
following items of damages:
of a crime against chastity [People vs. Apattad,
a. Indemnity for the loss of earning capacity
G.R. No. 193188 (2011)].
of the deceased — an amount to be fixed
by the Court according to the
Even though the qualifying circumstance of
circumstances of the deceased related to
minority was not alleged in the information for
his actual income at the time of death and
rape, the court may still award civil indemnity.
his probable life expectancy, the said
The Court held that the designation of the
indemnity to be assessed and awarded by
offense only affects criminal liability, and not
the court as a matter of duty, unless the
civil liability because civil liability is for the
Page 526 of 532

benefit of the injured party. [People v. not be charged with these expenses. [Lasam v.
Bartolini, G.R. No. 179498 (2010)]. Smith, G.R. No. L-19495 (1924)]
Principle: A party cannot recover damages

C. GRADUATION OF flowing from consequences which the party
DAMAGES could have reasonably avoided.
1. Duty of Injured Party 2. Rules
Art. 2203, CC. The party suffering loss or In Crimes

injury must exercise the diligence of a good
father of a family to minimize the damages Art. 2204, CC. In crimes, the damages to be
resulting from the act or omission in adjudicated may be respectively increased
question. or lessened according to the aggravating or
mitigating circumstances.
This clearly obligates the injured party to
undertake measures that will alleviate and not Generally, in criminal cases, there are three
aggravate his condition after the infliction of the kinds of damages awarded by the Court,
injury, and places upon him the burden of namely: civil indemnity, moral, and exemplary
explaining why he could not do so [Chua v. damages. Actual damages or temperate
Colorite Marketing Corporation, G.R. No. damages may be awarded in some instances.
193969-193970 (2017)]. These are the damages that are usually
increased or decreased by the court depending
The plaintiffs maintain that the evidence clearly on the attendant circumstances according to
establishes that they are entitled to damages in [People v. Jugueta, supra.].
the sum of P7,832.80 instead of P1,254.10 as
found by the trial court. There can be no doubt 1. Civil Indemnity
that the expenses incurred by the plaintiffs as
a result of the accident greatly exceeded the It is the indemnity authorized in criminal law for
amount of the damages awarded. But bearing the offended party, in the amount authorized by
in mind that in determining the extent of the the prevailing judicial policy and is set apart
liability for losses or damages resulting from from other proven actual damages.
negligence in the fulfillment of a contractual This award stems from Art. 100 of the RPC
obligation, the courts have "a discretionary which states that "Every person criminally
power to moderate the liability according to the liable for a felony is also civilly liable.”
circumstances", we do not think that the It is technically, not a penalty or a fine; hence,
evidence is such as to justify us in interfering it can be increased by the Court when
with the discretion of the court below in this appropriate.
respect. As pointed out by that court in its well-
reasoned and well-considered decision, by far 2. Moral Damages
the greater part of the damages claimed by the
plaintiffs resulted from the fracture of a bone in
Compensatory damages awarded for mental
the left wrist of Joaquina Sanchez and from her pain and suffering or mental anguish resulting
objections to having a decaying splinter of the
from a wrong.
bone removed by a surgical operation. As a
consequence of her refusal to submit such an
They may also be considered and allowed "for
operation, a series of infections ensued and resulting pain and suffering, and for
which required constant and expensive
humiliation, indignity, and vexation suffered by
medical treatment for several years. We agree the plaintiff as result of his or her assailant's
with the court below that the defendant should
conduct, as well as the factors of provocation,
Page 527 of 532

the reasonableness of the force used, the

attendant humiliating circumstances, the sex of It is based on the theory that there should be
the victim, [and] mental distress.” compensation for the pain caused by the highly
reprehensible conduct of the defendant
The rationale for awarding moral damages has associated with such circumstances as
been explained in Lambert v. Heirs of Rey willfulness, wantonness, malice, gross
Castillon: "[T]he award of moral damages is negligence or recklessness, oppression, insult
aimed at a restoration, within the limits or fraud or gross fraud that intensifies the
possible, of the spiritual status quo ante; and injury.
therefore, it must be proportionate to the
suffering inflicted." Even without any aggravating circumstances,
can be awarded where the circumstances of
Art. 2220 does not fix the amount of damages the case show the highly reprehensible or
that can be awarded. It is discretionary upon outrageous conduct of the offender.
the court, depending on the mental anguish or
the suffering of the private offended party so 4. Temperate Damages
long as it does not exceed the award of civil
indemnity. Under Art. 2224 of the Civil Code, temperate
damages may be recovered, as it cannot be
3. Exemplary damages denied that the heirs of the victims suffered
pecuniary loss although the exact amount was
Also known as "punitive" or "vindictive" not proved.
damages, exemplary or corrective damages
are intended to serve as a deterrent to serious When no documentary evidence of burial or
wrong doings, and as a vindication of undue funeral expenses is presented in court, the
sufferings and wanton invasion of the rights of amount of ₱50,000.00 as temperate damages
an injured or a punishment for those guilty of shall be awarded
outrageous conduct.
Amount of Civil Indemnity, Moral Damages, and Exemplary Damages to be paid for the
commission of certain crimes based on People v. Jugueta (2019):
(e.g. Civil indemnity= 100,000; Moral damages=100,000; Exemplary Damages=100,000)
Crime Degree of Consummation of Crime
Consummat Frustrated Attempted
ed
I. For those crimes like Murder, Parricide, Serious Intentional Mutilation, Infanticide, and other
crimes involving death of a victim where the penalty consists of indivisible penalties:
1. Where the penalty imposed is death but was ₱100,000.00 ₱75,000.00 ₱50,000.00
reduced to reclusion perpetua because of RA
9346
2. Where the penalty imposed is reclusion ₱75,000.00 ₱50,000.00 ₱25,000.00
perpetua, other than the above-mentioned:
II. For Simple Rape/Qualified Rape:
1. Where the penalty imposed is Death but was ₱100,000.00 ----------------- ₱50,000.00
9346
2. Where the penalty imposed is reclusion ₱75,000.00 ----------------- ₱25,000.00
perpetua, other than the above-mentioned:
III. For Complex crimes under Art. 48 of the Revised Penal Code where death, injuries, or sexual
abuse results, the civil indemnity, moral damages and exemplary damages will depend on the
Page 528 of 532

penalty, extent of violence and sexual abuse; and the number of victims where the penalty consists
of indivisible penalties:*
1. Where the penalty imposed is Death but was ₱100,000.00 ----------------- -----------------
9346
2. Where the penalty imposed is reclusion ₱75,000.00 ----------------- -----------------
perpetua, other than the above-mentioned
*The above Rules apply to every victim who dies as a result of the crime committed. In other complex
crimes where death does not result, like in Forcible Abduction with Rape, the civil indemnity, moral
and exemplary damages depend on the prescribed penalty and the penalty imposed, as the case
may be.
IV. For Special Complex Crimes like Robbery with Homicide Robbery with Rape, Robbery with
@Intentional Mutilation, Robbery with Arson, Rape with Homicide, Kidnapping with Murder,
Carnapping with Homicide or Carnapping with Rape, Highway Robbery with Homicide, Qualified
Piracy, Arson with Homicide, Hazing with Death, Rape, Sodomy or Mutilation and other crimes with
death, injuries, and sexual abuse as the composite crimes, where the penalty consists of indivisible
penalties**
1.1 Where the penalty imposed is Death but was ₱100,000.00 ----------------- -----------------
9346
● In Robbery with Intentional Mutilation if the ₱100,000.00 ----------------- -----------------
penalty imposed is Death but was reduced to
reclusion perpetua although death did not
occur
1.2 For the victims who suffered mortal/fatal ₱75,000.00 ----------------- -----------------
wounds and could have died if not for a timely
medical intervention
1.3 For the victims who suffered non-mortal/non- ₱50,000.00 ----------------- -----------------
fatal injuries
2.1 Where the penalty imposed is reclusion ₱75,000.00 ----------------- -----------------
perpetua, other than the above-mentioned
● In Robbery with Intentional Mutilation, if the ₱75,000.00 ----------------- -----------------
penalty imposed is reclusion perpetua.
wounds and could have died if not for a timely
medical intervention
fatal injuries:
**1. In Robbery with Physical Injuries, the amount of damages shall likewise be dependent on the
nature/severity of the wounds sustained, whether fatal or non-fatal.
2. The above rules do not apply if in the crime of Robbery with Homicide, the robber/s or
perpetrator/s are themselves killed or injured in the incident.
3. Where the component crime is rape, the above rules shall likewise apply, and that for every
additional rape committed, whether against the same victim or other victims, the victims shall be
entitled to the same damages unless the other crimes of rape are treated as separate crimes, in
which case, the damages awarded to simple rape/qualified rape shall apply.
V. In other crimes that result in the death of a victim and the penalty consists of divisible penalties
Page 529 of 532

1. Homicide, Infanticide to conceal the dishonor ₱50,000.00 ₱30,000.00 ₱20,000.00

of the offender, Duel, Intentional Abortion and
Unintentional Abortion, etc.
Note: The amount indicated here is for the
payment of civil indemnity and moral damages
only. No exemplary damages are awarded in
these cases.
2. Crimes where there are no stages such as ₱50,000.00 ----------------- -----------------
Reckless Imprudence and Death under
tumultuous affray
3. If an aggravating circumstance was proven ₱50,000.00 ₱30,000.00 ₱20,000.00
during the trial, even if not alleged in the
Information, exemplary damages are to be
awarded in the following manner, in addition to
civil indemnity and moral damages in V.1.:
VI. A. In the crime of Rebellion
1. Where the imposable penalty is reclusion ₱100,000.00 ----------------- -----------------
perpetua and death occurs in the course of
the rebellion, the amount the heirs of those
who died are entitled
wounds in the course of the rebellion and could
have died if not for a timely medical intervention
fatal injuries
VII. In all of the above instances, when no documentary evidence of burial or funeral expenses is
presented in court, the amount of ₱50,000.00 as temperate damages shall be awarded.
In Quasi-delicts event should pay for the injury less a sum

deemed a suitable equivalent for his own
Art. 2214, CC. In quasi-delicts, the imprudence. [Rakes v. Atlantic, G.R. No. L-
contributory negligence of the plaintiff shall 1719 (1907)].
reduce the damages that he may recover.
In determining whether the passenger is guilty
Contributory negligence of contributory negligence, the age, sex, and
The alleged contributory negligence of the his or her physical condition should be
victim, if any, does not exonerate the accused considered [Cangco v. Manila Railroad Co.,
in criminal cases committed through reckless supra].
imprudence, since one cannot allege the
negligence of another to evade the effects of Plaintiff’s negligence
his own negligence [Genobiagon v. CA, supra]. Even if Manila Electric is negligent, its
negligence must be proven to be the proximate
If the act of the injured contributed to the and direct cause of the accident [Manila
principal occurrence of the event causing the Electric v. Remonquillo, supra].
injury, he cannot recover. However, where in
conjunction of the occurrence, he contributes If both the parties contributed to the proximate
only to his own injury, he may recover the cause, they cannot recover from one another
amount that the defendant responsible for the [Bernardo v. Legaspi, supra].
Page 530 of 532

2. Defendant has done his best to lessen the

Grounds for mitigation of damages for plaintiff’s injury or loss.
quasi-delicts:
1. That the loss would have resulted in any The SC deemed CC 2215(2) inapplicable
event because of the negligence or where the harm done to private respondents
omission of another, and where such outweighs any benefits the plaintiffs may have
negligence or omission is the immediate derived from being transported to Tacloban
and proximate cause of the damage or instead of being taken to Catbalogan, their
injury; destination and the vessel's first port of call,
2. Defendant has done his best to lessen the pursuant to its normal schedule [Sweet Lines v.
plaintiff’s injury or loss. CA, G.R. No. L-46340(1983)].
In Contracts and Quasi- Rule when contracting parties are in pari

contracts delicto
Generally, parties to a void agreement cannot
Art. 2215, CC. In contracts, quasi-contracts, expect the aid of the law; the courts leave them
and quasi-delicts, the court may equitably as they are, because they are deemed in pari
mitigate the damages under circumstances delicto or "in equal fault." In pari delicto is "a
other than the case referred to in the universal doctrine which holds that no action
preceding article, as in the following arises, in equity or at law, from an illegal
instances: contract; no suit can be maintained for its
1. That the plaintiff himself has specific performance, or to recover the
contravened the terms of the contract; property agreed to be sold or delivered, or the
2. That the plaintiff has derived some money agreed to be paid, or damages for its
benefit as a result of the contract; violation; and where the parties are in pari
3. In cases where exemplary damages are delicto, no affirmative relief of any kind will be
to be awarded, that the defendant acted given to one against the other."
upon the advice of counsel;
4. That the loss would have resulted in any This rule, however, is subject to exceptions that
event; permit the return of that which may have been
5. That since the filing of the action, the given under a void contract to:
defendant has done his best to lessen 1. the innocent party [Arts. 1411-1412, CC];
the plaintiff's loss or injury. 2. the debtor who pays usurious interest [Art.
1413, CC];
1. Grounds for mitigation of damages 3. the party repudiating the void contract
before the illegal purpose is accomplished
For contracts: or before damage is caused to a third
1. Violation of terms of the contract by the person and if public interest is subserved
plaintiff himself; by allowing recovery [Art. 1414, CC];
2. Obtention or enjoyment of benefits under 4. the incapacitated party if the interest of
the contract by the plaintiff himself; justice so demands [Art. 1415, CC];
3. Defendant acted upon advice of counsel in 5. the party for whose protection the
cases where exemplary damages are to be prohibition by law is intended if the
awarded such as under Arts. 2230, 2231, agreement is not illegal per se but merely
and 2232; prohibited, and if public policy would be
4. Defendant has done his best to lessen the enhanced by permitting recovery [Art.
plaintiff’s injury or loss. 1416, CC]; and
6. the party for whose benefit the law has
For quasi-contracts: been intended such as in price ceiling laws
1. In cases where exemplary damages are to [Art. 1417, CC] and labor laws [Arts. 1418-
be awarded such as in Art. 2232; 1419, CC].
Page 531 of 532

General and Construction Services, G.R. No.

Art. 1192 provides that in case both parties 188027 (2017)]
have committed a breach of the obligation, the
liability of the first infractor shall be equitably Compromise
tempered by the courts. Art. 2215(1), on the
other hand, warrants equitable mitigation of Art. 2031, CC. The courts may mitigate the
damages in case the plaintiff himself has damages to be paid by the losing party who
contravened the terms of the contract. The has shown a sincere desire for a
plaintiff referred to in Art 2215(1) should be compromise.
deemed to be the 2nd infractor, while the one
whose liability for damages may be mitigated is
the 1st infractor. In this case, Ong was the 1st
infractor while Bogñalbal is the 2nd infractor.
Hence, Ong should first pay the value of the
accomplished work before the damage
scheme under Art 1192 is applied [Ong v.
Bogñabal, G.R. No. 149140, (2006)].
Liquidated Damages
Art. 2227, CC. Liquidated damages,

whether intended as an indemnity or a
penalty, shall be equitably reduced if they
are iniquitous or unconscionable.
Pursuant to settled jurisprudence and Article

1229, in relation to Article 2227, of the New Civil
Code, the Court deems it proper to reduce the
penalty involved.
The respondents are obligated under the

Agreement to complete the waterproofing
works on April 6, 1997, but failed. The
remaining work to be done had to be performed
by Esicor, who accomplished the same on April
5, 1998. In light of these, the respondents are
then liable for delay for a period of 365 days,
which corresponds to the amount of Php
3,650,000.00 as penalty under the Agreement.
Without doubt, taking into consideration that
the respondents have completed 90% of the
project and the absence of any showing of bad
faith on their part, as well as the fact that the
waterproofing works have already been
completed at the respondents' expense, the
amount of Php 3,650,000.00 as penalty is
exorbitant under the premises. Therefore, the
Court reduces the same and imposes the
amount of Php 200,000.00 as liquidated
damages, by way of penalty. [Swire Realty
Development Corp v. Specialty Contracts
Page 532 of 532

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U.P.

LAW BOC CIVIL LAW

H. PATERNITY AND FILIATION ..................... 88

4. Alternative or facultative ....................... 268 3.Simple Loan (mutuum) ........................ 396

5. Acts Contrary to Morals........................ 455 H. SPECIAL LIABILITY IN PARTICULAR ACTIVITIES . 487

A. WHEN LAW TAKES B. RETROACTIVITY OF

Art. 6, CC. Rights may be waived, unless the

Waiver When the courts declare a law to be

“Comity,” in the legal sense, is neither a matter State may

2. Jurisdiction and Choice of ii. Types of Judicial Jurisdiction

DIRECT VS. INDIRECT JURISDICTION ● When the foreign law is CONTRARY to an

The Problem of Characterization

CHARACTERIZATION the matter to the law of either the forum

DÉPEÇAGE with the law of evidence of the state where it is

recognized by the DECS, assault, or assassination for the success

country upon attaining 21 years of age or Examples

Domicile is defined by municipal law (Philippine

Under municipal law Kinds of Domicile

d. It establishes a connection between a In the absence of concurrence of all these, the

Embraces such matters as: for a number of years (followed by the

Beginning and End of Personality Capacity

All States recognize as valid marriages Consular marriages

FORMAL AND INTRINSIC REQUIREMENTS Exceptions

Effects of Marriage Divorce may be either:

Property Relations of Spouses Divorce Decrees Obtained by Filipinos

Principle of Immutability Governing Law

substantial role in annulment and declaration of Bases of Adoption Jurisdiction

Note: In the Philippines, it is determined by the b. Movables:

v. Adoption Law of the state having the most real

provision expressly provides that, “real and 5. Situs of Certain Properties

2. Capacity to Transfer or Acquire Situs of Money

a. The transaction does not affect transfer c. CHOICE OF LAW IN

the solemnities established by Philippine laws Contracts with Arbitration Clause

Includes issues of substance such as order of GR: Lex Loci

When done in the Philippines Generally, lex rei sitae

Capacity to Personal law

merely examples of acts violative of a person’s 1. Family Relations

This applies only to acts of nonfeasance or the

(5) Freedom of suffrage; (18) Freedom from excessive fines, or cruel

Separate and distinct civil action; quantum 5. Civil Action

The underlying purpose for this independent

Art. 33, CC. In cases of defamation, fraud,

Art. 36, CC. Pre-judicial questions which

A pre-judicial question is one raised in a

Exemptions to the Territoriality Principle

Capacity and incapacity depends on the law,

Persons Juridical Capacity Capacity to Act

Personality Passive Active

Inherent in natural Must be acquired

useless and ineffective. [Quimiging v. Icao,

Effects on Contracts Effects on Marriage

d. Prodigality f. Family Relations

Incompetent includes prodigals [Sec. 2, Rule Effect on Crimes

g. Alienage absentee still lives, he shall be presumed

Domicile of Juridical Persons B. RIGHTS AND OBLIGATIONS OF

Domicile v. Residence 1. Obligation not to commit acts

A married woman does not lose her domicile to

which means they may be Prohibited a. Causing physical harm to the

purpose of controlling her 2. Right to be protected against

contacting or otherwise communicating in j. Directing the DSWD or any appropriate